Archives for August 2013

Last month I wrote a guest article for PTMoney.com on the state of privacy versus frugality. Basically, I asked the simple question: What information would you voluntarily give up to save a buck? The fact is that we are bombarded with offers, coupons, and savings. The paper (if you get one) has a coupon section, there are tons of sites for freebies, and coupon sites are a dime-a-dozen. Amidst the swirl of opportunity are privacy sacrifices. Sometimes you can’t even realize what you give up to save. But did you know you can limit sharing of private information and still get a great deal?

Privacy Disclosures

Rather than a debate or structural question/answer to the problem of privacy concerns, this article will help you take action. We may be living in a state of Total Information Awareness on a societal level, but there are steps you can take to limit the sharing of certain banking information.

Each time you apply for a credit card, information is sent to the bank. From your social security number to date of birth, the data is highly important and needs to stay relatively private. We entrust our banks with these details. Thankfully, they keep their servers encrypted and have a direct interest in limiting breaches (it’s bad for business).

It’s An Opt-Out World

But much more nefarious are the detailed disclosures you’re likely voluntarily sharing. By sharing your transaction history, credit worthiness, and other personal, banking details, the bank you use can profit off of your account (to any even greater extent). There’s nothing inherently illegal about this behavior, but nowadays, you can limit much of the sharing.

Regrettably, the credit and banking organizations force consumers to opt-out, rather than opt-in to targeting, marketing, and information sharing. Until federal laws change this behavior, we must be critical consumers and do everything we can to be empowered.

How To Limit Affiliate Sharing

Reducing your information footprint with the banks and credit companies can be challenging. As mentioned, by default, you’re sharing more than you have to. It’s important to realize what you can limit and who you have to contact.

Each company operates on a different set of standards for information sharing (or privacy leaks). Read the documentation carefully, and look for a phone number on each notice to limit disclosures. The following are 5 popular companies that people bank with and links to their privacy notices:

American Express

Phone: 800-297-8378

Chase

Phone: 888-868-8618

Citicards

Phone: 877-640-3983

Target (Redcard)

Phone: 800-968-4001

Ally

Phone: 800-204-2197

These are just some examples. My recommendation is to search for “privacy notice (insert bank name here)” on any popular engine. Click on your bank and they should (are legally obligated to) tell you how to opt-out of secondary information sharing. If all else fails, call the number on the back of your card.

Scared By Another’s Cracked Phone

My friend pulled out his black iPhone 5 and began typing into his screen. Something appeared askew, different then I remembered it. I glanced over the phone and blanched at a nasty crack along the glass face. Immediately, I thought, “I need a smartphone case.”

As a budding frugal man, self-identified minimalist, and spendthrift, buying a new iPhone 5 was probably financially irresponsible. With nearly $40,000 in debt, the latest gadgets are hardly necessities. My one excuse: I purchased the device before I started this journey to tackle my debt and improve my financial future.

Frugal Without A Case?

I developed a strong focus toward spending cuts (my own austerity) and smart financial moves. My iPhone 5, an homage to a bygone spending era, stuck with me. The phone was purchased, and the reasoning was that I would make this one count – this would last me more than a two-year contract cycle. I wasn’t going to fall prey to the lock-in tactics of major wireless carriers.

Despite this vestige to out of control spending, I left it naked, without a case. Somehow, as I entered the frugal world, it didn’t seem financially smart to buy more. Part of me was right. The other part was scared by what had happened to my friend.

Motivated by fear, I quickly purchased an iPhone case with a special discount (a Lifeproof case, in case you’re interested). Despite the sizable bargain, it was still nearly $40. Admittedly, the swift purchase was motivated by fear. I worried I would soon share a similar fate. But was it fiscally responsible?

Why Buy?

A cracked phone can cost hundreds of dollars to replace screens professionally. Even if you do it yourself, you’re looking a supplies and materials that can cost a small fortune. Suddenly, a $40 case seemed far more frugal. Even though I never dropped the iPhone or suffered such consequences, the threat of lost resale value is an important consideration.

Cases are a form of insurance. You’re lessening risk of loses with a smaller investment. With an expensive cost for accidents with these glass-heavy devices, it’s important to protect them. That is, if you’re going to own them at all. Because the reality is that it’s far more frugal to get a cheap, prepaid flip-phone.