What Does Rich Look Like?

This is a guest post from Jana at Daily Money Shot, a blog about money at the intersection of life, pop culture and everything in between.

I don’t know what a rich person is supposed to look like. When I see celebrities or people I think are rich, I don’t notice anything special about the way they’re dressed or the way their hair looks (except at awards shows when the jewelry is worth more than my entire neighborhood). I can’t tell the difference between a $400 white t-shirt and a $14 white t-shirt. Rich people don’t talk any differently and I certainly wouldn’t know if they spent their Saturday nights dining at some expensive restaurants or crashed on their couch watching old reruns of “Cheaters”. I’m fairly certain that, even though their bank accounts are way bigger than mine, they’re not all that different.

I don’t know what a poor person is supposed to look like either. In fact, I wouldn’t even know how to tell if someone was poor, for a lot of the same reasons I mentioned above. And, given the amount of celebrity shoplifters, there’s no way to tell if a rich person or a poor person, or even a middle class person, is going to steal. Apparently, though, a security guard at a jewelry store near my house does have that keen of an eye.

A few years ago, my husband and I went into the store to get my engagement ring and wedding ring cleaned. We were dressed in jeans and coats (it was winter, sometime in January) and had our infant daughter with us (who was in a stroller). We didn’t look any different than anyone else in the store, yet the guard targeted us as the thieving type (I assure you, we’re not). He then proceeded to follow us around the store for the entire time we were there. It was awkward, uncomfortable and made me feel awful. To this day, I refuse to go back to that store. I don’t ever want to feel like that again.

So why am I telling you this? I’m not really sure, quite honestly. Maybe it’s to point out that the old adage “you can’t judge a book by its cover” is completely true. While the guard at the store may have thought we looked like shoplifters, we sure weren’t. Taking it one step further, someone may look rich, but that doesn’t mean he is. And when we start comparing ourselves to people we think are one way without knowing the real story behind it, that’s when we enter, to quote the great Kenny Loggins, the danger zone.

The danger zone is where we start spending money we don’t have on things we don’t need, not just to keep up with the Joneses, but to surpass them. It’s where we look at our friends and family and, not knowing the intricacies of their finances, start getting ourselves into debt to impress and outdo them. They went to England for a week? We’re going on a 15 day cruise of the Greek Islands! They bought a 50” TV? We’re buying a 65” TV! He proposed on the beach? My finance proposed on a glacier! It goes on and on. The competitiveness is sickening. And a financial time bomb.

Why do we do it, then? Is it some need to keep up with what we think rich people do? Is it a need to seem “better” than our friends or wealthier than our friends? Perhaps we’re insecure and this is the way we can feel superior or envied. We want people to think we have money so we structure our purchases to look like we do. It’s a self-fulfilling prophecy that, at the end of the day, leaves us still feeling insecure and with an emptier wallet.

I’ve been guilty of spending for those reasons. I did it a lot in my 20s. But as I get older, I realize how foolish it actually is. I’ve learned that most people who look “rich” aren’t rich at all. They’re just like everyone else.

Because really, what does rich look like?

Cut Your Expenses By Slashing Your Cable TV Bill

The following is a guest post.

Do you get a little angry every time you take a look at your cable bill?

Have you ever stopped and thought to yourself ” why am I paying this much just for television every month?”

If so then you are in the same boat with millions as millions of other Americans who are getting nickeled and dimmed to death by the cable industry.

Here is a secret that I think very few people realize: cable television is a luxury item and the industry as a whole keeps raising rates because as a whole Americans complain a lot but still end up paying it.

Any rational person’s path to cutting his expenses and getting out of debt should include finding a way to slash his monthly television bill.

If he has his cable, Internet and phone in a bundle package then he should look to cut that expense by a large percentage as well.

As a person who has worked for three cable and two satellite companies I am going to explain the easiest way to do it.

Negotiate A Better Deal With Retention Dept

The customer service department can do practically nothing for you. On the other hand the retention department can do wonders.

Ask specifically for them so you can be on the phone with someone who actually has the authority to help you.

Its crucial that you become a aware of the competing cable companies in your area.

