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Naked With Cash is an ongoing series at Consumerism Commentary in which readers share their households’ finances with other readers. These participants benefit from the accountability that comes from tracking their finances publicly and the feedback of the four expert Certified Financial Planners (CFPs).

For more information, read this introduction.

This year, we have four participants who will share their financial reports, exposing the results of their financial choices. Each participant is paired with one of our Certified Financial Planners. The experts will provide insight and guidance that will help our participants take their finances to the next level by the end of 2014. Learn about this year’s participants and experts.

The combined household income for Laura and Leon is more than $125,000 a year. They want to tackle their student debt, the result of advanced degrees, since their undergrad was paid for by their families. They want to start a family soon. Laura and Leon have not been paying attention to their finances, and are trying to get out of their complacency. The idea is to actively take steps to improve finances. (Read last month’s update.)

After reading Laura and Leon’s comments, you can read commentary from Roger Wohlner, CFP. Roger Wohlner appears courtesy of The Chicago Financial Planner. This month, there is a focus on changes to income.

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Naked With Cash is an ongoing series at Consumerism Commentary in which readers share their households’ finances with other readers. These participants benefit from the accountability that comes from tracking their finances publicly and the feedback of the four expert Certified Financial Planners (CFPs).

For more information, read this introduction.

This year, we have four participants who will share their financial reports, exposing the results of their financial choices. Each participant is paired with one of our Certified Financial Planners. The experts will provide insight and guidance that will help our participants take their finances to the next level by the end of 2014. Learn about this year’s participants and experts.

Brian and his wife have two young children. Not too long ago, Brian’s wife began staying home with the kids. They have very little credit card debt, since they usually pay off their credit card balances every month. They have student loans and a mortgage. Brian and his wife want to help their children pay for college, but they know that building up retirement has to come first. (Read Brian’s update from last month.)

After reading Brian’s comments, you can see video commentary from Jeff Rose, CFP. Jeff Rose appears courtesy of Good Financial Cents and Life Insurance By Jeff.

Read the full article →

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Naked With Cash is an ongoing series at Consumerism Commentary in which readers share their households’ finances with other readers. These participants benefit from the accountability that comes from tracking their finances publicly and the feedback of the four expert Certified Financial Planners (CFPs).

For more information, read this introduction.

This year, we have four participants who will share their financial reports, exposing the results of their financial choices. Each participant is paired with one of our Certified Financial Planners. The experts will provide insight and guidance that will help our participants take their finances to the next level by the end of 2014. Learn about this year’s participants and experts.

Jake and Allie are animal lovers who enjoy their pets and have no plans for children. Both are committed to early retirement. While they plan to live entirely off their nest egg, Jake and Allie are both interested in owning side businesses. The couple enjoys travel and make it a priority to take trips throughout the year, using part of their combined $140,000 income to enjoy life now. (Read their update from last month.)

After reading Jake and Allie’s comments, you can watch a Google Hangout they participated in with Financial Planner Neal Frankle. Neal Frankle appears courtesy of Wealth Pilgrim and MCMHA.org. This month’s Naked With Cash focus is on planning for income disruptions.

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I’m in the middle, well probably the beginning, of a long-term organization project. I’ve accumulated a lot of stuff over the years, particularly since moving into a larger apartment seven years ago. If I want to live a more mobile life, I need to downsize somewhat. In this process, I came across a plaque I received from my former corporate job, including a note from the company’s CEO thanking me for five years of service.

(I never made it to ten; I quit that job to focus on my own business full-time.)

Do plaques and service awards help employees feel wanted and needed within a large company? Or is competitive compensation enough to keep workers satisfied? You can have one without the other — does recognition matter if you’re underpaid, or if you are meeting your income goals, do you need non-monetary tokens of appreciation? Do any of these things show that a company cares about you?

Does a company have the capability to care? And for that matter, does a company have the capability to do anything? I guess that all depends on what it means to be a “company.” Here in the United States, the Supreme Court has repeatedly ruled that a corporation is lawfully a person, and in this way, protects people who act in groups from being denied rights afforded to people who act alone. A company does not feel, think, or act, but the people who comprise that company do. A company or corporation is nothing more than a group of people feeling, thinking, or acting mostly together.

You can look at a state the same way. A state is a conglomeration of the towns, cities, and other arrangements of people who live within the borders of that state. You can give attributes to that state as a shorthand for the people who live within. For example, New Jersey is a “blue state,” meaning the citizens within tend to vote in favor of the Democratic Party in national politics. But New Jersey is not a person and has no vote in itself. It’s ephemeral, an idea, a non-entity. It’s an arbitrary construct.

And it’s the same with a company. A corporation doesn’t often pay taxes. Its owners or shareholders have that burden. Bank accounts can be titled with the name of a corporation, corporations can own things, but only on paper. Everything traces back to an individual or a group of individuals.

When you say that you feel that your corporate employer cares about you, what you’re really saying is that the management enacts policies that meet the emotional needs of the employees or promotes a culture of empathy among its employees. When the opposite is true, when you feel neglected or ignored by your employer, you may feel like the corporation doesn’t care or is a bad place to work.

Executive management often finds itself between a rock and a hard place. Executives answer to shareholders or owners. They are the people who stand to benefit from the company’s performance, and are thus interested in maximizing profit and reducing expenses. Executives feel that pressure, while still having to deal with what can be a company’s biggest expense on paper, its employees. It’s those executives, not the shareholders, who set the tone for company culture, though.

