Charles Darwin is often misquoted when referring to the concept of “survival of the fittest”, but his writings specify adaptability as the trait that individuals should strive for if they want to survive (and reproduce). In order for our wallets to survive in the future, we’re going to have to learn to be more adaptable by far. Businesses can tag information, recognize patterns, analyze data, get up-to-the-minute reports and make decisions based on your behavior. As long as there’s a way to opt-out of this, I don’t personally have a problem with any of that, but I sympathize if you do.
It’d be even better if all of these techniques were necessarily opt-in. Unfortunately, I’ve come across a few instances where opting out isn’t a reasonable option. In fact, your only option seems to be to walk away.
Harrah’s Loyalty / Rewards Program
When you go to gamble at most of the casinos operated by Harrah’s, you get to sign up for a rewards card. You swipe the card at the table and points start to accrue. When you reach a certain threshold, you are eligible for free stuff. That’s not particularly special; casinos have always done this. But casino employees used to do this manually, using just their eyes.
Harrah’s has a powerful and massive computer analyzing customer behavior on-the-fly, and here’s how the trick works:
You’re a regular customer, but not a big spender
Harrah’s knows how much you’re usually willing to lose on a given trip to the casino, before you leave
You gamble some, and you start to reach your limit
A nice Harrah’s employee brings you a free drink
You start making bad decisions and lose more money at the casino
This can work at any level. Depending on how much you usually spend, they’ll offer you a free dinner, a show, a room, etc. But now, the casino doesn’t have to spend any time watching you, deciding what to offer you, or even personally handing you anything. It’s all electronic and automatic. Swipe, lose, drink, swipe more. In order to survive, we’ll need to be a lot more clever, and understand the machine that is trying to manipulate us. I realize that sounds paranoid, but it’s just a normal fact now.
Of course you can just ignore the Rewards Card (I think), but why would you? Free stuff!
Microsoft Surface Table in the Bar
Speaking of drinking, imagine a table that knows exactly when to offer to refill your drink. What am I saying? You don’t have to imagine it, here’s the video:
Say you go to a bar with one of these tables, and it’s a bar which is honest enough to inform you that they have one of these tables, and you don’t want to be manipulated. It seems that your options now are:
Be more clever and adaptable
Leave the bar right away
Bring your own glass
Who knows, maybe if these smart tables become ubiquitous, carrying your own glass will be trendy. Maybe you could buy one and put your Twitter feed on it. (By the way, you can now follow me on Twitter.)
Although my income has increased over the past few years, my spending has increased as well. After living the better part of the decade watching just about every dollar leaving my bank account, saving as much as possible, and living within my means, I’ve recently begun allowing myself to spend more freely.
I’m sure to spend only what I have available after accounting for all my bills and obligations and saving a significant portion of the remaining income. I’m currently investing in my 401(k) up to the government-mandated maximum as well as in my SEP IRA as much as possible each year. I’m allowing my bank accounts to grow, in order to have cash available for when I decide to buy a house within the next few years. None of this has changed, though increased spending means my savings are growing a little slower.
Here are some of the big outlays.
Photography equipment
Although I am far from a professional, I enjoy photography. I took one class last summer in order to sharpen my skills and my second class began in January. Photography can be an expensive hobby if you’re not satisfied with a cheap point-and-shoot digital camera. Two years ago this month, I purchased a Canon Digital Rebel XTi, a basic digital single-lens reflex (dSLR) camera. Since then I’ve been slowly accumulating various accessories like lenses. Last year was somewhat tame; I refrained from adding to my collection.
The last lens was purchased in 2008, so last year ended without any new major photography purchase. I couldn’t let that continue, so this weekend I ordered the Canon EF 100mm f/2.8L IS USM 1-to-1 Macro Lens. This will be a better choice than the other lenses for portraits and the only choice among my current options for macro photography.
Coin collecting
I’ve enjoyed coin collecting since I was very young. I’m still dabbling in the hobby only rather than filling coin folders with pennies found in circulation, I’m looking for some nicer coins that have been professionally graded. At the moment, I’m focusing on a set of Lincoln cents, but my next project will likely be a 20th century type set.
Recently, I’ve been successful finding certified coins on eBay at a fraction of the current prices listed in widely-accepted guide books. I don’t intend on buying these coins as an investment, hoping they will increase in value so I can sell and make a profit. I’m more interested in building a collection that I would be proud to own and possibly pass along to a future generation. According to the price guides, I’ve already made a profit on paper.
I’m currently creating a system to track each coin as an investment in Quicken.
