Podcast Summary
Maximizing Hiring Potential on LinkedIn: Small businesses can expand their candidate pool by utilizing LinkedIn for hiring. Over 70% of LinkedIn users aren't actively looking for a new job but can be approached for the right opportunity.
Small businesses miss out on a significant number of potential candidates by not utilizing LinkedIn for hiring. With over 70% of LinkedIn users not visiting other leading job sites, professionals like Sandra, who weren't actively looking for a new job but were open to the perfect role, can be found only on LinkedIn. On the other hand, when it comes to managing cash, it's essential to find the right balance between savings and investments. In the current economic climate with high inflation rates, it's crucial to have an emergency fund. However, keeping cash under the mattress is not the best option as it results in lost potential earnings. Moira O'Neil, a UK-based financial journalist, and Georgia Lee Hussey, the founder and CEO of Modernist Financial, provided valuable insights on the topic. They discussed the importance of having enough savings for emergencies, the role of cash in a diversified portfolio, and the benefits of investing instead of hoarding cash.
Emergency Fund: 3-6 Months' Savings with Growth Potential: Aim for 3-6 months' emergency savings, allocate funds between checking, savings, and high-yield accounts, and adapt strategies to high-interest and inflation environments.
Having an emergency fund is crucial for financial security, aiming for between 3 to 6 months' worth of savings. However, it's essential not to oversave, as keeping all savings in a regular bank account doesn't allow for growth. Instead, consider having a month's worth in a checking account, another month in a savings account, and additional 2-4 months in a high-yield savings account. These layers of cash provide a safety net while allowing potential growth. Additionally, consider the purpose of any extra savings and explore investment opportunities for longer-term goals. In this high-interest and inflation environment, it's essential to adapt savings strategies accordingly. Remember, understanding your savings history and familial patterns can help determine your savings habits.
Savings Strategies in High Inflation: In high inflation, layer savings in high-yield accounts, current accounts, and term accounts to protect purchasing power and potentially earn better returns.
Inflation erodes the value of money over time, and keeping large sums of cash in a savings account may not be the best long-term financial strategy, especially when inflation rates are high. For instance, if inflation is running at 5% a year, your money in a savings account earning 4.5% is still losing value. To mitigate this, consider layering your savings by utilizing various types of accounts, such as high-yield savings accounts, current accounts with attractive deals, and term accounts. High-yield savings accounts offer better interest rates but may require you to move your money to earn the best rates. Current accounts sometimes provide incentives for switching, and some offer high-interest regular savings accounts attached. Term accounts, like CDs in the US, allow you to lock away your money for a set period to earn higher interest rates. By creating a "ladder" of savings, you can have money in different types of accounts maturing at various intervals, allowing you to take advantage of the best rates while still maintaining some liquidity. Remember, the goal is to balance safety, accessibility, and return on investment. Keeping all your money in a basic savings account may seem safe, but the value of your money is declining over time due to inflation. By exploring different savings options and layering your savings, you can protect your money's purchasing power and potentially earn a better return.
High yield savings accounts vs money market funds: High yield savings accounts are more liquid, insured, and offer competitive yields compared to money market funds, making them a better choice for most savers.
While money market funds and high yield savings accounts have their differences, high yield savings accounts are generally recommended due to their liquidity, insurance, and competitive yields. Money market funds, on the other hand, are not covered by deposit insurance and may not offer significantly higher yields than high yield savings accounts. In the US, it's advisable to use checking accounts, high yield savings accounts, and bond funds for savings, while in the UK, it's recommended to spread large lump sums among institutions up to the Financial Services Compensation Scheme's limit and consider the government-backed National Savings Investments as a safe haven, although with lower yields. Ultimately, the choice depends on individual financial goals, risk tolerance, and market conditions.
Don't let fear dictate your financial decisions: Consider individual milestones and appropriate investment vehicles for cash needs and long-term goals. Fear should not drive unnecessary money movements.
People should not base their financial decisions solely on fear or anxiety, especially when it comes to deposit insurance and the perceived safety of large versus small banks. The FDIC covers all types of banks up to $250,000, including credit unions. The need for readily available cash beyond emergency savings depends on individual financial milestones, and the appropriate investment vehicles may vary. For instance, if a down payment is needed in the near future, a deposit insured account or a 2-year bond might be suitable. However, for longer-term goals like buying a house, a diversified portfolio with a higher allocation to stocks could provide better returns and help outpace inflation. The current climate of uncertainty should not lead people to move their money unnecessarily, and it's crucial to consider financial planning as a long-term process with various milestones along the way.
Align investments with time horizon for financial goals: Consider cash accounts for short-term goals, high-interest savings for inflation, and plan for future unexpected expenses with regular savings.
Aligning investment allocation with the time horizon of financial goals is crucial. If your goal is less than 5 years away, consider keeping your money in cash accounts or notice accounts to avoid market volatility. For those struggling to build up cash while managing inflation, look for high-interest savings accounts attached to current accounts and consider switching providers for better deals. Additionally, be mindful of future spending, which can account for up to 40% of our expenses and often comes as unexpected, larger purchases. Regular savings and careful planning can help mitigate financial stress and ensure financial stability.
Save for unexpected expenses and build an emergency fund: Regularly set aside small amounts for unexpected costs and consider investing excess cash to beat inflation with expert advice and proper planning.
Managing future expenses and building an emergency fund are crucial for financial stability. This can be achieved by setting aside small amounts regularly for unexpected costs, such as car repairs or medical expenses. It's like a modern version of the envelope system of saving. For those with large cash reserves, it's essential to educate yourself about inflation and investment opportunities, such as pension funds and ISAs, to make the most of your money. Having a clear vision and understanding of your values, as well as seeking expert advice from a certified financial planner, can help navigate the complex financial system and make informed decisions.
Understanding Your Bank's Impact: Consider a bank's values and how they use your deposits before choosing to invest there. FDIC insurance is important, and beware of unnecessary bank switches.
Being aware of where your money is being invested and ensuring it aligns with your values is crucial. Banks have the power to make significant loans based on your deposits, so it's essential to consider if they are supporting causes you believe in. Additionally, it's important to double-check that your bank is FDIC insured before considering moving your money to a larger institution. The website mightydeposits.com can help you understand how your bank utilizes your deposited funds. Furthermore, there seems to be a trend of people moving their money back to large banks without logical reasons, so it's recommended to stay with a bank that treats you well and aligns with your values.
Quince's customer-friendly policies: Free Shipping and 365-day returns: Quince offers free shipping and returns for 365 days, making shopping convenient and hassle-free for customers.
Quince offers free shipping and returns for 365 days. This means that customers have the flexibility to shop online without worrying about additional costs or the hassle of returns. Whether it's for a gift or for personal use, customers can shop with confidence knowing that they have ample time to make their decision and receive their items with ease. Quince's customer-friendly policies are a significant advantage in today's e-commerce market. With the rise of online shopping, it's essential for businesses to offer incentives that set them apart from competitors. Quince's free shipping and returns policy is a clear differentiator, making it an attractive option for consumers looking for a seamless shopping experience. Moreover, the 365-day return policy provides customers with peace of mind, knowing that they have plenty of time to decide if an item is right for them. This policy also shows that Quince values its customers and wants to make the shopping experience as convenient as possible. In summary, Quince's free shipping and 365-day return policy are key selling points for the brand. These incentives not only make the shopping experience more enjoyable but also build trust and loyalty among customers. So, if you're considering shopping with Quince, remember that you can enjoy free shipping and returns, giving you the flexibility to shop with confidence.
