Money

Spending the Summer

How is it Independence Day already? If you’re going to take a summer vacation, the season is half over. Yes, travel is pricey, but there are ways to mitigate the expense. Here are a few strategies to stretch your hard-earned money.

Plan for Spontaneity

If you don’t have your heart set on a certain destination, then start with your budget. Your vacation has categories like transportation, accommodations, food, and entertainment. Assign dollars to these categories, but keep in mind that the price things cost changes every day.
Prices follow demand. If you can vacation at an off-peak time and place, (e.g., Tuesday – Thursday in Columbus instead of Friday – Sunday in Orlando) then travel and lodging will be cheaper.
Use a travel app (Travelzoo, Skyscanner, Hopper, etc.) to research discounts. Enable notifications so you are alerted when the price of flights and hotels goes down. Check your loyalty programs. Do you have points to use?
If you choose to fly, check your airline’s baggage policy before packing your suitcase. Can you fit everything in a carry-on? If so, you can avoid excessive baggage fees.
What is going on at your destination? Is there a fair or festival? Is there a ballpark offering a discount day? Is there a coupon for a museum tour? Does a local restaurant offer a kids-eat-free-with-adult-purchase option? If you can plan your itinerary around deals on entertainment and eating, then you can save a lot of money.

Go Further Together

Can you vacation with family or friends? If you travel in a group then you can divide the costs. For example, if you drive, you can carpool and take turns paying for gas. If you stay in a hotel, you may be able to negotiate a group rate. Or, check out websites like Airbnb or VRBO for alternatives. What about renting a house? When you have a kitchen you can all chip in to buy groceries. You can either take turns cooking or you can make meals together instead of eating out every day. When you do eat out, look for locally-owned restaurants to support. Restaurants catering to tourists often charge more for the same meal options. Choosing local serves multiple purposes. You get to experience both the culture and cuisine of your destination and you’ll save money. You will save even more money if you can either walk or take public transportation to get to the eatery. Research the available options while planning your trip.

Short and Sweet

If you don’t have the time, money, or patience to deal with the chaos going on in the travel industry right now, then at least take a break with a staycation. If you are into camping, some state parks have no-fee options. Or take a day and do something you don’t usually do like go to your local art museum, or take a hike at a nearby Metropark, go to a movie theater and attend the first showing of the day, relax with a book at your neighborhood pool, stay all day at an amusement park including the closing fireworks show. You can have a good time and stay within your budget.

What you are doing to get away this summer? Please share in the comments.

Self-worth

We talked last week about getting laid off from your job, but we did not talk about its negative impact on your budget. You know it’s important to maintain an emergency fund (three to six months worth of expenses), and the best time to do that is before you need it. But why is it so hard to save up your money?

Status

Society trains you to attach your self-worth to your income. It’s one way to evaluate success or failure. Have you heard the motto, “He who dies with the most toys wins”? People are competitive. In the workplace, the person who has the most money has the most power. You carry that mindset into relationships outside of work. You gravitate toward people with similar socioeconomic backgrounds. If you feel your income is lower than your friends, then you’re embarrassed to discuss it. But talking about finances can create community because people have knowledge to share. For example, if you both have car loans, what is their interest rate? Is it lower than what you’re paying? That conversation may not only save you money, but also build a stronger relationship. Comparing yourself to others is useless. There will almost always be someone in your life who makes more money than you. You decide how much status, comfort, and peace of mind is enough for you.

Humans are Judgy

Discussing money openly is still generally considered impolite. Seventy percent of Americans think money conversations should be kept private. Other people aren’t the only ones judging you based on your income. You also judge you. If your income is tied to your sense of identity, then revealing it feels like exposing something deeply personal. It’s especially painful if your income does not match your goals. Society places a lot of value on financial success. You may feel looked down on if you know your income is less than your coworkers. That is one of the reasons the culture of the American workforce traditionally gives for the strong privacy policy around finances.

Paradigm Shift

The pandemic made the workforce rethink what making a living looks like. For example, is there more to life than working under the terms and conditions someone else sets? Or why do you care about society’s opinion when they aren’t living your life? If tightening your budget will enable you to live the way you want, then try these ideas.

