Wise Bread

What I Learned From Working at a Bank

Janey Osterlind — Thu, 02 Sep 2010 15:00:05 +0000

My boss has asked me in my last two performance appraisals what I enjoy about my job and each time, I say that having this job will make me 10 times wealthier in my personal life. I don't mean that I'm making a ridiculous salary. (Maybe someday...) I mean that looking at borrowers all day lets you see all kinds of slices of life — and hopefully learn from them.

In the short time I've been at my job, I've seen all kinds of borrower financial statements: conservative borrowers and leveraged borrowers; those who got rich by investing in real estate and those who inherited money. Those who work for their parents' company and parents who work for their children. Here are some of the best lessons I've learned from working at a bank.

Don't buy a house you can't afford. Don't buy two houses you can't afford.

Don't roll your eyes at me; I know everyone is saying that in this economy. But I've seen people who have stuck their necks out even in this economy, thinking they could afford that jumbo home because their income would certainly increase in the future. Or their kids need a place in the country to enjoy while they're still young. Or they can sell when the market picks back up, make a profit, and get another nice place. It's never a good idea!

Those who are surviving and thriving in the long term are those who stick to the old rule of a mortgage that is 2.5 times their income or less, and 15-20% down. And that second home in Arizona you bought because it was a short sale? If you can afford to hold onto it, then fine. If not, well, as we say in my department: Hope is not a strategy.

If you make $1 million a year, at least have something to show for it.

No, I don't mean toys. Although they're fun, and awesome, and make you look cool, I can tell you when someone lists $450K of furniture and autos on their financial statement, I see a big fat Zero. That is, depreciating assets don't mean anything when it comes to your net worth.

Do me a favor: If you win the next $64 million lotto jackpot, at least keep a measly 1% or so of after-tax money in CDs or treasuries. I once saw a guy who made nearly a hundred million dollars in one year, who had about $24K in cash. True, he could have been lying on his statement, but really? How nice would it have been if he saved 10%, especially because he lost nearly that same amount the next year?

Don't bet the farm.

This one is a little heartbreaking, but I see it all the time. Tom has had a small, successful restaurant for 25 years. He makes, say, $100K per year. Not a bad deal. But Tom sees others making oodles of money in real estate investing, so he puts two and two together and decides to build an enormous, gourmet restaurant in the next town over. Then he can double his business and own his own piece of investment real estate! He proceeds to build his $5 million restaurant, using all of the $300K he's saved for retirement, pledging his house as collateral on a bank loan and borrowing $1 million from friends and family.

You can guess what happens next. Unless Tom's restaurant does phenomenally well (which restaurants never do), he's DOA. He has lost everything, including his retirement, his house and probably his friends and family. (Side moral: Don't invest in deals like this, people!)

Calculated risks are OK. Investing your retirement money in a well thought-out venture when you're 30 is OK. Pledging your house as collateral on a loan is OK. All of these things separately is OK, but not all at once. You have nowhere to turn, and I see it all the time. I've even seen parents pledge their homes as collateral on an adult child's loan. It goes bad, and grandma and grandpa are homeless in retirement.

So there you have it: the top things I've learned from working at a bank thus far. Although I'm amazed every day at the poor financial choices some people make, let me be clear: I see at least as many (and probably many more) who make great decisions and grow their net worth year after year. With a host of examples, now I know how to avoid the pitfalls, too.

Seen anything similar in your own experience? Share your story!

What Does Being Rich Mean to You Anyway?

David Ning — Thu, 02 Sep 2010 14:00:07 +0000

Money Magazine had an interesting article in the September 2010 issue titled "Do You Have What It Takes To Be Wealthy?" The article comprised of 15 questions aimed to tell you if, indeed, you have a good chance to be rich. I aced it (if you consider having a solid chance of being rich a good thing, that is), but what is the definition of being wealthy anyway? Is it just a number we call net worth? Or is it something else all together?

I was given a tour the other day of a $6 million dollar home. Apparently, the owner bought the piece of land for $4 million and spent $10 million building the custom house on the site. The property was gorgeous (duh!), but the owner couldn't have lived in it for more than three years and he lost $10 million in the process after considering not getting his asking price, agent fees, etc. when it's all said and done.

When you have that kind of money to lose, are you considered rich? (By the way, for those concerned, the owner moved to an even more expensive neighborhood, so this is not one of those overextended home borrower stories.) Miranda started an interesting discussion asking whether you are rich. She claims that your location and personal situation matters a great deal when it comes to the financial portion of the definition of being rich, but I believe it's more than that. I'd argue that being wealthy is much more than having, or earning a specific dollar amount.

Not Worrying About Money

This is much more than having a ton of money. Not worrying about money is more about the ratio of your spending and expectations versus your assets. Some people don't have enough with $12 million, but others can retire comfortably with much, much less. However much money you have, you cannot be wealthy when the worry of money is always on the forefront of your mind.

Having Loving Family and Friends

You might have money, but you aren't rich if you don't have anyone to spend it with. Being rich is also having someone to share your joy and sorrows, and it's having someone to have spend time with too. When you need a shoulder to cry on, can you actually buy one?

Having a Sense of Direction

You can have all the money in the world, but it's very difficult to enjoy life if you don't have a sense of purpose. We talk about finding a passion all the time, but to be quite honest with you, most people never listen. Some are simply too afraid to change their depressing jobs, they are too lazy to repair broken relationships, and they are too proud to admit their mistakes so they can start over. First of all, I don't think these people will be able to maximize their earnings power this way. Even if they could, how does having a bunch of money with a miserable life make them wealthy?

Being rich requires money. There is no doubt about it. But it's much more than that — so much more.

How to Get a Life: Consider the Worst Case Scenario

Craig Ford — Thu, 02 Sep 2010 13:00:12 +0000

There is something that drives everything we do.

Some actions are driven by love. Others motivated by hate. Money can get most of us moving. Some act based on their religious beliefs.

The Purpose Driven Life reminds us that some are motivated by FEAR. And I believe it. As a minister, I've had the opportunity to peer into the psychological depths of many people. I've seen their raw emotions. When the masks are removed, fear controls much of what we do. Fear poisons us until we are too paralyzed to act.

You are paralyzed by fear when …

You won't pursue a small business idea because you're afraid that it might not succeed.
Despite the encouragement of co-workers, you're afraid to apply for a new management position.
When you close your eyes, you dream about traveling the world, but you're afraid of what others will say.
You've always wanted to try out for the next dramatic production, but you're afraid you won't get the part.

In life, we are often afraid to do truly courageous things because of what might happen.

It might not go according to plan.
I might not make money.
I might lose my job.
I might not get the job.
My friends might not support me.

Today, let's learn one simple life hack that will allow you to really, truly, start living life.

When making an important decision, ask yourself, "What is the worst case scenario?"

Now, I'm not talking about psychological mumbo-jumbo where you try to convince yourself you can do things that you really can't. Nor am I talking about apocalyptic bad news where the worst case scenario is that aliens from another planet might come and eat you for dinner. Literally and logically, what is the worst case scenario that is likely to result from your actions?

