Wealth...Uncomplicated

Increasing Productivity with Skype - it's far more useful than you might think

So you've probably heard or it or maybe even seen it in action on Oprah, but how can Skype be used to increase productivity?  As communications technologies go, it's not the end all, be all, but it certainly has some very attractive features that can instantly increase your productivity.  Chief among its benefits is the ability to conduct voice and video calls without your eyes or hands leaving your computer.

It might seem like a small thing to not have to grab the phone and turn your attention away from your work for such a minimal amount of time, but trust me, it's kind of a big deal...depending on what you do for a living.  If you're an IT professional, Skype is almost a must.  If you're a server at a restaurant, maybe not so much.

Those that would benefit most from Skype are those that (1) work a lot on the computer, (2) frequently need input from others to complete job functions, and (3) prefer to get things done as efficiently and quickly as possible.  On the third point, I recognize there are those that like to make a phone call and get away from the desk, but if you're an on-task individual, you'll love the focused work that Skype can deliver.

Some of the best fit professions and industries that I could think of include IT, accounting, telecommuting professionals, internal support personnel, and insurance agents among others.  With tax season approaching, I can see accountants across the country calling their clients for clarification, tax forms on screen, and keying in all of the necessary details.  All of this without moving away from the desktop.

If you haven't tried Skype, it's free if you are calling a fellow Skyper, but you'll need to pay $2.95/month if you want to make calls to folks on regular phones.  After spending a little time on Skype, I can tell you it's a really nice experience, as you can talk, instant message, and even send text messages from the comfort of your computer.  It's nice if you're working on a project to just pop in on Skype, get the answer you need, and fix the issue on the spot without ever breaking your focus.

By the way, the call quality on Skype is unbelievably good.  It's very close to my landline and a few cuts above my BlackBerry.  To learn more about Skype, follow this link.

Part-time Income Opportunity at Solvate - become a timesmith

Alright, you've heard about all of these supposedly 'great' opportunities to work from home and earn $5,000 or $10,000 per month, but are they all they're cracked up to be?  Umm...no.  Not at all.  Be that as it may, there are a litany of part-time home-based jobs that are just a couple clicks away.  One of these jobs is to become a 'Timesmith' for Solvate - a personal services company that outsources tasks for those that don't have the time to complete them.

These jobs can be anything from concierge services to doing some art work to well...just about anything.  The way that it works is that a consumer will enter the job online and based on the type of work, an assigned hourly cost is assigned and can be broken down into five minute increments.  From here, Solvate will assign a timesmith or team of timesmiths to complete the task at a specified hourly rate.  The consumer gets the benefit of having someone else do the work, the timesmith gets paid for their work, and Solvate makes the spread between the wages.

While this might seem like a new concept, it isn't.  Virtual assistants have existed for many years, with a good number of them based in foreign countries like India or in Eastern Europe.  What has changed (and this is the great part) is the technology that supports this profession.  No longer is there a simple job board and email, but companies like Solvate also have the capacity to better track the actual time spent working on tasks.  This tracking ability leads to lower overall costs as well as a better way to assess productivity for each virtual assistant or in Solvate's case, Timesmith.

So how much does one pay for a Timesmith?  It starts at about $25/hour.  How much does a Timesmith make?  Anywhere from $15 to $75/hour.

Benefits Beyond the Wage

What I see beyond the paycheck that a Timesmith might earn are the many tax benefits that could be derived from spending just a few hours a week on a Solvate project.  For instance, since you'd be a contractor paid on a 1099 instead of a W-2, you'll be able to start deducting costs like internet, phone, office supplies, and even home office space and a prorated share of your utilities expenses.  This alone could make it worth spending a little time as a Timesmith.

Bottom Line:  Solvate is part of a burgeoning industry and becoming a Timesmith has a good number of benefits beyond the hourly wage.  If you're looking for a little more income without having to leave the home, this is a pretty nice way to do it.

P.S.  Special thanks to LearnVest for featuring Solvate in the LearnVest Daily.  If you don't yet subscribe to this superb email newsletter, get it by clicking here and entering your email address.

