Making Ends Meet With Less Income

The great recession that we are in has meant that a lot of Americans are cutting back on a lot of usually affordable items. Making ends meet with less income is a way of living that a lot of us are getting used to, until we can do better.

Experts are noting that unemployment has gone down; however, more detailed studies reveal that the numbers are illusionary because those that have run out of unemployment benefits or are not eligible for benefits are not counted as being unemployed.

As time goes on, many American’s unemployment benefits are being exhausted and they have become ineligible to reapply. However, this does not mean that these people are working—and at most they may be underemployed. Then there are those that are not eligible, like those with failing businesses that can no longer stay afloat. These people are not being counted by the general census for unemployment accuracy—this is the conundrum.

Among many other things, what we are left with is a class of people that have to pay living expenses with much less. For those that are living with one income when your household once had two, or you are underemployed, you may appreciate this information.

Basic Survival

Being creative is a skill that can get you far in times like these. What it really comes down to is making it from day to day.

For those fortunate to still be in the workforce, plan out all of the necessary things that you need for the week. You need to be sure to get to work everyday, so be sure to have that expense covered.

Buy your transportation fare card ahead of time. Some employers have a program that allows you to purchase transportation fare cards, like a metro card, directly from the employer. The money is taken out of your paycheck before your deductions are calculated from your gross pay. This may alleviate some financial burdens for you later on in the year—ask your human resources department about it.

If you drive to work, be sure to put aside gas money. Avoid parking tickets and any other fee related offenses. The last thing you need is to spend more money or not have the use of the vehicle you need to get back and forth to work or to support your family care needs.

Pack a lunch instead of buying takeout all of the time. If you don’t like eating leftovers for lunch, then buy lunch items when they go on sale at your local market. You may be able to save 30%-60% off of lunch food costs when compared to buying lunch from vendors near your job.

Keep home expenses down, like utility costs, food, and repairs. Keeping on top of your utility usage will help to keep them low. Try to purchase foodstuffs when they are on sale, and store them well. Keep up on minor repairs so that they don’t turn into expensive home improvement projects later.

Entertainment

Relaxation and getting in enough down time is very important. You need to get proper rest to recharge yourself. This may call for some distraction and entertainment. You may not be able to go to the movies on a regular basis and movie tickets are very high right now—no problem. Check out you local paper for free to-do events. Go to the park, botanical garden, or museum on discount days. Go to your destination’s website to find out the discount price and free event schedule they have to offer. You may be surprised at how affordable and convenient this may be for you to do right now.

Don’t want to go out? Then stay home and log onto one of the low cost video streaming websites that you subscribe to. Netflix® video streaming is less than $10 dollars, and Hulu® is free—and a paid subscription to Huluplus® is also less than $10 dollars. I am sure that the low unlimited video streaming costs are less than haff of what others may pay for cable. Unplug the cable and go online for much less and with more flexibility and control.

Save, Save, Save.

I know that his may seem really daunting in times like these. It is truly challenging to save a significant amount of money right now—but that is ok, do the best that you can at the moment. Saving even just a few dollars from paycheck to paycheck really adds up. Perhaps you may not save enough for an all expense paid two-week vacation; however, you may have saved enough money to be sure you don’t run out of money for your basic expenses. Do your best to not have to borrow any significant amount of money. Nothing can be worse than trying to pay back money when you and your family are living on a very low income.

American Economic Recovery

The recovery of the American economic system is on the minds of all financial experts. With Europe being deep within a financial maelstrom, onlookers are very concerned if the US economy will be able to recover with better gains and in a shorter time than Europe will. The feeling is that this is very possible and highly likely. America still has a lot of strengths left. There is a lot to consider, for sure.

Human Resources

Middle class Americans are experiencing a very slow and low paying recovery. So while most may be able to put dinner on the table, there may not be much else left to fulfill the American Dream experience. Things are just different now and a lot of people will have to settle for a lot less in order to survive. However, Americans are still positively motivated—noting that they do feel more fortunate than the generation that raised them in a recent Gallop poll survey. This sort of morale will be able to go a long way in building towards a clearer and stronger future. This is the first and probably most important step towards recovery. The backbone of America, the average American, must feel that solutions are possible just to get up in the morning and give it a go. As unemployment is slowly going down, this may be a sign of better things ahead.

Creators

America has been dubbed the creation nation for a good reason. Some of the best inventions, technological wonders, and super gadgets, have all been created by American inventors and scientists—including computers, software, mobile phones, tablets, and social media hubs. Americans are still winning the race on new inventions that everyone wants. This will maintain the high profile visibility of American technology. Other nations simply do not have same status and demand for their inventions as Americans do.

