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I was torn when Amazon.com, the online-only retailer for books, music, and movies, became popular. I liked the convenience, but it was clear that local brick-and-mortar bookstores would have difficulty competing with Amazon’s prices in the long term. I was swayed enough to the side against Amazon when I participated in a boycott of the company when they filed for a patent for the 1-Click ordering system.

Over the years, though, I’ve come to accept Amazon.com as a part of my life as a consumer, and I shop using Amazon.com for more than just books, music, and movies. I gave into my desire for speedy delivery and joined Amazon.com Prime, as well.

BooksAmazon.com’s aggressively competitive tactics has extended recently to book publishing. With a book publishing arm, Amazon.com has the right to sell its own published books exclusively. With the new tools Amazon.com is offering authors, traditional publishers are having a hard time competing.

This week, I saw that Amazon.com is planning to open a physical, brick-and-mortar store in Seattle. It could be the first step to bring storefronts to more locations throughout the country, but that depends on the results of this one Seattle location. The purpose doesn’t seem to be to keep an inventory of books, movies, and other media on hand to sell, but to focus on Amazon.com’s own electronics, like the Kindle.

I was recently reminded of why I was wary about Amazon.com in the first place. I’ve seen what has happened to local book stores, some of which have gone out of business, and what has happened to Borders, with large, empty stores left in the wake. There are several local book stores that remain, but I can’t say whether the stores are thriving and predict how long they’ll last. I spoke with a book-lover who was mortified that I rarely shop in independent book stores and that Amazon.com is changing the landscape for consumers and hurting small business owners.

If Amazon.com extends its new store front model beyond one location in Seattle, the primary competitive target seems to be Apple, not local book stores. Yet, if the e-book, and particularly Amazon.com’s proprietary version of the e-book, becomes the preferred method of reading for more consumers, and these e-books could be purchased only from Amazon.com, local bookstores will be in danger.

What will a book store look like in the future? Will locally-owned book stores continue to exist as viable businesses?

Photo: shutterhacks
O’Reilly, The Globe and Mail, New York Times

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When politicians are campaigning, some try to reinforce the idea that they are similar to most Americans. Candidates for President of the United States try to avoid being labeled as elitist, because some sort of connection and kinship with their constituency is important for winning the favor of voters who aren’t already entrenched with a Democrat or Republican ideology.

Of course, the attempt to be viewed as an “average American” is nothing more than marketing and public relations. In order to find one’s way into the political arena at that level, you need to carry something that sets you aside from most Americans. And while money doesn’t guarantee a victory, it doesn’t hurt.

CNN has reported the net worth and income of the Republican presidential candidates as well as President Obama to see how they compare with each other. Like most Americans, they generally have wealth tied into their homes, but their investments, and in some cases, major liabilities and use of blind trusts, show that this crew lives in a world unfamiliar to most Americans.

Mitt RomneyMitt Romney’s net worth is between $85 million and $264 million. This is a wide range; with lenient reporting requirements, it’s difficult to be specific. He earns most from dividends and interest on his investments as well as from speaking engagements. Romney includes horses and gold among his investments. According to the Federal Election Commission, Mitt Romney has raised $32 million for his campaign as of September 2011 (the latest data).

Jon Huntsman’s net worth is between $16 million and $72 million. CNN points out that Huntsman’s father is one of the richest men in the world, as has donated more than $1 billion to universities and medical research. Huntsman has raised $4.5 million for his campaign as of September 2011.

Newt Gingrich’s net worth is between $7 million and $31 million. Last year, Gingrich earned $2.4 million from his own company, Gingrich Productions, and most of his assets are tied to this company. He also has listed up to $1 million in liabilities in the form of a line of credit with Tiffany and Co. Gingrich has raised $2.9 million for his campaign as of September 2011.

Barack Obama’s net worth is between $2.8 million and $11.8 million. Thanks to sales of his books, Obama can count himself among the richest politicians. He also earns a $400,000 salary as President. Obama has raised $88 million for his re-election campaign as of September 2011.