This is illustrated in small groups best. It’s no surprise to readers that I’ve been involved in marching bands in high school and college, and studied music education, and have worked with a variety of musical groups. The group culture, the tone for behavior and performance, is set at once by the people in charge. In this example, the band director treats everyone a certain way, including other staff members down to the newest freshman. Other staff members pick up this culture of behavior and mimic it, and the members mimic the staff members.

This is how a corporate culture is transmitted. So even though the shareholders have the largest stake in the culture of a company, it’s the day-to-day management that transmits a model for attitudes and generates a company’s culture. Where culture is transmitted well, and that culture is seen as favorable by employees, those employees are ready to believe their company is a great place to work. Where there is no well-defined culture or a culture that isn’t respectful of employees, they take to online forums to denigrate their employer publicly (and presumably anonymously).

Most business owners I know have smaller businesses. They are not managing century-old corporations like the one where I worked previously. Most understand how to transmit a positive culture among people who work for them. But something happens, usually, as those organizations grow. More people are brought into management, more people to lead others. And it’s at that point that a positive culture can break or be diluted. When a successful start-up expands, and the founder realizes he or she doesn’t have the skills to manage a quickly-growing company, the owners often decide to bring in a more experienced executive, someone with the experience of taking small companies to the next level.

But if there isn’t a good cultural match between the founder and the new CEO, the fabric of the company can break.

And as that company grows, more employees come on board with different expectations. A start-up business with fewer than ten people at the core of operations can create a culture that calls for excellence at all times, no need for work/life balance, and personal dedication to the mission. But as the company grows with more employees, different expectations arise, like vacation time, health insurance benefits, and competitive compensation. This can be a gradual transition, or it can be quick, but it can be difficult for management to navigate this while maintaining the same corporate culture.

People want different things from their employer to demonstrate they and their work are appreciated. And as a company grows, it’s harder to keep track of what each employee needs. Thus, I can understand when a large corporation can’t quite figure out how to keep all its people happy. There are some pretty simple, but not always easy, solutions to this problem, but the bigger problem is that for most corporations, paying attention to culture isn’t as urgent as paying attention to the bottom line. Especially for publicly-traded companies, whose management has been trained to care more about their quarterly results than just about anything else, particularly anything long-term.

Keep in mind a “company” doesn’t care, but it’s the executives, those who manage and lead the business, who set the cultural tone. That’s who you need to communicate with if you want to improve the way you are treated as an employee. Of course, it starts with you. You can’t control anyone else, but you can, to a certain extent, control how you react to your situation.

It’s common for leaders, if they aren’t very good, to be unaware of how their employees feel, so resolving a toxic culture starts with communication with those who have the ability to make cultural changes. While a shift can come from bottom of the corporate ladder, it will find resistance along the way. Change must come from the top downward, because people are inclined to take on the attributes of those they would like to most resemble.

What would it take for you to feel appreciated by your company or by your corporate executives? Have you ever felt that corporate appreciate was just a show? Something for making a good impression on the outside while missing substance?

I’m probably going to throw out that plaque. Working for more than five years for that corporation means nothing to me except the one or two friends I’ve continued to have since working there, some experience gained working well in a corporate environment, and my opportunity to earn a master’s degree on someone else’s dime. Some of the top executives knew who I was, but I’m sure I’ve made no lasting difference in their lives. If I had run into the CEO in the office’s elevator, I’m sure he wouldn’t recognize me or know who I was, even I had received that plaque the same day. But at the same time, the company offered decent but declining benefits, a competitive salary, and well, a job when I needed one.

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Does Getting Married Increase Wealth and Income?

by Luke Landes
Marriage

The Urban Institute has issued a report stating the Millennial generation will have the lowest rates of marriage by age 40 than any previous generation. The report contemplates a variety of reasons for this shift, including a reduced role of marriage in a family household and the effects of the latest recession. But what does ... Continue reading this article…

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Overcoming Competitive Inertia: Stop the Comparisons!

by Luke Landes
Marching Band

I grew up in competition. It was a part of my life, all over the place. And sometimes competition moved me to push my self far, motivating me to be excellent, and in other cases, competition broke down my will to excel. An individual reacts to competition different depending on the psychological factors, the situation, ... Continue reading this article…

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Microsoft to Lay Off 18,000 Employees: How an Acquisition Affects Your Job

by Luke Landes
Microsoft

Over the next year, Microsoft’s executive management plans to lay off 18,000 employees, including factory workers and those in professional positions. Redundancy. As Microsoft acquired new companies, at least according to the news reports that tend to take a company’s press release and spokesperson responses at face value, they have the potential to take advantage ... Continue reading this article…

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Wealthy Shanghai Teens Are More Financially Savvy Than Average Americans

by Luke Landes
OECD Chart

The Organisation for Economic Co-operation and Development (OECD) recently conducted a study, presenting a financial literacy test to fifteen-year-olds around the world, and has now published the group’s findings. The sample included 29,000 teens from eighteen countries (or, in the case of Belgium and China, two communities, Flemish and Shanghai). The test is designed to ... Continue reading this article…

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If All Investments Are Expensive, Where Can You Invest?

by Luke Landes
Dinosaurs

Neil Irwin at the New York Times points out that all asset classes around the world are expensive compared to their historical prices. If that’s the case, is there any investment class available that has the potential to provide great returns over the long-term? Stocks and bonds; emerging markets and advanced economies; urban office towers ... Continue reading this article…

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If You Don’t Like Your Job, Get Another One

by Luke Landes
Fluffy Clouds

This “duh” advice is handed out frequently, but it may not be applicable to everyone who hears it.

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