For the past two years we have been hearing people ask, where are the jobs? I might be able to help shed some light & perhaps provide a more quantifiable approach to answering the question.
First of all, companies are having trouble setting productivity standards. We have seem a tremendous technological increase over the past two decades. During that Twenty year time frame, instead of asking an employee to do more, companies/ owners would just hire an additional FTE or PTE for the specific task. Today we have the resources and desire to set productivity standards. This can be accomplished relativity quickly and easily by either hiring someone to create a model for you, or just using current production standards as a base line.
Another item to consider is Outsourcing overseas. Outsourcing overseas by Fortune 500 and Fortune 1000 companies is larger than you think. www.abovetopsecret.com reports that 40% of Fortune 500 companies outsource something. Call Centers provide the most proof that outsourcing overseas is profitable. The trend is for IT type functions to quickly follow.
These statistics are not hard for me to believe, because I work for a Fortune 500 company for 8 years, and my job was outsourced shortly after I was recruited to another employer.
Saturday, November 20, 2010
Wednesday, November 3, 2010
The Budget Breakdown
Do you ever wonder if you are spending to much of your paycheck on one particular expense? If so, this might help. Given the economy downturn, I have been researching and evaluating what percentage of our household income is going towards each expense.
I first created a category for each expense. Those category's were: Mortgage to include taxes and insurance, Food to include groceries & dining out, Debt payments such as credit cards and student loans, Utilities like cell phone, home phone, internet, cable, water, trash collection, and sewer bills, Transportation to include car payments, auto insurance, and gas, Savings which only includes after tax transfers to your savings account, 529 plans if you have children, Entertainment & Club memberships, and Finally Misc Household Expenses.
Below is a good plan to follow when determining, if you should upgrade in house, buy that new car you been wanting, go out to dinner- again, or even look for savings opportunities on cell phone plan, auto insurance, etc.
Percentage of monthly income allocated to expenses.
30%- Mortgage - If you have a 2nd mortgage with a balance, refinance it so you only have one mortgage payment.
15% - Food - Make the grocery list, then clip the coupons
10% - Debt Payments - Focus on the debt with highest interest rate first.
13% - Utilities - Look at the service providers you are using and ask for discounts annually.
12% - Transportation - Put your Insurance out to bid annually. I recommend Farm Bureau's.
10% - Savings - Park the money and use on a rainy day. If it's not raining, play in the sun.
5% - Entertainment/ memberships - Ask for discounts & volunteer.
5% - Household Expenses - We all have these... repairs, doctor visit, etc.
Do not be discouraged if your finances don't fit exactly into this plan, just use this plan as a template to help shape your financial future.
I first created a category for each expense. Those category's were: Mortgage to include taxes and insurance, Food to include groceries & dining out, Debt payments such as credit cards and student loans, Utilities like cell phone, home phone, internet, cable, water, trash collection, and sewer bills, Transportation to include car payments, auto insurance, and gas, Savings which only includes after tax transfers to your savings account, 529 plans if you have children, Entertainment & Club memberships, and Finally Misc Household Expenses.
Below is a good plan to follow when determining, if you should upgrade in house, buy that new car you been wanting, go out to dinner- again, or even look for savings opportunities on cell phone plan, auto insurance, etc.
Percentage of monthly income allocated to expenses.
30%- Mortgage - If you have a 2nd mortgage with a balance, refinance it so you only have one mortgage payment.
15% - Food - Make the grocery list, then clip the coupons
10% - Debt Payments - Focus on the debt with highest interest rate first.
13% - Utilities - Look at the service providers you are using and ask for discounts annually.
12% - Transportation - Put your Insurance out to bid annually. I recommend Farm Bureau's.
10% - Savings - Park the money and use on a rainy day. If it's not raining, play in the sun.
5% - Entertainment/ memberships - Ask for discounts & volunteer.
5% - Household Expenses - We all have these... repairs, doctor visit, etc.
Do not be discouraged if your finances don't fit exactly into this plan, just use this plan as a template to help shape your financial future.
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