Ron Paul’s net worth is between $2.4 million and $5.4 million. This includes a five-year personal bank loan of up to $500,000. As a fan of gold, Paul has major investments in companies involved with gold and silver mining. Paul has raised almost $13 million for his campaign as of September 2011.

Rick Santorum’s net worth is between $1 million and $3 million. Santorum’s wealth is in rental real estate properties. He also has mortgages comprising debt of up to $750,000 on properties with a value of up to $1.25 million. He earned $1.3 million from January to August 2010 as a contributor on Fox News and from the Ethics and Public Policy Center think tank. Santorum raised $1.3 million for his campaign as of September 2011.

Rick Perry’s net worth is between $1 million and $2.5 million. The “poorest” of all presidential candidates, Perry receives a $133,000 salary as the governor of Texas. He has a diversified portfolio of stock investments. Perry raised $17 million for his campaign as of September 2011.

Should the individual who represents the United States of America domestically and globally be a reflection of American society? Does wealth tie into that equation?

Photo: Maassive
CNN, Federal Election Commission

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As Ron Lieber reported in the New York Times, personal finance guru Suze Orman is launching her own debit card brand, the Approved Card, following in the footsteps of music mogul Russell Simmons and his Rush Cards. Suze Orman’s debit card will be a prepaid debit card, ensuring customers using the card can spend generally only what they have available.

As a benefit to customers, and in keeping with Suze Orman’s focus on helping consumers build stable credit histories, the card will offer unlimited, free credit reports. She also worked out a deal with Transunion whereby her branded debit card, unlike most other debit cards, will report consumer spending information to the bureau, theoretically helping customers build credit.

Suze OrmanWhile a consumer’s ability to use debit card spending as a way to build credit, I can understand why the reporting agencies don’t normally consider debit card activity to be relevant to a credit score. With a debit card, you can pay only what you have in the bank, or in the case of a prepaid debit card, only what you have on deposit. Debit cards do not provide a consumer with the opportunity to be tested with credit, and there is no monthly bill to pay. The type of behavior required to use a debit card successfully does not equate with the behavior required when borrowing money.

Prepaid debit cards are notorious for their fees. Suze has pledged to keep the Approved Card’s fees low, but the card still features a $3 monthly fee, taken from the balance deposited on the card. Prepaid debit card fees are paid by consumers who have no interest in a traditional checking account held at a bank, or, for whatever reason, can’t qualify for a bank account. This unbanked population consists primarily of households in the lowest socioeconomic status and of minorities. This puts these products in the same category as payday loans and check cashing outfits. Services the middle class doesn’t need or can find for free are more expensive in less affluent communities.

While the fees for Suze’s product may be less than those for competing products, there could be a view that this product, just like others like it, takes advantage of consumers who have fewer options for payment options. View the fee schedule here; there are quite a few fees that most consumers who haven’t used prepaid debit cards might consider extraordinary.

Does Suze risk credibility by offering her own financial product? She has established her Suze Orman brand as a no-nonsense voice in helping people make smarter financial decisions. Her television and radio shows have attracted a wide audience, particularly through the recent recession. She has been a spokesperson for General Motors and TD Ameritrade, aiding the executives of those companies in associating their brands with wise personal finance decisions.

While the New York Times article indicates that Suze will not mention her Approved Card in her shows to avoid a conflict of interest, isn’t in reasonable to expect that every time she mentions prepaid debit cards, she could be creating or strengthening a cognitive link in the listener or reader between her advice and her own product?

On the other hand, Suze sells books, seminars, and kits, and her media appearances help to move her products and, eventually, generate some of the income she receives each year. (I would assume that most of her income comes from sponsorship, show production, and media appearances rather than from her products.) A prepaid debit card is not really much different from the other products she sells. Diversifying income streams is a great way to increase the probability of long-term success.

What do you think about Suze Orman’s new Approved Card and the potential conflict of interest arising from her public appearances and media presence?

