Down Slide of the American Middle Class

The American dream has been getting foggier and foggier. The notion of getting good grades in school to advance on to a scholarly institution and graduate college to land a great job has become fleeting. Adding on a family, a home, car, and opportunity for enjoyment of these liberties are becoming a goal that has been cast at an even farther distance. Personal income has decreased sharply over the past 30 years—almost 10 percent. The standard of living for the American middle class has gone down with it. Jobs that were held by the middle class have turned into “low income” jobs. These jobs now make up almost half of all American jobs. This is huge.

Some experts are noting that “globalization” is a factor in creating this trend, and may contribute to a creating a two-tiered society in this country. Some experts are even mentioning that America may be on the way to becoming less that a first world country.

Technology is also a huge contributor to this trend. New technology has been the cause of the reduction of particular jobs and increased other jobs. Jobs that are now in demand are healthcare and hospitality. Jobs where there is an impact on direct care of basic human needs and relaxation will thrive in this society. All humans need healthcare, and others will still spend money on home wellness when regular health insurance is not affordable—this will not just be left for the increasingly wealthy, although the wealthy can afford to feed the more extravagant hospitality sector.

The private sector job market is steadily increasing; however, for low-income jobs. Private sector jobs for the middle class are steadily decreasing, and government jobs are about the same.

With this entire going on, some experts are noting that today’s American generation is doing better than the previous generation. So far, the greatest increase is being seen for seniors in their social security checks. However, this comes at a great cost to the government.

Surveys conducted by Gallop polls, reveal that older Americans feel better off than their parents were at the same age in comparison to younger Americans. The wealthy Americans surveyed feel much better than those that are not as wealthy. Overall, this connotation is down by 5 percent from similar surveys taken near the turn of the century. Surveys from Pew Research Center have also revealed equivalent results.

This all seems to be quite good for much needed morale. Perhaps, this may be enough to combat the reality of this situation.

Resources:

ABC News: http://abcnews.go.com

Reuters: http://www.reuters.com

Yahoo! Finance – The Daily Ticker: http://finance.yahoo.com

Start-Up Businesses for 2012

It has long been rumored that the wretched economic state that we are in has very few opportunities for recovery—one of them being a booming private sector. Start-Up businesses can help with the economic recovery system we need. Individuals that are interested in creating their own business can use their natural talents to get started. Some people have a distinct passion that he or she wants to bestow upon the world—and then there are some people that are not really sure what they may want to do.

With all of the ups and downs in the business world today, certain business paths have opened or widened as other businesses have failed. This has created a whole new way to look at business and the way people earn money. One of the factors of this phenomenon includes an increase of e-commerce, with mobile commerce (or m-commerce) climbing right behind. Keeping this in mind, here are a few great ideas for start-up businesses.

Shipping

Virtual shopping has created a boom in the shipping business. This natural occurrence has made huge profits for shipping businesses. Shopping malls are becoming ghost towns in favor or the virtual mall. This undoubtedly calls for the consistent need for shipping services and supplies. This is a good time to learn more about the shipping business and how to buy into a franchise.

Virtual Assistant

A lot of business owners need an assistant. However, not all of them are able to afford the space, equipment, and supplies he or she will need to complete the job. This is when a Virtual Assistant, also known as a VA, can be most useful. You can be that useful VA that a professional will pay to help him or her to become more successful. You will need to have your own home/office equipment and a connection to the Internet. The commute is none existent and your only steps away from the cafeteria and employee lounge.

Virtual Tutoring

Modern students are getting used to a diversified learning atmosphere—including online instruction. Although this has not eliminated in-class instruction, a lot more students expect some part of their course instruction to be online. There is an accepted convenience that makes this a highly desirable aspect of learning today.

Tutoring is an age-old student aide that can now be brought to a plethora of knowledge needy students. If you are a qualified tutor, you can now offer your services online. You can use one of the many communication portals such as video chatting or email to reach your students. Now you can tutor your pupils despite bad weather, personal ailments, or distance.

Now that you know about all of the different ways you can make 2012 your year to make it big in a private business you can talk to your financial advisor about how to get started. Pool your money resources together to make the necessary purchases. If you don’t have enough money as of yet, it will not hurt to find out how much money you will need to raise too make it to your goals—knowledge is power.

Save More Money in 2012

This has been a year that most may want to forget. Financial woes hit Americans hard this year. Lots of things are still out of balance as we look ahead. As this year comes to a close it is a good time to think about your financial future. Here are some tips on shaping up your finances in the new year.

