There’s a good chance you or someone you know has experienced identity theft. Everyday people’s names, social security numbers, credit card numbers, passwords, and even medical information is stolen and used to commit fraud and other crimes. According to the FBI, over 100,000 identity theft and personal data breaches occur every year. However, identity theft goes beyond online security. In fact, many people have their identity stolen by someone they personally know. Once someone’s identity has been stolen the damage can be far reaching. It’s estimated to take up to six months and 600 hours to set things right and restore order to your name and credit. So how can you prevent this?

Many companies offer identity theft protection, sending you alerts if anything looks fishy, but that’s about where it ends. Sometimes that’s enough to nip a problem in the bud and stop it. Another option is to sign up for identity theft insurance. These types of programs are in place to help you after a problem occurs. Usually this means that an agent is assigned to handle all the issues and sorting through the fallout, meaning all those hours it takes to fix the problem, can be shared with a professional to help.

Your identity can be stolen even if you don’t use a computer. Identity criminals are getting more and more clever, always seeking for ways to scam people. Just remember, this is your personal information. In the hands of someone else, it could crumble the foundation of the life you have built for yourself. Something that important is worth protecting. Whether you choose to keep it simple and use a monitoring service or include insurance protection, protecting your information is protecting your future.

For more information you can go to:

FTC.gov/IDtheft and identitytheft.gov/

Photo by: Towfiqu barbhuiya

424. That’s the number of national parks in the United States. Though most people think of the grand sprawling parks like Yellowstone, the Grand Canyon, and the Everglades, our national parks encompass far more than the 63 traditional “National Parks.” There are national preserves, monuments, memorials, historical sites, battlefields, as well as recreational areas. Beyond that, that are over 3,700 state parks in the U.S. covering more than 14 million acres. 

State and national parks provide an array of recreational opportunities in a relatively close setting. These parks also serve as protected spaces preserving natural resources, wildlife, habitats, fresh water sources, and clean air. Having clean green spaces ensures the health of our environment and helps maintain healthy ecosystems. Whether it’s a quick getaway or an extended trip, visiting a state or national park can be an enriching and memorable experience. Those experiences help fill our gratitude bucket, deepening our appreciation for our country’s diverse landscape, resources and history.

When money is tight most people find ways to cut back, making their money go farther, but if you have a lot of debt, the best way to create more wiggle room in your budget is to eliminate the debt. This can seem like a very overwhelming task, but if you approach it in a simple straight forward way, the task becomes very manageable.

Snowballing debt has become the go-to method for many people. So, how do you get that snowball rolling? First and foremost you have to make a commitment to STOP borrowing money!

Before beginning the snowball method it’s important to establish a budget and make sure you have enough money to cover all your minimum payments as well as the extra required for power-paying your smallest debt. It’s important to establish how much money you will be able to add to the first debt’s minimum payment. You don’t want to create more problems - you can’t rob Peter to pay Paul; you can’t pay off debt by creating more debt.

The first step is to list your debts in order of the from smallest to largest. Unlike some other methods, when using the snowball method you ignore the interest rate of the debts, you are solely looking at the overall amount still owed, and the monthly cash flow for each obligation. Each month you will put the extra money you budgeted toward the smallest debt along with its minimum payment.

Once the smallest debt is paid off, take the amount you were paying toward the smallest debt and apply it toward the next smallest debt. Now, you will be paying the minimum amount plus the previous bills minimum, plus the extra budgeted money. This is where the snowball starts rolling. The added money going towards the second debt allows you to pay it off even faster than if you were simply paying the extra budgeted money.

Pretty soon, the second debt will be paid off. Using all the money (from the first debt, the second debt, and the budget money) you will continue to pay off the debts moving upward toward the larger debts until they are all paid off. Each time you pay off a debt the money is applied to the next debt up the line, which will be larger, thus paying it off quicker.

Continue to make the minimum payments on all your debts, except the one you are currently snowballing, which will be receiving the added payments. The more money you can put towards your next payment the bigger your snowball gets and the faster your debt is eliminated!

