People don’t read in a predictable, orderly way.
That is number ten in a list of fifteen called ‘Powerful Psychological Secrets of Direct Mail.’  Sounds interesting huh!  Anyways why I am bringing up number ten here?  Because it is the first one that I read.

The actual paragraph says, “People seldom read in a linear fashion, beginning to end.  They skip around, try to find meaning quickly, and usually don’t read closely unless they are interested.”

Why did I go directly to this one part of the list?  It was in the middle of the page, but it does not jump out any more than any of the others.  The others are not significantly more or less interesting or valuable.  I randomly stopped on this one, and it happened to describe exactly what I was doing.

So apparently randomly reading portions of papers and emails is closer to the norm than I thought.

The credit card industry has been booming over the past few decades. Why not? They offer a service that many love to utilize. American’s have utilized it to a tune of about 70 Billion dollars at last check. But, what a deal. Buy now, pay later. No money, no problem. Well, I guess that depends on how you look at it. Or, perhaps from which side of the fence that you stand on. From the credit card companies side of the fence, it is awesome. From the consumer’s side, it can be a little frightening. Don’t get me wrong, credit cards can be a great thing. They are the future. I see a day when cash will not be utilized at all, where all transactions are made on plastic. And although the bottom line is that credit card companies will always have the upper hand, that does not mean that credit cards cannot be a successful financial enterprise for the consumer, as well.

Knowledge is the key to success. The more you know about your credit cards, credit scores and how to play the game, the better your odds of success. Here are 6 things credit card companies would rather you didn’t know.

1. 1. Some credit cards come with a Universal Default Clause. This is where it becomes vitally important that you read the small print. This clause simply states, that if you are late on your payment, your interest rate can automatically rise as high as 30%. Here is the kicker. Even if you are late on another credit card, not even with the same company, with this clause, they can still raise your interest rate. Do not use cards with this clause. If you can, transfer your credit to a card that does not have a Universal Default Clause.
2. 2. Do not be lead to believe that all you have to do is make your minimum monthly payment. This will normally only cover 1% or 2% of your balance. With interest and fee’s, a $1000 debt could literally take years to pay off. It is always better to pay off your balance monthly, or do so as close as you can.
3. 3. Proven fact. Those who purchase with credit cards, buy more. Consumers tend to double their purchases when using a credit card. Think about it. If you go to the mall with cash, you will be more reluctant to use it all up. But with a credit card, no problem, it won’t cost you a penny today. Treat your credit card like cash.
4. 4. Do not max out your credit card. Ever. Always try to spend no more that 50% of your credit limit. Whenever you cross that 50% margin, you credit score can go up. Creditors frown on maxed out credit cards.
5. 5. Do not be fooled by all the credit card rewards programs. You will pay for them in one way or another. Avoid these, or do not bank your choice of a credit card on them. You will be better off in the end.
6. 6. If you are not happy with your credit card, you can call your credit card company and seek a better deal. If you feel your interest is to high, give them a call. If you think the fee’s are to high, or your payments are to steep, give them a call. It is in their best interests to deal with you, or risk losing you to a card that offers you more.

Know your card. Read the fine print. Never cancel a card, it hurts your score. Simply cut it in half and use another. Education is your best tool. Make your payments, be responsible, and you can enjoy your credit cards without a mountain of debt.

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Debbie Dragon is a writer for CreditorWeb.com, where she writes about credit cards, credit card offers and general personal fnance.

The essays by Paul Graham often come up in my family. Graham made millions when his team sold their programming work, Viaweb, to Yahoo for millions. But the knowledge Graham shares goes beyond programming.

He’s got a lot of social wisdom. My favorite is his article, Why Nerds are Unpopular.

Here’s an excerpt:

The main reason nerds are unpopular is that they have other things to think about. Their attention is drawn to books or the natural world, not fashions and parties. They’re like someone trying to play soccer while balancing a glass of water on his head. Other players who can focus their whole attention on the game beat them effortlessly, and wonder why they seem so incapable.

Even if nerds cared as much as other kids about popularity, being popular would be more work for them. The popular kids learned to be popular, and to want to be popular, the same way the nerds learned to be smart, and to want to be smart: from their parents. While the nerds were being trained to get the right answers, the popular kids were being trained to please.

