Generational tips for preparing for a recession

Rising gas prices, interest rates, and layoffs are indicators that the economy may be headed for a recession.  The good news is that a recession typically lasts for six to twelve months. Below are a few tips depending on your stage in life that will help you prepare for a recession.

Young professionals (18-24 years old)

1.       Develop a budget. A budget will allow you to assess how you spend your money and prioritize essential expenses.

2.       Pay off consumer debt. Struggling to pay off debt during a recession can adversely affect your financial future.

3.       Develop multiple streams of income. Evaluate your interest and skills and develop active (e.g., delivery driver, freelance consulting) and/or passive (e.g., course creation, real estate investing income streams.

Career professionals (25-65 years old)

1.       Increase savings. Work towards developing an emergency fund for at least one year. 

2.       Keep bonds in your retirement portfolio. Bonds provide a buffer when stocks are performing poorly.

3.       Don’t try to time the market. Financial experts recommend to diversify your assets rather than making hasty decisions when the stock market is down.

4.       Refer to step #3 under “Young professionals (18-24 years old)”.

Retirees

1.       Pay down debt. Paying interest on loans will limit the amount of money you can place in an emergency fund.

2.       Stash your cash. Keep at least a year’s worth of expenses in your retirement account.

3.       Shift some assets into bonds. Review your asset allocation to ensure that you don’t have most of your assets in stocks that are likely plunging during a recession.

Your experience is not my experience

Results may vary. It is likely that you have seen this phrase in commercials which tout the benefits of their products. Don’t you wish that your mentors, colleagues, friends, and family would provide this disclaimer when giving you advice about your career? In my career I have listened intently to career success stories and followed well-meaning advice provided by individuals who have had successful and financially prosperous careers. I was told to network, get involved with professional organizations, and take on additional responsibilities at work. Although I followed their advice, I have yet to receive the accolades and compensation of these individuals. However, their advice has allowed me to network with many people and have a variety of career experiences. When I have shared the outcome of my efforts with colleagues, some were surprised that I had not been promoted because they knew that I had put in a lot of hard work.  A few acquaintances even questioned if I was working “hard” enough. This questioning caused me to ask myself if I was doing everything I could to achieve the success that I wanted.

 Factors that may inhibit your career growth

1.       Working in a toxic work environment.

If you find that leadership does not actively support professional development, it is time to seek other employment.

2.       Mindset

I have often heard the phrase: “It’s better to stay with the devil that you know, than the devil you don’t” as it relates to seeking a better career opportunity. This mindset cripples career growth.

Instead of doubling down on my job to the point of burnout, I decided to reevaluate my definition of a successful career. A successful career for me now includes acquiring professional skills (e.g., writing, content creation, and public speaking) that impacts others and enriches my professional and personal life.  Now when I’m questioned on why I haven’t received the career success that others have obtained, my response will be: “Thank you for your observation, but your experience is not my experience”.

One size doesn’t fit all: Leaders addressing burnout in the workplace

Time-off awards, bonuses, and public recognition are all tools that leaders use to recognize the accomplishments of their employees and to improve overall morale. However, these methods often are not enough to prevent employee burnout. A survey by Robert Half International Inc. found 41% of employees feel more burned out than a year ago.

What can be done to address employee burnout?

1.       Get to know each employees’ limits and motivation.

Leaders should have regular confidential check-ins with employees to discover what overwhelms each employee and how each employee prefers to be recognized for achievements.

2.       Take action.

Once employees share their concerns, leaders should immediately take action to mitigate them. If their concerns will take a long time to address, leaders should be transparent about how much time is required.

3.       Offer workplace flexibility.

A survey conducted by the HR firm WorkHuman found 47% of employees desired workplace flexibility and 53% desired mental health days.

Beware of what you share: Mental health apps privacy concerns

As a result of the pandemic shutting therapists’ offices and creating long waiting lists, some patients turned to mental health apps. In 2021, mental health apps acquired $4.4 billion dollars globally. $1.4 billion dollars have been poured into the industry so far this year. Mental health apps provide on-demand resources; however, the accessibility creates privacy concerns.

In Mozilla’s latest “privacy not included” report, 28 out of the top 32 mental health apps had significant privacy concerns. BetterHelp, Woebot, and Talkspace have the worst privacy and security standards. According to the report, BetterHelp’s privacy policies are obscure, Woebot shares personal information with third parties, and Talkspace saves chat transcripts. PTSD Coach and Wysa are the apps with the best security controls.

How to better protect your privacy when using apps

• Don’t use social media accounts to login.

• Set up multifactor authentication, or two-factor authentication.

• Limit location permissions only when apps are being used.

• Keep apps updated.

• Delete unnecessary apps.

