Thursday, September 29, 2011

Merit Alone May Not Get You that Promotion

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Merit Alone May Not Get You that Promotion

Here's a piece from Fortune that says merit alone may not get you that job promotion. The details:

So you've worked hard, produced great results, and have all the right qualifications. Nevertheless, that bigger job you had your eye on went to your boss's golf buddy, or old college roommate, or brother-in-law instead.

Scant consolation though it may be, but you've got plenty of company. A whopping 92% of senior executives say they have seen favoritism -- defined as the use of criteria other than performance -- determine who gets promoted, says a new study conducted by consultants Penn Schoen Berland on behalf of Georgetown University's McDonough School of Business.

For those of you who think that performance alone will get you promoted, it won't. At least in many cases it won't.

And I wouldn't say that "favoritism" is the problem/issue/reason. I think what they're really describing above is likeability. And as I've noted many times previously, being likeable is just as important to your career growth as is performance. A few samples of what I've said:

Some "experts" think that being likeable matters more than being competent.
The characteristics that make someone "likeable".
You might not be getting hired because you're not likeable.
There's no such thing as being too likeable.
The more pleasant you are, the more job opportunities you have.

So, in addition to your three-point plan to deliver great results this year, it is probably worthwhile to spend a bit of time becoming more likeable as well. I'm not saying to fake it or to create some sort of character that you despise simply to get promoted, but we all can be a bit more pleasant if we tried, can't we? And given the fact that the smallest advantage between job candidates may mean the difference between promotion or no promotion, being hired or being turned down, isn't it worth a little effort to be slightly more likeable? I think so...

Posted on September 21, 2011 at 04:29 AM in Career 2011+ | Permalink

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When I was younger and dumber, I used to think that I would do great without playing politics, that my work alone would speak for itself and I would succeed strictly by the value I provided.

ha ha ha ha

The world just doesn't work that way. Look at it even from the college application process- legacies have priority over others. Unfortunately, you gotta learn to play the game...

Posted by:everyday tips |September 21, 2011 at 08:42 AM

I see this every day at my employer- but if you have a degree that is a true barrier to entry, it doesn't affect you as much and then it truly comes down to competence and skill. MBAs are not such a degree- JDs, MDs, PhDs in a hard science qualify, not many others do though.

Posted by:Pop |September 21, 2011 at 09:03 AM

That's the way the world works. I didn't quite get it until I started working.

In my schooling all the way through undergrad, it was all about grades. Do better, get a higher GPA, higher rank, etc. All was quantifiable, due to right or wrong answers.

Once job recruiting started in undergrad, I saw people with relatively lower (3.0) GPAs get certain jobs instead of top students with 3.9-type GPAs. Why? They knew someone, or were just plain likeable. They connected with the interviewers, and seemed like that type of people that would fit into companies and be great to work with. In short, someone you could grab lunch with or a drink after work.

When I got an MBA, a class participation grade was included, where professors were subjectively allowed to grade students on the quality of their comments and their peception with fellow students. At the time, I thought it was absurd - but now I see the brilliance in that approach. It was encouraging us to be likeable.

Posted by:Squirrelers |September 21, 2011 at 12:59 PM

Even if you have a PhD, at the very top levels promotions and plums are all awarded based mainly on likeability rather than actual competence.

Among my own peers, we call it "the golf index". As in, if you're puzzling about why so-and-so got picked to be Dean and you didn't, it's because he has a higher golf index than you do. (ie he socializes with the boss, even if it's not via an actual a golf game).

This really sucks if you're a woman, obviously. I can't "golf" with the boss or people will think I'm sleeping with him. To compensate for the gossip mill, successful women tend to act more hard line and keep their interactions with their colleagues very focused on work only. But then they're overlooked for promotions because they're "unlikeable". This issue is the main reason why there's few women at the top, IMO.

Posted by:MC |September 21, 2011 at 02:02 PM

In defense of the "like-ability/golf index", people skills are the glue in running things. When you are high up in a business your ability to communicate (public speaking to one-on-one interpersonal skills) is critical to get things done. At higher levels one's aptitude and competency are important but your people and communication skills are even more important. When I was a young engineer the people in my group held resentment toward those who got promoted on likeability rather than merit. It was not till later in life did I realize that a person with aptitude, competency AND good people/communication skills was more rare than a person with just aptitude and competency. These people & communication skills translate into leadership skills. It is what it is folks.

Posted by:texashaze |September 21, 2011 at 04:10 PM

Absolutely agree here. Likeability is everything. I am a scientist for the federal government, and while I'm certainly not unlikeable, I do not have a bubbly, charming, brown-nosing personality. I won many awards for my accomplishments, but when it came time for promotions, I would watch those whose qualifications were objectively much lower than mine get the job. While it is a struggle for me, I've adopted the idea of just being content with what you have and don't pretend you're someone you aren't. I can at least sleep that way.

Posted by:Mark |September 21, 2011 at 05:47 PM

Likability is pretty important and rightfully so. Who wants to work with people you don't like? Who wants someone in charge that isn't likable?

Of course theres always also various forms of favoritism, nepotism, cronyism, etc that aren't about being likable but about being associated with the people giving the jobs out.

Theres a huge difference between getting a promotion simply because you're a swell guy and getting one cause you're the bosses son in law.


Posted by:jim |September 21, 2011 at 07:21 PM

I've definitely learned this the hard way. In every job I've ever worked, the charmers always got ahead, over those of us who were good workers. Of course, in many cases, they ended up eventually getting fired too, because they never did any work. Their time was spent chatting everyone up, instead of doing their job.