Start Living Life Homework

Get a pen and paper and write one of your life goals or something you've always wanted to do at the top of the paper.
Then write this subtitle, What's the worst case scenario?, and list all the things that could possibly go wrong if you pursue that goal.
Write a number from 1 to 10 beside each listed item. Write a '1' if the worst case scenario is not really likely at all to happen. Write a '10' if it is almost certain to happen.
Now imagine that everything ranked 3 and up actually did happen. Would you regret your decision? Would you do it again?
If your answer is yes, then do it.
If your answer is no, start making whatever changes or adjustments are necessary so that you can soften the blow of a worst case scenario.

Case Study #1: Can mommy afford to stay home?

Sally and her husband, Greg, have a 6-month-old baby, and Sally really wants to stay home with junior. The problem is that they are afraid they won't be able to pay the bills if Sally stays home. If they were able to cut their spending and Sally could earn an extra $300-$500 per month, they would be fine. They have a reasonable financial cushion of $5,000 savings, but they are paralyzed by fear and afraid to do what they really want to do.

What's the worst case scenario?

Sally might not find a way to work from home. She might not like staying at home. The family might not be able to cut enough expenses.

So? If she stays home for six months and doesn't find something she can do from home, then she can just go get another job.

Cast Study #2: Start your own small business.

Tom has been slowly developing a computer software program. The program is selling well and providing a reasonable profit. He'd love to quit his full-time job and focus on building the business, but he's afraid. What if business doesn't pick up?

So, what's the worst case scenario? The business doesn't pick up and Tom is forced to go back to work and finding a part-time job.

Fear As Positive Motivation

For those who face this kind of fear, perhaps you can use your fear to your advantage. Take that fear and use it to help distance yourself from the perceived risk. Increase your emergency funds savings. Spend an extra three months working full-time and part-time to give more cushioning. Jumping off a cliff is very different from jumping off a curb. The less risk, the more likely you are to succeed.

Still, far too many people are driven by fear and let the world pass them by while they watch from the sideline.

Throwing caution to the wind is not the advice here. Typically, those who are the most fearful are those who are most cautious. They don't need to be encouraged to retreat further into their shells, but to take a risk to do what they love. If the worst case scenario is truly frightful, then don't do what you're considering. So, if the worst case scenario means your best alternative is declaring bankruptcy in two months and you'll lose your family in the process — don't do it. But many times, even if the worst did happen, we'd still be glad we took the risk.

Do you think this is good advice or just likely to cause a bunch of people to crash and burn? Is there anything you've been wanting to do, but you know it's just fear that is holding you back?

Is GDP Still Important?

Jabulani Leffall — Thu, 02 Sep 2010 12:00:12 +0000

Every pundit, politician, and economic forecaster (even smarmy financial dilettantes such as myself) have remarked that the recent recession was the worst economic calamity since the great depression.

It's a very dramatic, historic and urgent thing to say — something that you want to have on record that you said — if for nothing else than to be part of history.

Yeah, except it's dead wrong, in a manner of speaking. How would we know whether this past recession is actually the worst recession since the Great Depression? The measure of what is or isn't recession, Gross Domestic Product (GDP), wasn't even invented and implemented until after 1941. And wouldn't you compare it to other recessions, and not to the Great Depression, when there was no SEC, no Social Security, no FDIC no HUD, etc. back then?

So why is GDP so important? Or is it even important anymore? One critic of GDP, Alan Atkisson, even goes so far as to call GDP the "Manhattan Project of Economics."

I wouldn't resort to nuclear and apocalyptic allusions, but I will say that perhaps it's time to reevaluate how we measure economic growth and how we psychologically mind-bomb people by telling them that if there is no GDP growth they have to get scared.

In a nutshell, GDP measures economic growth based on production and consumption of goods and services, or to be more accurate, it is a measurement of "final goods and services officially made" quarter by quarter through a full calendar year.

I asked a friend, a former investment banker for Goldman Sachs and other institions, what he thinks of GDP. He said, "Ask yourself what we're 'officially making' in this country right now and you have my answer."

Elaborating further, he said the formula for GDP is flawed and has outlived its usefulness: Private consumption + Government Spending + (Exports-Imports).

What does that equal? Well in typical I-banker vernacular which I won't repeat here, he said the country, based on this formula of measuring economic health, is headed for the same fate as a nut or bolt twisted and fastened to a wall.

Alternative Measurements

Since I'm a solutions-oriented man, I won't spend the whole post whining. In that vein, there are three upstarts that could, should, or might make a run at the shiny title belt GDP now holds around its bloated consumption-dependent waist.

The Index of Sustainable Economic Welfare: Expenditures balance against mutually-assured environmental destruction.
The Genuine Progress Indicator (GPI): Production growth that actually demonstrates the betterment of human beings.
The Happy Planet Index (HPI): Are we happy with our stuff? Is killing the planet and contributing to standard of living inequities actually fulfilling in the long run?
Gross Personal Product (GPP): All of the stuff that we buy: plastics, deliberate obsolescence polymers, and really gross food packages that aren't biodegradable. Oh, and the sticky oil from the Gulf of Mexico — ewww, grosssss.

OK, so the "GPP" is something that you saw here first and exclusively (maybe) — I made it up. But doesn't it start with our personal attitudes? Are you tired of having your homeland measured by cold, impersonal, flawed statistical comparisons? What makes you happy: what you produce or what you consume?

I now leave you with the words of Simon Kuznet, commissioned by the State Department to study political economy in the late 1930s and early '40s and often considered the inventor of GDP. (Ironically, he then essentially said in the 1960s, "don't use this measure.")

Distinctions must be kept in mind between quantity and quality of growth, between costs and returns, and between the short and long run. Goals for more growth should specify more growth of what and for what.

With pressing environmental concerns and an unsustainable economy based more than 70% on the consumption of stuff — more than 90% of which we basically don' t need — those "distinctions" that Kuznet spoke of are what we have to figure out as individuals and as a nation.

Best Money Tips: Anatomy of a Coupon

Linsey Knerl — Wed, 01 Sep 2010 15:49:04 +0000

Best Money Tips roundup. Today, we share the anatomy of a coupon, how to clean your work laptop before you leave your job, and how to pick the very best airplane seat!

Downsizing With Kids

Sonja Stewart — Wed, 01 Sep 2010 14:00:18 +0000

Hi. My name is Sonja, and I am crazy.

Now that you know, I can tell you that my husband and I are selling our modest cottage on half an acre to move onto a sailboat with our two small children. Most people aren't downsizing nearly as drastically as we are, but it got me thinking: Quite a number of people are, in one way or another, moving out of larger homes for smaller homes. Quite a lot of these people must have children as well. And as I come up with the solution to the first question people inevitably ask me, “Where will your kids play?” I'd like to pass on the solutions I've been contemplating.

