#252: You Are Powerful; Use It! (Friday, October 28)

"You can lead a horse to water, but a pencil must be lead."

This week I heard the story of The Mouse Trap. Many people have asked me about my opinion on the Occupy Wall Street movement, and I think this story summarizes perfectly my feeling on the subject. See, my opinion is not the popular one; I don't think we're here because of "corporate greed" and "political incompetency." Yes, those things contribute to the economic crisis we find ourselves in, but I think this could have been avoided if there were more consumers who were "mice." Alas, most of us are "chickens, pigs and cows" who generally don't act until the situation affects us personally or hits close to home.

The Netflix situation is a perfect example of how consumers can use their power to effect change. The company lost 800,000 subscribers in three months and that made them pay attention and revert to more consumer-friendly practices. Here's how you can use your consumer power:

1. Stay informed. Whenever corporations are deciding to implement new policies, they usually do a test run or conduct focus groups. I set up a Google Alert for my bank so I know whenever they're in the news.
2. Ask questions. Even if the company you give your business to isn't the one conducting the test, if their competitor successfully implements a policy, it'll only be a matter of time before they follow suit. Remember the story of The Mouse Trap; even if it doesn't seem immediately apparent, it may ultimately affect you! Call your company ask questions.
3. Take individual action. Don't assume someone else is protesting or taking action. Each individual has their own power. If you are a good customer, a company will not want to lose your business. I've gotten reduced rates, fee waivers and other perks just because I chose to take action.
4. Spread the word. You'd be surprised how many consumers may be in a similar situation. Discuss your experience with family and friends, in public forums and via Twitter and other social media outlets. No company wants negative publicity.

As a consumer, you have enough power to change corporate policies. Use it to your advantage.

#251: The Right Thing vs. The Easy Thing (Friday, October 21)

"It betta fi lose yuh time dan yuh character." - Jamaican proverb, meaning "It's better to lose your time than your character."

Sometimes the stars align and you get an opportunity to do the right thing and it's easy. But more often, one supersedes the other and it requires a proactive and conscious effort to choose to do the right thing.

This is especially true when it comes to your finances. It's always much easier to get the immediate gratification of spending than to save. I was truly inspired the other day when I watched this story about a family of four who are DEBT-FREE and live on one teacher's salary of $40k. 

I'm sure it can't be easy, but they did what was right for them and their family. And they are raising their kids to be financially aware as well; the kids have to divide their allowance into 3 jars: one for spending, one for saving and one for giving. What a fantastic lesson!

Every day we have to make decisions that will impact our future. Will you take the easy road, or will you do what's right?

#250: The Best Investment (Friday, October 14)

With all the focus on Wall Street, unemployment, corporate greed and the like, a lot of people don't even want to hear the word "investing," let alone think about putting their money in an investment.

Yet, ironically many people with portfolios or those who are thinking of investing often overlook the most important (and the best) investment: themselves. It sounds like a silly concept, but if you're thinking of putting money into companies hoping for a greater return in the future, why can't you put money into you?

So how do you invest in yourself? Consider these opportunities:

• Are you healthy? You can only be your best if you're healthy--both physically and mentally; this is the most important part of investing in yourself.
• Do you take time for yourself? Many of the best portfolios have active managers who rebalance the portfolio when it departs from its original investment objective. Are you doing the same for yourself and taking time to regroup and re-evaluate your goals?
• Is your resume up to date and ready to go at a moment's notice? Opportunity only knocks once and if you're not ready, it could pass you by.
• Are you willing to spend money to improve yourself, your image and your opportunities? Consider memberships to organizations in your field, or in the field you're trying to get into; learn a new skill or a skill related to what you do.
• Are you monitoring your network and ensuring that it contains a diverse group of people? If your network contains only individuals that are similar to you (race, gender, age, industry, culture, etc.), you're doing yourself a great disservice.
• Are you involved in initiatives that are aligned with your goals?

Happy investing!

#249: Life Is Happening; Tune In (Friday, October 7)

Last week, I was watching an episode of The T.O. Show, a reality series about football player Terrell Owens. He has been having some financial issues after a "friend" stole his debit card and going to town with it. He's also been having some difficulty locating his financial advisor, who seems to have just disappeared off the face of the earth. And to top it off, he hurt his knee; with the NFL lockout, his age and (let's face it) his controversial history, he's not exactly first pick for many teams.

In this episode, he was selling one of his homes and breaking the news of his financial struggle to his family. My first reaction to hearing the story was disbelief. I just couldn't understand how someone, especially in his position could a) let another person have such unlimited access to his bank card; b) not realize that so much money was being taken from his account; c) not have a person around him who would catch this situation before it became so huge.

And then I got it. When you're surrounded by people that you trust, you let your guard down. You become careless. You assume that if you don't catch it, others around you will. The problem is that many of those "others" are making the same assumption so it becomes a case of diffusion of responsibility. But you have to tune in. Be alert and don't be afraid to ask questions. And check the backgrounds of EVERYONE who manages your money:

• For accountants: Check your state's board of accountancy, or check the IRB List published by the IRS' Office of Professional Responsibility for a list of disbarments, suspensions, resignations, censures for attorneys, CPAs, enrolled agents and enrolled actuaries.
• For investing: the Financial Industry Regulatory Authority (FINRA) has a wealth of resources for investors. From education materials to investor alerts to pre-investment tips; you should definitely go here first. There is also a BrokerCheck feature that allows you to see your financial advisor's licenses, customer complaints history etc.

Please use your resources and be alert!