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Posts Tagged ‘economy’

Gambling

Thursday, May 21st, 2009

Most of us, at one time in our lives, have gambled a little bit of money. Whether you packed up your life savings and headed for the Las Vegas blackjack table, or whether you bet your best friend an dollar that he couldn’t beat you in a footrace, gambling can be a fun and harmless pastime.

However, we all know that gambling can be incredibly addictive and dangerous. An overwhelming number of people (recently estimated at 15 million) show signs of a gambling addiction, and those who are addicted tend to incur debt between $55,000 and $90,000. Gambling addicts experience higher rates of divorce, depression, and suicide.

So why gamble in the first place? There seems to be an oxymoron at work here. As anyone who studies “luck,” will tell you—you can’t be lucky unless you take chances and risks. There is an even an old joke that we here at Five Point Capital have heard many versions of. Many years ago there lived an old man who was having a hard time in life. He owed money on his house and land, had little money for food, and as he aged he found himself needing more and more money for medical expenses for himself and his wife. Every single day he went to his local church to pray. He called out to God each and every single day “God, please help me to win the lottery. I beg you.” Time goes on and his situation grows worse, and yet every day he still goes to church to ask God to help him win the lottery. One day, the old man was in the church, got down on his knees, bowed his head, and prayed in a weeping voice, “God, please, please help me to win the lottery,” and proceeded to weep. Hearing this, God couldn’t stand it any longer, and shouted down to the man from the Heavens, “Do me a favor my son…Buy a ticket!!!!!”

This joke demonstrates what many of us feel; we know that our chances of winning the lottery are slim (indeed, casinos usually profit about $30 billion annually), but we still feel that we should at least put our luck to the test, just in case.

In this economy, gambling can go either way. Those who gambled lightly as a simple pastime are now tabling the hobby to save money. The US Casino Report estimates that 60% of Americans have cut back on their gambling spending, which is about the same as the drop in people spending money on dining out. This has drastically impacted the gambling world, and some racetracks in Kentucky have been forced to close or cancel races now that betting is so low. And while in recent history, the amount of money spent each year on gambling has increased (and actually doubled every year since 1997 for internet gambling), this amount actually dropped dramatically in 2008. Casinos experienced their first-ever annual drop in profits since tracking began in 1999, with a drop of approximately $1.6 billion.

However, those who are worse off might be tempted to push their luck a little further, and this can be dangerous. With lay-offs abound and the economy slumping deeper into a recession, some people may turn to desperate measures to slough off some of their debt. And what’s worse, with this economy, getting out of any gambling debts will be even tougher.

Our suggestion here at 5 Point Capital is to treat gambling as you would any other leisure expense, such as dining out or buying new clothes. Look carefully at your budget and see exactly what you can afford to spend each month on gambling. Once you hit that limit, do not allow yourself to go over. And avoid the cardinal sin of budgeting gambling money—if you win money, this does not increase your pool of gambling money. This is your profit to keep. That way you only spend an affordable amount on gambling each month, and will never delve into debt. The worst case scenario is that you spend your gambling allowance, and the best case scenario is that you make a profit.

If you cannot afford to gamble, don’t start. That is the simple rule. If you cannot afford dining out, buying a new CD, or cable television, gambling should go as well. Consider it just as you would any other leisure activity. Budget a trip to the casino just as you would budget a trip to the beach or a cruise.

If you think you or someone you know has a gambling addiction, you can call the Gamblers Anonymous hotline at 888-GA-HELPS.

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Survivor’s Guilt

Tuesday, May 19th, 2009

With hard-working people being laid-off from their jobs left and right, those whose jobs have remained in tact may start to feel some effects of survivor’s guilt. Every single day people are losing their jobs or worrying about losing their jobs; unfortunately it has become the “American Way” of the era. There are countless resources for the jobless or soon-to-be unemployed to turn to, but what about those who have not been left without a job?

