5 Ways Americans Sabotage Their Savings

While the latest news proclaims that the economy is rebounding, the truth is that most Americans are wasting their money. Spending is up, which is good for the economy — but can spell bad news for consumers on a personal level.

"Consumers who find themselves mired in debt are serving the larger economy at great personal sacrifice," said Stuart Vyse, professor of psychology at Connecticut College and author of "Going Broke: Why Americans Can't Hold on to Their Money."

"The economy runs on consumption, and as a result, personal savings is never mentioned because it is considered counterproductive and a drag on the economy," Vyse said.

According to the Employee Benefit Research Institute's (EBRI) annual Retirement Confidence Survey, Americans are living longer — and they do not have anywhere near enough saved in their bank accounts for retirement. In fact, the report found that the majority of Americans (57 percent) have less than $25,000 in total household savings or investments.

Where and How People Spend Money Instead of Saving
Certainly recent economic hardships have reduced disposable income and the ability to save for many, but are there other factors influencing how Americans spend money? We asked financial experts why Americans can't seem to keep their money in their bank accounts.

1. Lack of Personal Finance Education
"One of the main reasons that people don't save money in the short- or long-term is that they're simply unfamiliar with concepts such as setting a monthly or annual personal budget and saving for retirement," notes Andrew Schrage, co-owner of MoneyCrashers.com.

2. No Emergency Savings
Too many people have experienced unexpected financial hardship, caused by being out of work for long and short periods of time, or having a car breakdown or health crisis that an emergency fund could help cover.

"Despite how high a salary might be, one is likely to be broke due to the lack of preparation for emergencies," said Xavier Epps, owner of XNE Financial Advising, LLC in Woodbridge, Va. "Emergency savings is the key to financial success and without it, you're just making it more difficult to be financial stable."

According to the Bureau of Economic Analysis, Americans only saved 2.5 percent of their income on average for the month of April, 2013.

"Consumers should aim to save much more in order to cover unexpected expenses and possibly job loss," recommended Epps.

3. High Inflation
Some personal finance experts point to inflation as a big factor in suppressing people's ability to consistently add to their bank accounts.

"Our government deficit spending has skyrocketed, and the main cost of that spending is weaker buying power for the dollar," said Brian Luftman, founder and president of American Farm Investors in Lexington, Ky.

"Our government says inflation is at 3 percent, but Americans are paying significantly more for food, heating and cooling bills, gasoline and health care," Luftman said. "All of those costs have virtually doubled since 2008, and very few Americans are making any more money than they were in 2008. I think real inflation is 10 to 15 percent a year, and I don't see that changing."

4. Overspending Made Easy
"With social media like Facebook and Twitter and we can see what everyone in our own social circle is doing, what they are purchasing, and where they are eating, traveling and shopping," said Rachel Parrent, community engagement manager for Vantage Credit Union. "Many times it makes us believe that if they can afford it, so can we."

Simply put, too many people spend money they haven't earned.

"People fall into bad habits like eating out regularly or thinking that spending a little here, a little there won't amount to a lot by the end of the month," said Kathy Palmer, vice president of marketing at Vantage Credit Union. "Credit cards and electronic purchasing make it much easier to spend than having cash in your pocket."

These social pressures and the ease of spending combine to create an environment that "places enormous burdens on self-control" and how people spend money.

"All of the barriers to consumption have been removed: you can shop 24-hours a day, with or without cash on hand," Vyse said. "The urge to purchase something can be satisfied in minutes without ever leaving home."

5. Taking on Big, Long-Term Loans
"Perhaps the worst mistake people make is to assume large, long term debt burdens that are difficult to escape without the certainty of enough sustained income to support them," Vyse said. "In today's world, the most common examples are student loans and mortgage loans. If you have calculated incorrectly or if your income drops, these kinds of debts can have a dramatic effect on your life and well-being."

Should circumstances change and the borrower is unable to make monthly payments toward these debts, there is no quick-fix solution.

Considering that the graduating college class of 2012 accrued an average of $29,400 in student loan debt, an increase of 63 percent in under a decade, rising college costs definitely play a role in the ability to save.

"By having to make significant monthly payments for student loans shortly after graduating, it can be virtually impossible to start an emergency fund or begin saving for retirement," Schrage said. "It can even make staying on top of monthly bills a challenge, which often leads to credit card debt."

