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My Best Customer Service Experience Ever

For each of us, there are different times in life where our eyes are opened and our worldview becomes a bit bigger. For me, one such experience was an overseas trip I took in high school. I was part of a student exchange program that sent a group of students from the U.S. to China, for a nearly 4-week long trip.

The trip to China was an amazing experience, as we got to see The Great Wall, walk through Tiananmen Square, dine at The Great Hall of the People, visit the Terra Cotta Soldiers at Xian, and do quite a few other interesting things. Further, this was over 20 years ago, so China then was far less traveled by Westerners, far less developed, and not the emerging economic power that it has been becoming. From pictures and news accounts I have seen, it was night and day compared to today.

We also got to visit Hong Kong as a gateway to and from China, for one night on the way in, to two nights on our way out. That was when it was under British control, and was a totally different experience.

There were so many life experiences generated from the trip, it would take multiple posts to share them. I’ll probably bring up some of them in future posts – one of them being a Squirreling Gone Wild post I have in mind about an experience in Hong Kong with some devious characters.

One story from mainland China itself that comes to mind was our trip to The Great Wall. It’s been some years now, but I distinctly remember that it was really foggy the day we went there. Visibility had to be less than a ½ mile, so we felt like we were in a bus to nowhere when all of a sudden The Great Wall emerged. I was young, so I didn’t fully appreciate a lot of things then, but even then I realized how physically imposing this thing was. I totally get how it’s deservedly seen by many as one of the wonders of the world.

While the experience at the Wall itself was the most memorable part of that particular 2-day jaunt, a souvenir purchase experience was also something that was quite memorable for me. More specifically, the customer service experience involved with the purchase stood out as quite interesting.

I had bought something called a “chop”, which was a marble piece that was used with ink to be stamp with one’s name or initials. I picked one out that had a cool, ornate design, and paid something around $5 for it. After I paid, they told that it would be delivered to me in the next few days.

“Hmmm”, I thought. We’re leaving the next morning, so that’s an issue. They proceeded to assured me I would get it early and they would rush to finish it, so I walked out of there content.

“Ha! You were taken!” was the reaction of a fellow student in my group. “You’ll never see that thing. They make easy money like that off American tourists.”

I then had the sinking feeling that they totally got me. That was reinforced when I brought the subject up with another guy I befriended on the trip, and he said there’s no chance I’ll get it delivered. Plus, he pointed out, why would they drive 30 minutes to deliver something that cost $5?

It made sense. I lost $5. Oh well, it would be a funny story to tell someday.

The next morning, to my surprise, there was a knock on the door. A guy stood at the door and asked for a person with my name. There was a huge language barrier, as English was not exactly a commonly spoken language in China during that time. But I soon figured out he was looking for me. The guy looked exhausted and flushed.

Though I couldn’t understand much at all of what he was saying in Chinese, I immediately understood that the cynics were wrong the day before:

The guy delivered the souvenir to me!

There it was, the exact stone I picked out, ornately carved, and with my design on the bottom for stamping. They brought stamps too.

What then struck me was the bicycle that was next to him. At first I thought it was odd that he brought a bike into a motel, but then I realized what had happened:

He delivered the thing on bicycle!

Keep in mind that it took 30 minutes by car to get from that shop to the motel. I couldn’t imagine how long it took the guy to deliver it by bicycle in hilly terrain!

That was the best customer service I have ever had.

Now, keep in mind, that the China (non-HongKong) part of the trip was also peppered with some not so great things either. We were not allowed to take pictures of certain things, not given choices of what to eat. The place as a whole was not positive, and when I got back home to the U.S., I kissed the ground. Literally. It was a great trip and life experience, but I’ll take freedom and my U.S. citizenship any day, everyday!

But I’ll give credit for that customer service by The Great Wall, that’s for sure!

How about you?

What’s your best customer service experience?

Book Review: If I’m So Smart…Where Did All My Money Go?

