Category: Budgeting

Chart of Personal Saving Rate from January 1959 to May 2021

Personal saving is a percentage of disposable personal income (DPI) and is calculated as the ratio of personal saving to DPI. Personal saving is equal to personal income less the personal outlays and personal taxes; it may be viewed as the portion of personal income that is used either to provide funds to capital markets,…
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Being Cheap Can Cost Money

Everyone has experienced the cost versus value decision.  Should I buy the best or the cheapest product that I am looking for?   Sure, there are times that buying a lesser quality or last year’s model will have little to no effect on the product you are looking to purchase.  If you are buying a…
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The Value of an In Person Trade Show

For large and smaller companies, national trade shows can be very expensive and can be one of the largest uses of a company’s marketing dollars. Look at all of the costs associated with trade shows from the booth, to prepaying for exhibit space, all the shipping costs to get trade show items there and back,…
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Graph of CPI and PPI from December 1950 to March 2021

As of March 2021, both the CPI (Consumer Price Index) and PPI (Producer Price Index) have shown increases.  The CPIs are based on prices for food, clothing, shelter, and fuels; transportation fares; service fees, such as water and sewer service, and sales taxes. The producer price index (PPI) measures the price that industrial producers get…
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The Upside and Downside of Economic Transition Risk

There are businesses that do well and prosper during difficult economic time (recession, pandemic, legislative changes, inflation) while other businesses struggle or go out of business.   Businesses that experienced an economic upside during the pandemic were real estate, home furnishings, home improvement and technology companies.  People moved to the suburbs, set up home offices,…
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Map of the Hourly Wage by State

As of January 1, 2020, the Federal minimum wage is $7.25 per hour.  There are numerous states that have set their minimum wages higher than the Federal minimum wage.  See the map below for your state’s minimum wage. An employer of tipped employees is only required to pay that employee $2.13 per hour in direct…
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The “Feckless Business”

The “Feckless Business” is a business that is managed irresponsibly and lacks initiative.  Or another way of putting it, a business that has no budget or strategic plan and just exists day to day with ownership and management dealing with problems of their own making.   It is easy being a “Feckless Business” with no…
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Willful Blindness

“Willful Blindness” in a business is the conscious act of avoiding the truth, which gives credence to the knowledge of an issue in question, but never resolving the issue. Willful blindness can be at any level of management or on any type of business issue that needs to be addressed and resolved. A business’s willful…
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What Is The Path Forward Into 2021?

What is the path forward into 2021? A strategic plan will make the journey into 2021 easier.

Business Drift

“Business Drift” is a perpetual problem with any business, big or small, in any industry.  In the food and distillery industry it is called “Flavor Drift”.  In business, “Drift” is the act of slowly drifting away from the core business.  This can either be intentional or unintentional.   Businesses that avoid “Drift” are emphatic about…
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