As a person already in an established career, you continually have to plan for retirement (which we talk about all the time).  This is a normal practice in life.  Unfortunately, something else that has become even more commonplace is finding a new career.  With unemployment high and layoffs climbing, many of you in established careers are finding yourself without a job as companies have to make cutbacks to stay solvent.  You are therefore planning for the near future, and have to figure out if you want to stay in your current career or if you want to change paths.  You are therefore in the same boat as the high school student and the college student.  Having the right information can help all of you make your decisions easier. 

A recent article on Walletpop.com and another website offer great information regarding the top career choices for graduating college students and the top salary earning careers in general.  These resources should help those of you in the process of planning your future careers or discovering potential new careers get an idea of what you can expect (it is a guideline…salaries do vary based on your geographic location in the U.S.) as far as monetary compensation.  Keep in mind that not all careers will be on the lists, and if you’re looking into a different career, you can check out Salary.com for more information.

Is this information necessary to plan a future career?  No.  And you certainly shouldn’t choose a career ONLY based on the income.  We would never recommend that, since it would mean the potential for an unhappy work life (which is not successful living).  However, if you have a few career choices in mind, and feel you would be equally happy at all of them, it doesn’t hurt for income to be a factor in your decision.  After all, more income means a heftier nest egg, college fund (for the kids) and hopefully the ability to spend more quality time with your family.  That kind of information is always welcome when making a decision!

• Majority of scrapped GM,Chrysler dealers file appeals - Basically, what’s going on here is that GM and Chrysler, in order to stay in business, had to cancel contracts with some of the dealerships that owned the rights to sell their cars.  The dealerships, instead of finding a different product to sell, or closing down, are filing appeals to FORCE the 2 companies to keep supplying them with inventory or to pay a huge settlement.  This will cost the already struggling automakers (remember, they were bailed out already) even more money, and they probably will struggle with getting back on track and making a profit.  I hate that these dealerships will have to close and that jobs will be lost, but when a company expands too far and has to draw back to stay in business, this is what happens.  By trying for a settlement (these dealerships agreed to the terms of the contract, they knew the contract could be terminated), they are actually hurting the company more.  Nice.
• Toyota’s next problem: Lawsuits - With the multitude of recent news stories and recalls, Toyota is working around the clock to combat the bad press and sort out their problems.  It might not help, though, thanks to the over 30 lawsuits (already, and growing) and class action suit (there will probably be more later) that are already filed against the automaker.  Here’s the deal…Toyota should pay for any medical bills (and final expenses etc.) of those people found to have directly been injured or died because of a faulty piece of equipment in the vehicle, and I have no doubts in my mind that they would willingly pay these costs.  There are 2 problems that stink with this situation though; 1. Some lawyers just see dollar signs and think of a big payday, so they will file suit for ANYTHING, even things their client doesn’t deserve, and some judges will award it, which just causes more financial problems for the automaker, and could cost jobs for their employees, and 2. the more lawsuits and such that are filed, the more bad press they receive, which could also cost money/employee’s jobs.
• Your cell phone company’s dirty little secret - The big carriers have come out recently and lowered their prices on the “voice usage” side, or the “talk time” side of their business, but their secret is that they’ve started charging non smartphone users a fee to access the multimedia capabilities of their phones, whether they want to or not.  They say it’s because most people don’t know they can access the net, so they are making sure the user gets full use of their phone.  I say bull crap.  I shouldn’t be forced to purchase a service I don’t want.  I have a smartphone and DO NOThave a data package, because I don’t need one.  I did not buy the phone for it’s ability to surf Facebook, I bought it for other features like touch screen/qwerty keyboard/nice layout/and a calendar.  Maybe it’s more phone than I needed, but that’s my choice.  They know that people pick the phone they want, and so they figure they can charge you extra for service, because you like the phone.  It’s sneaky, but clever.
• The burger and beverage recession - This one actually surprised me, but not in a bad way.  Coca cola, McDonald’s and Molson Coors all reported that their product demand is stronger abroad than in the US.  These are the products that we think of as recession proof, but apparently, people are still not willing to part with their dollars for them!  I very much hope that the companies can cut costs and innovate to continue to be profitable, but I am very excited that consumers continue to be wise with their money.  Spending less and saving more is a proven way to have something for yourself as you get older.  Are there quicker, more volatile ways?  Of course.  But with great gains comes great risks.

