The Debit Card Generation
By Robyn Collins

When is the last time you paid cash for a latte? If it was today, you are in the minority. Debit card purchases are at an all-time high as it becomes easier and easier to simply swipe to pay. The convenience of a debit card is unquestioned. However, there are some backlash effects to this trend.

Depersonalization of money: as we begin to touch our cash less and less, we forget that it is actual money. We do not see it dwindling in the same way as those who carried a money clip as they peeled off bills to pay their way. We don’t feel the lightening of coins in our pocket as we purchase a soda. It is a case of not believing because we do not see. This can be detrimental to your financial life.

When is the last time you opted not to purchase something, instead of seeing if you could get the card to run,—since you don’t know your actual balance anyway. Probably, you take a chance, see if the card will go through. Unfortunately, debit card companies allow this because they can charge hefty fees. One friend of mine ended up with $350 dollars in overdraft charges because of this. One $1.65 coffee was $36.65, and he and his wife collectively accrued 10 charges this way. Now, the good part is that they avoided being embarrassed, but seems like kind of a high price to pay to retain your dignity.

How to make your money personal again:

There are online services that you can utilize to track your expenditures, your income, progress in your various accounts, etc. There are even a few that go farther and have created communities that allow users to share victories and confessions with one another in regard to their finances.

One such company is Geezeo, (www.geezeo.com). Their analysts share trends and common pitfalls. The social element offers the accountability that most of us need to help us make better choices. The flavor of geezeo is friendly and approachable, with a “Heya, Robyn” when you log in and copy that makes you chuckle while you count your pennies. Options to set particular savings goals and debt reduction plans make this user-friendly site a pleasant part of your money management plan.

There are other products, like Quicken and Microsoft Money that also allow users to track their finances on their computer. They offer similar services, and are excellent ways to follow your spending, and adjust your patterns of financial behavior.

If you are not watching your dollars leave your wallet, and you’re not tracking your status on your computer either, chances are that you are going to have a problem sooner or later. This generation, that is so used to throwing down the plastic for immediate gratification has the potential to inflict pain on itself and society with its potential for bad debt. On the other hand, technology and efficiency can be the greatest gifts when we are attempting to get a handle on managing our money. Using the tools effectively to know yourself, your money and your spending habits is crucial to your eventual financial freedom.

What about international debit card use?

You have to be on the alert when traveling from the US to other countries. Like banks in the US, International ATM machines will charge a fee when you use your debit card at an ATM that is not owned by your bank. The amount is determined by the ATM owner. Most fees are under $5, a notice on the ATM machine will tell you what the fee is. More than $2 is too much, and you should look for another ATM machine.

The real fee problem with a debit card comes from your own bank, because the card issuer may charge you up to 3% for a foreign transaction, including an ATM withdrawal. Call your bank before you leave your home country. If you don’t like the fee, you might call around and ask what other banks are charging for foreign transactions made with a debit card.

The bottom line, you are in charge of your financial destiny. There are tools out there that can help you along the way, but at the end of the day, you have to be educated and diligent when it comes to managing your money. The more up close and personal you can get with your expenditures and incomes, the greater chance you have for making your money work for you instead of against you. Be personal with your money, watch what it’s doing online, and be aware of secret and surprise charges and expenses. You are the only one looking out for you, be diligent with the hard earned money in your care.

Robyn Collins is the author of Prepare to Be a Teen Millionaire, a contributing writer to Millionaire Blueprints magazine and the senior editor of Millionaire Blueprints Teen magazine, a columnist on several sites, including The Leader World Online magazine. To contact Robyn regarding writing and speaking requests, email robyn[@]mbteen.com. You can also reach Robyn at the Geezeo group, Millionaire Blueprints Teen.

Can “going green” give you more greenbacks? Here are some earth-saving, and wallet-saving tips courtesy financial planner David Bach (the guy who made “latte factor” a phrase).