Wholesome Foods

America can supply all of the essentials to her own country. With rich soil and livestock resources, America can grow all of the nourishing foods that are needed to be supplied. Of course foreign imports are a desirable addition—however, the US can survive on what is already there.

With all that being said, experts are on the lookout for new trends in the European economic (currency) system. There has been a buzz recently about Europe finally coming up with solutions for deeper solidarity amongst her many nations. This has led to rumors of the possibility of an increasingly stronger Euro that may appear. Some are speculating that a strong possibility of the Euro becoming the most valued currency in the world one day soon. The European Central Bank’s policy maker Christian Noyer seems to think so. He recently reported this positive news to Reuters.

America can certainly gain some much-needed steam in the New Year. It is not about competing with Europe—however, all global nations need to make significant progress for their citizens and neighbors. Hopefully all of these nations will learn from the mistakes made, leaving them in the past for future generations to learn from—not to repeat.

Resources:

FOX Business: http://www.foxbusiness.com

Reuters: http://www.reuters.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

College Loans Get an Administrative Lifesaver

College graduates have been having a really hard time of it lately. Unemployment is high and moral has been low. Trying to consider how to repay college loans in such an economy is more than challenging. The Obama administration has recognized this and has asserted a plan to help out college students with repaying college loans.

The Obama administration is going to ratify a college loan repayment cap in January 2012 instead of waiting to do so in 2014, according to a recent Reuters article.  The cap would be at “10 percent,” of the college student’s income. This is a much welcomed and needed boost for our nation’s college graduates. At the very least, this plan is a start.

This is an independent change that does not have to have the approval of Congress for it to go forward.

According to the article, there are more Americans with college loan debt than with credit card debt right now.  The amount of college loan debt is expected to increase and “exceed 1 trillion dollars this year, according to the Federal Reserve Bank of New York.”

The loan changes are expected to be announced this week by President Obama.

There will be more changes for students with this plan as well. According to the article, there will be ”debt forgiveness,” after twenty years. Currently debt forgiveness is set at twenty-five years.  The plan will also offer a loan bundling deal for some students. The plan will also allow for interest payment reductions for qualified students that choose to participate in the program.

Resources:

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

Reuters: http://www.reuters.com

Retirement Plans Not Feasible

Social Security Loosing Ground for Modern Seniors

Resources:

Social Security Online: http://www.socialsecurity.gov

The Wall Street Journal: http://online.wsj.com

Bank Financials

Have to Provide Plans to Regulators

There are quite a few banks that are now under scrutiny by US “regulators,” due to the recent financial crisis they may have been involved in. This includes the purchase or selling of mortgage-backed securities. Coupled with the housing failure that began, roughly around 2008, a lot of financial institutions have been determined to have crossed the line, and are being dealt with quite seriously. This is by official monitoring institutions and investors. There is a lot of money to pay back and those that may consider themselves as an interested party, want to be sure that these banks will be able to pay.

The Regulator

The Federal Deposit Insurance Corp. (FDIC) has created a unanimously approved rulebook to oversee the proper installation of pay back plans, from these banks. Some of these regulations include “rules [that] require banks with $50 billion or more in assets to submit so-called living wills to the FDIC, the Federal Reserve and the Financial Stability Oversight Council and send revised plans annually,” according to an Associate Press report.  These banks would have to include how, and possibly to whom, they may sell off assets: if they are not able to produce enough income to pay back debt owed.  The plans have to start pouring in by July 2012. However, smaller banks are being allowed to wait to file their paperwork until 2013, according to the same report.

The report further reveals an intent being made by these regulators. These plans have been designed to hopefully prevent targeted, or other banks, from receiving a government bailout in the future. Instead, regulators have seen it fitting that they be wholly responsible, for any debt they may incur.

The Plans Construct

The plans to be submitted have to be extremely detailed. They must contain every aspect of the banks operation, all revenue producing items or products, and “liabilities.” They must provide details on who and how much they owe. There must also be a “risk” forecast for all of these details. If the regulators choose to make modifications, they will be able to. This includes the immediate selling of assets, or completely scrapping the plan – making the bank start all over again. And if banks should want to modify already approved plans, they must send in a detailed report on these changes, or plans to change, within six weeks.

