Mary Schmidt Marketing Troubleshooter

NYT: Home Equity Frenzy Was a Bank Ad Come True

“Live Richly.”

That catchy slogan, dreamed up by the Fallon Worldwide advertising agency, was pitched in 1999 to executives at Citicorp who were looking for a way to lure Americans to financial products like home equity loans. But some in the room did not like it. They worried the phrase would encourage people to live exorbitantly, says Stephen A. Cone, a top Citi marketer at the time.

Still, “Live Richly” won out.

And, so now here we are - millions up to their eyeballs in debt, home equity loans maxxed out, and their homes worth less than they paid for them.

By contrast, an excerpt from the article, Love Thy Neighbor (March 1950 issue of American Home)

“A small community in Northbrook Illinois has discovered something that the whole world would do well to put into practice!…

One of the first big problems was cultivating the lawns, which required the use of expensive tools. Prohibitively priced for the individual, the men grouped together and bought them co-operatively. Gordon Galloway Howie Warren, Dave Rowe purchased a three-way-owned lawn mower…”

Now, we’re not talking a fancy-schmancy big wally gas-powered machine…we’re talking an old-style push reel mower. (all arm power, no gas…there’s a photo of three proud young men gathered around the little thing.)

I wonder what Gordon, Howie, and Dave (if still alive) have made of all the home renovation and McMansion frenzy over the past several years? I remember when - growing up in the 50s and 60s - pretty much the only time our parents did anything new in the kitchen was when the stove or refrigerator died. Those gold and pink-flecked Formica countertops were there to stay - they worked just fine, thank you. And, paying off the mortgage was the goal - not adding more debt so you could impress your neighbors with your landscaping. (We also had only one family car, as did the other families in our neighborhood, including the bank president…but that fridge was always full, we ate out whenever we felt like it, and had money in savings…none of us were exactly roughing it.)

All of which is why one of my favorite sayings has always been “The best revenge is living well.” And “living well” is more a matter of perspective (and appreciation) than money. (It also helps that I have my Mom’s frugal, common sense, “stretch a dollar until it screams” genes…balances my Dad’s wild-eyed “let’s spend it before we even have it!!”‘ genes….;-)

Happy Friday! I’ll be getting out my little push mower and applying some arm power to the backyard…(and I can do so any old time, since there’s no motor noise or gas fumes to annoy my neighbors.)

Related Posts:
Make A Deal With The Universe
The Not-So-Big Life (Sarah Susanka also published a book by that title, and has published a 10th anniversary of The Not-So-Big-House. One of the criticisms of her work is that the houses are for wealthy people. But, the principles can be practiced by anyone, in life and in business.)
Martini Musing: The Not-So-Big Life (Again)

P.S. Thinking about simplifying (and doing something good for the environment)? I ran across this site for push reel mowers: Clean Air Gardening. (Love that name!)

Tags: Sarah Susanka, Mary Schmidt, The Not So Big House, The Not So Big Life, happiness