Savings Accounts

This has to be the simplest thing to do. However, a lot of people don’t utilize them as much as they should. Some reasons may be that it is believed that not a lot of money—as interest—may be earned. It’s true that typical bank savings account products made for the average American, with a required minimum balance of only $500 dollars, has an average interest rate of below 1 percent. Accounts that have an increased earned interest value also have an increased minimum balance rate—$3,000 dollars and up. That is a lot of money to have on hand for the average American during such difficult economic times. However, even a 1 percent earned interest rate savings account is good for something—and, it’s a start in the right direction.

Pay yourself by saving a little bit each paycheck. Most financial expert recommendations have been a steady 10 – 15 percent of each paycheck. Recently, this recommendation has been increased to 20 percent. This will make a significant difference in your savings.

Pay Less

Modern consumers have much more choices than ever before when it comes to getting more for less. There are a plethora of discount or coupon services available. For a few dollars, a person may sign up for access to coupon websites where he or she may download coupons to use for grocery shopping. There are also discount website and/or manufacturer issued discount codes flying all over the internet for other wanted items such as clothing, shoes, furniture, bedding, and more.

Another big step for modern consumers are the group discount deals being offered by quite a few different companies. These are offers on mostly lifestyle, therapeutic, or relaxation products. Some of what is being offered are discount travel and vacation destination rates, discounts on dinner at trendy metropolitan restaurants, and discounts on gym memberships or fitness classes—the choices seem to be limitless.

Get More

Pleasantness with a mix of proper manners may go a long way on bumping up amenities at certain establishments. Being courteous to the staff at a posh restaurant or hotel may amount to getting more stuff for the same amount of money you have already invested. It pays to be nice.

Frequent users of certain products may also be able to get more with regular use of particular services. Look for services that offer a freebie or full use of their offered product for free once a consumer has accumulated a certain amount of usage. This can amount to a free lunch or a few free nights at a hotel. Shop around for the best prices online as well as locally. There are a lot of deals out there for you to find.

Beauty Bonus

Times have been tough for all us lately. The economy has forced many Americans to do without the usual and consistent luxuries. However, American women have adapted and even drove a particular market sky high—nail polish. Isn’t that simply amazing? There are plenty of beauty rituals that do not need to be put off because of the overturned economy. Become a do-it-yourself person, and get the most out of your own natural talents.

Nail Shop Envy

Consistent trips to a nail beauty salon used to be a grooming necessity. Now, it has become an every now and again luxury for many. A typical manicure and pedicure costs about $25 – $30 dollars, with a modest tip for the nail technician. That is a total cost of approximately $60 dollars per month, or approximately $720 dollars per year—when you add that up at the typical bi-weekly visiting rate for nail grooming. This does not include transportation costs, or the purchasing of a quick snack and beverage while waiting to be seated for services. That is a lot of money that can be used elsewhere, and for a more long lasting or productive purpose.

American Women Are Doing It For Themselves

Self-serve has taken on a whole new meaning this year. The numbers of self-grooming products are proving it—nail polish and nail products in particular. Nail polish products buying by average American women has gone up a whopping 59% for the better part of this year, according to the NPD Group market research firm. That is up from the same time in 2010.

Women are able to take care of this task themselves, and the opportunity to change up their look is endless. There is no need to wait for bi-weekly grooming, or for your favorite nail technician to be available. With the colder weather upon us, it can also be a bit more troublesome experience—try to get a pair of socks, boots, and gloves on after a fresh Mani Pedi. All that has to be done is to pick up a bottle of nail polish from a local beauty supply and voila—instant beauty makeover. This is quick, inexpensive, less time consuming, and truly gratifying.

Women just can’t seem to get enough.

Real Beauty

Women who want to be beautiful will find a way to achieve it without the salon. There are lots of beauty treatments that can be done at home. There are homemade beauty wrap recipes and products. Natural product facemask recipes for all complexions are easy to find with the some online research. YouTube is loaded with a plethora of instructional beauty regimen videos. Bring the spa experience home by adding romantic scents to the home atmosphere while performing a home beauty regimen. Make a party out of it by inviting some friends over. Get ready for the holidays—and save some money while you are at it.

With a bit of research women can find a ton of recipes on homemade beauty techniques, at a fraction of the cost of going to a beauty parlor or salon. That’s your beauty bonus.

