The Problem With The Value And Faith We Put In Paper And Electronic Currency

If you reach into wherever it is that you keep your on-hand cash and pull it out, there are four things that you should keep in mind:

• You have exchanged something of value to you in order to obtain that note, and you should have a good understanding at all times of just how much of that valuable thing you traded for that note
• From the time you exchanged that item of value for that note, there has been and will always be continual fluctuation in how much of that valuable thing each note is worth to you and others
• The actual note in your hand only has a perceived value, granted to you by others who also believe in that same perceived value, otherwise all you hold in your hand is a piece of paper
• Without an exchangeable value other than its perceived value, all of the value you put into that note could completely disappear instantly…yes, instantly!

No matter where you sit on the political spectrum, no matter how you earn your money/dollars/notes, and no matter your age, location in the world, or your socioeconomic conditions, these four things apply to you. Pretty scary, isn’t it, especially that part about the value of your notes disappearing instantly, right?

There was a time in history when all of the paper currency in the world, whether issued by a bank or a government, was exchangeable for, and therefor backed by, a stockpile of precious metals somewhere. The value of the paper money in your hand was tied to the value of gold, silver, or some other metal that was under lock and key somewhere, and any time you wanted, you could go and trade in your paper money for that tangible precious metal. Today, however, this is no longer the case. And that is why whenever we are dealing with paper currency, we need to remember those four things above.

But, how did we get here, and why? That’s the trillion-dollar bill question, isn’t it?

Sadly, the answer is very simple. It all boils down to the fact that governments need your value through either your labor or your money, in order to operate and exist. That means that governments need to provide a currency that can be used to perpetuate their economic system and provide the means to take value from you. But today, there are far too many people, there is far too much potential value, and there is far too little precious metal to have paper currency tied to actual tangible real-world assets any longer. In short, the world’s governments and their economic systems need far more value in paper money than all of the already-mined precious metals in the world can provide.

Following the chaos of World War II, the 44 Allied nations came together and agreed that in order to create economic stability, they would all peg their paper currency to a gold standard and that each of their gold standards would be tied to the U.S. dollar at an exchange rate of one ounce of gold for 35 U.S. dollars. This created a scenario in which these nations and their central banks could exchange U.S. dollars for gold on demand. This system worked well and helped fuel the economic growth that would ensue for the next 25 years.

But that amazing growth would yield a problem by the 1970s. The Allied nations’ populations and economies had grown so large that the amount of U.S. dollars in circulation had far surpassed the amount of gold the U.S. held in reserves. This meant that if the world’s governments cashed in their greenbacks, there would not be enough gold to pay everyone their stored value. Fearing that this would cause a run on U.S. gold and result in economic collapse, in 1971, the U.S. government removed the gold standard from U.S. currency, allowing the central bank to just print money that has no actual real-world, tangible value except for what we perceive in our minds as a collective. No longer could the world’s governments exchange U.S. currency for a fixed amount of gold. Instead, the value of each piece of currency would be tied to its perceived, or market value.

Let’s think about that for a second. When banks and the U.S. government first started printing paper money, the value of that paper money was tied to a precious metal like gold or silver, but that meant there could never have been more paper money out there in circulation than the amount of physical precious metal the bank or the government had on hand. That also meant that at any time, you could walk into the bank or the right government office and demand precious metal in exchange for the paper currency in your hand.

Do you see how this system of paper money based on a precious metal stockpile makes perfect sense? People no longer had to carry cold coins in a purse or large amounts of gold bars on a carriage, but instead, just had to carry light paper currency in their pocket.

But now, people can no longer walk into the bank or a government office and demand something of real-world value in exchange for the paper currency in their pocket. Today, all you can get for that paper money in your pocket is other forms of paper currency, or worse, a balance on the bank’s or government’s electronic ledger.

And, if the fact that paper currency is no longer tied to anything of actual real-world value is not scary enough, the next step, which is already well underway, is to transform that paper money into electronic numbers on an electronic balance sheet somewhere in the cloud.

Imagine a planet where the governments of the world convince us all that the cost of producing that actual paper currency is just too high, and even worse, completely unnecessary now that we have this beautiful digital world in which everything is stored on electronic ledgers and we can all carry around little plastic cards in our pockets instead of that costly-to-produce and now completely unnecessary paper money. Oh, and don’t even get them started on producing coins! It costs a nickel to make a penny now. How impractical is that? You humans don’t actually want to carry around coins any more, do you?

If you don’t believe this is where the governments of the world are taking us, think a little about how you transact now compared to ten or twenty years ago. How often are you using actual paper currency versus those plastic cards in your pocket? How many of your bills do you pay with a paper check, and how many do you simply pay online?

See how this is all progressing along nicely for the governments?

And what is the problem with the governments doing away with physical currency all together? Well, the biggest problem is that people will no longer have the ability to hold currency outside of the electronic system - meaning no one, ever, will be able to hide currency from the government's greedy hands.

