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The Best Travel Rewards Credit Cards, August 2010

These credit cards offer the best rewards for frequent travelers.

The Best Travel Rewards Credit Cards, August 2010 The Best Travel Rewards Credit Cards, August 2010

Philadelphia Wants Bloggers to Pay $300 Registration Fee

Is a $50 or $300 license fee for bloggers appropriate if a blog earns a paltry income?

Philadelphia Wants Bloggers to Pay $300 Registration Fee Philadelphia Wants Bloggers to Pay $300 Registration Fee

The Best Credit Cards, August 2010

A round-up of the latest and greatest credit card offers available today

The Best Credit Cards, August 2010 The Best Credit Cards, August 2010

Decline Your Own Credit Card With MasterCard’s Help

The new inControl service lets credit card holders decline their own purchases.

Decline Your Own Credit Card With MasterCard’s Help Decline Your Own Credit Card With MasterCard’s Help

How to Not Get Hired: Drink or Hold Alcohol

Study: Don't drink wine or beer during an interview even if your prospective boss encourages it.

How to Not Get Hired: Drink or Hold Alcohol How to Not Get Hired: Drink or Hold Alcohol

A new study by researchers as University of Kentucky, the University of Pittsburgh and the Vanderbilt University Law School shows that people who win $150,000 from a lottery are just as likely as those who win $10,000 to declare bankruptcy within five years. I’ve often seen statistics that show that lottery winners often blow their winnings, declare bankruptcy, and find that an influx of cash for which they weren’t prepared changes their life for the worse, but this study goes farther by comparing these two groups of winners.

From the Yahoo Finance article describing the study, which will be published in a research journal:

They found… 5.5 percent [of lottery winners] declared bankruptcy within five years of taking home the jackpot. While the bigger winners were 50 percent less likely than small winners to file for bankruptcy within 24 months, they were more likely to file for bankruptcy three to five years after winning. The net result is that within five years, large winners were just as likely to file for bankruptcy as small winners.

The article points out that found money is often treated differently than earned money. When money arrives into someone’s possession through luck, like finding cash on the street, winning the lottery, and in some cases, getting a bonus payment, there’s a tendency to spend the money on something unnecessary.

While people don’t generally think of winning the lottery as having a negative effect, many winners would have been better off without the extra cash. While lottery commercials express the idea that a jackpot would be the solution to life’s problems, and the chance winning is more likely as it really is, it’s false hope. For the most part those who play the lottery end up spending more money on tickets than they’ll ever win. For individuals in difficult financial situations, it may seem like the only way out.

My coworkers and I used to buy lottery tickets when the jackpots were over $100 million. The stories of groups of coworkers splitting the winnings twenty ways and taking early retirement are inspiring, but the news cameras rarely follow their lives five years down the road. I participated because it was a small price to pay to participate in what’s more a social event, not because it was a chance to win money. But I do feel sorry for those who play the lottery with the belief that it’s the only plausible answer to the problem of needing money to move from one socio-economic status to another.

If you do win the lottery, try to manage the money responsibly. That will be almost impossible without prior knowledge of how to manage money, and many who play the lottery do not have this knowledge. Once you win, people will show up everywhere with suggestions. There is no privacy for lottery winners, so watch out for long-lost relatives and shady financial advisers.

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If you follow the endless financial news, you might have heard that the stock market ended August on a sour note. My investments suffered like those of many investors around the world. The only investment I’ve been adding to for the last few months has been my 401(k) at regular intervals. I’ve been holding off investing otherwise, and any extra income has been sitting in cash accounts.

At this point, I take a close look at my finances only once a month. That’s a big change from ten years ago, when I wasn’t earning enough even to pay for the cost of commuting to work. I began tracking every penny spent to be sure there was as little waste as possible. Over time, the necessity of tracking my finances so closely lessened, and now I’m fairly comfortable that I’ve built up good habits with money. I can save for the future while enjoying my life today.

I’ve mentioned my interest in photography before. This coming month, I plan on taking more steps to take this to a new level. I should have a few paying jobs as a photographer over the next few months, and I think it makes sense to create a new business entity to formalize the activity. My first concern is naming the new company.

But for now, here’s a look at my balance sheet as of the end of August 2010. Continue reading this article →

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As I live not too far from Newark, New Jersey, many of my flights around the country are serviced by Continental Airlines, an airline with a significant hub at Newark Liberty International Airport. Like all airlines, Continental has been cutting services and adding fees to keep fares low, but I’ve never had a bad experience with the airline.

I came very close to cashing in 30,000 miles in exchange for first-class upgrades in a recent trip, but the seats never became available. It took a few days for the unused miles to be credited back to my account, but even customer service was helpful.

