Last April, Robie Lynn Morrison blew out the candles on her 50th birthday and decided to pursue her dream of opening a boutique focused on women and the home.
By November, she had opened Burlap and Daisies, a budding home décor and gift shop in Manassas.
“Everything goes back to women and being supportive of them because if they’re not healthy, the family then falls apart,” she says. “Everybody’s home should be a soft place to land.”
Building and Keeping Relationships
Her store at 13480 Dumfries Road is located in the Woodbine Shopping Center, right next to a Food Lion. Morrison says she wanted to occupy the vacant spot because she’s been shopping in that mall for 30 years.
“I had my 7th grade teacher walk through the door one day,” she says. “That’s what it’s about. It’s the connections, it’s the relationships because we have gotten away from that.”
Those relationships extend to strangers who become customers, sometimes even friends, she says.
Morrison started work in the real estate industry when she was 19 years old as a new home specialist.
“Even though every house is the same in a community, it’s always so neat to see people make it their own and create the memories,” Morrison says. “I’ve always loved seeing dirt become a house and so all of that spills into here, and this is why I wanted to do this, this is literally my dream.”
It was a career that Morrison says she loved. In fact, she says one of her biggest obstacles in starting her business was telling her former boss, whom she’s known since she was a teenager, that she was quitting and leaving her job and stable income in the dust.
Opening a Business During the Pandemic
“Everything that we have, we’ve poured into this purely on faith,” she says, adding that her husband has had her back in the business venture.
Several of her family members been a source of support, too.
“Our house became a warehouse for quite a while as I was starting to purchase,” she says.
Morrison’s parents helped prepare the store for opening by doing tasks such as painting. Her daughter also helps out with customers in the store, with her baby on her hip, and she runs errands.
Starting Burlap and Daisies while emerging from a global pandemic and while entering a recession wasn’t easy; offers from the bank vanished as the economic outlook worsened last spring.
“It’s one of those [things where] you’ve got to put your blinders on and go with the heart,” she says. “I thought if I have wanted this for this long, God is going to see a way.”
Coming out of pandemic isolation, she says she particularly wants to cater to mothers and other women who are trying to break away from the craziness of life for a few minutes. Those customers often turn into friends who offer hugs and words of support.
“They feel at peace here, they feel inspired, and that really is my whole goal, just for them to want to linger and feel that they can because it’s a safe space,” she says. “The whole pandemic, we would walk into places and you felt like you were rushed out.”
What’s to Come
Burlap and Daisies continues to develop. In addition to its home décor merchandise, it has added offerings such as weekly drops of fresh cut flowers on Fridays.
The store recently began hosting Sip, Shop and Craft classes, led by Carolyn English, who taught in Prince William County Public Schools for 31 years.
“A lot of friendships are being formed from this store,” Morrison says. “My mom refers to it like … [a] hardware store where all of the guys would get together, and that’s kind of how it feels in here.”
Next up, Morrison is planning to offer at-home design consultations.
“Let people shop in their own home,” Morrison says. “A lot of times, people already have what they need, they just need a fresh eye.”
Feature image by Jessica Kronzer
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Did you know that the average American has a nearly 70% chance of needing some form of long-term care upon reaching age 65? But did you also know that you may be able to prepare for the event by purchasing long-term care insurance? That’s why we’ve prepared this guide of the 7 best long-term care insurance of 2023.
Before getting into our reviews of the seven best long-term care insurance providers of 2023, scan the table below to see which company you think will work best for you:
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Our Picks for Best Long-Term Care Insurance
Dozens of insurance companies offer long-term care insurance, but below is our list of the top seven, and what each is best for:
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Best Long-Term Care Insurance – Company Reviews
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Maximum Benefits: Varies by provider
Benefit Period: Varies by provider
Waiting/Elimination Period: Varies by provider
GoldenCare, also known as National Independent Brokers, Inc, is a privately held long-term care insurance brokerage firm, and one of the leading such firms in the industry. They provide policies from the top-rated insurance companies in the industry. The company is based in Plymouth, Minnesota, and has been in business since 1976. Their plans are available in all 50 states.
The list of companies they work with includes the following:
GoldenCare also offers critical illness insurance, Medicare supplements and Medicare Advantage plans, prescription drug plans, life insurance, annuities and final expense policies.
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Maximum Benefits: Varies by provider
Benefit Period: Varies by provider
Waiting/Elimination Period: Varies by provider
Like GoldenCare, LTC Resource Centers is also an insurance brokerage specializing in long-term care insurance. Based in Cape Coral, Florida, the company has been in business for more than 40 years. They provide long-term care insurance, short-term care, linked or combination products, Medicare supplements, life insurance, critical illness, and annuities.
