#debt #1Trillion #FinancialInstruments #FinancialBurdens #GoodDebt #BadDebt
Outstanding consumer debt in the U.S. has reached $1 trillion, according to recent reports.
Economists on news shows don’t seem terribly alarmed by that number, since much of it may have been racked up during the COVID-19 pandemic.
But there are lessons to consider here.
First, there is good debt and bad debt. Good debt can actually be a worthwhile financial instrument. Bad debt is likely to be just that: bad debt.
If you borrow money to buy a durable, life-necessary item, say, a house or a car, that’s an example of good debt. You need the item, you’ll have it for a long time, and you’ll eventually pay off that debt, even if it takes years, while you still have the item.
Such debt becomes a good financial instrument, presuming reasonable interest rates, because it can free up your cash to invest in other things that may pay a dividend that would well exceed the interest you are paying on your good debt.
It allows you to use other people’s money for the things you need now, while investing your own money to meet your future needs.
Another example of good debt is a credit card that gives you something back, i.e. cash, gift cards etc.
The trick in making this good debt is that you religiously pay off your balances monthly.
This way, you are not paying exorbitant interest rates the credit card companies charge, and you are getting something from the companies just for spending money.
Don’t worry if the credit card companies cry foul that people are not carrying balances. They get paid a fee per transaction by the places at which you spend money.
If you carry balances, the interest rate will likely well exceed whatever benefit you get back from the card company.
Bad debt is borrowing for frivolous expenses. If you borrow money to take a vacation you could not otherwise afford, you’ll likely be paying that debt back long after you’ve returned from your trip.
In short, you will have nothing to show for your debt other than memories of a trip.
During the pandemic, many people lost jobs, and had to use credit cards to pay for necessities, Many of those people are back to work now, so they can begin catching up on their debt. That’s why economists may not be alarmed at the big debt number.
The lesson here is, in general, go into debt out of necessity, rather than out of pleasure. And, make sure your debt rewards you.
We all indeed want to engage in pleasure activities, but if you go into debt to pay for those pleasures, make sure you know that you can pay that debt back in a relatively short time, thereby accruing as little interest as possible.
You’ll pay interest on a car, furniture etc. for a few years, and on a house for many years. But you will, in theory, have your cash to help grow your wealth as you pay your debt.
Debt can be a financial instrument, rather than a burden. Learn how to manage your debt, and your cash, wisely.
Peter
Category Archives: Uncategorized
NO ONE ASKS STUDENTS WHAT THEY THINK OF BOOK BANS
#BookBans #education #students #teachers #parents
Parents are clamoring for certain books to be banned in schools.
Do students want the same thing?
It appears no one cares what the kids think.
Maureen Downey, education columnist for The Atlanta Journal-Constitution, tackled this subject in her October 11, 2022, column.
“(Parents) often roll their eyes or guffaw when students themselves defend the books, suggesting that while they want to protect kids, they don’t want to hear their views,” Downey writes.
Downey asked students who have attended school board meetings and hearings what they would like to tell adults advocating book bans.
“I would ask them not even to change their viewpoint, but to keep and open mind. Even though I didn’t agree with what the parents were saying, I still listened. They refused to listen. Whenever someone would speak against book bans, they would start yelling. I also wish they were more informed. They were taking so many things out of context.”
That quote comes from Anvita Sachdeva, a senior at Forsyth County High School, outside Atlanta.
The whole debate about banning books and “protecting” kids centers on open minds vs. closed minds.
So many fear that schools will indoctrinate children into believing things that oppose what they are taught at home by parents, at church or in other non-school locales.
Past generations were easily able to reconcile what they were taught in church, at home and in school, even if there were seemingly contradictory narratives.
Why do some parents fear that no longer is the case?
Perhaps these parents so desperately want their children to think exactly as they do. They don’t want them exposed to ideas, religions etc., that differ from theirs.
Parental restrictions may be the purest form of indoctrination.
The other problem is that parents objecting to certain texts take certain passages out of context, thereby condemning the entire work without reading it in its entirety.
Something that may have a good, even wholesome, overall message may have passages that are less so.
That seems like the old forest vs. trees syndrome.
