Category

Money Management

Here’s How to Stop ‘Meeting Creep’ in Your Business and Boost Productivity and Morale

By Money Management No Comments

If each employee wastes almost six hours a week in pointless meetings, rescuing them could transform your company. Find out how to avoid unnecessary meetings. 

Image source: Getty Images

Early in my career I spent several years working in Japan. Meetings consumed large chunks of my days and meant I often had to work outside of office hours if I wanted to get anything done. I particularly remember inviting my boss to a troubleshooting meeting. He asked me, “Do you need me to participate in this meeting or can I use it to sleep?”

I was shocked. I told him I wouldn’t have asked him to join the meeting if I didn’t want him to contribute. Looking back, that whole situation illustrates the dangers of having too many meetings. Not only did my boss regularly work late into the night (or all night), he also lost significant amounts of time to meetings he clearly did not need to be in. His solution? Using unnecessary meetings to catch up on his missed sleep.

My experience in Japan was extreme, but “meeting creep” — which Urban Dictionary defines as a term for excessive meetings — is a problem throughout the world. A recent Microsoft survey of 31,000 people in 31 countries named ineffective meetings as the top obstacle to productivity. Needless to say, if you run a small business, there are better ways you can handle this problem.

Is meeting creep damaging your bottom line?

One study last year showed that professionals spend over a third of their time in meetings and that organizations could save an estimated $25,000 per employee per year by reducing unnecessary meeting attendance. That could make a significant difference to your business bank account. For bigger companies with over 5,000 employees, the report estimates annual savings of $100 million. Otter.ai partnered with Dr. Rogelberg, an organizational psychologist, to carry out the investigation.

I’m not saying all meetings are bad. Meetings can be a useful way to discuss issues, build consensus, and collaborate. But they can easily descend into time sucks where a lot is said and nothing actually gets done. The trick is to know when to use a meeting, and when an issue could be better addressed by email, chat messages, or a quick one-to-one chat.

If you, like many small business owners, are struggling to hire staff, think about how many man hours you could win by helping your existing team be more productive. The Otter.ai study showed that employees could save 5.7 hours a week by skipping unnecessary meetings. For managers that figure jumps to 7.5 hours. A quick back-of-the-envelope calculation shows you could gain around three extra days per staff member every month. If you have a team of 10, that’s 30 days every month.

How to stop meeting creep

As a boss, one of the biggest things you can do to prevent meeting creep is to talk openly about the problem. Actively encourage your team to have fewer meetings and to decline those that aren’t useful. If you empower people to say no, they’re less likely to feel obligated and waste time as a result. More widely, push people to think carefully about who they actually need in the room. Having too many participants — particularly those who don’t have much to contribute — can quickly make a meeting unproductive.

Take a leaf out of Shopify’s book. In January, the company purged over 320,000 hours of meetings and introduced a bunch of policies designed to reduce meetings across the company. For example, it got rid of all recurring meetings with three or more employees and introduced a no-Wednesday-meetings policy.

When you do organize meetings, make sure they always have a clear purpose and structure. Send an agenda in advance so that people have a chance to prepare. It also makes a big difference if you follow up on any action points before rather than during the next meeting. And if you catch yourself inviting someone to a meeting out of courtesy, stop yourself.

Similar rules apply if the meeting is virtual, with the added etiquette of muting and careful video usage that we’ve all got used to. One added danger of video meetings is that people try to multitask. That might involve attending more than one meeting at once or having the meeting in the background while they do other things. I know someone who regularly attends three meetings simultaneously and doesn’t properly contribute to any of them. Check out our guide on running a remote meeting for more info.

Bottom line

The pressure of too many meetings isn’t good for anyone. It doesn’t help your business, and surveys show it adds unnecessary stress and pressure for your team. You may not want to be as extreme as Shopify, but if you take steps to reduce unnecessary meetings, it could boost morale and make a difference to your bottom line.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool has a disclosure policy.

 Read More 

Americans in These 10 States Have the Most Debt

By Money Management No Comments

Total household debt has hit all-time highs as Americans grapple with high inflation and rising interest rates. Read on for the highest-debt states. 

Image source: Getty Images

Debt can be a heavy burden for most Americans, and with higher interest rates and cost of living, more people are struggling to make ends meet. While debt is common across the country, some states have higher levels of debt than others, as found by a recent LendingTree survey.