A specialization they offer is what is known as asset-based long-term care. It’s a strategy that uses a whole life insurance policy or annuity to provide long-term care coverage, which eliminates the need for an expensive, dedicated LTC policy. A pricing comparison is presented in the screenshot below:
As a broker, they work with multiple long-term care insurance providers. That means to get detailed information you’ll need to set an appointment with a long-term care insurance specialist and make the request. The company’s licensed to operate in all 50 states.
Maximum Benefits: Up to $400 per day or $10,000 per month
Benefit Period: Up to 5 years, or unlimited lifetime benefit
Waiting/Elimination Period: 0, 30, 60, 90, 180 or 365 days
Mutual of Omaha is one of the top individual providers of long-term care insurance. They offer some of the best plans in the industry, including lifetime benefits coverage, multiple elimination periods, and inflation protection. They are a full-service insurance company providing coverage in all 50 states, providing virtually all types of insurance policies.
Mutual of Omaha also offers premium discounts. For example, you can save 15% when you purchase a policy for both you and your partner. You can also save 15% if you’re in good health. There’s even a 5% discount if you are married but your spouse does not purchase a policy.
Maximum Benefits: Up to $7,000 per day, up to a $250,000 lifetime maximum
Benefit Period: Up to maximum daily or lifetime limit
Waiting/Elimination Period: One-time deductible of $4,500 up to $21,000
Like Mutual of Omaha, New York Life is a large, well-established and diversified insurance company. In addition to long-term care policies, they also offer virtually every other type of insurance policy available. Also like Mutual of Omaha, New York Life is a mutual insurance company, which means it’s owned by its policyholders, not shareholders. The company partnered with the American Association of Retired Persons as a preferred provider of long-term care insurance policies.
New York Life provides their NYL My Care long-term care policy. The basic parameters are as follows:
Like other direct insurance providers on this list, New York Life also offers annuities and whole-life insurance policies with long-term care riders.
Maximum Benefits: Up to $750,000 maximum lifetime benefit
Benefit Period: Up to 7 years
Waiting/Elimination Period: 90 days
Nationwide is one of the leading providers of long-term care insurance in America. With a maximum lifetime benefit of up to $750,000, they provide the highest lifetime maximum benefit on our list. They also offer a single, simple, 90 calendar-day elimination period. You can choose between two years and seven years for a maximum benefit period.
The policy will also cover home healthcare, hospice, adult day care, household services, home safety improvements, and even family care. And in a unique twist, nationwide also provides international benefits. If you live out of the country during the benefit period, the policy will pay 50% of the maximum monthly benefit.
Maximum Benefits: Up to $250,000 maximum lifetime benefit
Benefit Period: Up to maximum lifetime benefit limit
Waiting/Elimination Period: 90 days
Brighthouse Financial is an insurance provider that offers two types of products, annuities and life insurance. Either is available with a long-term care rider. The company has $254 billion in assets, serving about 2 million customers.
Brighthouse Financial provides long-term care insurance through its SmartCare plan. It’s a combination plan that adds a long-term care provision to a whole life insurance policy. You’ll get the benefit of long-term care if it’s needed, but you’ll also have a life insurance benefit to pay to your beneficiaries if it’s not, or if there are any funds left over after your long-term-care stay.
The policy will cover adult day care, hospice, and home healthcare, in addition to nursing homes and assisted living facilities, and skilled nursing care.
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Maximum Benefits: Varies by provider
Benefit Period: Varies by provider
Waiting/Elimination Period: Varies by provider
CLTC Insurance Services, or California Long Term Care Insurance Services, is a long-term care insurance aggregator, based in San Francisco. Aggregator is a fancy word for an online insurance marketplace. As an aggregator, CLTC will give you access to a large number of long-term care insurance companies. You can then choose the one offering the plan that will work best for you. The main limitation of this provider is that they offer policies only in the state of California.
In addition to long-term care insurance, they also offer annuities and life insurance policies, both with long-term care riders. These types of policies eliminate the need for a dedicated LTC policy, since the cost of long-term care is paid out of the proceeds of the annuity or life insurance. CLTC also offers critical illness insurance.
Long-Term Care Insurance Guide
What is Long-Term Care?
When an individual reaches a point where they can no longer care for themselves, long-term care becomes necessary. That care can be provided by anyone from family members to nursing homes.
The need for long-term care generally applies when the individual can no longer perform one or more of the six activities of daily living (ADL). This can include inability to dress, groom, go to the bathroom, bathe, eat, or even to move about freely.
In most cases, long-term care becomes necessary after a major health event, like a heart attack or stroke. But it can also be the result of an ongoing, degenerative health condition or simply advancing age.
