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Personal Finance From a Biblical Perspective

Why You Need to Diversify Your Income Sources

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Yesterday I ran into a friend I hadn’t seen in a few months; we only had a few seconds to talk but he let me know that he had lost his job a couple of months ago. Another buddy of mine was given word that his job would be gone by the end of this year. For what it’s worth, both men have families to support.

We hear stories of people losing their jobs all the time, so these episodes are hardly unique. But what is interesting is that both men were what you might call “well employed” – that is, each had a well-paying position with a large, well-known company that they had worked at for many years.

Why You Need to Diversify Your Income Sources

Jobs Are No Longer Secure

The moral of the story is that there are no safe jobs anymore. Anyone in nearly any job can be replaced either by some form of new technology, or by less expensive workers outsourced from overseas. This is happening with technical and managerial positions as well as clerical and factory jobs.

There are different ways to deal with employment instability and no matter how secure your job seems to be at the moment, you should consider investigating your options. And the time to do that is now, before you’re forced into it by a job loss.

Diversify Your Income Protect Finances

Savings Will Last Only So Long

Many people concentrate on building up their savings as a safety net in case of a job loss. That’s a good idea, however it’s not nearly as effective as it once was.

In an economy where it can take months or even a year or more to find a new job, a two or three months savings cushion just won’t be enough. Unless you can save enough money to cover your living expenses for a year or more, savings will do little more than give you a little bit of breathing room. Not that that’s a bad thing, but it will prove to be inadequate if the job loss turns into a long-term process.

What about unemployment insurance? There are two limitations with this, the first is that for most people, the amount of your benefit won’t come close to covering your living expenses. The second is that unemployment benefits only run for a few months. Like savings, they’ll help at the beginning but sooner or later, they will run out too.

Build up your savings in case of a job loss – but be ready with additional income sources. Savings will cover you in the months immediately following your job loss, but your additional income sources will be your long-term safety net.

How To Diversify Your Income Sources:

Using A Part-Time Job To Apprentice For A Back-Up Career

One of the best ways to be prepared for the loss of your job is to have another one ready. You may be able to do that with a part-time job. I’m not talking on a job pumping gas or serving lattes, but something more substantial.

Ask yourself the question, “If I didn’t have my current job what other kind of work would I do?” The answer to this question can provide you with the insight that will lead to the type of part-time job you should get. What you’re looking for here is a part-time job that will lead you into the career of your choice, or at least into one that could be a reasonable back-up career. .

By taking such a job on a part-time basis your accomplish at least two things: 1) you get the training and experience that you need to enter that field, and 2) you pre-position yourself in a job before you actually need one. The goal will be to convert the part-time job into a full-time one if you can’t find a replacement job in your primary career.

One of the problems with job losses is that they usually occur across an industry or even an entire career field. That makes finding a replacement job very difficult because not only are there a small number of jobs available, but there are also a lot of candidates applying for those jobs. Many people are having to change fields following a layoff.

With a serious kind of part-time job, you already have a replacement career waiting in the wings. The transition is shorter, smoother and easier because of your advanced efforts.

Diversify Your Income By Starting A Business

A similar alternative could be starting your own business. Choose a business that you would like to enter and/or one you have an aptitude for. You can begin it as a side venture and develop it at your own speed. The idea is to build up gradually so that if you do lose your job, you’ll be able to quickly convert the business into a full-time occupation.

Whether it’s a part-time job or a part-time business, not only will you be building a second career for yourself, but you’ll also be providing an extra income that you can put into savings. The combination of higher savings and a backup income source will leave you well prepared for whatever happens after losing your primary job.

Retraining

Retraining is another option. Even though some fields are in decline, there are others that are going strong or are in growth phases. Sometimes all you need to enter them is some formal training. This could be a degree program, technical training or just some courses that you might be able use as a springboard into another career field.

Check with the course offerings at your local community college. They often offer training in career fields that are what you might call “closer to the ground”. This might include fields that are more hands-on in nature, such as those in the medical and computer fields, as well as some of the trades. Those are the type of occupations that tend to do well no matter what else is going on in the economy.

Whether you decide to use a part-time job, part-time business, or some form of retraining, seize the opportunity now to prepare for a job loss that may come later. If the job loss never happens, you’ll have yourself a solid second income. But if it does happen, you’ll be ready for it.

photo credit: freedigitalphotos.net

Home Energy Management: Are You Wasting Money On Your Home Energy?

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[The following is a guest post brought to you by uSwitch]

We recently talked about the need for proper business energy management, now we will switch gears and focus on the home. With electricity prices rising all the time and fossil fuels nearing depletion, it makes a lot of sense to take measures to save money on your energy bills at home. Many of these steps are common sense and easy to do if you compare energy prices. With more and more people using every extra penny to pay off debt, home energy management is becoming more important than ever. Here are some tips to reduce energy costs.