In short, children should be taught to have open minds, for it is a closed mind that prevents innovation. In that quest, they may come across words, attitudes and behaviors they find objectionable. But that’s not nearly as important as raising a child to think for himself or herself.
Parents certainly want to teach children right from wrong. There are certainly words, attitudes and behaviors that are universally right or wrong. But, children are unlikely to become gay, or trans, based on what they are taught in school. Those are not learned behaviors, but are natural feelings.
Exposing children to people, cultures and beliefs that may not sync up with what their parents believe can not only open their minds, but teach them to accept others for who they are.
By doing that, the world will be better. The children themselves will be better people. And, unexpected friendships could result.
That should be the goal of every parent.
Peter
FIGHTERS CAN BE GREAT, BUT …
#fighters #compromise #disagreements #DifferentViewpoints
“I will fight for YOU.”
Or, “I’m going to (pick one: Washington, D.C. or any state capital) to start a fight.”
These may be political slogans often thrown around. Of course, those who throw them around think potential voters admire fighters. And, fighters are often better in a political setting than, say, introverts.
But what they really mean is that they are going to fight for SOME of you.
Why? Some of the things they fight for are things some of their constituents don’t want.
Might a candidate be better to say they are going to work to get something done?
Of course, that doesn’t play as well as fighting words.
Government works best when those who represent us cut deals from which every side of the argument gets SOMETHING.
No one side may get everything, but every side gets something.
Such compromise has become a dirty word in many campaigns today. More candidates prefer to play to the extremes on either side, rather than the middle.
But the middle may be where the real action is. It’s certainly OK for someone to fight hard for principles. But, in the end, his or her principles may not fit all his or her constituents’ principles. Therefore, things get done when compromises are reached.
In any sort of relationship, one must understand others’ points of view. If his or her views conflict with the other person’s viewpoint, each viewpoint can be argued and debated. But, more often than not, there are some points of agreement.
Finding those points may be the secret sauce of compromise.
Compromise becomes the secret sauce of action. We expect action from those who represent us.
Think of the many friendships, or other relationships, you have. Do you ONLY relate to those with whom you agree on all things? Not likely. Most married couples don’t agree on everything. Therefore, compromise enters the relationship. You can like, or even love, someone who may not agree with you on all things.
If a person’s views don’t match yours, do you end the relationship? If you do, how does that make you feel as a person? How much respect do you have for the other person’s feelings or ideas?
In short, is the relationship more important to you than any opinions?
A great way to preserve relationships among those with differing opinions is to refrain from talking about things that will cause disagreements.
In politics, or many other relationships, that may not always be practical. Therefore, finding the things you all agree on becomes paramount.
Among friends, family etc., finding what you all enjoy discussing and sticking to those things can work wonders in preserving relationships.
In summary, compromise is not a dirty word. Diversity in thought can enhance everyone’s life. To quote an old adage, you CAN disagree without being disagreeable.
Peter
ACTORS, WRITERS STRIKE AS REVENUE, TECHNOLOGY CHANGES
#ActorsAndWritersStrike #RevenueStreams #TechnologicalChanges #jobs #workers
Television actors and writers are on strike over residual pay and their futures with artificial intelligence.
This is not a simple dispute, with big-money studios taking more profits out of the hides of those who create their products.
The whole media revenue stream is changing, with streaming subscriptions becoming a bigger part of the revenue stream, vs. advertising.
In general, subscription revenue is lower than advertising revenue.
Print newspapers went through this a few years ago. Advertising revenue fell, subscriptions dropped etc. There was a big bloodletting of jobs in that industry at the time.
Now, as more people are cutting the cord to cable, and streaming their entertainment online, revenue for cable providers is dropping. Fewer people are watching “regular” TV, and that number keeps dropping with time.
With such unsustainable revenue declines, the studios and networks have to do something.
It’s understandable, with the comings and goings of shows, that actors and writers feel their pay is dropping. Of course, it’s not really dropping for the big-time stars. It’s just for the soldier actors who provide smaller parts, background personnel (extras) etc.
These folks are NOT raking in the big bucks, even when they have plenty of work.
They are working people, just like carpenters, plumbers and other unionized professions – if those professions are fortunate enough to still be unionized.
