As the government and Federal Reserve campaign to head off a recession, many families are working hard to save money and reduce debt. Credit-card debts and other loans hang over us like a sword. By saving modest amounts, however, you can reap big rewards over time. And that doesn't require clipping coupons and washing out used coffee filters. Here are easy ways you can save $100 or more this year:
1. Plug into bargain electricity.
Mickey Greenblatt was spending nearly $250 a month on electricity for his home in Potomac, Md. When the retired executive called his utility company to find out why his bills were so high, the company offered to do a free home-energy audit. Greenblatt learned that simple things such as running his dishwasher at night rather than during the day could cut his bill by 40 percent. Taking advantage of such options as off-peak rates can save most consumers $100 a year.
Savings are also possible under "load management" programs. You get discounts for allowing your utility company to put a device on your water heater and air conditioner that switches them off briefly during periods of high demand.
2. Hit the brakes on automobile-insurance rates.
You can save substantially by increasing the deductibles on the comprehensive and collision portions of your policy. According to the Insurance Information Institute, raising collision deductibles from $200 to $500 could reduce your collision and comprehensive coverage by 15-30 percent. Squeeze out additional savings by asking about every possible discount, such as for carpooling, air bags, annual mileage below 10,000 miles -- even for teenage drivers with grade averages above a B.
3. Challenge your property tax.
Ruth Rejnis, author of Squeeze Your Home for Cash, recommends going to your local assessor's office and finding out what property taxes your neighbors are paying. If your house is similar but your taxes are higher, you may want to challenge your bill. Also, read the description of your home. Errors in square footage or the number of bathrooms could mean an overcharge. The assessor's office or local board of tax review can tell you how to file an appeal.
4. Shop for a bargain bank.
Look for free checking and no ATM fees. Also, if you have direct deposit of your paycheck, your bank might waive its monthly fee.
5. Remedy pricey prescriptions.
Cut your bills in half by buying generic drugs instead of name brands. Also, buy your prescriptions via mail order through a drugstore chain or your company health plan.
6. Pay off your plastic.
If you carry a credit-card balance from month to month, pay it back pronto. A $1000 balance at 18 percent blows nearly $200 a year in interest. If you can't pay it off in full, transfer your debt to a lower-rate card.
7. Say no to car extras.
Your car dealer may sell rustproofing and fabric protection at $100 a pop, and paint protection for as much as $250. "Usually these extras are the dealer's way to squeeze more money out of you," says Bob Elliston, author of What Car Dealers Won't Tell You. Do-it-yourself fabric protector costs about $10 a bottle. Paint protection is unnecessary, since most cars have many layers of paint. And skip rustproofing: cars come already treated so that they won't need it.
8. Take a longer waiting period for disability insurance.
If you can't work, disability insurance pays your living expenses. Many employers offer this. But if you must buy your own, accept the longest waiting period before benefits kick in -- as long as you can cover those expenses, suggests Shelly Branch, author of Dollar Pinching: A Consumer's Guide to Smart Spending. A healthy male carpenter earning $40,000 annually could pay up to $1800 a year for a policy with a 30-day wait. With a 90-day wait it could cost $800 to $1100.
9. Cancel mortgage insurance.
When you buy a house with less than 20 percent down, your lender may insist you buy private mortgage insurance (PMI) to protect against default. The average cost of this insurance is $45 a month, or $540 a year. However, once you have 20-percent equity (either because you've paid down your mortgage or because area property values have risen), you may be allowed to cancel the PMI.
10. Explore DRIPs.
If you buy stock, you can save on brokerage commissions by enrolling in a dividend reinvestment plan (DRIP). Offered by more than 900 companies, DRIPs allow shareholders to buy stock directly. You may have to be a shareholder of record, however, so find out if you'll need to use a broker to buy your first few shares. Then enroll in the DRIP.
11. Buy straight from the Treasury.
Another way to bypass brokers and save money on fees is to buy Treasury notes, bills or bonds directly. The minimum investment is $1000 for bonds and for notes with maturities between five and ten years, $5000 for notes with shorter maturities and $10,000 for bills. Ask the nearest branch of the Federal Reserve Bank for an application for a Treasury Direct account.
12. Clean out your closet.
When you deduct charitable donations of clothing at tax time, do you just guess $100? William Lewis, author of Cash for Your Used Clothing, says most people underestimate the worth of such items.
Before you donate, price each item against similar ones sold at the store where you drop them off. If you're in a 28-percent tax bracket, a donation worth $400 will earn you a tax deduction of at least $112.
13. Skip the service contract.
Extended warranties on electronics are rarely a good deal. According to Tom Garman, a Virginia Tech professor of consumer affairs, most product breakdowns occur in the first year and are covered by the manufacturer's warranty.
14. Flex your company's flexible spending account.
These accounts allow you to set aside part of your pretax salary for dependent-care costs and unreimbursed medical expenses. You decide at the beginning of the year how much money you want to set aside in the account. The downside is that if you don't use all the money, you lose it. However, if you're in the 28-percent tax bracket and allocate $500 to cover your health-insurance deductible, you'll cut taxes by $140.
15. Buy in bulk.
Items you may use a lot, such as paper towels and diapers, are often far cheaper when you buy in quantity. For example, Alan and Denise Fields, co-authors of Baby Bargains, say new parents buy an average of 2400 disposable diapers in their baby's first year alone. Diapers that cost 20 cents apiece in the packages sold at grocery shops and drugstores might go for 15 cents when bought in bulk at a discount store or warehouse club. Just a nickel a diaper could add up to an annual savings of $120.
16. Rethink your vacations.
"Homestay" programs offer free lodging all over the world to travelers who are themselves willing to host other members in their homes. Some groups charge an annual membership fee, but your savings can easily be worth more than a hundred dollars a day.
Tuesday, March 4, 2008
Sunday, March 2, 2008
Recession Proof Jobs - How Secure is Your Income if a Recession Hits?
There is much conversation lately as to whether we are headed towards, or already in, a recession. Talk of recession always makes the average consumer start worrying about job security. Is your job recession-proof? What jobs are likely to survive a recession? Will this change in the economy change your financial state? Yes, it all can be quite nerve wrecking.
First off, I am not a financial guru. I am just another citizen who is trying to make ends meet - just like most of you. If my financial/economy lingo is incorrect, I apologize.
Recession-Proof Jobs - Do You Have One?
A good rule of thumb is that jobs that are based on consumers “have-to’s” are fairly likely to survive a recession. As a consumer, I have to eat, I have to have electricity and water, I have to pay taxes, I have to have a car with gas that works, etc. I’m sure you can also make a long list of “have-to’s” in your life that are common for most of us.
On the other had, jobs that are NOT based on consumers “have-to’s” could feel a pinch. For example, I do NOT have to go out to eat. I do NOT have to go to the movies. I do NOT have to buy a new TV or iPod.
The jobs that supply needs I feel will be much more secure than those jobs that provide our wants.
Health care workers, government jobs …. they are secure. We all need health care, and we are all stuck with the government.
Know what other jobs can be quite recession-proof? Jobs where you save or make money for someone. Jobs that require special skills tend to be good jobs to have in a recession, also.
So why am I talking about recession proof jobs today? Seems a bit ‘off-topic’ for my blog, doesn’t it?
Stick with me… I have a point =)
Your Computer Can Provide a Good Job in a Recession
Yes, that computer that you are reading my words on right now could be the key to additional income or your sole source of income. People are doing it every single day. Matter of fact, those that have an online business enjoy a huge list of tax deductions and home based business tax advantages that can save the average family a LOT of money every year. The tax benefits alone are enough to keep reading…and start learning.
My goal of this blog is to get people started making some money online. I want those that are new and clueless to make their first $10 from time spent on their computer. I want you to feel the accomplishment and the amazement when a company mails you a check or dumps some cash into your PayPal account.
It is LIBERATING.
After your first ten dollars, I want to help you get to $10 a DAY… then let’s go to $10 an hour - every hour…. If you can get there, you can rinse and repeat all that you’ve learned and have $100 days… or $100 hours…. or more.
Is it EASY? No, it is not easy. You still have to work at it, you still have to learn and apply yourself…you still have to tackle the learning curve just like any other job.
Besides, nothing truly worth-while is EASY.
