Passionate Pursuit of Purpose

How to increase your minimum wage!

Posted by on Feb 11, 2014 in Character Development, Finding Destiny, Perfect questions, Personal Finance | 1 comment

How to increase your minimum wage!

First the impact of raising the minimum wage for everyone:

1.    You will have fewer jobs:now hiring

Most minimum wage jobs are basic entry level jobs. These jobs require little training or specialized skills.

Which means; when the labor costs gets to a certain level; companies can often develop a machine to replace that job.  (PS the machine rarely takes breaks, doesn’t need days off, no health insurance). Some jobs will be replaced by automated systems and machines.  Fewer jobs for those with little training or skills.

How many baggers do you see at your grocery store these days?  How often do you self-scan your items? How often do you hear an automated response when you call a company?  Companies found a way to design away the jobs.

How many Cashiers does Amazon have?

2.    People have less incentive to improve themselves.

If your minimum wage is $11 to $15 per hour some people will be satisfied with that income level and not do technical training that makes them more valuable to society.

Every day we each rely on millions of people to make our lives more convenient and enjoyable.  Many of these people you will never see, and yet their contribution to our lives is vital.  The more skills and education people have the more they can contribute to the rest of us.

So, please go out and be the best “you” you can be, it will bless the rest of us.

3.    Your burger will get more expensive:

That increase in labor cost has to be passed onto the consumers.  It will increase inflation.  Prices of products increase and this will especially hurt those most sensitive to these price changes.  Those most sensitive to price changes are often the same who the minimum wage increase is designed to help.

The cost of living will rise and people will again scream for another increase to the minimum wage. The cycle and situation will remain the same…

So, What is the solution?

Minimum wage jobs are not designed to be a career.  They are a starting point not the finish line.

Here are 3 idea for increasing your minimum wage:

    • Education:  This doesn’t have to be a traditional college so here are some other options
      • Technical school, there are great programs for becoming a better you in several fields.
      • Apprenticeship, some of these are formal, or you can also find that talented local person who will train you in an informal process through experience.\
      • Military: most jobs in the military don’t involve carrying a rifle every day. They train you with real world skills that will transfer to your life after the military
    • Entrepreneurship: this is finding a need and filling it by providing a product or service.  Instead of looking for a job look for a way to serve others. If you looking for a way to get started try Dan Miller’s 48 low cost business ideas.(Affiliate LInk)
  • Persistence: If there is a position you want, keep pursuing it.  Then once you get it, keep pursuing and working hard.

“When you do more than you get paid for eventually you’ll be paid for more than you do.”- Zig Ziglar

Comment below: tell us what other ways people can increase their minimum wage?

 

facebooktwittergoogle_plusredditpinterestlinkedinmail Read More

Doing your taxes is as easy as managing your fantasy football team?

Posted by on Jan 23, 2014 in Perfect questions, Personal Finance | 4 comments

Doing your taxes is as easy as managing your fantasy football team?

1040One of the DIY tax programs describes doing your own taxes “as easy as managing your Fantasy football team.”  This may or may not be true depending on 3 factors:

1.    How good of a Fantasy Manager are you?

2.    How complicated your Tax situation is?

3.    How much time you plan on investing in your tax education?

How good are you?

I play in 3 fantasy leagues and I am a mediocre manager.  I spend probably 1 to 2 hours per week during the season reading news.  Then I listen to sports radio and watch 3 to 5 games each week.

During the 15 week season, I spend about 12 hours each week on football related education.  Not including listening to sports radio while driving.  I suspect the better managers spend even more time.  And the worst, ignore their teams, have guys on byes in the starting roster and finish last, and probably spend almost no time.

It is probably not a linear relationship and there is a lot of luck.  However, the more time you spend the greater your chances of winning your league.

How Complex are your taxes?

If you have no kids, don’t own your home, and your only income is from a w-2 job… File your own.  Your difficulty level does compare to “installing a light bulb, or being a bad fantasy manager.”  Easy peazy!

It is amazing how often smart people miss things deductions on their tax return.  Or deduct things that could get them in hot water with the IRS.   Just because you are smart at your specialty, doesn’t mean you will prepare your taxes correctly.  It seems our government enjoys changing the tax rules and adding lots of new ones.

