Life

I was having lunch with a friend the other day - seemingly in the middle of a good conversation - when he pulled out his Blackberry and started thumbing away at the keyboard, staring intently at the little device as if I had suddenly vanished.  Poof.  I’m gone.  Conversation over.

“Hey, still there?”, I inquired.  He nodded but was still glued to his tiny screen, as if God were about to text him the Dow’s performance for the next year.

“I was suprised you ate that big ball of hair that was in your salad”, I commented to him.  “Was it good?”

“Yeah, good lunch”, he replied distractedly.

Now I am the first to admit that I can sometimes be a bit verbose, but normally my friends will smile and say “yeah, I remember you telling me that” to move the conversation on.  They seldom transport themselves completely out of the discussion into some other digital world to speak abbreviated languages to people they barely know.

Cell phones and PDAs have certainly helped people connect in many ways, but they have also transformed many of us into distracted, communication-addicted zombies - and unfortunately have added an entirely new level of rudeness into society.

I have a new iPhone.  It is my first foray into portable e mail and texting, and I see how the addiction and corresponding rude behavior develops.  I sometimes feel myself slipping, my hands grasping the sleek little device, wanting to log on just to see if anyone is looking for me or to check how the market is doing. I haven’t connected digitally with anyone for minutes!  Important stuff could be happening!  Would the person I am with notice if I just checked it quickly? 

Of course they would. 

I’m in another restaurant the other day.  There is a father and child sitting next to me - Dad and lad out for a day of bonding.  But lad is sitting distractedly  - figeting while Dad types away on his Blackberry - oblivious to his son, and the fact that his current parenting skills will help develop a rude little man that prefers video games to people.

If you attempt to have normal human interaction while chatting on an electronic device you are missing the wonder of real conversation, you are probably not comprehending important info, and you are being incredibly rude.

Two months ago after spending two weeks preparing an important presentation, I spent $1200 to fly 2000 miles to present to a potential client.  Throughout the presentation the clients stared down between their legs.  At first I thought they had some kind of personal fixation on their genitals - but they turned out to be Crackberry addicts - typing away while I wasted my time and a very expensive presentation. 

And in a twist of fate (and another sign of the current economic turmoil) one of the clients is now out of a job - and contacted me looking for work.  For some reason I can’t even remember what they look like - my only memory is the top of their head as they stare down at the screen between their legs, and the sinking feeling that I wasted a lot of time and money, and I probably would not want to work with such a rude client anyway.

Even very successful bizzy people like to save money, especially in this economy.  With the spending season rapidly approaching, here are a few tips and techniques that will save you cash and time during the holidays:

Shop Online.  It saves time, gas, parking fees, frustration, weird encounters with guys dressed like Santa, and the annoyance of having to wrap and ship gifts, since they do it for you, and most of the sites are pretty efficient!  Also, with our current economic state I would expect great discounts this season! To save some money, first go to a shopping rebate site.  I have written about these before, and I am suprised more people don’t use them.  They are easy-to-use sites that conglomerate major shopping sites.  When you click through, they register your click and rebate you on everything you purchase.  Depending on the sites, some of the rebates are up to 10% or more of your total purchase.  A couple favorites I have mentioned before - www.fatwallet.com, and www.ebates.com.  Otherwise, Amazon continues to be the premier shopping site for almost everything.  Unfortunately you will not find them on either of the above sites, but their prices and service more than make up for it.  I suggest signing up for their “Prime” program which allows free two day shipping.  You pay a yearly fee for this, but if you are buying a lot of gifts it more than makes up for the fee.

Get a Rebate Credit Card.  Of course, we all know that the credit card industry is a Weasel-infested corporate cesspool that charges ridiculous fees and steals from the poor!  OK - maybe not the entire industry…..  But, if you are smart and pay your bills you can actually play the credit card biz to your advantage.  First point - if you are carrying credit card debt - stop reading now as you should not be even contemplating buying Christmas gifts. Bake cookies.  Send a coupon good for an hour of your time to clean the attic. Write them a song.  But don’t spend money!  The best gift you can give your family is to be personally financially stable - so don’t increase debt to buy gifts!  But, assuming you do pay your bills on time and in full every month, consider one of the new cash rebate credit cards.  I was a fan of airline cards, but the points get more and more difficult to use, and I think the best deal around is a cold, hard cash rebate.  My personal favorite rebate card is the Chase Freedom Card (and here is a site that gives you a $50 rebate on the card) - www.chasefreedomnow.com  This card rebates you from 1 to 3% on every purchase.  They have a really easy to navigate website, and when you have accumulated $200 in rebates they will actually send you a check for $250.  Their customer service is also the best I have encountered with a credit card company.