Remember to stay up to date on all your bills. If you are behind in anything, it’s important to get things caught up before starting the snowball method. If you are struggling to bring things up to date you can contact your lenders to see if there are options for adjusting payments or due dates.

Getting out of debt can be hard, it takes, sacrifice and self-discipline, but the reward is financial freedom, giving you back the reins on your finances. Remember to focus on how awesome it feels to have paid off a debt!

By July those of us in the continental U.S. are in the full swing of summer. For most, that means picnics, swimming, camping trips, family reunions…and sometimes drought conditions. For many people this means water restrictions limiting how often we can water our lawn, but when examining the broader picture, we can see that drought has far reaching consequences. Drought has the capacity to impact all people across the many facets of our economy, potentially stalling growth.

Water is a vital resource, a scarcity of it can cost some countries as much as 6% of their GDP. According to drought.gov, drought ranks third among environmental disasters, resulting in an average cost of about $9 billion per year making drought years extremely hazardous to our economy.

The most obvious and immediate effects of drought are found in our farmlands. The agriculture sector accounts for about half of all economic losses from drought. Without steady rainfall farmers will likely have a diminished harvest, creating a scarcity and increasing their costs as they are forced to use alternative methods in order to continue providing water. Through environmental and economic connections, this affects the food supply we see in our grocery stores, as well as feed for cattle and other livestock, which then increases the cost of meat and other animal products down through the supply chain. Beyond the current year’s drought, the lack of moisture damages the quality of soil, making it harder to grow healthy crops the following year, impacting future potential income of farmers.

The effect of drought on farmland doesn’t just end with food harvest or animals. Businesses that depend on farming, like tractor and farm equipment producers and sellers, also feel the pinch of losing business that a farmer can no longer afford or no longer needs due to damaged crops or lost livestock.

Farming is not the only industry that can experience the harsh impact of drought. Tourism and leisure businesses that are funded by water-based activities like boating, rafting, fishing, and even skiing suffer. When lakes, rivers, and reservoirs are low from a lack of rain or winter run-off these businesses experience decreased numbers and cancellations. Other waterfront type businesses that rely on tourism or seasonal visitors for their income like hotels, shops, and restaurants, will also experience the decline.

Where there is drought and dry wood and plants there are often wildfires. When this happens it can have an extended impact on the timber industry, which goes on to affect the cost of lumber, and ultimately the prices of the housing industry.

Droughts have an extensive reach that lie in the peripheral, all around, but not as quickly noticed. When water supplies dry up, the lack of moisture causes the ground to shrink. This contraction can damage structure foundations, roads, and water pipes, which puts added stress on personal, city, and business budgets. Power companies that rely on hydroelectric power face reduced energy production and even potential closures of facilities during extended periods of drought, resulting in higher energy costs for consumers. Water-based transportation like barges may have difficulty navigating in the low water levels of rivers and canals, which goes on to affect business that rely on those transports.

Droughts are more than just a dry period. All parts of our country are subject to droughts, not just out west in the deserts of Arizona, Nevada, Utah or California. Drought has the potential to greatly affect the economic standing of many people and businesses, making water management a key factor in economic growth and planning.

Photo 1 by Matt Palmer

4,844. That’s the number of Federally insured banks in our country. The U.S. has more banks than anywhere on earth; that number is fed by local and regional banking. Small banks have always been a large part of our economy.

Back in March we saw a bank run that caused the collapse of Silicon Valley Bank, the second largest bank failure in U.S. history. Understandably, this brought a lot of fear to anyone banking with a small bank, with the assumption that their bank could fall too. In a short time big banks across the country saw huge deposits as people transferred their money, supposing that these big guys were too big to fail.

What a lot of people may not realize is the major fears that some have are unwarranted. If you have less than $250,00 in the bank your money is covered by FDIC insurance.