However, YOU are in control of your online job. No recession or boss or change of life-status can take that away from you.
How to Begin a Recession-Proof Job with Your Computer
If you are brand new to the concept of making money online, then I am sure this all sounds just peachy - but where in the world do you start? I have a series of posts that I did some time back for those that are brand-spanking new to what is called “internet marketing”. I start with a very basic and proven way to start your career online using all free methods. I picked this method for three main reasons.
Control
This internet marketing platform gives the marketer more ‘hands on’ control of the income earned. Those involved in this concept will actually see earnings from their direct efforts - and very quickly. You also get to decide how much time you put into it. No amount of time is too little - and no one sets your schedule for you. YOU are in control.
Internet Marketing Education
While promoting this platform, those new to this business will learn about affiliate marketing (making money/commissions for referring others to products, services, or companies), and about how to get exposure, and some marketing. Also they will learn a bit of HTML and learn to use “Free For All” sites like Squidoo, Associated Content, and blogs to help make MORE money online by promoting their business. The basics learned from this concept will give someone new to internet marketing the baseline of info and concept understanding to see what this business is all about.
This method flat-out teaches you to think differently. It takes your perception of the computer from “something to do when I’m bored or to check my email” to “what I do to make money…my computer is my office”.
It is 100% FREE
There is absolutely no cost to follow these strategies to begin making money online. It is a free education to let you see “behind the curtain” and teach yourself a new skill. And this skill you are learning can open up a world of opportunity for you - literally.
This is an investment of time into your most important asset - YOU.
Do You Want to be Recession-Proof?
Take some time and read How to Start Making Money Online - Step by Step. It is a four-part series of posts that will introduce you to the world of internet marketing. Take some time, get your ‘head around’ the concept, but not too long. I’m a big fan of a saying I read on a forum-
“Ready, Fire, Aim!”
This is very similar to my favorite arcade game, SkeeBall. You get points just about anywhere the ball lands!
Teach yourself something new. Roll the SkeeBall….Get a new skill….. Make that first $10……Be recession proof.
Ready? Good! You can “aim” later!
Souce: PotPieGirl.com
First off, I am not a financial guru. I am just another citizen who is trying to make ends meet - just like most of you. If my financial/economy lingo is incorrect, I apologize.
Recession-Proof Jobs - Do You Have One?
A good rule of thumb is that jobs that are based on consumers “have-to’s” are fairly likely to survive a recession. As a consumer, I have to eat, I have to have electricity and water, I have to pay taxes, I have to have a car with gas that works, etc. I’m sure you can also make a long list of “have-to’s” in your life that are common for most of us.
On the other had, jobs that are NOT based on consumers “have-to’s” could feel a pinch. For example, I do NOT have to go out to eat. I do NOT have to go to the movies. I do NOT have to buy a new TV or iPod.
The jobs that supply needs I feel will be much more secure than those jobs that provide our wants.
Health care workers, government jobs …. they are secure. We all need health care, and we are all stuck with the government.
Know what other jobs can be quite recession-proof? Jobs where you save or make money for someone. Jobs that require special skills tend to be good jobs to have in a recession, also.
So why am I talking about recession proof jobs today? Seems a bit ‘off-topic’ for my blog, doesn’t it?
Stick with me… I have a point =)
Your Computer Can Provide a Good Job in a Recession
Yes, that computer that you are reading my words on right now could be the key to additional income or your sole source of income. People are doing it every single day. Matter of fact, those that have an online business enjoy a huge list of tax deductions and home based business tax advantages that can save the average family a LOT of money every year. The tax benefits alone are enough to keep reading…and start learning.
My goal of this blog is to get people started making some money online. I want those that are new and clueless to make their first $10 from time spent on their computer. I want you to feel the accomplishment and the amazement when a company mails you a check or dumps some cash into your PayPal account.
It is LIBERATING.
After your first ten dollars, I want to help you get to $10 a DAY… then let’s go to $10 an hour - every hour…. If you can get there, you can rinse and repeat all that you’ve learned and have $100 days… or $100 hours…. or more.
Is it EASY? No, it is not easy. You still have to work at it, you still have to learn and apply yourself…you still have to tackle the learning curve just like any other job.
Besides, nothing truly worth-while is EASY.
However, YOU are in control of your online job. No recession or boss or change of life-status can take that away from you.
How to Begin a Recession-Proof Job with Your Computer
If you are brand new to the concept of making money online, then I am sure this all sounds just peachy - but where in the world do you start? I have a series of posts that I did some time back for those that are brand-spanking new to what is called “internet marketing”. I start with a very basic and proven way to start your career online using all free methods. I picked this method for three main reasons.
Control
This internet marketing platform gives the marketer more ‘hands on’ control of the income earned. Those involved in this concept will actually see earnings from their direct efforts - and very quickly. You also get to decide how much time you put into it. No amount of time is too little - and no one sets your schedule for you. YOU are in control.
Internet Marketing Education
While promoting this platform, those new to this business will learn about affiliate marketing (making money/commissions for referring others to products, services, or companies), and about how to get exposure, and some marketing. Also they will learn a bit of HTML and learn to use “Free For All” sites like Squidoo, Associated Content, and blogs to help make MORE money online by promoting their business. The basics learned from this concept will give someone new to internet marketing the baseline of info and concept understanding to see what this business is all about.
This method flat-out teaches you to think differently. It takes your perception of the computer from “something to do when I’m bored or to check my email” to “what I do to make money…my computer is my office”.
It is 100% FREE
There is absolutely no cost to follow these strategies to begin making money online. It is a free education to let you see “behind the curtain” and teach yourself a new skill. And this skill you are learning can open up a world of opportunity for you - literally.
This is an investment of time into your most important asset - YOU.
Do You Want to be Recession-Proof?
Take some time and read How to Start Making Money Online - Step by Step. It is a four-part series of posts that will introduce you to the world of internet marketing. Take some time, get your ‘head around’ the concept, but not too long. I’m a big fan of a saying I read on a forum-
“Ready, Fire, Aim!”
This is very similar to my favorite arcade game, SkeeBall. You get points just about anywhere the ball lands!
Teach yourself something new. Roll the SkeeBall….Get a new skill….. Make that first $10……Be recession proof.
Ready? Good! You can “aim” later!
Souce: PotPieGirl.com
Recession Proof Jobs
In the wake of the housing crisis, news abounds of a looming recession, with regular reports of financial gloom. It's no wonder workers are fretting over finances and the employment outlook for the coming months, as a recent Hudson Employment Index shows.
Workers shouldn't worry, experts say. Jobs in some industries do have good potential for weathering a financial storm. It's more important, though, for employees to focus on making themselves recession proof.
Best Businesses During a Recession
Even during boom times no job is fail-safe. But some industries are safer havens than others, experts say, such as healthcare, the federal government, clean technology, information technology, and sales and marketing.
"I think the recession proof jobs are where people need the goods and services regardless, like healthcare and pharmaceuticals. People are getting older, people are getting frailer, and demographics of the population are aging. Biosciences, physical therapy, occupational therapy-those are jobs that are as recession proof as they come. They also require specialized skills," says Jon Bender, managing partner with PrincetonOne, a New Jersey-based recruiting firm.
Sales and marketing positions and others supporting them are fairly sturdy, according to Kevin Donlin, author and creator of The Simple Job Search system. Anyone who makes or saves money for a company will be relatively safe, he says.
Federal government jobs also may be worth considering.
"Uncle Sam hires approximately 2 percent of America's total workforce and the pay and benefits are outstanding. Few feds lose their jobs during a recession and most downsizing in the federal government is based on attrition, not filling vacant positions, rather than letting people go. I know firsthand; from 1969 through January of 2005, I worked for Uncle Sam and went through a number of recessions and agency reorganizations during that time," says author and retired federal employee Dennis V. Damp.
With baby boomers leaving government jobs, there are many opportunities to land these positions, Damp says, noting the best time to act is before a recession.
Surviving a Recession - What to Do if a Recession Hits
During a recession isn't the best time to take charge of your work life and make drastic decisions, experts agree.
Marc Karasu, a career coach and former vice president of advertising and marketing at Yahoo! HotJobs, says workers should concentrate on their current job and highlight how they've exceeded expectations.