Follow the links to see the full articles!

Now, one might think that this is a good plan, since the article sights some very compelling statistics, including the following:

• 58 million people are overweight, 40 million are obese, and 3 million are morbidly obese
• Eight out of 10 are over 25 lbs. overweight
• 78% of Americans are not meeting basic activity level recommendations
• 25% are completely sedentary
• 76% increase in Type II diabetes in adults 30-40 years old since 1990

What does this mean to us?  It means that, yes, we are getting fatter.  A lot fatter.  We are coming up with new products like body shapers to hide our fat rolls, and some sort of tape to make our arms look thinner!  Don’t believe me?  Check this out!  And I don’t think anybody remembers the word “muffin top” ever being used until we started wearing pants that sat low enough on our hips to “show off” our fat rolls.  By the way, if you have a muffin top, by a bigger size and a belt! 

So we’re getting fatter!  I hate it!  I love to exercise, and I try to watch what I eat…but I’m not a health nut.  I have junk food on occasion!  I am not model thin, and don’t expect that I ever will be, since my goal is strength and not a 22 inch waistline.  However, I keep my weight within a normal weight range and an average Body Fat Percentage.  I worry about the people I see and know that don’t get any exercise, and don’t watch what they eat at all.  I worry for their lives!  I don’t, however, think that taxing the people to the poor house is the way to go about fixing it!  We’re nuts if we think these people don’t know that this food/soda is bad for them.  They know it!  Punishing them (i.e. taxing them) for their “bad behaviour” is not a RIGHT that I want to give our government, thank you very much.  The next thing you know, the government will be punishing us for all of our bad behaviours, like watching too much TV, not flossing and not recycling ALL of our trash!  It’s not up to them to legislate our behaviour. 

The article takes a much more positive approach to this tax then I would.  Yes, it breaks my heart to see children and teenagers that are not active at all.  12 year old girls that have to shop in the “women’s plus” size section at a store because the cool, stylish clothes for their age don’t fit them.  I want these people to get healthy as much as the next person, but it has to start at home.  They have to decide for themselves that they are dissatisfied with how they look and how they feel.  And then, they have to be mad enough at themselves to do something about it! 

The article says that the taxes raised could be used for education and health programs.  Yeah, it could, but it won’t be.  Have we all forgotten the promise of lottery money being used for education (read this)?  Think about it rationally, without emotion…you know as well as I do that they won’t use the money for what they say they will, or if they do, it will be like 1% of the revenue.   Taxing these people won’t fix the problem, and I don’t want the government legislating what I do or don’t eat.

I hate to see people suffer, and those people that have lost their jobs are in my prayers.  However, the falling home prices are only an immediate concern if you are trying to sell your house and/or have lost your job.  If you have a stable income and are contented in your home, staying there for a few years (decade, maybe?) isn’t a big deal, so neither is the drop in value.  Debt, is, as always, a major concern for us.  If you are employed, you should be making a budget, sticking to it, funding your emergency fund and getting out of debt.  If you are unemployed, then you are in an income crisis, and that should be your main concern…along with food, shelter (that doesn’t mean a “McMansion”) and basic utilities (i.e. lights, water and heat).  You can’t focus on paying people back what you owe until you get stability back in your life, so put them on hold, even if it takes a few months. 

I would like to make a point for our readers though: with roughly 10% unemployment, that means that 10 people out of 100 are out of work, which is the same as saying 90 people of 100 are employed…it’s terrible for those 10 people, but overall, it’s not a catastrophe.  And those 90 out of 100?  They are shopping!  Maybe less often than before, and they might be spending less than before, but they are shopping…at least, that’s the way it looks EVERY time I drive past/go to the mall.  The place is packed!  As usual, I can’t find parking there, and the Christmas season was just as bad as usual.  Now, like I said, I know this isn’t the case everywhere, but the media’s version that everyone everywhere is suffering terribly, in houses they can’t afford, without jobs and piling up debt.  This isn’t true either.  The truth, as usual, is probably somewhere in the middle.  Some are suffering, some aren’t.  If you are suffering, I wish you luck and speed in your job searches and in getting out of debt, and if your job and home life are stable and “secure”, work hard to keep it that way, and help those who need it, either with prayer, food donations or job contacts (etc.).