Apps and digital health resources reviewed by experts

 https://onemindpsyberguide.org/

Self-talk vs Positive thinking

Self-talk and positive thinking are terms that we have heard before. We are often encouraged to think positively but are unaware of the first step that it requires. I’ll give you a hint. What is something that we do constantly that may affect our physical and mental wellbeing? Self-talk.  Self-talk can affect your cardiovascular health, immune system, stress and life satisfaction levels.

What is self-talk?

Merriam Webster defines self-talk as “talk or thoughts directed at oneself”. Self-talk reflects your “thoughts, beliefs, questions, and ideas” (Holland, 2020). Self-talk is divided into two categories: positive and negative.

Types of positive self-talk

1.       Instructional. It provides direction on a specific activity. This self-talk is helpful when you are learning a new

skill.

2.       Motivational. It excites you to complete a task or achieve a goal. This self-talk increases your self-confidence.

Research has demonstrated that positive self-talk helps athletes improve their performance and reduce anxiety.

Types of negative self-talk

1.       Personalizing. You hold yourself accountable for everything that happens.

2.       Magnifying. You dwell on the unfortunate circumstances and omit any positive.

3.       Catastrophizing. You predict the worst outcome and can’t be persuaded otherwise.

4.       Polarizing. You limit your world view to only two choices (e.g., black or white, true or false).

What is positive thinking?

Positive thinking is choosing to view life circumstances favorably. Kendra Cherry, author of the article “What Is Positive Thinking?” provides a thorough definition.

Positive thinking does not necessarily mean avoiding or ignoring the bad aspects of life. Instead, it involves making the most of the potentially bad situations, trying to see the best in other people, and viewing yourself and your abilities in a positive light.

Are self-talk and positive thinking the same?

They are not the same but they are closely related. Positive self-talk is the precursor or one of the ingredients that allows positive thinking to happen. A great way to practice positive thinking is to be mindful of your self-talk. If you discover that you are on a “negativity streak”, redirect your thinking to something positive.

Daily Thankfulness: Developing a gratitude mindset

Good habits can be developed through consistency and determination. A great habit to adopt is being thankful daily for what you have. Developing a gratitude mindset allows you to acknowledge what you have while in pursuit of your goals.

What is a gratitude mindset?

A gratitude mindset is a fixed attitude of thankfulness. This thankfulness can be for things such as health, family, and friends – things that we take for granted when our life is going well. The advantages of developing a gratitude mindset include increased happiness, humility, and better time management.

How to Develop a Gratitude Mindset

1.       Reflect.

Meditate on the positive aspects of your life before starting the day.

2.       Affirm.

Vocalize everything that you are thankful for.

3.       Help others.

Volunteering your time to help others takes the focus off of your problems and makes you appreciate what you have.

4.       Eliminate comparison.

Social media often distracts us with images of successful people that can make us feel that we aren’t doing enough. Focus on achieving your goals.

5.       Show appreciation.

Write thank you notes to the people that have helped you which specifically states how their assistance impacted your life.

6.       Surround yourself with positive people.

The people you associate with affect your mindset. Keeping company with people who are grateful will cause you to become more appreciative.

I will try vs. I will do: Developing a growth mindset

How many times have you used the phrase “I will try” when you are asked to do something? The phrase “I try” implies that you will not put exert much effort in completing the task. In addition, this phrase gives you an excuse for giving up after failing at something. Using the phrase “I will do”, implies that you will do everything you can to complete the task. This phrase places more responsibility on you to ensure a favorable outcome. “I will do” nurtures the development of a growth mindset.

What is a growth mindset?

Carol Dweck, Professor of Psychology, coined the term growth mindset and defines it as the belief that talents can be developed through hard work, good strategies, and input from others.

How to Develop a Growth Mindset

1.       Abolish perfectionism.

Realize that mistakes and some failures are part of the process and learn from them.

2.       Challenge yourself.

 Enroll in that class or degree program, honor your commitments, take on a new responsibility at your job.

3.       Be your own cheerleader.

Approval from others can uplift you; however, it is unsustainable. Encourage yourself and celebrate your achievements

4.       Change your perspective on criticism.

Be open to feedback and use it to improve.

5.       Set realistic timelines.

Developing skills takes time and focus.

Developing a growth mindset is important to overcoming obstacles and achieving success. It will allow you to become more impactful as you develop confidence in your abilities.

Mitigating Bias in Artificial Intelligence

Artificial intelligence (AI) has become a major part of our lives. Each time you ask Siri or Alexa to complete a task, you are using AI. In addition, AI counts up the number of “likes” and the types of accounts that you follow to recommend pages in the explore tab of Instagram. Facial recognition software, an AI application used by law enforcement has been used to help solve crimes. However, due to high error rates in the AI algorithms, innocent minorities have been arrested. Some critics say there's a concerning lack of diversity among those who create AI software, and that is causing some of the biases found in artificial intelligence. These biases are also harmful for women and older adults who may be discriminated against when AI is used in the hiring process.  Listed below are steps to take to mitigate biases in artificial intelligence.