Then, all it will take is for the government to sit at a keyboard and it can have complete access to the value of everything you own. Remember how earlier we talked about you exchanging the value of something for that currency? Well, once all currency is electronic and there is no way for you to hold that value in something tangible, then it can all be wiped out, entirely wiped out, with just a keystroke. That’s everything you have worked for your entire life – gone in an instant.

Couple this with a current movement to get everyone on the planet an electronic ID by 2040 and every single person on the planet and their electronic currency will be reachable by governments and global governing bodies like the UN at any moment, anywhere in the world.

Can't wait to see the black markets this creates for alternative currencies! We'll be using commodities as currencies to barter with each other outside the government's ever-watching eye like it was the Dark Ages again. How many chickens for a sword?

Think of what this will do to the price of precious metals. That is, if the governments even allow us to own precious metals any longer once they do away with all physical currency.

While we will have to see where governments and technology take us, unfortunately, there is very little we can do about the tangible real-world value in our paper money, other than exchanging some of it for precious metals while we’re still allowed. The main thing to remember each time you look at those paper notes in your hand is to ensure that your portfolio of assets is as diverse as possible.

Never keep all of your value in eggs, and never keep all of those eggs in one basket.

Photo by The Digital Way via Pexels

Hours 38 to 40: Profit And Your Personal Finances

Once upon a time, when I was working with a consulting company that billed its customers hourly for their time, its CTO offered up an amazing perspective on profitability for its team of consultants during a team meeting. He explained that when it came to generating profit to put back into the business and to fund increases in employee compensation and benefits, the company’s consultants needed to keep in mind that while the company leadership appreciated everyone’s hard work, it was important to ensure that they billed a full 40 hours a week because all of the company’s profit projections were based on a 40-hour billable week.

He went on to explain, approximately of course, that it was hours 1 to 37 for each week that covered the cost of the expenses, but it was hours 38, 39, and 40 that yielded the profits the leadership put back into the business, and for that reason, while consultants might feel that billing close to 40 hours a week was close enough, it was, in fact, actually not.

This lesson in hourly billing and profitability not only resonated with me when I heard it, but still does to this day, because it makes me think of the very same concept as it applies to personal finances as well. While most people would never look at it this way, their personal finances are very similar to the financial models this consulting business and its CTO were addressing that day.

Much like this consulting business, and any business for that matter, each of us as individuals also have expenses that when deducted from our income, yield either a profit or a loss. If you get paid hourly and only work 37 hours per week, but your expenses take up your full amount of pay, which you anticipated being for 40 hours per week, you actually are going to bring in less money than you need to cover your expenses. While this comparison is quite literal, the same holds true for however you are paid, be it hourly, salary, in lump sums as a consultant, or any other way.

The bottom line is that you should always know exactly what your expenses are and should always ensure that your income never falls below the amount of those expenses no matter what you do. In fact, you should always strive to ensure your expenses are as small of a percentage of your income as possible. You should view the difference between your expenses and your income as your profit, and without profit, you cannot reinvest in the things in life that you enjoy and that are important to you and your loved ones.

Your personal profits are the money you use to pay for things like vacations, education, luxuries, or whatever other experiences or items you and your loved ones enjoy. By looking at this money left over after paying your expenses as profit, you can very easily identify and dedicate your efforts in ways that increase that profit.

So, the next time you feel 37 hours is close enough, or spending just a little more than you earn is no big deal, remember that without profits, you will have nothing to reinvest in your life, and what is the point of all of that hard work if all you ever do is just cover your expenses or dig yourself deeper into debt?

Photo by Meditations via Pixabay

When It's Time To Give, I Choose Family...

None among us wants to ever be seen as uncharitable, but with the overwhelming number of times we are solicited for donations, coupled with the fact that it is very difficult to gauge the trustworthiness of so many charities and individuals out there, each of us can struggle to find a balance between giving and ensuring that our giving goes to a worthy cause.

I, however, have found a solution with which I am quite comfortable, and have chosen to implement this solution for the foreseeable future. While it can still be difficult to say no to unproven outlets for my giving, I know my solution is the best course of action for my peace of mind, and my hard-earned money.

I can often be heard saying, usually under my breath with a sigh, “Everyone wants our money.” When I go shopping for groceries and come out of the store, even at 6:00 AM on a Sunday, there is a person there with a table, a lockbox, and a sign, asking me to make a donation. How often am I paying for something in a store, and the cashier asks me if I would like to make a donation to a cause the store is supporting? A couple months out of the year, every time I buy a movie ticket at the ticket window, I am asked if I’d like to make a donation to the charity the movie theater is supporting at the time. At least twice a week when I go to the mailbox, there is an envelope in there from a charity soliciting a donation through the mail. And obviously, each November and December, these solicitations for donations increase exponentially.