1. Dump the Junk

If your kids are anything like mine, they could do with at least 50% less toys. Make it 75%. Go through the toys, clothes, shoes, and incidentals and have yourself a garage sale. Better yet, see what those toys are going for on eBay. For bigger furniture items, Craigslist will typically get you more cash than a garage sale. Take the cash you get and put it towards a Netflix membership or some small portable play options like video games.

2. Make Friends

This one is a lifeline if you're going to be living in cramped quarters with in-laws. Join groups, get active in the community or a local church and spread out, socially. Visiting with friends, having dinner at someone else's home, or having your kids play in someone's backyard will ease the loss of space and/or land you've had to sacrifice. Plus, it's great to have someone to talk to when things get tough.

3. Use What Your Community Offers

Seriously research parks and recreation and your local library for activities that are offered throughout the year for free or very low cost. It's a great way to feel connected within your community, and it gives your kids things to do so they don't talk so much about how hard it is to share a room with their baby brother.

4. Get a Family Pass

Use any cash you may have saved in the downsize to put towards a family pass. Look into children's museums, the zoo, theme parks, local swimming pools — whatever appeals to your kids the most and fits your budget. If you're out of work, ask about scholarships. Many places will give serious discounts. All you have to do is ask.

5. Look for a Community Garden

If you're missing your yard, look for a community garden to plant some greenery. If there isn't one, maybe you're the person who can organize it and get it started. Go in front of the community council and bring your kids while you propose a local garden. Not only will you be able to get involved, but you'll be teaching them the value of seeing a need in the neighborhood and filling it. Some community gardens donate a portion of their vegetable harvest to local food banks.

6. Volunteer

While I'm on the subject, the quickest way to get out of a funk is to do something nice for someone else. If you find yourself cramped, cranky and cantankerous, take the kids and go to an elderly home. Ask the front desk if there's anyone who needs a visit, or if they could use any help. Again, this is a great opportunity to teach your kids the value of reaching out. And who knows, you may walk away with another valued friendship.

Downsizing usually happens because life throws us a curve ball. A divorce, sudden death, a job loss, or even having to move in to care for an ailing parent can cause stress on a family. It makes for some very tough choices. Keep the books, leave the stuffed animals. We had to give our precious black lab away (which was much harder on me than the kids).

The best lessons in life aren't easy. Compassion, empathy and resilience can only be learned through tough times. It's good to keep that perspective as we watch our kids getting what's really important. And that doesn't include your own room complete with a princess-themed bed. Sorry, Josephine.

If you have any ideas that have worked with your recent downsize, I'd love to hear them.

Why Going to the Gym Is a Waste of Money, Time, and Resources

Carrie Kirby — Wed, 01 Sep 2010 13:00:18 +0000

I noticed this morning that I have gained five pounds. Conventional wisdom says it's time to shell out to join a gym, or if I want to save money, dust off that jogging stroller.

But what does conventional wisdom know? A recent article in Time magazine points out that our belief that exercise is essential to weight loss is a recent development, and — this shocked me — not well supported by research.

That's right: For most people, exercise is useless for weight loss.

It sounds like complete crazy talk, yet the article cites solid-sounding research and academic experts saying just that. One recent study looked at overweight women, some of whom were assigned to work out with a trainer for different lengths of time, alongside a control group that did not work out. They didn't change their eating habits. All the groups on average lost weight, but the women who worked out did not lose significantly more than those who didn't.

What's going on?

The study's authors cite "compensation." That is, working out makes you hungry, so you eat more. You also might move around less for the rest of the day after you work out. The article also points out that most people overestimate how much food they can indulge in before they have consumed more calories than they just burned in their workout.

This would explain something that has baffled me since chidlhood: The overweight mail carrier. My dad delivered the mail as a kid, and I never understood how many of his colleagues, even though they were on walking routes, not driving routes, could have such big bellies. The answer, apparently, is that being out on that route all day made them very hungry.

All this leads me to think about the growing emphasis on "being active" in America right now, coming from everyone: from the schools to the scapegoats of childhood obesity, like children's television and McDonald's itself. The hope on McDonald's part seems to be that society will be OK with kids consuming their megacalorie meals as long as they do some jumping jacks first.

Look at the great amount of resources expended for the cause of physical fitness already. While I am not disputing that it's unhealthy to be sedentary, the experts quoted in this article contend that the kind of free exercise that we have traditionally incorporated into our day is just as healthy as organized sports for kids and treadmills for adults.

The article even quotes the head of Harvard's Prevention Research Center on Nutritional and Physical Activity wondering if the whole McDonald's playground idea was a ploy to get kids to eat more.

"I know it sounds kind of like conspiracy theory, but you have to think, if a kid plays five minutes and burns 50 calories, he might then go inside and consume 500 calories or even 1,000," Steven Gortmaker told Time.

Once I started thinking about it, I realized that working out is expensive in many ways. It might be worth it (at least for some people) if it increases your overall sense of well-being or prepares you for an activity you enjoy, like touring cities on foot or climbing a mountain. And of course, many if not most people who work out do it so they will look better and be more attractive than the gym rat on the machine two rows over. But in order to decide if something is worthwhile, you should take an honest look at what it costs.

Gym Fees

The most obvious, and most avoidable, cost of fitness. For those who have joined the extreme home workout trend, those 30 Day Shred and P90X DVDs ain't cheap either.

Time

This is a major one for parents of small children like me. If a leisurely walk with my children is as good or almost as good for me as an hour at a gym with them in the daycare, I'm unlikely to choose the latter. And with my husband already away from the kids for 10 hours or more on a weekday, does it make sense for him to use one of the remaining hours at the gym?

Increased Calories Consumed

People who work out for weight loss set out to burn calories they won't be replacing. But it doesn't usually work out that way, simply because our bodies are programmed to prevent that from happening. And what about people who work out to build muscle mass and intentionally increase their caloric intake to help build it?

I recently saw an exhibit at the Museum of Science and Industry showing everything various Chicagoans ate in a day. One was an iron-pumping construction worker who consumed something like 12,000 calories, much of it protein. He obviously felt that the cost of purchasing all that extra food was worthwhile, but in a world where we are increasingly conscious of the environmental toll of food production, is it really sustainable for some people to consume six times as many calories as are needed for healthy survival?

Injuries

With all the talk about how healthy it is to stress your cardiovascular system, but there is little talk about the increased risk of injury that occurs when one switches from a brisk walk to lifting weights, running, or participating in sports.

As for those five extra pounds I'd like to shed, I'm now planning to cut back on the ice cream and walk my next errand rather than drive it, rather than set aside time for a daily workout. I still plan to join a local gym once my baby is a little older, but mainly because it offers a fitness activity that I truly enjoy: indoor rock climbing. After reading that article, I am a lot less likely to force myself through any fitness routine that I loathe in the perhaps unrealistic expectation of great weight loss and health benefits.

For those who work out in an organized fashion, do you feel that the benefits exceed the costs?

This post contains affiliate links to Amazon.com, which will surely increase my sense of well-being if you use them to shop.