Resources:

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

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

Latest American Poverty Rate

Highest in Decades

The American dream has been a driving ideal for those born here, and for immigrants seeking a better way of life. Along with this sentiment is a common vision, of this better way of life – a beautiful three-bedroom house, with an emerald green lawn, white picket fence, and friendly recipe-sharing neighbors. Perhaps the dream has had some new additions or modifications such as having a larger apartment within a bustling city, and a room with a view. All in all, it adds up to a want for the most desirable contemporary life experience.

The Associated Press has released information from a Census Bureau report regarding a study conducted in 2010.  It states that almost one out of every six Americans is living in poverty. That is a huge amount of people: over 45 million Americans are. This is up by .8% from 2009.

The reasoning for such increasing numbers is the lack of jobs in America today. As I have reported recently, the unemployment rate in the US is rising at an exponential rate. According to the report, the last three years have had the highest increase rate from any three-year timeline since the ‘80s, and the highest amount of Americans living in poverty since the late ‘50s.

For these reasons a lot more Americans have had to rely on social services such as welfare, and food stamps. Reuters has reported the same amount of people on food stamps – 15%. Up “74% from 2007, just before the financial crisis and a deep recession led to mass job losses.” However, some of those receiving these food stamp benefits may be working as the underemployed. These are astonishing numbers – absolutely incredible.

Hopefully, Obama’s job plan will be acceptable and get Americans back to work. Economists are fully behind his plan. However, some are still reluctant to change financial “growth forecasts” for the remainder of this year, and going into the next. Predictions are still being “trimmed at a percentage point,” according to reports (AP). The US needs to produce about one-quarter million jobs on a monthly basis, to even begin to combat the high unemployment rate. A “rapid” job creation increase is what Americans need, according to the same report. Without that, we may continue at the currently over 9% unemployment rate.

At any rate, we need something extremely positive to happen quite quickly.

The census has determined that those living on less than approximately “$22,314” for a household of four, and less than “$11,139” for any one person are considered to be living in poverty.

The statue of liberty has a greeting meant for all that have chosen to live here. It states: “give me your tired, your poor, your huddled masses yearning to breathe free.  The wretched refuse of your teeming shore.  Send these, the homeless, the tempest-tost to me, I lift my lamp beside the golden door!” Now it seems that we are the tired, the poor, and “huddled masses yearning to breath free…”

Resources:

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

Reuters: http://www.reuters.com

The Statue of Liberty – Ellis Island Foundation, Inc.: http://www.statueofliberty.org

Yahoo! News – The Lookout: http://www.finance.yahoo.com

Oil Prices are Down

Linked With Resignation of European Executive

America has been feeling the pinch of rising oil and gas costs in recent months. Political embargos or work stoppage with oil rich countries have served as a catalyst for this trend. For the first time, in a long time, oil prices are down and we can expect to get bit of a break. The reason why may surprise you.

Resignation Domination

Juergen Stark, a top Economist at the European Central Bank, has handed in his resignation according to a report by the Associated Press: Stark will be finishing out his term early. This news has inspired the price of oil to go down as doubts about Europe’s debt crisis increases. Although Stark’s exit has been noted in the article for “personal reasons,” it is believed that there may be a connection to a growing divide among European officials. These ideas seem to have taken to the wind and traveling far enough to make people fear that this change may be an indication of Europe becoming overwhelmed – furthering financial demise in Europe. If European officials cannot agree on what to do about their own issues, the world becomes very nervous and a global chain reaction begins.

How Low

It has also been reported that oil is down by 2%: approximately $.30 cents in New York and $1.30 in the UK.

Reasons for Concern

Europe is a huge consumer of oil. Without a stable European debt recovery plan in place, a trend of low usage will manifest itself. There will be no real way to know if Europe will be able to afford the same supply of oil – or other merchandise, for that matter. This will have a direct effect on the price and distribution of oil, as well as on how Europeans travel. Changes in this behavior could certainly be detrimental to American tourism.

The prices went down due to an anticipated lack of demand, according to experts. This includes heating oil as well. However, it has been reported that the U.S. supply of oil has decreased dramatically because of an increase in demand, recently. Of course this has to be related to the recent storms as well. These were a hindrance to transporting oil, as well as causing a spike in demand, for that particular time. It seems that more oil is on the way from Libya, after a stoppage of over 200 days. However, the amount being sent is hardly enough to keep American consumers satisfied for long, unfortunately.

What Else is Being Affected?

What else is not being affected is probably a better question. As it stands, stocks have been going down and the Dow fell to a significant low at close on Friday as a result. Experts have stated that they expect for stocks to fall even further – possibly pushing America into a deeper recession.