"Self-promotion is a fine thing, and there's nothing wrong with letting your superiors know in a professional and intelligent way that you're adding value. If you can, start demonstrating the value you add to a company through your annual performance review," Karasu says. "Also, meet with your boss and say where you are doing good, where you can improve. Bosses like to see people come to them proactively. The key is to do it today before a recession, so you don't look desperate."
Career expert Les McKeown says it's more difficult to identify recession proof jobs or industries than it was 15 years ago, so workers trying to build a career must establish their own individual security.
To do that, McKeown says, they must prove that it would cost their employer more to let them go than it would cost to keep them. Ultimately the employee is seen as someone who would flourish no matter where in the company he or she lands.
"At the end of the day the only way to make yourself recession proof is to make your opportunity cost as high as possible. [You want employers to] say, 'We can't let Jane go because we can put her anywhere,'" McKeown explains. "You must have a personal ability to add value. If you can do that, then you're as recession proof as anyone."
Source: Kristina Cowan payscale.com
Workers shouldn't worry, experts say. Jobs in some industries do have good potential for weathering a financial storm. It's more important, though, for employees to focus on making themselves recession proof.
Best Businesses During a Recession
Even during boom times no job is fail-safe. But some industries are safer havens than others, experts say, such as healthcare, the federal government, clean technology, information technology, and sales and marketing.
"I think the recession proof jobs are where people need the goods and services regardless, like healthcare and pharmaceuticals. People are getting older, people are getting frailer, and demographics of the population are aging. Biosciences, physical therapy, occupational therapy-those are jobs that are as recession proof as they come. They also require specialized skills," says Jon Bender, managing partner with PrincetonOne, a New Jersey-based recruiting firm.
Sales and marketing positions and others supporting them are fairly sturdy, according to Kevin Donlin, author and creator of The Simple Job Search system. Anyone who makes or saves money for a company will be relatively safe, he says.
Federal government jobs also may be worth considering.
"Uncle Sam hires approximately 2 percent of America's total workforce and the pay and benefits are outstanding. Few feds lose their jobs during a recession and most downsizing in the federal government is based on attrition, not filling vacant positions, rather than letting people go. I know firsthand; from 1969 through January of 2005, I worked for Uncle Sam and went through a number of recessions and agency reorganizations during that time," says author and retired federal employee Dennis V. Damp.
With baby boomers leaving government jobs, there are many opportunities to land these positions, Damp says, noting the best time to act is before a recession.
Surviving a Recession - What to Do if a Recession Hits
During a recession isn't the best time to take charge of your work life and make drastic decisions, experts agree.
Marc Karasu, a career coach and former vice president of advertising and marketing at Yahoo! HotJobs, says workers should concentrate on their current job and highlight how they've exceeded expectations.
"Self-promotion is a fine thing, and there's nothing wrong with letting your superiors know in a professional and intelligent way that you're adding value. If you can, start demonstrating the value you add to a company through your annual performance review," Karasu says. "Also, meet with your boss and say where you are doing good, where you can improve. Bosses like to see people come to them proactively. The key is to do it today before a recession, so you don't look desperate."
Career expert Les McKeown says it's more difficult to identify recession proof jobs or industries than it was 15 years ago, so workers trying to build a career must establish their own individual security.
To do that, McKeown says, they must prove that it would cost their employer more to let them go than it would cost to keep them. Ultimately the employee is seen as someone who would flourish no matter where in the company he or she lands.
"At the end of the day the only way to make yourself recession proof is to make your opportunity cost as high as possible. [You want employers to] say, 'We can't let Jane go because we can put her anywhere,'" McKeown explains. "You must have a personal ability to add value. If you can do that, then you're as recession proof as anyone."
Source: Kristina Cowan payscale.com
Thursday, February 28, 2008
What to do if you’re laid off in 2008 recession
It’s sad to hear about layoffs at companies like Yahoo. Right now it seems like a bad time to be laid off. I’m here to offer some hope.
I laid myself off in February 2002. Remember that time? It was far worse than what we’ve seen so far in the economic turmoil of 2008. It seemed like EVERYONE was laid off. There was even a Website, fuckedcompany.com, that tracked layoff after layoff. No good news, like the funding of Automattic, was coming out. 9/11 just happened and it seemed to be particularly dire.
But even in that tough time I found a job working at NEC. Here’s some tips I learned from that time.
1. Don’t get lazy. It might seem dire, but if you work it you WILL find a job. Some of my friends went on vacation, started drinking, or generally just hung out with their families. Those people took a LOT longer to find a job than the friends of mine who approached their time off with these tips.
2. Make sure you spend at least 30% of every day trying to find a job. That means working on your resume. Getting your cover letter finished. Sending out resumes. Searching the web for work. Networking. Etc. At first your time spent on these tasks should be a lot higher, but after weeks of watching the job sites for jobs and having your resume checked over by 10 of your friends you will naturally have more time to spend on other things.
3. Start a blog on the field you want to work in. Want to be a PHP programmer? Start a PHP blog and make sure you put world class stuff there. Link to EVERYONE who has a PHP blog. But that’s only the beginning.
4. Do things that will get you to be recognized as a world leader in the field you want to be in. Are you a programmer? Build something and put it up! Share your knowledge on your blog (give tips you’ve learned). Are you a program manager? Those jobs will be tougher to find, but you should demonstrate that you are a great manager of people as well as that you’re expert on the kinds of things you want to do. Demo! Demo! Demo!
5. Learn from Loic Le Meur. How did he get thousands of videos uploaded on Seesmic everyday? He networked. He visited tons of journalists, bloggers, executives. He is a consumate networker (you should watch him work the halls here at the World Economic Forum).
6. Do a video everyday on YouTube that demonstrates something you know. Loic does a video everyday. If you’re laid off you have absolutely no excuses. Get a cheap Web cam and get over to YouTube or Seesmic.
7. Show your friends your resume and cover letter. Don’t have any friends? Now is the time to make some. Call up some interesting people and ask for an informational interview. This is particularly key if you work at a big company and are getting laid off. I watched people at Microsoft get laid off and the ones who had tons of internal informational interviews got new jobs fast. The key is to meet people everyday and get in front of them. Not to beg for a job, but to do research on the industry you want to work in. You’d be amazed how showing some interest in your industry will get noticed itself.
8. Do the basics. I got my NEC job by sending a resume into a job that I found on Craig’s List. Yes, my blog helped me AFTER I got the interview, but I got the interview just by having a great cover letter and an interesting resume.
9. Don’t feel bad about taking government assistance. You’ll need it to pay your bills. I took it and it helped me get over that tough period.
10. Go to any job networking session you learn about. All of them were valuable to me, even though they didn’t necessarily bring me a job. Part of it is just feeling like you’re doing everything you can to get back on your feet. It’s an attitude thing. If you have an attitude that you’re going to work at this that will come across and will bring opportunities to you.
11. Go where the money is. If you are laid off and you haven’t sent your resume to Matt Mullenweg this morning, why not? People with new funding are the ones who are hiring. You want to work for them, so do what you can to at minimum get an informational interview. Why don’t you interview Matt for your blog? You never know, he just might give you an interview and that might lead to a discussion about how you could fit into his company. Even if it doesn’t, at least you get an interesting interview with someone in the industry who is seeing success. Other employers want to be like Matt, so if you have some insights to his success you might be surprised by how that gets you job interviews.
12. Take a little bit of time to work on family and health. You probably haven’t been paying enough attention to these two things. This is the time to start some healthy habits. Give up smoking, if you’re doing that. Drink less (the temptation will be to drink more, don’t give in). Get more exercise. Yes, I should take my own advice (I went for a long walk this morning in Davos and had fish last night).
13. Volunteer. Let’s say you are going to be out of work for six months. What could you do with six months of your time? Make sure you come away with it with a great project under your belt. Why not volunteer your time with a charity that could use your skills? Not only will you feel good about yourself, you’ll come away with job experience so you won’t have a hole in your resume (building an IT system for the Red Cross looks damn impressive — saying you were “on the beach” for six months does not). Plus you’ll make great friends with people who are trying to improve the world (they are typically the kinds of friends you should have anyway).
14. Make sure you take advantage of any help your former employer is offering. Sometimes they have retraining or other programs that might help you land an even better job.