Determine essential expenses (housing, utilities, groceries) and cut back on non-essential expenses (eating out/food delivery, entertainment, subscription services)
Review your health, (medical, dental, eye) car, life, and any other insurance policies. Make sure you have adequate coverage, don’t have more than you need, and you aren’t paying more than necessary
Pay off your credit cards ASAP. Look for a card with a lower interest rate. When you find one, contact your bank and ask them to match it
Work an additional flexible-schedule job (dog walker, food delivery driver, consultant) to supplement your income until you get your finances where you want them

Saving your money is hard because it’s not about money. It’s about how you feel about money. How do you prioritize how much is enough? Please share in the comments.

Happy Endings

With Mother’s Day and Father’s Day coming up, you may be celebrating your parents over the next few weeks. Maybe you will get together and relive memories of their past as you grew up. Are you also thinking about their future and how it may impact yours?

Once your parents retire Social Security and Medicare will help with living expenses, but it’s likely they will outlive those funds. You need to know if they have savings and safeguards in place to protect the money they worked so hard for. Here are some things to consider.

Fraud

Since older adults have had more time on the planet to save up their money, they are logical targets for fraud and not just by strangers. When talking to your parents listen for stories of any new friends coming into their lives and how they spend time together. For example, when they go out to lunch, does your parent always pay the check? Here are some other things to watch for. Also talk about the latest cybersecurity scams. Criminals are employing the latest capabilities of AI to do scary things like enhance family emergency schemes.

Finances

Always a touchy subject, but the economy is perpetually uncertain. Everyone wants to ensure they have all the resources they need to live the rest of their lives the way they want to. Here are a few questions to ask.

Do they have savings (e.g., IRAs, pensions, etc.) in place?
Do they have outstanding debts?
Do they have the necessary documents (like these ) filed?
Not to be morbid, but have they thought about funeral arrangements? Do they want their remains to be buried or cremated? Are they organ donors? If they haven’t thought about it yet, encourage them to document their preferences so you can carry out their wishes after they are gone.

Fulfillment

Mostly, you want to know that if you die before they do they have a plan for living out the rest of their lives in safety and comfort. Here are some questions to ponder together.

Is the interior of the house okay? Accessories like grab bars in the shower, a chairlift for the stairs, and adequate lighting throughout the house will help prevent falls.
Do they have any chronic conditions? Are the names and contact information for their healthcare providers written down somewhere that you can access if necessary?
Do they have a community? Social engagement is important for mental and emotional health no matter how old you are. Do they volunteer with their church? Does their city have a senior center?
Do they feel safe driving? Are they open to public transportation, ride-sharing, or a nonprofit’s transportation program?
When they eventually need help aging in place, should you live together? If so, who is financially responsible for what expenses? How much physical help will they need before it’s beyond your capabilities? Should you get advice from an eldercare attorney to prepare yourselves for what the future may bring?
If they ultimately need an assisted living community, how do you find a trustworthy one? Here’s some information on where to begin.

The future and money are both emotional conversation topics. If you approach them with empathy, respect, and active listening, they will be more productive. Be aware this is not a one and done. You will revisit these issues as long as you are blessed to still be on the same planet as your parents.

What resources do you recommend for aging in place? Please share in the comments.

The Big Reveal

When you ask for a raise and you’ve talked about how you have increased your responsibilities and your plans to either save the company money or bring in more revenue, that’s when your manager asks, “How much money do you need?” What if you’re a crew member at a fast food restaurant and your reply is, “How about $25 an hour?” Neither question seems helpful. Your manager should know (and be willing to disclose) the budget range for your position. Salary is not determined by how much the employee needs. It is based on how much the company is willing to pay an employee to get a job done on time, under budget, and with excellence. Does this seem weird to anyone else? No? Just me? K. Moving on.

One of the best ways to find out how to solve a challenge is to ask someone who has been through it. However, we’re trained early in our careers to not talk with our coworkers about compensation. Why?

Employers cannot forbid their employees to tell each other how much money they make. In fact, it’s a right protected by the National Labor Relations Act. Yet, we know we’re not supposed to and some employees have gotten fired for doing so. Authenticity at work means being open about who you are, your values, beliefs, and experiences. Your compensation is one of your experiences. Some state legislatures agree and have passed pay transparency laws to aid in reducing pay discrimination. This new authenticity has ramifications for both the employee and the employer.

For the Employee

Pay transparency laws require companies to disclose salary information to job seekers. These laws are supposed to make it easier for potential employees to negotiate salaries and feel confident they will receive fair compensation for their work. The fast food employee in our scenario above should get online, find the restaurant’s job postings, look for their job description, and see what pay range is offered. Then they will know how much of a raise to ask for. They should also look at other similar fast food restaurants’ job postings. Are they offering the same pay range?

