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The Daily Digm (News)

Federal Employees Still Working Without Pay + An Important Lesson on Emergency Funds

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You may have heard that you should save at least six months of your income saved in your savings account to cover any future financial setbacks. But it’s easy to wonder why you can’t just use credit or help from family when extra cash is needed for an emergency – especially when saving for an emergency fund seems overwhelming. But what does that really mean, and can’t you just use credit or family when you need the extra cash for an emergency?

Unfortunately, Federal employees working without pay during the partial U.S. government shutdown cannot collect unemployment benefits, the Labor Department said, while those who have been furloughed can. This means the 420,000 workers deemed “essential” have also been deemed “ineligible” for jobless compensation. The Trump administration says it will call back another 50,000 federal employees to work without pay. Some 380,000 are currently furloughed.

With this unprecedented government shutdown numbers of people are now trying to figure out how to make ends meet. With a reported 72% of Americans living paycheck, it is now time to stop making excuses and start an emergency fund. Just for kicks and giggles here are some common excuses that people tell themselves about why they don’t need to save an emergency fund:

  • I can barely pay my bills, how on earth could I save on top of that?
  • I can ask my family for money if I really need it.
  • There are options to help me in a bind, like a credit card or payday loan.
  • I’m too young to need to save that much money right now, and can do it when I’m older and making more money.

Let’s say you decide to go one of these three routes instead of saving your own money…

  • If you can barely pay bills now, you will have a hard time catching up with your debt after the emergency is over.
  • If you borrow money from your family or friends, you will put a strain on that relationship, and they may become resentful of you if you don’t pay them back quickly.
  • If you use credit or loans irresponsibly, you may ruin your credit or fall into a debt spiral.
  • If you don’t start saving when you’re young, you’ll miss out on the benefits of compounding your cash and won’t have the luxury of having planned ahead.

So what is an emergency fund anyways?

The Simple Dollar breaks down what an emergency fund should be with their definition:

“An emergency fund is cash that you’ve saved up for the sole purpose of helping you maintain your normal life through the emergencies that life hands you.”

What are some emergencies people prepare themselves for by making an emergency fund? Check all that could apply to you.

  • You get a new job and can now afford to pay your bills and debt while you await your new paycheck cycle to start by transferring some of your emergency savings into your checking account.
  • Your car dies and you must get a new one, but you have money to put down a large down payment, getting you a new car and keeping your monthly payment at an affordable rate.
  • Your new car’s check engine light goes on, and now needs extensive work. You need your car to get to work, and have saved enough to fix it quickly, while using your insurance to get a rental car during the downtime.
  • You twist your ankle from playing basketball and can afford to cover the bills while you’re out of work for weeks.
  • You buy your first home, and during the winter your furnace breaks, costing you over $6,000, which you’re able to afford to keep the heat on for you and your family.
  • You finally get a meeting with the board to pitch your big idea and can afford to go out and buy yourself a nice suit.

How many did you check? Can you see yourself in any of those situations in the future, or did you come up with your own? And I know your next question… Where do I put my money to receive the biggest bang for my buck?

Bankrate.com recently published a comprehensive comparison guide by surveying 4,800 banks and credit unions across the country to give you the ability to make the best decision on where to put your money. This comparison will help you maximize the yield from your deposits. Here’s a link to that guide: https://www.bankrate.com/banking/savings/rates/

Ash Exantus aka Ash Cash is one of the nation’s top personal finance experts. Dubbed as the Financial Motivator, he uses a culturally responsive approach in teaching financial literacy. He is the Head of Financial Education at BankMobile and Editor-in-Chief at Paradigm Money. The views and opinions expressed are those of Ash Cash and not the views of BankMobile and/or its affiliates.

The Daily Digm (News)

T-Mobile’s Dream of Telecommunications Domination Gets the OK + How to Create Mental Toughness While Pursuing Your Dreams

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T-Mobile’s $26 billion takeover of Sprint finally got approved by a federal judge, a move that will leave most wireless consumers with three major operators to choose from, including Verizon and AT&T. More than a dozen attorneys general had sued to block the merger that had already been approved by the Justice Department and Federal Communications Commission. The administration has required T-Mobile and Sprint to sell some units to pay-TV operator Dish Network as part of the deal.

Dream chasing isn’t for the faint at heart. It can take years before one sees the financial payoff of what was once an idea. T-Mobile is probably patient on the outside, but internal it is jumping for joy. It took them a few years to get to this point, but I’m sure they will be relieved at the fruits of their patients.

When building a business, your goal has to be more than money, or you will ultimately fail. Your drive has to be based on principle, change, and something greater than yourself. Here is how to stay mentally tough while pursuing your dreams.

Personal Development. The road to success is paved with character and growth. Personal development is one of the key drivers that sustain you on the path of your dreams. Trustworthiness, keeping your word, and dependability are imperative to any industry. It doesn’t matter if you’re a musician or painter, lawyer or doctor, these traits and non-negotiable and forever transferable to success.