Hobbies are luxuries. I feel lucky that I have income I can spend on a few activities that interest me. I’m only able to spend this money after years of living quite frugally, including living with three roommates to share rent, eliminating cable, and finding ways to transport myself without a car. If I had credit card debt, I would not be doing this. If I had student loans to pay off, which I had until a few years ago, I would be dedicating the money spent on photography equipment and coin collecting to eliminating that debt.
For those who are more financially secure, how are you spending your money now? How are you treating yourself and your interests now that you have paid off debt and are still making your savings targets?
I could always do better for my future self by saving and investing even more of my income. But I strongly believe that, when it is practical, I should be doing whatever I can to enjoy my life.
I’m an Apple fan, which I define as being anybody who takes time out from the workday two or three times a year to watch their media events and keynote speeches. I’m happily using a Mac Mini as our entertainment hub at home (Boxee, Front Row and Hulu Desktop? Yes, thanks), I use a MacBook Pro for work, and both my wife and I have an iPhone.
Earlier this week Apple showed off their forthcoming device called the iPad, which they explained is something in between a laptop and an iPhone (or iPod Touch). They pointedly contrasted it with Netbooks, as well they should, since tablets and netbooks serve different purposes. If you sold hardware, and you had to decide which aisle to put the iPad in, you’d put it in the “tablet” aisle.
The rumors and speculation leading up to the reveal were rabid and annoying, as is the resulting disappointment and backlash. I admit I was initially disappointed, too, but I gave myself some time for the information to percolate, and here’s what I’ve concluded.
It’s the User Interface, Stupid
There will always be a kind of person who can’t understand Apple’s appeal. All they see is another computer, but more expensive. My main problem with Apple used to be that you couldn’t buy software for it in the mall, you had to use a catalog, but the Internet fixed all that. I spent more than ten years suffering through Windows before I finally had the resources to switch. And I’m happier for it, since I’ve found that Apple developers think through many more user scenarios than their Windows counterparts do. The interface just makes more sense to me, but it’s clearly not for everyone. You have to unlearn a lot of Windows before you can learn OS X.
“It’s just a huge iPod Touch.”
There’s only one positive hardware difference between the iPad and the iPod Touch: it’s much bigger. But I’ve never had trouble reading anything on my iPhone. When something is too small, I just zoom in. So at first, the iPad was looking nearly useless.
At the Apple event, they made one huge mistake, which was that they didn’t show off any third-party apps which took advantage of the bigger screen. (Gaming might be enough for some audiences, but not yours truly.) They showed off some existing apps, but zoomed them in. Whoops. It wasn’t until the next day that I started imagining special iPad-sized apps for, say, Nurses, or engineers on oil drilling platforms, or cruise directors, or stage managers at fashion shows, maybe. You know, people that you often imagine holding a clipboard. People that need to see a lot of information at a glance.
Is It an E-reader?
Apple talked about the iPad being great for books, newspapers and magazines. I don’t know if you’ve ever tried reading an entire book off of a normal computer screen, versus something that uses electronic ink like Amazon’s Kindle. I have, and I failed each time. It simply hurts the eyes. I tried the Kindle app on my iPhone, and had the same problem. I will reserve official judgment until after it starts shipping and I get some reviews from normal folks, but my suspicion is that it’s not good for reading books.
Is It an iPhone Replacement?
I would say that if you already have an iPhone or iPod Touch, you won’t be replacing that with an iPad, if only for this reason: it doesn’t fit in your pocket. That means you can’t plug in some headphones and take it outside to go rake the leaves.
“That keyboard looks weird to type on.”
I agree. Especially in the preview video, when typing with both hands, it looks awkward. But then I remember that I had the same doubts when the iPhone was new. In fact, the software keyboard was, in my opinion, going to make or break the iPhone’s success. Then I taught myself to type on it, and it’s fine. I’m hoping that with the iPad, you’ll still be able to reach around with your thumbs and type that way. I’ve gotten pretty fast.
“What’s this about no multi-tasking?”
While I haven’t personally found much need to run simultaneous apps on my iPhone, I can understand the usefulness. Contrary to some reports you may have heard, you can listen to music while using other apps. That is unless Apple has grown more stupid since the success of the iPhone, because I can do that on my iPhone.
What It Does Well
To summarize, I think the iPad will be good for:
People who often carry clipboards
People who spend too much time on airplanes (because of the battery life)
People in the entertainment industry. It’s likely more effective to show off your demo reel on a tablet screen as opposed to a mobile phone screen.
Helpless early-adopters and interminable show-offs. (Not judging, I swear. I love you guys. You let me play with the shiny toys before I decide if I want to buy one.)
Another day, another recall. Normally, automobile recalls are not much of a problem. A recall usually involves bringing your car to a dealership, subjecting yourself up to some sales pitches, getting your car fixed, and driving home. Toyota’s recent string of recalls is more complicated because some of the problems do not have solutions yet.