Generation Y is a term applied to those people currently 22 to 33 years old, of which, I am a member.  These people are typically the offspring of Baby Boomers, and according to many in the work force, are nothing like their parents, especially in how they view their jobs.  In the past, this (my) generation has been characterized as a bunch of job-hoppers.   But now that they and their friends are experiencing layoffs and financial problems, the number of those surveyed that had changed jobs in the last 2 years dropped from 40% to almost half of that, and almost a quarter of them plan to stay with their employer until they retire…now there’s some surprising information!

Another interesting thing of note, however, is that the economy and higher rates of unemployment have changed the optimism and confidence typically displayed by this group of people, and they are becoming more financially conservative…all I have to say is that it’s about time! 

Apparently, a new survey shows that 41% of Gen Y-ers have become more fiscally conservative in the last year, and nearly 2/3 say they’re “trying to save more now than a year ago”.  I think that is incredible!  To know that a lot of people from my generation are waking up and saving is great.  And as far as retirement, in the last year the number of Gen Y-ers that are saving for retirement rose from 18% to 53%, but the majority of them are only focused on an emergency fund (which is a good start!).  Considering that more than 30% of Gen Y-ers owe more than $5,000 in credit card debt, saving for an emergency and/or retirement is a nice change of pace. 

No matter what their motives, the Generation Y group has started to notice the benefits of saving money and job security.  I have feared that my fellow Gen Y-ers would never learn this lesson, but I am happily wrong.  Maybe it was the economy, maybe it was the fact that it became cool to be a “recessionista”…or maybe it was that we got tired of hearing the word “recessionista”, and started watching our money to get people to quit using that word…either way, it happened, and hopefully it’s here to stay!

These loyalty programs are similar to those of the credit cards, where you earn points toward cash back or other “prizes”. As usual, however, it takes a TON of points to earn anything worthwhile. Luckily, a debit card doesn’t put the consumer further in debt, and these cards give the banks 1%-3% fee per transaction (However, lobbyists for retailers are trying to get that fee capped). UN-luckily, to use these new programs, many banks are charging yearly (or monthly) fees. This means that you have to use your debit card all the time and HOPE to earn the rewards while paying a fee for the PRIVELEGE to be in the program! How fun, right?

Our advice? If you can’t control your spending, and are detached from your debit card, the way you were from your credit card, and it’s not like spending money because it’s plastic…stick to cash. If you can handle using a debit card, use it. We don’t have a problem with them, since the money comes directly out of your checking account…but be aware, overdrawing on your checking account with you debit card is NOT responsible, and if that is you, GO BACK TO CASH! On the subject of loyalty/reward programs? We think you should just skip them. It takes crazy amount of effort to get anything, and costs a yearly fee on top of it!  What a waste.

Conflicting information is what the author cites as a problem.  An advanced estimate of the annualized 3rd quarter GDP was up 3.5%, but consumer spending fell 0.5% in September.  The GDP numbers are a result of government spending, and, as you would expect, unemployment, and the fear of unemployment are the result of the slump in consumer spending.  The fact is, a recent poll showed 58% of people (October)  still believe the recession is hanging on, up from 52% (September).  And while public opinion certainly isn’t the only factor in the economy, it DOES factor into the economy.  This is obvious…if people think the economy is down, it affects the way the go about their daily lives, and what they do and don’t spend.

You see, there are a lot of opinions out there on where this country and it’s citizens are headed thanks to this economic mess.  Some are saying that we are fine and that everything will go back to “normal” soon, and some conspiracy theorists seem to think we’re going to become third world nation.  The truth, thankfully, is probably somewhere in the middle.   If you read the original article, you should check out some of the absolutely ignorant and insane comments posted by readers.  I’m no economist, but I’m also not going to listen to anyone whose claims sound outlandish at best and pray on the fear and ignorance of other people.  My guess is that the economic turmoil will continue for a while…how long? I have no idea.  The economy needs to correct itself from the inflated values that  we placed on our assets (namely, our houses), and until it corrects itself, I don’t think things can get better.  However, I DO think things will get better.  Banks will start lending again, companies will start hiring again and people will start spending again.  Do I think it will go back to the way things were? No, and I hope it doesn’t.  We shouldn’t expect to buy a home and 3 years later move with 50% equity because of the jump in value…that’s not right.  Slow and steady wins the race people.  When things start to improve, you will have to SAVE your money and PAY DOWN your mortgage for there to be equity in it…and that’s the way it SHOULD be!