In addition to each of these forms of organized donation solicitation, the number of times I am solicited by individuals for money is also overwhelming. It happens to each of us, I am sure. We are walking into or out of a store, driving into or out of a shopping center, or maybe just driving down the street, and we are asked to part with some of our money by someone who is personally asking for help. Sometimes they ask directly, and other times they are holding a sign. Sometimes they are alone, and sometimes they have their family or a pet with them to pull at our heartstrings.

It can be someone asking if I have some spare change, or someone asking for something specific like money for gas to get somewhere while I am at the gas station. Sometimes the person will disclose a bit of their story, like that they are a veteran, or just lost their job, or as was the case with one guy I encountered in Santa Barbara in the mid-90s, just needed a beer and was out of cash. The people asking vary in age, stature, and are from obviously varying backgrounds. I’ve even encountered some that I know also work part-time at local retail stores and other businesses I frequent.

I know if someone was to see me smile and acknowledge the person that was sitting right outside a store I was walking into, yet not hand them some of my money when they ask for it, they would most likely think me to be uncharitable, and perhaps to that individual, I am being uncharitable.

And while I believe it is not only right, but fulfilling, to gift some of my hard-earned money over the course of each year, the bottom line is, when it comes time to gift my money, I prefer to ensure it goes to what I know will be a worthy cause by gifting it to a member of our extended family, usually one of the kids on their birthday or during the holidays, or when it comes time for back-to-school shopping. I would much rather see that money go into something that puts a smile on one of those little faces than simply hand it to someone or some organization that I know little or nothing about.

But, nonetheless, I still must admit that I feel a little bad when I deny my money to someone who has made the effort to ask for it, but at the same time, I also feel that by simply handing that person the money which I have earned through my hard work, I am aiding in whatever situation landed them in that spot in the first place. It’s all very “teach a man to fish” in my eyes.

It’s especially challenging for me to say no when the person claims to be a veteran because I truly feel that if our government should take care of anyone by confiscating part of my earnings, it should be our veterans. Sadly, however, I have been burned before and simply cannot take a person’s word at face value. I’ve donated in the past to organizations that I knew without a doubt provided care for veterans, but I’ve also been burned in the past by organizations that spend far too much of the donations they receive on administrative costs. Ultimately, in the end, this led me to the decision to restrict all of my giving to people I know personally.

I find a great deal of comfort and peace of mind in knowing that the money I gift in this manner is going to enrich the life of someone that I care deeply for and truly appreciates the gesture. With all of the questionable charities and individuals out there, I find this direct gifting to not only satisfy my desire to do my part, to give back, to share the wealth as they say, but I know it also fills the recipient of my gift with the same joy I feel when I see them enjoying the fruits of my hard work and dedication.

Photo by Maxlkt via Pixabay

It's Time For A New Choice!

So, I was thinking today…now that I feel I have diverged pretty significantly from the Grand Ol’ Party and many of its high-ranking officials who refuse to join the fight to keep “that woman” Hillar-ious Rodham out of the White House, should I consider myself to be an Independent? If I decided to seek office, would there be an (I) next to my name now instead of an (R)? I know that despite how muddled the party lines are right now, if I ran for office today, I’d have to choose either a (D), an (I), or an (R), right? And yes, I know there are a host of third-party designations out there to choose from, too, but we all know how their runs for office turn out. I’d truly love to call third-party candidates more than a novelty at this point, but here we are.

There is definitely one thing I can tell you for sure, and it’s that there won’t be a (D) after my name any time soon, if ever. I believe in small government, personal responsibility, personal accountability, immigration laws, tightly controlled borders, and not only no new taxes, but repealing existing ones. I don’t believe in wasteful government spending, the minimum wage, socialism, mandated insurance, and Ponzi schemes like Social Security. I believe in completely eliminating fraud from government spending. I believe in work for welfare, right to work laws, capitalism, free markets, restrictions on abortions, and the right of religious organizations to choose which forms of birth control they offer, or none at all, if they so choose. I believe in saluting the flag, that most police officers are good folks trying to do their best with the difficult circumstances our lax society has created, the right to protect your family with firearms, and above all, that it should be the responsibility of each one of us who is capable of working to go to work and handle our own shit instead of relying on the government and taxpayers to keep us sheltered, clothed and fed. I am entirely against affirmative action and other reparations for things that happened in the past that had absolutely nothing to do with me. I do not believe in the notion of “privilege”, but actually believe that every single human being of sound mind and body on this planet has the same exact abilities as every other human being, and should be treated exactly the same, regardless of skin color, birthplace, views on religion, etc. And no, I am sorry if you think so, but that is not what (D)s believe. I don’t believe anything is, nor should it be free of cost. And I believe that we should all have to pay the same percentage of taxes, regardless if we make one dollar or one billion dollars a year. So, yeah, no question there about the party to which I DON’T belong!

