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In most workplaces throughout the United States, employees receive vacation days to use every year as a benefit, and in some cases, unused vacation days expire at the end of the year. According to the latest survey by Expedia, on average, Americans earned 14 vacation days this year but used only 12. While the survey represents a larger percentage of taken vacation days than I’d assume would be the case, those 12 days are low compared to vacation days taken by employees in other countries.

In France, Spain, Denmark, and Brazil, workers receive 30 vacation days on average, and they take each of those vacation days. Is the lack of vacation in the United States a symptom of an economy under pressure to grow? Since this is a pattern that’s been consistent for many years, can we attribute the country’s growth as a major economic power in the twentieth century a result of the American workforce’s dedication to sitting in the office? It can’t be a result of the economic recession, where employees must work harder because companies are forced by their financial situation to produce more with fewer resources.

Beach VacationAccording to the survey, 58 percent of Americans say that both their work schedules and the economy do not affect their decisions about taking vacation days away from the office. Sometimes survey respondents lie, and sometimes they are unaware of their motivation and can’t accurately report it on a survey, but if the average American is leaving two vacation days on the table this year, there must be another reason.

Vacation days are different for the slice of the American workforce that includes entrepreneurs and business owners. Running your own business, particularly if your business consists of only you or of a small number of people, is a type of employment that invades your personal life. The responsibilities of a business owner are different than the responsibilities of someone who works for a large corporation. Most employees can leave their work at the office at five o’clock and dedicate the rest of their time awake to themselves or their families.

Many business owners, on the other hand, live and breathe their businesses and can’t do a good job of putting their work to the side. I haven’t had a vacation in years where I completely set aside my work on Consumerism Commentary. In the past, I’ve planned for a trip by writing articles for the website in advance and scheduled them to be published at the right times, but I’d still be on call twenty-four hours a day to make sure the site continued to operate correctly, answer important emails, and ensure a constant stream of people would visit.

In some cases, I’ve even used traveling for vacation as an opportunity to meet colleagues and clients in the area I visit. My recent trip to California to visit family also gave me a chance to meet Neal from Wealth Pilgrim and other potential partners behind the scenes. Perhaps the lack of vacation days taken by Americans on average is affected by a higher concentration of workers, like business owners, who feel — or are — personally responsible for the success of their business.

Perhaps there is another explanation, as well. On a scale from socialism to capitalism, the United States economy falls somewhere right of center. Workplace benefits of any type are results of left-of-center policies, and with “socialism” being a dirty word in today’s economy, there might be a stigma against those who make taking vacation days an issue for discussion with their supervisors. Some corporate employees want to be competitive in their workplace in order to secure their jobs, and not taking vacation days or other voluntary benefits is one way to show your dedication to the corporate entity.

While the average American leaves only two days on the table, based on an average full-time salary, that’s $34.3 billion in benefits that will go unused this year in total.

Do you receive a benefit of vacation days from your employer? How many did you take this year?

Photo: mdanys
Expedia

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While the Federal Reserve was publicly providing money to member banks at interest rates of up to 0.5% during the financial meltdown of 2008, a different, less public program bailed out Credit Suisse, Goldman Sachs, and Royal Bank of Scotland with short-term loans with an interest rate of only 0.01%. Those banks received the bulk of the help from this program, but Morgan Stanley, Citigroup, Bank of America, and BNP Paribas in France also received billions of dollars. If consumers like you and me wanted to borrow money for 28 days, we might have to turn to payday lenders or shady techniques, where the price of borrowing expressed in APR could be 500%, 1,000%, or even more. These banks borrowed at least $30 billion practically for free, and had the opportunity to use that cash as leverage to increase earnings during the economy’s toughest market in the recent recession.

The details of this “single-tranche open-market operation” (ST OMO) do not include exact amounts, and members of Congress did not even know the details of this program until now, despite oversight responsibilities. These transactions were kept mostly secret because releasing information about this type of bailout at the time could have had a disastrous effect on the reputations of these institutions, doing more harm than good in a time of crisis.

The Federal Reserve adopted a technique usually used for controlling the money supply and affecting interest rates, and turned it into a facility for extending loans to the banks without the loans being a part of the Troubled Asset Relief Program (TARP) or bailout. Bloomberg explains how this special type of lending worked.