This news is quite startling. According to the experts, Stark’s separation is being seen by some as a telltale sign of worse days to come.

Hope in Sight

If Obama’s job plan actually takes flight, there may be a chance for a trickle effect recovery. Many economists are on his side and believe his bill makes perfect sense and truly will work. It is now up to congress to bring the bill into being. This will pump new life into the American economy. It is believed that this opportunity for rejuvenation will be a promising start for all of us.

Resources:

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

Canadian Press: http://www.thecanadianpress.com

Yahoo! News: http://www.ca.finance.yahoo.com

Small Business in America

Stimulating a Path to Recovery for Job Seekers

The economy has had a deep impact on the way people are doing business. Most economists believe that it will take a flourishing small business market to successfully stimulate the job market in America.

What Job Seekers Need to Know

Those that are looking for a job may find that they may have a better chance gaining employment with an owner of a small business. As a matter of fact, experts say that it will be easier for a worker to find a job with a small business than with a large business right now. Small businesses have been described as those with 1 – 499 employees.

A majority of large businesses, especially those in the public sector, are so overwhelmed with “human capital” that they can afford to let scores of people go at a time. They simply can’t sustain huge amounts of people right now. These businesses maintain a safety net plan that allows for the streamlining of their workforce on a whim. On the other hand small business owners need help and can’t do without some sort of human support for their business.  Because they are so small they have to do a lot of work themselves. Small businesses d0 not have a big business budget to hire large amounts of people at a time. However, with a high enough volume of small businesses, more workers can be extracted from the overwhelming unemployed population and put to work. These new hires can help these small businesses to grow – the ultimate goal for any small business owner.

Resources:

Small Business Administration: http://www.sba.gov

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

American Jobs

Where Are They Now?

As Labor Day passes, this question is quite a glaring one. Unemployment is a big concern for the majority of Americans today: 9.1 % of Americans are currently without jobs.

Nevertheless, when the numbers of the Americans that are underemployed, along with those who have stopped looking for work, and those that are still looking for work (unemployed), are combined the figure comes out to be over 16%.

The Bureau of Labor Statistics released a report on September 2 noting that there has been a “next to zero,” increase in jobs creation – approximately 62,000 – and exclusively within the private sector within the month of August. However a conflicting expert interpretation within the Associated Press has stated that the government report has noted no new jobs have been “added” and no hiring for existing jobs have occurred. It would seem that jobs created within the private sector, although noted, do not make enough of an effect to be taken seriously. This is quite bleak, to say the least.

There have been some unusual circumstances that may be considered to be contributing factors that may have discouraged higher numbers such as the earthquake along the American East Coast at the beginning of August and the hurricane during the end. These are conditions that are hardly welcoming of anything more than people going into basic survival mode. Perhaps without these happenings, the numbers would have been better.

Experts had previously projected an increase of 93,000 jobs created for August 2011.

When the unemployment rate starts to decrease it will likely be quite minimal and slow, as the first thing employers are expected to do will be to increase the number of hours allotted to the now underemployed class – making them full-time workers. The rate will also stay high because the people that were previously not looking for work, and not counted as unemployed, will start looking for work when more jobs are added, and it is as that time that they will be considered to be unemployed – officially.

Income Supplements – How Some Americans are Surviving

Food stamps, food banks, and other social services are at an all time high and not exclusive to the unemployed. The underemployed, or low wage earners are now utilizing the government program in higher numbers than ever before.

15% of Americans are currently using food stamps as a supplement and only 60% of them are unemployed. Experts have stated that the number of households that will need to rely on food stamps will increase because the majority of new jobs being created are low wage positions as well the increasing number of Americans with expired unemployment benefits.

Psychological Impact

The unemployed are now sleeping more and working for less or for free according to a recent study by a Princeton University Economic expert.

As the amount of jobs being offered has decreased, along with a high rejection rate, a lot of the unemployed have stopped looking as intensely or at all. The time of sleeping in the morning hours has increased, as well as napping throughout the day. Those that are active are spending more time with children, doing more chores around the house, or participating in volunteer work. This has been a huge distraction for looking for work for wages. Employers are now reluctant to hire those that have been out of work for long periods of time because an assumed aloofness associated with staying out of work for an increased amount of time.

Both the unemployed and their potential employers are being psychologically impacted to a point that is proving to be an impediment to searching for a job, job creation, and new hiring.

Resources:

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

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

Financially Fit: http://www.financiallyfit.yahoo.com

Reuters: http://www.reuters.com

The Lookout: http://www.news.yahoo.com