15. See if you can keep coming into the office. This isn’t open to everyone, but at Userland I kept coming into work everyday after the paychecks stopped. That made me feel better, plus it gave me the ability to use phones, stay away from negative situations (do you really want to be around family all day, everyday, who might remind you that you need to find a job?) as well as give you a place to work hard on finding your new job.
16. Go to every business event you can attend. Can’t afford to get in? Me neither and I have a job! Hang out in the hallways. You never know who you might meet. At minimum you’ll get interesting interviews for your blog. Have your resumes ready.
17. Always have your suit ready. Some interviews happen fast “can you be here this afternoon?” The one who is ready will get the interview.
On your resume and cover letter. I found a TON of tips online for how to improve yours. Those tips work. Listen to them. My cover letter is what got me my interview (the guy who ran the group told me that later). My cover letter’s approach came off of tips I found online. Do Google searches for things like “how to write a great cover letter.”
Do you have any tips? Help out people by posting your own blogs and linking to them in my comment area here. Good luck and keep your head up. Lots of people have gotten fired. I’ve talked with quite a few CEOs here at the World Economic Forum and you’d be surprised at how many of them have had bad times in their careers.
I’ll be asking business leaders this week for their tips and will come back to this topic later in the week.
Source: http://scobleizer.com
I laid myself off in February 2002. Remember that time? It was far worse than what we’ve seen so far in the economic turmoil of 2008. It seemed like EVERYONE was laid off. There was even a Website, fuckedcompany.com, that tracked layoff after layoff. No good news, like the funding of Automattic, was coming out. 9/11 just happened and it seemed to be particularly dire.
But even in that tough time I found a job working at NEC. Here’s some tips I learned from that time.
1. Don’t get lazy. It might seem dire, but if you work it you WILL find a job. Some of my friends went on vacation, started drinking, or generally just hung out with their families. Those people took a LOT longer to find a job than the friends of mine who approached their time off with these tips.
2. Make sure you spend at least 30% of every day trying to find a job. That means working on your resume. Getting your cover letter finished. Sending out resumes. Searching the web for work. Networking. Etc. At first your time spent on these tasks should be a lot higher, but after weeks of watching the job sites for jobs and having your resume checked over by 10 of your friends you will naturally have more time to spend on other things.
3. Start a blog on the field you want to work in. Want to be a PHP programmer? Start a PHP blog and make sure you put world class stuff there. Link to EVERYONE who has a PHP blog. But that’s only the beginning.
4. Do things that will get you to be recognized as a world leader in the field you want to be in. Are you a programmer? Build something and put it up! Share your knowledge on your blog (give tips you’ve learned). Are you a program manager? Those jobs will be tougher to find, but you should demonstrate that you are a great manager of people as well as that you’re expert on the kinds of things you want to do. Demo! Demo! Demo!
5. Learn from Loic Le Meur. How did he get thousands of videos uploaded on Seesmic everyday? He networked. He visited tons of journalists, bloggers, executives. He is a consumate networker (you should watch him work the halls here at the World Economic Forum).
6. Do a video everyday on YouTube that demonstrates something you know. Loic does a video everyday. If you’re laid off you have absolutely no excuses. Get a cheap Web cam and get over to YouTube or Seesmic.
7. Show your friends your resume and cover letter. Don’t have any friends? Now is the time to make some. Call up some interesting people and ask for an informational interview. This is particularly key if you work at a big company and are getting laid off. I watched people at Microsoft get laid off and the ones who had tons of internal informational interviews got new jobs fast. The key is to meet people everyday and get in front of them. Not to beg for a job, but to do research on the industry you want to work in. You’d be amazed how showing some interest in your industry will get noticed itself.
8. Do the basics. I got my NEC job by sending a resume into a job that I found on Craig’s List. Yes, my blog helped me AFTER I got the interview, but I got the interview just by having a great cover letter and an interesting resume.
9. Don’t feel bad about taking government assistance. You’ll need it to pay your bills. I took it and it helped me get over that tough period.
10. Go to any job networking session you learn about. All of them were valuable to me, even though they didn’t necessarily bring me a job. Part of it is just feeling like you’re doing everything you can to get back on your feet. It’s an attitude thing. If you have an attitude that you’re going to work at this that will come across and will bring opportunities to you.
11. Go where the money is. If you are laid off and you haven’t sent your resume to Matt Mullenweg this morning, why not? People with new funding are the ones who are hiring. You want to work for them, so do what you can to at minimum get an informational interview. Why don’t you interview Matt for your blog? You never know, he just might give you an interview and that might lead to a discussion about how you could fit into his company. Even if it doesn’t, at least you get an interesting interview with someone in the industry who is seeing success. Other employers want to be like Matt, so if you have some insights to his success you might be surprised by how that gets you job interviews.
12. Take a little bit of time to work on family and health. You probably haven’t been paying enough attention to these two things. This is the time to start some healthy habits. Give up smoking, if you’re doing that. Drink less (the temptation will be to drink more, don’t give in). Get more exercise. Yes, I should take my own advice (I went for a long walk this morning in Davos and had fish last night).
13. Volunteer. Let’s say you are going to be out of work for six months. What could you do with six months of your time? Make sure you come away with it with a great project under your belt. Why not volunteer your time with a charity that could use your skills? Not only will you feel good about yourself, you’ll come away with job experience so you won’t have a hole in your resume (building an IT system for the Red Cross looks damn impressive — saying you were “on the beach” for six months does not). Plus you’ll make great friends with people who are trying to improve the world (they are typically the kinds of friends you should have anyway).
14. Make sure you take advantage of any help your former employer is offering. Sometimes they have retraining or other programs that might help you land an even better job.
15. See if you can keep coming into the office. This isn’t open to everyone, but at Userland I kept coming into work everyday after the paychecks stopped. That made me feel better, plus it gave me the ability to use phones, stay away from negative situations (do you really want to be around family all day, everyday, who might remind you that you need to find a job?) as well as give you a place to work hard on finding your new job.
16. Go to every business event you can attend. Can’t afford to get in? Me neither and I have a job! Hang out in the hallways. You never know who you might meet. At minimum you’ll get interesting interviews for your blog. Have your resumes ready.
17. Always have your suit ready. Some interviews happen fast “can you be here this afternoon?” The one who is ready will get the interview.
On your resume and cover letter. I found a TON of tips online for how to improve yours. Those tips work. Listen to them. My cover letter is what got me my interview (the guy who ran the group told me that later). My cover letter’s approach came off of tips I found online. Do Google searches for things like “how to write a great cover letter.”
Do you have any tips? Help out people by posting your own blogs and linking to them in my comment area here. Good luck and keep your head up. Lots of people have gotten fired. I’ve talked with quite a few CEOs here at the World Economic Forum and you’d be surprised at how many of them have had bad times in their careers.
I’ll be asking business leaders this week for their tips and will come back to this topic later in the week.
Source: http://scobleizer.com
Tuesday, February 26, 2008
How To Survive Excessive Recession Hand-Wringing
Howdy,
I’m gonna want your opinion here in a minute.
But first, I have a very relevant question for you: Has the looming recession got you scared yet?
The mainstream media sure hopes so. Sells more newspapers, boosts cable ratings on CNN and Fox and MSNBC, makes the populace hyper-aware (like jittery squirrels gathering nuts in a dog park), and gives advertisers a tidy little narrative to help position product.
An audience with frayed nerves is an audience paying attention.
They like that.
Entrepreneurs and small biz owners can be especially vulnerable to economic downturns.
Or even talk of an economic downturn.
Frequent news stories about financial doom tend to bring on the “Yikes, we’re all gonna die!” response. Even in people who should know better.
My pal Perry Marshall reminded me of the “should know better” part today, when he sent out a blog-alert email titled “My rant about this so-called recession”. Damn good rant, too.
Basically, he noticed that his list seemed to self-select themselves into two distinct categories: (1) The whiny 95%, who seem to almost welcome economic disaster (as definitive relief from the anxiety of waiting for the hammer, so they can blame any pending failure on “outside circumstances”)… and (2) the “Alpha Warriors”, who barely acknowledge anything the mainstream media say about the economy.
