Overdraft protection (1) Jul 31, 2008
One time when I was in college, I tried to use my debit card to buy something and was told by the cashier that my card was being denied by the payment system for some reason.  I figured out shortly thereafter that I was broke, and the debit card machine correctly denied me from making a purchase.  In plain English, my bank said, "You're trying to get money from where there's no money.  You can't do that." 

Fast forward several years.  I have a job, tons of money (compared to when I was in college), and am sharing a bank account with my wife.  One day I make the simple mistake of transferring some money to savings, and the next day we get hit with five separate overdraft protection fees.  There would've been more, but apparently we (or automatic bill pay) only tried to access our money five times in that 24-hour span.  In plain English, my bank said, "You're trying to get money from where there's no money.  We'll charge you for that, so now you'll have less than no money." 

Overdraft "protection" is broken.  What exactly am I being protected from?  Accessing my lack of money?  The correct course of action when there are insufficient funds should be denial.  But since we live in America, people spend money they don't have, and banks offering free checking need to have some form of income.  I personally wouldn't mind if overdraft protection was abolished.  But since I know it won't be, I've changed my life around to never use a debit card to buy anything.  Credit cards to the rescue.  At least they have credit limits. #money
Paid parking (4) Jul 25, 2008
Charging a person for space in which to park a vehicle is the easiest way to make money by doing nothing.  It's one of those things that would get me really angry if I thought about it long enough, so I usually just don't think about it.  The thing that's great about paying for parking is when there's absolutely no choice in the matter.  It's not like you have a choice between paying $10 for a good spot, $5 for an ok spot, or $0 for a far away spot.  It's all one flat rate.  This happens with things like baseball games in the middle of nowhere.  There's no possible way to walk there, so every person will inevitably come in a vehicle.  There's no other place to park, so every vehicle will inevitably park at the field.  And instead of including an extra $5 or $10 in the price of the ticket, every carload of people is unpleasantly surprised by the fact that they're forced to pay for parking.  There's no way out of it.  You either pay or you leave.  God bless America. 

Maybe it's similar to why airlines charge for food and headphones.  Giving things out for free means everyone will take it and not think twice about it.  Charging money for it forces people to decide if they really want it, and in many cases they choose a different option, like buying their food from somewhere else or bringing their own headphones.  That makes sense in terms of parking because there's always limited parking.  Charging people for parking forces them to carpool, which frees up spots for more people. 

But in reality, they should just make bigger parking lots or taller parking garages.  Or they should build their stadium right next to a train station.  Either way, being charged for parking is just another reason why many people don't feel bad about urinating and dumping garbage all over the parking lot.  If you're charging money to park there, you surely have people to clean everything up.  What goes around comes around. #money
Tax it Jul 3, 2008
Former Hollywood madam Heidi Fleiss has this to say about prostitution: 
"Look, it's going to go on. You're never going to stop prostitution. The way to do it is to regulate it. Clean it up a bit. Make it fair--fair for the girls, fair for the clients. At the end the government gets money out of it."

(via Kottke)
Regardless of my views on prostitution or any other illegal activity (no, I'm not a client), I couldn't agree more.  Things like prostitution, drugs, and a host of other illegal activities will happen whether they're illegal or not.  Rolling Stone did a story on the drug war and estimated its cost at around $500 billion over its 35-year history, with the end result being that drugs are now even cheaper and easier to get.  The conclusion:  It was a total waste of money and the war on drugs failed.  If people want to smoke pot, they'll find a way.  And many pot-smokers will never get caught or go to jail or move on to harder drugs or kill their families. 

Getting back on topic, my point here is that instead of spending all this time and money enforcing laws like this, we should just legalize a few things, and tax them.  Can you imagine how many people would be in line for our nation's first federally-regulated (and taxed) Marijuana Store™?  Holy crap.  Or how about picking up a prostitute on the street corner ... of Times Square in NYC ... in broad daylight?  Of course she would need to be registered with the city, but the client wouldn't have to sneak around some back-alley red-light district and run the risk of getting shot.  So not only would our nation be saving money on enforcement (and with it, jail time in already overcrowded prisons), we'd be gaining money through tax revenue. 