Brian Frederick, JD, CFP of Stillwater Financial Partners in Scottsdale, Ariz., adds that student debt doesn't just affect younger generations, but parents as well.

"I'm seeing more and more people sacrifice their own retirement savings needs and run up large credit card balances to fund their children's college," Frederick said. "This can result in credit card debt of $20,000 and up at high interest rates — without a lot of excess cash flow to pay down the debt, they just keep paying the interest and not a whole lot toward principal."

Tips to Jump-Start Your Bank Account
Devotees of personal finance guru Dave Ramsey know that the first step to gaining financial independence is putting away $1,000 for emergencies. Other financial experts recommend an even bigger emergency fund of three to six months of expense, to act as a buffer.

To get there, financial experts recommend eliminating everything but the basics to build up that emergency fund. That can mean cutting your cable service, cooking at home, trading high-lease cars for low-cost transportation, hosting yard sales or finding another job to supplement your income. It's drastic, but a necessary way to get through, and prepare for, some tough times.

"Look for ways to cut or eliminate your monthly expenses and bills," Schrage said. "Limit personal purchases only to those that you actually need, and clip coupons to save on groceries. All of these ideas should make for the ability to save at least a modest amount each month."

In addition to limiting spending, Vyse advised cultivating a habit of saving. He recommends having a certain percentage of deposits automatically diverted to a savings account.

"This way, money is saved no matter what else happens, and it does not require a deliberate action on your part," Vyse said.

Source: http://www.dailyfinance.com/

Are You The Tortoise Or The Hare?

Can you tell the difference between a new TV show and one from 20 or 30 years ago? I bet it's easy, and not just because of the way people are dressed, but mainly because everything goes quicker now, from scene transitions to how actors speak.

I remember being a new mom and seeing all sorts of programs for babies to learn to do things faster-from potty training to speaking and reading-and thinking, what is the rush? Why would I want my little girl to jump ahead of herself?

From a metaphysical perspective, you could say that time is shrinking and that's why everything is moving faster. Basically, the man-made concept of time is gradually vanishing and leaving room for a more unified experience of 5th dimensional reality: a quantum perception, if you will.

And yet, the more I slow down, the more I get done.

The more aligned with myself I feel.

And the more I enjoy what I'm doing.

If you think this sounds illogical or counterintuitive, think again. Pressure creates stress, and stress scatters the energy you require to see things clearly, finish tasks, and get a job well done. Rushing pushes you to jump ahead of yourself without necessarily knowing where you're headed, leaving gaps along your path that you may have to go back to and fix. Whether it's learning something new, launching a business, or accomplishing your goals, a slow, steady, step-by-step process always wins the race.

Going over what you wish to master slowly and repeatedly gives you the opportunity to recognize all the details involved in what you're doing. Once you own the nuts and bolts of any process, they become your skills, your tools, your experiences, and the realizations of your individual journey. They turn into assets that nobody can take away from you because you know them inside and out.

Slow Down To Be Fully Present In What You Do

This is as true for any external aim as it is for your self-exploration and personal or spiritual growth. One of my beloved teachers wrote a book entitled The Path To Enlightenment Is Not a Highway. So true! The ego-mind likes to push and rush and scatter your energy; those who like to control you exploit this. It gives them the power of using your own energy to keep the control-that is, until you decide to stop giving it away, take full charge, and learn to manage your life for your growth and success.

Life is not a race, and slowing down allows you to be fully present and aware of what you're doing and where you're headed. So whenever you catch yourself rushing, being pressured, or getting overwhelmed with the million things you think you must do, remember to breathe deeply to ground yourself in the present, and slow down. Nobody is going to slow things down for you: it's your job to gift yourself with the joy of doing things at your own pace and to gain the depth of experience that only a steady pace grants.

Source: http://soulguidedcoach.com/

WHOA! This MAJOR NEWS About Ted Cruz May Shake Up the 2016 Presidential Elections!

Senator Ted Cruz (R-Texas) has been perhaps the most vocal proponent of core conservative principles in recent memory. He fought President Barack Obama every step of the way on Obamacare and amnesty. And he was willing to risk government shut downs to stand up for limited government, despite cries of outrage from the Washington political establishment.
Now, Cruz’s closest friends who know him best (including his former college roommate) are joining him by forming an independent Super PAC, which is a MAJOR sign of him running for President in 2016!