Regional and community banks are vital to the U.S. economy. Community banks provide 77% of agricultural loans and over half of the small business loans in our country. Small banks are able to lend to a wider range of people than the big banks. When you bank with a community or regional bank you are supporting a local small business, which means you are supporting your local economy. When you give your money to a big bank, that money goes to support big businesses that may not even know your city or town exists. Small banks are able to tailor their business to the needs of the community. They are also more aware of the needs and the risks within their area, far more than a big bank ever will be. Small banks can perform and provide for their community in ways that big banks simply can’t.

Usually, a local bank is less costly and has lower employee turnover. They may also offer fewer or lower fees and offer more competitive rates. Not only do they offer products and services that are more geared towards your community, but small banks tend to be more interested in meeting the needs of their customers. They recognize that they depend on their customers just as much as their customers rely on them. With a small bank, it’s likely you will work with the same tellers, the same loan officers, and build relationships with the individuals that work at your bank, and they will get to know you.

Wouldn’t you wanna go where everybody knows your name?

Money exchanges hands every day. Whether its paying cash at the store, using a debit or credit card at the gas pump, or paying bills online. How is it that these myriad ways of spending money is consistent and accepted all across our country? What gives our money it’s value?

At one time, our money was backed by the value of gold, this was known as the gold standard. However, in 1971 President Nixon abandoned the gold standard in an effort to curb inflation and prevent foreign nations from depleting the national stores by redeeming their dollars for gold. With the gold standard the government could only print as much money as they had gold.

Because fiat money is not linked to a fixed resource like gold, it’s not scare, so central banks are able to control the supply, giving them more power to manage things like credit supply, interest rates, liquidity, and the velocity of money.

While this system works to stabilize the economy and curb inflation, it is a delicate balance. Behind all the bureaucracy and regulations, if a people lose faith in their government, the currency will no longer hold value. In simple terms, our money has value because of the confidence we place in our government. We trust them to honor the value they have set forth.

This can be problematic; if a government begins making choices that the people do not agree with, the people will lose their confidence in the government and their currency would become worthless, crippling the economy.

There is no perfect system. There are pros and cons with both gold standard and fiat money. The one truth that holds true no matter which money system is used: you can’t spend your way out of debt. Which ever currency you have, you need to manage it well.

Photo by Giorgio Trovato

Who hasn’t sat at their desk and wished for a nap at least once? In today’s world most people run a fast paced life with more things to do than there is time for. It’s exhausting and can lead to a lot of fatigue during working hours. Fortunately, there’s something you can do. Take a nap.

According to the CDC both short and long naps can increase alertness. A short nap is usually 15-30 minutes, whereas a long nap is an hour to 1.5 hours. This period of actual sleep benefits our brains and our bodies, more so than just a quiet rest period.

Research has shown that people who frequently take naps tend to perform better at work, school, and athletics and make them more productive. While not feeling sleepy is its own perk, people who nap and feel well-rested tend to experience less stress and reduced tension, which can lower your blood pressure and reduce your risk of heart disease. Well-rested, nap-taking people also tend to have healthier immune systems, which means fewer sick days. A nap can also directly improve your mood and help you regulate emotions, helping you stay calm during stressful situations without getting as flustered. Do you tend to forget names or faces, or sometimes you can’t remember a specific word? Napping could help with that. According to Johns Hopkins and the Mayo Clinic naps can improve memory and recall.

A short nap, 15-20 minutes, during the day is recommended. This allows your body to rest and recharge without the groggy feeling upon awakening. Longer naps allow your body to enter a deep sleep stage and can be harder to wake from, leaving you feeling groggy, so should be taken towards the end of the day or on days when you have more time.

So, if you find yourself regularly overcome with fatigue or experiencing high levels of stress in your life, consider adding naps to your daily schedule, perhaps as part of your lunch break!

Imagine a perfect day. The sun is shining, the birds are singing, and everything is going your way…until suddenly it’s not. We’ve all experienced unexpected turns in our lives. Perhaps you lost a job, an auto accident, developed serious health problems, or simply had an appliance break down. Things happen, and it can be costly, especially if you don’t have an emergency fund.