A Surefire Way to Increase Income - put 3% toward upgrading your knowledge and skills

A long time ago, I listened to a Brian Tracy audio program about self improvement.  One of the main points (possibly the only point) that I remembered was if you invest just 3% of your annual income into expanding your knowledge and skills through education, you would become an expert in your field in very short order.  Of course, becoming an expert also means you can expect a pay increase to follow.

The last time I looked at the median household income, it was just over $50,000.  With the Great Recession, I'm sure it's a little lower now.  But $50k is a nice, round number.  If you were an average household, 3% of that figure is $1,500.  So how much will $1,500 buy towards improving your knowledge and skills?  It depends on how you spend it.

College

You could invest the $1,500 into a college course or two - maybe.  With college courses being as expensive as they are, you might be able to learn one subject through a single course.  The odds of gaining a great depth of knowledge through this route aren't good.  As a result, your money is probably better spent elsewhere.

Seminars, Conferences, Boot Camps, etc.

Depending on your field, these options are considerably more informative and less expensive than college coursework.  If you're in a line of work where there are trade shows, regional seminars, boot camps, or whatever, these are typically going to be a relatively good way to invest your money.  Often, you can gain insights into the current market environment from people that are in the industry that can be a nice addition to your knowledge and skill base.

Periodicals

Let's say that you're in the fitness industry.  It's probably going to be a good idea to subscribe to a number of magazines and trade publications in the fitness world so you can stay on top of current developments.  This allows you to have more intelligent conversations about the industry as well as gaining greater awareness of important trends.  Plus, periodicals are really inexpensive because much of the costs are subsidized by advertising.

Books

Finally we get to the best bang for the buck.  Books deliver more information than any of the previous options at a fraction of the price.  If you read just 10 books in your field, you'd be a fairly knowledgeable person.  But if you invested 3% or $1,500, you could get 75 books.  If you're pretty smart at 10, you'd be crazy smart at 75.

Think about it.  Most people don't read more than 1 book each year in their field of work.  College graduates might read a dozen books in their field through their coursework, but most of these graduates won't continue their learning after they've entered the workforce.  Sure, they might subscribe to periodicals, go to trainings or seminars or conference, but do they keep reading books?  Not so much.

Go Read Some Books!

Obviously books are the most cost-effective way to gain knowledge and skills to help you improve your income.  If you just went a single year spending 3% of your income on books and actually reading them, you'd be head and shoulders above your peers.  Of course, reading takes time.  If you're like me and don't read quickly, grab the audio version instead.

To get started, click here to visit the Wealth...Uncomplicated store.

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College Grads Beware - you're screwed

Watching Peter Orszag, the Director of Office Management and Budget, with Charlie Rose, there was a very interesting, but little discussed statistic.  On the program, he states that on average, for every 1% increase in unemployment, a college graduate can expect to earn about 6% less in annual income.  While 6% may not seem like a big difference, it is.

Immediate Impact

Considering unemployment was let's say 5% before the sky fell and will go up to 10% or more, that equates to a 30% difference in income for new college graduate.  This means that new grads will earn 30% less in starting wages than those who graduated during more normal economic times.  Of course, the 30% can be overcome, but on average, our latest edition of young professionals will be earning less than the overwhelming majority of their predecessors.

Compounding the Problem

Adding to this wage disparity is the fact that over time, the gap will be compounded.  The reason for this is that if you start with a lower wage, when you receive pay increases, your increase is based off of an artificially lower wage.  For example, let's say that Armand takes a job upon graduation at $25,000 that a couple of years ago was paying $35,000.  When Armand gets a promotion or changes jobs to have a higher salary, he and his prospective employer will be considering his salary increase based on the $25,000, NOT the $35,000.  

Net Present Value of the Problem

So what does this gap really cost?  The answers vary from one study to another, but it's about $100,000 in net present value.  If you consider that the average 401(k) balance at retirement is around $105,000, this tells us that college graduates today will be at a decided disadvantage both today and over the long run.

