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Overworked? Take Back Your Down Time

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overworkingThe old adage that “All work and no play makes Jack a dull boy” is still true. Especially in today’s work format that often keeps an employee on the job long after the clock says, “Go home.”

Work can tend to overwhelm those who continue working when the have left the office. Keeping the technology at bay for a break now and then may have to become a conscious effort to avoid being drowned in the process.

Working a 40-hour per week traditional schedule is becoming more and more an anachronism. Data from the 2013 and 2014 Gallup Work and Education surveys showed that American workers put in an average 47 hours in a typical week. That’s almost an extra work day in the standard period. A lot of the activity takes place outside the usual work site.

Employees find themselves checking work emails at home or taking business calls after they have left the office. There are some ways to minimize the extra-office work time, including these:

baseball-recreationSchedule off-work activities for times when you are not expected to be at the office. Exercise classes or free gym time, for instance, can be set at early morning times. Paying a trainer to help you stay in trim may be incentive to adhere to a schedule. Make arrangements with a family member or friend to enhance the chances you will take the time. Set up activities one or two nights a week. Make it an objective to leave the office on time no less than 20 percent of the time.

Involve your co-workers in off-site activities. Set up a company softball or bowling team or other inclusive activity, for instance. That will strengthen bonds and offset the tendency to go on working when the workday ends. Talking shop is inevitable, but keep it at a minimum.

Turn off the devices. Smartphones and Tablets. They’re wonderful for keeping tabs on work-related things, but take a break! They keep you connected to the office and can impinge on family and relaxation time. In 2013, Opinion Matters conducted a study that showed 39 percent of workers checked their work emails outside of their regular work hours, and 81 percent said they do it on weekends. If you are serious about cutting the cord and giving yourself that respite from work that you really need, turn them off.

The job is important. We all know that. But the job will go better if you mix in some non-work activity. Try it. You’ll like it.

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    How Wise Are Lengthy Auto Loans?

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    car-loansWhen you buy a new car with terms stretching five years or even more, what are the financial consequences?

    Obviously, you’ll pay more interest. But in the meantime, your earnings likely will grow and the monthly payments will be more affordable. You might be able to increase your payments, erasing the effects of the interest.

    Car buyers are increasingly using this tactic to pay for vehicles, which are becoming more expensive all the time. Experian Automotive reports that 30 percent of all new vehicles purchased in the first three months of this year were financed over six to seven years. Sixteen percent of used vehicles, ditto.

    Lower interest rates, more extensive manufacturer warranties and the better durability of today’s vehicles make the longer pay-off periods acceptable to many buyers. People today tend to keep a vehicle longer as well, on average about eight years, according to automotive sources.

    Before diving into a long-term loan for a car, consider these factors:

    Look at overall costs, not just the monthly payment. The salesman on the lot will try to focus your attention on monthly element, but consider total price, down-playing sticker total and interest. Keep in mind that the interest on an auto, unlike mortgage interest, is not tax deductible.

    If you can come to the lot with a preapproved financial guarantee in hand, you can negotiate based on total cost and consider the details later. Compare the preapproved amount with the dealer’s offer and then make a decision. An Edmund’s interest rate calculator will provide an honest appraisal of how much you will pay over the term of a six or seven year loan. The calculator can be accessed at http://www.edmunds.com/calculators/simplified-pricing.html

    How long do you estimate you will have the vehicle? If you expect that you will have it for some time after it is paid off, you can look forward to a period free of car payments. The trade-off may be more costs for car repairs and upkeep. The amount you can expect for trade-in value also will have declined.

    Most experts in the field discourage using a long-term loan to purchase a used vehicle. Suppose your choice of a used vehicle is three years old. If you are still paying on it seven years later, it is 10 years old and for many vehicles, that is approaching the end of its usefulness.

    Depreciation is a factor. In the case automobiles, it begins the moment you drive it off the dealer’s lot. If you choose to sell the car in the first few years, you are looking at a loss if depreciation has outstripped the value. And the potential for accidents may enter into the picture. If you total your vehicle when it is three years old, for instance, it’s likely you still owe more on the loan than the vehicle’s current worth. That’s known in the trade as being upside down on the loan.

    A long-term loan may be the answer to your desire for a newer, safer car, but don’t leap until you are sure of all the financial facts.