Mitigating bias

1.       Assemble a diverse developer team to build machine learning algorithms.

2.       Demographic data used in AI algorithms should account for gender, race, and age.

3.       Use objectively measured data to train the AI algorithms instead of historical data.

4.       Consistently monitor the data and outcomes produced by AI to detect potential biases.

5.       Stay current on the latest developments in AI and how to avoid biases.

Artificial intelligence will benefit society effectively if we consistently consider the impacts of it on all citizens.

Reading is Good for Your Health and Wealth

When I was a child, my mother encouraged me to read a lot of books. Her philosophy was that if I developed a love for reading, I could learn anything. In the summer, I loved going to the library and stuffing my backpack with books. I would voraciously read through the books and immerse myself in the characters. Reading took away the loneliness of being an only child. There was a program at the library that awarded children for the number of books read over the summer. I felt accomplished after I received the first-place ribbon for reading the most books and it encouraged me to continue reading. I realize now that reading boosted my mental health. Researching information for this post allowed me to discover the other health and potential wealth benefits of reading.

Reading and Health

Reading has several health benefits that include the following.

1.       Reduces the risk of cognitive decline.

A study published in 2020 concluded that adults over 60 who read at least twice per week were less susceptible to developing dementia.

2.       Reduces stress.

A study showed that reading, specifically reading a book aloud, for over 10 minutes reduces stress.

3.       Improves sleep quality.

A randomized study conducted in 2019 with 991 participants concluded that “reading a book in bed before going to sleep improved sleep quality, compared to not reading a book in bed.”

4.       Helps with weight management.

A study published in 2012 evaluated data on 17 nations from the International Social Survey Program. The study found that individuals who performed activities including reading, attending concerts and plays, and going to exhibitions have a lower body mass index (BMI) than those who engage in activities such as socializing, handicrafts, and watching television/listening to music.

Reading and Wealth

According to Sales and Marketing Executives International, individuals who read at least seven business books a year earn 2.3 times more money than those who read one book a year. Steve Siesbold, author of How Rich People Think, interviewed 1,200 of the world’s wealthiest individuals and found that reading was the habit they all had in common. Research by Tom Corley, author of Rich Habits: The Daily Success Habits of Wealthy Individuals discovered that 88% of wealthy people spent 30 minutes or more each day to self-improvement reading. Self-improvement reading such as Dr. Mansur Hasib’s book Bring Inner Greatness Out: Personal Brand provides tips and strategies to develop your personal brand and improve your compensation negotiation skills that can be used to increase your wealth.

Reading will not automatically make you healthy and wealthy. Executing on what you have read will allow you to continue your journey to health and wealth. 

10 Practical Tips for Maintaining Focus

Email, text message, and social media app notification alerts are the players in this “age of distraction”. According to author Clay Scroggins, social media is a distraction that hinders our focus because it places us in an endless cycle of escapism from our issues. Maintaining focus is hard for even the most disciplined. The following tips will help you maintain focus while working on your tasks and projects.

1.       Get adequate sleep.

A good night’s sleep will improve your focus. In a study published in March 2022, researchers found that at least seven hours of sleep attributed to the highest cognitive performance in individuals between the ages of 38-73.

2.       Increase your water intake.

Mild dehydration can affect your ability to concentrate.  

3.       Eat nutritious food.

Foods such as oranges, broccoli, leafy greens, eggs, walnuts, and salmon provide nutrients to maintain your focus.

4.       Take a break.

Take at least five to fifteen minutes to stretch or walk around to prevent fatigue when working on a time-intensive project.

5.       Designate a specific time to check email and social media.

Set thirty minutes to check in the morning, at lunch, or at the end of the work day.

Refrain from stopping in the middle of a task to check social media.

6.       Close out tabs.

When working on a project online, only have tabs open that are relevant to the project. This will reduce the temptation to look at irrelevant websites.

7.       Eliminate multi-tasking.

Working on one project at a time will maintain your focus and increase your productivity. It may take some time to adopt this strategy but it will be worth it.

8.       Set boundaries.

If your schedule is filled with activities, don’t agree to work on a project for someone else.

9.       Create your ideal working environment.

Creating this space can include investing in a comfortable chair, organizing your workspace, turning of the television, and decorating the space with inspirational artwork.

10.   Plan your week.

At the end of each week, plan your activities (professional, personal, and family) for the following week.

Women’s History Month: Seven STEM Pioneers

Women have faced gender barriers throughout history while establishing their careers. This article spotlights seven women who overcame obstacles to make enormous contributions in science and technology. Hopefully their accomplishments will inspire women to persevere through their challenges in the workplace.  