Prizes and Freebies from CoupSmart for the iPhone

Linsey Knerl — Wed, 01 Sep 2010 12:01:09 +0000

I don't usually brag about smartphone apps. There are a lot of really great money-saving iPhone apps out there, but it is truly a matter of personal taste as to which ones are absolutely a "must" to download. This week, I discovered a new app called CoupSmart when a reader alerted me to the fact that they had won $200 just for using it. When I heard this, I had to check it out. Here's the scoop for anyone else who's interested.

What Is CoupSmart?

CoupSmart is a simple, free download available only for the iPhone at the time of this writing (although plans are in the work for an Android and Blackberry compatible version). After the quick download, it asks for a brief registration (which can also be done online at the CoupSmart website). Now comes the fun (and tricky part): You can start scanning the UPC codes on the products you have in your home.

The premise behind scanning your products is two-fold: The CoupSmart company can get insights into the products you purchase for the purposes of free market research, AND you are also giving them information about what items you really like so that future offers and free samples will be relevant to your tastes. By scanning items with the CoupSmart tool, you are giving them permission to send you samples, offers, and enter your name into regular prize drawings. Considering that you are giving away the same information every time you sign up for a sample or offer online, this isn't a bad deal according to their Terms of Service. (And at the time of this writing, they were giving $5 away to the first 3,000 to scan 30 items.)

How Does It Work?

Scanning can be a bit difficult to get the hang of. Using your phone's camera function, you attempt to line up the edges of the bar code within the little target on your phone's screen. This is not an exact science, and you may find yourself moving your phone closer and then further away in an effort to get the code recognized. (The site recommends that you are in good, even lighting, as this can play a part into how well the code scans.) Once the code is lined up correctly, the prompt on the screen will turn green, telling you to hold still, and the phone will "beep" once the code is captured. There is no need to button-push.

Note: I've also found that several types of bar codes scan better than others, so if you are in a hurry, follow these additional tips:

Avoid shiny surfaces, except in low light. Reflection from the surface can distort the code, making it impossible to capture.
Plastic overwrap can be difficult, as well. Bread bags, for example, must be smoothed out on a flat surface for the best possible chance of getting the code captured.
You might assume that boxes with a matte finish are easiest to scan — you're right! If in need of a few codes fast, head to your medicine cabinet for boxes of bandages, cold medicine, etc. They work well!

What Can You Get?

Once scanned, the code will take a few moments to process. The application will tell you what you just scanned (ground coffee, for example) or it will say that the code wasn't recognized. Either way, you get credit for the scan, and at 45 codes, you'll earn an entry into their monthly, quarterly, and annual prize drawing. In addition, you'll earn samples and gifts. You can check the site to see which samples or offers are available to you, but in my case, I just got an email alert that I won a gift card, with no description. Then a crisp $5 bill came in the mail a few days later. (This "prize" was for the first 3,000 to scan 30 codes and was in addition to the large monthly and quarterly drawings.)

The pros of this program are many. Scan stuff quickly to get prizes and samples — they do come!

The cons are simply that I'm not fully aware of how they calculate incentives. While entries into the drawings are easy to understand, I don't know how often the free samples come or whether they are any good. Also, as more people sign up, the odds of winning could go way down, OR they could begin offering better prizes — I'm not sure how it will work.

Have you been a user of CoupSmart? Can you share your experiences with us?

*NOTE: CoupSmart contacted us with the following clarifications to our article. (Thanks!) "We actually have an even better program for our monthly giveaway of ten $200 Visa gift cards; you actually just need to scan 30 items, instead of 45, to earn an entry, and you can earn as many entries as you want providing you don't run out of items to scan around your home."

Ask the Readers: If You Could Have One Wish (Chance to win $20!)

Linsey Knerl — Tue, 31 Aug 2010 15:28:54 +0000

I often get emails from readers who tell me about their financial situations. Some are challenging, while others are heartbreaking. I have a hard time knowing what to say, and more often than not, it gets me thinking about what I would do if I had the power to do anything. What if you have a financial fairy godmother or your penny in the well really made your dream come true? What if you could be granted one financial wish? What would it be? How would it affect your life (or someone else's)?

We want to know what you would wish for. Would you ask that your financial loan be paid? Is there a job that you really wish you could get? Perhaps you have a mountain of medical bills that you want so badly to disappear. What is your most longed-for financial wish? Let us know your thoughts in order to be entered to win one of three $20 Amazon gift cards! Feel free to link to a blog post, if you've written on this topic! We'll include it in our post upon the conclusion of our giveaway!

We understand that dreamers aren't doers, but once in awhile, it's nice to imagine...isn't it?

Win one of three $20 Amazon gift cards:

We're doing three giveaways — one for random comments, one for random Facebook "Likes", and another one for random tweets.

How to Enter:

Post your answer in the comments below, or
Go to our Facebook page, "Like" us, then "Like" the update mentioning this giveaway (you can comment, as well — but you don't have to for entry.)
Tweet your answer. Include both "@wisebread" and "#WBAsk" in your tweet so we'll see it and count it.

If you're inspired to write a whole blog post OR you have a photo on flickr to share, please link to it in the comments or tweet it.

Giveaway Rules:

Contest ends Monday, September 6th at 11:59 pm CST. Winners will be announced after September 6th on the original post and via Twitter. Winners will also be contacted via email and Twitter Direct Message.
You can enter all three drawings — once by leaving a comment, once by liking our Facebook update, and once by tweeting.
Only tweets that contain both "@wisebread" and "#WBAsk" will be entered. (Otherwise, we won't see it.)
Only those who have "Liked" both our Facebook page and the contest update will be entered.

Good Luck!

4 Ways to Bug Your Boss for More Money – and Get It!

Linsey Knerl — Tue, 31 Aug 2010 14:00:08 +0000

Everyone knows we're in a recession, but let's face it: You may deserve to get paid much more than what you're getting now! Before you blow off the idea that your work is worth a bump in the pay scale, check out these four clever tips for putting in a good word about your worth.

Wrangle References

This is an area where having an effective networking style can really pay off. Asking your current customers, co-workers, and colleagues for a few kind words about your performance isn't just useful during a hunt for new work. It can be a powerful tool in moving up your current career ladder, as well. You don't have to be transparent in your reason for asking; a simple "Would you mind sending an email with your thoughts on our working relationship?" will do. Save the best in a file to arm yourself with at your next performance review or compensation discussion.

Research Rates

Some companies are large enough to set their own industry rates — and get them. Others are completely oblivious to what someone in your position should be making. If you've caught wind that your job tasks are on par for the course of a higher-ranking (and higher-paying) position, bring this up to your boss. Explain that you realize that they may not have the cash to pay the going rate for someone with your expertise, but would they meet you halfway?

Value Added

Often, it's not about what they hire you to do that matters. If you are especially well-connected, possess a task or skill that puts you at a unique advantage, or have a willingness to perform beyond your peers (24/7 availability, maybe?), it's something that you should be paid well for. Demand that you get compensated for this value by letting management know how much they are getting!

