When Pinching Pennies Becomes Unethical

February 12, 2008 RSS Feed Print
  • Comment (6)

For an upcoming article, I interviewed Alan Corey, author of A Million Bucks by 30: How to Overcome a Crap Job, Stingy Parents, and a Useless Degree to Become a Millionaire Before (or After) Turning 30. Corey tells quite an impressive story about racking up a million dollars in assets before his 30th birthday, which he did largely through smart real estate moves.

He emphasizes the often extreme ways he saves money, which include eating oodles of ramen noodles and taking advantage of free food at art gallery opening nights. I'm all for saving money, but some techniques struck me as, well, completely unethical. He says he reused the same popcorn bag for three months to get free refills, collected free cellphone minutes by claiming to have experienced dropped calls, and picked up umbrellas at lost and founds by claiming to have left his own behind.

Corey was happy to defend his use of such techniques. He says many restaurant owners want to get rid of the numerous umbrellas they have collected in their lost and found piles. He also says he would take the worst umbrella in the bunch and that he recommends returning it to the same or another lost and found. As for reusing the popcorn bag, he says the theater doesn't specify that the free refills are for only one showing. "I never felt like I was being secretive or deceiving, but creative," he says.

When I asked Patty Park, senior publicist for Random House, whether the publisher was endorsing such techniques, she said, "We're not saying his advice is for everyone...Readers are welcome to take or leave his tips as they wish," she says.

• Readers: Do Corey's techniques cross the line?

Tags:
savings,
personal finance,
ethics,
money

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first of off the bxtxh shouldnt have done thta1

of 1:08PM August 27, 2008

I think that this post undermines a very healthy message. That message is that we should not spend all of our money on frivolities and should focus more on our futures. Is it ethical to interview someone and then lambaste them on a very small point...

So what about the umbrella and movie popcorn that costs $7. Is it unethical when I bring my own snacks and beverage and do not buy any concessions? At least the man bought a soda? I read the book and can't remember about the dropped calls (selective perception I suppose) but these are about the worst things he has done.

This is the type of article that smacks of being critical because none of your discretions are visible.

BAnders of FL 1:37PM March 12, 2008

i believe the reason Mr. Corey lied to the restaurant owner's and the phone company is not because his action's are unethical in some absolute sense, but rather, as he admit's, he is consciously aware that other's don't necessarilly share his viewpoint. That is the nature of a so-called white lie - it is supposedly victimless. In the umbrella situation i don't see anything at all unethical about his behavior. The umbrella's are benefiting no one just sitting there. To me what he does is much more of a perfect system. Imagine if there were bicycle's located on each block or so and if you needed to get somewhere you just hopped on one and went. When you got there you leave the bike for someone else. This promote's the concept that people are basically trustworthy, and that material thing's are there to be usefull not hoarded, or glamorized. Recently there was a commercial on t.v. by an auto company based on the same concept. Someone would drive in the vehicle where they needed to go then get out, toss the key's to someone else, and so forth.

The phone company situation is another matter. It bug's me because it uses an all too common cop out heralded by people who actually are truly parasitical. That is the argument 'they're ripping us off anyway so anything i can manage to steal from them i have coming'. This bring's to mind an employee who steal's from their employer and excuse's it by 'they don't pay me enough anyway'. When you entered into a contract for your wage's - that was your opportunity to negotiate compensation. Or on another level - say a landlord who has someone lie to the state in some matter in order to fraudulently get tax advantage's they are not entitled to. Is that victimless? no - just like shoplifting - we all pay for it. So with the phone company - if your call's were not actually dropped, then you got the service you contracted for, your financial obligation was made clear i'm sure in your contract - that was your opportunity to negotiate - not after the fact by deception.

E. Manke of WI 11:32AM February 23, 2008

Alpha Consumer

Kimberly Palmer, senior editor for U.S. News & World Report, writes about making smarter financial decisions. She’s the author of Generation Earn: The Young Professional's Guide to Spending, Investing, and Giving Back.

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