Wisdom of Rich Dad

Prepaid debit cards are the fastest growing form of electronic payment in the nation.

Celebrities such as Def Jam Co-Founder Russell Simmons, rapper Lil Wayne and now financial guru and CNBC host Suze Orman are hawking their cards to the masses, wanting a piece of the booming prepaid debit card market. Federal Reserve data shows prepaid card transactions grew more than 20 percent between 2006 and 2009.

These cards are geared toward individuals with little or no credit history or those who have difficulty obtaining traditional credit cards. A 2009 FDIC survey found that 9 million American households do not have a checking or savings account. According to the Mercator Advisory Group, consumers added approximately $71 billion onto prepaid cards last year, a dramatic increase from the $2.7 billion in 2005. The consulting group estimates that the prepaid debit card market will expand to $150 billion in 2012.

Prepaid cards offer perks to a certain segment of the population that it would not normally enjoy, such as the convenience of using plastic to purchase goods online and withdrawing money from an ATM. They do not contribute to one’s credit score and often come attached with exorbitant fees.

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Back in 2011, news that Target was accused of reneging on store coupons had many consumer groups up in arms. But whether they know it or not, consumers can take matters into their own hands and take these steps to make sure they get every last benefit from a store coupon.

There’s no doubt consumers love their coupons, and those coupons, whether they’re of the paper or online variety, often drive consumers to make purchases they may not ordinarily make.

According to a recent study from Forrester Research on behalf of Whaleshark Media, six in 10 survey recipients said they would be more likely to make a purchase when given a coupon, even after rejecting that purchase before receiving a coupon. And, around 80% said that receiving coupons brightens their outlook on the company providing that coupon.

But not all coupon programs are on the level. Fake coupons, coupons with too much “fine print,” and coupons that are rejected at the point of purchase are just a few ways consumers can get the shaft in a coupon deal.

What are the most recognizable “red flags” that your coupon isn’t on the up-and-up? Let’s take a look:

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If you’ve ever watched the TV show Extreme Couponing or read about a customer who got $200 worth of groceries for next to nothing, you’ve probably wondered what’s in it for the manufacturers and stores who offer these coupons. Are they actually making money in the process, or are customers getting away with legalized robbery?

The truth is that coupons create a win-win situation for both companies and consumers. Manufacturers and stores are benefiting from coupons. If they weren’t, they wouldn’t issue them or accept them. To find out how they benefit, let’s examine some of the reasons why companies offer coupons.

To Get Consumers’ Attention

According to the Food Marketing Institute, the average supermarket carried 38,718 items in 2010. Out of thousands of products, companies need a way to steer consumers toward their product instead of a competitor’s, and a coupon can help an item stand out. If you have a coupon for a specific brand of paper towels, for example, it will probably be the first brand you’ll check the price on among the ten different brands in the paper towel aisle.

To Advertise a New Product
Consumers need to be enticed to take a chance on a new product, especially price-sensitive, coupon-using shoppers. A company could advertise its new product by offering free samples, but instead of spending money both on the product itself and on getting the product into consumers’ homes, it could offer a tempting, high-value coupon and actually make a sale. If the consumer likes the new product enough, they may buy it at full price in the future when introductory coupons are no longer available.

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You wouldn’t be here if you weren’t looking to save money. With that in mind, here are a bunch a tips to save some dough on Valentine’s Day. I’ll confess… some are a little unconventional. And not that you care, but I’ll let you know what I’m up to this Valentine’s Day.

• Write a Love Note – This was suggested by a couple of people. I did that last year. I was reading a book on writing that mentioned the 10 most beautiful adjectives in the English language. I found a way to work them all in. I think it came out a little forced, but still worked. It’s the thought that counts.
• Celebrate at Home – There were a few suggestions that could work together for a romantic time at home. My caveat with this is that you really have to make it special because the venue is simply ordinary. However, if you can pull it off this idea has big dividends as you are already near closed doors.
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Valentine’s Day is just around the corner. And that means it’s time to get thinking about what to buy your loved one.

But for those of you who, like me, can’t stand Valentine’s Day and all its commercialism and mushyness, perhaps you can use the big day to your advantage and make some money out of it instead!

1. Sell cards

Many people are suckers for buying Valentine’s Day cards to show their loved ones how much they care (why they can only show they care on one particular date is beyond me, but who I am to judge?). So why not take advantage of this and make some cards to sell?

Shop-bought cards are usually ridiculously expensive – in the region of £5 to £7 in many cases – so lower your prices slightly to make things competitive and you could make a fortune!

If you’re thinking of selling your goods in the street, you should check with your local authority to see whether this is permitted. Alternatively, sell your cards at work, at your gym, or at any other classes you attend.

2. Sell baked goods

If crafts aren’t really your thing, perhaps you’d rather whip up a few chocolates instead and sell them on as Valentine treats?

How about some easy chocolate truffles to get you started? Or perhaps Port and Stilton truffles or chocolate orange truffles?

Alternatively, why not test your skills at cupcake baking?

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Some of us are creative thinkers, especially when it comes to making excuses about saving for our emergency fund. From the weak economy to the falling dollar to high gas prices, there are new ones every day. To break the trend of using our creativity to think of excuses, I challenged myself to instead think of some not so obvious ways to build an emergency fund. I actually had fun doing this exercise but what’s more important is for those struggling to build an emergency fund to try some of the tricks listed below. Here they are:

Treat the Emergency Fund like An Expense
This one might not be so creative, but why not add a twist to it by having your family member bill you for it? The plan actually works best if your kids collect the money because late payment is going to be painful. Trying this idea will also involve your children in a real world situation earlier in life while giving you a chance to teach them about financial matters.

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