Show Them the Money

For many companies, it's really just about dollars and cents. Did you save the company $X over last year? Would a process you helped to develop bring in extra money over time? What's the bottom line of your individual worth to the company? If it's well over what they are paying you, now's the time to document and sell your potential return on investment (ROI) with examples of how you can continue to grow in value.

Once you've gotten the OK to discuss a pay raise with your boss (in the form of a performance review or other scheduled meeting), come prepared with facts for each of the four methods above, and be sure that there are no outside distractions that could derail your attempts. Be confident, make positive forward-thinking statements, and never apologize for your request for more cash. Remember, you're worth it — now it's time that your boss knew, too!

How to Win the Lottery Without Paying a Penny for the Ticket

G.E. Miller — Tue, 31 Aug 2010 13:00:08 +0000

What would you do if you won the Lottery?

That's a great question. One that we've ALL fantasized about at least once and probably have let our imaginations go wild in at least one conversation with friends or family. I'm not talking about scratch and win lotto tickets here. I'm talking about the big kahuna.

I'm talking about the SUPER MEGA GIGANTIC POWER BALL EXTRAVAGANZA!

You're probably in the stark minority if you haven't at least played that game once. After all, it's completely justified! You could, no, you should be that 1-in-500,000,000 because you've worked hard your whole life and nobody deserves it like you do — so what's another dollar, or two, or five?

Let's get back to that dream for a second...

The Lottery Dream Fantasy

When we have our lottery fantasies, the conversation often revolves around what we would buy. It might look something like this:

My custom dream house
A Ferrari and a pimped out Escalade
That sailboat that I've always wanted
A butler (is Mr. Belvedere looking for work?)

And if we fear we're starting to look a little self-centered in our discussion, we might throw in a few things like...

A college education for all of my grandchildren
A new house for my parents
I'd give a big chunk of it to charity

The Financial Freedom Dream

In a lot of cases, the dream simply boils down to:

I'd do nothing
I'd pay off my debts
I'd live off the interest
And I would never have to work for anyone else again

On the surface, that sounds great, right? Then why do so many retirees who could comfortably live off their pension or other retirement savings choose to keep on working? They've earned their Lottery ticket, damn it!! Be lazy and go enjoy the precious little time you have left!!

They keep working because they like what they do, or they like what it does for them. They might get paid, they might not — but they are still active and productive members of society. They are not sitting in their gated mansion in a dark room counting their dollars.

The Lottery Trick

The reason many of us get suckered into the Lottery fantasy and buying those tickets is because we've bought into the dream. But can all that money and the resulting "stuff" that you buy really bring you the happiness that you're hoping for? Probably not. Countless studies have show that those who are rich are not any happier then those with lesser means, so we should know by now that the "stuff" will not buy us happiness.

And we should also know by now that those who can afford not to work for others and end up doing nothing with themselves usually end up being miserable as well.

But financial freedom and the choice to actively do what we want with our lives? Sign me up for that.

Here's the thing. You don't need a lottery ticket to buy you that. You need to adapt to a lifestyle that will permit that. A lifestyle that results in your making more money than you are spending (and hopefully putting a little bit away for later in life when you aren't physically or mentally able to continue working). And the less you spend on lottery tickets and buying into that false hope, the more you can save and focus on buying your freedom.

5 things you can do today to start buying your ticket

Admittedly, these are as simple as they can be, by design. Realistic goals that we all can accomplish with a little work.

Make more than you spend.
Pay off your debts.
Spend your time doing what you enjoy doing and get paid for it if you need it.
Be kind and helpful to others.
Remember this: You only live once. So live that way.

Accomplish all five and it might just make those Lottery tickets a little less appealing.

6 Reasons Why Cash Is Still King

Kentin Waits — Tue, 31 Aug 2010 12:00:04 +0000

Lately, I've noticed more and more credit and debit cards being whipped out for transactions large and small. It's as if cash is becoming a rarity and folks don't even have $4 of the green stuff on them for a latte anymore. When I have dinner with friends, I sometimes long for good old paper money at that critical moment when the check arrives — wallets open and out come four or five different (albeit attractive and shiny) plastic cards. The result is as universal as it is tedious: cards are swiped, tips tallied, PINs entered or signatures given, duplicate receipts divided and dispensed, etc. I've refinanced homes in less time than it takes to settle the tab for a group dinner lately.

Cash seems to be on its way out, becoming merely a vestige of a simpler, more direct economy. As one of the few hold-outs who still pay the old-fashioned way, I'd like to offer the following secret and not-so-secret reasons why cash is still king.

1. It's Universal

Cash is accepted everywhere. Big chains, small mom-and-pop shops, malls or estate sales, cash is still the most direct and universally-accepted way to pay.

2. It's Quick

I don't quite agree with what the ad industry wants us to believe. Credit cards and debit card transactions take more time in most cases than having the appropriate amount of cash in hand. I've been in line behind too many folks who can't quite figure out what direction to swipe their cards, where to input their PIN, and which toe to tap while their bank is contacted for approval. Granted, it may be only seconds, but if we're looking at speed, seconds count.

3. It's Influential

Nothing speaks more clearly and directly as pulling out the greenbacks when you want to buy that used car or vintage guitar you found on Craigslist. The immediacy of cash lends itself to a bit of negotiating power, whether you're buying used or new. Even larger stores prefer cash to avoid fees that are part of most merchant credit card agreements, and that preference can often give the buyer a rare bit of leverage.

4. It's Anonymous

I don't lean toward conspiracy theories, but I do think our lives are less private than we'd like to believe. What, when, and where I buy is my business. Cash typically helps ensure that my transactions are lost in beautiful anonymity.

5. It's Simple

Credit card companies win in two ways every time you make a transaction. First, they're paid by the merchant to have a license which allows that store to accept your card. Merchants charge that fee back to all of us via a slight uptick in prices. Next, the credit card company charges you interest on your purchase if you fail to pay off your accumulated balance in full each month. And for all their trouble collecting fees left and right, credit card companies end up with loads of data about our buying history and purchasing behavior. What a deal!

Debit cards aren't much better — same vendor charges but replace those interest charges with overdraft fees unless you're on top of your game. Cash, on the other hand, supports no such fee structure. There is a single transaction with no secondary charges or supporting transactions that serve only to make guys sitting in glass offices a bit richer.

6. It's Direct

Cash is self-limiting and direct. If I start out the week with $200 in my wallet, I can toss every receipt I get and put my checkbook on ice and still know down to the dollar what's left in my budget in just a few seconds (no smart phone or computer required). Cash is tactile. It always works in real-time and seldom carries a "gotcha" at the end of the week.

I'd be naïve to suggest that credit cards, debit cards, and even checks don't serve a valuable purpose in certain situations. If you need a record of large transaction, are seeking reimbursement for multiple expenses, traveling where currency conversion is an issue or fear cash being lost or stolen, then certainly embrace other more appropriate methods. But for the day-to-day business of life, cash still offers a flexibility, immediacy and influence that can't be beat by plastic.

