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Invest or Pay off Debts in Today’s Economy?

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While the stock market seems to have settled down, many individuals can’t help but question whether it is best to invest while there are some good stocks available or should they pay off debts, especially credit cards?

Even though there is no set answer, individuals need to realistically look at their own situation to see which financial decision is more prudent for their case.

Issues to Confront

In the event you are weighing which road to travel, you need to determine the larger number, the return on investment or the interest you are currently paying for your credit cards. For those people who are paying greater interest than they could earn, they are advised to pay down their debt first.

When it comes to paying down debts, some financial experts will advise you to place your debts in order, from those charging the largest interest rates to ones charging the least.

On the flip side, others will advise placing them from smallest to biggest, paying off the smallest one first and making at least minimum payments on the others. Some view this as not only getting a debt paid off, but giving a consumer something to feel good about when the debt is removed.

Know the Tax Implications

With tax season here for the next few months, another factor for individuals to consider is what tax implications will befall them.

Individuals should look at whether the interest on their investment is taxable, along with if the interest on their debt is tax-deductible. When investing in items like traditional IRAs and 401 (k) plans, you can decrease your taxable income, so those investments can assist you.

Individuals should also take into consideration that investing is best done when finding returns that significantly top the interest on their debts.

Over time, individuals will be able to pay off high-interest obligations, while likely tracking down save investments that offer a better return on their money as opposed to paying more on their lower-rate debts.

Preparing for the Future

Finally, while credit card and other debts are something you can’t run and hide from, remember that your future financial picture is even more important today, given the questions about the strength of Social Security when you retire down the road.

If you’re able to eliminate high-interest consumer debt, start saving as much as possible. The best place to kick things off is a 401(k). The next best choice is an IRA.

Along with placing money in a retirement account, you will need to have a “rainy day” fund that’s readily available in an emergency so you do not rely on credit cards.

You should put aside enough funds to hold you over for three months if your paycheck suddenly ceased. If you have less-than-steady income, think about putting aside six months of income, potentially through a high-yield savings account or money market fund monthly basis until reaching a desired amount.

As noted earlier, each situation will warrant its own analysis, but paying down debts and investing in your future are both win-win scenarios.

Do the Math

If you’re still not sure about the best avenue to take regarding your financial situation, consider this example:

Let’s say you’re behind $15,000 on a credit card and your savings account contains some $15,000. Throw in a credit card interest rate that is at 10 percent and the bank is compensating you less than 2 percent on your account.

While your first inclination is to pay off the credit card and move that debt behind you, make sure there are no investment opportunities that could arise. Yes, investing in pretty much any product or brand is a risk, but the rewards can be great.

Should you come across an investment option or find some stocks or bonds that are providing good returns, you may think twice about putting all that money towards the debt, rather doing some investing. Perhaps you should do both?

As someone who has had to deal with debt due to a divorce and job layoff, I can tell you from firsthand experience that paying down a debt is a great feeling, even if it takes some time to do it.

In the event you’re still having questions as to which road to take (debt or investments), consider a few questions:

  1. What if the proposed investment does well after you’ve paid off your debt?
  2. What happens if you postpone paying down the debt and put the money towards the investment and the investment tanks? Where does that leave your psyche?
  3. What if you put half the money towards your debt and half towards your investment? Can you live with not fully paying down the debt and continuing to carry a balance?

As you can see, there are a number of roads to travel when deciding on paying down debt or investing those dollars.

Whichever road you head down, map out your plans ahead of time so you don’t get lost.

Dave Thomas, who covers topics such as starting a small business, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.

Can You Find Success Following a Firing?

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One of the most challenging situations a person can find themselves in is trying to secure a new job after they’ve been terminated from a previous position.

While there is hope of locating employment following a termination, the odds are definitely lessened for such individuals, who must fight through the stigma of being removed from a company.

The bottom line is resiliency and the ability to best explain away why you were let go.