Resources:

Reuters: http://www.reuters.com

Yahoo!: http://www.yahoo.com

Stay clear of these common mistakes when you go for bill consolidation

You can always go for consolidation if you are feeling lost, while trying to handle multiple bills. The bill consolidation programs combine your multiple bills into a single monthly payment plan, and make it more convenient for you to manage your debt accounts. However careful consideration is crucial when you go along with such a program, as negligence on your part may add up to your debt burdens.

Some common blunders are explained below, which you can avoid while going for bill consolidation:

1. Replacing your unsecured loans with a secured one: People often make the common mistake of consolidating their past due bills, and placing their house as collateral. While this may secure your debts, it also increases the risk of losing your house if you default on the payments for the consolidated amount.
2. Believing in false promises: You may be knee deep in debt, and might be considering paying off your bills through consolidation. While signing up with any of the companies that offer bill consolidation services, please check the documents carefully. Try to look out for scams, hidden costs, the repayment plans offered by them and opt for an affordable fee structure, rather than believing in hypes or verbal promises.
3. Not checking your financial condition: This is the most common mistake that people make while trying to settle their past due bills. They neglect their financial condition and don’t keep an estimate about their income, expenditure or even how much monthly payment they can afford. It is essential for you to keep track of your own financial condition before opting for a bill consolidation program.
4. Thinking that do-it-yourself consolidation doesn’t work: Unsecured debts can be consolidated on your own. It is a wrong notion that only the consolidation companies make successful deals. You can try negotiating with your creditors, all by yourself, to reduce the interest rates on your bills. It is advisable to manage your credit accounts to get rid of the dues on your bills faster.
5. Closing your credit card accounts: It is a mistake to think that closing your credit card accounts will reduce your bills. As a matter of fact, such a step will reduce your credit availability and increase your credit utilization ratio. This will have a negative impact on your credit score.
6. Stopping the regular payments: It will be unwise to think that only a consolidation program will reduce your dues. If you fail to make timely payments on your consolidated bills, the consolidation company may cancel the entire program, and all the efforts put into it will be wasted.

A bill consolidation only makes your bills more manageable and affordable. To get rid of those completely, you’ll need to measure your steps carefully, and avoid being misled.

Holiday Outfits on a Budget

The holiday season is in full swing. Thanksgiving has just passed us by, and the end of year celebrations are just around the corner. No matter how or what you may celebrate, there is a pledge to the fashion police to adorn yourself with your finer clothing and accessories this time of year. However, with the economy being what it is, a lot of us will have to make due with a whole lot less this year. No problem.

Shopping for Discounts

There are plenty of options for affordable clothing these days. If you did not have the opportunity to partake in the recent Black Friday weekend shopping bonanza or the terrific deals presented to consumers on Cyber Monday, you may still have an opportunity to get a great deal or discount. First of all, many retailers are still offering sales—at the same or slightly higher pricing. In any case, it should be lower not then at any other time of the year. So if you were too into turkey day to look up, be on your way to the nearest shopping center for the end of year clearance racks.

Most retailers are getting ready for more holiday shopping and want to continue the successes enjoyed during last week’s consumer frenzy. They will start to offer end of year deals right around the time you will be ready to get an outfit together for your holiday event. Look out for deals on shoes, bags, hats, dress and casual clothing.

I can’t seem to say this enough, online retail websites are a very consumer smart way to go for some of the best deals you can imagine. If you are lucky enough to make purchases at all, I would definitely make online shopping a priority shopping option.

Exchanging Clothes

Times are not easy, but it has not always been like this. There are plenty of unused (brand new with the tags still on them) and gently used clothing that can be exchanged within trusted circles and associations. Keep an eye out for organizations that may be having clothing exchange events in your neighborhood. This may be held by a not for profit organization at a local participating retailer, thrift shop, neighborhood social center, or place of worship. If you cannot fine one, you may be able to host one yourself. This can be a great cooperative activity that you can share with family and friends—get them all involved.

Recycle Old Clothes

You know that you probably have enough clothing from the last holiday season to wear this year as well. Once it is still in good condition, it is wearable. This can save you big in the long run.

Don’t like the color—dye it. A bit too bland—embellish it with clothing jewelry or decorative fabric pieces. Get creative. There are a plethora of website portals with video and other clear media demonstrating how to get this done—that goes for great hairstyles for the ladies as well.

Don’t let the lack of immediate funds or the lack of what you may have been used to suppress your holiday spirit. You may find that participating in such tasks to not only be effective toward your goal of getting something to wear, you may also find a distraction that may be a well deserved pick me up. Enjoy.

European Affect on Stock Market

The stock market’s most recent rise is due to the lifting of cash access restrictions made on European banks—due to the serious decline of confidence in the European banks recession recovery.

