Tag: Credit Cards

Kick the Bad Habits of Poor People

indexThere is more to increasing wealth than having a good job and a budget. Avoiding the pitfalls of some bad habits can also go a long way in helping you achieve your financial goals more quickly and easily.

  • Having bad physical habits can do more than just harm your health. For instance, one study on people who smoke found that the net worth of heavy smokers was $8,300 less than non-smokers. Moderate smokers saw a $2,000 differential. The average effect of smoking on wealth was a 4 percent decrease for each year the person smoked, the approximate number spent each year on cigarettes. This study did not examine the negative effect smoking has on the cost of health insurance, and the extra time spent at the doctor. In other words, stop smoking and you will significantly improve your financial situation.
  • Who your friends are and what their financial habits are can have a huge effect on a person’s own habits. If your friends spend their weekends drinking, eating at expensive restaurants, and shopping at the mall, there is a good chance that you will, too. Start hanging out with people that spend their time and money wisely, and some of that wisdom, and wealth-building habits, should rub-off on you.
  • The way your parents raised you is a big influence on your own money habits. Unfortunately, you can’t pick your parents, but you can make a conscious choice to make different choices when it comes to your own money. Take a closer look. Did one or both of your parents gamble too much? Drink? Max out their credit cards? Don’t let their bad lifestyles effect you negatively. Rather use them as examples of what not to do, and you can go beyond them in your ability to build your own, and your family’s financial security.

U.S. Credit Card Issuers Embrace Microchip Security

In the aftermath of several data hacks during the holiday season, credit card issuers throughout the United States are rushing to follow in the footsteps of most European countries. In the U.S., credit cards use a magnetic strip which is swiped by a machine; a process which poses a security threat to card owners. However, in the U.K. and Kenya, the microchip, or EMV, cards are equipped with smart chip security and are encrypted.

National Retail Federation general counsel Mallory Duncan explained: “Fraud is rising too quickly not to make progress. Banks are going to do the right thing. The risk has gone up.”

This is already proving true, with Virginia Credit Union announcing that it will be sending out MasterCard credit cards with microchips for increased security.

“Our plans have been underway since last summer to reissue cards,” said Deb Wreden, senior vice president of product and delivery strategy, adding that the decision was not the result of security compromises at retailers.”

Similarly, Bank of America began offering cards as early as 2012 and has recently updated its cards for customers who travel abroad. JP Morgan recently announced that it will be following suit this year.