For those individuals who have to deal with such a situation, keep several things in mind:

  • Deal with reality – It is never easy when the pink slip arrives and you’ve been fired from a job, especially from a financial stand point. That being said, the bottom line is you have to locate a new position and the sooner the better. Don’t let the anger you more than likely have from your firing carry over to the job interviews you go on. By putting the most recent experience in the rear view mirror, you will stand a better chance of doing well on job interviews and securing a new position;
  • Understand why it happened – Employees get fired from jobs daily, so you’re not the first and you certainly will not be the last. One of the worst things you can do is not grasp why you were let go. You may not know all the details, but it is important to have a general understanding of why it happened so that you don’t repeat it in your next job;
  • Sit back and reflect – In some instances, a firing may be the best thing that can happen to you, permitting you the time to decide on whether or not you seek a career change, etc. While you will likely have to tighten spending while you look for a new job, the time away can be positive for reflection;
  • Keep your head up – Looking for a new employer is a full-time job in many instances. You will have employers who will not respond to your resumes, employers who will interview you and then lose interest when someone better comes along, and employers who would like to offer you job, but that stigma of being fired leaves them a little unsure of you. The bottom line is that you can’t afford to throw yourself a pity party at this time. You need the work, so plow forward until you find what you’re looking for;
  • Don’t hide the truth – Getting fired is never fun, but don’t compound the problem by lying to a potential employer. While you may do your best to hide the fact you got fired and not laid off, you would be amazed how word can quickly travel. If you lie to a potential employer or even someone who ends up hiring you, it could come back to bite you, given the employer will question if they can trust other things you say;
  • Avoid issues with your new job – Once you finally do find that next job, take what you learned from the previous experience so you hopefully do not repeat it this time around. The goal is always to learn from your mistakes, so make sure you understand to the best of your ability why you were fired and don’t put yourself in that position again.

If you were recently fired, how are you dealing with it and have you started back on the job hunt trail?

Photo credit: ehow.com

Dave Thomas, who covers among other subjects’ phone systems, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.

Time is Money!

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While the old adage of “Time is Money!” still holds true, is your small business accurately tracking employee time in order to get the most out of your workers?

In today’s day and age where companies scramble to keep up with customer requirements and maintain revenues in the black and not the red, worker productivity is critical to meeting those needs.

Even though all businesses want to have the services of productive workers, certain lines of work stand out in such a need, including areas like manufacturing, accounting, law firms, auto repair shops, medical services and more.

If your small business is not up to date on keeping employee hours through the various applications available on the market or you’re about to open a business and need some guidance on such matters, keep several things in mind.

First, do you understand the importance of keeping employee time?

The main reasons are to track payroll, expenses for an employee’s time that is directly charged to a customer, and when your employee’s time is tied to the expense of a product.

According to the U.S. Department of Labor, Wage and Hour Division, business owners can monitor their employees’ hours however they deem necessary, provided it is correct and complete. Employers are required to maintain timekeeping records for two years at the workplace or at a central records locale.

Time tracking is also important due to:

Attention to Detail – Those employees who arrive and leave on time daily are more likely to be your better disciplined workers. Those who test the boundaries by arriving or leaving early may lead to problems down the road;

Accountability – Tracking employee time forces them to be accountable for their actions. While all employees should be adults about this matter, sometimes a little electronic reinforcement doesn’t hurt;

Cost Effectiveness – Employees who are productive are also going to provide your business with more cost efficiency. Having an automated system in place allows your administrative personnel to focus on other matters and not tracking who is coming and going and when they’re doing it;

More Production – When employees are aware that their time is being tracked, they are more apt to provide you with better production results. Not only will your product offerings be improved, but you are likely to see better customer service too.

 

Clocking Better Efforts in the Workplace

In the event your small business is in need of tracking metrics, there are different options available.

Among them are: Punch cards, paper forms, wall mount biometric or swipe clocks and web clocks.

Not only can time and attendance systems monitor in-house employees, but they can also be used for your employees who telecommute and/or are on the road a large portion of time.

Businesses that assign time-based tasks which require monitoring can utilize time tracking systems and job scheduling software to be sure their employees are hitting their requirements.

Managers, meantime, can use job scheduling software to map out timelines for different prospect jobs which generally utilize the data recorded from in-place time and attendance systems.