Dorothy Vaughan (1910-2008)

Dorothy Vaughan was both a respected mathematician and in 1949, became NASA's first African-American manager. She was assigned to the segregated "West Area Computing" unit, an all-black group of female mathematicians, who were originally mandated to use separate dining and bathroom facilities. This unit made significant contributions to NASA’s space program by assisting in aircraft testing and supersonic flight research. Dorothy Vaughan became an expert FORTRAN programmer and also contributed to the Scout Launch Vehicle Program.

Dorothy Vaughan

Chien-Shiung Wu (1912-1997)

In the early 1940s, Dr. Chien-Shiung Wu became the first woman hired as faculty in the Physics Department at Princeton. Dr. Wu was believed to be the only person of Chinese descent who worked on the Manhattan Project – a research project initiated during World War II which produced the first nuclear weapons. She also developed improved Geiger counters for measuring nuclear radiation levels. In 1990, Dr. Wu had an asteroid named after her (2752 Wu Chien-Shiung).

Chien Shiung Wu

Asima Chatterjee (1917-2006)

Dr. Asima Chatterjee was the first woman to receive a Doctorate of Science degree from an Indian university — the Rajabazar Science College, Calcutta University. She was a pioneer in organic and medicinal chemistry who developed important anti-epileptic and anti-malarial drugs. Dr. Chatterjee published around 400 papers in national and international journals that have been cited in other journals and textbooks. Dr. Chatterjee’s research on vinca alkaloids, derived from the Madagascar periwinkle plant, has been essential for chemotherapy drug development.

Asima Chatterjee

Wangari Muta Maathai (1940-2011)

Dr. Wangari Muta Maathai became the first female professor in her home country of Kenya in 1976. In 1977, Dr. Maathia started and led the Green Belt Movement, which aims to counter deforestation. The campaign encouraged women to plant trees in their local environments and the movement spread to other African countries. In 2004, she became the first African female recipient of the Nobel Peace Prize "for her contribution to sustainable development, democracy and peace."

Wangari Muta Maathai

Becky (Rebecca) Bace (1955-2017)

Known as "a maverick and a catalyst for women in cybersecurity", Ms. Bace was a security technology expert, author, and entrepreneur. In 1973, she was accepted to the University of Alabama at Birmingham as the only woman in engineering. She was a pioneer in cybersecurity research and an early information security program manager, who directed research in information security for the U.S. Department of Defense in the 1980s and 1990s. She spent 12 years at the National Security Agency (NSA) where she created the Computer Misuse and Anomaly Detection (CMAD) research program. Ms. Bace was a venture consultant for Trident Capital and a chief strategist of the Center for Forensics, Information Technology and Security at the University of South Alabama.

Rebecca Bace

Idelisa Bonelly (1931-)

Considered the "mother of marine conservation in the Caribbean”, Idelisa Bonelly began her studies in marine biology in New York in 1953, since there were no universities in the Dominican Republic, her native country, where this discipline was taught. Upon returning to the Dominican Republic, Mrs. Bonelly founded the first institution in the country to study marine environmental sciences with the purpose of motivating young women to become scientists. She created the first humpback whale sanctuary in the North Atlantic. Since 1984, together with a group of Dominican and international organizations, Mrs. Bonnelly has promoted the protection of the breeding grounds of humpback whales, dolphins, and manatees.

Idelisa Bonnelly

Stephanie “Steve” Shirley (1933- )

Born Vera Buchthal in 1933 in Dortmund, Germany, Stephanie “Steve” Shirley fled Nazi Europe through the Kindertransport rescue effort initiated before the start of World War II. Mrs. Shirley, an entrepreneur and philanthropist, founded a software company originally named Freelance Programmers Ltd. in 1962. In 1996, the company went public and was valued at $3 billion.  The company outsourced all its software development to women software developers who worked from home. Throughout her entrepreneurial career, she launched employment opportunities for female programmers and permitted them to continue their education and professional development.

Stephanie Shirley

You Have to Work Twice as Hard: Implications of Imposter Syndrome

Growing up I was told that you have to work twice as hard as others to become successful. My perfectionist tendencies often dictated long hours spent on homework assignments. In addition, I experienced sleepless nights worried about what grades I would receive on my report card. I was successful in school but I always compared myself to other students because of my desire to be the best.  Now I know that I was experiencing imposter syndrome.

What is Imposter Syndrome?

Clinical psychologists Pauline Clance and Suzanne Imes, first used the term “imposter phenomenon” in 1978 to describe individuals who think they don’t deserve success despite having ample evidence of accomplishments[1]. These individuals lack confidence that they can repeat past success and exert strenuous efforts to avoid being “discovered as a fraud”. The term “imposter syndrome” became more popular among academic researchers and the general public because it connected the phenomenon directly to individual dysfunction or behavior[1].

Imposter syndrome affects high achieving individuals and is linked to perfectionism, anxiety, burnout, and depression[1],[2].