Many who have been laid off may turn against their employed neighbors, friends, family members, and spouses, feeling as if there is no way for them to understand the stress and helpless that comes with being unemployed. The employed may then even start to feel guilty for their success, hard work, good luck, or whatever else they may feel has caused their job security. They might be asking “Why did he or she lose their job while I kept mine? Am I expected to be working twice as hard now? Should I be putting in more hours and working through weekends and vacations? Should I double my donations to charity, since no one else can afford it? Should I offer more support to others, even outside of my family? What do I do with this new role as breadwinner, not just for my family, but for my country?” However, at a time when there is enough stress and ill-feeling going around the country, there is simply no room for the guilt of the thriving.

If you have been able to remain secure at your place of employment, do not feel guilty. It is not your sole burden to support the un-working world, to carry hard-hit charities, or to diminish your own skills and success. You should be proud of what you have accomplished, relieved at your stability, and active in supporting your community. Continue on the path that has led to your success and stability, but do not live above your means. Yes, continue to donate your time and money to charity, but do not increase your efforts above what you are comfortable capable of out of remorse.

We here at Five Point Capital know that the world needs strong, stead-fast, good-hearted people, not those crippled with survivor’s guilt. This economy is no time for showing off, bragging, or lavish spending, but it is also not the time for guilt or unwise spending. Do your part for your community, but remember to keep your head held high and your work ethic strong. The rest will soon follow.

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Quitting Your Job in a Down Economy

Thursday, May 14th, 2009

Every day people are being laid off from their jobs. Those who have been laid off are facing an awful situation. Fear, panic, homelessness, hunger, and helplessness are at the forefront of anyone’s mind if they have been laid off. However, there is a small group of people who have been forgotten and who remain as confused and helpless as ever—those who desperately want to quit their jobs.

In this economy, quitting your job seems insane. Thousands of people are struggling to keep their jobs, find new jobs, and just keep their families and lives together. However, think back to a few years ago, when the economy and job market were doing well. If a friend had come to you, describing a miserable job environment, chances are that you would have encouraged them to quit—to damn the man and put themselves back on the market for a job, just as you might encourage a friend in a bad relationship to break up with his or her significant other.

What should those people do now? Stay in their miserable jobs simply because they pay? Sometimes being at a miserable job can be even more depressing and emotionally damaging than being jobless. So what should you do if you desperately want to quit your job?

It depends on who you ask, really. This freelance writer recalls her Dad giving her the sound advice to not quit her job until she had a new one. However, she could simply not bring herself to be miserable at work any longer, and quit against his advice. She claims her financial worries and stresses are great, but that all in all she is happier. This advice columnist claims that any unhappy new employee should slowly begin a job hunt for a new place of employment, but make sure to give the job at least six months before making any decisions. This mom expresses confusion over whether to tell her teenage son to stick out his degrading entry-level labor job to teach him about life in the working world, or to encourage him to quit and enjoy his youth.

This US News and World Report article delivers some interesting statistics about those who have left their jobs. It claims that those who were laid off end up receiving less pay at their next job, but those who quit usually end up receiving just as much as they were before. This may be due to the fact that those who are laid off become a bit desperate, and will accept any job for which they are hired. Those who quit have a more discerning eye, and will only accept a job that was better than the one they originally quit.

Then of course there is the more radical view, as popularized by David Seaman. Seaman has gone public with his controversial idea that the recession is the perfect time to quit your job, as it makes you stand out in the unemployed crowd and can give you a strong sense of self-empowerment. One of his television interviews can be found here.

The bottom line is your happiness and survival. Quitting your job in this economy will, without a doubt, cause an immense deal of stress. The question is, is the financial stress more manageable for you than the stress of a miserable job? If you honestly do not believe you can support yourself or your family in any way without your job, quitting may not be in your future. However, if you think that can you survive financially and deal with the stress of being unemployed, quitting your job may be an option. Five Point Capital cannot encourage you to quit your job in a down economy, nor can we encourage you to stay at a job that is emotionally depressing. This decision must be yours and yours alone. If you are well-informed and knowledgeable of your own financial and mental-health situations, however, you should be able to make the decision that is best for you.