No matter which form of time and attendance software you decide to employ, take the time to make sure it is the one that fits best for your small business.

Photo credit: sodahead.com

Dave Thomas, who covers topics like securing small business loans, writes extensively for Business.com , an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.

Business Travel Set to Take Flight This Year

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We all know recent years have not exactly been stellar for the business community, especially many smaller companies who have had to fight tooth and nail to keep their heads above water.

That being said, a recent report from the Global Business Travel Association (GBTA) indicates that spending for business travel, a portion of which is done through the airlines, is forecast to increase over the next 12 months.

According to the latest Business Travel Quarterly Outlook, spending on business travel is forecast to exceed $263 billion in 2012, a jump of 4.6 percent from a year ago. According to a GBTA spokesman, businesses nationwide have hit the reset button from where it was pre-recession. Essentially, businesses are back to the 2007 level when it comes to spending money for traveling.

 

Travel Expenses, Amount of Trips Prove Impactful

In breaking down the report a little closer, the bulk of the increase is forecast to be derived from growing travel expenses as opposed to an uptick in the number of trips undertaken. Even though the number of trips business travelers participated in last year was up 2.1 percent over the prior year, it is predicted they will post a small drop of 0.8 percent in 2012.

The big factor to remember is that business travelers are at or near the front of the bus when it comes to driving the U.S. economy. If business travel is substantially up, then it is rather safe to say that the health of the nation’s economy is doing pretty good overall.

According to research last fall from Deloitte LLP from 1,000 business travelers, more than 80 percent of them indicated they expected to take the same amount or even more business trips in 2012 as they did in 2011. In breaking down the numbers more closely, 16 percent of respondents ages 45 and older are planning additional trips in 2012, while 27 percent of those between the ages of 18 and 44 planned on traveling for work.

While it is not set in stone, it is genuinely a factor that as businesses start to witness signs of economic growth, they will feel better include to resume sending employees back out on the road.

Meantime, international outbound business travel is forecast to remain doing better than domestic trips.

Over recent quarters, international business travel has done better than domestic given the fact the cost of travel is higher and there has been a steady increase in the number of trips.

While there remains uncertainty about the economies at home and abroad, one thing is for sure. No business will dare give up the competitive advantage of in-person meetings, given the fact that all sales will become even more important.

So, is your business planning on increasing travel, keeping it at much the same level as of 2011, or decreasing such expenditures over the next 12 months?

Photo credit: latierraprometida.net

Dave Thomas, who covers among other items small business loans, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.

 

Is Mountain Dew’s Marketing Campaign too Tough for Even Mice?

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We have all heard the stories over the years of how some soft drinks can corrode one’s teeth and other body parts.

The question now is can a soft drink like Mountain Dew actually dissolve a mouse carcass?

A current small court battle involves an Illinois man who claims he discovered a deceased mouse in a can of Mountain Dew at work three years ago after taking a sip.

From a marketing standpoint, such a claim certainly can’t be good for the soft drink maker that goes by the slogan — “It’ll tickle yore innards”. Worse yet, the man claims he forwarded the mouse to PepsiCo, the soft drink’s parent company, only to reportedly have the rodent’s remains destroyed.

Call in the experts

In order to fight the court case (the individual is seeking $50,000 in damages), PepsiCo has called in experts to say that the claim of a rodent or any other foreign body in one of their soft drink products is simply false.

The experts pointed out that the Mountain Dew drink would have dissolved the mouse, turning it into a “jelly-like substance,” had it been in the can of fluid from the time of its bottling until the time the claimant opened it, 74 days later.

According to a spokesperson with the University of Rochester School of Medicine and Dentistry, he believed it was plausible that the soft drink could dissolve a mouse over a few months’ time. “But dissolving [the mouse] does not mean it will disappear, because you’ll still have the collagen and the soft tissue part. It will be like rubber,” he made clear in his remarks.

According to a 2004 study where human molars were soaked in Mountain Dew for 14 days (a period of time similar to about 13 years of normal beverage exposure, the researchers calculated) the molars’ enamel lost more than 6 percent of its volume. Meantime, molars placed in Coca Cola for two weeks lost slightly more than 1 percent of their enamel volume.