Total household debt hits all-time high

The latest report from the Federal Reserve Bank of New York reveals that in the first quarter of 2023, there was an uptick in total household debt — it reached $17.05 trillion, representing a $148 billion (0.9%) increase. To put things into perspective, this is $2.9 trillion higher than pre-pandemic levels at the end of 2019.

There has also been an increase in the number of delinquencies of most debt types. Specifically, credit card and auto loan delinquencies have seen an increase of 0.6% and 0.2%, respectively, bringing them near or above their pre-pandemic levels.

States with the most debt

LendingTree’s research team scrutinized over 370,000 anonymous credit reports to determine the states with the largest and the smallest non-mortgage debts. The study measured non-mortgage debt, including auto loans, credit cards, personal loans, and other types of debt, as of the start of 2023.

Rank State Average non-mortgage debt in December 2022 1 Georgia $45,778 2 Maryland $45,663 3 Texas $44,850 4 North Dakota $44,271 5 Mississippi $43,345 6 Florida $43,339 7 Arkansas $43,257 8 South Carolina $43,177 9 Virginia $43,074 10 Alabama $42,904
Data source: LendingTree study.

Georgia residents are carrying the highest average non-mortgage debt in the entire nation at $45,778. This placed Georgia just ahead of states like Maryland ($45,663) and Texas ($44,850).

Unfortunately, Georgia residents also have a lower median household income of $65,030, which falls below the national average of $69,021. On top of that, the state’s average VantageScore credit score also is below the U.S. average, measuring at 676 compared to 696.

Despite a significant median household income of $91,431, Maryland has the second most non-mortgage debt. This is due to Maryland’s high cost of living. The state’s overall cost of living is 24% higher than the national average, leaving Maryland ranked as the seventh-most expensive state to live in.

States with the least debt

On the other end of the spectrum, residents of Minnesota have the lowest average non-mortgage debt. Their average amount owed is $35,201. This puts them below other states with low debt levels like Oregon ($35,249) and Indiana ($36,001).

Household incomes for states with lower average non-mortgage debt tend to be higher, with Minnesota ($77,706) and Oregon ($70,084) leading among the bottom three. Indiana is an exception with a median income of $61,944, which is lower than the national average of $69,021.

Rank State Average non-mortgage debt in December 2022 50 Minnesota $35,201 49 Oregon $35,249 48 Indiana $36,001 47 California $36,106 46 South Dakota $36,479 45 Pennsylvania $36,593 44 Illinois $36,695 43 Massachusetts $36,875 41 Wisconsin $36,879 41 Ohio $36,879
Data source: LendingTree study.

How to pay off your debt fast

Paying off debt can feel overwhelming, but there are options available to help you achieve financial freedom. One approach to consider is a 0% balance transfer credit card. This type of card allows you to transfer your existing debt to it, and for a certain introductory period, you won’t accrue any interest as you work to pay down your balance. Make sure you don’t rack up more debt after transferring yours to one of these cards.

Another option is a debt consolidation loan, which allows you to combine all your debt into one manageable payment. This can help streamline payments and reduce the interest you’re paying.

Budgeting is also a crucial step in paying off debt. Analyze your spending habits and create a plan to allocate more money towards your debt each month.

Lastly, explore different debt payoff methods, such as the snowball or avalanche method, to see what works best for your situation. With these tips, paying off debt can become a feasible and achievable goal.

With the right tools and resources, you can manage your debt and move toward financial freedom. Consider speaking with a financial advisor, exploring debt management programs, or refinancing your high-interest loans as practical steps to help lower your debt. Remember, it’s never too late to take control of your finances.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More 

I Need a Loan. Can I Borrow From My IRA?

By Money Management No Comments

Wondering if you can tap your IRA when you need to borrow money temporarily? Read on to find out. 

Image source: Getty Images

It’s important to maintain a solid emergency fund so you have cash reserves to tap when unplanned expenses come your way. But sometimes, things happen, and the need to borrow money in a pinch may arise. And in that case, you may be thinking of taking out a loan against your retirement savings.

If you have your savings in an IRA, though, you’re out of luck in that regard. That’s because IRAs do not allow savers to take out loans against their balances. If you need to tap your IRA before age 59 ½, any money you remove will be considered an early withdrawal — one that’s subject to a 10% penalty.

Now if you have your retirement savings in a 401(k), your plan might allow you to take out a loan against your balance. But doing so could turn out to be a costly mistake.