Perry thought the Alpha Warrior segment of his list hovered around 5%. After I called him (to congratulate him on an insightful post), we both immediately agreed that it’s really probably closer to 1%.
In other words, in a room of 100 people, the folks ready to latch onto recession fears as an excuse to crawl into a fetal position and suck their thumb would dominate the discussion, the physical space, and the mindset.
There would be one lone dude, in the corner, ignoring them and getting on with business.
This is an important observation.
The narrative of your world-view can deeply affect how you act.
I hear from entrepreneurs all the time who were shocked, saddened, and even discouraged by the cacophony of negative voices around them when they decided to try their hand at marketing. If the opinion of your family, friends, co-workers and even future colleagues matters to you… just skip starting your own biz.
Cuz you will rarely hear an encouraging word. Most folks don’t like change, and resent the turbulence you cause by ignoring obstacles and overcoming problems to go after a goal.
Consider how many people around you base their world-view on the idea that “you can’t fight city hall”, or “The Man controls everything”, or “The little guy doesn’t stand a chance”. No dream of independence or getting rich can survive that kind of negativity. If they HAD a dream, it’s gone now.
And you’re kind of throwing that sad fact back in their face by going after your dream.
Not everyone is like that. But do not be shocked when you hear about even close friends secretly rooting for your collapse, or taking delight in the struggles you encounter. If you fail, they are proven right — you never really stood a chance. What a fool you were for even trying.
Worse, if you succeed, you very likely will drift away from the slacker world they are so comfy residing in. You’ll force them to come up with new excuses for their own lack of movement.
And that’s a horrible thing to do to friends. You naughty person, you.
The media loves a recession, because it means no slow news days for a while. Every utterance from the Fed is a headline, weekly columns write themselves (just pick two recession cliches from your cliche file and rub ‘em together), and “man in the street” interviews will always yield some nice emotional sound bites.
Great marketers see a recession as something else: An economic burp that may or may not affect them. If it does, then you adjust accordingly. If it doesn’t, then it’s full speed ahead.
No hand-wringing allowed.
As Perry pointed out, it’s now a global market, dude. The dollar’s fade is the euro’s goose (and, if you’re exporting, the best news you could ever hear). Maslow’s Hierarchy of Needs doesn’t vanish just because the Gross Domestic Product does a prat fall.
People still need to eat, still need a roof over their heads, still demand luxury.
And still need advice. Maybe more than ever.
Many will need new jobs. A recession isn’t fun by any means, and neither is it a joke.
However, neither is it an excuse to fold up shop and go hide.
I happen to know the number one real estate broker in town here. The Reno market went from being one of the top five hottest housing booms just a year or so ago… to becoming one of the worst in the nation. Prices, values and capital are plummeting.
Yet, people still need houses. They move away, or move here from somewhere else. Or move up, or down, as the nest requires more or less space. Many still see the cheap loans (as the Fed lowers rates to almost ridiculous levels) and distressed sales available as excellent reasons to buy or sell, or both.
Sure, the easy days of the boom are gone. Have a good cry, wipe your nose, and get back to the job at hand. Adjust your strategy to meet the challenge.
This guy was the top realtor during the boom, and he’s the top realtor now that the market has lapsed into a fever. He just adjusted.
It’s the same with every other market I have hooks in. The smart guys note the nuances of how things have changed, and redirect their energies to what works NOW.
The not-so-smart guys shriek and lose sleep and curse cruel Fate. And pine for the good old days, when their limited bag of tactics was effective.
There’s a saying in the financial world: Never confuse genius with a bull market.
That concept holds for everything else, too. I remember an obscure comedy show where Gilbert Gottfried (the shrimpy little guy with the scrunched-up face) asked a couple of buffed-out GQ male models for tips on picking up women. Their first piece of advice: Never acknowledge a woman the first time she approaches you and begs for your attention. Just keep talking to all the women who come up to you and…
“Wait a minute,” yells Gottfried. “I’ve never had a woman approach me in my life.”
The two studs looked baffled. And had no further advice.
Dan Kennedy and I have often joked with each other about what will happen to the youngest part of the online entrepreneurial world the first time the economy has a fit. There are gazillionaires out there (Mark Cuban comes to mind) who barely sweated earning their mint, because they stumbled blindly into virgin groves of low-hanging fruit, and gorged without effort or competition (sometimes for years).
Taking advice from them would be like asking a Vanderbilt how to cook a steak. (”Just ring for the downstairs maid”, of course.)
Take it from a guy who’s weathered multiple recessions, the collapse of entire financial institutions (I was a rookie copywriter writing financial direct mail packages when the S&L crisis lopped an entire arm from the banking community), and the meltdown of more hot markets than I can count (from Pet Rocks to McMansions).
Ignore the doomsayers. Focus on the fundamentals — good product, good value in your offer, good traffic generation, and the dedicated nurturing of your list. If it feels right to downsize (either in your life, by living debt-free, or in your biz, by trimming the fat), then do so. If your old way of doing things isn’t producing the results you need, try something else. Test more diligently. Study your market for pain that needs attention, and attend to it.
I like that term of Perry’s, “Alpha Warriors”.
But in my mind, you’re really just the Adult In The Room when you continue to take care of biz when everyone else is freaking out.
You may be the only adult in the room, too… and you may be trashed for your refusal to panic… but when you know a fresh game is afoot, you gather your resources and engage anyway. To succeed as an entrepreneur, you gotta be your own best friend.
Seems like obvious advice, doesn’t it.
Isn’t.
Takes a little courage, a little faith in your skills and ability to face unpredictable obstacles and overcome them, and a lot of M*A*S*H style humor. Because things can get gruesome, and the media will make sure everyone feels the pain from every obscure corner of the economy.
I actually increase my charitable donations during downturns, even when my income may be flat-lining a bit.
Just to remind myself that true success is the ability to make a difference. In your own life, and in the lives of people you share this hunk of wet rock with.
So please don’t panic. Take a deep breath, and know that the media will continue to treat things like an ongoing George Romero “Night Of The Living Dead” sequel.
And I’d really like to know…
What do YOU think about the talk of recession?
Are you doing anything differently? Are you losing sleep?
Any additional advice, either from experience or from a mentor or advisor?
Blogs like this are the “antidote” to the ravings of the mainstream media, you know. If you’ve got insight to living through roller coaster Dow rides and market busts, let’s hear it.
Stay frosty,
John Carlton
www.marketingrebel.com
I’m gonna want your opinion here in a minute.
But first, I have a very relevant question for you: Has the looming recession got you scared yet?
The mainstream media sure hopes so. Sells more newspapers, boosts cable ratings on CNN and Fox and MSNBC, makes the populace hyper-aware (like jittery squirrels gathering nuts in a dog park), and gives advertisers a tidy little narrative to help position product.
An audience with frayed nerves is an audience paying attention.
They like that.
Entrepreneurs and small biz owners can be especially vulnerable to economic downturns.
Or even talk of an economic downturn.
Frequent news stories about financial doom tend to bring on the “Yikes, we’re all gonna die!” response. Even in people who should know better.
My pal Perry Marshall reminded me of the “should know better” part today, when he sent out a blog-alert email titled “My rant about this so-called recession”. Damn good rant, too.
Basically, he noticed that his list seemed to self-select themselves into two distinct categories: (1) The whiny 95%, who seem to almost welcome economic disaster (as definitive relief from the anxiety of waiting for the hammer, so they can blame any pending failure on “outside circumstances”)… and (2) the “Alpha Warriors”, who barely acknowledge anything the mainstream media say about the economy.
Perry thought the Alpha Warrior segment of his list hovered around 5%. After I called him (to congratulate him on an insightful post), we both immediately agreed that it’s really probably closer to 1%.
In other words, in a room of 100 people, the folks ready to latch onto recession fears as an excuse to crawl into a fetal position and suck their thumb would dominate the discussion, the physical space, and the mindset.
There would be one lone dude, in the corner, ignoring them and getting on with business.
This is an important observation.
The narrative of your world-view can deeply affect how you act.
I hear from entrepreneurs all the time who were shocked, saddened, and even discouraged by the cacophony of negative voices around them when they decided to try their hand at marketing. If the opinion of your family, friends, co-workers and even future colleagues matters to you… just skip starting your own biz.