Under ST OMO, cash changed hands through repos, or repurchase agreements, which the central bank has used to move money in and out of the banking system for at least 60 years. In a repo, the dealer sells securities to the Fed and agrees to buy them back for a higher price after a set period of time…

When the central bank increases the money supply — by paying cash for securities in repos — interest rates tend to fall. When it drains cash from the system by selling securities in reverse repos, rates can climb. Using repos to provide emergency cash, a step the Fed announced on March 7, 2008, was a departure from that process…

It’s possible this plan helped save these banks from collapse, but was it necessary? And given the secretive nature of the program, would have there been any damage if the details were made public at the time, as was done for other aspects of the Wall Street bailout? What did these banks do with a practically free loan?

Photo: sachab
Bloomberg

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It’s never completely safe to sign up for a credit card due only to its initial bonus. Many cards entice customers by offering a decent cash back bonus, then turn around and charge a high annual fee with a ridiculous interest rate. Before you know it, you’re saddled with thousands of dollars of debt, merchandise you never needed, and no way to pay it off. But every once in a while a credit card offers something too good to pass up, if you’re the intended audience. The British Airways Visa Signature® Card 100,000 bonus mile opportunity may be that offer.

British Airways Visa Signature(R) Card (Private)Bonus miles are only as good as the rewards program that defines its redemption. In the grand scheme of things, 100,000 miles can mean absolutely nothing if an airline requires 20 million miles to qualify for a free flight. In the British Airways family, 100,000 miles is meaningful. This big bonus comes in two distributions: first, the airline awards 50,000 miles after making your first purchase with the British Airways Visa Signature® Card, and later, you’ll receive another 50,000 miles after spending $2,500 during the first three months.

Once you have your 100,000 miles, you have a few options.

  • Option 1. Most consumers are more likely to use these miles for domestic flights. Although this is a British Airways credit card, cardholders can use the miles by flying with American Airlines, a partner airline. With 100,000 miles, you can fly for free more than once, depending on class and destination. I estimate that the value of this, in terms of estimated savings, is about $1,000.
  • Option 2. The miles could be worth more if you use them for traveling abroad. British Airways allows you to redeem your 100,000 miles for two, round-trip transatlantic flights to Europe Zone 1. You will fly economy class and you will still need to pay the taxes for each ticket, which could be about $300. I estimate using miles for this travel could save about $2,500.
  • Option 3. Rather than fly economy, why not fly in style? You can redeem 100,000 miles for one business class flight to any Europe Zone 1 location. Even with the expected expense for taxes, the potential savings are significant. For example, a business class flight from San Diego to most any United Kingdom location runs more than $5,000.

Europe Zone 1 includes Belgium, France, Germany, Ireland, Luxembourg, Netherlands, Switzerland, and the United Kingdom.

Not only does the British Airways Visa Signature® Card provide a monster sign-up bonus, but it also has a decent rewards program. Cardholders earn miles for every purchase, with a two-tier structure:

  1. 2.5 miles for every dollar spent on British Airways flights
  2. 1.25 miles for every dollar spent on all other purchases

There is no introductory offer associated with the British Airways Visa Signature® Card from Chase. The purchase APR is 14.24% variable, depending on the your credit history and quality. Unfortunately, Chase charges an annual fee of $95 to own this card. Considering the big up-front bonus and a free companion ticket every year you renew your membership, the annual fee doesn’t hurt the overall value of the credit card for anyone prepared to take advantage of this offer. In the best case scenario, it would take more than 70 years of being a member before the cost of annual fees surpass the value of the sign-up bonus. In the worst case scenario, anything’s possible, but with 100,000 miles to start with, the annual fee is nothing more than a nuisance.

Writing about credit cards for quite a while, I can honestly say the British Airways Visa Signature® Card offers potentially one of the biggest credit card bonuses ever. If you’re planning a trip abroad this year or next and are looking at ways to make the vacation a lot less expensive, consider the British Airways Visa Signature® Card. The 100,000 mile bonus is unbeatable.

This offer has expired as of May 6, 2011.

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This is a guest article by SimplyForties, a 48-year-old single mother of a college-aged son, who is navigating her way through midlife and documenting it.

Like a lot of people, I lost my job in the summer of 2009. I had a very lucrative position as an off-site paralegal for a retired Coast Guard commander who worked as a liability expert in cases of marine casualty. He felt I was invaluable to him and he was willing to pay me a good deal of money to always be at the top of my client list. To top up my coffers even more, I had a few contracts providing technical network support to local small businesses. I was making a lot of money but I was also working a lot of hours.