As for artificial intelligence replacing some of these folks, studios should be aware that there is NO substitute for raw, human creativity. Certainly, human brains will be at the wheel when AI “creates,” but AI would simply copy past likenesses, for which those actors probably will not get residual pay. Or, if they do, it won’t be nearly as much as they would make for live appearances.
Technology can be a godsend for consumers. Getting something useful, or entertaining, for less money is a goal for every consumer, no matter what one buys.
But, we all have to remember that the less we may pay for something, the more people are going to lose jobs, careers and livelihoods.
Just as elections have consequences, technological revolutions have consequences. The difference is we can change electoral results at the next election. We can’t stop technological revolutions. That’s why no one can go home at night from work and believe he or she can never be replaced.
When the replacement comes, it comes as a shock to those affected. It’s important for everyone to have multiple revenue streams in their households.
Some machines can do things better than humans. Usually, the human touch adds quality to any product or service.
If companies care about quality – most say they do – they need to reckon with new revenue streams without compromising that quality.
If you work for a company facing revenue challenges, don’t just complain about how much executives are making. (It can easily be argued that executives make too much in most companies).
You have to figure out how your future will be impacted, and act accordingly. All the complaining in the world about executive pay isn’t going to change things. Some companies might be wise to curtail some executive pay to keep some of their best workers, if that’s what it takes.
As the world changes, we all have to change with it, or be left behind.
Peter
GREAT RESIGNATION ENDING?
#GreatResignation #jobs #workers #employees #employers
Recent reports have said the so-called “Great Resignation” is ending.
Presumably, that would give employers more leverage, since people aren’t quitting their jobs in droves anymore.
Part of the reason The Great Resignation is ending may be that employers are taking better care of their employees, so they are staying put.
A warning to employers: Don’t get to confident in the leverage you may think you are getting back.
There are still labor shortages in lots of areas. New jobs, particularly in clean energy, electric vehicles and other new technology, are being created in good numbers.
Still, people staying with their employers can be a good sign for employees. Job hopping, though sometimes necessary, is not fun. A good stable work environment makes life better for most workers.
A warning for employees: Don’t presume your good, stable work environment will last as long as you want it to. In fact, other reports are showing employers going back to converting full-time positions to part time.
Today’s companies have to be flexible, and change with technology. They will be looking to shift costs and find efficiencies daily. Therefore, today’s stability can be tomorrow’s uncertainty. And, you won’t know when that change occurs, until it does.
The pandemic taught everyone that good jobs, and good employees, are both desirable. Employers constantly are working constantly to find the sweet spot of happy workers, happy customers and good profits.
Many employers have stepped up – most out of necessity – to take care of their workers as best as they can.
If you are happy with your work situation, keep it for as long as you can. But, have an eye out for changes that you can anticipate. Remember, if you see waste and redundancy in your workplace, it won’t be long before your boss sees it, too.
If you find yourself becoming no longer necessary, look for something else.
Remember, too, that there will be changes you cannot anticipate. Therefore, have a plan for the day you walk into work, only to find you are being laid off.
One such plan may start as a so-called side hustle. Income diversity eases unanticipated change. And, some side hustles can turn into full-time endeavors, or better.
While you are in your current job, try to be as useful as you can be. Show your employer – not necessarily in a flashy sense – how much you can do and how well you can do it.
In the past, workers were often advised to keep their heads down, lest they be chopped off.
That does not work today. As an employee, visibility is essential. Remember, too, that just being seen is not enough. Be seen and be useful to the maximum extent possible.
By most accounts, today’s workplaces are better than they were a few years ago. Still, that doesn’t mean anyone – employers or employees – should be complacent.
In today’s world, good situations seldom last for as long as the people experiencing them want them to.
Therefore, be visible, be diligent and be wary.
Peter
DON’T ROLL OVER; KEEP ROLLING
#RollOver #KeepRolling #circumstances #goals #success
Roll over!
You may ask a dog to do that as a “trick.”
You may applaud an infant for doing that, as he or she shows his or her first sign of independence.
But when adults “roll over,” they are seen as giving in or, worse, giving up.
Instead of rolling over, keep rolling.
We are often tempted to roll over. Those who wish to dominate us want us to roll over.