Update: As news spread of the Approved Card throughout the blogosphere, the card’s terms and likely ineffectiveness in improving users’ credit scores led to outrage. Suze Orman responded to critics via Twitter by calling them idiots and ignorant. Critics of the card were mostly fair — at least they were level-headed and, for the most part, they avoided personal attacks on Suze — but it’s easy for privileged bloggers like us to misunderstand the needs of those in low socio-economic communities, where the banking industry is mistrusted more than middle class “Main Street” communities mistrust Wall Street.

Yes, as I’ve mentioned above, there is something about fee-ridden prepaid debit cards that enables investors and the wealthy to take advantage of people who either don’t or believe they don’t have better financial options. There is also a cost to businesses who take on risks by offering services to a segment of society that may have financial trouble, and fees help defray that risk. Compared to other prepaid debit cards, the Approved Card isn’t horrible. It certainly isn’t the worst. If Suze’s name weren’t attached to the product, bloggers might put the card towards the top of the list of best prepaid debit cards. But her public identity and crusade for positive financial education makes the product antithetical.

At the same time, it’s not much different than the seminars that most of the top financial gurus run, charging tons of money with promises to help people earn more money, get rich through real estate, or sell a multi-level marketing scheme. The business is in the selling, and convincing the most vulnerable people that you are there to help them (for a price). Not that that’s good, at all — it’s just expected.

Photo: david_shankbone
New York Times

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How to Love Cooking

This article was written by in Frugality. 44 comments.

This is a guest post by Forest from Frugal Zeitgeist. Forest writes about frugality, finance, minimalism and lifestyle. In this article, Forest shares his experiences in the kitchen. Cooking great meals is a great way to save money and stay healthy, but it’s a skill that I haven’t developed for myself. Passion can boost motivation, though, and this article might help me find that passion about preparing meals.

When Flexo wrote about alternative financial resolutions he mentioned the idea of cooking more often at home. Cooking at home is often described as a way to save money. It will do that if you replace your dining-out habit, but it does much more than just improve your finances. Cooking can quickly become an enjoyable hobby, and when you get into the groove you can even use it to impress your friends. The health aspects cannot be overlooked, either. Replacing processed foods and restaurant foods with home-cooked versions, where you know the ingredients, will affect you and your family’s diet in a positive way.

But you can’t just expect to fire up the stove and produce an award-winning dish. Learning to cook takes time and patience. You will fail, and you will find that at times cooking isn’t as economical as you originally thought it would be. Investing in a stock of spices and speciality ingredients can quickly blow a shopping budget!

In this post I want to share my journey into the wonderful world of cooking at home and then hopefully convince you to make it a regular activity and a beloved hobby.

How I found my passion in cooking

ToastI never learned to cook anything as a kid. My kitchen wizardry stopped at being able to “cook” a perfect slice of toast and heat an egg in hot oil. Sometimes I would experiment, but I’ll skip the tales of my candy-bar sandwich and curry hot chocolate. When I moved out of my parents’ home at the age of seventeen, I sucked at cooking.

Luckily I had a corner store within twenty seconds of my house. I became a wiz at putting plastic-wrapped steak bakes and hamburgers into the microwave, and later I even progressed to turning on the oven to warm up a frozen pizza. Breakfast cereal was a favorite dinner of mine too. Cheerios for dinner! Yum!

This went on for quite some time. When I turned eighteen and started to throw regular pints of beer into the mix, my belly decided to grow big and round. Through the age of twenty, not much changed apart from my pants size.

Weight is easy to put on and reasonably easy to fix, but the bad habits had been affecting another aspect of my life, something not immediately apparent to most around me. As my belly grew, so did my overdraft. My money situation wasn’t going too well.

In addressing the cash flow problem, I knew I had to make all sorts of cut-backs. It wasn’t exactly a secret to me that my processed food habit was costing me a lot of money and I decided to tackle it by learning how to cook at home. This was also around the same time that I became vegetarian, which seriously reduced the selection of ready-made foods I could purchase at the corner store.

One of my first trips to the supermarket after the decision involved me stocking up on spaghetti, cans of tomatoes, dried basil, salt, pepper and lots of fruit.