I admit, I'm very introverted, and don't have a bubbly, likeable personality. I like to focus on doing top-notch, efficient work, and am always seeking ways to streamline work and improve the quality of my work. But while bosses love having me as an employee, I don't get "promoted", probably because of the likeability thing. That, and most of the jobs I've worked, there really isn't anywhere for a graphic designer to go, other than art director, which is almost never available.

It will be interesting to see how things go once I start my Accounting career. I'm terrified of this whole "charm" thing, where you have to be a schmoozer in order to get ahead. It doesn't seem fair.. .I'd rather work with pleasant people who do their job extremely well and don't talk much, than super-likeable party people who are too busy chatting around the water cooler to get anything done.

Posted by:BD |September 21, 2011 at 08:10 PM

Promotion if definately a formula. You are absolutely right...merit alone will not get you to the top...nor hard work alone...nor politics alone. You have to have a combination of everything. Unfortunately to succeed in the corporate world, you MUST play the game! In the words of Ice T..."Don't hate the player, hate the game".

On a serious note, if you really want to succeed you must self-promote. If you don't, someone else will. I once got a position that I was totally underqualified for and didnt' deserve, but I played the game better than the six other people that wanted it and had better numbers.

Posted by:Travis Scott |September 21, 2011 at 10:04 PM

Travis: I'm curious - How long did you last in that position? Were you able to keep up with the demands being underqualified?

Posted by:BD |September 22, 2011 at 01:23 PM

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Wednesday, September 28, 2011

Over 50% of Americans in Bad Financial Shape

Over 50% of Americans in Bad Financial Shape (Free Money Finance)window.fbAsyncInit = function() { FB.init( { apiKey: 'a279adbe87e2b3c505e777af99a5260d', xfbml: true } );};( function() { var e = document.createElement( 'script' ); e.async = true; e.src = document.location.protocol + '//connect.facebook.net/en_US/all.js'; document.getElementById( 'fb-root' ).appendChild( e );} )();Free Money Finance HomeArchivesSubscribeAboutAdvertiseContactPoliciesTwitterMake MoneyNewsletter Search

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Over 50% of Americans in Bad Financial Shape

The book Your Stronger Financial Future: The Eight Essential Strategies for Making Profitable Investments highlights the following findings from a Center for Retirement Research study:

24% of Americans believe they are in good financial shape and are correct
28% of Americans believe they are in good financial shape and are wrong
33% of Americans believe they are in bad financial shape and are correct
16% of Americans believe they are in bad financial shape and are wrong

What I found most interesting was the fact that 61% are in bad financial shape (whether they know it or not.) The book doesn't define "bad financial shape" and how severe it is, so we're left wondering. But given the finances of the average American, is it hard to believe that over 60% of Americans are in very rough financial shape? Not for me.

I was encouraged to see that 40% were in decent shape. I think many in the first group are readers here at FMF (you all seem so smart!) And we just need to get the word to the last group that they are doing fine -- and to keep up the good work. Then they can join the rest of us in the first group. ;-)

What's your take on this information? Surprised or not?

Posted on September 22, 2011 at 04:29 AM in Financial Planning | Permalink

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With the current state of the economy and the collapse of easy credit, no I am not surprised. There were way too many people living beyond their means.

Posted by:Matt |September 22, 2011 at 06:19 AM

I don't know their definition of 'bad financial shape', but I expected to see that more are in bad shape, at least on paper.

My neighbors are running away from their mortgage because they moved out of state. Yet they are both lawyers. Are they really in bad shape, or taking advantage of the system? Would they be counted in bad shape?

On the other hand, I know many that are in bad shape, but live like there is no tomorrow and they certainly dress like they are financially secure.

Posted by:everyday tips |September 22, 2011 at 08:17 AM

Seems to me if you're stuck in a mortgage that you can't get out of without harming your finances, you're sure not in good shape, no matter what you earn (surprisingly, these days many lawyers don't earn what we imagine).

These pronouncements are pretty vague, though. Define "good" and "bad" financial shape. And who is to judge what an individual believes is adequate for his or her lifestyle, values, and goals?

Posted by:Funny about Money |September 22, 2011 at 08:51 AM

I would love to know their definition of good financial shape and bad financial shape...

Posted by:Sarah |September 22, 2011 at 08:57 AM

If you care enough about your financial shape to read a blog like FMF, then you are either already in good shape or heading in that direction, I think.

Posted by:Paul |September 22, 2011 at 09:20 AM

The definitian is a bit tricky. I would like to be in "better" financial shape which means I'm not happy where I'm at --- does that mean I'm in bad shape (even though it's probably better than the average)?

Posted by:texashaze |September 22, 2011 at 10:02 AM

I would also like to know the definition of bad financial shape. If you ask Suze Orman, everyone is bad financial shape! There are also different age groups, family dynamics, ect. This has to be a very subjective survey!!!

Posted by:Travis Scott |September 22, 2011 at 10:42 AM

I would define the worst degree of "Bad Financial Shape" as:

No income.
No Healthcare.
Lots of Debt.
Behind in rent or house payments.
Very little savings.

or in other words, "A disaster waiting to happen".

The 33% referred to are more likely the group that are still functioning but one major car repair away from those I described.

Posted by:Old Limey |September 22, 2011 at 10:56 AM

That 61% in the "bad financial shape" category comes pretty close to the 69% in Jean Chatzky's "payday to payday" and "further in debt" categories, as mentioned in her book "The Difference".