In most cases, long-term care is provided by a family member. But institutional care may be necessary if the individual is unable to perform several ADLs, which may overwhelm the ability of family members to provide ongoing care.
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How to Purchase Long-Term Care Coverage?
We recommend contacting any of the seven best long-term care insurance providers in this guide. Otherwise, do a search and identify insurance companies that offer long-term care coverage. But be aware that not all insurance companies offer it, precisely because of the many variables. It involves.
When purchasing a policy, be aware of the following:
Like life insurance, it’s best to purchase LTC insurance when you’re young and healthy. That’s when the premiums are lowest.
Consider purchasing a long-term care insurance alternative, like a life insurance policy or an annuity with a long-term care rider (see below). It’s generally much less expensive.
Pay close attention to the maximum benefit paid, whether daily, monthly, annually, or lifetime. It should approximate nursing home costs in your area. (Be aware that these costs vary greatly from one state to another.)
Pay close attention to the benefit period. While the typical number of years an individual needs long-term care coverage is three years, there’s no way to tell what you may need. If you can afford the higher premium, it may be best to go with the longer benefit period, say, five years or longer.
Be aware of the elimination period. The standard is 90 days, but it can be as long as one year. This is not a minor factor, since nursing home care at $8,000 per month could cost you $24,000 with a 90-day waiting period before benefits kick in. The waiting period you choose should match the amount of liquid assets you expect to have available to cover it.
When you take a policy, be prepared to pay the premium for the rest of your life. If you take a policy at 60, stop making the payments at 80, then you need long-term care at 85, you’ll get no benefits from the lapsed policy.
According to the website Consumer Affairs, long-term care insurance premiums look something like this:
Now, the screenshot above reflects only sample averages for very specific policies at ages 55 and 65. The actual premium you will pay will be based on a combination of factors, including your age at the time of purchase, any health conditions you have, as well as the dollar amount and term of the benefits your policy will include.
Finally, given how complicated long-term care insurance is, it wouldn’t be overkill to have the policy reviewed by an attorney before accepting it. If so, an attorney who specializes in elder care will be your best choice.
Who Needs Long-Term Care Coverage?
The short answer to this question is everyone. The unfortunate reality is that people turning 65 have an almost 70% chance of needing some type of long-term care services during their lifetimes. Approximately 37% will require institutional care. And statistically, women and single individuals are more likely to require long-term care than men and married individuals.
If you’re unsure if you need long-term care, check out Jeff’s post, Long term care insurance: do you really need it?.
Though it isn’t well-known outside the industry, there are two basic types of long-term care coverage available. The first is a standalone long-term-care insurance policy.
Like a life insurance policy, medical underwriting will be performed. The insurance company will consider your age, your health condition, your family health history, your occupation, requested benefit levels, and other factors in approving your application and setting the premium level. This is the more costly of the two options.
The other is a hybrid policy. Most commonly, this is life insurance with long-term care benefits. You’ll purchase a basic life insurance policy, then add a long-term care rider to the policy. This will increase the premium on the life insurance policy, but it will be much less expensive than a standalone long-term-care policy.
Meanwhile, you’ll also have a death benefit from the life insurance policy, in addition to long-term-care coverage. But the policy may also include using some or all the death benefits to pay the long-term-care benefits. Your beneficiaries will receive only the amount of the unused death benefit upon your death.
Most of the best life insurance companies offer life insurance policies with this rider.
Another variant of this option is to use an annuity with long-term care rider. Annuities are designed to provide an income stream, very similar to a pension. But similar to a life insurance policy with a long-term care insurance rider, you can also add the rider to an annuity.
Again, it will be less expensive than purchasing a standalone long-term-care policy. And the long-term-care benefits may reduce any death benefit in your annuity. But the provision will be much less expensive than purchasing a standalone long-term-care policy.
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Finding the Right Policy
Long-term care insurance is one of the more complicated insurance types. It also includes more potential variables than other policies. For example, not only will you not know if you will need the coverage at all, but you won’t know when, to what degree, what level of care will be required, or how long it will be needed.
Because of all these variables, the cost of a long-term care insurance policy can be all over the place. But it may be better to pay a little bit more for a more comprehensive policy than to price-shop for the least expensive plan.
Before deciding to purchase a long-term-care insurance policy, first review Jeff’s Podcast episode: Long Term Care Insurance – How much do you need? Given how complicated long-term-care insurance is, it’s best to go in with as much knowledge as possible.
How We Found the Best Long-Term Care Insurance Companies
We used the following criteria to determine the best long-term care insurance companies of 2023:
Maximum Benefits: Given that the cost of long-term care can easily run into hundreds of thousands of dollars, we favored companies with the most generous lifetime benefits.
