This Week In Your Wallet: Is 25 Hours The New 35 Hours?

This Week In Your Wallet:
Is 25 Hours The New 35 Hours?

The pandemic isn’t done dispensing valuable life lessons just yet. The latest may be how we as Americans are rethinking our careers, or perhaps more accurately, we’re rethinking the long hours that keep us away from friends, family and pursuits that bring us fulfillment. The Wall Street Journal’s Lauren Weber dives into recent Labor Department numbers showing a growing group of part-time workers are doing so by choice, for what the government describes as noneconomic reasons. She writes: “The total number of people working part time voluntarily—22.1 million in January—is now almost six times the 4.1 million who are working part time but would prefer full-time hours,” the highest ratio in 20 years.

Lonnie Golden, an economist at Penn State Abington who studies the part-time workforce, told the WSJ: “Part-time work for noneconomic reasons is expanding faster than one would think and it seems to have leveled up to a higher level. I don’t see it trending back.” Weber interviewed several former full-time workers who became so burned out they sought part-time jobs so they could also pursue interests. And I have several people in my life who have done the same. But what does it all mean? Maybe hustle culture (all work, no play, repeat) really has reached a tipping point, and more people aren’t afraid to seek a work-life balance that really works for them. It’s also got me wondering — where does this fit in the context of the four-day workweek that’s garnering so much ink, following a UK trial that showed workers were just as productive, but also less stressed out and less likely to quit. Please feel free to email me at mailbag@hermoney.com.

Flip The Tip Screen: It’s OK To Opt Out

And speaking of things that don’t really work, let’s talk about those screens that keep getting flipped around at retailers with “convenient” options for us to give tips on items and services we were never expected to offer gratuity for pre-pandemic. Brian X. Chen, lead consumer technology writer for The New York Times, tackles the subject of tipping because he’s been confronted with tip screens from unexpected places, including a motorcycle mechanic and a grocery store.

He has an idea for us as we navigate the great tipping debate we are waging (at least in our heads) when confronted with gratuity options we would rather avoid. Approach tipping, he explains: “The same way that you might approach technology: Be wary of the defaults, and decide when it’s right to opt out.” This, of course, is easier said than done. Especially since it’s a human with the ability to give us the dreaded stink eye – and not an emotionless robot – presenting us with multiple tipping totals. His advice? “When a business asks for a tip, that technology is nothing but an emotionless piece of software showing numbers,” Chen writes. “You, too, can be neutral and objective when deciding whether to tip and, if so, how much.” He also offers a low-tech option: Keep cash on hand for tips “whenever a gratuity feels necessary.” I like this last option — and am pretty sure baristas and others being tipped might like it, too.

The Credit Card Balance Transfer Blues

On its face, a credit card balance transfer can look like a great idea. Those who qualify can take the amount owed from a higher interest credit card and move it over to a card with a zero balance offer that includes a grace period lasting anywhere from 12 to 20 months. You might tell yourself that you have the ability to pay off your balance in full in that window. And you probably do. You may also have some tendencies you haven’t yet conquered that could derail your good intentions. Unfortunately, millions of people who transfer debt from one credit card to another don’t pay off their balance during the grace period. Lenders know this, and use it to their advantage. When you don’t pay off the balance, the fees can come tumbling down on you, which may make the whole endeavor a bust.

There are some people, points out Michelle Singletary of the Washington Post, who shouldn’t get into the balance transfer game at all, because they suffer from “serial get-out-of-debt disorder,” among other things. She details four reasons a credit card balance transfer could go badly for certain people, including those who may be addicted to debt, those without enough self discipline, “unrepentant spendthrifts" and those who may be looking for another, larger loan. For those who want to buy a car or a home soon, applying for a new credit card could drop your credit score enough to move you from ‘good’ to ‘fair’ which would make you less desirable to lenders. Instead of using debt to pay off debt, Singletary suggests considering assistance from a group such as the National Foundation for Credit Counseling (nfcc.org).

Could 2023 Be The Year Of The Renter?

After more than a few brutal years of soaring rent, a new report shows tenants may finally be gaining some ground when it comes to the high price of apartment and condo rentals. Business Insider’s James Rodriguez points to a new report from RealPage Analytics, a real estate software firm, showing the demand for apartments is now as low as it was in 2009 – when the Great Recession gripped America. What’s up with that? Consumer confidence is down, he explains and “a rise in the number of empty apartments, a decline in the number of people looking for a place of their own, and a coming influx of apartment supply will force landlords to compete more fiercely for tenants.” That doesn’t necessarily mean your apartment manager will drop your current rent, but you can and should ask — and you could score a better deal on a new place if you are inclined to make a move this year. If that's you, good luck!

Have a great week,

Jean

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