• $50 per year on your energy bill by buying an EPA “Energy Star”-rated washing machine—and cutting your water use by 7,000 gallons a year at the same time

• $72 a year on your water bill by turning off the faucet while brushing your teeth, installing low-flow showerheads, and buying a dual-flush toilet (conserving 9,200 gallons of water)

• 30% on energy bills by getting an energy audit (reducing CO2 emissions by 9,545 pounds a year)

• $798 a year in gas by keeping your car well maintained (while keeping 5,800 pounds of CO2 out of the air each year)

• up to a third on many groceries by buying in bulk (helping reduce the 80 million tons of packaging that ends up in landfills each year)

• $40 annually by switching to recycled toilet paper (if we all did this, we would save 19 million trees a year) and $45 over the lifetime of a light bulb by switching to Compact Fluorescent Bulbs (CFLs)

• $94 a year on electric bills by buying a $35 power strip and eliminating the energy drain known as “phantom load” that accounts for 5 to 15 percent of your monthly electricity bill

• $8,580 a year by ditching one car completely

• $215 a year by using public transportation instead of a car for just one errand a week (if we all did this, we would collectively reduce carbon emissions by 149 million tons)

Just think what would happen if you invested the difference… for more similarly-themed ideas, check out Bach’s book: Go Green Live Rich.

Happy Earth Day! Discuss your earth-friendly, wallet-friendly tips at the Geezeo group Greentrees.

photograph: Lisa Solonynko

How do you become a millionaire by thirty (or hey, even earlier?) Could you do it if you’ve passed the 3-0 mark?

The book I read this weekend explains an unconventional approach. The book is “Millionaire By Thirty: The Quickest Path to Early Financial Independence”, written by best selling author Douglas R. Andrew and his twenty-something sons, Emron and Aaron. Douglas Andrew is known for his book series “Missed Fortune”.

The beginning of the book lays the groundwork for sound financial planning. It’s a great encapsulation of what an individual can do to build a strong financial future. One big concept is to “use credit to conserve, not consume”. Another is and the concept of arbitrage in real-life application.

It is the middle and last half of the book that really stands out as unconventional. The book illustrates how you can use real estate mortgage(s) and life insurance to grow your net worth. Many view a mortgage and the cost of life insurance as shackles to growing wealth. The Andrews, however, present these as the key to a building a strong fiscal foundation. There method is likely a concept different than most you’ve heard before (unless you’re already familiar with the “Missed Fortune” series). The Andrews compare the benefits of this tandem approach to other long-term savings vehicles. They end up with a pretty compelling argument.

My only complaint is that the book’s additional online material isn’t yet online.

The book is written in a clear and concise manner. Still, for anyone who is new to some of these concepts it is well-worth owning this book so you can read and reference it multiple times. The book challenged the way I view some expenses (like my student loans). In the end gave me a new way to think about debt. For that alone the book is highly recommended!

GET A COPY! I’ve got 2 copies to give away. I’ll give it to the first two Geezeo users who send me an internal Geez-mail with a link to their group or goal. Make sure to include your mailing address. Good luck!

Discuss these and other books in the Geezeo Group Bookworms Unite.

Who wants to be a millionaire? Just about everybody. But only a small percentage of people ever get there. You’ll find out why in Seth Godin’s book ‘The Dip’, a fabulous read for entrepreneurs and intrapeneurs. ‘The Dip’ is written from a business perspective but the concepts Godin writes about can be applied to any area of your life to help you stay motivated and focused on your goals. A Dip can occur in business, relationships, a fitness routine, a diet, school, your career, and your finances.

The Dip is the place we all reach when our project, job, or relationship stops being fun and we can no longer coast forward on the energy of enthusiasm. The Dip is when it’s time to dig deep and work through the pain or boredom so we can reach the goals we’ve set for ourselves. The Dip is the point in time we are most likely to quit the journey. Although, according to Godin, quitting is a good thing if we learn to quit the right things at the right time.

He also talks about the dreaded Cul-de-sac. You’re in a Cul-de-sac when you work very hard only to end up in the same place again and again.

So what kinds of Dips do we face when trying to reach our financial goals? What’s the difference between those who beat the Dip and those who end up in a financial Cul-de-sac? And when is it a good idea to quit your current strategy when it comes to managing your money?

Clearly for most Americans living within our means is hard. If it was easy then the national savings rate would be high and 60% of us wouldn’t have credit card debt. Putting together a plan to save money and get out of debt can feel exciting and empowering in the beginning. Once reality sinks in though, reaching your goal can feel like chipping away at a glacier with an ice pick. That feeling of overwhelm is what makes us vulnerable to giving up. In fact there are whole industries built around telling you to spend more than you’ve earned. We’ve been very conditioned to think that whatever our problem, spending is the answer.

