This Week In Your Wallet – May 17, 2011
Before I dispense with the money news this week – and I have a few important things to share with you – I want to tell you that if you’re ever sent an invitation to your 25th college reunion, you should go. Go! That’s what I did this past weekend and I am so glad I did. Reconnecting with old friends, particularly in this crazy world, made me incredibly happy. It’s remarkable to hear about the roads various classmates traveled – and comforting to realize how little they have changed.
The other thing I want to tell you is that when you have a child who is suddenly old enough to drive, you should make sure that child pays for his or her own gas. That’s what we’re doing – and I have never seen anyone as upset over gas prices as my 16-year-old. This one line item, more than any of the other financial responsibilities we’ve put on his plate – the movies with his friends, the fatheads for his wall — has made an impact. He wants to work more. He wants to save more. And not only does he want to do those things, he is. My point: We learn how to be fiscally responsible when we have a reason to be fiscally responsible. So give your kids a reason. Now to the news.
Debit Card 411
I wrote recently about the Sony data breach. This week brings another. Thieves stole debit card information from Michaels Stores in 20 states. But the reports, according to SmartMoney magazine, note that this time the problem went further – the thieves stole money from consumer’s accounts. According to the SmartMoney story, “Year-to-date, debit and credit cards make up 20% of all consumer data breaches, up from 11% during the same period last year, according to the Identity Theft Resource Center.” And unfortunately, debit card protection doesn’t always measure up to credit card protection. If you report the loss of the card lost or stolen before it’s used, you won’t be held responsible for any money that’s withdrawn. But if you don’t? You could be held liable for some or all of the charges. And even if you’re not liable, it could take time and hassle to get your money back.
So what do you do? Be vigilant. I assume you bank online – most people do. Make sure you’re monitoring your accounts on a daily (or at least every other day) basis and if you see something, as the New York City subway ad goes, say something. And if your card is stolen and used, SmartMoney says to file a police report, which may be necessary as you apply for reimbursement from the bank.
Gas Saving Solutions
Now the reports say that gas prices may actually go down in the coming weeks. To that I say, we’ll see. Until then, the folks at the New York Times Travel Section recently published a helpful list of things you can do to save some money on this inflated necessity. Among the suggestions:
- Use a gas app. These tools, available for your iPhone and Droid, help you locate the closest, cheapest gas. GasBuddy.com tops the list.
- Add a traffic app. Idling is a gas guzzling activity. So is just hanging on a stalled parkway. Google Maps not only tells you how to get where you’re going, but helps you find the least congested routes. And, says the Times, “Google Maps Navigation, offered through Google Maps for Android, has recently been updated to offer alternate routes to avoid tie-ups.”
- Plus a gas rewards credit card. Every little bit helps so think about a credit card that will give you a few percentage points back for all the money you spend filling up your car. Examples include the Discover Open Road (2% back on the first $250 in gas and restaurant purchases each billing period) and Capital One’s No Hassle Cash Rewards (2% back on what you buy at gas stations and major grocery stores.)
- Use premium only if you need it. There are some cars that truly need premium. There are other people who put premium in their cars just because they think it will make them run better. Wrong! If it’s not called for it’s a waste of money – and a bigger waste now than it was before.
Finally, A Few Words On Optimism
Recently on the website of the Harvard Business Review, motivational psychologist Heidi Grant Halvorson, author of Succeed: How We Can Reach Our Goals, wrote a blog post titled, “Be An Optimist Without Being A Fool.” In it she questioned the idea that optimism is the only essential ingredient for getting where you want to go.
She writes: “Believing that the road to success will be rocky leads to greater success because it forces you to take action. People who are confident that they will succeed, and equally confident that success won’t come easily, put in more effort, plan how they’ll deal with problems before they arise, and persist longer in the face of difficulty. Unrealistic optimists are only too happy to tell you that you are “being negative” when you dare to express concerns, harbor reservations, or dwell too long on obstacles that stand in the way of your goal. In truth, this kind of thinking is a necessary step in any successful endeavor, and it is not at all antithetical to confident optimism. Focusing only on what we want, to the exclusion of everything else, is just the kind of naïve and reckless thinking that has landed industry leaders (and at times entire industries) in hot water.”
It reminded me of the difference between 8s and 10s. When I wrote my book, The Difference, I took a look at where the line between optimism that helps you succeed and optimism that holds you back was drawn. Turns out, it’s drawn at 8. People who rate their happiness and optimism as 8 out of 10 have a healthy skepticism. They believe things can go wrong as they work to make them as right as possible. In the best financial example, 8s are more likely to have emergency cushions because they’re likely to believe there might, someday, be an emergency. The 10s as less likely to save for the what-ifs because they believe everything will be just fine.
So what do you do if you’re not an 8? If you’re a 9 or 10, do something that challenges you. The tried and true makes us feel bored and tired. And if you’re not happy enough, prioritize doing things rather than acquiring them. Spending money on experiences makes us feel better than spending money on things. Things tend to get a little old and dusty and tarnished. Experiences, especially if you embellish, get better every time you talk about them.
Have a good week!
Jean