For the most part, all of my beliefs and disbeliefs would automatically qualify me for that (R) after my name, but here are some of the things with which I have a problem; an (R)-controlled congress that passed a budget with MORE spending in it than the previous (D)-controlled congress, (R) politicians that pass special interest- and personally-driven pork projects like they were a (D), a political party that cannot produce a decent presidential candidate any longer and whose leadership refuses to support the nominee its members have chosen to run for President, a party that is so mired in socially conservative issues that it is continually losing ground at any chance of appealing to anyone other than the most staunch social conservatives. Contrary to many (R)s, I do believe we are having a negative impact on our environment, especially our oceans and the planet’s water system. I believe the government should play a role in protecting the environment, but I also believe our government, especially when in the hands of (D)s, goes about it in a completely inefficient and misguided manner.

So, what letter do you choose to describe yourself if you’re not a particularly religious person, but believe people definitely have a right to be one, yet at the same time, do not have a right to force their religious views on others? What letter do you choose if you don’t care what consenting adults do to each other in the privacy of their own homes, think there should be a separation between a religious marriage and a legal marriage, that legal marriages should be between whoever anyone wants, yet have no problem with a football team praying before a game or newly arrived students being taught English before anything else? What letter do you choose if you understand that most people in the world who practice religion are good people, but that there are some who commit horrible acts in the name of their religion? What letter do you choose if you think it is a horrible mistake to not factor those people’s religious beliefs into understanding why they are committing those horrible acts? What letter do you choose if you believe we are fighting a large number of radical Islamist terrorists, yet understand that not all Muslims are terrorists, nor are all the terrorists we are fighting Muslim? What letter do you choose if you understand that sometimes the government needs to listen in on people’s conversations to try to find the bad guys and have no problem with them listening to yours, yet still will be upset because they are wasting tax money in doing so?

Then, while dealing with all of these questions, I also have to keep in mind something that is a huge flaw with our existing primary system, in particular the Taxifornia (R) primary. If I don’t register as an (R), I lose the chance to vote in the (R) primaries here in the grand state of Taxifornia, and will only have the option to vote in the (D) primary. Me voting in the (D) primary is about as stupid an idea as me having to choose between Kamala Harris and Loretta Sanchez to be my new Senator. Then again, since I live in such a (D) state, our primary seems to always land so late in the cycle that our (R) primary votes are mostly symbolic anyway. By the time the damned (R) primary rolled around this time, Taco Bowls was the only person still running. I waited two years to vote for Ben Carson, and I never got the chance.

So, with no chance of considering myself a (D) because of where that party stands on just about everything, and a growing number of issues that I seem to be parting ways with the (R)s on, is it time for me to consider myself an (I)? I took a little time to research exactly what the common perception and understanding of an (I) voter is these days, and it didn’t necessarily provide me with a cut and dry answer.

Wikipedia describes an (I) as “a voter who does not align themselves with a political party. An independent is variously defined as a voter who votes for candidates and issues rather than on the basis of a political ideology or partisanship; a voter who does not have long-standing loyalty to, or identification with, a political party; a voter who does not usually vote for the same political party from election to election; or a voter who self-describes as an independent.”

Well, while I don’t always align completely with the (R), I definitely am more closely aligned to that letter than either of the other two. But, at the same time, I vote more on my conscience and my fiscally conservative views than anything else, regardless of what political party seems to be blowing that way at the time. Then, again, I definitely have more of a long-standing loyalty to the (R) than the other two. Over time, I have identified far more often with the (R). When I look back, I do usually vote for the same political party in election after election, though when there has been a better (I) choice, I have gone that way – case in point, Ross Perot.

Yet, as for that last point, I am definitely having a harder time self-describing as an (R) these days, but realistically, I wonder if that is because the party’s presidential primary and general election strategy was so lacking this time around. I think, too, that a good deal of the problem I have with blatantly slapping that (R) at the end of my name is due to the fantastically-successful campaign the (D)s have conducted in this country since 2006 to create a social stigma around that (R).

Meanwhile, I feel that the (I) means you vote with the (D)s about as often as you vote with the (R)s, but other than a few propositions here and there for which I might align more with the (D)s based on fiscal principle, I hardly ever vote with the (D)s, especially when it comes to any politician with that (D) after their name. The only time I EVER voted for a person with a (D) after their name was for Willy Jeff in 1992, and have I regretted the shit out of that ever since, especially now, since that vote helped play a role in enabling the crooked monster to rear her head today!

And thus, after contemplating and researching, I find myself in the same quandary now as I was in the beginning of this letter-based party alignment self-analysis. If you divide the political spectrum into just a (D) and an (R), then I would have to choose (R). But, if you provide the third option of an (I), I fit a little less into that (R), especially on some key social issues. And when I weigh all of this, no matter how I look at choosing a letter for myself, I really feel like I need a new choice.