Look For Coupons.  There are dozens of couponing sites that often offer great discounts from your favorite online and traditional stores.  The easiest way to find a discount?  Just Google what you are buying and “coupon”.  For instance, last month I needed new tires. I Googled “Firestone Tire coupons” - and found a coupon good for one free tire with the purchase of three - which saved me $200.

Use American Express Rewards for gift cards.  Another idea if you are an American Express Membership Rewards member. If you are like me you have been accumulating points to transfer to airline programs.  But as covered earlier most of the programs are really difficult to use and return less than 1% (that should be the minimum goal of your credit card rebates).  So consider purchasing gift cards with your Membership Reward points - and specifically look for the cards that redeem at 1%.  Then buy gifts with those cards (a better choice than giving them as gifts as a lot of people loose them or don’t redeem for other reasons).  A few good choices available from Amex that redeem at 1%: Home Depot, Pottery Barn, and Banana Republic.  There are dozens to choose from.

Negotiate.  If you had the good sense to read my book Warriors, Workers, Whiners, & Weasels (By the way - you can click to the right - go right to Amazon, and get a great deal on this essential personal and professional management tool.  It also makes a wonderful gift!), you know the following:

1. I’m not afraid to shamelessly promote my book.
2. I am a firm believer in the concept that everything is negotiable.
3. I like titles with lots of W’s.

The big point here as you shop.  Almost everything is negotiable - even in stores you would not think it possible.  A couple months ago I negotiated a discount at a Brooks Brothers Store.  Feel free to ask if an item is going on sale, if they are running a promotion that is not reflected in the price, etc. Often they will offer dramatic savings, and it is relatively painless.

About fifteen years ago while doing some advertising work for Philips Electronics, I went to the Consumer Electronics Show to meet with company officials and see some of their newest developments.  I was ushered into a secret room and shown the “entertainment system of the future”.  At it’s heart was a 42 inch plasma screen television.  Though they are commonplace now, at the time this was one of the most futuristic things I had ever seen.  A huge, thin television that blended into the wall.  The Philips people assured me that in the near future every home would have one, which at the time seemed decades away, since the initial price was $15,000.  I had no idea that this technology would play a key role in the current economic crisis.

Well, as we all know now the flat screen is now the standard for new televisions, and many homes do have them.  While the price has fallen drastically from $15,000, they are still pricey (hovering a little over a thousand to several thousand).  They are still gorgeous to look at, and it is no wonder that consumers are captivated by them and need to own one or two.   I own several. Fifteen years ago the average “home theatre” consisted of a 19 inch TV that could be purchased for $199.  Now many homes have huge plasma screens and sound systems that cost thousands or tens of thousands of dollars.

And how did America pay for these home wonderful techologies?  Many families tapped into their home equity and essentially took out long term loans they could not afford to purchase luxury items that would last a few years.

The causes of our current economic meltdown are and will be widely discussed.  Certainly there is a lot of blame to go around.  Deregulation, greed, idiot politicians, excessive Wall Street compensation, silly and complicated financial instruments…… they all play a big part in the problem. But despite all the factors that created this perfect storm in the financial market, the real essence of the issue is that people bought a lot of stuff they could not afford.  The average American went on a buying binge.  They bought houses that cost two or three times what their salary could support.  They filled them with expensive “stuff” - including plasma televisions.  They lost control of their spending, and assumed that rising valuations would somehow bail them out at the end of the day.

And now it has all come crashing down.

My parents, both depression-era self-made people, were very conservative financially.  They resisted all debt.  That meant no credit card debt, no installment loans….. the only debt they had was their house loan, and it was a fixed-rate fifteen year loan that they paid off early.  The idea of buying a house you could not afford, “stuff” to fill your house, and then using your home to leverage that debt would seem incredible to them.  Their mantra was “only buy it if you can afford it”. They were disciplined. They bought used cars until they could pay cash for a new car.  They understood - as the country in learning now -  that debt is your enemy and a form of slavery.  If they needed extra money for something, they found a way to make some extra money.  They didn’t go out and borrow.

And when my Dad finally did buy a plasma television a few months before he passed away, he paid cash - and still complained about how much it cost until the day he died.