Take a look at the deals you see them advertising online. Write them down on a piece of paper for further reference.

Should no other cable company exist in your area then you will need to look at the offers that the satellite companies are offering.

Either DISH or Direct TV will be fine. Take their medium package and use their online tool to add in any extra equipment you have (IE. extra HD boxes or DVRS).

The total price of the competing company’s promotional rate will usually be at least $4o cheaper than what you are paying now.

In most cases it will be a lot more.

When you are speaking with the customer retention specialist you need to make sure you sound very polite but firm at the same time.

Explain to them that “you like the service and want to stay with what you currently have but feel like the deal you are being offered by XYZ company is too good to pass up.”

Tell them that you and your family are trying to cut back on expenses and can no longer afford the package that you have at its standard rate.

Nine times out of ten you will get a significant discount on your total bill.

I gave one of my friends who was complaining about his cable bill last week these exact instructions.

He had Cox Communications and was paying approximately $110 a month just for cable television, one digital home recorder (DVR) and one additional high definition box.

I told him to call Cox and tell them that he could get the exact same cable package with the same equipment from Direct TV for $50.99.

He did what I told him and the retention department offered him his same cable package with free Showtime for three months for $65 for six months.

Not bad.

I was listening to the conversation and told him to ask for a longer promotional period. My friend did not think they would go for it but I urged him along.

Sure enough the retention rep did it.

She didn’t give any resistance whatsoever and with one push of a button gave him a year long promotion that will have him $45 a month. That translates into $540 a year!

While I was proud of my friend I was also disappointed in myself.

That was good but I felt that I should have pushed him more.

I should have got him to push them further to add one more premium movie channel with the deal and up his Internet speed.

Why not? These cable companies spend a lot of money getting you. You might not realize this but hundreds of dollars in advertising were spent so that you know they exist.

Additionally, they probably subsidized a large portion of your installation costs.

If they loose you as a customer then at some point in the future they will have to spend hundreds of dollars to get you back.

Giving you another promotion actually saves them money in the long run.

You have more “aces” to play the more competing companies there are in your local area.

Depending on what deals are currently being offered you might be able to get your cable company to discount your bill well beyond what you ever thought was possible.

I say shoot for the stars. You have nothing to loose and only a lot of money in savings to gain. Whenever you think you are asking for too much go ahead and ask for more. After all, they ask you for more money every single year.

Have Credit Cards Let Us Down?

Author bio: This is a guest post from Steve who writes about personal finance from his unique perspective at Money Infant. Once you are done here head over there and say hi. Tell him Tight Fisted Miser sent you!

It’s a silly question really. Credit cards aren’t like people, they can’t let us down. They are simply pieces of plastic used to access a line of credit granted to us froma bank or other lending instituition. Credit cards aren’t good or evil, they are simply another tool in a large arsenal of financial tools. If anything it is us who have let ourselves down through our poor understanding and use of credit cards.

What is a Credit Card Really?
A credit card is a card issued by a financial institution that gives the holder the ability to charge goods and services (borrow money) usually at the point of sale. Credit cards are meant to be used for short term financing and as such typically charge high interest rates. Borrowing limits are set by the financial institution issuing the card and are determined based on a set of criteria including FICO scores, current outstanding credit, outstanding credit line used and other factors.

Why We Feel Let Down
Many of us are carrying large amounts of credit card debt and feel as if we can’t escape from the credit card treadmill that we find ourselves on. I know exactly how this feels because I was once on the same treadmill. You feel loss of control, overwhelming frustration and as if the credit card company let you down. The problem is we didn’t understand the proper use of credit cards – short term financing. The credit card didn’t let you down, you let yourself down by using this tool incorrectly.

Proper Credit Card Use
To enjoy the benefits of credit card use (ease of payment, cash back and points programs, increased credit score and financing options, lowered interest rates) we need to learn how to use them properly. It really isn’t difficult if you can simply keep in mind that credit cards are meant for purchases that will be financed for 30 days or less. Typically it is after 1 month that interest begins to accrue, so if you pay your card off before this you avoid the hefty interest charges and using your card isn’t really any different from cash.