Jeffrey Strain at TheStreet.com pretty much sums up the reason most people don’t have wealth: it’s not because we don’t make enough money; it’s because we don’t treat money on a day-to-day basis very well. Check out the ten poor habits he’s narrowed down as our reasons for low wealth:

1. You Care What Your Neighbors Think: If you’re competing against them and their material possessions, you’re wasting your hard-earned money on toys to impress them instead of building your wealth.

2. You Aren’t Patient: Until the era of credit cards, it was difficult to spend more than you had. That is not the case today. If you have credit card debt because you couldn’t wait until you had enough money to purchase something in cash, you are making others wealthy while keeping yourself in debt.

3. You Have Bad Habits: Whether it’s smoking, drinking, gambling or some other bad habit, the habit is using up a lot of money that could go toward building wealth. Most people don’t realize that the cost of their bad habits extends far beyond the immediate cost. Take smoking, for example: It costs a lot more than the pack of cigarettes purchased. It also negatively affects your wealth in the form of higher insurance rates and decreased value of your home.

(for descriptions of the following, check out his complete article)

4. You Have No Goals
5. You Haven’t Prepared
6. You Try to Make a Quick Buck
7. You Rely on Others to Take Care of Your Money
8. You Invest in Things You Don’t Understand
9. You’re Financially Afraid
10. You Ignore Your Finances

As the cold weather starts to set in, I thought we could all use a few chuckles today. I’m currently reading “The Warren Buffet Way” and got a kick out of this paragraph (pg 89):

Buying an underwear maker [Fruit of the Loom] creates lots of opportunities for corny jokes, and Buffet, an accomplished punster, made the most of it. At the 2002 shareholders meeting, when asked the obvious question, he teased the audience with a half answer: “When I wear underwear at all, which I rarely do…” Leaving the crowd to decide for themselves whether it’s boxers or briefs for Buffett. He pointed out why there’s “a favorable bottom line” in underwear: “It’s an elastic market.” Finally, he deadpanned, Charlie Munger had given him an additional reason to buy the company:

“For years Charlie has been telling me, ‘Warren, we have to get into women’s underwear.’ Charlie is 78. It’s now or never.”

I messed up this week.

It’s like I wasn’t hungry last week so I decided not to buy any groceries for this week either. Of course, now I’m starving. I’m angry that the cupboard is empty, and now I’m kicking myself. Why didn’t I think ahead last week? Why didn’t I buy anything to eat?

We make these dumb mistakes all the time. Instead of thinking about tomorrow, we neglect it. For example, every week that you put off investing $20,000 at 5%, you miss a gain of $84. (How long does it take you to earn $84 at work? Probably less than the time it would have taken to invest that money.)

The most ironic part of procrastination is the loss—inflation means you’re actually losing that money.

How many groceries could you buy with that?

If you and I want to play with the big dogs, we have to be thinking like them. They’re the people that are always a buck ahead, a step in the lead, and forever laughing at our lags… unless we change. In whatever financial avenue you’re hoping to strike it rich in, I’m making some adjustments in my strategy that you might want to consider, too.

1. Get networking—someone’s always going to know something before you. In my case, my husband is always hungry before I am, and he reminds me. Buddy up. And if you have to pay them a little to invest your money and sell your property, I still think it’s worth it.

2. Get your paperwork together—if you want a stock, have money ready to invest ASAP. If you’re buying a huge investment, establish pre-approval with a bank before the deal pops up. Update your income statements, cash flow statements, balance sheet, checkbook… you want to be ready to go by knowing what you have and showing others what you have, too.

3. Get persistent—don’t let one slip slow you. Yeah. I’m frustrated with myself. But pouting isn’t the solution. Better strategizing is.

4. Get ready to drop everything NOW—good deals disappear in minutes. You’ve seen how the stock market fluctuates throughout the day. Other markets do the same. Waiting until the time works for you doesn’t work when you want a deal…tomorrow…next week…

Some people obsessed with Cramer on “Mad Money” dump all of their money into each stock he recommends that day. The stock price shoots up because everyone has the same strategy. These people don’t make money, of course. They’re buying groceries after their stomaches grumbled.

Meanwhile, the prompt grocery shoppers who bought Kramer’s suggestions before Kramer suggested them are getting good and fat. They’re stuffing their faces and smirking at every starving stock shopper.

Wouldn’t you prefer to pick out your own dinner tonight?