Posted by:Mark |September 22, 2011 at 01:46 PM

A quick Bing search on "% of Americans living paycheck to paycheck" found estimates ranging from 2/3 up to 77% (you could probably find the same thing using a Google search if you insist on using an inferior search engine for whatever reason).

So I'm actually a bit surprised that only 60% are in "bad financial shape". I would have expected a higher number.

Posted by:Bad_Brad |September 22, 2011 at 02:02 PM

61% sounds right. But its hard to know without a real definition of what they think 'bad financial shape' means.

I'm surprised that 16% of people think they are in bad shape and aren't. That % seems high to me. They could be on the margin. Or maybe they think that cause nobody defined what 'bad financial shape' means??

Posted by:jim |September 22, 2011 at 03:09 PM

In my book, you are in bad financial shape if you cannot financially survive an extended period of unemployment.

Posted by:JimL |September 22, 2011 at 05:16 PM

JimL - I am surviving an extended period of unemployment - I'm retired! Ha!!

Posted by:Georgia |September 23, 2011 at 02:33 PM

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Reader Profile: GB

The following is the latest post on my new "Reader Profiles" series. Each post in this series details the financial situation and challenges of an FMF reader. The purpose of this series is to help us all identify with people like us (in similar situations -- not all will be, of course, but eventually I'm sure you will find someone like you here), get to know the frequent commenters on the site, and hear some financial wisdom/challenges from people other than me.

If you're interested in contributing to this series, then drop me an email. We've had a good number of these lately, but I'm always interested in more.

Next in the series is FMF reader GB. He answered my questions (in red below) as follows:

Please tell us a bit about yourself.

I am a 47-year old, former D-1 basketball player who now works as a teacher, coach and administrator in south Georgia.  I am married and have a son in kindergarten. My greatest joys in life are being a husband and a father.  I also enjoy working with my students and athletes; I sometimes feel like I am an uncle to about 500 nephews and nieces.

While I was not always the greatest student, I did manage to will myself through four degrees:  B.A. in History, M.B.A., M.A.T.L. in Spanish / TESOL and an Ed.S. in Administration and Supervision.  I also completed an online Certificate in Financial Planning from FSU.  My wife only has three degrees, so naturally I lord this over her every waking moment.

Away from school, I enjoy long distance running, weight-lifting and Pilates.  I especially enjoy trail running during the cooler months; there are so many awesome timber / farm roads here.  As of January, I have been on the Slow Carb diet, and I have lost 35 pounds without counting a single calorie!  This dietary change has greatly helped my running and improved my overall health.  This year I plan on running my first marathon.   Depending on how I progress, I might also try to run an ultra marathon event.

At home, we watch a lot of cartoons, TV shows, movies and documentaries on Netflix; we have not had cable TV in almost three years.  I do not miss cable's high prices and commercials!  When I tell people that we do not have cable, I see a combination of disbelief and pity on their faces as if we lived in a cave.  Don't worry about us folks; we have more than enough entertainment options.  We also use the public library to the max.  For example, I currently have 45 books checked out.  We pay very little for entertainment ($10 for Netflix), phone ($60 a year for an unlimited Skype plan with “regular” number) and internet ($45).  We eat out about once or twice a week.

At home, my wife and I split the cooking duties.  Fortunately, we are both decent cooks, so we eat very well at home.  My specialties include:  jerk pork steaks, curried lentils, and curried chicken.  We always have lots of good things to eat at home.   (People should learn to cook the dishes they like the most.  It’s much cheaper than eating out and it’s awesome to see your fridge loaded with leftovers that you actually want to eat!)

Describe your financial situation (who works in your family, how your income is (general), how your expenses are, etc.).

My wife and I make about $133,000 together.  Our current district does not participate in the Social Security plan, so we got a 6.2% raise by taking this job.  Our district kicks in another 5.24% into a 403b pension plan in place of Social Security.  In our eyes, that nets an 11.44% raise from our previous school district, so we are very pleased with these financial aspects of our jobs.  (We changed jobs in August of 2009.)

In addition to the district's retirement plan, we also contribute to Teacher Retirement System of Georgia.  Our monthly contributions are 5.25% our salaries.   The GA TRS starts paying out pensions at age 60.  Our district also provides us access to optional 403b and 457 retirement plans.  The last two years we have both fully funded our 403b and 457 accounts to the amount of $66,000 ($16.5K x 4).  We also fully fund our Vanguard traditional IRAs ($5K x 2 = $10K); we both use the 2025 Target Retirement fund.  In 2010 we saved over $82K in our retirement accounts, and we are doing the same in 2011.

Overall, we have retirement savings of about $415,000 invested in IRAs at Vanguard and 403b accounts at Vanguard and Valic.  We also have $110,000 in Valic 457 accounts which we view as our emergency account since these accounts do not have early-withdrawal penalties like other retirement plans.  All investments at Valic are invested in the short-term fixed account earning about 2%.  I realize that we are losing money to inflation, but we prefer that option to being subject to stock market volatility AND Valic’s excessive fees.  (I used to blog about the issue of 403b fee pillaging, but it was changing my naturally gregarious personality for the worse.  Suffice it to say that I think the vast majority of 403b annuity products SUCK due to excessive fees.)