If you own one of the many Toyota cars affected by one of the company’s recalls, you probably have already received a letter.
Here is what has happened so far:
November 2, 2009. Toyota/Lexus recalls recent models of the Camry, Avalon, Prius, Tacoma, Tundra, ES350, IS250 and IS350 due to a tendency for the floor mats to obstruct the accelerator pedal. This was a voluntary recall whose solution was simply to remove the driver’s side floor mat. Later that month, Toyota announced a solution to the problem that will require a visit to the dealer.
November 24, 2009. Toyota recalls 2000-2003 models of the Tundra due to the possibility of excessive corrosion on the frame rear cross-member caused by road salt.
January 21, 2010. Toyota issues a voluntary safety recall for recent models of the RAV4, Corolla, Matrix, Avalon, Camry, Highlander, Tundra, and Sequoia. This recall is to remedy another problem with the accelerator. In these cars, there may be a tendency for the accelerator pedal to stick, and this is not related to the floor mat problem. On Tuesday, January 26, after months of working with federal safety officials, Toyota decided to stop selling these cars until the problem has been fixed.
January 27, 2010. Last night, Toyota added to its initial recall pertaining to floor mats obstructing accelerator pedals. Added to the initial list are recent Highlanders, Corollas, Venzas, Matrixes and Pontiac Vibes. The Vibe shares design and construction with the Toyota Matrix.
According to the New York Times, sudden, uncontrolled acceleration in Toyota vehicles has caused 275 crashes and 18 deaths. Researchers have identified 2,274 incidents of sudden acceleration.
Over the past few months, Toyota has recalled 7.6 million cars. General Motors was quick to respond with an incentive for Toyota owners who want to get rid of their cars in favor of one of the American automaker’s vehicles.
Toyota has a strong reputation or being reliable, but these recent events inspire doubt. Here in the United States, shares of Toyota Motor Corp. (TM) have fallen 13% since January 19. If you believe that Toyota will recover, and if you have money you don’t mind losing while gambling in the stock market, it might be a good time to buy Toyota’s stock. I expect Toyota will recover and after some time, their reputation will remain mostly unharmed.
Update: I decided that if I should talk about buying TM, and if I think it’s a good idea for the long term, I should live up to my decision. I bought 10 shares of Toyota Motor Corp.’s ADR today.
Do you see the latest string of crises as an opportunity for investors?
Long gone is the optimism and the “gee-isn’t-this-great!” feeling. Now I just want my life back.
So we are seriously talking about replacing the second car. We’ve discussed:
what we will buy
how we will pay for it
paying off my car vs. saving for the new car
buying a “beater”
thinking up crazy alternatives (my son suggested Daddy could FLY to work!).
What we can’t change is that we need a car for my husband. He has a job that occasionally requires him to stay late or come in early. His income is our main source of income.
My car is the family car. We have four kids, so it had to be a minivan or a bulky SUV. We chose a minivan for fuel efficiency and safety.
I would discuss more about pros, cons, makes and models, beaters versus running your car into the ground, but I have to go make the house half decent so I can get up at 6:00 am to get everyone ready and out the door so my husband can be at work early.
What have your car buying experiences been like? Do you buy beaters or brand new and run it into the ground? Are you a fan of used cars, or do you think new cars are a better deal?
The American Council for an Energy-Efficient Economy (ACEEE) recently released an updated list of the twelve greenest cars of 2010. The council rates each car with a score, with higher scores going to those cars produce less pollution and are more fuel efficient, resulting in lower energy consumption and carbon dioxide emissions.
Here are the top twelve greenest cars of 2010.
Honda Civic GX automatic transmission, compressed natural gas
Ford Fusion Hybrid / Mercury Milan Hybrid automatic transmission
Toyota Yaris manual transmission
Nissan Altima Hybrid automatic transmission
Mini Cooper manual transmission
Chevrolet Cobalt XFE / Pontiac G5 XFE manual transmission
Hyundai Accent Blue manual transmission
Honda Fit automatic transmission
When shopping for a car, do you consider your effect to the environment? Most personal finance advice will guide someone to the best car for the available money or the car that is the least expensive to own. New, cleaner technology is often more expensive. Is being green a “luxury?”
I hardly use cash anymore. Almost every financial transaction I make as I go about my business is accomplished electronically or with plastic. Since putting to rest my cash-only experiment a year ago, I’ve only used cash in a couple of circumstances: food delivery when I’m too exhausted to cook, getting my clothing laundered or dry cleaned every few weeks, and supporting whatever issue for which my co-workers solicit (from Girl Scout cookies to bereavement gifts).
