This week I’m interviewing Abagail from I pick up pennies.  She a 30 year old, married woman living in Seattle with her husband and two insane cats.  She started I pick up pennies in August 2008 to write about frugality, debt repayment, and disability.

1. How did you get your name and what made you start blogging?

I grew up watching my mom pick up pennies (and other change) off the ground. She’d laugh about how people didn’t think it was worthwhile to pick up their change because it was “just a penny.” But, she taught me, pennies add up. In fact, each year she would save up her found money and use it to buy gifts for programs like the Salvation Army. We would take the money and wait for sales. Then we’d load up on board games and Play-Doh and all sorts of other goodies. It was a great lesson about the value of those coins on the ground. I also learned that, no matter what, there are always ways to help others. So I guess “i pick up pennies” just seemed natural because it’s ingrained in me to do just that. It’s practically a character trait. And it’s a piece of small, unexpected luck that makes me happy, which is a good reminder that not everything in life has to be expensive to be good.

Why I got into blogging. Whew, that’s a doozy! Well, my mom is Donna Freedman, who wrote for MSN Money’s Smart Spending and now does a column called Living with Less. She’s a natural-born frugalist, and I was raised at her knee. So a lot of the advice I read from PF bloggers contained frugal hacks I’d been doing all my life.

As I read more and more, I felt there was a niche that wasn’t being filled. Frugality and PF blogs are fantastic sources for tips and tricks. But not everyone can exercise all — or even most — of the options presented. I, personally, have chronic fatigue and that severely limits my ability to live as frugally as I would like. There are days I can’t leave the house. Or days when I have to use what energy I have on immediate errands, such as medication, leaving none for things like shopping sales at the grocery store.

I feel like PF and frugality blogs can easily (if completely unintentionally) make people feel bad about themselves, or at least frustrated. It’s just so easy to be down on ourselves for getting into debt, or for not living the ultimate frugal life. There are always going to be more tips and tricks than any one person can (or cares to) do. All those examples and ideas, though, can sometimes make us feel like we’re slacking, rather than being realistic.

So I felt like someone out there should write from a perspective of limitations. I have an ongoing battle with depression, which creates obstacles in and of itself. In addition, I have the constant tension between a Type-A personality and a lack of energy from chronic fatigue. These all add up to my demanding too much of myself. I set my goals unreasonably high and then am angry at myself when I inevitably can’t meet them. I think this behavior shows up in a lot of people. So I like to include pieces about the psychology of personal finance and life in general: How do you allow yourself to be human, but still try to be as frugal as possible; what do you do when you can’t be like (you think) everyone else is?

Finally, I think the thing that separates me from other blogs is that we’re low-income. There are certainly some bloggers out there who live more precariously than we do. (We have credit cards in an absolute emergency, as well as helpful family members.) But there are simply not that many blogs out there discussing the arduous battle of getting out of debt on a low income.

Living on a small income doesn’t make us better or worse than anyone else, of course. But most people who are paying down debt on a fixed income can easily become disheartened. We’re pecking away at debt, doing our best. Yet our efforts are mere crumbs compared to what a lot of PF bloggers can do. And for those of us with health conditions, the debt usually came about through necessity, not frivolity. For most PF bloggers, that isn’t the case. I thought there needed to be a blog that voiced that perspective.

2. What do you do in real life and how’d you get started?

In trying to work with a disability, I’ve done a lot of things. I was a landlord for awhile, then a resident manager. I’ve also been an administrative assistant (part-time). But right now I’m working for Microsoft on a contract basis. There was some nepotism involved, since my mom already worked for them. Essentially, I take pieces from MSN Money, usually the blogs, and put them on social bookmarking sites to get noticed. The work will end at some point, and it’s only about 10 hours a week, but it’s perfect for me. I get to work my own hours, depending on my energy fluctuations.

3. What is the reason you blog about personal finance?

I grew up with it, especially frugality. And, with Tim and I trying to start a life together, debt reduction is a huge part of our existence. It just seemed natural to write about that. Mostly, as I read other PF blogs, I thought, “I know that. I could write about that.” One day, I decided to just do it.

4. What were your 3 biggest personal finance mistakes?

Number one is pretty easy: A month before the wedding, Tim got laid off. We were so consumed with wedding details and stress, neither of us checked out unemployment right away. We thought it would be hard to explain why he was still going away for three weeks. (Thank goodness, I had planned a very frugal honeymoon!) So we decided to wait until we got back in early June.

It turns out the unemployment office doesn’t care if you disappear for weeks at a time. So we could have been bringing in enough money to avoid putting so much on the cards. (Remember, it was both regular expenses and a few last-minute wedding items.) But we didn’t bring in the money, so we did put it on the card. I keep kicking myself about that.

Number two: I guess not taking a more active role in my finances as a kid. Between the Permanent Fund Dividend (Alaska pays residents once a year, based on oil revenue) and strict savings, I had over $30,000 in my account by age 18. I had to save half of all birthday and holiday money. I was allowed to keep about $20 out of my paychecks. Even when I worked two jobs. (My account was in trust, so I couldn’t touch the money on my own. I highly recommend this for parents out there.)

That all probably sounds great. Except that during the 18 years it was accumulating, none of the money went into anything. Not even a CD. It just gained the infinitesimal savings rate that banks provide. I shudder to think how much interest we lost out on — especially since the money sat there through college, too!

Number three: I sometimes let myself get carried away with Tim. He’s a spender — though he’s reformed SO many of his unthrifty ways in the past three years, it’s amazing. And there were a few times that I let him talk me into some shirts I really wanted (but didn’t need) or similar purchases. In all, they probably add up to around $500 that we didn’t strictly have to spend. Nothing huge, but it is a bit of a source of regret.