Cuz you will rarely hear an encouraging word. Most folks don’t like change, and resent the turbulence you cause by ignoring obstacles and overcoming problems to go after a goal.
Consider how many people around you base their world-view on the idea that “you can’t fight city hall”, or “The Man controls everything”, or “The little guy doesn’t stand a chance”. No dream of independence or getting rich can survive that kind of negativity. If they HAD a dream, it’s gone now.
And you’re kind of throwing that sad fact back in their face by going after your dream.
Not everyone is like that. But do not be shocked when you hear about even close friends secretly rooting for your collapse, or taking delight in the struggles you encounter. If you fail, they are proven right — you never really stood a chance. What a fool you were for even trying.
Worse, if you succeed, you very likely will drift away from the slacker world they are so comfy residing in. You’ll force them to come up with new excuses for their own lack of movement.
And that’s a horrible thing to do to friends. You naughty person, you.
The media loves a recession, because it means no slow news days for a while. Every utterance from the Fed is a headline, weekly columns write themselves (just pick two recession cliches from your cliche file and rub ‘em together), and “man in the street” interviews will always yield some nice emotional sound bites.
Great marketers see a recession as something else: An economic burp that may or may not affect them. If it does, then you adjust accordingly. If it doesn’t, then it’s full speed ahead.
No hand-wringing allowed.
As Perry pointed out, it’s now a global market, dude. The dollar’s fade is the euro’s goose (and, if you’re exporting, the best news you could ever hear). Maslow’s Hierarchy of Needs doesn’t vanish just because the Gross Domestic Product does a prat fall.
People still need to eat, still need a roof over their heads, still demand luxury.
And still need advice. Maybe more than ever.
Many will need new jobs. A recession isn’t fun by any means, and neither is it a joke.
However, neither is it an excuse to fold up shop and go hide.
I happen to know the number one real estate broker in town here. The Reno market went from being one of the top five hottest housing booms just a year or so ago… to becoming one of the worst in the nation. Prices, values and capital are plummeting.
Yet, people still need houses. They move away, or move here from somewhere else. Or move up, or down, as the nest requires more or less space. Many still see the cheap loans (as the Fed lowers rates to almost ridiculous levels) and distressed sales available as excellent reasons to buy or sell, or both.
Sure, the easy days of the boom are gone. Have a good cry, wipe your nose, and get back to the job at hand. Adjust your strategy to meet the challenge.
This guy was the top realtor during the boom, and he’s the top realtor now that the market has lapsed into a fever. He just adjusted.
It’s the same with every other market I have hooks in. The smart guys note the nuances of how things have changed, and redirect their energies to what works NOW.
The not-so-smart guys shriek and lose sleep and curse cruel Fate. And pine for the good old days, when their limited bag of tactics was effective.
There’s a saying in the financial world: Never confuse genius with a bull market.
That concept holds for everything else, too. I remember an obscure comedy show where Gilbert Gottfried (the shrimpy little guy with the scrunched-up face) asked a couple of buffed-out GQ male models for tips on picking up women. Their first piece of advice: Never acknowledge a woman the first time she approaches you and begs for your attention. Just keep talking to all the women who come up to you and…
“Wait a minute,” yells Gottfried. “I’ve never had a woman approach me in my life.”
The two studs looked baffled. And had no further advice.
Dan Kennedy and I have often joked with each other about what will happen to the youngest part of the online entrepreneurial world the first time the economy has a fit. There are gazillionaires out there (Mark Cuban comes to mind) who barely sweated earning their mint, because they stumbled blindly into virgin groves of low-hanging fruit, and gorged without effort or competition (sometimes for years).
Taking advice from them would be like asking a Vanderbilt how to cook a steak. (”Just ring for the downstairs maid”, of course.)
Take it from a guy who’s weathered multiple recessions, the collapse of entire financial institutions (I was a rookie copywriter writing financial direct mail packages when the S&L crisis lopped an entire arm from the banking community), and the meltdown of more hot markets than I can count (from Pet Rocks to McMansions).
Ignore the doomsayers. Focus on the fundamentals — good product, good value in your offer, good traffic generation, and the dedicated nurturing of your list. If it feels right to downsize (either in your life, by living debt-free, or in your biz, by trimming the fat), then do so. If your old way of doing things isn’t producing the results you need, try something else. Test more diligently. Study your market for pain that needs attention, and attend to it.
I like that term of Perry’s, “Alpha Warriors”.
But in my mind, you’re really just the Adult In The Room when you continue to take care of biz when everyone else is freaking out.
You may be the only adult in the room, too… and you may be trashed for your refusal to panic… but when you know a fresh game is afoot, you gather your resources and engage anyway. To succeed as an entrepreneur, you gotta be your own best friend.
Seems like obvious advice, doesn’t it.
Isn’t.
Takes a little courage, a little faith in your skills and ability to face unpredictable obstacles and overcome them, and a lot of M*A*S*H style humor. Because things can get gruesome, and the media will make sure everyone feels the pain from every obscure corner of the economy.
I actually increase my charitable donations during downturns, even when my income may be flat-lining a bit.
Just to remind myself that true success is the ability to make a difference. In your own life, and in the lives of people you share this hunk of wet rock with.
So please don’t panic. Take a deep breath, and know that the media will continue to treat things like an ongoing George Romero “Night Of The Living Dead” sequel.
And I’d really like to know…
What do YOU think about the talk of recession?
Are you doing anything differently? Are you losing sleep?
Any additional advice, either from experience or from a mentor or advisor?
Blogs like this are the “antidote” to the ravings of the mainstream media, you know. If you’ve got insight to living through roller coaster Dow rides and market busts, let’s hear it.
Stay frosty,
John Carlton
www.marketingrebel.com
How to Survive an Economic Recession
Economic recession is a fact of life, part of the ebb and flow of the economy. There are times of great economic growth, times of little change, and periods where the economy draws back, or recedes. Times of economic recession do not have to be frightening, especially if you prepare ahead of time. Some entrepreneurs even profit from an economic recession. Here are a few simple starting tips to help survive an economic recession.
Step 1:
Read about how to survive an economic recession. Buy or borrow "Financial Reckoning Day: Surviving the Soft Depression of the 21st Century" by William Bonner and "Conquer the Crash: You Can Survive and Prosper in a Deflationary Depression" by Robert R. Prechter.
Step 2:
Work in a critical sector to avoid job loss during an economic recession. Consider health care, food production and supply, government jobs and military careers. Avoid managerial jobs in retail sectors or construction-related jobs that may feel the pinch when cash is tight.
Step 3:
Minimize spending during an economic recession and save money for the tightest times. Buy only necessities, such as food and fuel, if money is extremely tight during an economic recession. Learn to make and fix items as much as possible.
Step 4:
Find a niche. Even when cash is scarce, there is still money to be made if you have the skills and services people need. Grow extra food to sell, learn to repair roof leaks or rent out a basement apartment to someone downsizing their living space. Help others save money and you may have a side business.
Step 5:
Take on no new debt during an economic recession. Your ability to survive tight times is hampered by debt; learn to live on less money than you make, saving as much as possible for potential loss of income and inflated prices.
Source: ehow.com
Step 1:
Read about how to survive an economic recession. Buy or borrow "Financial Reckoning Day: Surviving the Soft Depression of the 21st Century" by William Bonner and "Conquer the Crash: You Can Survive and Prosper in a Deflationary Depression" by Robert R. Prechter.
Step 2:
Work in a critical sector to avoid job loss during an economic recession. Consider health care, food production and supply, government jobs and military careers. Avoid managerial jobs in retail sectors or construction-related jobs that may feel the pinch when cash is tight.
Step 3:
Minimize spending during an economic recession and save money for the tightest times. Buy only necessities, such as food and fuel, if money is extremely tight during an economic recession. Learn to make and fix items as much as possible.
Step 4:
Find a niche. Even when cash is scarce, there is still money to be made if you have the skills and services people need. Grow extra food to sell, learn to repair roof leaks or rent out a basement apartment to someone downsizing their living space. Help others save money and you may have a side business.
Step 5:
Take on no new debt during an economic recession. Your ability to survive tight times is hampered by debt; learn to live on less money than you make, saving as much as possible for potential loss of income and inflated prices.