Tips For Better Home Energy Management

Get into the habit of switching off lights when you leave a room.Install compact fluorescent light bulbs (CFLs) or LEDs (light emitting diodes) inside and outside the home; they use a fraction of the energy of traditional incandescent lighting and come out tops with energy comparison. They also produce far less heat, thus making cooling down of the room unnecessary.

Turn fridges and freezers down to a minimum, especially in winter. Don’t open the door unnecessarily or for too long. Defrost the freezer regularly and do not overfill it; but do not run it empty, either. It makes sense to compare electricity prices when different appliances are run.

A geyser is one of the most energy hungry appliances in the home. With energy comparison, it becomes clear you should set the heat for 50 degrees Celsius (122 Fahrenheit) in summer and 60 degrees (140 Fahrenheit) in winter and install an insulating geyser blanket, not forgetting to cover the first two meters of outgoing pipes as well.

Proper home energy management may include making changes to the structure of your home (something which may provide an unexpected benefit when it’s time for tax preparation). Installing a solar water heater is initially more expensive but makes sense in the long run if your goal is wise home energy management. Shower for as short a time as possible and install a low flow shower head. Do not run the hot water for small amounts or when cold water will do and use the first unheated water to water plants or use in pets’ bowls.

Boil only as much water as you need in a kettle or keep water in an insulated flask for later use. A fully loaded dishwasher uses less water than manually washing dishes, although the initial outlay will be more expensive; but if you compare energy prices it is worth it.

Run the washing machine on cold unless clothes are greasy or heavily soiled. Front loaders use less electricity. Use a microwave oven instead of the stove top or oven when cooking. You might find that using gas is more cost efficient if you compare gas and electricity prices.

Make use of the natural heat of the sun by opening window coverings in winter and keeping them closed in summer and at night. Plant shade-giving trees, preferably deciduous ones, so that in the winter the sun will reach your home. When you compare electricity prices, the saving will make a difference.

Using double-glazed windows or a window film will further enhance insulation features. Apply weather stripping or sealant to seal gaps that let out heat and install insulation in basements, heating ducts, ceilings and walls if possible. If you compare energy prices before and after these steps, you will notice a considerable saving.

When you compare electricity prices, you will see that central heating uses a large amount of energy. Wear warm clothes instead of turning up the thermostat; use an electric blanket at night and turn down the heat in your room or switch off loose standing heaters.

Unplug all appliances when not in use; even on standby or when switched off they still consume a small amount of energy. Replace electric appliances with energy saving ones. With energy comparison, you will notice that a laptop uses less energy than a desktop computer.

Maintain all appliances regularly, such as keeping the dryer filter lint free, the geyser clear of sediment and pipes and vents clear of dust and other obstructions. Conserve fuel in your car by driving more slowly and accelerating more gently. Service your car regularly and keep all filters clean. If you compare gas and electricity prices you might want to opt for appliances that use gas, such as ovens. The biggest thing that you can do is to avoid non-renewable energy sources as much as you can.

photo by Images_of_Money

Business Energy Management: Become Efficient And Save Money Fast!

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[The following is a guest post brought to you by uSwitch For Business]

Businesses are facing a great deal of pressure in these days of recession. As well as simply trying to stay afloat they need to consider their environmental impact. The good news for businesses is that in many cases financial and environmental savings can go hand in hand and there are resources available such as uswitchforbusiness to help companies do a better job of business energy management.

Business Energy Management: A Way To Improve Your Bottom Line

Business energy consumption can be one of the major costs faced and can be a difficult cost to tackle. When staff are employed in an office or building to run a business, electricity and gas are needed to keep the work environment lit and heated as well as keeping equipment such as computers and machinery working – another benefit of using “work from home” days as a method of showing employee appreciation.

One way of saving money is to compare business electricity and gas costs. Comparison websites will allow businesses to compare the costs of business electricity and gas amongst all the major UK suppliers. Inputting details into these companies will give your business access to the many deals and offers available to business users from these suppliers to find ways of saving money.

Depending on the amount of energy your business consumes, shopping around for a cheaper supplier could save your business hundreds or thousands of pounds a year.

As well as finding a better energy deal online, there are many other ways of saving energy costs and improving the environmental profile of your company. You may need to get your employees on board to implement some of the changes necessary to save money such as encouraging them to switch off office equipment when not in use rather than leaving it on standby.

Business Energy Management: Simple Things Make A Huge Difference

Your business could save up to £35 on each computer and monitor each year by ensuring that it is properly switched off when not in use overnight or on weekends and bank holidays.