Beating the Dip financially means keeping your mind focused on a larger goal and avoiding behaviors that will put you in the Cul-de-sac. Have you ever rewarded yourself for saving with a new gadget or expensive shoes? Think it’s alright to charge a few things here and there since your balances are low again? If you answered yes to either then you might be on your way to a house in the Cul-de-sac. Assuming of course you can afford one.

Did you make a bad investment or a dumb move with your credit? Have the courage to face that and quit before it costs you too much. According to Godin, quitting when you’re on the wrong path allows you to free up time and money for finding the right path. If you know you’ve landed in a Cul-de-sac then quitting is absolutely vital. The critical lesson of the book however is recognizing when you’re in a Dip and not letting the pressure cause you to quit something of value. If you can keep the big picture in mind and not be distracted by temptation or ego then you can eventually achieve your goals, financial and otherwise.

Being a Geezeo user already gives you an edge over those who haven’t chosen to make their money a priority. We’ve got free tools and a whole community of people to help you get through your Dip. And we’ll all be here to applaud you on your first million so don’t quit!

Commit to your financial goals! Declare and share on the Geezeo goals page.

“…every single human being will have to employ business principles on a regular basis.”

You can’t fault us for being curious about millionaires. How do you become a millionaire, anyway? We were delighted to speak to a young, self-made millionaire and author named Alan Corey.

Now meet Robyn Collins. She had a simple yet brilliant concept. Ready? Why not just ASK millionaires exactly how they did it? This is the foundation of her magazine “Millionaire Blueprints - Teen”. As the name implies the magazine is aimed at teenagers. Like it’s parent publication “Millionaire Blueprints”, it maps out the precise steps others have taken to reach millionaire status.

Robyn, you have a mission to make as many young millionaires as possible — how did this begin?

We realized that teens were not being taught business or financial principles in schools (for the most part). Thousands of dollars and hours are invested in sports and other extracurriculars by individual families, most of which will not be carried into adulthood; while every single human being will have to employ business principles on a regular basis. It seemed tragic to us that the future leaders of our country were not being prepared for success. It was something we could not keep from doing. We want to be sharing their blueprints next.

What advantages do teens and young adults have over others when it comes to building a million-dollar empire?

They have the distinct advantage of having little or no overheard or personal expenses, they haven’t accrued a lifetime’s worth of debt from financial mistakes and maybe most importantly, they have massive built-in social networks. Through schools, clubs and associations, not to mention the endless availability of social networking options, their reach is the widest it may ever be, if they learn how to work it to their advantage.

You produce the magazine “Millionaire Blueprints: Teen”. How does this magazine align with the goals of the parent magazine, “Millionaire Blueprints”?

Both magazines are written as step-by-step instruction guides, following the path of an already successful millionaires. The difference is that those profiled in the teen magazine made their first million in their teens. In both magazines we stay true to our goal of equipping people for their own millionaire status with the inclusion of resources. If you read a story about a guy with a t-shirt company that made millions, you’re also going to have the contact info of his suppliers, his distribution choices, his lawyers, his accountants… everything you need to get started in whatever business we just profiled.

Tell us a little about your book, “Prepare to be a Teenage Millionaire”, hitting stores now?

It’s a collection of the success blueprints of 7 different millionaires. The magazine typically will profile 2, or 3 at the most, these are called “Blueprints”, the step-by-step methods they used. In the book, you get 7 of these blueprints, and it is also infused with helpful articles, like how to trademark something, 15 steps to attaining venture capital, you get the drift… things that will actually help people be successful.

What was the most surprising thing you learned from the young millionaires you profiled?

The most surprising thing was how willing to share their knowledge each young millionaire was. They truly, honestly wanted to teach people how to do what they’ve done. And maybe that Ben Cathers [featured teen millionaire] loves the Smashing Pumpkins so freaking much!

Where can we get your book or magazine?

You can get Millionaire Blueprints at Barnes and Noble, and most grocery stores across the nation.
You can subscribe to Millionaire Blueprints Teen at www.mbteen.com.You can purchase both books: Prepare to Be a Millionaire and Prepare to Be a Teen Millionaire at Barnes and Noble, amazon.com, Border’s and at www.preparetobeamillionaire.com and www.preparetobeateenmillionaire.com

Wow, great resources, Robyn! Thanks for taking the time to speak with us.