Takeaways

While this information is pretty bleak, it doesn't mean that an enterprising college graduate is doomed to earn less their entire career.  There will always be a group on the right side of the bell curve, so how do you overcome the averages?  You have to be smarter with your financial decisions to maximize your resources - income and assets.  Here are some things to do now:

1. Get Experience - unless you want to have the lowest of low entry level positions, or even be shutout of your field, it's important to get some experience in the industry you want to pursue.  This could be an internship, a co-op, working part-time, or whatever, just get some experience.
2. Be Smart with Debt - graduating college is a major accomplishment and one that only 36% of the population has experienced.  However, that 36% also can tell you all about their student loan debt.  It's important to try to accelerate your debt repayment even if the loans are at 'good' interest rates.  The less debt you carry, the more options you'll have, the better your life will be.
3. Don't Fear the Boomerang - there was a concern with Boomerang Kids (twenty-somethings that returned home to live with mom and dad), but today it's something that has a new name - cocooning.  Don't be afraid to move back in with mom and dad until you can get on top of your debt with a decent income.  Who knows, with the market crash and unemployment figures, mom and dad might need you as much as you need them.
4. Delay Major Purchases - rather than go out and get a new car as soon as your first paycheck arrives or trying to buy a house out of the gate, put off these purchases for at least a couple of years.  During that time period, act as if you had these payments going out and see how the budget holds up.  This should give you enough time to accumulate a decent emergency fund.
5. Start Saving for the Long-term - the reason that the average 401(k) balance is only $105,000 at retirement is because the older generation failed to start saving early.  It has never been easier to start saving for the long-term with the proliferation of employer based retirement plans and individual retirement accounts (IRAs).  Just putting in 5% will put you well ahead of the game.
6. Get Something on the Side - whatever your job might be after graduation, try to find something to do on the side that will make some money.  It needn't be a lot of money, but try to do something that will further your career.  As an example, if you're a public relations nut, try to do some work with smaller companies on your own.  It could be as simple as setting up press release accounts for businesses or connecting them with simple solutions to create a web presence.

Bottom Line:  The numbers say you're screwed, but it doesn't need to be true for you.

Dress It Up, Make More Money

Human behavior is such that we generally perceive greater value based on how attractive something or someone is.  When I sat and watched Aaron Patzer, founder of Mint.com, answer the question of how he was able to get a million users to trust his site, he gave the standard answer of internet security protocols and the like, but he also said that security was perceived by how attractive users thought the site to be.  This idea of perceived value based on looks is something that has been making people money for years, from professional looking salespeople, business cards, and letterhead to 'pixel perfect' websites, looking good will help you make more money.

Comparison Example

Let's say that you want to have your house painted and you invite a couple of painters to come in to give you bids.  The first one shows up wearing his regular work clothes complete with stains and walks around your house to size up the job.  He has determined a price and writes it down on the back of a fatigued business card that was definitely printed at home.

The second painter arrives wearing khakis and a button down shirt, walks around the house with a clean metal clipboard and takes notes on the size of the job and the estimated costs.  He finishes out by giving you an estimate on a form labeled 'estimate' that also has his company's name and contact information on it.  The business card he hands you is crisp and professional looking.

After seeing both painters, you begin to compare, looking first at price.  The quote from the first painter is a little lower than the second, but they're not too terribly far apart.  You then see the second painter's card with his company's website on it.  You do a little research on the website and see that they appear to do a good job.  The website, business card, estimate, and painter all have a very clean and professional look.

Which one do you call to do the job?  The second, right?

This is just one of many examples that we could go through, but it's something that underscores the fact that if you want to make more money, dress it up a bit and you'll be ahead of the game.

By the way, the cost for painter number two to get the job looks something like this:

• khakis - $25 @ Old Navy
• button down shirt - $20 @ Old Navy
• metal clipboard - $11 @ Office Depot
• business cards - $25 @ 123Print.com
• estimate forms - $40 @ 123Print.com
• website - $0 @ Wordpress.com

Odds are good that painter number two will receive multiple times the amount of money he invested in his clothing and business accessories over the course of a year--all for dressing it up.

Why $481 is Magic

What if I told you that $481 is all that separates you from being a millionaire and being financially destitute when you retire?  Would you believe me?  Of course you would--I'm an honest guy.

I was doing some research for another project on determinants of income, wealth distribution, and the like when I came across this magic figure of four hundred eighty-one dollars.  This represents the monthly amount you would need to invest over 30 years to reach one million dollars with a 10% rate of return.  $481 seems so small compared to $1,000,000 and that's why it's magic.