We have a 2,200 sq. ft. home in our previous hometown valued at $160,000.  We owe $75K on the mortgage (@ 5.875%) and we owe almost $45K on a HELOC on the home.  (More on the HELOC later)  We also have $11K in credit card debt that we transferred to a 0% interest credit card (0% until 9/2012).  Both of our cars are paid off, so we have no auto loans.  We paid off our student loans for graduate school within two years of graduation ($40K).  Good riddance to those loans!

In 2009 we took new jobs and began renting our home to a teacher friend.  We feel fortunate to have a great renter in our home.  The rent pays most of the mortgage, so we have not explored the idea of selling it.  We presently live in a farm house that we rent for $750 a month. We are not sure if we will look to buy another home near our current job.

For our son we have contributed $2K in a Coverdale ESA every year since he was born.  We also have a GA 529 account with Tiaa-Cref; we contribute $25 a month.  Overall, we contribute $2,300 a year to his college accounts.  Currently, they are worth $13K.  I plan on discouraging him from taking on any student loan debt…what a racket that has become!
What are the current financial issues you're facing (saving, paying off debt, etc.)?

Our first financial concern is to pay off our credit card debt before September of 2012.  I am sure that I could get another favorable balance transfer if we still havs a balance, but we are both ready to slay this beast.  Next, we want to work on our HELOC balance.  Our HELOC and credit card balances got so big when we used them to cover living expenses when moved from our previous jobs in 2009.  Basically, we fattened our retirement accounts ($60K in 2009) via debt.  I realize that most financial planner would recommend against doing what we did, but we will take care of this problem over the next three years.  Currently, the HELOC has a 2.9% interest rate, and we are only paying the interest on the balance (about $110 a month).  Eventually, we will use the HELOC and its lower interest rate to accelerate the payment of our mortgage.

For the remainder of 2011, we still need to plow $23K in our accounts to max our retirement savings.  At the same time we will pay off at least $6K of credit card debt.  Slowly but surely we are making progress towards our goal of having a $1,000,000 net worth.

What are your plans for the future. (retire early, build your career, etc.)?

At some point we would like to take a sabbatical in South America for at least a year. We want our son to learn Spanish and Portuguese, so we would like to get him there while he is still young enough to absorb the languages.  As for career development, we plan to continue teaching and coaching but with more frequent “sabbaticals.”  I do not see us teaching beyond age 60.  Eventually, I hope to write a book about our alternative financial planning ideas.  (I keep saying “we” and “our” because if my wife were not financially on board, few of our financial goals would have ever been achieved.  Thanks Honey!)  
What's your best piece(s) of financial advice and/or your general philosophy on personal finances?

Like most people, my financial worldview was shaped a number of influences.  The first tidbit that springs to mind is something that Andrew Tobias wrote.  Basically, if you do not save money regularly, your income level and investment prowess are both moot points.  Saving money is the first step; in our consumer society that step is often overlooked.  In some ways, a commitment to saving money is more important than increasing your income or investment return.

From John Bogle, I learned how investing fees can consume your return; consequently, I try to be a cost-efficient investor.  Since Bogle also helped me understand how difficult it is to "beat the market," I use index funds (or funds made up of index funds) to "buy the entire market."  My favorite financial writers are Scott Burns, Jane Bryant Quinn and Mary Beth Franklin.  Finally, I think everyone should read Paul Terhorst’s “Cashing in on the American Dream:  How to Retire at 35.”  While I did not retire at 35, Terhorst’s book changed the way I thought about money.  It really made me focus on gaining my economic freedom through saving and investing.  (Thanks Paul!)

Simply stated, my financial philosophy for success is:   1) to under consume, 2) to over save and to over invest, and 3) to almost pathologically avoid taxes and investment expenses (the 15% tax bracket is too much for us and any investment fee beyond 20 bips is ridiculous!).  At the same time, I try to keep in mind that money’s value is that it can free up your time and allow you to enjoy life.  So far this formula has worked for us.


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One Fee It May be Worth Paying

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One Fee It May be Worth Paying

MSN Money lists 10 fees you shouldn't be paying including this one at #5:

Rewards card annual fees. An increasing number of rewards cards charge annual fees. However, there are cards with great perks and no fees.

Yes, it's true that IN GENERAL you do not need to pay annual fees to get a good rewards credit card.

And yes, it's true that an increasing number of rewards cards charge annual fees.

And yes, it's true that there are cards with great perks and no fees.

But that doesn't mean that there aren't cards worth paying an annual fee on.

For example, in How to Get 6% Cash Back on Grocery Purchases (Or $500 Cash Back) I highlighted one. Since I wrote that post I've gotten the card and have been using it very frequently. In fact, it's the #1 card in my current cash back strategy. IMO it's a SURE THING that this card has more than made up the $75 annual fee (and for new card holders, the $100 application bonus offsets the first year's fee anyway.)

Like with most things personal finance-related, there is a general rule and then exceptions. The general rule is that you shouldn't pay for a cash back rewards card. The exception is that there are some cards worth the money. Do the math based on how much you charge and where you charge, then decide if any specific card does or doesn't work for you accordingly.

Posted on September 20, 2011 at 03:45 PM in Making Money 2011+ | Permalink

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I paid $90 to get a British Airways card which came with 100,000 miles (after $3000 purchases in 3 months). That's enough for TWO flights from San Francisco to Europe (though to be fair, they have very limited selection of flights and there are a lot of extra charges to use the miles). Assuming that I can find good flights that fit my schedule, that's definitely worth the cost! However I'll be canceling my card soon now that I have the miles.