Using energy saving light bulbs and encouraging staff to switch off lights when they leave the room could cut your business’s lighting bill by up to 15 per cent and up to £400 could be saved annually by making sure taps are fully turned off and any dripping taps are fixed as soon as possible.

Turning the heating thermostat down by one degree could reduce your business’s heating bill by as much as eight per cent. It is likely that your staff will not even notice the slight drop in temperature.

Getting Grants To Help You Save

As well as encouraging staff to have some responsibility for cutting energy costs it may be worth your business investing in energy efficient equipment. Grants that are available from the Carbon Trust to help towards the cost and the overall savings on energy bills are likely to make the initial investment worthwhile.

There is plenty of information and advice available for businesses from the Energy Saving Trust on ways to reduce energy costs and become more energy efficient and environmentally friendly. The Trust can help to evaluate your energy consumption and offer advice on ways of making savings.

photo by jannoon028

6 Free or Frugal Ways to Show Appreciation to Employees

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As a result of the downturn in the economy, many companies have decided to do away with raises and bonuses. If you are a manager or a business owner who is searching for ways to demonstrate employee appreciation and employee recognition for all of the hard work performed by your workers throughout the year, without breaking the bank, then keep reading. This way you can ensure that your employees don’t choose a different career path once the recession is over!

Here are six simple things that you can do to demonstrate both employee recognition and employee appreciation:

Employee Appreciation for Free!

Offer Flexible Schedules

Not all employees need to work a 9-5 schedule. For those who have work responsibilities that can be handled during any hour, this may be a great benefit to them. Think about it, if you have a harsh commute when working a 9-5 shift, changing your hours to 7-3 would do much to reduce the stress and cost of your commute!

Allow Employees to Occasionally Work from Home

Telecommuting is becoming increasingly popular. If it isn’t possible to allow your employees to do this full-time, allow them to choose one day each week on which they can work from home.

This will not only save on energy, water, and all other costs associated with having more bodies in your building, but it will also save the employee on gas and wear & tear on their car (or paying for public transportation)!

Offer Opportunities for Additional Training

This would be a real benefit to employees, as they will have a chance to learn additional skills – or improve on what they already know – and position themselves for promotions and other opportunities!

This can be as simple as having members of your IT staff offer periodic training in MS Office, or other commonly-used software; or as complex as implementing a rotation program where employees are allowed to function in different positions and develop new skill sets!

Have Dress Down Days

Allowing your employees to dress down for one or several days a week can help to lighten the mood of a stressful work environment (of course this gesture is meaningless if you are not already being a godly employer)! It may also help to change the dress code to a more casual one – especially for those employees who do not need to meet with clients/customers.

Employee Recognition on a Budget!

Partner With Local Vendors

There are two ways that you can do this. First, you can leverage the buying power of your group of employees to get massive discounts for them – this can work for anything from cars to computers to tax preparation!

Second, you can barter with local vendors – providing your services to them in exchange for free services for your employees! Even if you aren’t able to give a raise or bonus, you can still provide a tangible benefit to your workers by providing them with a free session with a local tax preparer or financial consultant.

Another great way to show your appreciation for your employees is to bring in a local massage therapist once a week to provide free basic massages! Here are some other gift ideas to help you get started!

Celebrate Employees’ Achievements Each Month

Depending on the size of your workplace, this may need to be handled at the department level. Cater a basic lunch (a pizza party works for me) and give simple awards to your employees. You can have them vote on things such as “the most helpful coworker”, or “most dependable”, etc; then give out these awards once a month or quarter!

Broadcasting various customer/client accolades may add a nice touch as well. This would definitely be a great way to show employee recognition and employee appreciation for a minimal cost.

You can also use this as a time to acknowledge all of the birthdays that occurred during that month.

Set Up a Rec Room

If you have the space, set up a recreation room for your employees. You can include a TV, an air hockey game, pool table, or even a massage chair! You have to set a few guidelines on when this can be used, or you can just trust your employees to be responsible and get their work done in between their air hockey tournaments.


Remember, with whatever programs you implement, you should seek to do one of two things. Demonstrate your appreciation to your employees by providing a tangible benefit to them (more than just a “thank you”); or make the workplace more enjoyable by creating a more relaxed atmosphere.

Both of these goals can help to foster an attitude of loyalty in your employees, even at times when you are unable to offer raises and bonuses!

Reader Questions:

For Employers

  1. In what ways do you demonstrate your appreciation toward your employees?
  2. In your mind, how far do these, and similar, measures go in fostering worker loyalty during a time of salary freezes?
  3. What else would you add to this list?

For Employees

  1. Does your company offer any of these non-traditional benefits?
  2. Does this change how you view your employer at all?
  3. What else would you add to this list?

photo by bettyx1138

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