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How much time do you spend in front of the television, socializing with friends, or watching movies? I freely admit that I spend too much time watching television. There are certain television programs that entertain me, and particularly during stressful times in my life, I need some type of outlet that makes me laugh, raising my spirits. As a single man living alone, I don’t have the opportunity right now to unwind at the end of the day by spending time with family.

This is, of course, an excuse or a rationalization of why I don’t just spend more time working. A new study, wherein the researchers’ intent was to reevaluate whether the consumption gap between the wealthy and the poor grew alongside the income gap between 1980 and 2010, also has indicated a correlation between education level and leisure time. The authors of the study then make the connection from education level to wealth, when asked by the Wall Street Journal.

Low-educated men saw their leisure hours grow to 39.1 hours in 2003-2007, from 36.6 hours in 1985. Highly-educated men saw their leisure hours shrink to 33.2 hours from 34.4 hours… Low-educated women saw their leisure time grow to 35.2 hours a week from 35 hours. High-educated women saw their leisure time decrease to 30.3 hours from 32.2 hours. Educated women, in other words, had the largest decline in leisure time of the four groups.

Movie marqueeThe higher a person’s level of education, the less time they spend on leisure activities like watching television, going out to see movies in a theater, socializing with friends, talking on the phone, and playing games. The study authors content that as unemployment has grown at a higher rate for lower-education individuals, that factor has contributed to about half of the change in leisure time for that segment of the sample.

How do we get from a measurement of education to a measurement of wealth? The study authors contend that education is a proxy for wealth, as level of education tends to correspond with income. There are probably some pieces missing in this leap from education to wealth in general, but if nothing else, a higher education opens more opportunities for traditional methods of earning income. (There are always counter-examples, with Ivy League dropouts forming companies that go onto being worth many billions of dollars, but that is exceedingly rare.)

No one is pointing to a causality — that working more and spending less time on leisure activities alone — will result in an increase of income. But if there is a correlation, it makes sense. There is, however, a perception that those at the top of the corporate ladder, earning more money, do not “work harder” than rank-and-file employees. On the job, employees during the grunt work may work just as hard or harder as an executive whose primary function seems to be attending meetings and farming out work to his or her underlings while consolidating reports and presenting reports to the Board of Directors, for example. This study doesn’t look at how hard one works at the workplace, but at how much leisure time is used outside of the office.

There is a message: get to work. Those with higher incomes spend less time on activities outside the office that aren’t productive. Family time is excluded, of course. Highly-educated individuals (who we’re assuming are also earning higher incomes) are more likely to spend time at home cooking and caring for children.

Do rich people work harder? Can less time wasted on leisure activities like watching television translate to higher income?

Photo: angeloangelo
Wall Street Journal, National Bureau of Economic Research

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If you’ve ever browsed through the television guide, you might have seen that there are a good number of television shows dedicated to the real estate industry. House Hunters International, Million Dollar Listing, Extreme Makeover: Home Edition, and Real Estate Intervention are just a few of the cable or network television shows designed to allow the real estate industry and home improvement companies advertise and reach a wide audience of consumers.

Just looking in my own town, with recently-built single-family homes typically asking $700,000 and above, it makes me wonder how anyone can afford to live where I do. The entire town can’t consist of upper-level executives and business owners who comfortably earn $350,000 a year, can it? One town over, house prices typically range from $1 million to $2 million, but there’s no upper limit. This is clearly a location for well-off individuals. And considering I may be looking to settle down and buy real estate, I’ve been trying to get an understanding of local real estate forces.

BasketballBut celebrities — the top echelon of movie stars and athletes — are in their own class.

Michael Jordan is selling his 56,000 square-foot home, asking $29 million for the house in a suburb of Chicago. The house features an indoor basketball court with its own parking lot and access and a wine and cigar room.

Jerry Seinfeld is offering up his Colorado mansion for $18.25 million. His property is much smaller than Michael Jordan’s at only 14,200 square feet. The property sits on 26 acres, while Jordans’ only includes 7 acres of land. Compare this to my apartment, which is around 1,300 square feet. This is only one of the television star’s vacation properties, with 11 bedrooms and a spa.

Rapper 50 Cent has had his Connecticut mansion on the market since 2008, when the recession was in full swing. His original asking price of $19 million has dropped to $10 million, still higher than the amount he paid to buy the property from Mike Tyson’s ex-wife, $4.1 million.

Celebrities live in a different world, where dropping millions of dollars on a property is commonplace.

Photo: John-Morgan
CNN

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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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Cash back credit cards can help consumers practice responsible spending while earning a little extra for their efforts when used properly. It wasn’t long ago that the best cash back credit cards were offering rewards as high as 5% for all purchases, but that is unfortunately no longer the case.

Today’s cash back credit cards are all similar in nature, generally offering 1% cash back on all purchases. However, if you look hard enough, you’ll find a number of credit cards with higher cash rebates than just 1%. This article lists the best cash back credit cards you can find today, and I update the article when there is new information to share. Along with a brief description of each of the best cards, I have included the cash back percentages and any tiers or restrictions, so there are no surprises if your cash back credit card isn’t earning as much as you first thought. Keep in mind that in order to make credit card with rewards programs worthwhile, you must avoid interest charges and late fees by paying your bill on time and in full every single month.

Editor’s choice

Blue Cash Everyday(SM) from American ExpressBlue Cash Everyday℠ from American Express. Of all the cash back cards available, this offers the possibility of earning maximum rewards. The Blue Cash Everyday℠ from American Express Card offers $100 cash back bonus after spending $1,000 in eligible purchases in the first three months as well as 3% cash back on supermarket purchases, 2% cash back on gas and department store purchases and 1% cash back on everything else. This card is a new version of the standard Blue Cash Card and it even offers a $25 referral bonus. Blue Cash Everyday℠ from American Express also includes a 0% introductory offer on purchases for 12 months and carries no annual fee.

Because there are no limits to the cash back rewards and no need to track rotating categories, the Blue Cash Everyday credit card from American Express is the top pick as your “workhouse” cash back card. If you make your regular household purchases on this card, you should be able to get substantial cash back over the course of the year.

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She Spends Less Than She Earns: Zooey Deschanel

by Flexo
Zooey Deschanel

It’s not often that a young, female star of music, movie, and television can avoid financial scrutiny. Tales of financial woe tend to be much juicier, anyway. It’s not difficult to remember the Britney Spears train wreck. She couldn’t handle earning more than $700,000 a month. At least her antics kept her in the news. ... Continue reading this article…

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The Worst Celebrity Tax Problems

by Flexo

It’s with a tinge of schadenfreude that people are fascinated with the failures and foibles of famous celebrities. Every year, the IRS chases people who evade or underpay federal income tax, and actors and popular figures in the media, who often don’t manage their own finances, make the news. The latest is Lindsay Lohan. You ... Continue reading this article…

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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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Discover More Card $150 Limited Time Cash Back Bonus

by Flexo

The Discover More Card has been around for quite some time. If you’ve seen a competitor’s commercials on television mentioning the “biggest cash back credit card,” you might be surprised to learn that the commercial is referring to this card. To grow the number of customers, Discover has launched different versions of Discover More over ... Continue reading this article…

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