Will marketing take a hit?

While sales of Mountain Dew may not be impacted by the ongoing legal case, it does make it a little harder to market the soft drink, given the fact some may wonder what is coming out of each can.

In early 2011, a Washington State man claimed to have also discovered a dead mouse in a Monster Energy Drink product.

According to the man who filed a lawsuit, “Any time somebody talks about Monster I get a sick feeling in the bottom of my stomach. “I looked in the can and I saw the tail – the tip of the tail. And I just vomited everywhere,” said the young male, who sued for physical and emotional damages.

Needless to say, such reported incidents make it a tad more challenging for any brands to market their goods.

That being said, Pepsi has heavily invested in the marketing of Mountain Dew products over the last decade, securing some 80 percent of the citrus flavored soft drink sales nationwide.

While these two incidents do not appear to have impacted sales in a negative way, you can bet such claims will leave a bitter taste in the mouth of marketers at the respective soft drink companies.

Photo credit: bossip.com

Dave Thomas, who covers among other items starting a small business and business proposals, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.

Company Meetings Cutting in on Productivity?

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Company meetings serve a wide array of purposes. That being said, can too many meetings be a bad thing?

Having worked at several companies now over a 23-year period, I have seen a variety of approaches to this subject.

Some companies have had a normal approach to in-house meetings, some have had too few meetings, while others have gone overboard and seem to be meeting on an almost hourly basis, whether through onsite meetings or teleconferencing.

I’ve always tended to believe that falling somewhere in the middle of the above-mentioned descriptions is best.

On the one hand, it is important for your team to know what one another are doing; without occasional meetings that is hard to achieve. On the other hand, meeting too often always leads me to wonder how any work is getting done. Too many meetings can lead to micromanaging and a feeling among employees that their every move is being scripted and watched.

If you’re not sure how often your company employees should be meeting to talk strategy, keep these things in mind:

  • What are you trying to accomplish with the meetings in the first place? – Are they held to share strategies, ideas, ask questions of where projects are going? If the answer is yes to any of those things, then by all means meet. If the answer is no to one or more of those things, then you need to rethink why you’re getting staff together;
  • Where does real productivity rank in your company? – While meetings can certainly be productive, they also pull employees away from the tasks they were hired to do in the first place. If you’re team is having to get together on a daily basis to meet even for half an hour, think about the loss of actual productivity time that half hour means to you and your business. I once worked for a company that required its writing team to meet on a daily basis. In lots of the meetings, we repeated what we said the previous day as far as updating our status on projects. In the meantime, I and some others sat there and thought about the wasted time going by when we could have been producing another article, conducting interviews, reaching out to new clients on the phone etc.;
  • Are we getting the same message over and over again? – Another risk factor with having too many meetings is that you will turn off some of your brighter employees. Going over the same message over and over again begins to lead to some tuning out both the message and the messenger. Let’s be honest, some company folks like to hear themselves talk. While that may be great for them, those listening are sitting there thinking about all the real work they could be getting done while listening to something they heard just a week ago. Constructive meetings are one thing, sitting there listening to lectures over and over again are another;
  • Are we stifling openness among employees? – If you’re having too many meetings, you may not even know it. In most offices, employees are not going to raise their hands when polled to respond yes if the company is meeting too often. For most employees, such a move in their minds would rock the boat, painting them as an uncaring employee. In reality, a good office culture is one where openness and the ability to speak one’s mind should be promoted. Without the ability to speak one’s mind in a professional and courteous manner, you are fostering a dictatorship at work, where one and only one voice is heard. Be bold and ask your entire team if they feel the company meets too often. If the answer is yes, take the time to think about how less meeting time can translate into more production time.

 

At the end of the day, each company and its management must decide what is in its best interests.

In my 20+ years of employment nationwide, I have yet to see the perfect meeting environment.

In the meantime, I’m going to meet with myself and see if I can come up with some solutions for this issue.

Photo credit: Markdenham.com

 

Dave Thomas, who covers topics such as starting a small business, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.