When the bottom fell out of the economy, insurance companies were choosing to settle instead of going to court, and the bottom fell out of the liability business too. I lived in a very small town in west Texas and when my primary client had to regretfully let me go, there was little chance I could pick up enough business elsewhere to bridge the gap. I had a mortgage payment, a son in college and some decisions to make.

I had for a long time been yearning for a different sort of life, and this seemed like a good time to make a drastic change. I began to think about where I would choose to be if I could be anywhere. What I came up with was a little cabin, a few chickens and a garden; in other words, a much simpler, less expensive lifestyle. I put that out there and things started to get a little weird!

I stumbled across an article on a blog I’d never seen before. The article was about a small farm in southwestern Virginia the author had purchased. He was unable to occupy the farm right away, so he was looking for a caretaker. On a whim, I sent him a response. He received dozens of applications but, after discovering and reading my blog and realizing we were on the same path, he offered me the position.

I put my house on the market and made arrangements to sell the bulk of my possessions. In spite of the soft market, I was able to sell my house in three days for above my asking price. Within a month of having read that blog post, I was on the farm, living a very different life!

When I first came to the farm I was expecting to be here for a year. After six months, the farm owners suffered a change of circumstance and let me know that they would be moving to the farm on April 1, several months premature. I decided house-sitting might be just the gig for me so I signed up with a service and starting looking for another position.

Things are going pretty well. My next stop will be just outside Knoxville, Tennessee, where I will be house-sitting for some RVers who are setting off on a six-month trip around the country. In October I will be looking after a home in Houston for some clients who spend the better part of the year in France. That gig will take me through June of 2011 by which time I will have been house-sitting full-time for nearly two years.

Although my income and my social circle has greatly decreased, I have been able to keep working and keep in touch with those of my friends who mean the most to me, thanks to technology. I’ve learned a lot about myself since starting this adventure. I am confident that I will be fine wherever I go, that I will be up to the challenges that face me.

I miss having friends I can call to meet for lunch or catch a movie or go for a drink but there are nice, friendly people everywhere, and I’m learning to reach out a little more. I’ve learned that I value free time more than money. I used to dream of a windfall solving my problems. Now my needs are few and all I really care about is being able to pay my very few bills and hopefully put a little away. The main thing I’ve learned is to stop pushing and allow life to happen.

How does anything get done if you stop pushing? It’s not about doing nothing, it’s about deciding where to put your energies. I’m no longer striving for a better job, bigger house, newer car or a bigger bank account. I’m striving to be a better person. That’s hard work. I figure if I can get that one down, the rest will take care of itself!

I don’t know what is going to happen next but I know that it will be the right thing and I’m facing it with a feeling of happy anticipation!

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Bonuses Could Be Taxed at a Rate of 50%

by Flexo

Last week I mentioned France would be seeing a new but insignificant tax on carbon emissions and considered the possibilities, including possible reactions, if a similar tax was initiated here in the United States. Both political sides are criticizing this tax and it’s not expected to be effective in terms of its goal of encouraging ... Continue reading this article…

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France Introduces Carbon Tax of $25 Per Metric Ton

by Flexo

President Nicolas Sarcozy of France revealed his plans for working to reduce his country’s carbon dioxide emissions. For each taxpayer’s metric ton of carbon dioxide emission due to use of oil, gas, or coal, the government will charge that taxpayer a fee of €17 (roughly $25). This rate would rise over time. Other energy use, ... Continue reading this article…

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Take Control of Your Finances Part 3: Spend Less Than You Earn

by Flexo

This should come as no surprise to Consumerism Commentary readers or anyone who has spent time reading anything relating to basic money management advice. Once you’ve decided to improve your financial condition and spent some time tracking your spending, you may have come to the conclusion that your situation declines each month because you’re allowing ... Continue reading this article…

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Question of the Day: How Much Vacation Time Do You Use?

by Flexo

I’ve been at my current company for six years now. That’s quite an accomplishment as I intended to work for this company for a short time while seeking out something more meaningful. As I’ve stayed with the company while moving around to a variety of departments, I’ve accrued to privilege of taking an increasing number ... Continue reading this article…

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