Women and Imposter Syndrome

Women are more likely to experience it than men. Russell et al. published a study in January 2022 that evaluated the rate of imposter syndrome in twenty-three classes across nine osteopathic medical students[3]. The students were asked to provide their MCAT scores and undergraduate science GPA[1]. In addition, they answered eight questions from the Young Imposter Scale Questionnaire[1]. The study concluded that female students experience a high rate of imposter syndrome compared to males[1]. In addition, the study found that this occurrence is not correlated with previous high MCAT scores and undergraduate science GPA[1].

Race and Imposter Syndrome

Several studies have concluded that imposter syndrome is common among African, Asian, Latino/a, American college students[4]. These studies identified factors that predispose them to imposter syndrome such as lack of financial support, racial discrimination, and stress of being the first in their families to achieve higher education[4].  One study concluded that imposter syndrome, survivor guilt, and depression were highly correlated with African-American college students[5]. Some academic scholars believe that the assessments for imposter syndrome are inadequate for minorities because very few of them have been included in the samples to standardize these tests[5].

What are Institutions Doing to Mitigate Imposter Syndrome?

Institutions are focusing on representation and mentorship as tools to handle imposter syndrome. The Stanford Law School’s Law Scholars Institute purports that its’ curriculum for underrepresented sophomore and junior college students includes an organizational and leadership component that includes addressing imposter syndrome and implicit bias. A coaching and mentoring program for medical students has been implemented at the University of California San Diego School of Medicine Bridges Curriculum. The program has positively impacted medical students who frequently experience imposter syndrome. ATLAS Fellows Inc. is a non-profit organization that offers a career development program for underrepresented high school seniors interested in careers in the financial industry. The mentorship program offers training and workshops in various areas including imposter syndrome.

Tips for overcoming Imposter Syndrome

1.       Talk to a trusted friend or mentor.

Find someone who understands what you are going through to provide reassurance and sound advice.

2.       Turn to your network for guidance and support.

Isolation will only exacerbate the issue. Surround yourself with others who can empathize and provide suggestions and different perspectives.

3.       Challenge your doubts by writing down your achievements.

Writing your achievements down will allow you to visualize all that you have accomplished and equip you with proof to dismiss any perceived inadequacies.

4.       Avoid comparing yourself to others.

“By competing or comparing yourself with others, you impose a limit on your true potential.” – Nitin Namdeo

As high achievers, we strive tor reach our full potential. Don’t let the hurdle of comparison block your way.

[1] Feenstra, S., Begeny, C. T., Ryan, M. K., Rink, F. A., Stoker, J. I., & Jordan, J. (2020). Contextualizing the impostor “syndrome”. Frontiers in psychology, 3206.

[2] Weir, K. (2013). Feel like a fraud. Grad Psych Magazine, 11(4), 24.

[3] Shill-Russell, C., Russell, R. C., Daines, B., Clement, G., Carlson, J., Zapata, I., & Henderson, M. (2022). Imposter Syndrome Relation to Gender Across Osteopathic Medical Schools. Medical Science Educator, 1-7.

[4] Bravata, D. M., Madhusudhan, D. K., Boroff, M., & Cokley, K. O. (2020). Commentary: Prevalence, predictors, and treatment of imposter syndrome: A systematic review. Journal of Mental Health & Clinical Psychology, 4(3).

[5] Bravata, D. M., Watts, S. A., Keefer, A. L., Madhusudhan, D. K., Taylor, K. T., Clark, D. M., ... & Hagg, H. K. (2020). Prevalence, predictors, and treatment of impostor syndrome: a systematic review. Journal of General Internal Medicine, 35(4), 1252-1275.

The Journey to Happiness: It’s Not a Sprint. It’s a Marathon.

This week, I had a friend and my mother randomly ask me what will make me happy. I responded that good health, gratitude, peace, warm weather, and financial freedom will contribute to my happiness. I know from experience that happiness can elude me if I don’t consistently express gratitude for what is going well in my life. Happiness is subjective, but in general associated with increased employment opportunities, community involvement, social relationships, physical and mental health.

Happiness is considered so essential to mental health that institutions including Yale and Harvard have added classes about it to their undergraduate and MBA programs, respectively. The Yale course entitled “The Science of Well-Being” is currently offered for free online, and over 3 million people, including me, have registered for it. I’m only two days into the course; however, I have discovered my character strengths by taking a survey offered through the VIA Institute of Character. The course states that positive character strengths affect your mindset and behavior.

According to the Wall Street Journal, students of the Harvard MBA course, “Leadership and Happiness”, are taught to foster their teams’ happiness and their own. The course encourages students to focus on four areas (family, friends, meaningful work, faith or life philosophy). The instructor, Dr. Arthur Brooks, states balancing these areas are important in maintaining happiness. Students who have taken the course report they have become more empathetic to the needs of their team, focus more on the present than the future, and take more time to celebrate their accomplishments.