How much time are you going to spend learning about taxes?

I spend about 180 hours per year on my football education.  Thanks to that I am a mediocre fantasy manager.  I spend around 1500 hours each year learning and preparing taxes.  I am a very good preparer, and constantly getting better.  Let a professional’s experience work for you.

Yes I know this article may seem self-serving, and it is because I want to serve you.  I want your taxes done correctly.  I want to see you become wealthier each year.

Last year over 55% of my clients paid less than $95 to have a professional prepare their taxes.  Let me help you file your return with confidence.   Learn more about my tax preparation services here!

facebooktwittergoogle_plusredditpinterestlinkedinmail Read More

The Looming Bitcoin collapse

Posted by on Dec 10, 2013 in Perfect questions, Personal Finance | 0 comments

The Looming Bitcoin collapse

“Bitcoin is the currency of the future.”  “The first first ever fully decentralised payment network on the planet (and still the strongest), moving billions of dollars of value every day with no fees.”  “There has never been anything like this before.”  This is the rhetoric of Bitcoin evangelists. Is it true?

Are these worth a years salary?

Are these worth a years salary?

I remember hearing about “the new economy” and how internet companies would change the world and make investor rich (Dot com bubble).  In the 1630’s, one tulip bulb in Holland became worth an entire years earning for a wealthy merchant.  Human history is littered with obscene and unrealistic valuations for various currencies, commodities, or securities.

Money is a tool used to simplify a transaction between 2 or more parties.  It is a recognized store of value.   It can have intrinsic value such as Gold or silver, or it can be a fiat currency.  Almost all currencies today are Fiat currency and are backed by a government that has a vested interest in the long term value of that currency.  Bitcoin has none of this (read what Alan Greenspan thinks here).

Fiat currencies usually deflate in value over time, (causing inflation in the prices to purchase goods and services with those currencies).  Slow, controlled, and consistent inflation over time has some economic advantages.  However, sometimes currencies depreciate rapidly causing hyperinflation.

Zimbabwe $100,000,000,000,000 Now worth nothing.

Zimbabwe $100,000,000,000,000 Now worth nothing.

Hyperinflation is a very real risk of Fiat currencies. In Zimbabwe everyone was trillionaires.  Although now those trillion dollar notes are worth nothing (except as a collector item).  Zimbabwe no longer has its own currency, it uses U.S. Dollars.  (Currencies that went to zero)

Bitcoin is a virtual fiat currency.  There is a growing group of people who use it as money.  Some vendors are even beginning to accept it as payment for goods and services.   The value of a bitcoin has exploded over the last few months and seems to be growing at an accelerating rate.

  • Why is this happening?

  • Why do people feel the need to use this currency?

Markets are driven by 5 things: 3 are actual and 2 are perceived:

  1. Supply: how much of the product is available.
  2. Demand: How much people want of a product
  3. Price: impacts demand and how much is supplied
  4. Fear:  people hate to lose what they have.
  5. Greed:  People want to make money without having to invest something in return.

What is driving Bitcoin?

Bitcoin is being driven by fear and greed.  The interesting thing is fear and greed are both driving the price up.
Some people buy Bitcoin because they fear their national currency (or several national currencies) will become worthless.  Which is a valid fear based on the national debt loads of several western nations.

Is Bitcoin the right investment if you fear your national currency becoming worthless?

Some are buying it to make money because it is the wave of the future.  Some believe the price will go up for a long time as everyone converts to it.  They want to buy early and become a Bitcoin millionaire.

Why the bubble will burst?

It has no intrinsic value.  You can’t eat it or use it to produce something.  It is not regulated and backed by a government that regulates the creation of the currency.

When the factory workers and the school teachers start buying them; I could see the value of a Bitcoin reaching $50,000.   Everyone will tell me how wrong I am.

Then…  History will repeat itself.  The Bitcoin will disappear except for case studies and history books.  It will be of no value.  But do not fear, in the day and age of the worldwide marketplace… another bubble shall take its place.  That bubble will be driven by fear and greed too.

Are you buying Bitcoins?

 

facebooktwittergoogle_plusredditpinterestlinkedinmail Read More

Switch to our mobile site