Benefit Period: One of the most basic problems with long-term care is the uncertainty. There’s no way to know in advance what level of care you might need, or how long it might be necessary. For that reason, we favor the companies that provide the most flexibility in this area.
Waiting/Elimination Period: Just as most insurance policies have deductibles, long-term care insurance uses the waiting period in much the same way. The standard delay on benefits is 90 days. But we prefer companies that offer longer waiting periods, since this will represent an opportunity to lower the cost.
Speaking of cost, as much as we would like to provide a list of average costs per provider, this information simply is not available. That’s because long-term care insurance is highly customized. There’s nothing approximating a “one-size-fits-all” policy, as each policy premium is determined by a multitude of factors.
These include your age at the time you purchase the policy, your general health condition, your family health history, the length and amount of coverage you need, and many other factors. The only way to get a reliable premium figure will be to contact one of the companies above and get a quote.
Best Long Term Care Insurance FAQs
What is long-term care insurance?
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Long-term care insurance is a type of coverage that will provide benefits to pay for your personal care when you’re no longer able to do so for yourself. While the typical long-term-care scenario involves a nursing home, it also applies in lesser situations. That can include assisted living arrangements, home nursing care, and even family care. The policy will begin paying benefits when you qualify for care based on inability to perform several of the ADLs.
What does long-term care insurance cover?
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As mentioned earlier, long-term care insurance benefits begin to apply when you are unable to perform activities of basic living. Depending on the type of policy you have, you’ll receive benefits for a stay in a nursing home, an assisted living facility, skilled nursing care, an adult day care, hospice, and even home care provided by your family.
Some policies will even provide for the cost of modifying your home to better accommodate your capabilities, or the purchase of certain helpful equipment.
How long does long-term care insurance work?
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A typical long-term-care insurance policy will pay benefits between two and five years, though some will go as long as seven, and a few providers offer lifetime benefits. You should be aware that you will need to qualify for whatever coverage term you prefer, and the longer the term, the higher the premium will be.
Is long-term care insurance worth it?
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It really depends on your perceived need for the coverage, and your ability to pay the premiums. Need can be determined by your family history. If you have multiple family members who require long-term care, having the coverage for yourself will be highly desirable. But if you’re in excellent health, and there’s little history of a need for care in your family, you may want to pass on the coverage.
And of course, given the high cost of the premiums, your ability to afford coverage can never be ignored. But if you have very limited financial means, Medicaid may provide benefits for long-term care. However, to qualify your total assets must generally be below $2,000.
Summary of the Best Long-Term Care Insurance Companies
Let’s wrap up this guide by giving you one more look at our list of the seven best long-term care insurance companies of 2023:
Long-term care insurance isn’t inexpensive. But given the unusually high likelihood that will be needed at some point in your life, it’s a policy worth having if you can afford it. And if you can’t, consider taking an annuity or a whole life insurance policy with a long-term care provision.
Northwestern Mutual Recognized by Forbes as one of America’s Best Employers for Diversity for Seventh Consecutive Year MILWAUKEE, April 26, 2023 /PRNewswire/ — Northwestern Mutual, a leading financial services company, announced that it was selected by Forbes as one of America’s Best Employers for Diversity for the seventh year in a row. This honor – … [Read more…]
You were running around doing errands all weekend. From the field at your kid’s soccer game to the mall, it seems as though you covered every square inch of your town. You get home and check your pocket; your wallet is missing.
Don’t panic. In addition to calling your bank and credit card companies to report your cards lost or stolen or using your banking app to turn off your cards, you can take other steps to protect yourself from identity theft and credit card fraud.
In fact, if you have any reason to be concerned about identity theft or fraud,there’s a free service all three major credit bureaus (Experian, TransUnion, and Equifax) offer that can help you protect yourself: a fraud alert.
What Is a Credit Report Fraud Alert?
A credit report fraud alert tells creditors you may have recently been a victim of identity theft. Once you add a fraud alert to your credit report through one of the three major credit bureaus (Equifax, Experian, or TransUnion) that credit bureau also alerts the other two organizations. When potential lenders and creditors see a fraud alert, they should take additional steps to verify your identity before granting credit.
Credit report fraud alerts are different from other types of alerts, such as credit freezes or identity theft reports. A credit freeze prevents anyone, including you, from accessing your credit report without your permission. An identity theft report, as the name suggests, shows creditors that you recently fell victim to identity theft.