So America is suffering now because of our lack of fiscal control.  Like teenagers with a credit card, we went crazy, spent more than we could afford, and we have to figure a way out of the mess.  And this will result in a profound change in the way most people live. 

And here’s the ironic sidenote to the plasma television.  It was reported last week that the process of manufacturing them creates excessive amounts of methane gas that is leading to more global warming.

You’ve probably been so captivated by the global financial meltdown that you have forgotten about the polar ice cap meltdown.  There are so many meltdowns happening right now it’s getting tough to know which one should make you the most paranoid and depressed.

But while the Washington braintrust is tackling problems, perhaps they should give a little thought to cow farts. The gaseous old men in Washington might actually have special talents in this area.  My guess is that W and Dick Cheney are quite accustomed to gas attacks.  I can even envision Bush yelling at Cheney with delight as he enters the Oval Office - “Wyoming, get over here and pull my finger”.  But back to the topic. 

Unfortunately, when cows “poof” - or belch for that matter - they expel huge amounts of methane gas.  And experts pinpoint methane gas as a main contributor to the greenhouse effect.  In fact, they estimate 18% of the greenhouse effect is due to methane gas.

Now to be fair to cows, their gas is not the only source.  Sheep, goats, even water buffalo expel the toxic gas.  Certain plants emit it.  But cows are among the worst offenders, since there are over 1.2 billion cattle in the world, and the number is growing.  I love steak, but perhaps we all need to cut back on our carnivorous diets and eat a few more salads.

Entrepreneurs might see this as a great opportunity.  Beeno for cows?

My brother-in-law Don called this weekend to express his thanks for The Bizzy Life.  A couple months ago after reading guest blogger Ray Link’s entry - Why Investing In Stocks Might Be A Bad Idea - he decided to move his savings from the market into cash, and of course now he could not be happier.

Ray, Don sends his thanks for your sage advice!

As the election heats up there is a lot of focus on which potential President will raise taxes.  McCain say Obama will raise taxes - Obama admits he will raise taxes on the rich, but versus the McCain plan will lower taxes for the middle class.  One could argue that given the fact our country is going broke we probably all need to pay more taxes, but according to the Tax Policy Center here is how the candidates really compare:

If you make        you would save under Obama          under McCain

Less than $19,000                $567                                      $21

$19,000 - $36,600               $892                                      $118

$36,600 - $66,400               $1118                                     $325

$66,400 - $111,600             $1264                                     $994

$111,600 - $161,000           $2135                                     $2584

$161,000 - $227,000           $2796                                     $4437

So the clear fact is that if you make less than $111,600 per year (as most of America does), and you vote strictly based on which candidate will hit you with the lowest taxes (or on the surface what appears to be the lowest taxes), then you should vote for Obama.  However, wealthier Americans only concerned with Federal taxes will clearly like McCain more.  Take a look at how the tax rates compare if you are among the top 5% of earners in the US:

If you make                      pay more under Obama       save under McCain

$227,000 - $603,400             $121                                          $8159

$603,400 - $2.87 million       $93,709                                     $48,862

More than $2.87 million         $542,882                                    $290,708

So, if you make $1 million a year, under Obama your taxes will increase as much as $94,000, but under McCain you will get a tax break of $48,000.  This is all very confusing to me, as McCain’s supposed base - the straight-talking heartland of America - typically does not make huge amounts of money, so financially you would assume they would be in Obama’s camp.  They are also justifiably upset by greedy Wall Street “big wigs” - the people that make millions per year and tank our economy.  But these are the folks that would benefit most by a McCain Presidency.

Personally if Obama wins my taxes go up.  But I agree with an earlier post by Ray Link that there is more to making money than the tax rate.  The value of my investments has plummeted under an administration that believes in little or no regulation and tiny tax rates for the rich.  I’m hopeful that by paying more in taxes my asset base will grow, and I will sleep a little better at night.

I begin this blog with the admission that I am not a sports fan. Much to my wife’s delight, I don’t spend my weekends watching sports on television (unless somehow Wii fitness counts). And while I think that the concept of the Olympics is a great thing, I don’t watch them, track them, or really know anything about them. But as a sometimes fine American I do feel an obligation to have an Olympic-themed entry, and accordingly I was pleased when guest blogger Ray Link (a guy who does spend his weekends watching sports) sent the following:

Ray’s Analysis of Track Versus Swimming At The Olympics:

Please don’t take this wrong. I am a purist when it comes to the Olympics. I think Michael Phelps is fantastic, a credit to the United States, well deserving of the fame and riches that will be bestowed upon him. But he is not the greatest Olympian of all time.