After I discovered this number, I wanted to see what this would mean to the Average Joe in terms of the number of hours worked each week.  Taking our $481 and breaking it down weekly, one needs only to save $111 per week to become a millionaire.  In terms of work hours, I found that the Bureau of Labor Statistics reported the average wage for American workers was $18.41 as of last month.  This means that to obtain extraordinary wealth earning an average wage, you would need to work just six hours more per week.

Ask yourself this question:  Is it worth giving up six hours of each week to become a millionaire?

Obvious answer, right?

Now you know why $481 is magic, and I'll leave you to your own devices to figure out how to make the magic happen.  Just remember that the difference between wealth and poverty is typically a series of small efforts strung together over a long period of time.

When 2 Equals 10 - education pays

Last Sunday, I gave you President Obama's message on education that asks every American to commit to at least one more year of education or job training.  While I can't emphasize enough the importance of furthering your education and improving your job skills, I took a few minutes to find a clear cut example of how education pays.  In this post, we'll take a look at the world of nursing which is a high demand field that continues to offer excellent wages that are dictated in large part by education level.

Three Tiers of Nursing

Loosely speaking, there are three major tiers of nursing:  (1) Licensed Practical Nurse or LPN, (2) Registered Nurse or RN, and Nurse Practitioner or NP.  These tiers are dictated by educational attainment and industry certifications.  As a nurse moves through the progression from LPN to RN to NP, he or she can expect to be compensated on an increasing scale.

Nursing Salaries

Based on information obtained from Salary.com, the following are the expected salary ranges for nurses from the 25th to 75th percentile in Cincinnati, Ohio:

• Licensed Practical Nurse:  $35,561 to $42,651
• Registered Nurse:  $55,508 to $66,867
• Nurse Practitioner:  $74,702 to $88,020

In light of the fact that the average hourly wage in February of 2009 as reported by the Bureau of Labor Statistics is $18.41, nurses entering the workforce can expect a wage that is above the national average.

Education Requirements

For hopeful nurses, the amount of education required depends on the end goal.  Generally speaking, the following is a quick view of the time required to obtain the educational credentials for each tier of nursing:

• LPN - 2 years, Associate's Degree
• RN - 4 years, Baccalaureate Degree
• NP - 6 years, Master's Degree

If you're starting out with no college experience, becoming a Nurse Practitioner may seem like a long slog to go through six years of school.  However, if this is broken down into say four years up front and two years at a later date, it's not nearly as daunting a task.

Two Years = Ten Years

The most common argument I hear against going back to school to increase personal income and better one's life is that it takes too much time.  We're already pressed for time as it is and many feel that it's impossible to squeeze even one more thing into an already busy schedule.  This couldn't be further from the truth...if you understand the long view anyway.

If you look carefully at the information I've already presented, you will see the the difference in income between each tier of nursing equates to about $20,000 in annual earning.  As an example, a 35 year old LPN could go back to school for two years to become an RN.  Over the course of 20 years, he or she would expect to earn about $400,000 more than by simply staying the course as an LPN.

This $400,000 in additional earnings equates to more than 10 years of earnings as an LPN!  In essence, two years of additional education adds up to 10 fewer years of work.  Do you get what I'm saying here?

President Obama is asking all of us to further our education to better our lives and the country, and as this post points out, it makes all too much sense.  The fact remains, however, that only a few will heed the President's call, and for those few, they will be richly rewarded with a far better chance at finding lasting financial security.

To learn more about how to go about going back to school and the special tax credits made available in February, click here.

If you'd like to see what various jobs are paying, click here.

Side Projects Diversify Income and More

In catching up with some of my RSS feeds, I came across a great article that raises a timely point--it's important to have side projects and be able to diversify your income.  During periods of economic growth, your primary job is considerably more secure than it is during times like today.  By having multiple income sources, you'll sleep better at night.

I'll let Donald Latumahina make the point, but I would add that you don't necessarily need to be making a significant income in your side job, but you should have the seeds sown that will allow you to gear up when you need to.  Keep in mind, job loss is not a matter of if, but really a matter of when.  One of the laws of capitalism is that no one is guaranteed employment.

Take a few minutes to read Latumahina's article and start thinking of the things you're passionate about that you might be able to translate into an income.  Checkout the link below to see one of the more sophisticated side projects I've seen.

Download Sophisticated Side Project