If you file an identity theft report, you should also put a fraud alert on your credit report or even freeze your report to make it harder for criminals to open new lines of credit in your name. As an added benefit, when you place a fraud alert on your credit report, you’re eligible to get a free copy of your credit report from all three credit bureaus twice in that year instead of just once.
Types of Credit Report Fraud Alerts
Consumers can rely on three different types of credit report fraud alerts, depending on the situation. They vary in duration and who qualifies for each type of alert.
Initial Fraud Alert
If you worry you’ve been a victim of fraud or just want an added layer of protection for your credit and identity, you can easily apply for an initial fraud alert. This alert lasts for one year. It encourages companies to take an extra step, like calling a phone number you provide, to confirm you filled out a new credit or loan application.
An initial fraud alert doesn’t prevent you from applying for new credit. (That’s the job of a credit freeze.) It also doesn’t prevent criminals from using your existing credit cards if they’ve gained access to your account number.
Extended Fraud Alert
An extended fraud alert lasts for seven years. It takes a little more paperwork to apply, but it’s also free.
You can only apply if you’re a victim of identity theft and file a police report or a report at IdentityTheft.gov. Since gathering all the documentation takes time, you can file an initial fraud alert in the meantime.
In addition to receiving an additional free copy of your credit report from all three bureaus the year you place the alert, you will also be removed from marketing lists for unsolicited credit card and insurance offers for five years.
Active-Duty Alert
Members of the U.S. military can protect their credit for added peace of mind while they’re deployed. An active-duty alert functions just like an initial fraud alert, making it harder for someone to open a new account in your name. Like an initial fraud alert, an active-duty alert lasts for one year.
How Credit Report Fraud Alerts Work
When you file a credit report fraud alert, banks, credit card companies, and lenders should take an extra step to verify your information before approving your credit application.
Often, that means they must call a phone number you provide to verify that you really completed the application. A fraud alert also allows you to secure a second free credit report from each of the three bureaus in the year you initiate the report.
Keep in mind that a fraud alert does not stop criminals from using your existing credit cards to make fraudulent purchases.
Placing a Credit Report Fraud Alert
Fortunately, it’s easy and free to place a fraud alert on your credit report. Once you place the alert with one credit bureau, they share the information with the other bureaus. The steps you take depend on whether you want to place an initial fraud alert or an extended one.
How to Place an Initial Fraud Alert
You don’t need to be a victim of identity theft or credit card fraud to request an initial fraud alert. To place one, reach out to one of the three credit bureaus. Each has a slightly different process.
Equifax
Visit Equifax’s fraud and active-duty alert page to place a fraud alert with Equifax. You must log in to your account and provide your name, address, and Social Security number. You can also call 800-525-6285 to request a fraud alert by phone.
Experian
To place a fraud alert with Experian, you can visit the fraud alert center and select “Add a fraud alert.” Choose the type of alert, and then fill out the information requested on the form. You need a valid email address and your Social Security number. You can also call to place a fraud alert at 888-EXPERIAN (888-397-3742).
TransUnion
To place your fraud alert with TransUnion, visit TransUnion’s fraud alert page. Log in to your TransUnion account and provide a valid email address and your Social Security number. You can also call 800-916-8800 to place a fraud alert by phone.
How to Place an Extended Fraud Alert on Your Credit Reports
Placing an extended fraud alert requires a few extra steps and some additional information. For example, you must file and submit an identity theft report. You can download the form to mail at these websites:
Each credit bureau has slightly different requirements to prove your identity and address.
Before mailing the form, gather all the documents you must mail with it, including the:
Police report, law enforcement agency report, or Federal Trade Commission identity theft report
Photocopy of documentation to prove your identity, such as your Social Security card, pay stub with your Social Security number, W2, or 1099.
Photocopy of paperwork to prove your mailing address, such as a driver’s license or state ID card, rental lease agreement, house deed, pay stub showing your address, bank statement with your address, or utility bill with your address.
TransUnion also accepts a canceled check with your home address, a stamped P.O. Box receipt, or a signed letter from a homeless shelter as proof of residence.
Once you’ve gathered this information, send it to one of the bureaus along with the extended fraud alert form you downloaded from the website. Experian allows you to upload the form and supporting documents electronically.
Once you’ve gathered the necessary documentation, mail the form you downloaded and printed to the appropriate address below.
Equifax Information Services LLC P.O. Box 105069 Atlanta, GA 30348-5069
If you’re wondering if you should place a credit report fraud alert, then you should. A fraud alert can help protect you from identity theft and credit card fraud, which provides added peace of mind.
If you’ve been a victim of fraud or recently lost your wallet or misplaced important documents like your driver’s license, it’s worth taking the time to place a credit report fraud alert.