They will frustrate us to the point that we, indeed, want to roll over.
If you must tolerate the frustration others impose on you, tolerate it without rolling over.
If you don’t have to tolerate the frustration, find a situation from which the frustration disappears, and you can do what’s best for you without interference.
Alas, it’s so much easier to just roll over. However, successful people don’t look for the easy thing. Instead, they face the hard thing head on. They may indeed roll with the punches, but they do not roll over.
They may not find success instantly. For some, it may take 40 years or more to become an overnight success. In all that time, they did not roll over. They kept rolling.
Todd Beamer told his fellow airline passengers on Flight 93 Sept. 11, 2001: “let’s roll.” The passengers stood up to the hijackers. The plane crashed in a field in rural Pennsylvania. But their actions prevented the plane from crashing into the Pentagon in Washington, D.C. All those passengers, including Beamer and the flight crew, died. But they did not roll over. They rolled.
Sometimes, circumstances prevail. Sometimes, all the fight and effort we can muster does not get us the results we want. Sometimes, we do not outlive our obstacles.
Still, that does not mean we should PRESUME circumstances will always win. Instead, we keep rolling in the right direction. We roll toward the goal. We don’t stop. We don’t roll over.
Those who want to dominate us – get us to roll over – will insert more obstacles in our way, to the best of their ability.
Some of those obstacles may stop us temporarily. They may tempt us to roll over. But, with every fiber of our beings, we keep rolling.
On some days, we may have to look for the strength to keep rolling. We do that by telling ourselves that every slammed door eventually will take us to an open one. We hope to remain upright to the cause or goal. If we get knocked down, we get up.
To paraphrase an old adage: You will find me either at the top of the mountain, or dead on the side. But I will not go back to the bottom.
In short, don’t roll over. Keep rolling.
Peter
WORKERS, PAY AND JOBS
#workers #pay #jobs #employers #employees
A local company was looking for “medical professionals” for $12 to $15 per hour, according to an electronic billboard.
Just down the street, at Buc-ees, they are paying non-professional labor up to $16 per hour.
And, Buc-ees has 401(k) matches, paid time off and other benefits.
It’s unclear what else you would get at the local company looking for “medical professionals.”
This contrast illustrates today’s labor market. In fairness to the local company, it’s unclear what type of “medical professionals” they are looking for. If they are looking for nurses, for example, it’s doubtful in this market that any nurse would work for so little, unless there was some other, overriding benefit to working there.
Buc-ees, a chain of highway rest stops that tout clean restrooms, loads of gas pumps, electric charging stations and an array of food and other items, is more like a Wal-Mart, in size and variety, than your basic convenience store/gas station.
Buc-ees makes no bones about wanting to take care of its work force as best it can.
More employers are encouraged – perhaps being forced – to be more rewarding to its workers, given the staffing shortages in nearly every industry.
It’s worth noting that some of the higher paid professional classifications, as in technology and media, are laying off people these days. These folks are likely to land on their feet in this labor market.
The COVID-19 pandemic changed the labor landscape perhaps forever. As businesses closed to prevent disease spread, workers lost their jobs in large numbers, or had to work from home. As they are now gradually coming back into the workforce and workplaces, they are re-evaluating what’s important in life.
It’s dangerous, particularly for employers, to give workers a lot of time to think.
The workers who are re-evaluating their situations are not, for the most part, lazy and just want to stay home. Their safety, their children’s education — kids had to go to school from home, too – and other factors are causing them to calculate whether what they were doing before Is worth going back to. As day-care options dried up during the pandemic, parents are now left looking hard for affordable child care, so they can go back to work.
Couple that with new, post-pandemic demand for goods and services unavailable for a long time, and they add up to more choices for workers.
More choices for workers mean more competition by employers.
This is good for all concerned. Certainly, we are all paying higher prices for things largely because employers have to give workers more. But, in the long term, both employers and employees will benefit.
Employers will have to try to find the sweet spot between not alienating customers with higher prices, and attracting and keeping workers.
This effort should create better places to work, and, ultimately, better products and services.
The employees will be compensated better on the job, although they may lose some that benefit through higher prices for things they need. Still, they will, as a whole, be better off in the long run than they were.
