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Note to Self: Truth Wins

May 21st, 2010 by Sara
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What does business recovery and homeowner foreclosure have to do with Will Smith?

I just watched a video clips segments of interviews with Will Smith talking about success. He’s talking about more than his career — he’s talking about the idea of success just walking around in the world as a person. “You have to be willing to die for the truth,” he said. Which he defined as knowing yourself and acting in a way that doesn’t betray that, even when it’s hard, when you look ridiculous, and when it goes counter to everything else everybody wants.

I just wrote a story about “new rules” businesses have to follow to thrive now, and the gist is that if you make what you’re about and what your customers want your constant focus, you’ll win. This is not new, of course. And as a corollary to personal truth, it’s just as consistently hard to do. With the rate of change today, it means that your business may well be constantly changing as products and services quickly become obsolete. If you make the best pizza in town, and you love doing it, and suddenly the FDA declares that combining tomato sauce and mozzarella is more deadly than huffing high fructose corn syrup, how quickly could you start making tofu salad?

What makes it really hard is that your two rules may not save you. Meanwhile, the guy down the street who wouldn’t care if he served up arsenic slaw, so long as it lines his pockets, is doing just fine. It starts to look like there’s a different way — that other things matter more. And this idea catches on and grows, until we get good and lost. But when everything finally collapses, those who managed to hold onto what mattered will go on. They still have the most important thing. Call it integrity, or reputation, or the soul, or your gut. No matter, it is truth.

In homeowner foreclosure news, a study says that the highest number of homes in foreclosure were those of well-educated, affluent overreachers, a group they called Gen X “Cash & Careers.” Ouch. Granite counter tops, in other words, were more to blame for the foreclosure crisis than predatory lending. Because they thought things were different, that they could somehow get more than they could afford, they weren’t willing to look at the truth.

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Not Upgrading? Spamtastic!

April 19th, 2010 by Sara
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I typed today’s post from my IBM Selectric and then ran down to file it at Western Union, or so it feels. The new computer arrives this week, and it can’t come soon enough. Ding!

Cushunk.

The breaking news is that apparently, when your computer no longer has any room to install software upgrades, it leaves one more vulnerable to hackers. Say, for instance, someone hijacking your email account in order to promote some drug — Viagra, I think it’s called. Maybe you’ve heard of it? Ding!

Cushunk.

To those inquiring about my new side gig, I can only say that you didn’t hear it from me. Ding!

Cushunk.

If I decide to pursue the opportunity further, you can bet I’ll let you in on it.

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Debt, Redux

April 15th, 2010 by Sara
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I’m dismayed to report that because of taxes, we aren’t going to be paying off big chunks of our credit card debt like we had planned. At least, not as quickly. I made more money than usual last year, so we set aside extra for taxes. (We, here, is really my husband, the brains of the operation.) We were very close, but still had to pay in. The real bitch, though, is not what we owed today, April 15th, but how much more we have to set aside for quarterly payments this year because my income went up — an amount that shoves aside other expenditures, or savings, or both. Meanwhile, we’ve got at least one big purchase that looks like it can no longer be put off — replacing a computer that is getting increasingly flaky. The silver lining is that I’ll probably have a more average year this year, and we’ll get a refund next. And as Ramit don’t-hate-me-because-I’m-beautiful Sethi points out, in the real world, that’s a very good thing.

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How ‘No’ Can You Go? The Impact of Wealth on Happiness

April 2nd, 2010 by Sara
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Everyone is about as happy as they make up their minds to be. Except it matters very much where your mind happens to live.

Several weeks after reading this review and summary of new and old happiness research, I keep coming back to it. Two new policy books the article mentions argue that Gross Domestic Product (G.D.P.) as a measure of a country’s progress doesn’t correlate with its people’s happiness, based on numerous studies. In fact, poorer countries were as happy or even happier than wealthier ones, and despite decades of exponential growth here, Americans are as happy as we were back in the ‘50s. Therefore, the authors argue, governments should discard or at least weigh G.D.P. against other factors, and consider implementing policies that would raise overall levels of happiness, such as better protections for losing a job, better attention to mental health, and more outdoor play spaces.

If we consider what is not counted as production in calculating G.D.P., maybe we get our macro answer on the connection between wealth and happiness:

“Thus excluded are services provided by people to members of their own families free of charge, such as child rearing, meal preparation, cleaning, transportation, entertainment of family members, emotional support, care of the elderly.”

People in countries with low G.D.P. spend most of their time in this realm, the same one — at least in terms of being with family, cooking, and caring for each other — that even the wealthiest claim makes them happiest. Their choices for the focus of their time, efforts and resources — which also happen to be the ones that lead to happiness — are dictated by the societies in which they live.

In “The Late Homecomer,” a fantastic memoir on the Hmong immigration experience by local writer Kao Kalia Yang, Yang’s family is forced by war from the mountains of Laos. In St. Paul, of course, they can no longer work in gardens with babies strapped to their backs. Her parents take midnight shifts in factories, and the older  children raise the babies after school. They scrabble for years in poverty to make it to the next rungs, and the next, of middle class life. Over and over again, they say how lucky they are to be here. Lucky, yes, but happy, Yang observes, no.

