Beware the Insidious Power of Marketing

Advertising is powerful. Avoiding it — in print, on radio, on television — is one of the best ways to control your urge to spend. When you willingly expose yourself to commercial pitches, you risk spending more than you intend. I've posted two articles recently about how marketing manipulates us to buy things. Allow me to belabor this point one last time before I move on. It's important.

Corporations manipulate us in subtle ways. We know television commercials are designed to sell us things, but how many really understand that their power is felt primarily at a subconscious level, beneath awareness? It's not that a Taco Bell commercial makes you go buy a chalupa now; it's that weeks later you'll find yourself pulling into a drive-thru when you could have been home in a few minutes preparing a salad.

The other day I wrote that people who watch the Super Bowl just for the commercials may be sabotaging themselves. But it's not just television — marketers target us constantly. I could just as easily write about my own foolish choices. Every time Steve Jobs gives a keynote address, for example, I follow the live text updates. When the speech is over, I download the video. I willingly expose myself to these marketing machinations. And wouldn't you know it? My life is filled with Apple products. (My mind is working overtime trying to find a way to rationalize an iPhone.)

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More about...Psychology

Six tips for money-making hobbies

You can make money from your hobby.

Whether you knit, or write, or make photographs, or grow a vegetable garden, or tinker with cars, or build websites, or collect ancient coins — you can make money from your hobby.

I'm not saying it's possible to get rich by playing your violin at weddings, or by weaving baskets from pine needles, but earning money from a hobby is a nice way to get paid for doing something you would do anyhow. Continue reading...

More about...Side Hustles

Original income tax form from 1913

In 1913, Wyoming ratified the 16th Amendment, providing the three-quarter majority of states necessary to amend the Constitution. The 16th Amendment gave Congress the authority to enact an income tax. That same year, the first Form 1040 appeared after Congress levied a 1 percent tax on net personal incomes above $3,000 with a 6 percent surtax on incomes of more than $500,000.

— A Brief History of the IRS

It's February. Tax season is in full swing. Employers, banks, and investment firms have mailed out W-2s and 1099s and other miscellaneous tax documents. These are beginning to pile up on kitchen tables across the country. Over the next few weeks people will sit down to puzzle out their tax situation. Continue reading...

More about...Taxes

24 Craigslist tips, tricks, and resources

Yesterday The Consumerist pointed to a couple of Curbly posts about how to buy stuff on Craigslist [one, two]. These articles have some good tips, but I think there's more to say.

My Craigslist Experience

Cragislist is one of the seven wonders of the internet. You can use it to find a job, buy a car, get a date for Saturday night, and sell that old couch. The site is free to use for almost everything. It's community-policed, which means spam is taken down as users flag it. Kris and I made extensive use of Craigslist when we bought our new house. Over the past three years we've purchased:

  • 67" x 36" antique mirror with beveled edge: $45
  • Another mirror, battered but okay: $20 and a long wait in traffic
  • Solid cherry Dania shaker desk: $175 and buyer's remorse
  • A housekeeper to perform a final, thorough cleaning when we moved out of our previous house: $75
  • A futon bed/couch in excellent condition: $100
  • "Cool, stout wooden chair" for my smoking porch: $25
  • A 30 x 60 folding table: $30
  • Two shelving units stolen from Borders by disgruntled employees: $20
  • Free-standing metal cabinet that matches those in our kitchen, delivered: $75
  • Newer double bed with metal frame: $50
  • Doctor's balance scale: $30
  • Box of 40+ wine glasses: $20
  • An old rototiller: $50 (which I sold two years later for $30)

We've also swapped some stuff, too.

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More about...Side Hustles

Are index funds the best investment?

Three piggy banks in the sky

For 35 years, Bay Area finance revolutionaries have been pushing a personal investing strategy that brokers despise and hope you ignore. [This is] the story of a rebellion that's slowly but surely putting money into the pockets of millions of Americans, winning powerful converts, and making money managers from California Street to Wall Street squirm.