If you are a worker, evaluate your options with care, now that you have more of them. If you are an employer, find that sweet spot quickly, hire good people and your business should thrive in the long term.
Peter
IT’S NOT ABOUT FINDING SOLUTIONS; IT’S ABOUT WHOM TO BLAME
#blame #solutions #politics #DifferencesOfOpinion #CultureWar
“Most Americans could … be considered pragmatic moderates on the majority of political issues. While research (shows) some polarization has increases, it appears to have been exaggerated.”
So writes Gail Sahar, professor of psychology at Wheaton College in Norton, Mass. An article, adapted from her book “Blame and Political Attitudes:The Psychology of America’s Culture War,” was published June 21, 2023, in The Atlanta Journal-Constitution.
Sahar believes that the basis for democracy assumes people can reason. When we underestimate the American public’s ability to rationally consider issues, we undermine our nation’s foundation, she writes.
“The current focus on blame has emerged as the missing link connecting ideology to attitude across a range of issues,” she writes.
In current political discourse, people not only want everyone to follow what THEY believe in, but also want to blame someone else when things go wrong.
To paraphrase the late U.S. President Ronald Reagan, the U.S. Congress would get more done if they cared less about who gets the credit. The converse is also true. If nothing gets done, the other guy is to blame.
This culture of blame, as Sahar calls it, may arouse strong feelings on both sides of an issue. But, we always find an excuse to blame the other guy. Therefore, nothing of consequence gets done.
What if we all, regardless of core beliefs, focused on what we can accomplish, instead of what points we can score against the other guy?
The result would be incremental action toward the common good. Incremental actions, when added up, can yield real accomplishments.
What would help this process is everyone agreeing on facts. When one side doesn’t get its way, it can tend to say the other side was wrong, or fraudulent, and can tend to invent its own set of facts.
Then, to emphasize the point, they keep spouting this set of “facts” as if it were true, thinking enough people will believe them.
In most instances, there is one truth. Anything to the contrary is, at best, “spin,” or, at worst, false. Once the actual truth is discerned, we can come closer to agreement on what to do, or not do.
Facts can certainly get in the way of a good narrative, or a good conspiracy theory. Although some in power fit the category of wanting to screw, or blame, the other guy, most people want to know the truth, find ways to apply that truth to the problems at hand and find solutions.
Complete solutions may be elusive on first pass. Therefore, incremental solutions tend to produce more agreement.
Most successful people believe in the phrase, “Go big, or go home.”
In today’s discourse, that may be a pipe dream. We will get more done amid differences of opinions and worldviews if we start small. Then, after a time, we can go on to the next small thing. The toe-in-the-water approach may seem pointless to some. But, it may be the best way to arbitrate differences and get to real solutions.
There are big differences of opinion in as diverse a country as ours. It’s difficult to celebrate differences. It may be better to acknowledge them, find points of agreement – or, at least, compromise – and move toward solutions.
The journey toward solutions may be long. But, those who are successful in whatever they do usually find the journey more worthwhile than the destination.
Peter
FEAR, WORRY, THOUGHT AND GOALS
#fear #worry #thoughts #goals #IrrationalFear
“The only thing we have to fear is fear itself,” said President Franklin D. Roosevelt.
Or, to paraphrase a Mayo Clinic TV ad, when uncertainty hits, fear replaces thought.
Our thoughts are so cluttered with fear, worry, and stress, that we can’t focus on our goals,” writes Darius Foroux, in a Pocket Worthy article that advocates having a mantra to fight off worry.
Fear and worry are natural phenomena. Some politicians, in their messaging, use it to their advantage.
And, as Foroux writes, we spend lots of time worrying about things that will never happen.
It’s not to say we should fear nothing. But we tend to create fears and worries when bad circumstances befall us.
The best way, as Foroux points out, to combat worry is to have goals and focus on them.
That can be easier said than done, but it’s probably a good way to start to minimize fear and worries in our minds.
When someone we know or love goes on a trip, they often tell us to think good thoughts to make the trip safe and successful.
But, getting back to Foroux’s point, having a goal to focus on can often occupy our minds to the point that there is little, if any, room for worry and fear.