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The Perfect Resume

Thursday, May 7th, 2009

We know that there are endless tips out there for writing the perfect resume, but Five Point Capital would like to put in its own two cents. The job market is tough and every little bit counts, so here are our tips to helping you land the job you want with the perfect resume.

Unfortunately, when many people go looking for resume tips, they are looking for the perfect cookie-cutter resume format—one that says “put your name here and the dates of your last 5 jobs here, print, and you’re done!” While this would be extremely convenient and easy, print-and-go resumes are all but useless in this economy. Resumes must be tailored for the individual, for the industry to which one is applying, for the specific job to which one is applying, and must include that extra special something to get you noticed. You can be sure that someone else is applying for the same position and that no matter how qualified you are for the job, they are just as qualified. So what will bring you out on top?

In South Coast Today, Brian Boyd provides a few rules that would be good for all to follow. First, keep it brief. Unless you are a top-level executive or applying for an academic or medical job, your resume should be one page. Second, make sure to tailor the resume to the job description. If the job description says that the company is looking for someone who is X, Y, and Z, your resume should make it perfectly clear that you are indeed X, Y, and Z. The job interview is not the time to show the hiring manager that are qualified for the job—the resume process weeds out those who are right for the job from the ones who are not.

The New York Daily News suggests taking this concept a little further. Do not just show that you are qualified for the job, but make sure that everything on your resume is fresh, up-to-date, and relevant. If you are a student, it is fine to include things such as extracurricular activities and internships, but if you are in your fifties and have held top-level positions at your most recent jobs, you should omit things like student internships and working with technology or concepts that are now obsolete.

One thing that most hiring managers and HR professionals will agree on is that you should never pad your resume. Brief and relevant is always better than long and full of fluff. So instead of padding your resume with computer skills when applying for an outdoors job or summer work experience from high school if you are over the age of 25, “pad” your resume with your accomplishments. The number one rule from the New York Daily News for writing a resume is “show, don’t tell.” Everyone knows what kind of work a receptionist, assistant, salesman, or bank teller does, but hiring managers want to know what you did personally. So do not just say “I answered phones,” but instead say “I answered between 20 and 30 phone calls a day as a receptionist for three top level executives, and provided customer service for calls regarding complaints or questions about our product.” Padding a resume with accomplishments and personal details is what turns a resume from a list of job descriptions into an individual’s career biography.

Besides these tips and the resume basics (no typos, readability, easy-to-read font, contact information, etc.), today’s job market means you have to go above and beyond. In the same way that you must be willing to make your mark in a job interview, armed with a flawless appearance, firm handshake, and pleasing personality, you must do the same with your resume as well. Make sure the appearance of the resume is appealing, but not tacky or over-the-top. A large picture of you in a business suit shaking hands with the mayor is unnecessary, but high-quality, monogrammed paper would not be out of the question. An objective section that is not wordy but gives an individual flair is a must, but be careful to avoid giving a personal biography or any information that might be deemed unlawful to know during the interview process (such as age, marital status, or details of appearance). Companies aren’t allowed to hire based on these factors, so do not give them a reason to throw your resume out for legal reasons (more details on this issue are given here in tip #6).

Finally, give in and join LinkedIn, Facebook, Twitter, and any other social networking site that might give your hiring manager an additional glimpse into your life. As this Wall Street Journal article points out, Facebook is not just for the younger crowd. As always, do not put anything into your profile that you would not want your manager or boss to know, but do not risk losing the job to a younger candidate just because you are unfamiliar with the world of social networking. Networking can only help!

We here at 5 Point Capital hope you find these tips helpful and hope you can create the perfect resume when looking for your next job. Just remember—keep it brief and relevant, and back up everything you say with an example. Once you have the perfect information down on paper for the job you want, go that extra mile to make you and your resume stand out. Then prepare yourself for a stellar interview. Good luck!

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It’s the Great Recession, Charlie Brown!

