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In this week’s Ten Money Questions, we speak with Morra Aarons-Mele, who serves as BlogHer’s Political Director in addition to covering politics as a Contributing Editor. She’s also a grad student, political consultant and frequent media commentator. I’ve caught her more than a few times on CNN. She gives her financial take below on school, mortgages, politics and her whopping wedding bill. Enjoy!
1. What kind of return do you hope to gain on your grad school investment?
Well, I did a career change, and I needed a credential to help me along, so my grad school is more of a credential than an ROI. My big return is that I hope to complete my doctorate, which will allow me to work clinically in the field of adult development, do research, to teach, to write and to consult and carry the kind of capital-C credential I'll need to do my work. I won't know the real return for a long time, but in terms of return on investment, it has already helped. It's a wonderful door-opener.
2. What is your most significant memory about money?
Yikes! My parents fighting about it. Divorced parents, money as a weapon/bargaining tool.
3. What is your worst habit around finances?
I have compulsive "bag-lady" syndrome, where I think I'm going to be broke and on the street, and then I'll go buy a new handbag. Money is not always rational for me. I fear being broke, but at the same time, I am terrible at living on a budget. But the older I get and the more I see how my money can work for me, I become more rational.
4. Is there a price to pay for participating in the political process?
To start out in politics, sadly, you can't really earn much money. This favors the very young and the wealthy. Luckily, once you get your start it pays ok, but it's quite unfair because the kids who work on campaigns are either there because they are really, truly ok with earning no money for a while and sleeping on people's couches, or, their parents supplement them. Honestly, I think the most fun way to participate in politics is to be a blogger, or to be a rich donor. Or, to be a highly paid consultant like the people you see on TV- that's an exhilarating career I bet. But tough, because you need to budget for the off season.
5. What’s this business with having 2 mortgages?
I have 2 mortgages because we have two properties! My old single girl condo, which we rent out, and our house. We have long term fixed rate mortgages on both, luckily, at good rates.
6. Did your parents ever disagree about money? Are there any similarities with how you and your husband handle and negotiate finances?
My parents only ever disagreed about money! Still do. It's almost become a joke in our family. My husband is really wonderful about money: it's money to him, not emotions or a bargaining tool. He knows my craziness and bag lady fears and so mostly, he handles the mechanics of big financial decisions. We discuss them together and run the numbers, and I still know what's going on, but the truth is he is more rational and better at it than me. On the other hand, I can be more prudent than he. We're still figuring it out. We have two rules I like: no one can spend over $200 without asking the other (I read that somewhere) and we try to have a "money discussion" time at least once a month. We have a detailed budget that we reconcile and compare actuals and all that. We also have a great joint checking system, and our own accounts.
7. What are your views on student loans?
Well, they are usually necessary. To me, it's preferable to have student debt at 6.8% than credit card debt at 14%, or home equity debt at 8.75! Our education system is insane- who can afford $50k a year? I am so glad Harvard took the step of subsidizing more students' tuition at a higher parental income bracket, but grad school is a bear. I have loans, but I have two rules for myself, since my grad school was not necessary for my career. I don't have commercial loans: I only took out Federally Subsidized loans, and aim to get as much money from non-interest bearing loans like the Perkins as possible; on the ones that gather interest while you're in school (like Stafford loan),