And, as the Mayo Clinic ad continues, answers, in the form of research, eliminate uncertainty, thereby eliminating fear and worry.
What the ad doesn’t say, but may imply, is whether those answers turn out as expected, or whether they ultimately lead to a breakthrough.
But if you focus your thoughts on your goals, you can create certainty when uncertainty tries to creep into your mind.
We all want to live a worry-free, fearless life. That may not be possible. But facing fear by focusing on goals can help mitigate it.
For example, if your goal is to be successful at your job, focus on doing what you need to do to make that happen, rather than focusing on what might happen to you if you fail.
It can be a tall ask for some people whose mind cannot help being fearful, because of a mental illness or deficiency.
Those folks may need professional help to overcome what they fear – often irrationally.
But those of sound mind can create thoughts that fill the mind so there is no room for fear or worry.
So, are you too often fearful or filled with worry? If so, what do you worry about? Is it something that may never, or is very unlikely to, happen?
What would make you so happy that you would become fearless or worry-free?
Can you acquire or achieve such happiness? What do you have to do to acquire or achieve it?
Happiness doesn’t always come quickly, naturally or promptly. It often requires us to do something that may not pay us off immediately, but will pay off over time with consistent action.
Fear and worry are much like foods for which we do not have a taste. Eating, or thinking, something more pleasant is the best solution.
Peter
RUDENESS ON THE RISE; WHY ARE FOLKS SO ANGRY?
#rudeness #anger #frustration #incivility #abuse
The sign said: “Attention! Our employees have the right to be treated with dignity and respect at all times. They should be able to do their jobs without being physically or verbally abused. Most people respect this. Thank you for being one of them.”
That sign was displayed at an office at Piedmont Hospital in Atlanta. Nedra Rhone, “Real Life” columnist for The Atlanta Journal-Constitution, saw that sign at a routine medical appointment. She’d never seen such a sign before.
It prompted her to discuss general rudeness in a column published June 8, 2023. She quotes Christine Porath, who has studied incivility for more than 20 years.
“This kind of incivility leads to negative outcomes not only for workers who experience it directly, but also those who witness it – all of which harms businesses and society,” Rhone quotes Porath’s Harvard Business Review article.
Porath found that 76 percent of respondents in 25 industries across the globe say they’ve experienced incivility at least once a month. Those levels have risen since 2012, poking holes in the theory that the epidemic of rudeness started with the pandemic, Rhone writes.
Stress, negative emotions, isolation, technology and lack of self-awareness are the main drivers of widespread rudeness, Rhone quotes Porath.
The problem has many consequences beyond hurt feelings. Some of the front-line workers who experience this rudeness usually are not the most highly compensated. In a way, it makes them easy targets for the frustrated.
Often, these folks have no ability to ease the frustration. But as they experience the abuse, the employees are less likely to stay in those jobs for very long. It is just not worth it to them.
The frustration and anger at usually something small – Rhone sites a hair colorist lambasted by a client because she didn’t like the color that was chosen – can follow a frustrated person home. That means the frustration, without a stranger to whom to release it, can be felt by family and other loved ones.
Therefore, the frustrated person takes it out on someone at home who had nothing to do with the problem. Over time, that can lead to family dysfunction, divorce, broken friendships etc.
Such frustration can be taken into the political arena. When one or more people are angry and frustrated, it’s hard for them to agree on anything. So, little gets done.
In the same political arena, fear and anger can overpower optimism and looking to the future. People become focused on what they perceive has been done to them, rather than what can be done for them hereafter.
How does one become a less frustrated, nicer person? For many, it takes work. It takes being thoughtful before speaking or acting. It takes realizing that the person on whom you may be taking out your frustration cannot help you solve your problem.
There are indeed rational, civil ways to address grievances in most cases. Don’t become the person who is not happy unless he or she is miserable, fearful and angry.
Think about what is good in your life. Think about whether the energy you spend in anger is worth affecting your health, your well-being as a person and/or your relationships.
People can be, and have been, wronged by others or other things. If you feel compelled to express that anger outwardly, don’t choose targets that cannot help you solve your problem.
Those targets will disappear eventually, and you’ll be much worse off for THAT, rather than the original cause of your anger.
Peter