Although a credit report fraud alert can’t stop thieves from using your existing credit cards (you have to report those stolen), it makes it harder for someone to open new credit in your name.
If you place an extended fraud alert, you’ll also be free from unsolicited credit card or insurance applications for five years. That means less junk mail and less chance thieves can open credit cards or apply for insurance in your name.
Final Word
While the Federal Trade Commission’s data shows instances of credit card fraud dropped slightly from 2021 to 2022, the amount of money scammed from consumers rose by 30% in the past year, up to a staggering $8.8 billion. Fortunately, there are steps you can take to protect yourself.
For instance, use virtual account numbers for online shopping, read your bank and credit card statements carefully, and sign up to receive notifications via text if a card shows unusual activity. Finally, set up an initial credit report fraud alert as an added layer of identity protection.
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Dawn Allcot is a full-time freelance writer and content marketing expert, specializing in personal finance, technology, real estate, and insurance. Her work has been widely published across the web, including on Bankrate, The Balance, Solvable, and the award-winning Chase News & Stories portal. Dawn is, additionally, the founder of GeekTravelGuide.net, a travel, technology, and entertainment website for the geek in all of us.
When J.D. announced that this week would be Book Week at GRS, I was excited about a set deadline for tackling a book from my ever-growing reading list. Since micro-finance and micro-credit have been of interest to me for the past four years or so, I decided to read Banker to the Poor: Micro-Lending and The Battle Against World Poverty by Muhammad Yunus. (J.D. reviewed the same book in 2007. Read his take here.)
Nobel Peace Prize winner Yunus is the founder of Grameen Bank, an organization that helps the world’s poorest, especially women, escape poverty through micro-loans, which are small loans given to start a business.
Banker to the Poor chronicles Yunus’ journey from a “bird’s-eye-view economist, teaching elegant theories in a classroom, to a worm’s-eye-view practitioner” and the creation of Grameen, a bank owned by its poor borrowers that boasts a loan recovery rate of 97.29%.
Meeting Sufiya Begum In 1974, professor Yunus, then a Bangladeshi economist from Chittagong University, took his students on a field trip to a poor village. There they interviewed Sufiya Begum, a woman reluctant to talk to them due to the village’s strictly-observed custom of purdah, meaning curtain or veil, that virtually secludes Muslim women from the outside world. Eventually Sufiya came to the doorway and told Yunus and his students about the economics behind the bamboo stools she made. To make one stool, she had to buy 22 cents worth of bamboo with a loan from local moneylenders, who charged her 10% per week. Her net profit was just two cents per stool.
Barely able to feed herself and her family on two cents per day, Sufiya was essentially enslaved to the lenders. She couldn’t save money or invest in her business because she was barely able to eat. All for a lack of 22 cents.
Yunus was shocked to realize that if Sufiya just had access to a loan at a better rate, she could feed, clothe, and house her children and expand her business, raising her family above the poverty line.
The birth of Grameen Yunus collected data on the village to find out how many borrowers were dependent on the moneylenders, finding that 42 people borrowed a little less than $27. He loaned them the money. Yunus writes:
It struck me that what I had done was drastically insufficient…My response had been ad hoc and emotional. Now I needed to create an institutional answer that these people could rely on. What was required was an institution that would lend to those who had nothing.
Yunus fought through red tape from banking institutions, governments, and local customs. With great tenacity, he found a way around numerous roadblocks with a passionate devotion to the people he was serving.
In 1983, Yunus formed the Grameen Bank. Grameen now has 2,564 branches, with 19,800 staff serving 8.29 million borrowers in 81,367 villages. Despite the warnings from traditional bankers, 97% of the loans are paid back. Yunus wasn’t surprised by this, as he knew the poor, who had no cash cushion and no other options, would not blow their one chance to get out of poverty.
A focus on women From the start, Yunus wanted to focus granting loans to women, with a goal of having 50% of the borrowers be female. It was an uphill battle to say the least. Yunus had to fight against customs, religious zealots, and banking institutions that effectively excluded women (they could make deposits, but couldn’t get a loan without the presence of their husbands). From birth, these women are routinely told they are unwanted and should have been killed at birth or starved — that they are just another mouth to feed and dowry to pay.
Additionally, Yunus saw that starvation and poverty were more of a woman’s issue than a man’s. If one family member has to starve so that the others can eat, it’s an unwritten rule that it must be the mother. A man also can throw his wife out at any time, simply by repeating “I divorce thee” three times, leaving her unwanted in her parents’ home or begging on the streets. But when a woman is given the means to support herself, her success focuses on her children and household. Yunus writes:
Though they cannot read or write and have rarely been allowed to step out of their homes alone…they pay more attention, prepare their children to lead better lives, and are more consistent in their performance than men. When a destitute mother starts earning an income, her dreams of success invariably center around her children…When a destitute father earns extra income, he focuses more attention on himself. Thus money entering a household through a woman brings more benefits to the family as a whole.