Having a dedicated savings account specifically for emergencies could be the difference between drowning in bills and stress or gracefully working through the difficulty. Having intentionally set money aside will allow you to navigate potential financial hardship and recover quicker.

The amount of money dedicated to an emergency fund will vary from person to person, depending on each unique situation. However, a general rule of thumb is to have enough in your fund to cover 3-6 months of your bills and expenses. Set a goal amount, then break that amount into smaller milestone amounts. Saving towards those smaller amounts is very attainable and will lead to greater savings. As you continue to save it gives you a sense of satisfaction and achievement.

The habit of saving is more important than the amount of saving! For some people, it might be a struggle to put money aside, especially those living paycheck to paycheck, but even little amounts of money set aside will add up and give you a financial cushion. There are many strategies for putting money aside, even ones as simple as putting aside your extra change will help. You could save a percentage of your income each paycheck, something as small as 1 to 3%.

There may be times when you receive a large sum of money, like a tax return, a gift, or inheritance. It may be tempting to spend that money, but this is a wonderful opportunity to grow your emergency fund. By putting a portion of that large sum in your emergency fund you are investing in yourself and your future stability.

Once you have an emergency fund established…when should you use it? Remember that this is an EMERGENCY fund. This is not a back-up fund. This is not a fund that you dip into if you don’t have enough to make a purchase. It is a good practice to establish guidelines; decide beforehand what you consider an emergency. This is important to establish because not all unexpected situations are real emergencies. We often create our own emergencies; we can justify our spending for anything.

When emergencies arise, this reserve fund can help you avoid turning to other sources like credit cards or loans, which will end up costing you more money. If you use your emergency fund remember to replenish it as soon as possible so you can be prepared for the next unexpected situation. Stay prepared and enjoy a Secure Tomorrow.

Image 1 by mosi knife

Image 2 by Simran Sood

Everyday consumers go to the grocery store and purchase eggs. Gross Domestic Product (GDP) tracks that purchase, as well as all the other purchases made by consumers. In our last article we wrote on GDP and how it is used to monitor the current economy by measuring the monetary value of final goods and services purchased by a final consumer. But this leaves out a huge piece of the economic picture. How did the eggs get to the grocery store? What happened, and more importantly, how much was spent, getting them on the store shelf? There is another tool that allows us to see deeper into the economy and gives a clearer picture of what’s really going on called Gross Output (GO).

Gross Output depicts a different narrative. It generates a deeper, more encompassing view of the economy, showing the central role that businesses’ purchasing and spending plays in the national income and economic health. GO not only includes the final sale of an item (GDP), but all the purchasing that takes place in between, meaning you can measure the economy at all stages of production. You can think of it like the difference between an x-ray, which shows the general internal map and structure, and a CT scan, which shows a more detailed picture of not just bones, but organs and tissues as well. GDP shows a basic overview, just like the x-ray, but the GO shows us deeper and more complex systems and functions.

GDP ignores business to business activity and supply chains, which is more than half the spending that takes place in our economy. This makes it seem like consumer spending makes up the majority of the economy, but consumers can’t consume unless there are products being made in the first place, and those products can’t be made without spending and

purchasing on a production and manufacturing level. Leaving out the supply chain is a huge omission; this is why the GO is so important to track. Imagine only tracking the purchase of eggs to determine the health of the economy, instead of factoring in the cost of keeping and feeding the chicken, the farm, the packaging plant, and the delivery truck.

Gross domestic product (GDP) showed 2.6% growth in the fourth quarter, but gross output (GO, which measures spending during all stages of production) only grew by 1% or less. GO and GDP don’t always move in the same direction or at the same rate. GO tends to drop more but recover quicker. However, studies have shown that whenever GO grows at a slower pace than GDP, it suggests a slowdown or recession is in the future.

All this isn’t to say that GDP doesn’t have a place or doesn’t have value. As Mark Skousen, PhD. explains, “GO is the ‘top line’ in national income accounting; GDP is the bottom line. GO and GDP are complementary but tell different stories.” Gross Output is another tool in our box that can help us better understand the current economy and help us see where the growth is happening.