The ‘Stand for Principle’ PAC filed papers with the Federal Election Commission on Friday, and the organization’s founder says it will be the go-to financial behemoth supporting the Texas senator in 2016.
Super PACs can raise unlimited amounts of money as long as they don’t coordinate their activities with political campaigns.
The emergence of a funding stream set up by Cruz supporter Maria Strollo Zack signals that the tea party firebrand is laying the groundwork for an announcement – and Zack plans to raise a ton of money.
‘We’d like to be $50 million by the end of March 2016, going into Super Tuesday,’ she told MailOnline on Wednesday.[...]
While Cruz can’t legally partner with Zack, his close lifelong friend David Panton gave the project a nod and will be its most visible volunteer.
A source close to the Stand for Principle PAC’s formation told MailOnline that Panton, a Jamaican Rhodes Scholar who once roomed with Cruz at Princeton, chose the name.
Zack, the PAC’s chairwoman, is a Georgia business development executive who said her firm’s primary purpose is to help startup companies get off the ground.
That firm, The Strollo Group, also has a small government affairs arm that lobbies in Georgia.
The new political vehicle, she said, is the first effort supporting Cruz to get off the ground, and will enjoy the support of his closest friends and allies, mostly on the Republican Party’s right wing.

via the Daily Daily
Maria Strollo Zack said the reason they are starting this organization is because “America craves, thirsts and hungers for strong, bold, principled conservative leadership.”
This is very exciting news, as unlike many “draft” PACs, this is as close as any Republican candidate has come to launching a real Presidential campaign. Cruz’s friends wouldn’t be starting this PAC if he wasn’t seriously ready to run.
If that Cruz news wasn’t exciting enough, reporter Dave Catanese spotted Team Cruz looking for Presidential campaign office space!

Sen. Ted Cruz has deployed advisers to begin scoping out office space for a potential 2016 presidential campaign, a source with knowledge of the move tells U.S. News.
Over the past several weeks, aides to the first-term GOP senator from Texas have been looking for available real estate in Houston, where Cruz lives with his wife and two daughters.

Clearly, with so many conservative Republicans spending the past few elections holding their nose on election day… this time they may have a no-nonsense conservative to vote for! Cruz is apparently running for President, and nothing- not even Hillary Clinton – can stand in his way.
Do you think Ted Cruz would be a better President than Barack Obama? Please leave us a comment and tell us what you think.

Source: http://www.thepoliticalinsider.com

The Next Great Channel: Video Advertising

Top 3 Placement Tips for Video Ads That Engage Well

Video marketing continues to be high on the list of new marketing trends online. However, to get the best results, understanding the science of video advertising is required. Creativity can make any ad sell, but by putting an engaging ad in the wrong spot, it can end up costing conversions. To market video ads more effectively, consider the following tips taken from the IAB Case Study:

Placement - Put your ads as pre-roll, in-text, or as banner ads on videos. The longer the video, the less likely it would do better as a pre-roll ad. Vary ad placement, leaving the lengthier ads for in-text or as banner ads. Customers who click on these types of ads already have expressed an interest in the content and thus are likely to sit through a longer ad.

Length - The best length for video ads depends on the placement. Pre-rolls do best with 15-second spots. The maximum length of 30 seconds is more effective on ads with complex messages, but not on the pre-roll placement. Also, 5-second ads are tested, but proved to be too short to convey any type of concrete message.

Type of Message - If the message is for branding purposes, or if the advertisement seeks to persuade the consumer to take an action, then the 15-second ads do best at conveying this type of message. However, ads that included emotionally resonant, complex messages must be conveyed with 30-second spots to get the message across completely. If the goal is to convey something with a deeper message than simple marketing, it pays to use longer ads that are not on pre-rolls.

Varying the placement, length, and message in ads, and tracking conversions, can lead to the best strategy for a particular audience. The basic guidelines provided by the IAB provide knowledge and information. There is an abundance of research that can ensure the creation of the best video ad strategies, but placement is critical in the overall success of the message. Just varying the length and placement of a video ad can lead to positive and immediate conversion results.

Source: http://www.madrivo.com/

How You Respond (or Don't) Says a Lot About You!

There are several things that bug me and one is bad manners, but I am not referring to the rude person in a social setting, but rather the bad manners in the online world. I have interactions as a customer and also as the operator of my own business that very often make me cringe, or just say to myself "Why?" You may beg to differ but I feel common courtesy and respect needs to be ramped up a lot more, as it says a lot more about the person who doesn't respond than the one being ignored.