For the Employer

Pay transparency laws should help you reduce turnover and avoid costly discrimination lawsuits. While adjusting to the new rules, be aware there may be hidden compliance costs. For example, you may need to invest in new systems or processes to collect and disclose salary information. This could increase your administrative costs. You may also need to raise your current employees’ salaries to prevent them from quitting. To do this at a sustainable pace, you can tie raises to job performance and give reviews twice a year. Before posting an open position, check to see what pay range your competitors are offering.

Negotiating terms of employment is where the foundation of trust gets built between an employer and employee. Pay transparency laws should produce a more competitive job market, better informed decisions, improved employee morale, and a more positive work environment for everyone.

How do you feel about pay transparency? Please share in the comments.

Tax Facts

The green surrounding me for St. Patrick’s Day celebrations this week reminds me of the color of money which reminds me that it is tax season which reminds me of the education I received when filing them this year. What is your philosophy for paying taxes? Overpay and get a refund? Under pay and owe at tax time? How do you keep up with all the changes in tax laws? Here are three things you may not know about filing your taxes this year.

Quarterly Not Annually

Do you have as few tax dollars taken out of your paycheck as possible? It’s logical you want to keep as much of the money you earn as allowed. Are you satisfied not receiving a tax refund if it means that you keep your money during the year? Did you know the IRS expects to be paid a certain percentage based on your tax bracket at the time you receive your pay and reconciles quarterly, not annually? If you haven’t had the appropriate amount withheld from your paycheck every quarter, then you are assigned a penalty fee when filing your annual return. Now I know why my gig-working friends fill out Form W-4 every year.

Not a Firm Deadline

Every organization that owes you a tax form is supposed to mail/email it by January 31, right? That means you should be able to safely file your tax return in mid-February. Did you know that if you have certain investments, for example, you are a partner in a business and you report your share of that business’s income on your personal tax return, then you may not receive a K-1 form until mid-March? More on that here.

No Penalty for No Coverage

Did you receive any 1095 forms? They provide information about your health care coverage. Remember back in 2010 when the Affordable Care Act required all Americans to have health insurance or else you paid a fine at tax time? The 1095 forms state how you are covered, for example If you received health care coverage through your employer or the Marketplace. Did you know that there has not been a penalty at the federal level for not having health insurance since January 1, 2019? Yet, these forms keep coming. California, Washington D.C., Massachusetts, New Jersey, Rhode Island, and Vermont require their residents to have health insurance (although, Vermont does not impose a penalty for no coverage). The IRS wants the information, so you keep receiving these forms.

You have several options for filing tax returns. For example, you can purchase DIY software. Here is a comparison of a few. You can hire someone to do them for you. Here is how to look for a good tax preparer. If your annual adjusted income is $73,000 or less, then you are eligible for free guided preparation through this program. Any of these options can provide you with information on annual changes.

What is your philosophy about filing tax returns? Please share in the comments.

Love Local

This Valentine’s Day the news about Mikesell’s is a heart-breaking reminder to support your local small businesses. If an organization that has operated for over 110 years can close, then every local business is in danger. Here are three reasons why you should spend your hard-earned money locally.

Your Money Stays Here

In 2019, 47.3 percent of employees in the United States worked for small businesses. It’s likely you know someone who works for one: your next-door neighbor the landscaper, your nephew the HVAC apprentice, your friend the bookkeeper. By using their services, you keep your money in your community. You have much more influence locally than you have globally. Big box stores often get tax breaks from local governments that local small businesses do not receive. When you vote with your wallet by choosing to purchase local over big box stores, it is a statement of your values. Small businesses competing with one another prompts innovation and lower prices. This is why I like to frequent several local coffeeshops. (Okay, it is ONE of the reasons I spend so much money in local coffeeshops.) The sales tax from small businesses stays in your community. This money goes to pay for things like public schools, fire departments, and libraries. Local small businesses tend to transact with other local small businesses keeping even more money flowing through your local economy.

You Help People Make a Living

Sure, you can pick up Chipotle for lunch, but what about that Mom and Pop Mexican food restaurant down the street? Chipotle is not going anywhere, but every day Mom and Pop are struggling to stay in business. Some small businesses sell products that are locally made. The closer the product is to the place where it is sold, the less transportation it takes to get it there. This reduces the amount of fuel needed and saves the seller money. It also reduces the amount of emissions in the air making the environment more safe for everyone. Buying local allows more of your neighbors to make a living. That Mom and Pop Mexican food restaurant hires local residents as managers, servers, cooks, etc. Does your city have a farmer’s market? The space, products, and artisans are all local. Local small businesses positively impact your local economy in multiple ways throughout your community.