And wanting a new choice brings me back around to what I like to call my core beliefs and wanting my new choice to be based upon those beliefs. My core beliefs are in fiscal conservatism. That means I believe in small government, less spending, lower taxes, strong capitalism, personal responsibility, work for welfare, controlled immigration, and the bottom line as the top priority, including government staying out of social issues to help reduce the cost to taxpayers. If I look at the person running, or the measure being decided, each and every time, I vote for the person or measure that is going to make the most financial sense, first for me, then, for the country. And this tells me that even though the (I) was created to give us an alternative to the (D) and the (R), I still am not comfortable slapping any one of the three at the end of my name right now.

So, in conclusion, the rules and politics can all be damned! It’s time for a new choice! To misquote Uncle Moe, “I was born a fiscal conservative (anyone who knows my grandfather can attest to that), and I will die a fiscal conservative”, regardless of what party or non-party seems to most closely align with those views at the time. So, for now, I will refuse to adhere to one of those pre-existing letters and go with my own choice, (FC) for Fiscal Conservative.

William L. Savastano (FC-TA). Done, and done.

Oh, and yes, the TA stands for Taxifornia, the state in which I was born and pay through the nose for the privilege of living.

Image created by William L. Savastano

Concentrate On Your Personal Economy

I was deep in thought when I came to the realization that given all of the information available to us today, we easily can become overwhelmed. While there was a time in history when people starved for knowledge and there was great excitement at obtaining a new book or other item to read, today there really is just too much information out there.

Think about the likelihood that you could actually watch every episode of every television show that you wanted to watch in today’s world of satellite, cable, and made-for-streaming “television”. It would be impossible. There is just not enough time in a lifetime to watch it all. The same is the case for all of the great content there is to read out there.

I can readily admit that I am addicted to reading as much about business, the economy, healthcare and politics as I can. My inbox is filled with newsletters and articles that I read every time I am out walking or have a few spare minutes to glue my eyes to that little screen I carry around in my pocket.

But, in the end, I always struggle with the return on investment of my time. Granted, I am learning a great deal every day, and remain fairly well updated on the goings on of the world, but would my time be better used in some other manner? I often tend to feel that could be the case.

The area where I question the time I spend consuming content the most is politics. Sure, I can tell you much more about what is going on in politics than the average American, which sadly, isn’t saying much, but what is the ROI of all that time I spend keeping current on the subject?

Does being up-to-date on the political landscape make a difference in my life? Can I make a difference at all by knowing what is going on? Does being aware make it any easier to swallow the circumstances that are provided to us by the politicians and the immense political machine that the American government has become? Realistically, while I struggle with the answer, it seems to be a resounding ‘no’.

And this is what really got me thinking that day. For as much time as we all can spend reading about politics and politicians, how does this knowledge actually reflect upon our own personal economies? Not the U.S. economy, or the economy in the state we live, but our actual personal economies – our own little financial empires, however big or small, that can be effected by changes in Washington as well as something as personal as changing a job or whether or not we buy a new car.

All of the politicians in Washington and the state capitals try to influence our votes by telling us to ask ourselves if we are better off now than we were “x amount of time” ago. These politicians then try to either take credit for, or blame others for, the state in which we find our own personal economies at the given time. And while things like the Affordable Care Act and tax increases or whether or not mortgage loan interest remains tax deductible can all have an influence on our personal economies, there is no one bigger influence on them than ourselves.

Stop doing your job and see what happens to your own personal economy. Do an amazing job and get more business or a promotion and see what happens. Buy a brand new house or car that you can’t afford and see what happens. Each of these things will have a far bigger impact on your life than whether a Democrat or Republican is president or who is controlling the congress.

As someone who has spent a good deal of his time reading about politics and politicians, I don’t necessarily recommend putting your head in the sand, but I do recommend not getting too caught up in the political rhetoric that ultimately in the end will not have nearly the effect on your own personal economy as the financial decisions you make.

Paying more attention to your financial decisions and taking the time to better understand how they will affect your own personal economy will yield far more ROI on time invested than any other effort you can undertake.

Photo by Charles Thompson via Pixabay

Why You Should Skip That New Car In Your 20s

When you are in your 20s – early 20s if you skip college and go right to work – or maybe your mid to late 20s if you finish school before taking on that first full-time job – you are most likely going to find yourself earning more money than you ever have before in your life. While this salary will pale in comparison to the money you will most likely be making in your 30s, 40s, 50s, 60s, etc., this new windfall in your bank account is very likely to get you thinking about buying a shiny, brand new car.

If you’re like me, you drove a few clunkers through high school and college, and the prospect of trading that money sitting in your account and that money coming in from those future paychecks for a new car is going to be a very powerful temptation.

But, while it seems like a pretty harmless financial choice because you’re young and have all those years of working ahead of you, opting for a brand new car at this point in your financial life can greatly affect the amount of money you can save and the dividends and investment gains you can earn over the course of the rest of your life.