Hard money, coins and bills, are becoming obsolete. It will be a long time before cash ceases to exist in commerce, but physical money is less relevant for everyday commerce. Yet, the U.S. Mint continues to churn out billions of new coins each year. I’ve enjoyed collecting coins, hunting through change to find something rare or to fill holes in a book, but lately I’ve had much less of an opportunity to do so. I rarely have change in my pocket.
As I’ve mentioned before, the Mint (and Congress who has authorized this behavior) has gone overboard in their attempts to design coinage that has more value to collectors than it has to the general public. That will backfire; the mass quantities “collectible items” available make collecting them not a very special activity. Coin collecting will never again be the “hobby of kings.”
Rather than making an artistic design for a coin and letting it remain for a generation or two, the Mint presents programs like the State Quarters series. I thought this era was over; I didn’t realize until recently that the Mint intends to continue by releasing 56 more redesigns for the quarter, lasting until 2021.
The American the Beautiful Quarters series announced last year commemorates the establishment of national parks, forests and wildlife refuges. This is a worthy cause but I prefer Ken Burns’ documentary for drawing the public’s attention.
This is really about business. The Mint sells the coins to collectors at a significant mark-up from the face value of the coins, a mark-up that will most likely not be recovered by the collector.
There is some good news. The design for the reverse of the cent seems to indicate the Mint would like to return to a classical approach. I would prefer to see all “leader” portraits and buildings removed from coins to make way for more abstract or symbolic designs. The new union shield and ribbon is a step in the right direction.
This article is presented by Kelly Whalen, Consumerism Commentary staff writer. Kelly is celebrating her one-year blog anniversary this week.
Everyone loves a good deal, but finding time to comparison shop at various stores can be time consuming. As a parent of four kids I’m not keen on taking the kids to multiple stores just to save a few dollars, but I have found ways to save money using social media.
As I mentioned in my previous post, you can contact customer service via Twitter and often receive a quick response. It seems backwards that regular customer service isn’t as efficient and fast as social media service, but that’s the nature of social media — it’s quick.
Discounts on services. Did you know you can also contact your service providers to discuss billing issues, or getting a discounted rate? Comcast is a great example of customer service via social media (in this case Twitter) done right.
As part of my yearly financial checkup I go through each and every expense we have to see where we can cut back. I contacted Comcast via Twitter, and was able to secure a promotional rate on our internet service that reduces our bill by nearly $30 a month for a full year. That’s a savings of $360 from taking twenty seconds to send a tweet!
So far I haven’t heard stories of credit card companies lowering APRs on Twitter, so it’s better to go through executive customer service. That trend may change as more companies embrace Twitter.
You may also find people who are willing to do work for you for free or discounted rates. Whether you need a software developer, an assistant, or a staff writer ;) you can find people through Twitter who are willing to help.
Coupons, deals, giveaways, and freebies. Shopping via social media keeps getting easier and more fun. You can become a fan of products, services, and companies you use regularly on Facebook or follow them on Twitter. It benefits the company by allowing them to reach customers who are loyal, and it benefits you in many ways.
Here’s how following or “fan-ing” a company can work for you:
Discounts and coupon codes: You can follow CrocsOnline to get info on their deal of the day, win promotional codes, and win free shoes for example. Boutique hotel chains, clothing manufacturers, small businesses, and big corporations all offer savings to their followers.
Contests: Many companies also run contests on a regular basis. Some may use bloggers to run their contests while others will have guessing games like this example from Roger Smith Hotel in NYC. There are giving away a night in a hotel room every day at 11:00 am EST. Prizes can be as small as a sample pack or as large as hundreds of dollars in gift cards, or even vacations.
Giveaways: You can win giveaways by re-tweeting messages, participating in twitter chats, and by finding giveaways on blogs and websites searching the hashtag #giveaway. If you are following your brands on Facebook they will announce giveaways ahead of time so you can be prepared. It usually involves commenting or emailing the answer to a question.
New products: If you are a fan of a small business they may ask you to sample a new product so they can get feedback from people who are regular users of their products.
Many people I know scoff that they don’t have time for Twitter or Facebook, but using social media as a tool to connect with your favorite companies is a great way to save money.
Have you ever used social media to get a discount, coupon, or enter a giveaway?
Mitch: if i get 2010 home and business, should i do a “year end copy” first? I have never done that and have been using Quicken since 2004. on Quicken 2010 Available Now
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According to the New York Times, sudden, uncontrolled acceleration in Toyota vehicles has caused 275 crashes and 18 deaths. Researchers have identified 2,274 incidents of sudden acceleration.
Rather than making an artistic design for a coin and letting it remain for a generation or two, the Mint presents programs like the State Quarters series. I thought this era was over; I didn’t realize until recently that the Mint intends to continue by releasing 56 more redesigns for the quarter, lasting until 2021.