By Squirrelers 14 Comments

There are quite a few personal finance books out there, and many of us have read or heard of some of the well known ones. For example, the book The Millionaire Next Door is practically viewed as a classic by a number of personal finance bloggers, as it provides insight into habits millionaires tend to have with their money.

When it comes to books that help the layperson learn how to structure his or her own financial life, books out there run the gamut, in my opinion. I recently had the opportunity to read Doug Warshauer’s book If I’m So Smart…Where Did All My Money Go?, and was curious to see what made this book different from other personal finance tutorials, and how well it presented personal finance lessons to readers.

First off, this book is uniquely structured in story form in order to teach financial concepts. There are a series of characters, each attending a personal finance seminar, that have the opportunity to ask questions and share their thoughts on different topics. Just a few examples of the characters includes:

Joe, a 23 year old college grad with some work experience, but a fair amount of consumer debt early in his adult life. He’s concerned about his financial future, and wants to learn what he can do to get on track.
Eric and Sally, a married couple in their 30’s who own a home at the market’s peak, and have their own specific financial concerns
Andrea, a single mother in her 40’s, who’s trying to save for retirement and college costs on a limited single income

These people, along with the others, create a storyline to follow as the topics of personal finance are discussed. Each of these people has unique concerns in life, and those concerns are built into the story and come out in the questions that they ask in the seminar – as well as in the comments and debates they have.

The story, character-based theme is actually very easy to follow, and allows the relevant topics to be discussed in a way that’s understandable to even personal finance novices. Yet, it’s a good read for those of us who are more advanced in personal finance knowledge who want to tighten our perspective on things and even learn some new tips as well.

To bring the story together in a semi-structured form, there are 5 steps that are outlined by Warshauer, which present a big-picture game plan. These “Big Steps” are:

Control Spending and Debt
Save for Short-Term Goals
Invest Wisely
Save for College
Save for Retirement

These bigger categories contain advice on a number of more specialized topics, with specific advice on each. For example: contributing to a separate “auto fund” regularly, so you can buy your next car with cash. Another example: buying a home only if you expect to live in it close to 10 years.

For specific recommendations, there was good discussion by the fictional characters in the book which allowed us to see the thoughts and emotions people might be facing when faced with a decision. Also, the dialogue between instructor and participants gives credibility to the readers, who may be having some of the same thoughts themselves.

The one thing I see differently is the 10% recommendation of how much to save. I think it’s wise to save a greater percentage than that if possible. That said, many folks have lives that are structured in a way that’s difficult for them to save a lot at them moment, and for a big portion of the target audience, this is actually good advice by Warshauer to get them moving in the right direction. I certainly get how this works for purposes of the book.

Overall, I recommend the book. It’s especially good for people that are well-meaning, intelligent folks who want to improve their financial position but need some help understanding how to structure their financial life. That said, even as a personal finance blogger and someone with an MBA (and one concentration being Finance), I still found some tips here that were new, enlightening, and got me to rethink a few of my approaches to certain financial situations.

Note: I did receive a copy of the book from the author, which in no way influenced the review.

Let’s Talk About Deflation

By Squirrelers 22 Comments

Below is an article I wrote that was published as a guest post at Free Money Finance last month, August 2010. It generated much discussion and debate, so I thought I would share it here at Squirrelers

Many of us who take an interest in personal finance understand the concept of “a dollar today is worth more than a dollar tomorrow.” We realize that the present value of money today exceeds the present value of the same amount of money at some point in the future. This is due to inflation, which erodes the purchasing power of money over time. Looking at it another way, if you buy a cup of coffee for a dollar today, it might cost you more next year – say, $1.05.

Lately, the financial news has brought us discussion of a completely different concept: deflation.

When you first think about it, deflation sounds like a good concept, in that it’s the opposite of inflation. A dollar tomorrow will be worth more than a dollar today, even if stuffed under the mattress. Pretty good deal, eh?

No. In reality, deflation is not good for the economy, and the effects can wreak havoc with the ordinary investor’s portfolio.