Why do I say this? Simple – there are just too darn many swimming events that a swimmer can compete in compared to a track athlete. At last count, there are 15 swimming events a “sprinter”swimmer can compete in, versus just 8 for a track sprinter, and that includes 2 hurdle events and the long jump. I have defined sprints as any individual or team event 400 meters or less. Plus, the swimmers have a 50 meter event while the track athlete has the 100 meters as the shortest event.

Swimmers have a decided advantage, as they have the freestyle, the backstroke, the breaststroke and the butterfly. While last I saw, the track athlete has just the “run as fast as you can in any one style of your choice”. They do not have the run backwards, the hopping, skipping and other variations of style where each event gets medals.

In my view, the greatest Olympian is still Jesse Owens, as he won 4 track gold medals, all in world record times in the 1936 Berlin games. Remember he did this as an amateur, without the aid of extensive free training, and he was under immense pressure, in front of an extremely hostile crowd. If he could have entered more events, he most likely would have won many more medals.

About the Author: Ray Link is a CPA and holds an MBA from Wharton. He is EVP/CFO of FEI Company (NASDAQ: FEIC), a world leader in tools for nanotechnology including the Titan, the world’s most powerful electron microscope. He is on the Portland State University Business Advisory Council and on the Board of Directors and Audit Committee for Cascade Microtech (NASDAQ: CSCD) He also watches a lot of sports. Baseball, basketball, swimming……. I’ve even seen Ray spend hours watching billiards!

I begin this entry with a broad apology to my numerous “very moral” lawyer friends, and the many lawyers I must unfortunately pay to protect me and my company from those that would use the law to keep from paying their bills, avoid their contractual obligations, and perform other immoral actions.

OK - that might have a “holier than thou” sound to it. Certainly any of us might get into legitimate disputes with no clear winner or one side that has the lower moral ground, and it is wonderful that we have the law and lawyers to arbitrate such disputes. I also believe that left unchecked, the system always has the potential to overrun the less fortunate and those that can’t afford proper legal firepower. We are lucky that we have bright very moral lawyers willing to step forward and protect them, the basic tenants of the legal system, the environment, and certain aspects of our society and political system that might otherwise be endangered. So the title of this entry is certainly not aimed at everyone that passed the bar.

However, as one that has been involved in many legal disputes over the years, I am constantly struck by how smart lawyers can manipulate the law to help their clients do some very immoral things. It seems there is a fine line between providing “the best possible legal defense”, and assisting a client with some pretty nefarious and scummy actions. [click to continue...]

It seems like the environmental train might finally be leaving the station! While there is an enormous amount of political and technological work to be done, a national movement towards solar and wind energy seems to be gaining momentum. Yesterday the Oregon Department of Highways announced they would be installing solar panels in highway divides to power lighting on the roads. The Columbia Gorge may soon feature the largest wind power development in the world. In a few months it’s being reported that we can look forward to a Toyota Prius that features solar panels to recharge batteries.

And as an owner of a solar-powered house I can add a personal testimonial. I just received my power bill for last month for the electricity to power a 3000 square foot house. The total - 14 cents. The bill to heat the swimming pool - zero - thanks to the solar water heating system.

Over the next few years there will be enormous debate over how to finance the needed solar and wind infrastructure, but we all have to consider the long term financial implication that makes a renewable power system different than most other investments. The sun and wind cost nothing, and when we pay off the hardware needed to produce the power, our major investment, aside from maintenance, is over, This is far different from fossil-based fuel systems that must be continually fed with an increasingly expensive declining resource.

Outfitting your house with green energy systems can seem a daunting expense, but with today’s high energy prices you can have a pretty quick payback when your electricity for a month costs 14 cents!

Not that I want to turn this into a blog about cell phone enhancements, but…..  Cha Cha is one more really interesting free cell phone enhancement I recommend.  Just call 800-224-2242 (take off your call block first if you have it) and your questions will be answered!  Not quite sure how the economics of this service work, but you can call Cha Cha - ask any question you want - and within a few minutes they will text you the answer.  This service becomes a bit addictive as you try to stump Cha Cha with weird or difficult questions…

• Is JD Salinger still alive?
• Who is the President of Brazil?
• What’s the most common name for a male dog?
• How tall is Tom Cruise?

Cha Cha is like a really smart friend hidden inside your cell phone.