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      Education Key To Women’s Financial Savvy

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      financial-literacyNot all of a woman’s characteristics in life are genetically determined, especially when it comes to personal finances. All kinds of examples, some of them very bad, enter into the equation. Lack of training leaves many females floundering when it comes to money.

      If it has never been an issue before, many females suddenly find themselves in adult roles with not a clue about how to manage their finances. What to do?

      Basic accounting and finance education can end the cycle and put a woman on the right course. Even if a woman never leaves home to become part of the workforce, she can apply the same principles of prudent living in her own household. The likelihood of spending some time at an outside job, however, is great. Then the need for financial savvy goes beyond housekeeping, basic budgeting and child rearing.

      Women need to know the fundamentals of such things as retirement plans, investing and general savings. It isn’t possible to assure that a husband will always be in the picture. Waiting for the crisis is not the ideal. Financial literacy, early and effective, will be the best cushion against the pitfalls that are part of life.

      If you have somehow arrived at adulthood without that education, what do you do to remedy the lack?

      Start with the resources closest to you. If there is an institution of higher education in your community, inquire about classes, seminars or other resources that are geared to fundamental finances. Most communities have resources to help women foster such skills. Start with the mayor’s office and someone will guide you.

      State agencies, including employment services, often can steer you to education opportunities, many of them gratis.

      You’ll be surprised as you start looking for resources just how many there are. Governments benefit from having citizens who are financially aware. They have a stake in providing opportunities for them to learn and are glad to share their resources.

      It’s never too late to work on personal financial savvy. Get busy now and see how fast you can gain control of your resources. You’ll be glad you did.

      Highly Recommended

      Women And Retirement Savings: Women outlive men and need a good retirement savings strategy. See what Forbes recommends.
      Budgeting: Use a popular app to keep track of your spending by using a budgeting plan.
      Bankrate.com General Personal Finance Topics: 17 Finance Blogs on Bankrate.com can help educate women and men in any area of finance.
      Bloomberg’s Personal Finance: Bloomberg helps women and men with personal finance. You can learn how to make your money last until you are 103 and learn how to adjust your regular savings each month according to algorithms set up to maximize your savings.

      Learn Good Money Habits Early

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      parents-guide-to-financial-Parents teach their children all kinds of things that are useful as the kids take off on their own. But too many parents don’t make personal finances part of their family education.

      A survey by Bank of America and USA Today indicated that one in three millennials didn’t learn how to manage their money before leaving home. Schools also failed, by and large, to pick up where the parents failed. Only 19 states require finance education as a condition for graduation. All this in the face of certain understanding that a knowledge of basic finances is key to successful adult living.

      Financial experts suggest that at least five of those basics, to be mastered before an individual reaches age 30, would include:

      Learn to create and then stick to a budget. That is your concrete picture of where your money comes from and where it goes so you face no surprises. Saves you coming to grips with the reality after the money is gone. Rather than just a simple income and outgo device, let it guide you in determining your mandatory expenses and what to do with what is left, ideally including some savings. Make use of some of the free mobile apps such as Mint and Mvelopes to track income and expenses. Faithfully keep tabs and make adjustments as necessary. There’s no such thing as a successful “set it and forget it” budget.

      Live not within but below your means. Studies show that more than 20 percent of millennials spend more than they earn. That’s asking for financial disaster.

      Not only are they going behind month to month, scraping to rob Peter to pay Paul, but they are ignoring the future, with no preparations for retirement. You can only build wealth by living below your income and investing a portion. It may call for some sacrifices. Look at your habits and see if you can save on eating out and bypassing some of the “impulse buying” that keeps you broke. Such a simple tactic as cutting out a $7 lunch could save you $1,680 in a year. Save the eating out for special occasions, not routine practice. Set up a small but automatic deposit to a savings account. Even a $25 infusion every two weeks can build up to $6.50 in a year.

      Manage credit. Credit cards are costly. Today’s young workers tend to overuse them and other credit matters. Try to avoid a balance than goes on month to month, draining off interest. Make more than minimum payments every chance you get and avoid late fees at all costs, because they cost. Your credit score will thank you. It hurts when you max out your cards and pay late. A bad score, in turn, will be a serious factor when you consider major purchases such as a home or car. If you are depending on a credit card for large purchases, chances are you should reconsider the purchases.