Don’t borrow against or tap your retirement savings

When you take out a 401(k) loan, there’s always the risk of not managing to pay that sum back. And that could end up being costly, because a 401(k) loan that isn’t repaid on time is treated as a withdrawal. If you’re not yet 59 ½, you’ll be subject to the same 10% penalty that applies to early withdrawals from an IRA.

Now you may be inclined to just tap either retirement account if your need for money is pressing and just deal with the penalty. But keep in mind that it’s not just losing 10% of your withdrawal you need to worry about. You also have to factor in lost growth on the sum you remove.

Let’s say you take a $5,000 withdrawal from your IRA at age 30 to cover an unplanned bill. In that case, you’ll lose $500 right off the bat to the aforementioned penalty.

But let’s also say your IRA is invested heavily in stocks, and as such, your account generates an average annual 10% return before inflation, which is consistent with the stock market’s average, as measured by the performance of the S&P 500. If you don’t retire until age 65, it means that by losing out on 35 years of gains on your $5,000, you’ll short yourself around $140,000 in retirement income. That’s a much bigger deal than a $500 early withdrawal penalty.

Find another way to borrow

Borrowing from an IRA isn’t an option, and clearly, taking an early withdrawal isn’t a great one, either. So if you have to borrow money, look into different options for doing so affordably.

One option may be to take out a personal loan, which allows you to borrow money for any purpose. If you own a house, you can also borrow against the home equity you have in it. You may also be able to approach a family member for a loan if you’re comfortable doing so.

It’s not so unusual to wind up in a financial jam, to the point where you need to borrow money ASAP. But don’t turn to your retirement savings to get that money. Doing so is a move you might sorely regret in the long run.

Our best stock brokers

We pored over the data and user reviews to find the select rare picks that landed a spot on our list of the best stock brokers. Some of these best-in-class picks pack in valuable perks, including $0 stock and ETF commissions. Get started and review our best stock brokers.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More 

46% of Americans Say Their Incomes Aren’t Keeping Up With Inflation

By Money Management No Comments

As everyday prices rise, many Americans aren’t seeing their incomes increase. Find out what you can do to bring in more money if you need an income boost. 

Image source: Getty Images

Many people are struggling to get by as living costs continue to climb. Food, utilities, gasoline, housing, and other everyday expenses now cost more, and everyone feels the strain on their wallets at the checkout line. Many Americans struggle to meet their financial obligations now, especially if their income hasn’t increased to account for inflation. Discover how Americans feel about inflation and learn more about their financial concerns during this time.

79% of Americans say inflation is their top financial concern

TransUnion conducts a quarterly survey to explore how consumer finances have changed and to discover what changes consumers expect to see in the future. In the 2023 Q2 study, TransUnion found that most Americans have inflation on their mind.

A majority of respondents (79%) noted that inflation was their top financial concern. Fears of a recession and the rising cost of housing were other notable concerns. The study found that 46% of Americans reported that their incomes didn’t keep up with the rate of inflation. However, 48% said they believe their incomes will rise in the next year. Hopefully many people do see income growth soon.

Most everyday essentials and bills cost more now than in recent years. Continuing to pay for these rising expenses with the same income can be a challenge for many. Plus it can be frustrating when your employer doesn’t offer a raise or denies your request for one, especially if you’ve gone above and beyond in your role.

The good news is there are additional ways to make more money beyond a raise. If you have extra time in your schedule, you can boost your income.

Five ways to increase your income without asking for a raise

Getting a raise or a promotion can be an excellent way to boost your income. But that’s not always possible. If a raise or an alternate role in your company is unavailable now, there are other ways to make more money. Here are a few ideas to consider:

Do freelance work: Freelancing can be ideal if you have extra time to commit and want to make more money. You can work at your own pace and at a schedule that works best for you while you increase your checking account balance.Apply for a better-paying job: If your current salary isn’t enough, you may want to consider transitioning to a new job with a different company. You can apply for job opportunities with better benefits and compensation while continuing to work your current job.Open a savings account: If you’re saving money but aren’t keeping your extra cash in a savings account, you’re missing out. You can earn interest on your savings contributions by keeping your extra money in a high-yield savings account.Sell items around your house: If you need an income boost and could benefit from decluttering your home, you may want to consider selling some unwanted items. You can list items on Facebook Marketplace, Craigslist, or in local community groups.Rent out a room in your home: If you have a spare bedroom and don’t mind living with others, getting a roommate could help you cut your costs so your income goes further. You can check other listings in your area to get a feel for how to price the rental fee.