The Tumbleweed Syndrome

You contact a business via its online contact form or email seeking more information about a product or service and then the tumbleweeds appear...

You may re-contact and do your best to give them some of your hard earned, but they never get back to you. What does this do? It annoys and frustrates you, but more importantly you end up going somewhere else to do business, which is more often than not inconvenient, but also not good for the business you wanted to frequent.

The Ghost Lead

One of my favorite annoyances, which has happened to me many times and makes me say the "Why?" to myself is when someone contacts me for a consultation and when I get back to them to arrange it I simply get no response.

Why did they bother? Why take the time to send a query, when I reply I get nothing? This one I don't get. I don't feel my reputation is harmed in this case, but the person who contacts me is simply saying they are either not serious, or severely lacking any integrity in the first place, and it certainly gives me a negative view of their brand without even having the opportunity to know them.

What do You Do?

I am not sure there is an answer to either of these situations. A business that is too busy, too incompetent or too lazy to respond to queries, probably deserves to lose business and to have negative stories told about them.

Those who book and then ignore may fall into the same category in my humble opinion. Perhaps it is a form of self-qualification in the sales process, as you may not find they were an ideal fit anyway, but I still have to ask why they bother taking the time to contact if they don't want a response!

With social media, web reviews, bloggers and good old fashioned water cooler discussions all too evident, businesses can't afford to be lax in either responding or following up. The damage potential is huge, especially when business owners are looking for cost effective ways to get new business.

Here's one cost effective one for you- respond to queries!

Am I being too precious, or are other business owners and potential clients finding the same level of frustration, and if so, what do you do?

Source: http://www.smallbusinessmba.com.au/

Independent Work - Tastes Great, Less Filling

At first glance comparing independent work with a beer commercial doesn't seem to make sense.  But segmentation data from the MBO Partners 2014 State of Independence study indicates there are similarities. 

Miller's "Tastes Great, Less Filling" ad series, which they used to launch the lite beer segment in 1974, is considered one of the most successful ad campaigns of all time.  The goal of these ads was to communicate the two key consumer benefits of Miller Lite.

As part of the 2014 State of Independence research we conducted a cluster analysis looking at why people become and stay independent workers (self-employed, freelancers, etc.).  Much like lite beer, there were two key motivations - flexibility and fulfilling work. 

Flexibility is more than just being able to take time off from work.

Independent workers value their ability to choose the type of work they do, when, where and how they work and who they work with. 

Independent workers see flexibility as a key benefit of the control they have over their work and their lives.  For many independents, flexibility is important enough that they're willing to accept lower incomes to have it.

Independent workers describe fulfilling work as work that engages them by matching their skills, interests and abilities. Many independent workers describe this as work they love, especially those in the creative fields.

But most independent workers do not say they love their work. Instead they describe their work as something they enjoy, are interested in, motivated by or provideing a sense of purpose. 

Interestingly, our cluster analysis shows most independent workers who report being satisfied or highly satisfied with independent work are almost evenly split between the fulfilling work cluster and the flexibility cluster as their main motivation for being an independent worker.

I don't think a "flexible work", "fulfilling work" commercial would be successful. But like the Miller commercials, these two attributes describe the main benefits of independent work. 

Source: http://www.smallbizlabs.com

Stillwater third best in U.S. for seeing fall colors

According to Travel & Leisure Magazine, Stillwater is one of the best towns in the U.S. for leaf peeping.

The magazine recently ranked the St. Croix River Valley third among the Top 20 "America's Best Towns for Fall Colors." Only Oakland, Md., and Lake Placid, N.Y., ranked higher in the magazine's September issue.

Travel & Leisure staff notified Stillwater Convention & Visitors Bureau officials a few weeks ago that Stillwater was in the running and let them know the final results on Friday.

"This is a really big deal," said Barb Trueman, a spokeswoman for the bureau. "Anytime we are awarded with something, it just helps us get people excited about coming to the Birthplace of Minnesota."

Trueman said this year should be a particularly good fall for leaf peeping.

"It looks like we are going to have a little earlier fall," she said. "We usually recommend that people plan a trip to Stillwater (for fall colors) sometime the last week of September and first week of October, but this year, it might even come earlier."

The best way to view fall colors? Take a boat cruise up the St. Croix River, Trueman said.

"They can see the cliffs and see even more color that way," she said.

Source: http://www.twincities.com