Sheldon & Lyubomirsky published a peer-reviewed article in March 2021 that challenges if happiness can be successfully pursued. The article evaluated three models of happiness: Eudaimonic Activity Model (EAM), Hedonic Adaptation Prevention Model (HAP), and Positive Activity Model (PAM). EAM  “specifies that the pursuit of happiness involves trying out different kinds of goals, values, behaviors, and activities, to determine which ones bring one satisfaction and happiness.” HAP states that happiness is sustained by finding different ways to appreciate what you already have (e.g., home, partner, job, family). PAM specifies that happiness is dependent on individuals’ culture and the frequency of positive activities. Sheldon & Lyubomirsky concluded that happiness can be pursued but it is not simple. People should create and maintain an environment for themselves which nurtures their happiness.

Timeboxing: Will it improve your time management?

What is Timeboxing?

Timeboxing is a technique that involves planning and allocating a fixed unit of time for tasks and stopping the task within the time frame. This technique allows you to be proactive on the amount of time spent on a task regardless of completion. Timeboxing was first introduced in 1991 by James Martin, author of the book Rapid Application Development, as a tool for Agile software development. He based the technique on Parkinson’s Law which states that “work expands to fill the time available for its completion.”

What tasks are suitable for timeboxing?

• Important tasks that you want to prioritize

• Tasks that you are not motivated to start

• Minor tasks that you keep forgetting

• Laborious or monotonous tasks

How do you timebox?

1.       List all of your tasks.

2.       Define goals for your tasks.

3.       For important tasks that require focus, allocate at least 1-2 hours.

4.       For hard tasks, allocate 20-30 minutes to make the task easier to manage.

5.       Start from your first task, and work your way down

6.       Stop when the allocated time is up.

7.       Take a break.

8.       Review what you've accomplished.

9.       Work on other time boxes in your schedule.

Advantages of Timeboxing

• Helps you identify your priorities

• Helps you set limits

  • Mitigates perfectionists’ tendencies to extend time for tasks

  • Reduces communication overload

• Gives you a comprehensive record of what you’ve accomplished

• Helps you feel more in control of your time

Disadvantages of Timeboxing

• Disrupts your train of thought or flow (Switching to a new task when you are deep in thought may cause frustration.)

• Rushes you to complete assignments that require high level quality

• You allocate too much or not enough time to complete an assignment

Timeboxing is not a “set it and forget it” technique. It requires you to constantly evaluate how much time you spend on tasks and make the appropriate time adjustments. Overall, timeboxing is a great technique to use to knock out all the tasks that lead you to achieving your goals.

Second act: Should you plan now for life after retirement?

Tom Brady has received numerous offers to start a career in sports broadcasting after announcing his retirement this week. While in the NFL, he started a clothing line, NFT platform, and a sports therapy center. Mr. Brady did not wait until after retirement to pursue other interests. You may think that it was easy for him to have additional streams of income because of his NFL salary. However, there are steps you can take to plan for life after retirement while you are working.

1.                   Evaluate your interests

Reflect on the interests you had in childhood. Take some time to write down all of your interests and research them.  

2.                   Explore your interests

If possible, volunteer or work part-time at organizations that align with your interests.

3.                   Get training

Taking online courses, obtaining industry certifications, or earning another degree are all ways to learn new skills to prepare for a second career.

4.                   Network

As the old saying goes, “Your network is your net worth”. Develop authentic relationships with those who are in the career you want to pursue. Find ways to add value to these relationships.

5.                   Be patient and persistent

“Just don’t give up what you’re trying to do. Where there is love and inspiration, I don’t think you can go wrong." — Ella Fitzgerald.”

Finding a second career is not easy and you may become discouraged if you don’t obtain it quickly. Don’t succumb to this feeling.  

If you are interested in having a second career, now is the time to plan for it. You will thank yourself later.

DAO: Business on the Blockchain

What is a DAO?

A Decentralized Autonomous Organization (DAO) is an entity without governance from central leadership (i.e., CEO and board of directors). Decisions such as how money is raised and invested are voted on by a community of investors who use a specific set of rules that are enforced on the blockchain. The investors vote by using tokens that are given in exchange for money invested.

History of DAO

The first DAO, The DAO, was launched in April 2016 after raising about a hundred and fifty million dollars’ worth of Ethereum in exchange for a token called DAO. The goal of The DAO was to act as an investment firm, redistributing funds to profitable companies and projects. The organization’s tokens represented votes on where to invest. Ideally, profits would return to token holders, like a stock dividend, but outside of the regulated market. Unfortunately, investors didn’t obtain these profits. In June 2016, hackers stole a third of The DAOs funds. In 2017, the Security Exchange Commission released an investigation that found crypto tokens like The DAO’s should possibly face the same regulations as securities.