If you insist on upgrading to a new vehicle, at least go with a pre-owned car because it will save you a lot of money up front and you won’t get hit that hard with depreciation – at least not as hard as if you buy a new car. But if you already have a car, and it’s not leaving you stranded by the side of the road once a month, it might make the most financial sense to keep the car you already own.

According to a study by the National Institute on Retirement Security, some 45% of working-age households have no assets in a retirement account, and those that do have an average balance of $40,000. The average price of a new car, according to USA Today is $33,560. How many of those households with no balance or below average balance in their retirement account have a brand new car that is costing tens of thousands of dollars? Take into consideration that most car purchases are financed, which adds financing fees on top of the price of the car, and consider the value of a new car drops 20% in the first year and by more than 50% by the fifth year, and you can clearly see how saving the money you would spend on a brand new car is clearly the better financial decision.

It is important to remember that your desire for that shiny, brand new car will definitely subside once you’re knee-deep in five years’ worth of car payments and an inflated interest rate. Plus, keep in mind that if you can pull together just $16,000 in five years (that’s $266.67 per month), and invest that money, even at a return of 7%, you would have $120,000 in 30 years. And 30 years from now, you most likely still won’t have that shiny new car you were just dying to get in your 20s.

Photo by Mike Birdy via Pexels

Knowledge Is Money

It's not Wall Street's fault you're not saving. It's yours! Sorry to be so blunt, but after spending some time thinking about a very reactionary response I gave when a financial industry veteran asked me what I know about banking, I came to the realization that many of us think Wall Street is hoarding all of the financial information and keeping it from the rest of us. Many of us think this is why it is so hard to get ahead financially, but I believe this is just not the case.

In my latest guide, I provide you with some reasons why it's not actually Wall Street's fault so many people have trouble with money, but actually our own. Then, I provide you with some easy steps to learn more about money and explain how this knowledge can help you get ahead.

Click here to read Knowledge Is Money.

Photo by Andrea Breitling via Pixabay

Balancing Tasks in the Real World vs. the Digital World

I was recently pondering the complexity of our technology-driven world and how many of us lead two different yet parallel lives - one in the real world and one in the digital world. Now, I’m not talking about those crazy catfishers who pretend to be someone else, but your everyday person who constantly struggles to allocate their time between both worlds.

Let me give you a little insight into what I’m talking about: It’s Saturday morning. I have two separate to-do lists, and I must decide which of the two to start. The garage floor needs cleaning, my car needs a wash, the living room could use some dusting and there are a few do-it-yourself projects around the house that need tending – a few wall scuffs that need to be painted and a shower door that really could use some re-caulking. On the other hand, I need to make some Facebook cover images for the coming week, archive and back-up my computer files, get a jump on reading some trade articles so I can schedule my Hootsuite posts, and as always, there’s more than a few articles in my head I would like to get down on digital paper. So, which world do I work in today – the real world, or the digital world?

And, if it isn’t hard enough to make a choice between these two worlds, I also need to work on some things that bridge the gap between them. I have hundreds of old pictures and other mementos I have been scanning over the past few years in my spare time just to ensure their longevity into our years of ripe old age. Nowadays, we have all these digital memories backed up to our “clouds”, but most of us are just one house fire away from losing all of the memories we made back when we had these things called cameras that exposed light to film and provided us with paper real-world pictures that aren’t backed up to the sky like their new digital counterparts. And being a writer, not only do I have pictures that could be gone forever thanks to a little Fahrenheit 451, I also have a good deal of early writings I still need to introduce to the digital world.

And thus, this is the conundrum in which I find myself whenever I set out to get some things done. Spend too much time organizing, archiving and backing up computer files, and the scanning of pictures and digitizing of hand-written items doesn’t get done. Spend the day scanning or typing and dust starts to gather on all the furniture. Spend the day cleaning the house or completing other tasks in the real world, and that inbox and those social media alerts sure start to stack up. What is a first-world, pre-artificial-intelligence-brain-implant human who still must interface with some type of electronic device in order to get something done in the digital world supposed to do?

Well, let me share a little trick that helps me work on all of my to-do lists – the real world, the digital world, and the bridge in between – just about equally. And ironically, my trick uses a very old technology to help me deal with balancing my digital world tasks with those in the real world.

The first thing I do is maintain lists of the tasks I need to complete in each of the two worlds as well as the hybrid tasks, giving me three separate lists of tasks. I maintain my lists in an Excel spreadsheet stored in DropBox so they are accessible anywhere. If you choose to try my method and you’re not a fan of Excel, you can maintain your lists on your phone, or even on that ancient tool our ancestors called paper. Whatever media you choose for maintaining your lists, just make sure they are easy to update, and above all, can be easily and promptly accessed when you think of something to add. I’ll often make a note on my phone when I think of a task, and then transfer that task to my spreadsheet the next time I open it in Excel. This helps me ensure I don’t forget anything that needs to be added.