Source: ehow.com
Sunday, February 24, 2008
Some ideas
Not sure I agree with most of these ideas but you may
http://www.sciforums.com/showthread.php?t=62383
http://www.sciforums.com/showthread.php?t=62383
The Vice Fund
One thing that people don't give up in a recession are their vices such as tobacco, alcohol and gambling. So if you were to invest in the stock market in hard times, its a pretty good chance that while other stocks are plumetting, vice stocks are going to hold their own.
Enter the Vice Fund : http://finance.yahoo.com/q?s=vicex. While I make no comment on how ethical this may or may not be, here's their blurb;
Enter the Vice Fund : http://finance.yahoo.com/q?s=vicex. While I make no comment on how ethical this may or may not be, here's their blurb;
The Vice Fund invests in companies, both domestic and foreign, engaged in theaerospace and defense industries, owners and operators of casinos and gaming facilities, manufacturers of gaming equipment such as slot machines, manufacturers of cigarettes and other tobacco products, and brewers, distillers,vintners and producers of other alcoholic beverages.We believe that there are numerous investment opportunities in these sectors which have been largely overlooked by other funds. While many of the most widely held and well-known mutual fund families invest in companies doing business in these sectors, NO OTHER FUND CONCENTRATES SOLELY ON THESE FOUR SECTORS.Our rigorous focus on aerospace/defense, gaming, tobacco and alcoholic beverages - along with our vast experience navigating within them - provides our investors with maximum exposure to these sectors.
Preparations to survive a recession
Preparations for a recession are a little like preparations for a freak snowstorm on the M11: hope for the best and make sure you've got plenty of water in your car. You and I can't do much more about the economy than we can about the weather. There are things you can do, however, to position yourself upwind of an economic storm.
1. Live within your means. Most people have a good idea of their income, but little idea of their outgoings. Even when they do try to put together a budget, says consumer champion Martin Lewis, they do it wrong. "They don't put Christmas in and they don't put their summer holiday in," he says. "They multiply by four what they spend a week over a month, when it's actually 4.33. You might not think that's a big deal, but trust me - over a year, that adds up." Lewis's own comprehensive budget, downloadable at moneysavingexpert.com/budgeting, should tell you whether you spend more than you earn.
2. Sort out your mortgage. If your fixed-rate term ends in the next nine months, bear in mind that you will need about three months to secure the best new deal. Take advice from an independent broker.
3. Reduce your debt. If you can't pay off your credit cards right away, make sure you're paying as little interest as possible by switching cards. In these uncertain times, Lewis is advising against short-term, zero- interest balance transfers, in favour of deals that offer low interest rates (eg 5.8%) for the life of the outstanding balance.
4. Stop buying stuff. This isn't the time for large, one-off, discretionary purchases. Make modest holiday plans, postpone redecorating and hang on to your clapped-out car for another year. There will be plenty of as-new BMWs going cheap once we hit rock bottom.
5. Spend less on what you buy already. According to Lewis, the average family overspends by £5,000 per year, simply by paying too much for things. This includes the obvious, like insurance and mortgages, but the full list (see moneysavingexpert.com/moneymakeover) includes broadband, train fares, gym costs and contact lenses.
Source: Tim Dowling
1. Live within your means. Most people have a good idea of their income, but little idea of their outgoings. Even when they do try to put together a budget, says consumer champion Martin Lewis, they do it wrong. "They don't put Christmas in and they don't put their summer holiday in," he says. "They multiply by four what they spend a week over a month, when it's actually 4.33. You might not think that's a big deal, but trust me - over a year, that adds up." Lewis's own comprehensive budget, downloadable at moneysavingexpert.com/budgeting, should tell you whether you spend more than you earn.
2. Sort out your mortgage. If your fixed-rate term ends in the next nine months, bear in mind that you will need about three months to secure the best new deal. Take advice from an independent broker.
3. Reduce your debt. If you can't pay off your credit cards right away, make sure you're paying as little interest as possible by switching cards. In these uncertain times, Lewis is advising against short-term, zero- interest balance transfers, in favour of deals that offer low interest rates (eg 5.8%) for the life of the outstanding balance.
4. Stop buying stuff. This isn't the time for large, one-off, discretionary purchases. Make modest holiday plans, postpone redecorating and hang on to your clapped-out car for another year. There will be plenty of as-new BMWs going cheap once we hit rock bottom.
5. Spend less on what you buy already. According to Lewis, the average family overspends by £5,000 per year, simply by paying too much for things. This includes the obvious, like insurance and mortgages, but the full list (see moneysavingexpert.com/moneymakeover) includes broadband, train fares, gym costs and contact lenses.
Source: Tim Dowling
Credit Crunch: How to Survive the Recession
The news is bad. The “housing bubble” has burst, job growth has become job loss, and the cost of credit is going nowhere but through the roof. It looks like the ’shoestring’ some of us have been living on for awhile now just got a little more frayed.
While there is lots of moaning and groaning about how bad things are getting out in the real world of trying to make do, there’s not a whole lot of good advice about how the middle class can hope to survive the crunch. I’ve surfed around a bit and found a few pages offering real help and analysis, and have linked those at the bottom of this entry.
First and foremost, it’s going to be important for middle class homeowners to hold on to their property through the duration of the coming recession. Though easy credit in the recent past has saddled many homeowners with second mortgages, the interest rates have been at record lows for those with pretty good credit ratings. Many homeowners used that money to pay down other debts (cars, credit cards, other high interest consumer loans, etc.) rather than to add physical value to their homes (new roofing, siding, windows, etc.), so now is not the time to try and sell.
So the best advice is to hang on - rearrange your family’s spending habits and learn to do without a lot of the consumerist ‘extras’ you may have become used to buying on a regular basis. In other words, people need to change their habits as well as their expectations. And perhaps in the process discover that life really isn’t just a game of ’stuff’ collecting… that happiness doesn’t come with a hefty price tag.
If you’ve paid down other debt with a second mortgage, you’re in good shape if you didn’t get one of those adjustable rate scams. The 6-8% interest rate on mortgages is not only a tax deduction for those who itemize, it’s one of the cheapest forms of credit overall. Paying off that car is always a good idea, as auto loans are ridiculously expensive, and gas prices aren’t going to be going down any time soon - it costs us more and more just to get to and from work these days. Credit cards are also expensive, and about to get more expensive as companies make use of the contract fine print to raise the rates to whatever they like, and card holders have nothing to say about it.
Best advice on that is to cut up those cards now and make up your mind to either pay cash for purchases or do without. In this effort, the adventure of Thrifting for clothes and other household items can become a fun pastime for couples and families without breaking the budget. Should you find yourself in sudden need of a major appliance, there is a whole world of second-hand recycling out there that might surprise the average American consumer used to always buying things brand new and on credit.
We’ve probably purchased a total of maybe 4 or 5 major appliances new in the entire course of our 38-year marriage. Mostly long ago, when we were relatively ‘rich’ by middle class standards. Usually when the washing machine or dryer or refrigerator or hot water heater gives up its last gasp, we go looking in the local “SuperShopper” style newsprints prevalent in most good-sized cities and towns.
One of the consequences of our modern ‘mobile’ society and burgeoning divorce rates is that there is always someone selling nearly new furniture and appliances at a small fraction of their original price. I’ve bought fine matched washer-dryer duos for less than $200, working refrigerators for less than $100, and a practically new water heater for $25 cash. Given that such appliances can cost well over a thousand dollars new - which requires an extension of credit and at least a doubling of actual price due to interest rates in usury range - what’s wrong with “Brand New Used?”
Capitalism has its charms, as does consumerism. But mostly for the wealthy, and the wealthy get a seat at the law and policy making table that the rest of us don’t get. The “trickle-down” does occur, however different that really works from how past Reaganites described it when gifting themselves and their wealthy friends with big tax cuts the rest of us never saw.
One of the best things about new ’stuff’ is that it costs way too much, loses much of its actual value the moment it’s purchased, yet is manufactured to last a reasonable length of time. This is true of automobiles and trucks, furniture, and major and minor appliances. I bought that nice nearly-new avacado washer-dryer set for $150 when a rich person decided they wanted gold instead. They got what they wanted - and could easily afford, I got what I needed for a heck of a good price.