For the parents out there: I bet the cost of the subscription or Robyn’s book is a small investment in Junior’s ability to take care of you in later life, haha! And for the rest of us… it’s never too late to be a teen millionaire…even if you’re on the other side of 30. It’s all attitude and diligently pursuing goals.

Find young-at-heart millionaires-in-training in the Geezeo Goals section.

How does America express itself through shopping? Is it normal to be overwhelmed and stressed out by choice? Concerned if your choice is a “good deal”? An example might be $4 prescriptions at Wal-Mart. Smart personal savings choice, or bad social spending choice?

I was curious to know because I’ve been to the extremes. Some aspects of shopping are enjoyable but overall I find the task stressful and occasionally depressing. Even the smallest purchase makes me reflect carefully on my finances and how this relates to the larger world. “Good buys” and “bad buys” aren’t as simple as they might first appear.

The development of cultural attitudes behind shopping are unearthed in Thomas Hine’s book, “I Want That! How We All Became Shoppers, A Cultural History”. The reasons he explores range from power and responsibility, to self-expression, taste, insecurity, and a sense of belonging.

Some fascinating tidbits, from the chapter titled “Insecurity”:

Teens and adolescents spend more on clothing than any other group. This includes males. Boys claim not to have an interest in fashion because doing so isn’t considered “cool”. Yet, they seem to know just as much about clothing as teen girls, perhaps more. (page 100).

Minority women in their early twenties spend more income on clothing than white women. Are they trying to “fit in”? No, Hine concludes, “African-American women aren’t trying to look like white women; they believe they look better.” (page 101) Minorities tend to agree more than white culture that being fashionable is a sincere form of self-respect.

Here’s the group I identified with: “the role-relaxed consumer”. Writes Hine:

“These people don’t appear to have an insecurity about their buying habits. They are aware of what other people are buying and wearing, but declare that they make their consumption choices based on other standards. Some of them even devote a bit of effort to being out of style….In the end, though, this anti-fashion attitude is seen to be, itself, a kind of fashion, one that can generate sales. (page 102)

Do we automatically absorb these attitudes? Where do they come from? What is the cultural history on “indulgence”? Another example, this time about trends toward “simplicity” (page 155):

The most revealing “Real Simple” article was about the pleasures of taking a nice, hot bath. The necessities for achieving “pure pleasure” in your own home included a chrome towel-warmer, a plush mat, a terry tub-pillow, a storage cabinet, a lamp that casts a gentle glow, a plywood tray that holds sea sponges, a sisal exfoliating cloth, and a dark bristled Acca Kappa brush. By the third page of the article, we’ve already spent more that $1,000, and we haven’t even reached the teas, the oils, the salts, or the milks, nor have we purchases a single towel”.

Nor, I might add, have we even drawn the water.

If you are evaluating your spending habits this is a fascinating read. Now ask yourself, should I buy this book or borrow it from the library?

Interested in shopping (new or used), or in books? Join us in the related Geezeo discussion groups.

Geezeo would like to welcome three new folks to our team — Amber, Chelsea, and Christina.

You’ll find Amber helping us answer your questions in Live Chat. Or, you might find Amber in our Groups, or participating in our blog. She’s runs the Geezeo group “Financially Frugal Families” - check it out. Welcome, Amber!

Chelsea and Christina are our newest writers. You’ve seen their work already in two articles. Chelsea contributed an articles on the cost of pre-school and kid’s birthday parties. Christina wrote “Don’t Let the Gotchas Get You”. Welcome, Chelsea and Christina!

Quick, who would you choose? The Brady Bunch, the Cosby’s, or the the Jetson’s? Oh, you say, I can’t really see myself as part of any those families…

So maybe you’d like to be part of this TV family! Geezeo user Michael K. Farr, author of “A Million Is Not Enough,” is seeking participants for his new show. For details, see his Geezeo group, “Seeking a TV family”.

60 Seconds & You’re Hired! by Robin Ryan is a lifesaving book! This book offers you help to get through those really tough interviews and land that job that you have always been searching for. My mum told me she was sending me this book in the mail and the whole time I just kept thinking, “I don’t get it mum, you don’t think I can get hired without reading a book!?” Even when I received the book in the mail, I was so stubborn that I didn’t even look at it…instead I just placed it on my bookshelf and went on with my life. It wasn’t until I received an e-mail that I was put through to interviews that I started to get nervous and though, “Hey! I can’t really hurt me to check out that book!”