Posted by:SteveD |September 20, 2011 at 04:46 PM

I agree completely. I too refused to pay an annual fee until you made me aware of this card. I have never seen another card that offers anywhere near 6% on groceries year round with no limit on spending. My only issue with this card is that there is a one month lag in AMEX applying the rewards to your rewards balance. Other than that, the card has worked great. I hope that AMEX does not change this rewards program.

Posted by:Hamaca |September 20, 2011 at 04:51 PM

I also agree about the Blue Cash Preferred card. Even taking the half-year annual fee (the anniversary date for my AMEX account, originally a Blue for Students, is February) out of the cash back I've earned in the 2.5 months I've had the card, I'm still earning 3+% cash back. It would be nice if the one-month lag didn't exist, but it's a small price to pay for such an excellent reward.

Posted by:Matt |September 20, 2011 at 09:32 PM

Love the Blue Cash Preferred except for the month lag. As to the fee I was $25 ahead on the $100 cash back and then I referred a friend and got $75 for that. So one way of looking at it is, my fee is covered until 2013, then it's $50 for that year and all the rewards are gravy. I hope the rewards stay in place for the long haul.

Posted by:Tim |September 21, 2011 at 09:10 AM

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Is Your Wallet Too Fat?

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Is Your Wallet Too Fat?

Smart Money laments the size of Americans' wallets with the following comments:

Here, on the posterior of many an American professional, lies one of the more unexpected twists in the evolution of personal finance. At a time when people seem increasingly reliant on their smartphones for all manner of interactions with the world, that oldest of handheld devices -- the wallet -- has remained a surprisingly enduring accessory. Indeed, for some people, the wallet is not only not disappearing, it's getting fatter -- with many Americans now hauling around so much stuff in their pockets that their billfolds have become, in the apt phrasing of one longtime lugger, "roving file cabinets." Even wallet makers, who have been pushing slimmer models for years, seem flummoxed by the trend: That plump bifold behemoth "is still our best seller," says a spokesperson for Wilsons Leather, one of the nation's oldest wallet specialists.

They offer some ideas on what to carry and not carry -- so you don't have to worry about carrying around a file cabinet the rest of your life. :-)

I last told what I carry in my wallet when I detailed my credit card strategy. Since then, things have changed a bit. Here's an update on my wallet status:

I got a new "money clip" from Walmart. It's a small, fake leather, bi-fold card holder with a money clip on the outside.
In the clip I carry cash (on the outside), my driver's license (in a see-through slot), my debit card (part of the high-yield account plan at my credit union -- I'll give you an update on how that's going in the next month or so.)
Four credit cards fit in as well. These are all the slots I need to easily manage my new credit card strategy.
My money clip is small enough that I can carry it in my left, front pants pocket.

No filing cabinet for me, though what I currently carry is a bit bigger than what I used to carry because I now have two extra cards -- a debit card and a new credit card.

So, as they say, what's in your wallet?

Posted on September 21, 2011 at 10:45 AM in Consumer News | Permalink

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I follow your trend pretty closely. Alot of us use the wallet to store receipts from purchases. My goodness people you have the best filling cabinet in the world in your other pants pocket. It is called your phone! Take a picture of the receipt when you get to your car and get rid of that receipt. What is even better is if you use an app like say Evernote, Springpad(personal fav), onenote. They will organize your receipts for you in a matter of moments and away you go.

I carry nothing in my wallet besides 2 credit cards, drivers license and 2 insurance cards(health auto). Everything else is in the smart phone and backed up to a secure location on my personal laptop all the time.

Posted by:Rod |September 21, 2011 at 11:00 AM

I carry a file cabinet in my back pocket. (Or cargo-pants-pocket when I can.)

Let's see.... cash, driver's license, minister ID card, photo of my wife, debit/ATM card (for deposits), 2 credit cards, 3-4 business cards (mine), a couple of discount cards, library card, auto insurance info, health insurance card, card that gets me into the high school football games for free, checks I need to deposit (none at the moment), and receipts.

Whew!

The receipts wouldn't be so bad if I would deal with them daily... or even weekly. They tend to stack up until it's ridiculous (3-5 weeks), and then I take them all out & deal with them. I have to turn them in for reimbursement, which means taking photos of them isn't going to work... not when I'd just have to print them out again!

Anyway, it's not really a very thick file cabinet, especially when I've emptied out the receipts. It's maybe 2 iPhone 4's thick (the only thing I have handy to measure it by). I've seen people with wallets 2-3 times as fat as mine. I have no idea what they're carrying in there.

Posted by:Rich Schmidt |September 21, 2011 at 11:20 AM

I currently have

1 Credit Card
1 Debit Card
1 Post-It note to myself
1 $20 bill
1 $1 bill

1 Driver's license
2 Auto Insurance cards, one for my car, one for my truck
1 Library Card for the local municipal library
1 Library Card for the scientific/technical library here on base
1 Health Insurance Card
1 Dental Insurance Card
1 Air Medical Services Card, which my health insurer instructs me to keep on my person at all times.

That's pretty typical. Usually I have a bit more cash, and no Post-It! note. I have a very slim, tiny, wallet, which I started carrying because I'm often in places where I want to slip it into my front pocket.

Posted by:MattJ |September 21, 2011 at 11:38 AM

I've got 3 credit cards, 3 ATM cards, driver's license, insurance cards, Costco and library card, electronic key card to my office parking lot, and some K-1 Speed gift cards. And cash - I like to have about $100 cash on hand.