I'll admit it's quite easy to come up with a counterargument to this, and here are a few: 
  1. Which laws would we abolish?  All of them?  How would we decide which laws were legitimate (cocaine trafficking) and which ones were stupid (j-walking)?
  2. Legalizing prostitution and drugs is a slippery slope.  How would our nation maintain any semblance of order or law?
  3. Illegal activities often go hand in hand with other illegal activities.  Won't legalized drugs lead to more gang violence?  Won't legalized prostitution lead to more sexual abuse and/or a general downfall in our nation's values?
These are all excellent arguments that deserve careful consideration before any decisions are made.  And even if a decision was made, how would it be enacted?  All of a sudden, certain things are legal?  That would lead to chaos and anarchy.  Nevertheless, I think it's an interesting proposition and I still support it.  If I ever run for president, this will be my platform:  Legalize It and Tax It. #money
Ripoff via convenience Jul 3, 2008
It's one thing to charge a lot of money for something you don't have a lot of and only offer to customers as a convenience, like a $5 toothbrush at a convenience store or a $3 bottle of water from a street vendor.  But it's an entirely different thing to charge $18 for a buffet breakfast at a hotel, simply because (a) you know most companies will pay for it, and (b) there's nothing else around.  This is directed at you, Radisson Hotel in Hannover, Germany.  You should be ashamed of yourself and your crappy overpriced breakfast. #money
Secondhand clothing myth Jul 2, 2008
Similar to the suggested myth that foreign aid helps end poverty in developing nations, PBS reports that secondhand clothing has effectually destroyed the firsthand clothing business in countries like Zambia.  We were just trying to help.  (via Kottke) #money
Don't buy me dinner (7) Mar 24, 2008
Wendy and I went out to dinner with another couple on Friday, and when the bill came, the other guy took it.  He said, "I got it."  I gave him the "why are we even doing this?" face and said, "Let's split it."  He refused.  I insisted.  He refused again.  I conceded.  Insisting again would've been taking things too far, so I let him win his little game.  I couldn't understand why he didn't at least want to split the bill.  If anything, we should've paid for them.  They're poor.  They're saving for a wedding.  They're really not in a position to be buying people meals, even if it was at a cheap pizza place.  But what really gets me is that, without question, the next time we go out, our side of the table will absolutely be obligated to pay.  And more than likely, we'll go to some expensive Italian place, order seven bottles of imported wine and dine on the finest of seafood and filet mignon, and during the whole meal, I'll be hating everything you do and say, knowing I'll have to pay for the calories that enable you to exist in the first place. 

Bottom line:  Don't buy me dinner unless it's completely clear that I owe you nothing.  I hate feeling obligated. #money
Obvious financial advice Feb 8, 2008
I occasionally read snippets of financial advice online, and there's one thing that keeps coming up:  Make sure you look over your bank and credit card statements to check to see if you were overcharged or charged twice or anything like that.  To me, this is probably the stupidest advice I could possibly read.  Ever since I opened a bank account, I've always kept track of my finances.  I didn't know there was a choice.  Perhaps it's my unending cheapness, or maybe it's my general distrust of human beings, especially when it comes to my money.  My opinion is that if you're stupid enough to not track your finances, you deserve to have your money taken from you don't go crying to your mommy when something gets screwed up. #money
Money shortage (3) Sep 12, 2007
Let me preface this by saying I've never been short on money, at least not in the life-or-death, lose-my-car-and-house kind of way.  I don't own a BMW and I'm in a considerable amount of manageable debt, but I've never really been short on money. 

But I know people who have been.  The thing about people who are short on money is that there are two distinct types.  There's the type of person who's just having a bad week, month, year, or life.  They get in a car accident the same day they lose their job.  Then their identity gets stolen and they file for bankruptcy.  These people are unfortunate.  I feel bad for them.  Nobody plans for these things.  This type of money shortage is legitimate, and whatever complaints they have are deserved, and whatever subsequent actions they take are understandable. 

