by MN Gordon
Growth and profits mask a variety of problems. They hide business inefficiencies and the money suck of corporate administrivia. They also conceal unproductive staff.
But most of all growth and profits obscure the extreme value subtracting forces of bloated management teams. During good times it is unclear what these smug fellows do. During bad times it is lucidly clear that most of them ain’t worth a darn.
When the profits inevitably recede, the senior executives, with their silly 24 point project reviews and cumbersome project execution requirements, appear lost. They’re left exposed, with their pants down, and without a clue in the world as to what business it is they’re actually in. What the heck have they been doing all this time?
Where does the money come from? How is it spent? Over (Read More....)
. . . → Read More: Prepare for the Unthinkable
by MN Gordon
Borrowing money and spending it can be fun. Certainly more fun than saving and paying down debt. Not only that, borrowing money’s much easier too.
Saving takes prudence, discipline, and hard work. Running up the credit card takes none of these things. But that doesn’t mean there aren’t consequences.
Just like an individual, when an entire economy racks up a bill it can’t pay back, future economic growth becomes stunted. It becomes even more difficult to save and invest when more and more earnings must go to service debt. Asian economies are discovering this phenomenon. They are also discovering the relentless hold of a debt trap. What went wrong?
In short, when the financial crisis and Great Recession hit in 2008 nearly all governments ran up their federal debt. The U.S. government, for instance, ran fiscal deficits over $1 trillion dollars from 2009 thru 2012. Since then, they’ve cut budget deficits back to about half of that.
While many Asian governments also increased (Read More....)
. . . → Read More: The Fastest Way to Escape a Debt Trap
In this capricious economy, it’s vital that everyone have a detailed financial backup plan, a safety net to catch you in case of financial fall. Follow Murphy’s Law: “Anything that can go wrong, will go wrong.” Whether it’s unexpected illness, a sudden layoff or other catastrophes, everyone needs a financial nest egg. Compiling an extensive savings account and pursuing additional revenue streams are the first proactive steps in securing your financial future.
Your financial safety net should include a savings account with eight months of living expenses, sufficient insurance and, ideally, a secondary income stream, recommends Jennifer Streaks, a (Read More....)
. . . → Read More: What is Your Financial Backup Plan?
Home economics may be the most important aspect of one’s life, whether you are married with children or single. Regardless of your age, simplifying your life and your home will help you reduce debt and build wealth.
1. De-clutter Your Home, De-clutter Your Life
Do you have anything you can sell? Do you have anything that is in the way? If the answer is yes, then you should sell or donate your unused things that do not hold any sentimental value. If there is anything that is trash or old junk, you should just throw it away. A storage unit, like Fairfield NJ storage, can also be used to store extra but necessary things. Remember that a cluttered home reflects a cluttered life.
2. Write it All Down
The next thing (Read More....)
. . . → Read More: 5 Ways to Simplify Your Life and Reduce Your Debt