I remember throwing myself head first into cooking, just like the way I refused to read instructions when I got a Transformer for Christmas. I didn’t read any cookery books.

For one of my first home cooked meals, I threw a few cans of tomatoes into a large wok with a little oil. I tossed in a load of basil, a little salt and let it simmer for quite a few hours. The result was better than you may think for a first attempt, and although the work was minimal, I enjoyed throwing some stuff in a pot and coming out with an edible meal. I was intrigued enough to learn more.

I continued to develop my “tomatoes and stuff in wok” speciality and would try adding different veggies and herbs. One important thing I did do was learn the basics. This included cooking eggs in their various forms, the basics about herbs, simple stir fry, fried rice, stews and chilis. Occasionally I would follow a recipe.

The big change for me came when I quit my job and moved from England to Canada. I found food to be even more expensive in Canada, and my budget was very thin. I had left behind a high-paying job in London and was now washing dishes in a pub kitchen. Of course being around cooking all day was part of my inspiration, but working out how the hell to feed myself on minimum wage was the real kick in the butt.

I started to buy a lot of raw ingredients and had moved in with my girlfriend. A student and a kitchen boy needed some entertainment and that was where Manjula came in! We enjoyed making dinner together, even though it was stir fry most nights. Cooking with your family and friends can be a lot of fun and a motivation to push yourself forward. We both enjoyed curry so we learned how to cook it properly. I started to search for recipes online, and I discovered Manjula’s Kitchen on Youtube. Manjula cooks a lot of great Indian dishes and her lackluster commentary creates a homey, “I can do this” vibe that I found quite warming. After my first Manjula curry I was hooked.

I was being reeled into this cooking thing.

When you make that great meal, something you never thought you could make, it’s like you finally get it. Cooking can be drudgery, especially when you have to cook for many and you just don’t enjoy it. I look at it like painting. Painting a house is boring as hell, and the outcome is nice, but nothing special. Paint a picture and you enjoy the whole process and the outcome immensely. If you approach cooking like painting a picture you’ll enjoy it very much.

TortillasNext up for me was my other favorite food, bread. I had a drunken conversation with a Mexican lady who convinced me tortillas were just flour and water cooked in a flat pan. I had flour and water at home so a day or so later I mashed them together into a dough, rolled them into tortilla-shaped discs using a Snapple bottle, and fried them in a hot pan. Like my very first tomato experiment, it worked again — not perfect, but within reach of being able to be called bread!

This put me on a bread kick and I turned to the internet for a real loaf. The first recipe I ever used is one I still use today, and variations on the dough are easy to experiment with. There is something calming about kneading dough and something very satisfying about eating it hot out of the oven.

Where I am today?

I cook almost every day. Cooking is a hobby and something I do almost without thinking. I’ll happily tackle any kind of cusine and challenge myself to new recipes on a regular basis. I’m not afraid to pick up something I have never seen before and experiment with it. I still make a lot of mistakes but that is half of the fun.

Along with my confidence, my knowledge of food sourcing and nutrition has increased. I try to buy in-season foods and balance my diet with meals that contain the right amount of carbs, proteins, good fats and all of that stuff.

I absolutely adore cooking. Food is something we all need, but good food is something we all love. The smugness and satisfaction from being able to match meals at your favorite restaurants is unbelievable. Cooking isn’t an art or skill that only a few people have, it can be learned. If you keep at it, you will learn. You’ll want to share your new-found love with friends, and they’ll get the bug too.

Tips to start cooking

Starting off any new endeavor that you hope to grow into a hobby can be tough work. If things don’t work out the first time, it is easy to give up. Often, fear of failure, poor early results and lack of time push people back to TV dinners and prepared meals. Like any feat you want to achieve, you need to go in knowing that you will fail, you will make terrible food, and your journey from a person who reads recipes to a full-fledged cook will not be linear.

Making failure part of the learning process will guard your self-esteem enough to help you get through the rough patches. Set goals and make time for cooking. Instead of going to the pub, stay home and follow a recipe, bake a cake for the family, or go shopping for a cook book.