I never use 1 of the credit cards or any of the ATM cards or any of the insurance cards, but they're things that you want to have when you DO need them. Also, I don't have any better place to store them, and if I take too much stuff out of my wallet then what's left falls out too easily because it's not packed in tight enough.

I use a tri-fold, so it gets pretty thick if I carry around much more cash. I put it in my back pocket while walking around, but always take it out when I sit down because I don't enjoy sitting on a slant.

Posted by:Jonathan |September 21, 2011 at 11:49 AM

I travel a significant amount (on a plane now with my iPad). As such, I carry a portfolio in my work bag for all my frequent traveler cards (hotels, airlines, etc) and receipts. That keeps my wallet light.

Posted by:JimL |September 21, 2011 at 11:53 AM

Fat wallets are uncomfortable and a pain to put in your pocket. I keep a Johnston & Murphy "weekender" http://www.johnstonmurphy.com/product.aspx?c=759&pid=56771 in my front pants pocket. It's small, lightweight and comfortable. All I need is my driver's license, my debit card and my new Chase Freedom card.... hassle free, I highly recommend it.

Posted by:texashaze |September 21, 2011 at 12:07 PM

And not one mention of the Costanza Wallet?

Posted by:David C |September 21, 2011 at 12:57 PM

2 personal credit cards, business credit card, Barnes and Noble, REI, and Sam's club discount membership cards, drivers' license, health insurance card, some of my business cards, a few business cards of others, couple of gift cards I need to remember to spend, a few receipts for purchased items I might want to return, misc cash, cash, stamps, and band-aids (yeah I'm a mom). That's all in my wallet.

I also always carry a checkbook and a smart phone with my addresses, calendars, and notes on it, all in my purse, obviously. My purse also contains other critical items including a comb, lipstick, medications, kleenex, my keys, pen and paper and, when I travel, a laptop and a bottle of water.

I am always amused by the people who brag about how light they travel compared to me. But they ask the woman with the purse when they need a pen, kleenex, aspirin, and a bandaid for that papercut they just got so they don't bleed all over the place during the presentation!

Posted by:MC |September 21, 2011 at 01:07 PM

MC --

Ha! That's probably why I can carry so little -- my wife has all the "extra" stuff with her. ;-)

Posted by:FMF |September 21, 2011 at 01:09 PM

David C, I made an indirect reference to it...sitting on a slant. My friend is not morbidly obese, but it's uncomfortable nonetheless.

Posted by:Jonathan |September 21, 2011 at 01:40 PM

I have found that I have been carrying around a lot of store club cards with me that have been adding to the girth of my wallet. Tried to go CardStar app on my phone to store them all but few of the store scanners can read the bar code off the phone. When it works it is great but when it doesn't you are stuck in line with the tab all run up and you lose money without the card. I hate the little fobs that are suppose to go on your keyring (rather have the discomfort on my backside rather than jabbing me in the front side from my keyring in my front pocket!)
I understand the medical insurance cards but I am curious as to why people have their auto insurance card in their wallet. I have always kept my insurance with my registration in the car glve box not on my person in case someoen else is operating the vehicle.

Posted by:Arimack |September 21, 2011 at 02:20 PM

sometimes magnetic strip on Cards (Not only credit/debit, but driver license / lib. card etc.) gets eroded if you have too many cards in clip

Posted by:Jani |September 21, 2011 at 02:53 PM

Too much:

5 credit cards (3 too many, waiting for Schawb card to die on 10/31) incl. business card
ID
Parking Card
National Emerald Club Card
$$$
3 bank cards (need to get rid of 2)
Dental and health cards (do I need these?)

Wow... I need a money clip and to get rid of most of this stuff.

Posted by:tom |September 21, 2011 at 03:51 PM

I used jcrew's magic wallet. It's amazing! Fits everything I need for my card strategy, and is a great size. And I buy it at the outlets, so it's cheap too.

Posted by:KTB |September 21, 2011 at 03:55 PM

1 drivers license
3 photos
4 business cards
4 credit cards
3 debit cards
7 store/misc cards
25 other various cards and misc items
7 receipts
$89 in cash

Yeah its WAY too much and I have a bad habit of carrying all that junk around all the time.

Posted by:jim |September 21, 2011 at 04:40 PM

Drivers license
2 Credit/debit cards
AARP card
Professional registry card
American Heart Assoc. BLS card
Health Insurance card
Small piece of folded paper with important phone numbers.
$125 cash
3 cards for free McDonalds stuff. 1 free value meal and 2 cups of coffee.

I could probably take out the AARP card. I haven't found a discount with that yet.

I don't carry my wallet very much. I usually just leave it in my truck, and if I go shopping I put it in my pocket, and after that put it back in the truck.

When I vacation/travel I carry a thin wallet with 1 debit card and cash. I carry it in my front pocket.

Posted by:billyjobob |September 21, 2011 at 07:43 PM

I have all the usual cards, insurance, credit cards, store rewards, ATM cards, license, car registration. Too many. Some receipts. I clean out the wallet occasionally to pare back but over time stuff creeps back in. I have a big wallet. Besides the cards and cash I carry:

An extra key to my car and condo. This has saved me when I locked my keys in the car or forgot to take my key when I left home.

A small list of phone numbers for relatives, work and emergency numbers. Good for if something happens to me and someone needs to contact my family or work.

A list of all my prescription medicines and doses.

A matrix list of my rewards credit cards with a summary of the rewards with the spending categories in specific months that get me the 5% cash back.

Some of my business cards.

Extra Metro fare card.

Posted by:Kathy F |September 21, 2011 at 11:00 PM

Too much stuff in my wallet.