You Create Community

The more invested you are in a community, the more concerned you are about all of its citizens. Their welfare and future are tied to yours. Local small businesses are famous for supporting nonprofits. According to businessjournaldaily.com, small businesses donate 250% more than large businesses to community causes. Small local businesses sponsor kids’ sports clubs, food banks, and job-seekers programs. It’s likely that you can name several local small businesses that support the same nonprofits you do.

Valentine’s Day is the perfect occasion to show some love to your local small businesses. What are some of your favorites? Please give them a shoutout in the comments.

Hush Money

Last week in part one of the It’s so Quiet series, we talked about Quiet Promotion. This week let’s look at the Quiet Quitting trend, particularly focusing on how it may impact your income. Can you afford to quiet quit? Can you afford not to?

What Is It?

Quiet Quitting is meeting the minimum expectations of your job requirements and feeling psychologically detached from your work. If you avoid leading a team of your coworkers or you refuse to work overtime, you may be a Quiet Quitter.

What Can You Do?

Job descriptions are living documents. They expand and contract with both the company’s needs and the employee’s abilities. Level setting expectations on a regular basis is vital to shaping both your work and your engagement. Here are three things you can do:

Document: Make a list of duties you were asked to do that are outside of your job description. Are they housekeeping tasks? For example, taking notes in every team meeting, typing them up, and distributing them. Or, are they responsibilities that will make you visible to leadership? For example, presenting your department’s Q4 statistics in the partner meeting. If they are housekeeping, then no wonder you’re discouraged. But if they are responsibilities that put you in front of the people who can further your career, then rethink what may be going on behind the scenes.

Communicate: Whatever your documentation reveals, it’s time for a 1:1 with your manager. Present your list. Politely state you’ve noticed an uptick in duties. Ask if these assignments are intentional. If so, and they are housekeeping, is it because of your status in the company? (E.g., You are a junior member of the team.) If the assignments are more high-profile, are you being set up for promotion?

Strategize: After documenting and discussing, think about where you want to go from here. If the assignments you received position you to advance, then the extra work benefits you in the long run. However, the rise and grind culture leads to burnout. If you are expected to go above and beyond your job description with no end and no reward in sight, then do you really want to stay at your organization? Particularly if you work in Big Tech. Seventy-nine percent of the workers laid off last year had another job within three months. Things to consider when making your decision:

Do you have an emergency fund with $1200 in it?
Do you also have six months worth of expenses saved?
How will the coming recession impact your portfolio, mortgage, and/or loans?
Do you have a side gig that you can ramp up to second-job status?
Do you have an alternative for healthcare coverage? (E.g., through your spouse’s employer)
Does your current employer offer benefits (e.g., working remote and/or flexibility) that compensate for the extra duties?

You could also keep quietly quitting, but that can lead to Quiet Firing; more on that next week.

Have you ever quietly quit a job? Please share in the comments.

Your Favorite Things

We have arrived at the end of another year. Being the data geek that I am, I analyzed the stats to see what articles received the most views. If you missed these conversations, or you’d like to revisit them, here are the top three most viewed articles in each category.

Time

Time for a Brand Refresh

Too Young to be Done

Time for a Change

Energy

Battery Low

You Can Talk to Me

You Can’t Always Get What You Want

Attention

Thank you for walking down memory lane with me. The best holiday gift you can give me this year is your feedback. What topics did you like? What other topics would you like to discuss? What challenges at work do you need help solving? Please share in the comments.

The Most Expensive Gift You Can Give

Are you panicking because you have yet to come up with a gift for your hard-to-buy-for person that won’t bust your budget? Fear not: for behold, I bring you good tidings of great joy, which shall be to all stressed out people. Here are 25 gift ideas that cost more time than money.

