Money Musings 💭 the shop local movement
Over the last year and a half, many of us have seen the impact of COVID and the pandemic in our local communities. Some of my favorite restaurants and stores closed their doors (probably not to return) and other local businesses really struggled and are still figuring out how to get by.
When I interviewed Georgia Lee Hussey, the founder of Modernist Financial, a progressive financial planning firm (and another interview I cannot wait to tell you more about), she talked about the power and success of the shop local movement.
When we spend $100 at a local business, $68 of that stays in our local communities.
That might mean that the store is using those funds to pay someone who lives locally, the taxes fund the community, their supplies or service providers are local, and perhaps they make local donations.
Plus it’s better for the environment. On the other hand, when we shop with a chain, $43 of that $100 stays in our local community.
Georgia recommends making changes starting with the thing you do most, like grabbing a cup of coffee or grocery shopping. Switch that expense to a local business. She loves building relationships with the local business she shops with.
She says “I want to support the local small provider and have a personal relationship. Start going to the local coffee shop en route, and when you go, be friendly and say hey. If you’ve ever worked retail, you know that a friendly customer and a genuine thank can have a big impact on your day.”
After our interview I was inspired to shop locally. I wanted to get a gift for a friend’s new baby so I walked to a local shop. On the way I picked up a few pastries from a local bakery for breakfast. I made sure to take Georgia’s advice and strike up a conversation.
What are your favorite things to buy locally? If you aren’t yet, what will be the first thing you try?
P.S. I'm on Zillow's new show, Ask Zillow Anything, and my episode is airing today at 2 pm EST! 🥳 This show is specifically about what you need to know about finances as a first-time homebuyer. I'll be live answering questions during the episode. Here's the link!
MONEY MOVE OF THE WEEK
PRACTICE INDULGING (GUILT-FREE).
Something I’ve noticed in my own life and through my coaching work is that many people find it difficult to indulge. Money and the baggage that comes with it can take this difficulty to a whole new level. Homework I’ve given myself and my clients is to practice indulging. Fun, right?
Indulge first in something that costs no money and then work up to indulging on something that costs money. For some (myself included) it’s really hard! What’s something completely non-productive and just for you that you can indulge in this week? When it’s time to indulge, really relish in it without feeling guilty. Try not to be on your phone (unless that’s part of the experience) and really soak it all up.
Next week, you can add a price tag to the indulgence. If this is a challenge or doesn’t fit with your spending plan, start with a small price tag. Excited to hear how this goes!
YOU GOTTA SEE THIS
DEFINE: DIVIDEND.
When we own stock (or company shares) through funds or individual stocks we make money two different ways. The first is by selling our shares for a higher price than we bought them for. **Remember, until we’ve sold, we haven’t lost or earned money.
The other way we earn money is through dividends. Dividends are an amount of money companies pay or share with investors. Some companies pay dividends on a quarterly basis and it’s usually given an amount per share (usually a number of cents).
People who are looking to earn income from their investments (like in retirement), love stocks that pay dividends because they earn cash without selling their investments.
Dividends we earn are treated as income for tax purposes unless they are in a tax-advantaged account like a 401(k) or IRA.
Use it in a sentence: I reinvest my dividends (which is an option you can check in your brokerage accounts) so I can keep my investments growing even more for the long-term. 🌱