The first bit of information I wanted to share is definitely exciting, and that is that more people are paying with cash!  According to certain retailers (these businesses do not sell luxury goods, just so you don’t think I’m speaking of $1,000 handbags or something), a significant number of their sales so far this year have been in cash, compared with last year, where there were more credit card sales.  This is a wonderful bit of information!  Now, it’s a small sample, and it’s in my local community, but hopefully it’s at least partially indicative of the way people are shopping this season.  I hope that it means more people have saved up for the holidays this year, and aren’t spending more than they make!

Another bit of information we ran across from a national retailer is that the sales are not going to be as good as they were last year (I know, bummed me out too)!  According to our source, last year, many of the typical stores you find in your local mall got caught with a ton of extra inventory and slashed prices to be able to move the inventory toward the end of the holiday season.  This was great for people, last year, but it also means that they learned their lesson, and this year, retailers won’t (or haven’t) have ordered as much inventory, so the deals that were there last year, won’t be there this year.  This is some really unfortunate information, but at least it will keep us focused on finding the best deals this season! 

All in all, I still think it is going to be a wonderful holiday season.  Just keep in mind that cash is the way to go.  Not only will it save you from being credit card poor in January and February (and March?), but it will keep you focused on getting the best possible price!   Look out for deals that aren’t deals.  Compare prices.  Use lay-a-way (making payments on an item that you will not be able to take home until the item is completely paid for) and just be sensible.  Remember how your parents and grandparents shopped for the holidays…they saved for it!

I will give a brief definition here, but if you want the full description, check out the original article.

• Bailout – This was the money designated for and given out to struggling businesses (usually very large businesses) whose closure would negatively impact the economy.  Had, for example, an automaker like Ford closed, thousands of people would have been out of a job.  However, the financial situation of the business was such that it wasn’t making enough money to support itself or it’s employees.  Think about that…businesses that don’t make money (aka a profit) can’t pay their employees and have to shut down.  That is the way things are supposed to happen (not that I wish a job loss on anyone, but unfortunately, jobs come and go…luckily, qualified people find new jobs, or start their own businesses and make their own way).  Some (myself included) would argue that by using taxpayer dollars to keep these types of businesses functioning, we are all (taxpayers) collectively paying the salaries of these people, and paying for the business to stay afloat. 
  • On a slightly different (but not too different) topic, the “cash for clunkers” program, which offered a $3500 to $4500 voucher that a consumer could give to a new car dealer and get that amount off of the purchase price of a new car.  These vouchers were paid for out of the bailout program, which means that the vouchers were covered with taxpayer dollars.  That means that if your neighbor got a new car with the “cash for clunkers” program, you are providing some of the money to cover their discount…i.e., you paid for part of their new car. 
• Consumer Confidence – This is a gauge of how the average consumer feels about the economy (whether or not it is strong and relatively safe, or weak and unsafe) at that time, and what is coming in the future.  Unfortunately, if people aren’t informed, their response or confidence in the economy can be misguided.  Stay informed!
• Deflation – A decline in prices across the country.  While this sounds fantastic, it can cause problems.  Prices falling means people are spending less and can lead to more unemployment.
• Depression – A long recession.  It typically includes business and/or bank failures, high unemployment, falling job wages and, in general, economic collapse.  A depression lasts significantly longer than a recession, and while a recession can be considered a normal downturn (on occasion) in the economy, a depression is not normal.
• Recession – A generally accepted definition is a decline in economic activity lasting at least two quarters (6 months).  As stated above, this can be a normal business cycle, and the recession we are currently in is considered the 11th recession since World War II.  
• Stimulus -  This is part of the Government’s fiscal policy.  Fiscal policy is the use of government spending and revenue collection (i.e. tax collection) to influence the economy.  Stimulus, in particular, is a short term government intervention to encourage spending when they economy is weak.  An example of this is a tax rebate, like the May 2008 tax rebate, where payments of  $300 for singles and $600 for married filing jointly were issued.  Some interesting points…people who have “no net tax liability”, which basically means they don’t actually pay taxes, still received this TAX REBATE, and people who made more than $75,000 single ($150,000 married filing jointly) received an adjusted (lower) amount.  As the income increased, the rebate gets phased out.  So, people who didn’t pay taxes get a tax rebate, and people who pay A LOT more taxes get a  reduced tax rebate.  Interesting, huh?