It took six years to reach the goal of 50% female borrowers. Today women make up 97% of Grameen borrowers.
Grameen around the world As Grameen and its methods expanded, Yunus would constantly hear that micro-lending wouldn’t work in another village or country. But to Yunus, people who were poor — which he defined as not having access to shelter, clean water, and a constant supply of food — had a lot in common no matter the geography.
One of the most touching stories in Banker to the Poor was that of an impoverished 40-something woman who made quilts. Through an interpreter, she told Yunus she was initially afraid when a bank staff member came to see her. Her husband didn’t like her talking to outsiders or leaving her home without him.
Though the staff member told her about the women in Bangladesh who were changing their lives, and she wanted to be like them, things where she lived “were so rough.” She didn’t dare do this herself, saying, “My husband would kill me if I created trouble for him.” The staff member introduced her to other women in the neighborhood, and eventually they formed a group. (Group meetings were a requirement for a loan through the local micro-finance organization, which critics said made it too hard for the poor to borrow money.) The woman eventually took out a loan, quickly repaying it and applying for another. Her quilts are in such high demand, she can barely fill her orders.
This woman, who spoke only Spanish, lived in Chicago, Illinois.
She never thought she’d earn her own money, she told Yunus. In fact, she never thought she’d have any money at all, since her husband never gave her any. In the 15 years that she had lived in America, she didn’t even have a friend until meeting the four women in her group, who she came to regard as sisters.
Today Grameen methods are applied in projects in 58 countries.
The politics of micro-lending Grameen and micro-lending have been criticized by the Right and the Left, and it doesn’t seem to side with either, despite Yunus’ praise for Democratic politicians and criticisms of Republicans. Grameen supports smaller government and criticizes welfare programs that don’t allow people to break out of the poverty cycle — yet it’s committed to social objectives and social intervention in the form of policy packages (without government involvement).
No matter your politics, Banker to the Poor is an inspiring memoir that will give you a new understanding of poverty around the world, micro-lending, and socially-responsible enterprises.
Note: You can read more about Yunus at PBS The New Heroes, a series about 14 social entrepreneurs.
Wouldn’t it be great if we could live comfortably in the biggest, busiest cities in the world with whatever we earn from our regular, underpaid jobs? Many of our favorite TV shows seem to insinuate that’s very much possible, leaving us to question our very existence and the choices we’ve made.
It just seems that some of TV’s most memorable characters can afford so much with their 9 to 5 jobs, without sacrificing too much. For example, Ross Geller lives in a two-bedroom apartment in New York and Philip Banks is happy in a 5-bedroom mansion in Bel Air – so what’s their secret?
Conservatory Blinds 4 Less, a UK company, has gathered some data regarding the realistic average wages of 5 of our favorite on-screen characters and matched them against real-life monthly expenses like rent, food, healthcare, child care, transport and other necessities.
The goal? To find an answer to the question: Could these pop culture icons live so comfortably in the real world? See below for a breakdown — or check out the interactive slideshow for a quick overview:
Homer Simpson
Homer Simpson is one of our favorite indolent characters. He lives with his wife Marge and his three children — Bart, Lisa and Maggie. Homer works at the Springfield Nuclear Power Plant as a Nuclear Safety Inspector and he is the family’s main provider, as Marge is a stay-at-home mom.
Since we’re using real world averages for all the characters’ earnings, let’s assume that in the real world Homer would earn about $4,299/month.
Now, the median rent price for a 4 bedroom house in Springfield, Oregon was $1,297 per month in 2019, and real estate agents recommend that your rent should cost no more than 1/3rd of your monthly earnings.
Considering other expenses such as utilities, food, healthcare, transport and other necessities, the whole family would need around $5,788.76 per month to make ends meet. So realistically, they would have gone bankrupt in no time — or would have likely downsized to a smaller structure to serve as the Simpson’s house.
Ross Geller
A paleontologist by profession, Ross Geller from Friends has a Ph.D. from Columbia University. He’s the kind of guy who’d love to settle, but somehow becomes some sort of divorce champion among his friends that fathers two children with two different women.
Ross is responsible for all his expenses, so according to some recent calculations, living in a two-bedroom apartment at 19 Grove Street and having a pretty cool lifestyle (with incredibly frequent coffee breaks throughout the day), would cost him around $4,931.51 per month.