Then there's the other type.  I referred to these people a little in my previous post.  These are the people who complain about not making rent while driving around in a new car and going out to bars on Friday nights.  They complain about being broke while researching solutions with their Optimum Triple Play (TV, internet, phone, ~$100/month) and using some of their 5000 cell phone minutes.  They dread the idea of living with a roommate or moving in with their parents, even temporarily, saying, "I just need my own place."  To these people, I'd like to give some advice (since I probably wouldn't say many of these things to a person face-to-face, I cowardly yet boldly write them on my website): 
  1. As Mick Jagger says, you can't always get what you want.  Depending on your situation in life, you legitimately might not be able to afford to live by yourself.  This is especially true if you're a resident of New Jersey or some other financially hyper-inflated area.  This is also true if you're 22 and you just got a job.  Wait a few years; maybe you can afford it then.  If not, throw out your pride and get a roommate.
  2. Perform a reality check to determine what's actually a necessity and what's not.  Do you really need an internet connection at home, or can you do internet things at work?  Would you rather watch the latest episode of House or eat dinner this week?  I can kind of understand if you need your uber-expensive cell phone plan, but if it's a choice between buying gas to drive to work and paying for a cell phone, I'd opt for the former because it basically determines the latter.
  3. You can't always buy nice things.  Nice things are for people with money.  There exists a whole world of things that can be bought at cheaper prices, and nobody's gonna look down on you if you buy a "vintage" t-shirt from a thrift store.  It might actually look like the really expensive ones, in which case it'd be a double-whammy:  Stylish clothes, and for pennies.
  4. Have a budget.  Figure out how much money you make and how much you need to spend in order to survive (food, clothes, shelter).  Then buy things or go out.  I'll admit I didn't have a budget when I graduated college, and I blew through money like nobody's business.  If I hadn't been living with my parents, I could've potentially run into some trouble down the road.
  5. Bars aren't a necessity.  I don't know if I'm the only person that knows this or not, but beer can be bought at a much lower price from a liquor store than from a bar.  You can still pound a few 6-packs, but do it at your place instead of a bar or club.  This isn't rocket science.
#money
Lending people money Sep 12, 2007
Let me preface this by saying I've never lent a person money.  Hence, this post will be extremely narrow-minded and one-sided.  That being said, here it goes. 

I'm not opposed to lending people money.  I can understand if a person is in a ditch and needs a little boost to get out.  It's understandable.  Stuff happens.  Life isn't always predictable, and money doesn't grow on bonsais. 

However, if I was to lend a person money, there would be a few terms to the agreement.  For one, I wouldn't necessarily need to be paid back, unless the amount was followed by three or more zeros.  I have bills too, people.  Second, I think I should have at least some say in how the money is used.  If you say, "I don't have enough money for rent this month," I wouldn't expect you to use my money to support your heroin addiction.  However, I'm not opposed to lending money for the sole purpose of splurging.  I would be ok with saying, "I know you don't have much money, so here's $50.  Go nuts."  Third, I think I should have at least some say in how you run your life.  This is the most important part.  If you say, "I don't have enough money for rent this month," I reserve to right to point out the fact that a person who's short on money doesn't need high-speed internet or new timbs.  He/she doesn't need cable TV, an all-inclusive cell phone plan, and three nights out partying each weekend.  I have no desire to be the moral authority in anyone's life, but if I'm giving my money away, I expect at least a shred of common sense.  If you can't afford to pay your rent or other relatively necessary expenses, you shouldn't be affording life's amenities.  And I don't consider things like gym memberships and alcohol consumption necessities.  Disagree with me if you want, but don't expect to borrow any money from me. #money
Big bills May 22, 2007
In February of 2007, 1300 residents of Weatherford, Texas received electric bills saying they owed billions of dollars. 

In April of 2006, a Malaysian man received a $218 trillion phone bill after he canceled his deceased father's phone line. #money