      Build an emergency fund. Millennials tend to ignore such advice. Only 33 percent have a fallback plan for emergencies. When you are just starting out in a career and facing the expenses of adulthood, it might seem impossible. But you should think of an emergency fund as an essential, not a luxury. If you suddenly face a medical emergency, major car or appliance repair or other unexpected expense, you’ll figure out the difference very quickly. The answer to such an emergency too often is to call on the credit card, and that just exacerbates the financial impact.

      Again, the automatic savings deposit in the amount you can reasonably afford, is the answer. Any windfall, no matter how small, should go into the fund. Couldn’t make it to that brunch you had planned? Into the emergency fund the savings goes. And so forth.

      Save for retirement. It seems a long way into the future, but it has a way of sneaking up on you. Only 29 percent of the millennials in the survey said they have started a retirement cushion. At their stage in life, concerns about retirement are competing with student loans that seem never to end. But starting early on retirement savings gives you the advantage of compound interest. That can mean a much cushier cushion when retirement arrives. The numbers show it. If you save $100 per month in a retirement account that earns 8 percent interest, it will mount up to $135,000 over 30 years. Delay the start of a retirement account by 10 years and you’ll have just over $55,000 – the difference between a comfortable retirement and a whole lot of penny-pinching.

      Highly Recommended

      Free Financial Education Course: You’ll find a 36 module curriculum to enhance your financial education. The site is free and can be used by parents, teachers or anyone interested in personal finance education.
      AFSA Education Foundation: Offers numerous free downloads containing all types of personal finance education. Courses are free and cover all aspects of money management.
      Dan Kadlec: Dan Kadlec writes articles about personal finance, the economy and financial education for TIME, Money, CBS and USA Today among others. Articles focus on a range of interesting topics everyone can benefit from.
      The Council for Economic Education (CEE): This organization is a leader in financial education for grades K-12 and have been in existence for over 65 years. They train over 55,000 teachers a year and their teaching influences 5 million students throughout the United States.
      Economic and Personal Finance Resources For K-12: Teachers will find over 435 financial literacy lessons to choose from.
      Financial Fitness: You’ll find a 108 page document helping parents teach their children about financial literacy. Sections include learning about checking accounts, debit cards, credit cards and setting a budget.

      Zero Percent Interest Rates On Car Loans

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      Zero percent interest rates on car loans draw people in to the dealership.
      Zero percent interest rates on car loans draw people in to the dealership.
      What could be better? Your new car and no interest to pay for 72 months. But be sure you understand the implications.

      A recent J.D. Power Dealer Finance Study said that offering zero percent interest is considered to be one of the most successful motivators to get car buyers into dealerships. The catch is that to qualify for it, the buyer must have an excellent credit rating. Many people don’t qualify for the zero percent interest rate.

      For those with less than stellar credit, dealerships arrange financing for your car they often add on 1-2% interest that goes directly into their profits. Although these numbers may seem small, they often add thousands of dollars to the price of your loan.

      Before latching onto the no-interest deal, look around. Many car dealers are currently offering cash-back offers that could be the more financially advantageous than the interest-free option. Some car sellers actually offer a choice between a no-interest and cash-back deal. Fiat Chrysler, for instance, will sell you its 2015 Jeep Cherokee SUV for no interest or a $2,000 cash rebate. Experts say the rebate is the better bargain, reducing the loan amount from $27,213 to $25,213. At 2 percent interest, that makes the monthly payment just $440, compared with $452 per month under the zero interest terms.

      Car buying is best in the late summer and early fall, when dealers try to clear their lots of the current year’s leftovers. The zero-interest offers are escalating, with many of the producers hoping to snag buyers to help in that process.

      The secret to getting in on the best bargains is to nurture your credit rating. A credit score of 754 can probably earn you a 1 percent interest rate. The rates go up as the scores go down. Getting preapproved for a car loan through a bank or credit union enhances your bargaining stance. The dealer is anxious to have you finance through him and may be willing to dicker on the interest issue.

      The important thing is to do the math before facing the decision. Factor in your credit score with the understanding that the higher it is, the more likely you will be to get a lower interest rate. There will come a point in the math at which you will find that zero interest actually can lower your payments.

      Regional incentive programs, down payments and trade-in values also will affect the bottom line. Remember, too, that zero interest deals usually apply only to certain cars on the lot. If you have something very specific in mind, it may not apply. Once you reach the point at which you qualify for zero interest, the dealer may lose his tendency to haggle. Just be sure before you sign that you have made the best deal possible.