University Professors earn an average of $3,836.25 per month (after tax). You do the math, but if we’re right, real-life Ross would be unable to afford everything we’re presented with in the show. However, he could continue living in NYC if he’d choose a smaller apartment with a significantly lower rent.
Philip Banks
Philip Banks is a main character on The Fresh Prince of Bel-Air – a strict man, yet a kind, loving husband and father. Philip is a federal judge which should normally have an annual income of $68,176 after tax, or $5,681 per month.
Considering that he lives with his family in a 5 bedroom mansion in Bel Air, their overall expenses should reach a monthly total of $10,696.
Banks would obviously need to double his income in order to afford such a lifestyle. While the family is likely to have some money saved up, without any lifestyle changes, the Banks would not be able to live in their gorgeous mansion for too long.
Sheldon Cooper
Dr. Sheldon Lee Cooper from The Big Bang Theory is a Caltech theoretical physicist, an unsung genius who started college at the age of 11, and received his first Ph.D. at the age of 16. Despite the fact that he has countless annoying habits, Sheldon still managed to get under our skin.
As a theoretical physicist in the real world, Sheldon would earn an average wage of or $7,225.50 per month.
Since the monthly costs of living in a 2 bedroom, 1 bathroom apartment in Pasadena would reach an average of $4,882.29 (including bills and other necessities), Sheldon is more than capable of affording his lifestyle.
Not to mention than he also has a roommate for the biggest part of the show, so that should definitely help him put some money in the bank for darker times. We’re finally facing a realistic approach here (though I would love to see what the study would say of Penny’s entire living situation).
Walter White’s house
Walter Hartwell White Sr., also known as Heisenberg, is the main character in Breaking Bad. The former chemist drastically changed his life after being diagnosed with Stage 3A inoperable lung cancer. In order to afford treatments and provide for his family in the event of his passing, Walter starts cooking crystal meth.
In this particular case, we can only assume the amount of money Walter gets for meth cooking – a lot! It is crystal clear that he can afford just about anything his heart desires. But with a bunch of people wanting him dead or in jail, paying rent is Walter’s last concern.
Bottom line
The next time you see a character living “the good life”, try to consider things from a more realistic point of view. Living in the middle of a big city and having a cool lifestyle requires a serious monthly income, and sometimes a movie is just a movie.
Also, please don’t consider getting into the meth business – this kind of stuff never ends well.
More homes from popular TV shows
Is It Real? Charlie’s Beach House in ‘Two and a Half Men’ Tracking Down Barney Stinson’s Apartment from HIMYM? Challenge Accepted! Daniel LaRusso’s House on Cobra Kai: A Real-Life Tuscan-Style Villa Decoding the Mystery of Captain Raymond Holt’s House in Brooklyn Nine Nine
Saturday, I posted what I thought was an amusing anecdote. I told how I’d bought some treats from a young girl’s bake sale, but she’d been woefully unprepared to take my money and give me change. I meant the story to be comic relief, but quite a few GRS readers found it unamusing â and, in fact, thought I came off as something of a jerk. Oops.
In retrospect, many people raised valid concerns (though some folks were making mountains out of molehills). I was something of a jerk. To make amends, today I want to provide a frame of reference so you can see where I’m coming from (not that this excuses my behavior), and I want to provide some tips for parents with entrepreneurial kids.
I was a grade-school entrepreneur
As I’ve mentioned many times, I always do what I can to support young entrepreneurs â that’s why I bought the goodies from the girls last week in the first place. I believe strongly that kids should be encouraged to make and sell things, and even start their own kid-sized businesses. I probably feel this way because I was a grade-school entrepreneur.
Solo travel can be an incredible way to see the world or explore your home state. If youâre used to traveling with friends and family, the prospect of going unaccompanied may make you wonder whether youâll get lonely or bored. But the vast majority of solo travelers say youâre in for an excellent adventure. Youâll […]
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You can feel it, can’t you? The burst of energy? The desire to get outside. The need to just do something. The whole spring renewal thing is legit. Hence why it really is wise to harness some of that new-found energy and put it toward…spring cleaning! It is a thing…
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I’m back, and I sound just like your mom: Save that damned emergency fund, already.
This week (Feb. 24-March 1) is America Saves Week. And not a moment too soon: As a nation, we’re losing ground. An ASW survey shows that just 51 percent of us have a savings plan with specific goals; four years ago that number was 55 percent. (Still too low, IMHO.) Just 40 percent of us have budgets that allow for savings at all, compared with 46 percent in 2010.
The ASW report notes several reasons (stop me if these sound familiar): relatively high unemployment and underemployment rates, stagnant wages and the struggle to pay off homes. (Hint: In the past four years, the number of homeowners who expected to pay off mortgages before retirement dropped 10 percent.)