Types of DAOs

1.   AMM (automated market maker) DAOs

      AMM DAOs use smart contract protocols to facilitate decentralized financial services to consumers.

2.   Grant DAOs

The investor community donates funds into a grant pool and votes on allocating and distributing funds for DeFi

projects.

3.   Social DAOs

     These DAOs are developed to focus on a particular objective, such as preserving arts and culture

     or championing a charitable cause.

4.       Collector DAOs

        Acquires cultural collectables for its members that may include Non-Fungible Tokens (NFTs).

5.       Venture (Investment) DAOs

Developed to level the playing field for beginning investors and allow investment in projects such as real estate

and sport teams.

6.       Entertainment DAOs

Creative projects such as books, television shows, and movies are funded and controlled by a group of investors.

DAO Advantages

1.       No single person is in charge of the decision making.

2.       Any DAO member can view the organization’s financial transactions.

3.       A requirement for joining a DAO is that each stakeholder understand its’ governance rules that are typically

encoded in the DAO smart contract.

The stakeholder works within the DAO to ensure that the members’ interests and incentives are aligned.  

DAO Disadvantages

1.       Any flaws in the DAO smart contract code increase hacking vulnerability.

2.       Difficult to update and fix bugs in the smart contract code due to the immutability of the blockchain.

3.       No legal framework.

Because DAOs can operate across multiple jurisdictions, any legal problems could result in lengthy legal battles.

Will DAOs take over Limited Liability Corporations (LLCs) and traditional venture capital organization (VCOs)?

Proponents state that DAOs provide more transparency and inclusiveness compared to LLCs and VCOs. However, critics state that DAOs likely will not overtake LLCs and VCOs because they don’t offer any legal protection and rely on popularity to fuel growth.

Buy Now Pay Later: An Old Idea Remixed

What is Buy Now Pay Later?

Buy Now Pay Later (BNPL), also known as point-of sale loans, allow consumers to divide the cost of their purchases into installment payments that are often due every two weeks. BNPL has been around since the 1840s when makers of sewing machines, farm equipment, furniture, and pianos wanted to make these items affordable. Seventy-five percent of consumers that use BNPL are between the ages of 18-36.  BNPL allows consumers to shop online and some BNPL providers offer a virtual card for in-person shopping. Affirm, Zip, and Afterpay are the most popular BNPL providers.

How does BNPL differ from layaway?

Consumers receive items as soon as a payment is made; whereas, with layaway they are only received after paying the full amount.

Pros and Cons of BNPL

Pros

1.       Flexibility of using a debit card for transactions interest free.

2.       Reminders sent to consumers to make payments.

3.       Usually, no credit check required.

4.       Credit score is positively impacted by timely payments.

Cons

1.       Fees and interest charges occur with missed payments.

2.       Risk of overspending because purchasing may seem easier.

3.       Credit score is negatively impacted by missed payments.

4.       No reward system (e.g., cash back) for using the service as consumers would have with credit cards.

Does BNPL have growth potential?

According to a report by Insider Intelligence, by 2025, the BNPL industry could have $680 billion worth of transactions.  Visa and Mastercard have recently announced that they will provide BNPL services. In addition, APPEX Global, a BNPL provider, announced this month their plans to launch in the United States.

BNPL has significant growth potential because it offers consumers flexibility in making payments for purchases. However, consumers should be cognizant of BNPL’s benefits and risks to ensure their credit is not damaged.

Web 3.0: Is it the future of the internet?

The internet made its debut in the late 1990s via Web 1.0 which consisted of an assortment of non-interactive business and personal webpages. Web 2.0, the current version of the internet implemented in 2004, allows users to create and share content through social media platforms. As internet users have become more aware of their data being used without their permission, Web 3.0 may allow them to have more control of how it is used.

What is Web 3.0?

Web 3.0, is considered the “third generation of the internet”, that allows users to participate in the development and operation of internet protocols. For example, users could become shareholders of Web 3.0 which would allow them to vote on changes to Web 3.0. The phrase “Web 3.0” has been credited to two people:  John Markoff, a former New York Times journalist who used it in 2006 and to Gavin Wood, Ethereum’s co-founder, who coined it in 2014. Web 3.0 uses platforms developed on blockchain, cryptocurrency, non-fungible tokens (NFTs), and other technologies. DeFi (decentralized finance) is also included in Web 3.0.  Web 3.0 stores data on the blockchain in “blocks” or “nodes” distributed to an enormous network of computers.

Potential benefits of Web 3.0

1.       Data ownership would not be limited to a single entity.

2.       Users could join any network without giving up personal data (e.g., name, location, email address).

3.       Enhanced data security due to decentralization. Decentralization makes it harder for hackers to access large

loads of data.