Hope these terms help you feel a little more in the loop the next time you find yourself in a conversation about the economy!  To do more research, go here.

Brief summary: A survey of nearly 30,000 people revealed some insights into the way people are feeling about the economy and their money. It revealed what they are doing to help tighten the belt on their finances to get by these days.

I love surveys like this one, because it’s kind of like taking the financial temperature of the country.

Page 1 of the article tells how people are spending less on dining out, clothing and recreational activities. I am happy to see that people are refocusing their priorities and are watching what they spend…everyone could save a little more. Where a lot of people get into trouble is eating out and recreational spending. The average American eats out only 1-2 times a week, however, where are they eating? Is the whole family with them? If they eat out at pricey restaurants with the whole family, that can get costly. Even if families are only eating out at McDonald’s 2 times a week, that is probably averaging $20 a trip, or $40 a week. That works out to be $160 a month…that will pay for lots of different things…more groceries, car insurance, health insurance etc.

Page 2 focuses on gift giving. This is a hard topic for me, because I LOVE to give gifts. The survey shows how people are either buying less gifts, or spending less on them. I myself switch to spending less on gifts when funds are tight, and think it is a good way to save cash in your budget. To those people who think they have to skip gift giving because they can’t afford something really nice, I say relax. People like to receive gifts. People REALLY like to receive gift cards! And, for the most part, people don’t care how much you spent on the gift/gift card. And if they are disappointed with your gift, it’s on them…you did what you could, and if they truly do care about you, then your gift will be perfect, because it came from you!

I was absolutely elated by page 3, where it was revealed that if given $10,000 dollars, 48% of those answering the survey would put the money in the bank, and 38% would use the money to pay off debts. All I have to say to this is this…I am excessively happy that people are finally taking notice that they are not saving enough, and I hope that when the economy recovers, they continue to save and don’t go back to their over-spending, have it now ways.

Page 4 deals with something that I don’t really do very well…cutting coupons. Those of you who cut coupons every week, I applaud you, but I have never been like you. I have tried to clip coupons and use them at the grocery, but it doesn’t work for us. We use a lot of generic products, and those products never have coupons in the paper, usually (not always) because the generic is cheaper than the name brand item with the coupon. So, coupons have never really worked for me, but, my mother swears by them! So, apparently do 64% of the respondents (combination of those who have always used them and those new to clipping coupons) to the survey, thanks to the economy. I am excited to see this as groceries are one of the easiest places to cut costs, but one that some people never put the effort into.

Page 5 reveals the how people feel about the economy (well, of the opinions of the respondents anyway). Overall, 47% of the respondents say the economy hasn’t affected their long term plans and 34% think there will be an economic upswing in a year. While I hope that is the case, I worry that the economy has not completely bottomed out yet, and therefore, might take a little longer to come back. Also, our economy is tied to other economies, so we have to watch the financial happenings in other countries (like China) to get some idea of what will happen in our economy. However, I hope those who see an upswing in a year are correct!

So, in my opinion, based on this survey, the financial temperature of the economy is sickly, but people are getting by. They simply need to remember how their parents did things when they were kids…do you remember your parents using layaway? there is a reason for that. You remember them saving up to put a down payment on a car or a house? There is a reason for that. It was the RIGHT way to do things, and according to the survey, some people are finally starting to remember/take notice.

Gallop poll resource – http://books.google.com/books?id=WOug0pzW6_IC&pg=PA481&lpg=PA481&dq=average+number+of+eating+out+per+week&source=bl&ots=b2_ny9ni7M&sig=weev3bzrbR1J6iZj-3Ii9fyP52M&hl=en&ei=-uPMSYnlHpKNtgfc1vTfCQ&sa=X&oi=book_result&resnum=3&ct=result