We are familiar with the story of the upward climb — adapting up. That it doesn’t make people “happier” (except, I should point out, for the very wealthy, who are happiest in all countries) is not shocking even as we dismiss the argument as heresy. So I was surprised that an article about happiness, policy, and G.D.P. merely flirted with the issue of energy consumption and its relationship to a country’s standard of living as measured by G.D.P. Residences represent a 15 percent share of world energy consumption, and no one has to tell us that the more money we have, the more we consume. Of course, what politician is going to dare to try implementing a policy that echoes former president Carter’s admonition to “put on a sweater?”

So the big question is: Will the new normal be adapting down? Way down? And would we all be happier for it? (Think of “happiness” here not as butterflies and rainbows, but as in “the pursuit of.”

I just watched the documentary “No Impact Man” which shows how difficult and controversial adapting down can be. Once the story of Colin Beaven’s family project to give up every modern convenience for a year hit the New York Times, they got tons of criticism, from “Your bike looks tacky in front of our apartment building” to “Don’t shake their hands because if they’re not using toilet paper then they’ve got to be unsanitary.”

Colin’s wife Michelle, who hated the project, makes the whole thing very worth watching — she’s America, saying, yes, I’ll reduce, reuse and recycle tomorrow, okay? But I’m not giving up coffee and get those disgusting compost worms out of my face. Our eyes are hers as she spies a designer bag in a thrift store, the conversation she has is as familiar as hello-how-are-you: “You have that bag,” her husband says. “No, I have the white one, and it’s a different design — it’s a completely different bag.” We study her gaze — will she or won’t she cheat?

Our head throbs with hers at the prospect of doing laundry in the tub. Our toes curl a little bit as they hit the suds, squish into the sodden shirts and socks and underwear. We let out our breath with her, a little shaky, as we take the first step, gauge the change in the level.

By project end, Michelle has learned to cook, has lost enough weight to no longer be pre-diabetic, and describes herself as deeply happy in a way that she finds hard to describe and that is “sort of embarrassing.” As voyeurs, though, we can’t quite penetrate this secret with her — it’s up to us to grope for the new level.

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Ode to Pent-Up Demand

March 23rd, 2010 by Sara
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So there you were, attending to the “needs” column in your budget, ignoring the “wants.” But now you see that some of those wants have moved over.

There they are, staring at you from the top of the needs heap, without so much as the decency to displace what’s already there.

So let me hear you:

Time to throw your broke-back living room furniture in the fire? Say yay!

That back fence might fall down any day? Say hoah!

Windows won’t open? Say oh no!

It’s just a song that we sing, a song of the spring.

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I Oughta Haul Off And…My Love-Hate with Hauls Videos

March 8th, 2010 by Sara
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People are talking about YouTube “hauls” videos, and with good reason.

Here’s my recent Walgreens haul:

  • generic kleenex
  • hair dye
  • Fem HRT prescription (I will let you look that up).

Other than, say a 24-hour Web cam on you at all times, could there be anything more intimate than emptying the contents of your shopping bag for all of humanity to see?

If this were my very first blog post, you’d be able to make some good guesses about me. Vain? Check. Aging? Check. Unconcerned with kleenex appearances, check.

Hauls are that alluring combination of the best reality TV shows: At once banal, but with enough of a vouyeristic edge to keep you watching, or at least periodically checking in while you’re doing something else. Why? Check out this update from Marketplace Money, which clues in the geriatric set. It links to a YouTube haul parody by a listener.

Do you hate her just a little bit for being uncomfortably like you?

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The New Math: Credit Card Cleanup Means Higher Rates

February 22nd, 2010 by Sara
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Long overdue rules go into effect today to eliminate some of the worst credit issuer abuses. We’ll see:

  • Payments due the same date each month.
  • No double-billing.
  • 45-day notification of rate or other significant changes.
  • No interest rate increase for the first 12 months (excluding variable-rate cards, the expiration of teaser rates, and delinquent payments).

But we’ll also see an increase in interest rates, annual fees, “processing” fees, and even — lookout — fees for inactivity on accounts.

The most intriguing change will be the minimum-calculation math. In new statements we’ll see a chart showing how long it will take to pay off a balance forking over only the minimum, how much interest we’ll pay over that time period, and how much we could save paying a higher monthly bill. (It will tell us how much to pay in in order to pay off the account in three years.)

One of the most important rule changes is that credit issuers now have to allocate any money above the minimum payment toward the highest-rate balance first. So if your minimum payment is $100 and you send $150, that $50 will go to balances you might have for convenience checks or cash withdrawals — whichever rate is highest.

To get around this rule change, said one issuer I talked to last month, many will increase the amount of interest used to calculate the minimum payment. Check out this Bankrate calculator to see what I mean: Instead of calculating the minimum as APR plus 1% of balance, he said, many will add 2% to 5% instead.