Bake cookies – It’s not about the cookies. It’s about spending time together. If you don’t want to make the cookies, then clean up the kitchen afterward. If you don’t want to eat the cookies, drop them off at your local police station, firehouse, or emergency department in appreciation to your first responders
Free labor – Does someone need help painting their living room? Moving to a new residence? Rearranging furniture? Print a gift certificate offering help
Christmas movie marathon – Choose your favorites and watch together. Yes, Die Hard is a Christmas movie
Cooking class – If someone loves to eat a certain meal of yours, take all the ingredients to their kitchen and teach them how to make it
Parades and football all day – Take turns explaining why you think these activities happen on a holiday
Video game tournament – Teach someone how to play your favorite or learn how to play theirs
Love notes – For those whose love language is words of affirmation, write them a paragraph explaining what you love about them
Skill share – You are proficient in Excel, but can’t trim your dog’s toenails. Your brother needs an Excel primer and can trim doggy toenails. Trade tutorials
Brand refresh – Audit their website, proofread their resume, tell them what you like about their LinkedIn profile and what could be improved
Go for a walk/hike – If the weather does not currently permit, issue them an IOU
Holiday lights – Map out a route, take along some hot chocolate and maybe the dog, and drive through local light displays
Volunteer together – Your church and local food bank always need help
Online yoga class – Turn on YouTube and search for “twenty-minute yoga for beginners”
Scavenger hunt – Think Easter egg hunt but with candy canes
Video tribute – Are you good with iMovie or a similar platform? String together some of their favorite photos and set them to music
Playlists – On the music-streaming platform of your choice
Museum visit plan – Some museums are free and some are free on certain days. Spend some time brainstorming where you’d like to go and when
Start learning a language together – set up a schedule to practice with one another
Sit – Create a gift certificate for a few hours of baby, pet, or house-sitting
Photographer – Intentionally document this year’s celebration and send the photos to everyone
Pre-celebration service – Help the host clean house before guests arrive. Or, take their car for a wash and vacuum before their holiday trip
Outdoor service – Create a gift certificate for shoveling the snow off their driveway and sidewalk after the next accumulation
Something to look forward to – Schedule a future 1:1. Coffee date? Church date? Ice Cream date?
Storage – Offer to scan their printed photos and save them on a USB
Give it away – Create a gift certificate to help clean out their closets. After the purge, take the donations to a Goodwill or Salvation Army store and bring back a receipt for their tax purposes

The most expensive gift you can give is your time. You can make more money, but you can’t make more time. Please spend yours wisely. Thank you for the time you spent reading this article. Happy Holidays!

Ho Ho Hold Up

Back in October we saw jack-o-lanterns, cornucopias, and reindeer all sitting together on store shelves. Now that shipping is better, the supply chain is bringing us too many goodies too fast and we feel the fourth quarter holidays all running together. Maybe we should embrace it and create a new holiday: Hallothankmas. It’s not just the holidays that are accelerating. Threat actors are too. Cyber criminals are lying in wait for unsuspecting shoppers who give out their Personally Identifiable Information (PII) faster than mall Santas give out candy canes. If you’re shopping online this holiday season, here are four things you can you do to protect yourself.

Know Where You Are

The number of phony websites increases this time of year. Before entering any payment information, double check the URL you’re using. Is the name of the company spelled correctly? Does it have extra words that you didn’t expect? When you go to the payment page, Is the lock symbol and “https” in the URL?

Legitimate Forms of Payment

Do they want you to pay with cryptocurrency, gift cards, or a wire transfer? These are all untraceable methods of payment. Once you complete a transaction with those forms of payment, you can’t get your money back. Insisting on these ways to pay is a clue that the retailer is a fraud. A scammer reached out to me recently and I had to laugh. I received an email allegedly from my boss instructing me to go out and buy 10 gift cards then reply to the email for further instructions. How did I know it was a scam? I no longer worked for that boss.

You Are a Target

You are bombarded by targeted ads following you from Instagram to Facebook and all platforms in between. Some of those ads are from disreputable companies whose branding tempts you with hard-to-believe deals on popular merchandise. Do not click on those. This is not the time to try an unknown retailer. Some of these companies are selling knock-offs and some aren’t selling anything. They collect your PII and money and send you nothing. If you are tempted, read reviews of both the item you want to purchase and the company. If there are no reviews, or few, or they are all glowing, skip this seller.

Pay Attention

Things tend to get busier this time of year. You may forget to check your accounts as often as usual. Cyber criminals are counting on that. If you have increased your online shopping, then check your accounts more often through the end of the year. If you see any transactions that you don’t recognize, can’t find an emailed receipt for, or the transaction is for an odd amount (e.g., .99¢), contact your financial institution immediately.

Hallowthankmas can be dangerous for your wallet on a few levels. It’s the season of giving, but that does not include giving away your money or PII. You can keep your guard up where finances are concerned while still letting it down for friends and family.

Do you take extra precautions at this time of year to protect your financial accounts? What are they? Please share in the comments.