Only 1 credit card.
Debit Card
Health Club ID
2 Grocery store rewards cards
Health/Dental/Prescription Insurance Card
Vision Insurance Card
Library Card
A half dozen of my own business cards to hand out
Drivers License
Concealed Carry permit
Motorcycle registration and insurance cards

Posted by:Jon |September 22, 2011 at 08:55 AM

I use a view slimmy.

Posted by:td |September 22, 2011 at 04:48 PM

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Taking a Private Boat Vacation

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Taking a Private Boat Vacation

A few weeks ago my kids and I were watching House Hunters on Vacation when the family had the normal choice of which of three places to stay in for a week. Only one of the choices was non-traditional. Instead of a house it was a large yacht -- complete with its own crew (two people, I believe). We all immediately said how cool the ship was and that we would pick it if the choice was ours. So we were happy when the family selected it as well.

Given that experience, I was interested to read Smart Money's take on private boat vacations. The basic idea is that people rent boats -- either with or without a crew -- and spend their vacations on them instead of in a hotel.

I actually considered this option as I've looked at our Caribbean vacation. It might be something we do one day, but I think the cruise will work better for now. Why? Because the "renting a ship" idea is:

More expensive
Limits what you can do (you have fewer choices of non-boating activities)
Won't get to as many of the islands we'd like to see

That said, there are a lot of pros to renting your own boat (and crew -- I wouldn't rent just the boat since I know little about boating) such as flexibility to go where you want when you want, a week on the water (CLOSE to the water -- not like on a cruise liner), and so forth. In addition, with the poor economy Smart Money says that boat operators are more willing to negotiate, making this a more reasonable option price-wise.

Has anyone ever taken a boat vacation (or looked at doing so)? What did/didn't you like about it? Any tips for the rest of us?

Posted on September 22, 2011 at 03:45 PM in Consumer News | Permalink

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I have not done this and have no tips, but this is totally my dream. I'm looking to get a sailing certification soon, and want to rent boats locally for recreation thereafter, but I'd absolutely love to go spend a week or 2 sailing the Caribbean in a 40-foot boat once I get some experience.

Posted by:Jonathan |September 22, 2011 at 06:52 PM

Vacationing on a boat? Count me in!! This sounds great!

Posted by:The Calculator Dude |September 22, 2011 at 10:19 PM

A friend did this. Four families on a nice boat on a fishing-oriented trip somewhere in either northern Minnesota or Canada (if I remember correctly). They LOVED it.

I believe that he said it came out at about the same cost as a cabin on a lake in the same area.

Posted by:Mike |September 23, 2011 at 03:38 AM

I did this! In the 1990's out in Seattle, I rented a large sailboat with 7 other graduate students for a week. We sailed up into the Straits of Juan de Fuca (Canada) and back. I think the rental cost was something about $800 per person--around $6500 in 1991.

It was really an adventure, but looking back now I think we were not aware of the potential dangers! I'm not sure I would do this again.

The Straits are really beautiful but are also home to major shipping traffic that smaller craft have to avoid, thousands of tiny islands and shoals, channels and currents that make navigation treacherous, and water that is very cold making survival problematic if you capsize. Also storms are common. A couple of my friends were experienced sailors and I guess they had some charts and things and had thought it through--I sure didn't--I was just along for the ride.

But we had a problem with the boat's motor not being in good condition--typical rental I guess. The motor failed altogether one night as we were trying to navigate against the wind around a point, during a storm. We couldn't make it around the point, or to any harbor, with just sails in the gale, so we dropped anchor and, after waiting in the dark for about 4 hours on a bucking boat in 30 foot seas for the storm to die down (it didn't), we finally had to radio for rescue by the coast guard. Thankfully the radio worked at least and they came and towed us in to safety. Besides the danger it put us in, it took us 2 days to get the motor repaired before we could going again.

If I ever did this again, it better be a really new boat! Hiring at least one crew member with the boat would be a good idea too.

Posted by:KH |September 23, 2011 at 04:54 AM

I have not tried to rent a boat, but I have been on both Caribbean and Bahamas cruises. I don't go for too much adventure so I think I would prefer it rather than the boat experience.

Posted by:Cherleen @ yesiamcheap |September 23, 2011 at 08:57 PM

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Winning My Battle with Debt with Contests

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Winning My Battle with Debt with Contests

The following is a guest post from Matthew Fletcher, author at Contests for a Year.

I have a thing for hummus. I can go through an entire container in one sitting, though I try to leave just enough at the bottom so I don’t feel like too much of an addict. And there’s one particular brand that I’m absolutely in love with: Sabra. One afternoon while inhaling enjoying Sabra and pita chips, I noticed that the container was advertising a contest. Make a commercial for them and you could win a trip to the Mediterranean as well a year’s supply of their chic-pea ambrosia. Amazing! So I decided to take a dip into the world of contests. I shot the commercial, submitted it, and won. Here’s the video:

(PS- That’s me playing the Borat-type hummus lover in the Greek dancing costume. Opa!)

After the trip and my year’s supply of deliciousness, I had developed a new appetite…for contests. I entered a few more, and won those too! Now I was winning cash. It got me thinking that maybe I could get serious about this and use contests to develop an additional source of income. I mean, it worked for Julianne Moore in “The Prize Winner of Defiance, Ohio” (It’s a B-minus movie, but a total A-plus true story about a woman who kept her family afloat by winning competitions in the 1950’s).