Then, with my three lists handy, when I have some spare time to get things done, I pull out my hourglass. Yes, I said hourglass. What? You don’t have one?! I told you I used a very old technology. I turn the hourglass over and start on the first list. When the sand has run out, I turn the hourglass over again and start on the second list. And – you guessed it – when the sand runs out again, I start in on that third list. I then repeat the process over and over again, going from the third list back to the first list until my free time has run out.

I don’t always start with the same list, but tend to start with the list that is either the most pressing or has the most items. There remains some subjectivity in this method in terms of what I start with, but if I adhere to the hourglass’s time and switch when the sand runs out, I find at the end of the day, I have worked on all three lists and made progress in the real world, digital world, and the bridge in-between.

Of course, in these modern times, you can use any clock you possess – the one on your cable or satellite box – the one on your phone – the one on your microwave – the one on the solar-powered floating radio you use in the pool – the one on your laptop or other device. Use any clock and this method will work just as well. As for me, I found that without the physical running out of the sand, I tacked on extra minutes to finish a little more on the current list, and those minutes would add up to extra hours, defeating the purpose of the method.

Now, don’t get me wrong, if you’re midway through an oil change or painting a wall, or scanning a picture, or responding to an email, go ahead and finish out the task, but be sure you don’t linger on one list to forsake the others. Just be reasonable, and a little disciplined, and you’ll see this method can work well for helping you split your time between your worlds.

Images via Gordon Johnson and WikiImages

Credit Unions and Cybersecurity

I recently conducted some research on the cybersecurity challenges credit unions are facing and here is what I learned:

Data security breaches are a significant problem for credit unions because once members begin to question the safety of their personal information, these financial institutions can incur massive losses before member trust can be restored. Many consumers have been known to reduce the number of financial services they’ll put through their credit union following a breach, and some have been known to leave the credit union entirely.

The National Association of Federal Credit Unions found that, on average, a data breach costs a credit union just over $225,000. While credit unions have implemented security measures and devoted resources to protecting customer data, much like all industries, their measures are failing to keep up with the ever-increasing sophistication of attempts from hackers to gain access to credit union members’ personally identifiable information.

Even though federal regulations have been imposed on credit unions to ensure a basic level of security for member data, these regulations, even when met, are still falling short of stopping data breaches caused by malware. Thus, credit unions may be meeting regulations, but are still not meeting members' security expectations.

With endpoints that can vary from ATM machines to company laptops to customer and vendor portals, credit unions inadvertently provide many avenues for a cyberattacker to gain the foothold they need to launch malware and access databases housing sensitive customer information like social security numbers, passwords and credit card numbers.

And unfortunately, their own infrastructure is not all these credit unions have to worry about. As reported in a recent Business Insurance article, when asked what keeps her up at night, Debbie Matz, the head regulator for 6,350 U.S. credit unions, answered: a cyberhacker sneaking in through a credit union vendor, cracking through to the larger U.S. financial system and wreaking havoc along the way.

The credit union vendor portals Matz refers to can include a vendor’s own separate payment processing systems, like point of sale systems, which also leave credit unions vulnerable no matter how well they secure their own infrastructure. If a point of sale system endpoint is left unsecured, credit union members' personal information becomes vulnerable to theft and the endpoint can be used as an access point to larger systems.

One of the scariest parts of this story is that credit unions across the country are relying on traditional antivirus solutions to protect their infrastructure. These solutions are less than 50% effective at stopping threats, at best, and usually, threats are only identified after they cause damage. The data breaches these solutions don't stop are expensive to repair and also harm brand identity, which can lead to a reduction in revenue and even litigation.

There really is only one solution that can secure a credit union’s infrastructure as well as protect it from attacks originated at vendor portals. Credit unions should seek out a solution that uses artificial intelligence and machine learning to protect every endpoint in their infrastructure from not only malware that has been identified by antivirus software, but also malware that has never been seen before. Once their own infrastructure is secured with this technology, credit unions should insist their vendors do the same, thus securing their organization completely from over 99% of malware.

While credit unions definitely face some substantial challenges when it comes to cybersecurity, the technology already exists to secure their data – they just need to deploy it.

Photo via Pexels

My Translation Of Ben Franklin's The Way To Wealth

From 1732 to 1758, Benjamin Franklin published his Poor Richard’s Almanac that contained weather forecasts, practical household hits, puzzles, and other amusing writings. Franklin often filled the empty spaces in his almanac with wordplay and witty phrases, many of which are used to this day. Many of the most memorable phrases deal with being courteous, thrifty and self-sufficient.

In the 1757 version of the almanac, Franklin compiled his proverbs about industry, frugality and self-sufficiency into a prefix that took the form of a wise elderly man imparting the knowledge he gained from Poor Richard to a host of people waiting for an auction to start. This prefix was later published separately in a wildly popular essay called The Way to Wealth.