Downward-trending prices may seem great initially, but this leads to pressure on businesses. The response is often a reduction in workforce, which in turn causes a reduction in demand as incomes drop. That’s not good for stocks. Thus, the spiral begins.

Governments may try to lower interest rates to stimulate spending and counteract these deflationary effects. Looking at our current interest rates, they are at remarkable lows compared to long-term averages. The issue is that there is only so far these cuts can go.

Japan saw remarkably low interest rates for years, as it has been in a longer-term deflationary cycle. That country was rocked by a sharp decline in real estate prices about 20 years ago. Does that part sound somewhat familiar to those of us here in the U.S?

Now, I can’t predict whether or not this will be long-term economic cycle we are in. Who knows, we could very well be headed for an inflationary period after a few years.

Regardless, I suspect that while extended deflation may not by any means be a sure thing, it’s certainly a real possibility at this point.

In light of this, it’s interesting to consider what would be a good hedge vs. deflation. Some people are proponents of gold as a hedge; I had a recent discussion with a friend who suggested gold. This same friend correctly called the real estate collapse, despite many people – including me – thinking he was way off base. I’ll give him credit – he was right. The thinking is that if the money supply increases, inflation could be around the corner. In that case, gold would be a hedge.

That said, my take is that thinking purely about deflation, the following are good defenses:

1. Cash.

2. Short-term Government Bonds

My questions are as follows:

1. Do you think we are beginning a period of deflation that is at least short-term, if not greater – or are these fears unfounded?

2. If deflation takes hold of the economy, how would you reallocate your investments? Would you hedge with cash/short-term government debt, gold, or other vehicles?

Should You Have a Safe Deposit Box?

By Squirrelers 6 Comments

We all have important documents, and most of us have at least a few sentimental items, that we absolutely want to keep safe. Sure, we want to keep most of our things intact, but there are few items that require special care. To that end, we want to keep them in a safe place.

To keep key valuables safe and secure, one option some people take is to rent a safe deposit box. Some people like this practice and swear by it, and others don’t like the idea of keeping valuables outside of their immediate possession. Let’s explore the question: should you have a safe deposit box?

What are the reasons to have your valuables in a bank safe deposit box, as opposed to at home, where they are in close proximity to you, in a place where you feel you can keep an eye on things? Here are several:

Your bank’s vault is more secure vs thieves. If you have a safe deposit box, you will generally have to show your picture ID, be authorized to access the box, sign in, have the specific key for your box with you, and be accompanied to the locked, secure room by a bank associate – all while being on camera. That’s a more rigorous defense system for your valuables that someone coming into your home.
Thieves can probably figure out where you keep your valuables. Do you keep your valuables in your master bedroom closet? Perhaps in a safe? Under your bed? Maybe in your den? Crooks can figure out how we think, and where we are most likely to keep important things. We all hear news accounts of dumb criminals, but realistically, if the bad guys want to find your stuff, they probably can.
Your safe can be carried out. If you keep a safe somewhere in your home, unless it’s incredibly heavy or very securely attached to your home, home intruders can figure out a way to take it.
A safe deposit box is more secure vs fire and water than your home. Think about it – the safe deposit box is constructed securely, and is housed in a vault that’s constructed to be solid. Is your place of residence constructed that safely?
Insurance premiums. Some companies may charge lower premiums on items kept in a bank safe deposit box vs being kept at home.

There are also negatives to getting a safe deposit box:

In an emergency, safe deposit boxes are less accessible. If you need a passport for overseas travel, power of attorney documents, and other items that you might need in a hurry. Remember, the box will likely be accessible only during your bank’s normal hours. And many of us have heard the term “banker’s hours”, so we know what that can mean.
Contents are not FDIC insured.If you have financial assets, and they are not held in accounts in the bank but are simply in a safe deposit box, they are not FDIC insured if they are damaged or stolen.
Safe deposit boxes cost money. These can range in cost depending on size, but typically cost at least $50 to $100 annually. Often, these costs can go much higher.
Could be declared “abandoned”. This depends on laws on a state by state basis, but if you don’t pay your rental fees for an extended period of time, the contents may be declared abandoned and turned over to the state’s unclaimed property office. If you’re not careful, or lose sight of this administratively, you could be in for some hassles.
Items are not in your immediate possession. For many of us, there is a sense of security, or peace of mind, knowing that our valuable are actually with us. At some level, maybe in our subconscious, we have it in us to be like little children when it comes our stuff – it’s MINE! Additionally, sometimes we might want to look at or show certain valuables, such or jewelery, collectibles, etc.