In July, issuers are supposed to include information on how all interest rates are calculated on accounts and how they affect our payments.

Count on one thing staying the same: Doesn’t the man always get his money.

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Argh! Capital One Brings the Hassle

January 29th, 2010 by Sara
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Today someone called a friend of mine, demanding that his Capital One balance be paid in full by Monday. My friend was upset not only by the threatening tone of the call, but also because he was in good standing on his payment plan with the company. He wondered if he was being scammed.

Turns out it’s not so easy to figure out. Whether or not the threats are legal depends on the identity of the caller. If Capital One has charged off his debt to a third party, that party may not have recourse in court, and my friend may be able to report this party as engaging in illegal activity under the Fair Debt Collection Practices Act (FDCPA).

However, if Capital One is using an in-house agency or employees, it is not a violation of that act. (Because under the law, they’re not recognized as debt collectors. Nice.)

There are reports all over the Internet from people being sued by or otherwise in collections hell with Capital One, and at least one attorney general is paying attention — Capital One Bank, a subsidiary of Capital One Financial Corp., has just been served in West Virginia for fraudulent and deceptive collections practices.

What should you do in a situation like this?

  • Be cool, baby. Say little, admit nothing.
  • Request their identity, contact information and address.
  • Get their demands in writing.
  • Contact an attorney. Check out the National Association of Consumer Advocates.
  • Also see Caveat Emptor, a great Twin Cities-based consumer rights blog, and Debt Collection Answers, another lawyer-based blog.
  • Keep documentation. (My friend is going to be recording all of this debt collector’s calls.)

UPDATE: If you settle for less than you owe, plan to pay taxes on any forgiven amount of more than $600.

My friend promises updates, so stay tuned. We’ll be rooting for you!

UPDATE: He settled with Capital One in order not to be sued. He wasn’t thrilled with the terms of the deal.

As for Capital One, those pirates always did give me the creeps.

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Computer Blues: Too Much Technology

January 26th, 2010 by Sara
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It is 2010 and I want the Matrix — I want a central line to Technology, one port. Because the debate over gadgets is driving us crazy.

Undisputed Need: A new computer proper with the latest souped-up hard drive and OS with wireless router/backup drive. Our current desktop is sloooow and Internet access is tethered.

Yet many wants have somehow come to seem more urgent, even as the pace of change manages to threaten the whole pile with obsolescence as soon as they’ve burst their bubble wrap. To wit:

The iPhone/Droid/Tablet Conundrum

Pro: Even though AdAge says only 17 percent of us own smartphones, they seem somehow to have become indispensable, if for no other reason than to be able to text your every thought to your friends. When I’m at my computer, I’m working (like now, obviously!), and I’m not nearly as in the loop with what my friends are up to on Facebook as I’d like to be. I wish I were kidding. Mock me if you will, but you know I’m right. The Web is going (has gone) mobile, and I don’t want to be left behind.

Major Con: Who wants to pony up hundreds of dollars for iPhones, plus about $100 a month to actually use them on AT&T, which already can’t handle the load? Or buy a Droid whose “support” staff is a Google e-mail address? Or a Blackberry that can’t do all the fun stuff? With Kindle trying to get Smart with apps, and the fabled Tablet that had better replace our cars for all the hype it’s getting, it’s a scary time to commit.

The Cable/Phone/DSL/DirecTV Conundrum

There are no pros here, only one big con by an industry whose consolidation prevents real competition, and thus price drops, and also the kinds of packages/services we’d like to see. For instance, DSL is so slow (just heard the U.S. ranks 18th worldwide in Internet speed) that it should not properly be called broadband. We have DirecTV, which requires a phone line and thus DSL for Internet, because we heard such terrible things about Comcast. And we like DirecTV.

(Could we ditch DSL Internet service, get cable Internet, and keep DirecTV for what we’re paying now? I have no idea, but I suspect no. My husband tried researching some of this the other day, but it’s like trying to win a shell game.)

The barrier to switching just to get better Internet speed through cable is high, being unable to reliably compare apples to apples in monthly costs, and we’d have to start over by buying another receiver box.

“Maybe we should just get rid of DirecTV,” I said, picturing us Netflixing or downloading any TV shows we’d miss. Not only is this unrealistic, of course, but also would shut off another channel to the world, and one of the few these days that offers any modicum of shared experience.

It’s not just me who feels the strain. Josh Bernoff (AdAge DigitalNEXT) succinctly captures the growing pain moment we’re in, waiting for the long-heralded convergence of technologies and instead getting what he calls the Splinternet, where, he says, proprietary technology will separate us more than ever.

Meanwhile, as Prince said: “‘Til I find the righteous one, computer blues.”

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Best Ways to Donate to Haiti

January 14th, 2010 by Sara
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Where to donate and how to avoid scams, from Lifehacker.

http://tinyurl.com/yeobdj4

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