Continental Airlines OnePass® Plus CardSince I travel every year, I’ve decided to begin using the Chase Continental Airlines OnePass® Plus Card to improves my benefits. While cash back credit cards have done well for me for many years, I never earn more than $500 a year. With a credit card providing a mile for every dollar spent, a number of bonus opportunities, and a free checked bag on every flight, I could probably receive more in benefits that with my two cash back rewards cards. This is despite an $85 annual fee that kicks in after the first year.

The Chase Continental Airlines OnePass® Plus Card offers benefits similar to my (no-fee) Visa Signature card, such as concierge services, extended warranties, and price protection. There are some promotions right now, too:

  • Continental Airlines OnePass® Plus CardThe annual fee ($85) is waived for the first year.
  • You’ll receive 25,000 bonus miles after your first purchase.
  • You can earn additional 5,000 bonus miles by adding an authorized user within two months.
  • If you spend $25,000 on the card the first year (and I most likely will), you can earn 10,000 bonus points.
  • Continental will waive the first checked-bag fee for you and any travelers on the same reservation.
  • When you buy airline tickets with the card, you’ll earn two miles for every $1 and one mile for every $1 spent on other purchases.

After completing my application last night, I was accepted in under 60 seconds. Oddly, the acceptance page was blank in my web browser and I couldn’t determine the next steps. Reloading resulted in an error and completing the application a second time would probably raise a red flag. Now I’ll just wait to hear from Chase.

Continental is in the process of finalizing a deal with United Airlines. United and Continental are merging, and the new airline will bear the United name and the Continental logo. Some redundant routes may be eliminated, and the separate airline miles programs will be merged. Chase manages credit cards for both Continental and United, so I believe the process to merge miles will be relatively smooth.

As miles aren’t a real currency, they are always in danger of being devalued. This type of systemic risk isn’t for everyone, particularly if the rewards drawn don’t compensate for the annual fee.

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I don’t like the term “entrepreneur.” It’s not because it comes from French, though the word does have an interesting etymology. The first time the word was used in English, borrowed from Old French, it meant a “manager or promoter of a theatrical production” (source). The word has a different meaning now. Anyone who runs a business is an entrepreneur, but the word’s connotation goes beyond a dictionary definition.

Entrepreneurs are driven, singularly focused, relentless, and in some cases, shady or sleazy. Not all share these negative aspects, but I often think of a man trying hard to sell his products or services to a mismatched customer, perhaps bending the truth or relying on unsophisticated marketing tactics. These aspects come to mind when someone is identified as an entrepreneur, even if it is not always true. Thus, I don’t particularly like being considered an entrepreneur, though I am happy to call myself a business owner.

Jay Goltz is offering ten reasons entrepreneurs succeed. Not all succeed, but those who do perhaps share some of these values, motivations, or tactics. Here is what he is offering:

1. Look for opportunities to do something better than just about everyone else.
2. Accept risk as a necessary evil. It makes for much less competition.
3. Act responsibly to customers, employees and vendors.
4. Goals aren’t enough. You need a plan. You need to execute the plan.
5. You need to fix the plan as you go. Learn from your mistakes. Most people don’t.
6. Do not reinvent the wheel. Learn from others — join a business group.
7. Make sure the math works. I know plenty of people who work hard and follow their passion but the math doesn’t work. If the math doesn’t work, neither does the business.
8. Make sure that every employee understands and works toward the mission.
9. There are going to difficult times and you need to be resilient; whining is a waste of time.
10. There will be sacrifices. Work to find a balance so that you don’t become a financially successful loser. It’s not about the income, it’s about the outcome.

Interestingly, reason number ten fits with my preconceived notion of an entrepreneur. The quest for income at the expense of all else is an unappealing quality. It’s reason number one, however, that resonates the most with me. I also feel strongly about number seven, following a passion. Sometimes, your passion will lead you to something you can do better than most other people, a state in which you have something special to offer.

What other tips do you have for entrepreneurs?

Consumerism Commentary is currently offering a giveaway exclusive to our Facebook fans. Take a look and come back here to participate and perhaps win a prize.

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I’m still a fan of the mobility and flexibility offered by renting a place to live rather than buying. I don’t know where I’ll be living in the next few years, and I wouldn’t want to deal with the expense and hassle of selling a house so soon after purchasing. Perhaps my evaluation of my situation is changing, however.

I like the area where I live. As of today’s thinking, I probably won’t move way from the greater Princeton area unless my girlfriend and I decide to live closer to her family in Queens or Long Island. The borough of Princeton is an expensive place to live, as is the surrounding township, so if I were to buy a house in this area it would be out of town.