Personally, after weighing the positives as well as the drawbacks of a safe deposit box, and considering the alternatives, I rented one for myself and recommend safe deposit boxes.

Now, it’s not as convenient as having important documents and valuables at home, and the accessibility aspect has caused me some hassles. For example, I recently needed a document during the work week, but needed to wait until the weekend to access it. Fortunately, it didn’t cause me problems in the end, but it could have. However, despite those types of drawbacks, I feel that certain important documents and valuables are safer in my safe deposit box than in my home, even though I live in a safe area. To me, safety and risk management is more important than convenience.

Tip: whether you keep papers or other valuables in a safe deposit box or at home, keep them in a sealable, airtight, water-resistant container. For example, a large ziplock bag. This helps minimize potential damage from any water damage.

What about you? What are your thoughts on safe deposit boxes as a way to store valuables?

This post was included in the Carnival of Personal Finance at Personal Finance Journey.

Pac-Man for Free – How About the Real Thing?

By Squirrelers 6 Comments

Every now and again, there are some things that come across the web that are quite interesting. As an adult male, and father of two, I like to think that most of what I find “cool” is in the realm of topics such as finance, health, world affairs, sports, travel, and things of the like. Much of that is true – I do enjoy those topics, though personal finance has been getting my online time of late with my blog.

That said, I just very recently came across something cool – the Pac-Man game on Google. For free! As a squirreler, you know that I think free is good – as long as it’s not taking advantage of anyone or resulting in a loss of self-respect. And this neither – it’s actually pretty neat.

I gave it a shot for a few minutes today, and found it to be a nice little diversion. I just used my keyboard arrows to navigate the Pac-Man, and it played like a mini version of the old game that many of us played as kids. I made it through the first screen, as my Pac-Man devoured all the dots, including the larger power dots that allow Pac-Man to turn the tables on the monsters. Yes, my guy ate a few of the scurrying blue monsters!

That got me thinking….wouldn’t it be cool to have the real thing? You know, a full-size Pac-Man game? Ok, maybe you wouldn’t find it so cool. I haven’t thought about this either, at least not since being a child. But now that I got another taste of Pac-Man in this free Google game, I had that same childhood wish come back to me.

It’s funny how some of those things don’t really leave you. Maybe it’s a case of wanting something because you know you could never have it as a kid, and what you can’t have you want even more. Very common psychological phenomenon, indeed. I know of one person who always wanted a horse, as she loved horses as a kid, but never got one. I’m guessing she still wants a horse. I talked to a friend recently who always wanted to go to see the Super Bowl in person, but as a kid always watched it on TV – and as a young adult couldn’t afford it. This past Super Bowl, he splurged for tickets and went to the game in person with his wife. He always wanted to do it as a kid, and it was out of his reach then – but not now, so he made that dream happen.

I tend to be more focused on practical financial goals these days, and am not really going to go buy a Pac-Man game. That said, it’s fun thinking about what would be cool to have that we have always wanted.

Is there anything from your childhood that you couldn’t have then, but could probably afford now? Something that isn’t practical, but would satisfy a long-term want?

This post was included in Carnival of Money Stories #56 at Personal Finance Analyst

Yakezie Challenge

By Squirrelers 2 Comments

Just wanted to announce that I have joined the Yakezie Challenge! You can read more about the Challenge at Financial Samurai.

Thanks to my readers for your support and interest in my blog. We are just getting started!