5. Is your spouse as actively involved in finances as you are and how do you deal with it?

As I said, Tim is a spender. So I took over our finances as soon as he moved in, which was early on in the relationship. He was relieved, frankly. I got us on track to pay off his student loans, which had been in default for years. And I had the credit to get his teeth fixed (a calcium deficiency meant full dentures for him, about a year into our relationship).

I’m still sort of the “heavy.” He asks me about purchases a lot. But as he got more in line with saving money, I’ve started to get him a little more involved with financial decisions. We decide together whether to apply for a card for a zero percent balance or do a balance transfer to save on interest. We discuss purchases and how to save for them. I still make the payments, but he’s more aware these days of just what that means. I had been keeping a running total on our white board for our various debts, but I fell out of that habit. I want to start that up again, since then he saw our progress nice and clearly.

6. How long do you think this current economic situation will last for and how do you propose dealing with it?

Wow. Hmmm… I don’t know exactly how long it will last. I do know one thing: I don’t buy the line that we will be coming out of it by the end of the year. I think we have a minimum of another year to go. I don’t think we’ll really start to see a change until more of the jobs Obama has promised are created.

I know that a lot of conservatives think getting deeper in debt is bad and tax cuts will solve everything. Sorry, folks, but they haven’t worked in the last 8 years. They won’t work now. I’m frankly annoyed so many made it into the stimulus package.

I think the best route to take is that of FDR, which Obama’s already doing. You create jobs. The economy only gets worse as jobs get cut. Even those who are still employed stop spending. They’re afraid they’re next. If you create more jobs, you create salaries. People relax a little and are able to pay debts, which means fewer write-offs for credit card companies. As people honor their debts, the banks can de-clench a bit too.

I know that this will take America deeper in debt. Generally, I’m against that. But in this situation, the old adage applies: “Ya gotta spend money to make money.” We have to finance these jobs now. People need money to spend, or they end up destitute. It also means mortgage defaults, credit card write-offs and more government funds going to welfare and unemployment programs. We pay them one way or the other. Why not make it a job?

My main concern with this economy is that the sense of entitlement is not dissipating as fast as I would like it to. People are charging less. They’re cutting corners. But are they cutting enough? Americans are loathe to make their children do without, even when it’s just fewer toys. Also, I wonder if people will take full advantage of the jobs being created. There are still too many people in this country that think there is such a thing as a job that is “beneath” them. That they’re too qualified to be answering phones or sorting mail. I sincerely hope I am wrong about this, because it’s vital that we humble ourselves. Our hubris led us here. We believed we deserved it all, that we could afford it all — even as it was clear we couldn’t. Until we lose that smugness, I wonder just how effective these reforms will be.

7. What was your best personal finance decision?

Rather than pay off my student loans right away, I put down my bank account as a 10% downpayment on a house when I was 22. Then I rented out rooms. It was tough at times, and not something I would want to do again any time soon. But after three years, I was able to sell it for $50,000 more than I paid. (And I priced it generously to sell quickly.) I paid off my student loans, paid back my mom who had zeroed out my credit cards for me, and still had couple thousand leftover. That helped buffer a few of the 18 months I waited for disability.

8. What’s your biggest pet peeve about personal finance?

Ooooh, tough one! I’m full of pet peeves! I think the biggest one would be that there isn’t better education in this country about finances. Teens don’t know anything about credit, usually, and yet as of 18, they qualify for plenty of credit cards. I wish everyone were raised knowing how to live carefully, or at least within their means.

9. Where do you see yourself in 1, 5, and 10 years?

One year isn’t too hard. We’ll probably still be here, in our 1-BR apartment. Tim will hopefully have found some work he can do by then. And I hope to have started to make a little bit of money off the blog to help supplement his income.

Five years… Well, I know we would like to start a family by then. Probably just one kid, but we would definitely like to be parents. We just want to be more stable first. I want to be debt-free by then. Honestly, I’m hoping that could happen in 2-3 years, including debts to relatives. We’ve talked about potentially moving somewhere warmer for Tim’s skin and joints. Personally, I love Seattle, but I’m willing to try out Arizona or some place similar for three or so years and see how it goes.

Ten years… I know I’ll be 40. Does that help? Ideally, Tim would have found the capital to start his own business. He wants to open a Magic the Gathering store. We talk about it off and on. I told him I would rather try that first, before we have a house. Because then we have nothing to lose, since we know we can get out of debt again if something doesn’t work. But it would be nice to have a house by age 40, if not sooner. I miss being able to grow things in my garden. I don’t miss gardening so much, as I miss having a garden. Those of you who garden understand the distinction.

10. Tell me something unusual about yourself.

What, the chronic fatigue and being a landlord by 22 wasn’t enough?! Okay… Something unusual about myself. Well, I was born a month early (ruined a camping trip) and so Mom hadn’t had a shower yet. My grandmother tore into town and this one toy just kind of leaped out at her. It was called a “Comfy Dumfy” which was quickly changed to Humpty Dumpty by my family. I still have that original guy, plus all who followed him. My mom and I both give them at baby showers, because infants seem to love them. (Okay, and me too. I admit it. I still sleep with one. But they’re just so cute. Seriously. Check them out at www.timeforbaby.com. I’m not affiliated with the company in any way other than being a customer. I just like to justify my love for this particular inanimate object.)

I had no idea that Abagail was the daughter of Donna Freedman, very neato.  You learn something new all the time!  Thanks to Abagail for the interview and this week she’s hosting the Carnival of Money Stories, stop on by and check it out.