No matter how betrayed by your credit cards you may feel the truth is they are there to help you if you can understand them and use them the way they are meant to be used

Five Frugal Ways to Celebrate St. Patrick’s Day

Saint Patrick began life sometime late in the 4th century in Britain as Maewyn Succat. Young Maewyn was kidnapped, taken to Ireland, and forced to herd sheep there. He turned to his faith for comfort, and eventually escaped. After he became a priest in France, he returned to the country he had known as a slave, and converted many of its inhabitants to Christianity. His name changed to “St. Patrick” only after he was ordained as a bishop.

There are many tales about this gentle saint, including chasing all the snakes out (oops – Ireland didn’t have many to begin with!) and having his staff burst into flower. They may have been miraculous, but two letters he wrote still exist, as well as many accounts of his work. After his death, his Irish converts set aside March 17 (most probably his death date, not his birth day) to celebrate his life…and the arrival of Christianity to their shores. Eventually the holiday became one of feasting and drinking, which it remains today.

The Irish immigrated to America in droves in the 1840s, after Ireland’s great famine, or “An drochshaol,” bad times. (They endured a similar famine in the 1740s which destroyed their potato crop. More in a bit.)  There’s a reason why so many railroaders and Western settlers were Irish — they weren’t always welcome elsewhere in the country. Immigrants were stuffed into slums and forced to work in sweatshops back East. More than one source attributes the popularity of St. Patrick’s Day parades in America beginning as protest marches against poor working and living conditions!

Today’s St. Patrick’s Day celebrations may include a visit to a parade — especially in Downpatrick, Ireland, where Patrick is thought to be buried. (Think about that name.) Or celebrate the good saint’s holy day in other ways:

*Wear green. But remember — St. Patrick’s Day is technically a Catholic holiday. If you’re Protestant by inclination, feel free to add some orange, or wear it instead. (Just plan on being pinched…another interesting side effect of the holiday.)

*Pin on a shamrock. Patrick used the three leaves of this greenery to illustrate the Trinity. (Four leaves, of course, are good luck — when you can find them.)

*Have a drink. Skip the green beer and go straight for Guinness stout, a ‘hoppy’ thick dark brew that’s a snack, as much as alcohol. Or sip an Irish whiskey, said to be the oldest in the world — Bushmills, Tullamore Dew or Jameson are a few possibles. A pot of dark Irish Breakfast tea may console the teetotaler. (Milk, please.)

*Enjoy a meal. Corned beef and cabbage, the traditional U.S. response, are really more American than not, though the Irish do enjoy a beef boiled dinner.

You might consider colcannon (potatoes and cabbage) or boxtie (boxty – potato pancakes) on your dinner table. They’re a strong tie to the vegetable that fed a nation until its blight – and the resulting Great Famine.

Or try a Dublin coddle, a mixed dish of ham, sausage, potatoes and onion. It’s easy, filling, and costs little to make.  “Coddling,” by the way, refers to keeping the dish at a gentle simmer. Use a crockpot instead, if you’re headed to the pub for the afternoon.

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Online Income Report – February 2012

Here is a breakdown of my online income for February 2012.

Google Adsense – $311.71

Affiliate Income – $3.75

Brokered Ads – $65.25

Direct Ads-$1773.67

Total – $2154.38

My online income went down quite a bit in February.  Private advertising income was down the most.  I’ve been thinking this would eventually subside and it has finally happened.  I am ahead of last month’s pace so far this month though so I’m hoping it will rebound a bit.  After having a great month of affiliate income in January my income went all the way down to $3.75 in February.  I actually made a couple hundred dollars in affiliate income in February but I haven’t received any of it yet and I don’t count it until I receive it.  This causes my affiliate income to seem more inconsistent than it really is.  I still need to work on increasing my affiliate income and other sources of online income in order to become less reliant on private advertising.  I can’t complain about this amount of income but it is unfortunate that my online income declined right when I was starting to outsource some of my online work.  Since I’m hiking the last two weeks of this month I won’t be doing much to try to increase my online income this month but I do have some ideas for when I return.