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Naked With Cash: Jake and Allie, June 2014

Naked With Cash is an ongoing series at Consumerism Commentary in which readers share their households’ finances with other readers. These participants benefit from the accountability that comes from tracking their finances publicly and the feedback of the four expert Certified Financial Planners (CFPs).

For more information, read this introduction.

How Does a Company Care About Its Employees?

I’m in the middle, well probably the beginning, of a long-term organization project. I’ve accumulated a lot of stuff over the years, particularly since moving into a larger apartment seven years ago. If I want to live a more mobile life, I need to downsize somewhat. In this process, I came across a plaque I received from my former corporate job, including a note from the company’s CEO thanking me for five years of service.

(I never made it to ten; I quit that job to focus on my own business full-time.)

Does Getting Married Increase Wealth and Income?

The Urban Institute has issued a report stating the Millennial generation will have the lowest rates of marriage by age 40 than any previous generation. The report contemplates a variety of reasons for this shift, including a reduced role of marriage in a family household and the effects of the latest recession. But what does this mean for the financial future of today’s young mostly-singles?

Overcoming Competitive Inertia: Stop the Comparisons!

I grew up in competition. It was a part of my life, all over the place. And sometimes competition moved me to push my self far, motivating me to be excellent, and in other cases, competition broke down my will to excel. An individual reacts to competition different depending on the psychological factors, the situation, and how past competitions have played out. Because competition is everywhere in the world, particularly in a career or a quest for financial independence — not to mention just meeting personal goals one might set for oneself — look for ways to make competition work towards a positive outcome.

Microsoft to Lay Off 18,000 Employees: How an Acquisition Affects Your Job

Over the next year, Microsoft’s executive management plans to lay off 18,000 employees, including factory workers and those in professional positions.

Redundancy. As Microsoft acquired new companies, at least according to the news reports that tend to take a company’s press release and spokesperson responses at face value, they have the potential to take advantage of consolidated businesses. For example, when two companies merge, there may be no need to carry the legal team from one of the companies. The resulting larger company can probably function just as well with one legal team. Administrative departments can be merged and reduced.

Wealthy Shanghai Teens Are More Financially Savvy Than Average Americans

The Organisation for Economic Co-operation and Development (OECD) recently conducted a study, presenting a financial literacy test to fifteen-year-olds around the world, and has now published the group’s findings. The sample included 29,000 teens from eighteen countries (or, in the case of Belgium and China, two communities, Flemish and Shanghai). The test is designed to determine financial literacy and capability, with questions pertaining to income, taxes, borrowing, and money management.

If All Investments Are Expensive, Where Can You Invest?

Neil Irwin at the New York Times points out that all asset classes around the world are expensive compared to their historical prices. If that’s the case, is there any investment class available that has the potential to provide great returns over the long-term?

Stocks and bonds; emerging markets and advanced economies; urban office towers and Iowa farmland; you name it, and it is trading at prices that are high by historical standards relative to fundamentals. The inverse of that is relatively low returns for investors…

But frustrating as the situation can be for investors hoping for better returns, the bigger question for the global economy is what happens next. How long will this low-return environment last?

If You Don’t Like Your Job, Get Another One

This little tidbit of advice gets passed around frequently, whether by employers who feel justified in their poor treatment of employees or by motivational speakers who want to see the masses take control over their professional lives: If you don’t like your job, get another one.

Many people spend years of their lives — perhaps decades — working in unpleasant jobs. I have always believed that every individual owes it to his or herself to be treated well in any employment situation, even if it has taken me more time than I would have liked, in retrospect, to move away from toxic situations myself. In general, if you are in a bad situation, change the situation. It’s good advice, but unfortunately, the advice is often given by people who are unfamiliar with any particular individual’s specific situation. And reality can be a dark cloud hanging over the world of advice full of optimistic aphorisms and motivational quotes.

Grow Your Dough Throwdown: Second Quarter Results

Through the end of the second quarter, the S&P 500 has climbed 6.22%. That’s a nice increase, and the stock market’s performance has provided me impressive gains on paper in my overall portfolio. The bulk of my investments are split between tax-efficient bonds and a stock market index in my non-retirement accounts, and despite losses on paper in January and March, between dividends and market gains, I am satisfied with my financial situation.

What Is the Best Savings Rate?

People like rules of thumb and quick answers. When a complicated question can be answered by an authority with a simple response, the reaction is likely to be one of two possibilities: a feeling of well-being and satisfaction if the questioner is meeting the requirements, or motivation to improve if the ideal situation is not being met. So if that’s all you need, the answer to that question I’m posing today, a number that represents the ideal savings rate as a percentage of income, let’s go with an answer of ten.

If you can save ten percent of your income throughout your life, you’ll probably be fine; in fact, you’ll be in a better financial position that most of your peers.