Though the decision to buy is influenced by my needs and concerns, it’s always helpful to look at the real estate market in the area. For most non-investment real estate transactions, a homeowner would sell one house and buy another, sitting on both sides of transactions. All things being equal, he or she would not see an advantage in a sellers’ boom market because he or she would also be buying, and the same is true in a buyers’ market as he or she would also be selling. The only time one can really take advantage of a buyers’ market is when they are buying a house without selling one, as one would do when buying a first house.

That’s where I stand right now. Home prices are historically low, even if Princeton has seen a 5% increase in median sale prices over the last year. Although the Case-Shiller Home Price Index is up 3.6% this month, many analysts still forecast low prices for a while.

One option I am currently considering is buying a multifamily house, living in one unit and renting out another. With renting being a popular option right now, and with a location in close proximity to an Ivy League campus, this could be an interesting way to build equity and create new cash flow.

If I decide to move away from the area, I could rent both units in the multifamily house. Managing the house from afar could be difficult, but if there is enough cash flow, I could hire a management company.

The plan relies on finding the right kind of house for the right price. If I do end up leaving my day job, it will be harder to qualify for a mortgage and if I do, I’ll most likely have to pay higher interest rates. This plan may need to be enacted, if at all, before I quit the rat race to work on my projects full-time.

Any thoughts are welcome. Do you think this is a good plan? What would you do?

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My brain is slowly re-wiring itself now that I’m finally free of credit card debt, and I’m wondering about things that I never seriously considered before. I remember many years ago talking with a friend who tried explaining to me that it made sense to spend $600 on a pair of shoes, if they were high-quality enough to last for decades. At the time, I rejected that idea immediately and, I thought, forever. After all, they’re just shoes.

But now, I’m allowed to think about paying more for higher quality in additional areas of life, and I find that I want to think about it before spending money on just about anything. Maybe shoes can be worth $600, maybe it’s worth it to have a suit tailored exactly to my body, maybe there’s a good reason one hammer costs twice as much as the hammer hanging right next to it.

For example, last week we bought an oscillating lawn sprinkler. In the last seven years we’ve bought probably seven or eight sprinklers, some of them fancier than others, but none of them what you’d consider high end (at least not if you’ve done the research I just did). Last week’s sprinkler probably cost just over $10 after tax. We tried to set it up in the yard and we simply couldn’t figure out how to get it to spread the water out in the right pattern. It’d get stuck in one position, or only go up halfway before coming back down. The controls didn’t make any sense, and when we tried to get it to stop spraying upside-down, it broke.

After we gave up, I did some research at the Home Depot and Lowe’s websites, and cross-referenced their options with sprinkler reviews at Amazon, and I found two surprising facts: 1) neither Lowe’s nor Home Depot sell sprinklers at my local stores that are well-reviewed on Amazon, and 2) it looks like you need to spend at least $35 for any sprinkler that is well-reviewed.

Actually, I learned a third surprising thing: a person could theoretically spend almost $2,000 on a lawn sprinkler. I didn’t get that one, I got the first one I could find with more than a couple five-star reviews, which ended up being $37.80. It still seems like a lot to spend on something that should be easy to make cheap, but according to several reviewers, this is a brand that can last up to ten years. In other words, it goes against the “they don’t make ‘em like they used to” concept.

I tested the new sprinkler just now, and it worked right the first time, due in large part to controls that make sense. So, I’m adding sprinklers to the list of things I’d pay more for, in addition to video and photography equipment, computer hardware and software, trash cans, wine, coffee, power tools, haircuts, mattresses and bed frames, cars, air filters, pet care, vacations, exercise equipment, and dinner ingredients, not to mention the occasional visit to a nice restaurant.

But there are still some things I will always buy the cheap version of, if only because I tend to lose them. That’s being generous; I always lose them. Sunglasses and fingernail clippers, for example.

I’m still not so sure about shoes, though. What did you used to buy the cheap version of, before you decided to spend more on quality?

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While half-watching the Primetime Emmy Awards last night, I considered what it must take to be the best in an industry. From what I could glean from the broadcast, and from what I’ve seen in my own life, winners share intense focus, hard work including sleepless nights, strong talent, moral support, and no tolerance of mediocrity. None of this applies only to the entertainment industry, of course. The most successful CEOs don’t receive their positions by luck, except perhaps for the few who inherit a business from their relatives, whose good fortune rests slowly in birthright.

