2016 saw job turnover rates hit 17.8% - which is the highest it has been since the Great Recession. Machines are automating many jobs, companies are using the independent contractor route to avoid liability and higher compensation. Which means employees are less and less satisfied with what the workplace has to offer. Are you ready for an upgrade? Finally going out on your own, taking a raise at another place, taking time for yourself, or whatever other reasoning you can have for leaving a job - there's a classy way to do it. Sure we'd all love to mimc Dave Chappelle's classic "I quit" sketch, kicking over trash cans, flipping off supervisors and co-workers, and leaving a big fart in the room right before we leave - but burning bridges never helped anyone, and you never know when you may need a reference, or just to not have being an asshole as a stain on your reputation.
Make Sure You're Sure + Have An Exit Strategy
Having one bad day, then telling everybody off and going out in a blaze of glory looks great on TV, but in real life, this probably isn't the best way to go about things. First things first is the make sure that you are absolutely ready to leave an organization that you have invested your time, energy and hours on and vice versa. If you're sure staying isn't a viable option, then it's time to plan your escape. Save up money, find other job options, know what you're going to be doing with your time. This will make your transition period way smoother. Having a plan will also make enduring those last few days that much more pleasant as you'll already know the bright future that lie ahead of you.
Give Notice, Do It Face to Face
Best practice is to deliver a letter of resignation two weeks in advance and deliver it hand to hand. This can be both a terrifying and exhilarating experience. If circumstances do not permit for a face to face, email is your next best option. This is a delicate phase, but as long as you express gratitude for your tenure with the company, and that you are simply moving on, usually everyone remains amicable and very positive. You're not obligated to say much here, and you shouldn't. Avoid gloating about your new endeavor and going on negative rants about the current company. You're moving on, so let's leave on a high note.
How to Handle the Flip Out, The Counteroffer, and the Request to Stay for Longer
At this point, you've mentally moved on, you've laid foundation for your new beginnings and you've given your notice. No matter how professional you are, you never know how your soon to be ex boss will handle this. Sometimes people take it very personally when an employee wants to leave. They may yell or attempt to belittle, stand your ground, remember why you're moving on. Sometimes however you may be hit with a counteroffer - more money, more perks, better treatment. You have to decide for yourself if any of these incentives are reason for you to stay somewhere you've just made up your mind to leave. Sometimes an employer may request that you stay longer to help with your transition. Remember that while you have no obligation to stay any longer than you've given notice for, it can be good practice to see any projects you're working on all the way through. This is a good indicator to your new employer that you are team player who is aware of the bigger picture.
Get a Reference While You're Still Hot
After a great conversation and presenting your well written letter, now is the ideal time to ask for a letter of recommendation and/or a reference. Don't give too much time for this to linger, but capitalize while the feelings are high and in good favor. This will go a long ways down the line and it's a really easy request at the end of your resignation meeting.
Claim What's Yours, Leave What's Theirs
Clear your desk, your computer, your hard drives, etc. Everything that is yours that you have built that you are not under contract to leave with your company, you take. Contacts, resources, info, all of it, you worked to earn it, so don't rush out the door empty handed. Conversely if you agreed that certain things remain property of the company than leave those things - no need for lawsuits and pursuits against you down the line. Also make sure you check for any paid sick days, vacation time, bonuses owed, 401K and retirement savings. Often times there's some extra money and perks waiting for you upon your exit, but if you don't ask, don't expect your former employer to go out of their way at all to get any of it to you.
When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The Federal Reserve
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.
Frugal gifting often gets a bad reputation. However, this shopping method does not make you cheap — it makes you practical. Frugal gifts often avoid waste and overspending and can be just as meaningful (if not more so) as any other present.
With the National Retail Federation predicting each consumer this holiday season to spend upwards of $1,000 on holiday gifts amidst an economic recession —this year might be the perfect time to reconsider your spending budget. We've formulated the ultimate list of frugal gift-giving ideas to get you started.