So writes Mark Dowie in a recent issue of San Francisco magazine. Dowie describes how Google prepared for its IPO in 2004. Aware that hundreds of young employees would soon be millionaires, the company brought in a series of financial experts to teach them to make smart investment choices.

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More about...Investing

Making the most of cheap cuts of beef

You don't need to buy a side of beef to get cheap, great-tasting meat. Excellent inexpensive steaks and roasts are available at every supermarket. Here's a brief guide to common cuts. The information in this article is derived from two Cook's Illustrated pieces: "An Illustrated Guide to Beef Roasts" (Nov/Dec 2002) and "Tasting: Inexpensive Steaks" (Sep/Oct 2005).

Inexpensive Steaks

These steaks were priced $6.99/pound or less when Cook's Illustrated tested them in 2005.

Best Cuts for Pan-Searing

Boneless shell sirloin steak (a.k.a. top butt, butt steak, top sirloin butt, center-cut roast) — Very tender texture and beefy flavor. Look for a one-pound piece of uniform 1-1/4 inch thickness. Continue reading...

More about...Frugality, Food

I do not use credit cards

I don't like credit cards. Many smart people — including my wife — use them wisely and never have problems. I'm not one of those people. Most of my money woes stem from credit card debt acquired when I was first out of college. Eventually I wised up — I have not carried a personal credit card in more than five years.

NCN at No Credit Needed has posted a detailed list of the reasons he does not use credit cards. He writes:

I have not used a credit card in over two years. So far, I have yet to find myself in a situation where I had to use my credit card. (I still have one, active, credit card account. I keep my card tucked away in my wallet. I'm not sure it actually works anymore. I do not plan to find out.) I do not advocate closing credit card accounts. I have an account that is open and in good standing. I just don't use it. What have I learned about NOT using my credit card?

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More about...Credit

How a wellness coach whipped me into shape

Three months ago I wrote about the high cost of being fat. I had spent $4500 over four years because of my weight. The problem wasn't just costing me money — it had caused sleep apnea, a torn ACL, and mild depression, three conditions which eroded my quality of life.

Then a reader issued a challenge. Lauren Muney wrote to provide her services as a wellness coach free for one month: "I'm offering this to you because I've been reading your blog daily and I want to give back," she said. She continued:

Most people think that coaching is bull. It's amazing how much money people will spend on diet books, fad equipment, diet pills, and the like — and never budge an inch. I just talk to my clients. They drop 10, 20, even more pounds of weight, plus they retain the weight loss and make life changes they never thought possible. But it is they who do the work and they who take the glory. I know you understand the value of getting rich slowly but carefully. It's the same with fitness and lifestyle changes — the good stuff is slow, but it sticks.

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More about...Health & Fitness

Facing and Fighting Financial Trolls

Money is more about mind than it is about math — that's one of the fundamental precepts of this site.

If you improve your self-esteem, if you improve your mental attitude, if you improve your knowledge, you will improve your finances. To this end, it's important to avoid negative messages about money. It's difficult to improve your mental attitude when you're besieged by financial trolls.

What are financial trolls? In a recent article, Steve Pavlina shared five wealth lessons, the last of which was: financial trolls must be shown no mercy. Pavlina writes: Continue reading...

More about...Psychology

10 Ways to Save Money on Books

I used to spend thousands of dollars a year on books, most of which I never read. Recently I've begun to trim my book spending. I spent nearly $3000 on books in 2003, but that number dropped to $700 last year. How did I do it? Through self-discipline and some common sense tricks.

1. Avoid new releases

New releases sell at a premium. Sometimes you can get them cheap at Costco or Amazon. It's best to avoid them completely. Put them on hold at the library. If you're tempted to buy a newly-released book, ask yourself: "Why do I need to own this now? Can I wait?"

2. Read reviews

Reviews help separate the wheat from the chaff. It's a terrible feeling to spend $25 on a book only to discover it's awful. Amazon is an excellent source for reader opinion. I also like Metacritic and The New Yorker. Find a source that you trust, and rely upon it to screen books.

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More about...Books, Frugality