To this day, Franklin’s The Way to Wealth remains sage financial advice. The problem is that much like many of the old English texts, the essay is becoming less understandable to all of us slang-slingers with each passing day. Fortunately for you, I have taken some of my spare time over the past couple of months to piece together an updated translation that makes The Way to Wealth a much easier read.

Click here to read the eBook.

Photo by Maklay62 via Pixabay

Pick Your Moments, Take Stock, Then Take Action

That was an amazing year! There really is no other way to put it. I don’t mean to talk about the hot butter on my breakfast toast by any means, but I am truly hoping that each of you had the same fantastic 2014 that I did and are also looking at an even better 2015.

I know that each of us take moments in time to take stock – for some it is a day like December 31st or January 1st, for some it is a birthday, or an anniversary of some sort. While each new day can always bring new possibilities, we all know that these moments in time – these milestones – somehow make it easier or more poignant to reflect, take stock, and hopefully, prepare an action plan.

I, for one, am very thankful for this particular part of our human nature, though I will be the first to admit that there have been times when at these moments of taking stock I have not been better off, or necessarily happier, or maybe even better off financially than I was at the previous moment of taking stock. But, I will say this – I have definitely not let too many of these moments of taking stock pass me by without at least trying to make some type of change. I encourage each of you to do the same. By regularly reflecting and taking action, you will find that over time, you’re going to be happier and better off in so many ways.

While you can read the titles on my LinkedIn profile and clearly see that I don’t consider myself a life coach or a Tony Robbins of any sort, I do know that some of my greatest successes in life have come from simply observing and learning the course of action that others in a similar situation have taken, or not taken. For that reason alone, coupled with the fact that I know a large number of you are using today and tomorrow to take stock, I thought I’d share my method of reflection with you. There is nothing groundbreaking, nothing that you don’t already know yourself, but sometimes seeing it in writing can really help you get started. And, if I can humbly be a part of any positive change in anyone’s life by simply sharing my experiences, then I feel I am using my talents for good.

So, to break it down, there are only three steps: Choose your moments of reflection, take stock, then do something about it.

You can choose moments that occur annually on the calendar, such as your birthday, your wedding anniversary, etc., but I recommend that you conduct this reflection more often than just once a year. Maybe choose the first of every month, or the first Monday of every month, or find some reoccurring event in your life that can act as a great point in time for you to reflect.

Every six weeks, I get my haircut - like clockwork, every six weeks. My appointments are scheduled three deep and no matter what happens in the world and in my life, I know that if I’m still able to get out of bed in the morning and I’m still conscious, I am going to need a haircut. This makes it very easy for me to take a quick moment while I’m driving to my haircut, while I’m sitting in the chair, or at any time that day, really, to take a look at where I am and determine if I am better off that day than I was during my previous haircut. Find your haircut – find your regular rhythm with some regular event in your life and at every interval, you have a perfect opportunity to remember to reflect, take stock and then, take action.

Once you’ve chosen your moment, then every time it rolls around, you can take stock of the relationships in your personal life, the relationships in your professional life (including your job or your business), the relationship you have with your finances, or any other relationship in your life that needs attention. If you’re on the right track, this might not take long. It could be just a few moments of reflection to know that you’re in a better job than you were last year, or that there is more money in the bank this year than last year, or that there is less debt weighing you down than last year, or that you are closer and not more distant from the loved ones in your life. Granted, you may find yourself in a spot where some of these reflections are not going to be just a quick moment, but might take some actual in-depth thought and analysis. Either way, make sure that you take the time that you need to sort through what needs to be sorted out.

Lastly, once you’ve reflected, it is time for you to actually do something about it. Hopefully, you will find yourself in a spot where all you need to do is keep doing what you’re doing. Hopefully, you can just stay the course because everything is going great and you find yourself better off than you were at the previous moment of reflection, and hopefully, a number of consecutive previous reflection moments as well. But, if you don’t find yourself better off in any way, it is the perfect time for you to do something about it. It is as simple as creating a plan and then following through with it.

While it may take you a little while to get in the groove of conducting these regular reflections on your relationships, your career, and your finances, I can only suggest that you give it a try and see how it works out for you because those haircut moments have worked wonders for me.

Photo by David Mark via Pixabay

Three Million-Dollar Questions...

Senior Business Writer for LifeInc. on Today, Allison Linn, recently reported on a study conducted by the RAND corporation, USC, and the University of Michigan in which middle-aged couples were asked the following three questions:

•If the chance of getting a disease is 10 percent, how many people out of 1,000 would be expected to get the disease?

•If five people all have the winning numbers in the lottery and the prize is $2 million, how much will each of them get?

•Let’s say you have $200 in a savings account. The account earns 10 percent interest per year. How much would you have in the account at the end of two years?

Couples in which both people answered the questions correctly had an average net worth of $1.7 million, while couples where neither could answer these questions correctly had an average net worth of $200,000.

So, when you are out there searching for your lifetime mate, make sure you have these questions handy!

In case you need some help, the answers are: 100, $400,000 and $242.