Personally, I think the interviews are the scariest part of getting a job. I get so nervous that I can’t even remember what I’m doing in that little interview room anymore! You really never know what the employer is really looking for in your answers…you can get so caught up in nerves that the answer you want doesn’t really come to you…and you never know if the answer you actually give is good or bad as they employer rights notes on your resume in front of you! This book REALLY helped me out to calm my nerves before my interview. It gives really great advice and it a true lifesaver! It is so easy to read and follow, not like some of the other books that offer advice on getting jobs!

The description on the back of 60 Seconds & You’re Hired! reads:

Whether you’re just starting out, moving onward, and upward, or reentering the job market, 60 Seconds & You’re Hired! explains the most effective strategies for getting the jobs you want at the salary you deserve. By following these tips from America’s top career coach Robin Ryan, you can land the perfect job by excelling at the crucial job interview. Brief, compact and packed with useful tips, 60 Seconds & You’re Hired! provides the essential inside information job-seekers must have.

60 Seconds & You’re Hired! offers the following help:
1. A “5 Point Agenda” to Stick To
2. Your Personal “60 Second Sell”
3. Hiring Trends
4. Interview Etiquette
5. 60 Second Answers to Tough and Tricky Interview Questions
6. Salary Questions that You Should Ask
7. Other Questions You Should Definately Ask the Employer
8. How to Negotiate the Best Deal
9. 15 Different Types of Interviews
10. Pitfalls to Avoid

…and much, much more to help you with your interview process! Believe me, when I tell you this book really helped me I’m telling the truth! And I think it can help many other people too! It calmed my nerves, it gave me great tips and advice, and provided me with information that before I hadn’t even thought about. The interview tough questions section and suggest ways to go about answering the question was the biggest help. Also, although I already knew this…sending a hand-written thank you letter to the employer can really help you move forward instead of being dropped from the interview process…it is a way to show you really care about the job position and that the interviewer took the time to help you out! Don’t forget the little things, an e-mail will be forgotten, but a thank you note they actually have to open and read (and it only takes about 5 minutes out of your day)!

If anyone else has any other great books that they have read, I would love to know! I love to read…I made the mistake of starting a book for leisure during my Midterm period and I just can’t seem to put it down (BIG mistake)! haha, for all you romantic novel lovers out there…(and this is totally off my topic) but the book is called P.S. I Love You by Cecelia Ahearn. The movie just came out but my friend told me to read the book first. So, check out these two great books on COMPLETELY different topics…but both amazing! :o)

Have you ever thought this? Or wondered why every time you go out to eat with you-know-who the bill, plus tip, comes up short? Or maybe you’ve got another awkward social money moment? This is the book for you.

“Isn’t It Their Turn to Pick Up the Check: Dealing with All of the Trickiest Money Problems Between Family and Friends — from Serial Borrowers to Serious Cheapskates” by Jeanne Fleming and Leonard Schwarz takes a humorous yet helpful turn on what to do about all sorts of problems.

For example (page 90):

We can’t afford to return a favor.
When you need to reciprocate a rich friend’s generous hospitality.

Advises Fleming and Schwarz:

“Stop thinking you can’t reciprocate, because you can. Your obligation is not to treat your friend to something of equal value, but to treat him to something thoughtful that he’ll enjoy…[The] point here is not to that you need to match [his] hospitality dollar for dollar. Rather, it’s the disparity in your resources doesn’t free you from your obligation to entertain [him] as thoughtfully as he’s been entertaining you.”

For me, this book brought up some sticky situations I hadn’t even considered. For example, what do you do if your neighbors intentionally annex part of your property to make theirs look more valuable? Or other neighbors keep their homes such a mess it draws down the value of your own?

More comforting was the realization of how common it is to have great financial disparity between relatives. Turns out it’s pretty common to have rich aunts or poor cousins (or vice-versa) all in the same family. What kind of tension can that bring? How do you handle it? And even if no one likes to talk about it, what happens when one adult sibling makes considerably more or less than the other?

What are your money problems? Confess them publicly or privately in Geezeo’s Money Confessions. Or, write D. Expert, our resident expert on all manner of monetary b.o. His advice stinks but he usually finds the right person to answer your question. Finally, don’t overlook the Geezeo groups — there are a lot of patient ears just waiting to hear your perspective on most things social or financial.