According to an article distributed by the Associate Press, “‘The central banks of the world have resolved that there will not be a liquidity shortage,’ said David Kotok, chairman and chief investment officer of Cumberland Advisors.  ‘And they have learned their lessons from 2008. They don’t want to take small steps and do anything incrementally, but make a big bold move that is credible.’” The stocks of huge American financial institutions such as Morgan Stanley, J.P. Morgan Chase, and Citigroup have gone up between 6 and 7 percent, on Tuesday. These are being seen as big gains in such a shifting economy.

Essentially, rates for loans have been lowered to a point that simply makes it much easier for banks to borrow all of the money that they wish. This is a great alleviation for these banks and gives them more liquidity. However, experts have also been issuing caution to these large establishments and to the world at large. They have noted that this may just be the catalyst for another bubble effect later on and that this latest move may only be a matter of passing the buck. According to them, there has to be a sturdier foundation from which to build a stronger economy than what we are experiencing now—and since 2008.

“‘People are taking comfort that it’s globally coordinated,’ said Peter Tchir, who runs the hedge fund TF Market Advisors. ‘In itself it does nothing, but the bulls are anticipating that this is just the beginning of central bank and other actions’ to ease market pressures.”

“A successful action would be expected to reduce borrowing costs for Italy and other nations, Tchir said. Italy’s borrowing costs edged lower Wednesday, but the nation was still paying more than 7 percent interest for 10-year borrowing — a dangerously high level.”

                                                                       —The Associated Press 

Banks may be relieved at what may be considered a holiday miracle; however, some experts have noted that this could be a set up for an even more devastating financial upset later on down the line.

Even with cautionary mentions, the upward climbs of stocks have given a clear indication that there is more confidence within the market. Perhaps the infusion of morale will foster greater results instead of a more negative financial outcome. The Dow has increased by enough points to take them out of the pointed low the Dow was in only a week ago. The Standard & Poors index increased by almost 4 percent, on Tuesday. However, in another AP article, Standard & Poors is noted as decreasing the credit value of particular US banks—Bank of America, J.P. Morgan Chase & Co., Citigroup, Morgan Stanley, and more. This may also prove to be a most confusing time for some.

Standard & Poors have been noted as lowering credit ratings due to new practices and/or procedures recently adopted by particular banks.

Resources:

David Wagner, “Stocks leap on central banks’ coordinated action,” The Associated Press: http://www.ap.org

Yahoo! News: http://news.yahoo.com

Black Friday Successes

Retailers waited anxiously for what has become the biggest day in retail for decades now—Black Friday. Occurring on the day after Thanksgiving, Black Friday has been used as a determining retail factor for financial figures for the rest of the holiday season for decades. Retailers that do well on Black Friday may expect to do well financially by the year’s end. This has lead to an expected frenzy of encouraging sales to lure shoppers so that they get a jump making on holiday purchases—including extending Black Friday to “Black Friday weekend.”

Everything and Anything Goes

Televisions, cell phones, computers, house wares, laptops, clothing, furniture, jewelry, and of course the crowd favorite—toys. Retailers had all of these on sale. Savvy consumers made the most out of some of the best shopping deals on the momentous day. Items that were usually sold at much higher prices earlier in the year were offered at a deep discount this past weekend. Retailers have been following suit by offering new items during the Black Friday event. Manufacturers have also been playing along, by offering new and updated items with late fall release dates. This spanned from e-readers to the latest and greatest video games. All of these retail forces worked together for the largest profit imaginable.

So how well did American retailers do this year? Very well, and better than expected according to experts. The National Retail Federation has estimated that during the weekend of Black Friday consumers spent a “record $52 billion dollars.” There were an estimated 14 million more shoppers in stores this past weekend, and nearly 25% of all shoppers that visited stores did so during the 12-midnight opening time on Friday. The earlier shopping hours went over well with shoppers that just wanted to get it out of the way as soon as possible and felt this was a welcoming alternative than getting up in the early morning to beat other shoppers to the door. Some shoppers would have been able to have dinner and camp out in front of stores with dessert—only in America.

And the Winner Is…

Resources:

Associated Press: http://www.ap.org

National Retail Federation: http://www.nrf.com

Reuters: http://www.reuters.com

Holiday Shopping Tips and Trends

It’s Your Money

The holiday shopping season is finally here and shoppers are expecting a lot. Experts have predicted that shopper spending will increase almost 3 percent from last year. A lot of that has to do with the expectation of great holiday deals from retailers this season. Retailers are following suit by offering some amazing deals, and well before Black Friday actually arrives. The deals are expected to be so great that most experts predict that shoppers will not only buy for loved ones—they will buy for themselves as well. Some retailers have even started whole marketing campaigns around this popular theory. There may be a surge in BOGO’s (buy one get one) this holiday season as a direct result.