Intense focus. I’ve made the case for generalism in today’s economy. Being good at a wide variety of things can lead to better career prospects, being a better leader of people, and living a more fulfilled life. Successful specialists, however, have configured their lives in such a way that they don’t have time for spreading their attention around too many unrelated interests. Their efforts are singularly focused on perfecting their skills and competing amongst the best.

Eric Thomas says it well: “When you want to succeed as bad as you want to breathe, you’ll be successful.” Eric talks about wanting success so much that you don’t have time to eat or even sleep.

Sleepless nights. Like many people, I had a boss who was a workaholic. As executive director of an understaffed, overreaching non-profit organization, he often worked in his office overnight in order to accomplish everything that needed to be done. We’d come into work in the morning to find him asleep as his desk. I’ve disagreed with him about the importance of sleep to a body and mind’s ability to function, but it was difficult to argue with the leader of an organization that is arguably one of the best, if not the best, in the world in its category.

While I reclaimed some sleep this weekend, I usually sleep less than five hours a night. With my day job taking my time an energy — and this coming week is going to be a major test of my stamina — I spend the rest of my waking time writing and otherwise handling business pertaining to my websites. There is very little time right now to fit in other extracurricular activities like photography.

Strong talent. I tend to think a very small portion of talent is inborn. Genetics may play a role to a point, and learning something new is easier for some people than others, but hard work often leads to what other people would identify as talent. And talent is often relative. According to my recollection, which could be wrong, I started off in third grade as a mediocre clarinetist — for a third grader. After a few months with the instrument, the teacher still placed me towards the end of the row, with the best players at the other end.

That summer, I moved from upstate New York to New Jersey, continued playing the clarinet in elementary school, but discovered I was somewhat more advanced than the students who were just starting in fourth grade. This gave me some momentum and by high school I held the “first chair” position among strong classmates for every year starting as a sophomore. If I hadn’t moved to New Jersey, I might have continue to struggle in comparison to my classmates and never given myself the motivation to succeed.

Moral support. An interesting theme in this year’s Emmy Awards, which I mentioned above, was the tendency for winners to credit parents for supporting their desire to succeed in an extremely difficult industry. While some people are motivated by adversity, and one man or woman vs. the rest of the world often makes an interesting story, most people can’t succeed without cheerleaders. You can make the most of a feedback loop by surrounding yourself with people who believe in what you do and share your intensity.

No tolerance of mediocrity. If you define success by being the best in your industry, you can only succeed by seeking excellence all the time. Like the boss in the non-profit, that organization could only remain world-class by having high expectations for everyone involved. In music, this is obvious. Composer Jack Stamp gives a wonderful presentation about why music matters and explains that 95%, considered an “A” in most courses, is a rate of failure for music performance. Nothing other than 100% is acceptable, because if everybody misses only 5% of the notes of a performance, the music will be unlistenable.

While most activities don’t require 100% accuracy all the time, the danger is mediocrity. This is probably the most difficult of all the above keys to success, particularly for those who don’t like hurting other people’s feelings. Nobody will care about your success as much as you, so the strive for excellence is often solitary. Don’t settle.

The above suggestions don’t guarantee success, and you can reach different level of success without adhering to these tips. These attitudes or philosophies are practically necessary, however, if you are striving for world-class success at the level of an Emmy Award winner.

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On today’s episode of the Consumerism Commentary Podcast, Tom Dziubek talks to Zac Bissonnette, writer at the Huffington Post and DailyFinance and also author of the book Debt-Free U: How I Paid for an Outstanding College Education Without Loans, Scholarships, or Mooching off My Parents.

Tom and Zac discuss how Zac was able to go to college without going into debt, the most cost-effective way to get a decent degree and how to be wary of getting bad advice from family, friends and high school guidance counselors when choosing a college.

Consumerism Commentary Podcast #71
Debt-Free U, Zac Bissonnette: S03E19 / 94

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Table of contents

[00:00] Introduction from Tom Dziubek
[00:30] Interview with Zac Bissonnette
[00:52] Zac’s selection of UMASS
[02:16] College selection advice from family, friends and counselors
[06:27] What prestigious colleges mean to your resume
[08:16] Financial aid
[09:41] Expected family contribution towards college
[12:39] Starting off at a community college
[13:18] The marriage loophole with financial aid
[15:02] Whether or not student loan debt is “good” debt
[18:07] The chances of getting student loan forgiven
[19:45] Getting into a good school without going into debt
[20:43] Finding a good school
[25:36] Working while in college
[32:07] Saving money on textbooks
[34:02] End

We always welcome feedback from listeners. If you have any comments for this episode or for any other, or if you have suggestions for future episodes, please leave us comments here or email us at podcast at this domain name.

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