Best Money Tips: 7 Worthless Excuses for Not Saving

Linsey Knerl — Mon, 30 Aug 2010 14:35:26 +0000

Welcome to Wise Bread's Best Money Tips roundup. Today, we destroy all those lame excuses for not saving, help you shop for a laptop, and give you the facts behind MLM opportunities.

How to Build Your Own Trigger for Happiness

Henri Junttila — Mon, 30 Aug 2010 13:00:06 +0000

What would you say if I told you that you could build a button that, at a push, instantly floods you with the feelings of your choice?

It sounds incredible, but it is possible and anyone can do it. All you have to do is build an anchor, which simply means that you have to do something (almost) each time you feel joyful or at peace. Later, you can invoke that same feeling at demand.

I learned this from Neuro-Linguistic Programming, or NLP for short. It's excellent for getting motivated, summoning courage, or whatever you may think of. You can modify it to your own desires. Keep reading and I'll show you how.

Step 1: Build Your Anchor

When I attended a seven-day NLP workshop a few years ago, I learned that your anchor has to be something easy, but not something that you accidentally do.

For example, one of my anchors is wrapping my left index finger and thumb around my right wrist. It can be anything really, but I've found that physical anchors work the best. The way I build my anchors is to touch my right wrist whenever I'm feeling the feeling I want to invoke later.

In the beginning, I also did some simple visualization. Let's say I wanted to create an anchor of happiness. I would simply visualize something that brings me joy, such as being with the people I love or doing what I am passionate about, and I would touch my right wrist.

Step 2: Reinforce Your Anchor

As you're building your anchor, the more you reinforce it, the stronger it becomes. You can look at it as training a muscle. The more you do it, the stronger it becomes. There are many ways you can build anchors. In this article, I am going through the simplest form I know and one that works for me.

Your only mission is to touch your right wrist (for example) whenever you feel happy (or the feeling you want to invoke).

Simple, right?

Step 3: Use Your Anchor

After a short while, you can start using your anchor, and you will feel a surge of happiness come into your body whenever you do.

We are affected by anchors all the time. For example, how do you react to a specific tone of voice that your mother or father uses? That's an anchor. What about when you see your favorite type of food in a magazine and you start to drool? That's an anchor. And when someone hugs you, and you feel awesome? That's an anchor!

These are all anchors that have been created unconsciously, so why can't you create a few really awesome ones yourself?

Summary

It really isn't that difficult. I'll sum things up for you anyway, just in case you need a refresher:

Determine what feeling you want to be able to trigger on demand.
Determine your anchor. (Mine is touching my right wrist.)
Visualize, feel great, and use your anchor.
Use your anchor whenever you genuinely feel the feeling during the day.
Reinforce your anchor as much as possible.
Enjoy!

It really doesn't get any simpler than this. Remember that you create anchors all day, every day, so you might as well take matters into your own hands.

Guest Post Blurb:

This is a guest post by Henri Junttila. Read more by Henri at his blog, The Wake Up Cloud:

Do You Own a Domain Name That’s Worth a Fortune?

Paul Michael — Mon, 30 Aug 2010 12:00:09 +0000

Chances are, many of you reading this already own a few domain names. At around $8 a year these days, they're cheap enough. I own several, usually because I have a "bright" idea that I think would make an awesome product or website and snag the domain name before someone else does. Then it sits there gathering internet dust.

Many people do the same as I do, and then forget about those websites. The option to auto-renew makes it very easy to sit on a website name for years and not even remember that you own it. And some of those domains can be worth hundreds of thousands of dollars. Even millions.

A highly publicized example of this was the sale of the domain name sex.com a few years ago. That particular domain name sold for $14 million dollars! That was clearly going to be a very popular web address considering the amount of money the online pornography industry is worth. I am by no means suggesting you go out and buy smutty web addresses, by the way. No, there is money to be made from any web address if the right person is in the market for it.

A friend of a co-worker of mine recently sold a domain name he bought back in 1994. He received over $100,000 for it. Not bad for an $8/year investment. Do a little searching on the internet and you can find many examples of this. But how do you know if you have one of these domain name goldmines?

Well, first, use a little common sense. If you look into your archive and see a domain name that is a short, popular word, it's going to be valuable. Three-, four-, five-, and six-letter word domains are generally very difficult to come by these days. If you have one, consider putting it up for sale. An auction site like sedo.com is a great way to sell off your domains, minus a small percentage for the service.

Next, remember that .com addresses are still the most sought after. The .info, .tv, .net and .org addresses can still be worth a ton of money though, so don't rule them out. But generally speaking, .com is where the money is.

If the domain name you own isn't obviously popular, it still doesn't mean it's not valuable. You could have a made-up word like "plunty" or "gigazig," and although it's meaningless, it could be the next Napster or Starbucks. If you put it up for sale, you may be surprised to find that a startup business wants it.

There is also a growing business in domain name speculation. This is NOT cybersquatting, which is buying a domain name with the bad faith intent to profit from the goodwill of a trademark belonging to someone else. For instance, buying nikeshoes.com and waiting for a big fat check from Nike.

This is speculation, pure and simple. You buy a domain name that's free and hope that someday you can sell it for a profit. For instance, I could see if "gigazig.com" is free, and if it is, I could snap it up. It will probably be worth nothing for many years, but hey, you never know. For a while I owned "goalfrenzy.com," which was going to be a website dedicated to the best goals from soccer matches around the world. Of course, I never got around to creating the site and the domain name expired. Who knows, though. If I held on to it and a magazine or TV show appeared called Goal Frenzy, then that domain would now be worth cash.

So, if you have a few domains sitting around doing nothing, go and check them out. Maybe you're sitting on something that could be worth thousands and thousands of dollars. Good luck to you.

Sun Protection Through Your Food

Healthy Theory — Sun, 29 Aug 2010 17:00:05 +0000

During the warm summer months, people tend to spend their days outside in the sun. Consequently, many of us are extra vigilant about using sunscreen to help protect our skin from the sun's harmful rays, which can do damage to both our skin and our immune systems by causing photo-oxidation of our cells.

However, using sunscreen can be a hassle and a mess, not to mention the recent concerns over some of the ingredients that are used in certain sun blocks. Needless to say, it can be enough to discourage people from taking the proper precautions.

Now, however, scientists believe that protecting our skin from the sun may be influenced by the foods we eat. In a paper published in Nutrition Reviews, researchers believe that the foods that are contained in the Mediterranean diet may have a protective affect on the skin. The diet would include foods that are rich in antioxidants and omega-3 fatty acids. Melanoma rates are in fact very low in the Mediterranean regions.

Nutrition experts believe that foods like olive oil, fish, yogurt, and fresh fruits and vegetables, especially colorful ones, might be a good way to complement other important methods of sun protection, including the use of sunscreen and wearing properly protective clothing.