Here is a mini survival kit on how to get the most out of the 2011 holiday season.

Shop Around

Look through store circulars and compare the prices. You are sure to pinpoint items that you want to check off of your holiday shopping list. If you prefer dealing with a particular merchant, bring in competitor prices to see if they will match it.

Get Out Early, or Stay up Late

Lots of stores have set a trend of trying to beat out the competition by opening up as early as possible over recent years. The 8 am opening time has been swept aside for the 6 am opening, and then the 4 am opening. Well retailers have gotten even cleverer by offering Black Friday midnight (morning) sales. Macy’s, and others will be opening their doors at midnight so you can start shopping before sleeping off your delicious Thanksgiving meal. Check your local retailers for more details.

Go Online

Cyber Mondays has evolved into cyber everyday around the holidays. You do not have to wait until the Monday after Thanksgiving to get great deals. Great deals are only as far as your fingers can type your most wanted items into search modules.

Rain Check

Coveted items are sure to get top billing at most stores, which means that they will probably run out the fastest. You may be able to get a rain check from some retailers if this should happen. Don’t expect that you will be able to get the item before Christmas though. You may have to be patient and wait until the New Year—better late than never.

Keep Your Sanity Intact

The holidays can be one of the most stressful times of the entire year. If you do venture out, the lines are bound to be quite long with determined shoppers, who all want more than a retailer may have in stock. Be patient, and have several destinations in mind. If an item cannot be found at one store, it may be at another. This is a good time to get that out the e-reader and browse through a novel, or play a quick game. Bring along company, snacks, and water too. You don’t want to get dehydrated and famished while waiting on line.

Remember that a lot of stores may have an online website as well. If you can’t find it at the store you may be able to find at the store website.

Resources:

National Retailer Federation: http://www.nrf.com

The Jobless Situation in America

In a Nut Shell

Employment in America is increasingly challenging. Although there are reports of unemployment decreasing, this only accounts for those that are still eligible for unemployment benefits. A lot of Americans are no longer receiving benefits and are not necessarily getting work as a result. So what is happening to them? These are the people that are becoming, and by effect increasing, the nations poor.

The unemployment rate is being noted as approximately 9 percent, currently. However, another survey that concentrates on a wider scope of people that are not working, or are working only part-time in lieu of full-time work, brings the number to over 16 percent—this is a huge difference.

Some out of work job seekers feel they have exhausted all reasonable avenues, and have stopped looking for work. It becomes such a job, looking for a job, they become exhausted at what seems to be a matter of running in circles. According to some experts, the government really has to step it up to understand the full scope of who is unemployed and reach out with services to them all. This is the only way that a difference may be seen anytime soon.

Public jobs are decreasing while the private sector continues to increase. This is no doubt by an increasing amount of professional or expert services being offered by smaller companies. For a few lucky ones, this has been a catalyst for starting up a new business. However a problematic situation may occur if there is a lack of an ability to control costs, and maintain customers in such a cooling economy. Those that would tread those waters should do so with extreme care.

For others, there is the reality of seeking out public assistance. A lot of those that are able to utilize food stamps are still working—they have become the working poor. Demographics are shifting at an alarming rate as a direct result.

Metropolitan areas are a foreground for a growing number of poverty stricken families. Although food stamps are a non-monetary aid for families, this staple is considered to have decreased the official child poverty rate. However, the poverty rate of the elderly has recently “doubled,” according to a recent report released by the Associated Press.

One city town in Michigan has found it necessary to take a drastic and extreme turn by taking off the entire city’s funded street lamps. Not only did they cut off the electric current to public lampposts as a result to their indebtedness of over $55 million dollars, city officials have removed the lamps from the ground. The shutting off of a basic service that may sacrifice public safety is a sure sign of the drowning state of things for some communities that have more “people than they do jobs.”

The gap between the rich and the poor or the ‘haves and the haves not’ has increased tremendously. As a matter of fact, while the average American has been brought down to their knees, the nation’s rich have only gotten richer over the last thirty years. According to reports (AP), the nation’s wealthy have increased their wealth by almost 300 percent.

Resources:

Associate Press: http://www.ap.org

Contrary Indicator: http://finance.yahoo.com