Recycling of durable consumer goods is a valuable form of recycling, and certainly nothing to be ashamed of. If during this coming credit crunch a family can manage to keep their home and put food on the table, they will come out the other side of the cycle with their real assets intact. And may have learned along the way that thrifting and recycling are every bit as much fun as conspicuous consumerism. Maybe more fun! I have friends who claim bragging rights on their recycling or thrifting “find of the month,” and who are noted for their skill in refinishing bargains or turning someone else’s junk into the best gifts and decorations anyone has ever seen.
The next few years are going to be difficult for a lot of people, and many are going to lose everything they have. Don’t let it be you!
Source: http://www.shoestringbudget.org/
While there is lots of moaning and groaning about how bad things are getting out in the real world of trying to make do, there’s not a whole lot of good advice about how the middle class can hope to survive the crunch. I’ve surfed around a bit and found a few pages offering real help and analysis, and have linked those at the bottom of this entry.
First and foremost, it’s going to be important for middle class homeowners to hold on to their property through the duration of the coming recession. Though easy credit in the recent past has saddled many homeowners with second mortgages, the interest rates have been at record lows for those with pretty good credit ratings. Many homeowners used that money to pay down other debts (cars, credit cards, other high interest consumer loans, etc.) rather than to add physical value to their homes (new roofing, siding, windows, etc.), so now is not the time to try and sell.
So the best advice is to hang on - rearrange your family’s spending habits and learn to do without a lot of the consumerist ‘extras’ you may have become used to buying on a regular basis. In other words, people need to change their habits as well as their expectations. And perhaps in the process discover that life really isn’t just a game of ’stuff’ collecting… that happiness doesn’t come with a hefty price tag.
If you’ve paid down other debt with a second mortgage, you’re in good shape if you didn’t get one of those adjustable rate scams. The 6-8% interest rate on mortgages is not only a tax deduction for those who itemize, it’s one of the cheapest forms of credit overall. Paying off that car is always a good idea, as auto loans are ridiculously expensive, and gas prices aren’t going to be going down any time soon - it costs us more and more just to get to and from work these days. Credit cards are also expensive, and about to get more expensive as companies make use of the contract fine print to raise the rates to whatever they like, and card holders have nothing to say about it.
Best advice on that is to cut up those cards now and make up your mind to either pay cash for purchases or do without. In this effort, the adventure of Thrifting for clothes and other household items can become a fun pastime for couples and families without breaking the budget. Should you find yourself in sudden need of a major appliance, there is a whole world of second-hand recycling out there that might surprise the average American consumer used to always buying things brand new and on credit.
We’ve probably purchased a total of maybe 4 or 5 major appliances new in the entire course of our 38-year marriage. Mostly long ago, when we were relatively ‘rich’ by middle class standards. Usually when the washing machine or dryer or refrigerator or hot water heater gives up its last gasp, we go looking in the local “SuperShopper” style newsprints prevalent in most good-sized cities and towns.
One of the consequences of our modern ‘mobile’ society and burgeoning divorce rates is that there is always someone selling nearly new furniture and appliances at a small fraction of their original price. I’ve bought fine matched washer-dryer duos for less than $200, working refrigerators for less than $100, and a practically new water heater for $25 cash. Given that such appliances can cost well over a thousand dollars new - which requires an extension of credit and at least a doubling of actual price due to interest rates in usury range - what’s wrong with “Brand New Used?”
Capitalism has its charms, as does consumerism. But mostly for the wealthy, and the wealthy get a seat at the law and policy making table that the rest of us don’t get. The “trickle-down” does occur, however different that really works from how past Reaganites described it when gifting themselves and their wealthy friends with big tax cuts the rest of us never saw.
One of the best things about new ’stuff’ is that it costs way too much, loses much of its actual value the moment it’s purchased, yet is manufactured to last a reasonable length of time. This is true of automobiles and trucks, furniture, and major and minor appliances. I bought that nice nearly-new avacado washer-dryer set for $150 when a rich person decided they wanted gold instead. They got what they wanted - and could easily afford, I got what I needed for a heck of a good price.
Recycling of durable consumer goods is a valuable form of recycling, and certainly nothing to be ashamed of. If during this coming credit crunch a family can manage to keep their home and put food on the table, they will come out the other side of the cycle with their real assets intact. And may have learned along the way that thrifting and recycling are every bit as much fun as conspicuous consumerism. Maybe more fun! I have friends who claim bragging rights on their recycling or thrifting “find of the month,” and who are noted for their skill in refinishing bargains or turning someone else’s junk into the best gifts and decorations anyone has ever seen.
The next few years are going to be difficult for a lot of people, and many are going to lose everything they have. Don’t let it be you!
Source: http://www.shoestringbudget.org/
Can Your Personal Finances Survive a Recession?
One of the words that is being tossed around with increasing frequency is "recession." And the question becomes this: can your personal finances survive a recession? Heavy debt and low savings are just the things that can cause you money problems during a recession. But there are some things you can do now before the recession really hits, to shore up your personal finances. And if the recession never hits? Then you are that much more ahead financially.
Four things that can help you prepare your personal finances for a recession
There are four main things you can do to prepare your personal finances for a recession:
1. Get out of debt. This is very important. You need to work hard to reduce your overall debt level. Pay down balances as much as you can. Put together a debt reduction plan that will help you dramatically reduce how much you owe to others. Debt can be a major problem during a recession, and if you have a lot of it, it can become difficult to take care of your other needs.
2. Build up an emergency fund. You need to build up an emergency cash fund to help you if needed. This is true of any time, but especially true in the run up to a recession. While you probably can't just set aside three to six months' worth of salary now, you can build up a reserve. Every little bit helps, and the important thing is to get into the habit of saving.
3. Consider blue-chip stocks. CNN Money points out that now is not the time to freak out about the stock market. Indeed, there is a good argument to buy, while prices are low. Here is what Walter Updegrave says on CNN Money:
"But remember, the shares you buy while the stock market is down will likely be the ones that will have generated the biggest gains a decade or more down the road. And the money you invest during market setbacks could very well provide the spending cash you'll need in your later retirement years."
Choose solid stocks that are likely to make a good recovery. They may not offer sexy returns right now, but they are the tried and true that will recover from a recession.
4. Consult a professional. A fee-based financial planner can help you chart your path.
If you plan carefully now, and take the appropriate steps, your personal finances should be able to survive a recession.
Source : Miranda Marquit
Four things that can help you prepare your personal finances for a recession
There are four main things you can do to prepare your personal finances for a recession:
1. Get out of debt. This is very important. You need to work hard to reduce your overall debt level. Pay down balances as much as you can. Put together a debt reduction plan that will help you dramatically reduce how much you owe to others. Debt can be a major problem during a recession, and if you have a lot of it, it can become difficult to take care of your other needs.
2. Build up an emergency fund. You need to build up an emergency cash fund to help you if needed. This is true of any time, but especially true in the run up to a recession. While you probably can't just set aside three to six months' worth of salary now, you can build up a reserve. Every little bit helps, and the important thing is to get into the habit of saving.
3. Consider blue-chip stocks. CNN Money points out that now is not the time to freak out about the stock market. Indeed, there is a good argument to buy, while prices are low. Here is what Walter Updegrave says on CNN Money:
"But remember, the shares you buy while the stock market is down will likely be the ones that will have generated the biggest gains a decade or more down the road. And the money you invest during market setbacks could very well provide the spending cash you'll need in your later retirement years."
Choose solid stocks that are likely to make a good recovery. They may not offer sexy returns right now, but they are the tried and true that will recover from a recession.
4. Consult a professional. A fee-based financial planner can help you chart your path.
If you plan carefully now, and take the appropriate steps, your personal finances should be able to survive a recession.
Source : Miranda Marquit
Welcome!
This blog is all about ideas on how to survive an economic recession. No none knows if the USA is experiencing a recession yet because the ecomonic downturn must occur for at least 6 quarters and so far there has only been one quarter.
Never the less, if a recession happens, it would be a good idea to be able to survive it!
Stay tuned to this blog for helpful information.
Never the less, if a recession happens, it would be a good idea to be able to survive it!
Stay tuned to this blog for helpful information.
Subscribe to:
Posts (Atom)