So, I started a blog where I enter an online contest every day for a year to see if I can win money in order to get out of debt.

So far, in 2011, I have won exactly $12,338 in cash and prizes. I have been able to put a lot of that towards my debt and have paid it down by about a third.

I’ve won for shooting commercials, creative writing, random sweepstakes and submitting crazy photos.

The world of contesting is vast. Companies host all kinds, ranging from the very straightforward to the totally bizarre-o. I’ve entered ones where I’ve wrapped myself in gold foil while playing tennis, guessed the cost of shipping a stuffed tiger (it’s $310,FYI) and designed a horse themed birthday party for girls who are horse mane-iacs. Some of the prizes are big, like the 10 grand I won for a Barbie commercial. And some of them are small, like the musical download I won of the Hot Pockets jingle. (Yup, that jingle. It was in my head for days…I nearly had a Hot Pocket melt down).

One of my best sources of winnings has been from the website Tongal. They are a commercial creation website. Through them, I’ve won over $11,000 by submitting concepts and commercials for Benjamin Moore, Lipton Iced Tea, Mattel, and Robert Half.

Do I always win? No. Do I think I should? Hello!!

Do I think that contesting is a smart and viable way to get out of debt? Well, somehow in my magical Hogwarts mentality, I actually think it might work. I’m showing up every single day and doing something towards getting out of debt. I’m not hiding my debt in a dark corner and pretending that it’s going away. I’m taking an active role in trying to reduce it.

Now maybe my debt solution approach might be a little fantasy-like, sort of like hoping that the doorbell will ring and it will be Publisher’s Clearing House outside (although I did enter that one, and do kind of think that that might happen. I should probably get an outfit ready for the photo op). But rather than living in fear and shame of my debt, I’m accepting and addressing it. I mean, first off, I’ve admitted to the world on-line that I am actually in debt, which is an important first step into getting debt free. I think that looking at it straight on, on a daily basis, has helped me to put it in perspective. The stigma is gone. A lot of my friends are in debt. They feel suffocated by it and ashamed. In talking about it with them, (and blogging about it) the pressure is released, and I find that I can begin to deal with it in a less hysterical way.

Do I recommend that other people enter contests to get out of debt? Absolutely not! That would totally decrease my own odds of winning (I’m just kidding…well, kinda). I’m good about sharing the wealth. I always post links to the contests on my blog.

If you are going to enter contests here are a few suggestions:

Do your contest research and find what suits you best. There are LOTS of different contests to enter, listed on of various websites and blogs (photo contests, video contests, recipe contests, guessing games). You can do a search for these websites, or even do a search for exactly what you want to win (win money, win a free sofa, win a trip to Spain).
Pay attention to the different rules for contests. Some of these contests ask you to get votes for your submission from your friends. This is a way for the companies to get more people’s information. This could either launch you into financial success (if you win) or ostracize you from all your friends and family for continually badgering them about voting (speaking from experience here).
If you enter a sweepstakes, enter as often as possible. There are people out there who are professional ‘contesters’ who do this practically as their day job and are submitting on a daily basis. Get in as many entries as you can.
Beware the evil contest taxes. You can’t claim your prize and just say “Thanks guys!” That Macbook Air you won?…there will be a prize tax on it come April 15th.

Contesting and blogging offers me a number of things. It gives me hope. Hope that I’ll be able to wipe out my debt once and for all. And although hope isn’t an action plan, it definitely helps me keep a healthy perspective. The blogging gives me a sense of purpose and direction in relation to my debt; I am actually doing something towards knocking down that beast of a number. And if I do it right, I get some cash. Then I can continue to pay off my debt in large (or Hot Pocket sized) chunks and maybe, just maybe, start to buy some nice things again: like the party sized tub of Sabra. Have you tried the stuff? I mean, I don’t even know where to begin. It’s hummus heaven.

Posted on September 22, 2011 at 10:45 AM in Debt, Making Money 2011+ | Permalink

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Meh not a fan of hummus, but winning I love! I can't believe you've won that much from contests! Where do you find em all?

Posted by:Jon | Free Money Wisdom |September 22, 2011 at 04:32 PM

Eep missed the part about Tongal. That's crazy though..congrats.

Posted by:Jon | Free Money Wisdom |September 22, 2011 at 04:33 PM

Sabra hummus with Stacy's Pita chips is the ultimate!

Posted by:texashaze |September 23, 2011 at 10:03 AM

In the 1980's I entered lots and lots of sweepstakes. The last 2-3 years, I won much more than I spent. However, I never won money. Usually the other gifts - 2 Black & Decker Under-the Counter coffee pots, a set of luggage that will last forever, children's gifts, books, a Buck Knife, and on and on and on.

I also won 2 r/t tickets on American Airlines to anywhere in the U. S. These and jewelry and furs are ones to avoid if possible. On the airline tickets, my daughter and I flew to Phoenix to visit family. The taxes on airlines, starting that year, per the IRS, had to be the regular charge for a flight that had no "no fly" dates, etc. I was notified that I would have paid $1,760. for those 2 tickets. Cost me nearly $500+ in taxes, state and federal. The tickets did have "no fly" dates and I could have flown on another airline for $300 for both those tickets. One of my losses. The IRS did this because most airlines have too many prices that are negotiable and cause loss to the tax base. Ha!!

But - it was fun and I loved to come home and check the mail each day and often have a win.

Posted by:Georgia |September 23, 2011 at 02:21 PM

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Build Your Own House
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Don't Mess With Taxes
Eliminate The Muda
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