Consumption of these antioxidants might better prepare our cells from the damaging effects of ultraviolet (UV) radiation. To study this possibility, researchers recruited volunteers and divided them into two groups. One group was given a drink that was high in antioxidants while the other group simply consumed regular beverages such as soda pop or juice.

Over a two-week period, the group that drank the antioxidant beverage had fewer oxidation products in their blood than the control group, even in lieu of 5 to 6 hours of daily sun exposure. Further analysis indicated that carotenoids, which are pigments in the skin of fruits and vegetables, actually accumulate in the skin and may thereby serve as a first line of defense against UV rays. In fact, these compounds are linked to the delay of skin erythema, which is an indicator of tissue and DNA damage that can be a precursor to skin cancer.

The findings may be particularly relevant due to the climate changes that we are currently experiencing. With the rising temperatures and the increased exposure to the sun's harmful rays, sunscreen alone may not suffice, especially when you consider people's busy schedules and the inconvenience of applying them. With this in mind, dietary changes would be a more plausible way to help protect oneself.

The authors also indicate that dietary supplements are not as effective because the benefits of a nutritious diet involve a complex interaction between foods. This "synergy" results in vitamins and antioxidants acting in conjunction with one another to provide a greater protective effect than the nutrients isolated in supplements.

For more information about the Mediterranean diet, visit the website for the American Heart Association.

Guest Post Blurb:

This is a guest post by Fred Lee from our sister blog, Healthy Theory. Visit Healthy Theory for more health tips and news.

4 Ways Reading the Newspaper Will Make You Rich and Famous

Elizabeth Sanberg — Sat, 28 Aug 2010 17:00:08 +0000

Last year, everyone proclaimed that print newspapers were dying. It turns out that fewer newspapers have gone under than some had predicted, but I don't think anyone is announcing that newspapers are thriving.

I'd like to see print newspapers make a comeback. I think that local and national newspapers play a crucial role in our society. But, more importantly for Wise Bread readers, there are a lot of ways reading a print newspaper will benefit you.

Save Time

I don't know about you, but I really dislike reading newspaper articles online. They are spread over several pages, each page taking an increasing amount of time to load. And each online page is covered with obnoxious ads. These two factors make it exceptionally difficult to skim articles and get a good idea of what's going on in the news in a short period of time. Sure, you can skim over some headlines on newspapers sites, but to get any depth to a story you have to click through and open it. In print, you can quickly glance over headlines, image captions, and read the lead-in to a story to get an idea of what it's about. I spend probably 20 minutes each morning reading my local paper, but if I read the equivalent number of stories online it would take me five times as long.

Save Money

My newspaper now lists something like "Save $250 in Coupons" at the top of the Sunday section. Coupon clipping saves me a few dollars each week, but I also save money by finding travel deals, theater deals, and cheap or free events. The Sunday circular ads are also a great way to comparison shop. I was recently shopping for a new stove and could look through the ads each week to see what was on sale at the stores in my area. (Have you ever tried to look at an ad circular online? You may still be waiting for it to load.) Most newspapers also have calendars in their weekly sections listing the special and free events taking place that week. For example, the Homes section makes it incredibly easy to check out any home repair workshops And in the Taste section, I frequently find beer and wine tastings.

Provoke Conversation

Unless you spend two hours a day reading news online, you're not going to be able to know the majority of happenings in your community. When you read a print paper and know what's going on, you are better prepared to make conversation with a variety of people, whether it's the owner of a company you're trying to get a job with or a person at a bar who might be your future spouse. This intelligent conversation leads to opportunities that can make you rich and famous.

Generate Money-Making Ideas

By following the news, you gain a glimpse into societal trends. Identifying these trends and then solving the problem that arises from the trend allows you to make money and help people. You don't have to come up with the "one brilliant idea." Instead, you just have to be able to fill a need or desire that some people have.

I know there are a lot of people who believe that paying attention to the news is a waste of time. However, it seems that most of these people are already rich and famous. Once you're rich and famous, you can hire someone to read the paper and tell you what's most important and relevant to your life. Until then, subscribe to your local print newspaper. Besides the greater good of having independent journalism, you'll save money and time, and grow your network and your business.

Best Money Tips: Free Ways to Teach Kids about Music

Linsey Knerl — Fri, 27 Aug 2010 14:05:33 +0000

Welcome to Wise Bread's Best Money Tips roundup. Today, we tell you how to stay within budget when teaching your child about music, why eggplant makes a killer pizza, and what you should be tipping your doorman.

Old Stuff: How to Kindly Receive and Reuse

Julie Rains — Fri, 27 Aug 2010 13:00:09 +0000

Taking in free items can be a savvy, frugal move. But be on guard so that you won't be the not-so-proud owner of useless stuff.

Those who have recently moved out on their own or had a first baby can be easy targets for others who are looking to unload their things. You may not be able to anticipate what you'll need in the future but will know that there's a great need to save money. When someone offers to give you something free, you're more likely to take things that you might use. At the same time, your friends, family, and even acquaintances will feel like they are helping you by giving you their castoffs. They may even try to pull the frugal card by telling you that you would be wise to accept their old stuff rather than buying new items.

Stay on the offensive to kindly receive the things you need, save money, and stay clutter-free.

Know what you need

You probably have a running list of items that you're planning on buying soon, would like to have if you had extra money, or could always use. Think about these things when you learn that someone else's old stuff is now available so that you can quickly accept or firmly decline.

Know what you don't want old or used

I'm not being a snob here but there are certain items — especially for babies and children — that might require investigation before you can confidently accept and use. Large items subject to recall, such as cribs, strollers, and swings, come to mind. You may be perfectly fine with a used crib but not with one that has been disassembled and is missing some hardware, or a car seat that looks fine but has been in a wreck.

Getting these big ticket items for free might seem like a good idea, but if you aren't able to put them to good use, then they'll just add clutter.

Understand expectations

Most people have some expectations that you will use and appreciate the items that you've received. They never dream that their stuff can cause a burden.

Ideally, you'll get things with no strings attached (emotional or otherwise). In this case, you won't be under any obligation to keep it forever, showcase in your home, or pass along to your children.

But at some point, you will probably encounter some of these stipulations, either expressed or implied:

When you're done using the items (when your kids outgrow clothes, for example), give them to someone else who can use them at no charge, just the way you received them. Don't sell them on eBay, Craigslist, or the local consignment shop.
Return these items after you've finished using them. A close friend or relative might allow you to use baby things for now but wants them back in about nine months. This arrangement is more of a loan. If you are getting loads of freebies in a short span of time, it's helpful to clarify what's yours to keep and what you need to give back.
Hold the items (indefinitely) until the giver is ready to take them back. Watch out for large items that may be extremely useful to have for a while but burdensome to store.
Give back stuff that you find you won't use.
Donate items to charity, yard sale, etc. after you've finished using them.

Sort immediately

You might be able to sort through items and choose what you need, rather than accepting mixed-up lots of useful and not-so-useful things. Or, you might take bags of old stuff with the understanding that you'll take what you want and pass the rest along to someone else. Either way, sort and organize as soon as you get old stuff so that it doesn't clog up your household.