Take Breaks. To get there, you must rest one mile at a time. The grind is overrated. Reflecting on how far you’ve come energizes you for the road ahead. Burnout is a danger to your accomplishments and leads to a failure by default.

Stay Hungry. Stay Foolish. Steve Jobs popularized this quote from an ad in The Whole Earth Catalog. It read Stay Hungry. Stay Foolish. We come to a point when we are happy with a level of progress and think we’ve learned everything. Accepting the truth that we never stop growing, and there is no limit to our success gives us the ability to keep going. To continue, you must never settle. You must always seek new ways of fixing things and solving problems. Discover new opportunities and be open to learning more.

Faith. Steve Jobs also mentioned faith throughout his journey. Believing so deeply in an idea that you make it come to life. Belief takes ideas and materializes them; and when you realize you can actually make something come to life, the sky becomes your launching pad, not the limit.

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Amazon Plans to Add 15,000 Jobs + How to Prepare for the Job You Want

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Amazon says it will hire 15,000 more people at its Bellevue, Washington, campus, as part of the company’s effort to allocate new workers after it abandoned its plans for New York City. The e-commerce giant had issues in New York trying to open a facility there, called Bellevue, where 2,000 employees are already located, a “business-friendly city.” It’s also close to the company’s Seattle headquarters. This is good news for those in the job market but if this isn’t what you are looking to do then how do you make yourself valuable in the job market?

Here are four ways to prepare for the job you want no matter your age:

1. Focus on Your Strengths, Not What You’re Lacking

Whether you are 20 years old or over 40 instead of focusing on your age, you need to focus on your strengths. Many young people with limited experience or older people who may not be up to date with the latest technologies focus on what they’re lacking, and this is a big mistake. Do you have the qualifications for the job? Can you bring value to this position? Whatever your strong suits are you should play that up in your resume, cover letter or communications with the recruiter. It’s easy to focus on why you can’t get the job, but the trick is not to let that get to you. Focus on your value!

2. Attack Your Job Search from All Angles

Networking, Answering ads and/or working with recruiters are the most effective ways to land a job. It is important that you just don’t focus on one method but all three. Networking obviously is the ideal way because it allows you to communicate your value directly, but the other methods have their benefits as well. Be proactive and use each method effectively.

3. Show/Explain Your Leadership Abilities and/or Innovation

Leadership and taking the initiative have nothing to do with age. Young leaders and old leaders can be more or equally effective as those who have the “ideal” age. Focus on your leadership abilities and be sure to display this to your current or potential employee. Also, make sure you are keeping up to date with current trends in your industry. This will allow you to show your innovation and add more value to your company.

4. Ask For What You are Worth

Lastly, ask for what you are worth. Don’t let being “too young” or “too old” deter you from asking for a salary you deserve. In fact, trying to downplay your worth may very well backfire on you. Also, if you have been with a company for a long time and your salary outpaces what the position is worth making sure you are adding to your skill set and not staying complacent.

Following these four tips can help you gain or retain employment. What are some other ways? Comment below>>>

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New Survey Says that Young People Don’t Like Job Hopping + How to Get Paid What You’re Worth

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Contrary to popular belief young people are not keen on job-hopping as most people think. According to a new survey, U.S. millennials and Gen Zers want to stay at their current companies for an average of 10 years and six years, respectively. Additionally, they say work is a major part of their lives, with 65% of people in Gen Z and 73% of millennials saying it’s part of their identities, according to a Zapier-sponsored poll. The age groups’ actions reflect the findings: Seven in 10 say they constantly check work messages outside the office. This is great for corporations but what does that mean for business owners?

If you are a freelancer or entrepreneur you know all too well the fight to get what you are worth. You will constantly be bombarded with offers to work for less or even for “exposure” as many like to call it now. But how do you gain the confidence and know how to charge and get what you’re worth? Here are 3 tips:

Build Your Resume. It’s said that if you do what you love you’ll never work a day in your life. Pursuing your passions and getting paid for it is the ultimate professional dream. You may have to start by working for free or at a discount rate to builds skill, ability, and your resume but once you have some stats under your belt its time to get that money… Keep in mind that if you are only in it for the money it will be difficult to experience long term financial gains so make sure you are pursuing your passion not only the paycheck.

Set a Standard. Pioneers have the ability to set standards. And even if you are providing services already in the market, no one can deliver them quite like you. Style and quality set you aside from others opening up a field of buyers seeking exactly what you offer.

Don’t Give In. A colorist (a person who literally adds color by hand or digitally in films and visual media; yes, there is a path for everyone) from Brooklyn, NYC once told me he had to be firm with pricing because he didn’t want to become that guy who works for free. After you have put in the work and set a standard you must not give in to fees below your ability. Yes, flexibility is key but don’t short change yourself. Getting paid your worth is ultimately the result of you believing in your ability and knowing there are people who will pay for it.

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