Financial Planning, Retirement Plan, 401k, Investment Blog

Financial Planning, Retirement Plan, 401k, Investment Blog

Posts Tagged ‘unemployment’

How Can You Tell if the Company You Work For is Going Under?

Posted March 20, 2009 by Bernz

It’s a sign of the times. Companies of all sizes and in all industries are fighting to stay afloat in today’s rough economic waters. Employee layoffs are at an all-time high and companies are closing up shop at an alarming rate.

The illusion of job security is just that- an illusion. Employees are finding that keeping the resume dusted off is their only defense strategy against a sudden layoff. Losing a job in the current economy is a triple threat. There is less likelihood that there are other suitable jobs out there, the employee loses company-sponsored health care at a time when he or she is least likely to be able to pick up the tab, and unemployment means less money for skills upgrading or education.

As the old saying goes, the best defense is offense. Preparing ahead of time for a layoff puts you in a stronger position in case it actually happens. The first line of offense is looking for the writing on the wall. Knowing that the company you work for is struggling to survive is the first warning that imminent unemployment may be lurking on the horizon. How can you tell that your company is on shaky ground? Here are three signs to watch for.

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Posted in Career, Misc | No Comments »

Do You Love Your Job?

Posted March 6, 2009 by Bernz

Being employed is something we aspire to for many reasons: it puts food on the table, it helps us to build experience, and it helps us to develop our social and professional networks. But one question that most of us rarely entertain is “Do I love my job?”

Not everyone can get up in the morning, bounce out of bed, and be excited about another day at work. Although some people can find the joy in anything, I would imagine that many slaughterhouse workers, sanitation engineers and debt collectors are more concerned with the money and not the fulfillment.

But you should love what you do for many reasons. The most important reason is that you’re going to be doing it at least 40 hours a week. You’ll spend more time at your job than eating, sleeping, or playing with your kids. Grinding through 40 hours a week of drudgery and duty can be just as bad as having a continual dental drilling.

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Posted in Career, Misc, Retirement Planning, Saving Money, Wealth Building | No Comments »

The Cost of a Second Job

Posted February 23, 2009 by Bernz

With jobs disappearing at break-neck speed and personal finances teetering in today’s economy, many families make the difficult decision to bring in a second income while they still can. In many cases, it’s the wife who has stayed home to raise children that now launches herself out into the workforce. It’s a sacrifice happening all over the country, but does it really pay to have a second income?

Let’s take the example of a family who currently brings in only one income. The husband works in the accounting department of a regional utility and makes $50,000 a year. The family is not sure how much longer the husband will have his job as layoffs have already begun. The couple decides that the wife should get a job to bring in more income to pay down debt and save for a possible layoff.

In order to start her new job with a temp agency, the wife has to first buy a wardrobe suitable for the office. This could very conservatively cost $1,000 or more. The couple already has two cars so transportation is covered but the gas to drive to and from the new job will cost about $50 per week. The couple’s two children are too young to be left home alone after school so they are enrolled in an after-school program costing $150 per week. The wife had always made lunches for the kids and the husband, but now that she has less time to spare, she signs the kids up for school lunches at a total cost of $17.50 per week. Her husband takes $5 a day with him to work to buy a sandwich and drink from the office vending machines. She takes frozen microwavable meals to her office at around $3 per day. Dinners more frequently consist of prepared meals from the grocery store than the scratch cooking she used to do.

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Posted in Financial Goals, Misc, Saving Money | No Comments »

Bartering Away the Recession

Posted February 5, 2009 by Bernz

As the daily economic news continues to paint a bleak picture of the health of American business, consumers seek out new ways to make the dollars stretch until the end of the month. A very old way of doing business is once again gaining popularity for its frugality and simplicity. Barter has been around ever since the beginning of commerce, only becoming more scarce as money took over as a means of trade. In the past several years, however, barter has become fashionable and organized barter networks have popped up all over the country.

Barter networks bring together those who have goods and services to trade and allow them to do so with pseudo-cash. These “barter dollars” accrue in members’ accounts and can be used to purchase other available items or services offered on the network. The bartering can be done face-to-face at barter meetings or, increasingly, on the internet.

Bartering helps the under-employed use their skills for compensation from customers who might not otherwise have the cash to spend. It then lets members purchase from any other member on the network with the “money” earned.

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Posted in Frugality, Misc, Saving Money | 2 Comments »

Will Obama Save Our Economy?

Posted January 27, 2009 by Bernz

The campaigns are over, the inauguration parties all cleaned up. All that’s left is the seemingly impossible task of fixing the American economy. President Obama has been left with quite the mess. The US is in the midst of what may be the deepest recession in the past hundred years. Every day, major corporations are announcing thousands upon thousands of layoffs. National retailers are closing their doors by the dozens. Homeowners are succumbing to foreclosures across the nation.

In the midst of all the depressing and scary economic news, one word is being repeated again and again by the Obama administration: stimulus. According to this economic theory, if enough government grease (in the form of money) is pumped into the American economic motor, consumer confidence will be restored and people will spend freely again. When consumers are willing to spend money, jobs are created. When jobs are created, workers have more money to spend. The whole process levers the economy upwards. So the theory goes.

President Obama’s stimulus package involves many facets including lending money to major corporations on the brink of bankruptcy, creating jobs directly by fixing the crumbling infrastructure of the country, and giving money back to taxpayers to spend as they wish. This is a 180 degree turn away from the supply-side economics of the Reagan era.

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Posted in Financial Goals, Misc | 2 Comments »