Take these actions:

Put items that you can use right now in their proper places.
Assign a storage place for things that you plan to use in the future but don't need at the moment; commit this place to memory so you'll be able to pull from this inventory later. Clothing that is a couple of sizes too big now but should fit your children at some point falls into this category. Similarly, classic but age-inappropriate books and toys might be stored temporarily.
Decide whether you can fix items that need to be repaired or altered. If yes, set these things aside momentarily and pick a date for painting, restoring, or whatever needs to be done. If no, get rid of these items as quickly as you can.
Reject items that aren't functional or repairable. If you happen to take home some unusable or damaged items, get rid of them immediately.

Though I've been the happy recipient of great used items, I've also had too many things clogging up my basement. However, I have found myself in the position of wanting to get rid of items that range from perfectly wonderful to possibly useful for parts only. Making an announcement to your social network is a simple way to find a nice home for the best items without putting anyone on the spot. Generally, I opt to donate items to a yard sale benefiting organizations that I support; my friends (and other folks) can snag a great deal if they'd like, but not be burdened with my old stuff.

Must-Have Qualities to Ensure Long-Term Job Security

Little House — Fri, 27 Aug 2010 12:00:08 +0000

Securing a job in today's economy is more challenging than it's been in decades. Whether you've just graduated from college and are looking for your first "real" job or you're between jobs, there are a couple of qualities that are timeless. They can make you an indispensable part of any company or business, or can help you strike out on your own: Flexibility and Resourcefulness.

Become Engrossed in Your Position

You've just heard the news; a company you interviewed for has selected you as their favorite candidate. You start in a couple of weeks and can't wait to begin your new career.

A great way to become an essential part of a company's team is to become engrossed in the company's product or service. Though many positions have specific responsibilities associated with them, taking on more challenging tasks, redefining your position, and "getting your hands dirty" can ensure the beginning of a long career.

Many years ago, I interviewed for an online video streaming company. The job entailed a lot of research and contact database management. Being a hard worker, I knew I could manage the responsibilities of the job. However, the job also entailed some new responsibilities that I had little experience with. A few months into the position, I decided to redefine my role; I organized a large trade show and began writing press releases for their upcoming product. This act alone ensured my position with the company and I happily transitioned to trade show manager.

Enjoying the learning process is essential to growing your career. The more you commit to a position, the more likely you'll be regarded as the point-person within that arena.

Flexibility and Balancing Acts

Two people in your department have left and now their responsibilities have been placed upon your shoulders.

More and more I hear stories from friends about reductions in their office staff, yet those tasks, which are now unassigned, still need to be completed. The coworkers who are happily, or at least willing, to assimilate the new responsibilities into their work load are the ones who will benefit in the end.

My first corporate job as a sales coordinator was region specific. I was responsible for the east coast region and three other coworkers were responsible for the other cardinal directions (west, north, and south regions). A few months into my new job, two of the coordinators left. All of a sudden, there were two coordinators for a total of four regions — all with similar tasks. Being flexible, I assumed responsibilities for one additional region and won the praise of many colleagues.

Flexibility is highly regarded in most environments. The more tasks you can manage and coordinate seamlessly, the better chances of management regarding you as promotion material.

Resourcefulness Breeds Creativity

Layoffs are looming and you're beginning to think you might be next. That entrepreneurial spirit is kicking in.

Not everyone is cut out for one life-time career; lifestyles change, job opportunities pop up, and independent ventures become possibilities. Acquiring different talents, or becoming a "Jack-of-all-Trades," instills resourcefulness in oneself and nurtures creativity. Being resourceful means opening yourself up to potential job opportunities and multiple streams of income.

After realizing that a nine-to-five corporate job wasn't what I had in mind for myself, I began working side jobs to cover my bills while transitioning into a new career path. Having good time management skills, I juggled working as a Starbucks barista, a lactation educator, and a substitute teacher while redefining what I wanted my career to look like. Being resourceful allowed me the flexibility and opportunity to envision the career I really wanted. Like a chameleon, I was able to meld into temporary positions until I found one that suited me best.

The ability to draw upon skills and resources means there is less of a likelihood of becoming financially strapped. Multiple streams of income create plenty of opportunities to branch out into a new field without worrying about your bottom line.

Though these must-have qualities come in handy during tough economic times, they can also be helpful for future job seekers and entrepreneurs.

Wise Bread

What I Learned From Working at a Bank

Don't buy a house you can't afford. Don't buy two houses you can't afford.

If you make $1 million a year, at least have something to show for it.

Don't bet the farm.

What Does Being Rich Mean to You Anyway?

Not Worrying About Money

Having Loving Family and Friends

Having a Sense of Direction

How to Get a Life: Consider the Worst Case Scenario

Start Living Life Homework

Fear As Positive Motivation

Is GDP Still Important?

Alternative Measurements

Best Money Tips: Anatomy of a Coupon

Top 5 Articles

Other Essential Reading

Downsizing With Kids

1. Dump the Junk

2. Make Friends

3. Use What Your Community Offers

4. Get a Family Pass

5. Look for a Community Garden

6. Volunteer

Why Going to the Gym Is a Waste of Money, Time, and Resources

Gym Fees

Time

Increased Calories Consumed

Injuries

Prizes and Freebies from CoupSmart for the iPhone

What Is CoupSmart?

How Does It Work?

What Can You Get?

Ask the Readers: If You Could Have One Wish (Chance to win $20!)

Win one of three $20 Amazon gift cards:

How to Enter:

Giveaway Rules:

4 Ways to Bug Your Boss for More Money – and Get It!

Wrangle References

Research Rates

Value Added

Show Them the Money

How to Win the Lottery Without Paying a Penny for the Ticket

The Lottery Dream Fantasy

The Financial Freedom Dream

The Lottery Trick

5 things you can do today to start buying your ticket

6 Reasons Why Cash Is Still King

1. It's Universal

2. It's Quick

3. It's Influential

4. It's Anonymous

5. It's Simple

6. It's Direct

Best Money Tips: 7 Worthless Excuses for Not Saving

Top 5 Articles

Other Essential Reading

How to Build Your Own Trigger for Happiness

Step 1: Build Your Anchor

Step 2: Reinforce Your Anchor

Step 3: Use Your Anchor

Summary

Do You Own a Domain Name That’s Worth a Fortune?

Sun Protection Through Your Food

4 Ways Reading the Newspaper Will Make You Rich and Famous

Save Time

Save Money

Provoke Conversation

Generate Money-Making Ideas

Best Money Tips: Free Ways to Teach Kids about Music

Top 5 Articles

Other Essential Reading

Old Stuff: How to Kindly Receive and Reuse

Know what you need

Know what you don't want old or used

Understand expectations

Sort immediately

Must-Have Qualities to Ensure Long-Term Job Security

Become Engrossed in Your Position

Flexibility and Balancing Acts