Are you looking for additional guidance on how to improve your financial situation? Check out our free personal finance resources to learn more.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More 

Finding Homeowners Insurance in California Just Got Harder. Here’s Why

By Money Management No Comments

California’s wildfires are making it hard for homeowners to find insurance. Here’s what residents need to know. 

Image source: Getty Images

California has already experienced over 1,600 wildfires so far in 2023, with more than 4,000 acres burned. But that’s only part of the devastation these natural disasters cause. They can also destroy entire communities and lead to costly insurance claims. And homeowners aren’t the only ones feeling the strain.

State Farm has recently announced that it will temporarily stop selling new homeowners insurance policies in California due to the high risk of wildfires and increased rebuilding costs. Here’s what homeowners insured by State Farm or those seeking new coverage need to know.

Why State Farm won’t sell new California homeowners insurance policies

After evaluating the risk that California’s wildfires posed and the amount it paid out in claims due to historic increases in construction costs, State Farm has made the decision to stop selling new homeowners insurance in California for the time being. The company will continue to sell personal auto insurance policies throughout the state.

State Farm says it feels this is necessary for the time being in order to preserve its financial strength and that it will continue to evaluate the situation over time. It’s possible that it may resume selling homeowners insurance policies in the state eventually, but only time will tell.

What this means for California homeowners

California homeowners who are already insured through State Farm won’t lose their coverage, and they don’t have to worry about their policies not being renewed when their current term ends. The company will continue to provide coverage and service claims for existing customers as it always has. But the increased risk of wildfires in the state could mean that these customers will pay more if they hope to renew their policy for another term.

Homeowners looking for new coverage still have about 115 homeowners insurance companies to choose from. But it’s likely that those who live in areas at high risk of wildfire will pay more with all of them, in light of the increased risk and higher building costs.

The state of California is doing its best to manage this by mandating that insurers reward businesses and homeowners who take wildfire mitigation steps with discounts on their policies. But discounts can vary widely from one company to the next, and the company that offers the most discounts isn’t always the most affordable. That’s why it’s usually best to get quotes from multiple companies before purchasing a policy.

Homeowners who haven’t already done so should look over their coverage and make sure the policy limits are high enough to cover a full rebuild of the home. They may need to purchase additional protection to account for the higher rebuilding costs these days. Those who have questions about how much coverage they need should reach out to their home insurer or a local builder in their area to gauge what these costs might be.

What California is doing about it

California’s government cannot mandate that State Farm sell homeowners insurance policies to its residents, but it’s doing what it can to make things easier on customers affected by the rising cost of homeowners insurance due to wildfires. In addition to mandating that insurers reward customers that take wildfire mitigation measures, it has also placed a one-year mandatory moratorium on non-renewals and cancellations.

Essentially, if the governor declares a state of emergency due to a wildfire, insurers cannot use that wildfire as an excuse to cancel or fail to renew a homeowners policy for at least one year following the disaster. This enables homeowners to focus on rebuilding their homes without having to worry about seeking new insurance coverage right away.

The state also offers its FAIR Plan, which is basic fire insurance coverage for those who live in areas at high risk of wildfire damage. These plans are often more expensive than traditional homeowners insurance policies, but they at least provide some protection for those who might otherwise struggle to get coverage from traditional companies.

Californians still have plenty of options for homeowners insurance coverage. But it’s never been more important to shop around before purchasing a policy. Every company evaluates risk a little differently, and some insurers may be willing to charge a homeowner a lot less for the same coverage.

Our picks for best homeowners insurance companies

There are many homeowners insurance companies to choose from. We’ve researched dozens of options and short-listed our favorites here. Looking for a green build discount or easy bundle policies? Want an easy-to-use interface? Read our free expert review and get a quote today.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More 

The 10 Most Recession-Proof Businesses in 2023

By Money Management No Comments

 These businesses are where the recession-resilient entrepreneur can thrive. Follow Focus / Shutterstock.com

Editor’s Note: This story originally appeared on Forbes Advisor. In 2008, at the height of the Great Recession, Maurisa Potts made a bold move. She quit her job as marketing director of Northern Virginia’s Crystal City Business Improvement District to launch her own marketing and PR firm. “Folks thought I was crazy,” Potts says now. But she may have actually been crazy smart.

 Read More