4.       Users can monetize use of their data. Cirus Foundation, a data ownership initiative, allows users to earn

cryptocurrency in exchange for their data. Users’ data is captured after registering and downloading the Cirus

web extension on the Google Chrome browser.

Criticisms of Web 3.0

1.       Difficult to regulate.

Due to Web 3.0 being decentralized, some fear that cybercrimes, hate speech, online harassment, and spread of

child abuse will be difficult to control.  

2.       Owners of the blockchain networkers will only be early adopters and venture capitalists who will profit from

the innovation.

3.       Scalability: It is uncertain whether blockchain applications can scale to a level to overtake Web 2.0

infrastructure.

There are challenges in adopting any new technology but time and continued innovation will determine whether Web 3.0 will replace Web 2.0.

Non-Fungible Tokens: Do early adopters have an advantage?

From athletes, to music artists, celebrities, and social media influencers being early adopters and promoting non-fungible tokens (NFTs), its popularity has soared. But what are NFTs?

NFT

An NFT is a digital object (e.g., a drawing, animation, piece of music, photo or video with a certificate of authenticity) created by the blockchain technology. The phrase “non-fungible” means it cannot be forged or manipulated; equivalent to a one-of-a-kind trading card. "Quantum," an octagon-shaped animation NFT created in 2014 by New York artist Kevin McCoy, was first associated with an NFT-type certificate of ownership before the term “NFT” was coined. Quantum sold in June 2021 for $1.4 million. According to crypto data firm, Chainalyis, by the end of 2021, sales of NFTs exceeded $40 billion.

Use of NFTs

Campaign fundraisers

Instead of providing donors with campaign t-shirts and hats, political campaigns are offering NFTs.

Reserving electronic vehicles

VinFast, a global electric vehicle (EV) brand, has announced it will use NFTs as part of the EV “early bird” reservation process.

Video games

GameStop Corp. announced that it is launching a division to develop a marketplace for nonfungible tokens of “virtual videogame goods such as avatar outfits and weapons”.

Real estate transactions

ONE Sotheby’s International Realty, Voxel Architects, and Gabe Sierra (NFT collector and general contractor), are “introducing the first ever ‘MetaReal’ mansion that includes a real-world home and a virtual counterpart in the metaverse. Whoever buys the NFT will also own the physical home, set to be completed in Miami in the fourth quarter of 2022.

NFT obstacles

Legal concerns

Hester Peirce, Commissioner of the U.S. Securities and Exchange Commission, warned that selling fractions of NFTs could be illegal because selling fractions would potentially create an investment product that may require regulation.

Hacking

On December 21, 2021, scammers obtained over one million dollars’ worth of cryptocurrency by convincing Discord chat platform community members of Monkey Kingdom and Fractal, respectively, to buy a limited edition NFT.

High energy usage

Joanie Lemercier, a French artist, discovered that the sale of six NFTs of his artwork consumed 8.7 megawatt-hours of energy – equivalent to two years’ worth of energy use in his studio.

Do early adopters have an advantage?

Most early adopters of NFTs may have bragging rights as being the first to use the NFT applications. Music artist, digital artists, athletes, and celebrities may have the greatest financial advantage from selling NFTs.

F is for Finance: Should public schools mandate financial literacy education?

Starting this year, Ohio public high school students are required to take a financial literacy course to graduate. Senate Bill 1 was signed into law by Gov. Mike DeWine on October 28, 2021. Similar bills to mandate a financial literacy course were proposed in 2015, 2017, and 2020; however, did not receive bipartisan support. Last year, Ohio joined 25 other states that initiated personal finance education legislation.

Why should personal finance education be taught in schools?

Some parents are uncomfortable discussing personal finances at home. In 2017, a T. Rowe Price Survey observed that 69% of parents were hesitant about discussing financial matters with their kids. Personal finance education teaches students about banking, debit and credit cards, mortgages, investments, payday lending, rent-to-own products, credit reports, credit scores, etc. Acquiring this knowledge may prevent students from making financial decisions that lead to years of debt.

How effective is personal finance education?

MoneyRates.com conducted a study to measure how personal finance education programs at state-funded high schools improve financial behavior. The study divided the 50 states and the District of Columbia into two groups: those with a personal finance coursework requirement and those without. To assess the financial behavior of each group, the study evaluated average credit card balances and personal bankruptcy rates. The study found on average that people in states that have a personal finance coursework requirement had less credit card debt than people in states without the requirement. The first study result is promising; however, the second study result is not. Average personal bankruptcy rates were higher in states with a personal finance coursework requirement than in those states without it.

How can personal finance education programs become more successful?

1.     Provide educators with resources to implement personal finance education programs.

2.     Compare the financial education curriculum in each state against states with successful personal finance education programs and modify the curriculum as needed.

3.     Advocate for personal finance education programs in public high schools in states without them.