I would suggest you set goals centered around being able to cook your favorite meal or a favorite meal for your family, learning to cook a few dishes of a certain cuisine, or replacing a regular store-bought item with a homemade alternative. The goal should be something that matters to you and keeps you focused. A solid option is baking bread that is better than the store variety. It’s not easy but a skill that is a lot fun — and messy — to learn.

As your cooking progresses something will happen. Your lack of confidence will subside and you’ll fall into the groove I mentioned earlier. For me, indicators of this were being able to add ingredients without measurement and being able to open anyone’s pantry and put together a meal without a recipe book. At this stage, you won’t be a master chef, but you’ll be competent and confident enough to take on any recipe.

Experimentation is very important and is key to discovering the joy of cooking. If you think chocolate and chili pepper would be good on pork, try it. If you are bored at home, just grab some random ingredients and see what you can cook up.

Make cooking social

Keeping cooking a lonseome pursuit could stop it from progressing into a full-fledged hobby, so it’s important to share. Sharing the cooking and eating experience with friends and family is one of the best parts.

I remember baking cakes as a young kid with my grandma, and I think baking and cooking with kids is a great learning tool. I wish cooking with my parents had been a part of my whole life. Cooking with your partner also brings in a new intimacy to a relationship and shares a responsibility that is often left to one person, most often the woman.

Expanding beyond family, it’s great to host potluck meals or host a dinner party on rotation. Friends of mine set up a little club where four couples set four Saturday nights aside. Each Saturday night, the eight people would all visit one house, and the hosts would cook a three-course meal. The result was that it pushed everyone in that group to try to up their cooking game, and it was somewhat competitive. The dinner parties were successful enough that they have all improved their cooking skills.

Get started

AsparagusI hope I have you convinced to give it a try and I hope you have overcome any apprehension. You may not even enjoy cooking at first, but you’ll enjoy the challenge. Here are some tips to help you get started. Please come back to let us know how it went.

  • Cook a basic flat bread that can be used for lunches, side dishes and more.
  • Bake a real loaf of bread. This is the very first basic bread recipe I ever used, and it’s good.
  • Find an online video recipe for your favorite restaurant meal and try to make it.
  • Use the ingredients in your pantry and create a random meal. It doesn’t matter if it turns out bad, just mess around!
  • Try another favorite dish or two from another part of the world.
  • Invite a friend over for dinner and you cook. They can bring the wine.

Good luck with your new money-saving, healthy hobby.

Please don’t hesitate to ask any questions, or ask for any resources, ideas or anything that comes to mind. If you love cooking, what inspired you to start?

Photos: John McClumpha, jeffreyw, woodleywonderworks

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12 Alternative Financial Resolutions for 2012

by Flexo
New year hat

New Year’s resolutions have become so cliché that the process of making them has become a joke. People settle for mundane goals for the year like “losing weight,” “quitting smoking,” and “getting out of debt.” These are great goals, of course, but most who think about these only when the calendar changes soon forget their ... Continue reading this article…

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The Power of Customer Outrage

by Flexo

In what almost seemed like a staged publicity stunt, Verizon Wireless quickly rescinded their plans for a new $2 fee for most bill payment options. An employee leaked an internal memo describing the new fee, and within twenty-four hours, the wireless company both confirmed and then rescinded the fee, citing their policy of listening to ... Continue reading this article…

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Money Planners Can Help You Take Control of Your Finances

by Flexo
Kimberly Palmer's Money Planner

Having ready many books about personal finance and money management over the last decade, I recognize most new books as offering nothing particularly new to readers. Some of the world’s favorite money gurus rehash the same ideas repeatedly, some on a predictable yearly release schedule, and these books become best-sellers due to the names attached. ... Continue reading this article…

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New Year’s Resolutions Help Even If You Don’t Keep Them

by Flexo

As the year draws to a close, I plan to take some time to evaluate the progression of my life, including my finances, against my goals and resolutions for 2011. I reached some goals while missing others. There are many reasons people don’t keep new year’s resolutions, and I’m not any different. In one recent ... Continue reading this article…

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