Thursday, April 23rd, 2009

It is no wonder that Americans everywhere are turning to the most unlikely of sources for economic predictions. Every news source in the world is reporting a different prediction, different turn of events, different outcome. Many of us have even turned to “trend forecasters” such as Gerald Celente, who claims to have predicted everything from the mortgage crisis to the dot-com boom ahead of time, as reported by New York Magazine. With the discrepancies in the news being broadcast on television, radio, in the paper, and online every day, it is no surprise we have all but turned our desperate faces to fortune tellers in the street.

On Sunday, the Associated Press reported that the recession seemed to finally be subsiding. Monday morning, however, Reuters countered with a report that the recession would probably last longer than originally expected. What is going on? Does anyone really know? Or have we just resorted to throwing out any prediction possible? After all, if the economy rebounds or it does not, someone will end up being right.

The big word on the economic street is “worried.” Wall Street worries about the banks. Oil stumbles due to demand worries. The government worries that bank bailouts are vulnerable to fraud. While the current state of the economy gives us much to fret over, what good is that worrying really doing? Couldn’t our time be spent in a more productive manner? As the wonderfully wise Ben Franklin once said, “do not anticipate trouble or worry about what may never happen. Keep in the sunlight.” Worrying and anticipating and waiting and predicting will get us no where.

While it may not provide the comfort and immediate answers we seek, the solution may not lie in predicting the future of American economy, but rather in working hard for small successes; we may not know when the mortgage crisis will end, but we can put our efforts into helping those who have already been affected, with institutions like the new mortgage aid program, as reported by the Associated Press.

Instead, let’s all do our part to save the economy. Spend wisely, but do not waste. Invest, but conservatively. Think ahead, but throw out the crystal ball. Be environmentally friendly, but don’t throw out your Honda for a Hybrid just yet. Do your research, but stay away from the pessimism porn. And if you must worry, at least follow the infamous philosophy of Charles Schulz’s beloved Charlie Brown:

“I only dread one day at a time.”

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Lease to Avoid Outdated Technology

Tuesday, April 21st, 2009

While many business-owners debate the advantages of leasing equipment and software over buying, there is one fact that stands out above the rest: leasing software means you can avoid sunk capital when the technology becomes outdated. It simply does not make sense, especially in this economy, to invest in a product that will be obsolete in a short amount of time.

Software, phones, computers, music players, gaming systems—they all become outdated relatively quickly as new technology and new trends cause them to become obsolete. Vaiafn.org is a website devoted solely to bringing attention to outdated technology! Buying this equipment and software will inevitably lead to one of two outcomes: either the product must be replaced, and the initial capital was wasted; or the outdated product is kept to save costs, and the business suffers.

Outdated technology and software means that your company cannot be as competitive as it may need to be in this economy. In this week’s AICPA CPA Insider, James Bourke claims that while not all technology needs to be thrown out as soon as something new comes along, “to be productive and responsive to clients, your staff needs tools that allow them to talk, e-mail and text.” For the world of accounting, communication is a must. You must analyze your own business and industry needs and decide what technologies you simply cannot afford to fall behind on.

When you lease with Five Point Capital, you avoid having to invest in equipment repeatedly as the equipment is updated. Not only does modern, cutting-edge technology appeal to customers and clientele, but it also serves a greater purpose; technology is constantly being updated for a reason—there is always room for improvement. Today’s technology is consistently becoming faster, more efficient, more user-friendly, and more convenient. Having access to the newest resources means your business can benefit from the latest knowledge and advances.

Even Microsoft is doing their best to encouraging the leasing of their products, as reported by ComputerWorld in an article last month. As a company that is always at the forefront of updates and improvements, Microsoft recognizes that it is often beneficial for companies to lease software and equipment in order to stay current. Technology is just changing too rapidly for buying and investing to be cost-effective for businesses in this economy.

The money-savvy business owner may be tempted to cut costs by skimping on the latest technology, but that is not the wisest choice. It is important to assess what technologies are available in your industry and decide what equipment is necessary to keep your company in the competitive circle. This 5 Point Capital blog can help you determine what equipment would be beneficial for your company to lease. By leasing equipment through Five Point Capital, you can avoid wasting money on soon-to-be outdated technology and falling behind the times with it. We are in the age of information, and no one should be left behind.

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