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10 financial steps to take the minute you lose (or quit) your job

(FINANCE) If you quit your job or get laid off, money can be a tremendous stressor. Here are some ways you can immediately take control.

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Quitting or losing your job?

Whether you saw it coming or not, being laid off is always a bit of a shock. And even after months of consideration, quitting your job can leave you wondering what comes next, and how you’ll stay afloat until that next thing actually comes along.

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Traditional advice emphasizes dipping into savings, but for many Americans, that’s just not an option.

What do you do when you barely have a month’s worth of expenses, if that, and your career is in transition?

Do these ten things and feel calmer, more confident, and ready to conquer that job search with everything you’ve got.

10 things to do right away

(1) What do you have? Checking and savings accounts are an obvious place to start, but don’t neglect stocks, bonds, 401(k)s, and even the cash you have lying around. Depending on how you manage them, credit card points could be a small boon. Liquidate them for groceries, or cash them in to cover moving expenses if your situation is dire. Don’t forget to take into account any debts you owe, through your credit cards, student loans, or otherwise.

(2) What could you get? If you were laid off, you may be eligible for a severance package from your former employer, and this might be something you can negotiate. Don’t sell yourself short here. Being laid off also grants you access to unemployment benefits, and it could only hurt you to wait to apply. It only takes about an hour, and you can expect to hear back in about a week. Expect to receive a maximum of about half your former salary, and in some states you’ll need to fill out a weekly form to prove you’re actively looking for work.

(3) What could you get if you really, truly had no other options? I’m talking credit, and should definitely be your last resort. Nonetheless, it can be reassuring to know what could be there for you if you needed it, and if you inform yourself now about the various interest rates and other terms, you’ll be able to make smarter decisions down the line.

(4) How do you spend? This is going to take some time, but it’ll be worth it. Look at bank statements and credit card statements from the past two or three months to figure out how you’ve been spending your money lately. Keep track of predictable recurring payments like gym memberships and car payments, as well as more variable bills like electricity and water. If you haven’t moved recently, you could even check out utility bills from last year that correspond to the upcoming months, to get a more accurate estimate of what’s in front of you.

After rent and bills, create categories for your spending. You could simply use “Transportation,” “Food,” and “Entertainment,” or you could get more specific: “Transportation,” “Groceries,” “Restaurants,” “Movies,” and “Bars” might cover most things, and you could throw in a “Misc” for good measure. Do what makes sense for you – just be sure you get it all.

(5) How will you spend? Don’t forget expenses you may need to pay now that you’re unemployed. If you got insurance through your employer, you’ll need to find your own coverage. Same goes for gym memberships, public transit passes, etc.

(6) What can you cut? Now you know exactly how much you have, and how much you *want* to have for normal monthly expenditures. But since you don’t have your regular income anymore, unless you’ve been miraculously good at saving, you’re going to need to cut back. It’s important, though, to not cut out every little thing that makes life worth living. Sitting in a cold, dark room eating ramen and drinking tepid water isn’t going to get you fired up for a job search.

Do you actually use and need Netflix, HBO Now, and Hulu to be happy? Pause one or two until you’re back on your feet. Could you run on a trail instead of a treadmill? Could you improve your cooking skills and only eat out occasionally? You have more time on your hands – put it to good use and save some dough.

We recommend checking out Truebill which will find, track, and help you cancel subscriptions (some you won’t even remember you are paying for).

(7) Make a comprehensive budget. After you’ve gotten a handle on your assets and your expenses, plan out a monthly budget for the next six months or so. This is how much you can spend in each category every month, and it should have a little wiggle room for random fun so your soul doesn’t die. If you’re thinking, “There’s no way I have enough money to survive for six months,” don’t worry. Help is coming your way.

(8) Pay attention to your groceries. Do you have a tendency to buy a bunch of stuff that sounds good but that you’ll never cook, or that can’t possibly be combined to make an edible meal? Fix that by planning out your meals in advance and buying what you need for those meals. Limiting the number of trips to the store can also reduce random purchases.

(9) Get a job-related gig. Finding a part-time job of some sort ensures a steady stream of income and enough time to dedicate to your real job – job searching. Were you a copywriter? There are a million freelance copywriting gigs with your name on them. Teacher? Try tutoring. If you can find a gig that falls under your career umbrella, it’ll be worth putting on a resume and you won’t have to explain away an awkward gap.

(10) Get a random gig. Although not ideal, the gig economy has officially arrived, and it means you’ve got options. If your career doesn’t lend itself to part-time gigs, or if you’re ready for a break from your usual job description, consider taking on a different role. Drive for Uber or Lyft (or any number of smaller rideshare companies), deliver with Favor or Postmates – check out the services available in your area, and look at community-based job and gig posting boards like Craigslist for time filling gigs.

This too shall pass

You might get paid to fill out surveys, or be a movie extra, or hand out flyers. As long as it isn’t something that makes you so miserable you have no willpower or time left for writing cover letters, any paying gig could be worth checking out.

If you follow these ten steps, you should feel in control and ready to conduct a calm and thoughtful job search, instead of sending out resumes in a panic and accepting the first offer that comes along. Your next job should be an improvement on the last, and financial security will allow you to focus on finding the right fit.

#Finances

Staff Writer, Natalie Bradford earned her B.A. in English from Cornell University and spends a lot of time convincing herself not to bake MORE brownies. She enjoys cats, cocktails, and good films - preferably together. She is currently working on a collection of short stories.

Business Finance

Kodak’s cyrptocurrency could save themselves and photographers

(FINANCE NEWS) Kodak’s foray into cyrptocurrency is more than a financial play, it could be their very salvation in some peoples’ eyes.

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Not one to be left behind, Kodak recently announced their decision to hop on the cryptocurrency bandwagon with their own currency for photographers: KodakCoin. It’s not as hokey as it sounds, we promise.

It’s easy to make fun of Kodak, the Blockbuster of film companies, for buying into the cryptocurrency world, but their motive isn’t as bizarre as it first appears.

KodakCoin is actually a virtual token that will be used on Kodak’s new photographer platform, KodakOne. The idea behind the platform is that photographers can register their work and monetize any cases of copyright infringement, all through the KodakCoin system.

KodakCoin itself is based in the same foundation as Ethereum, and the KodakOne platform uses the same blockchain technology that we’ve come to expect when dealing with cryptocurrency.

As far as KodakOne goes, most of the authentication process is autonomous. Once photographers have uploaded their work and records of fair use, KodakOne searches for instances of unauthorized uploads and then requests payment from the uploader. The payment is processed in KodakCoin, and photographers are left with 60 percent of the resulting currency while Kodak and Wenn Digital share the other 40 percent.

Perhaps the most interesting aspect of this whole affair is the effect that merely announcing KodakCoin had on Kodak’s stock. After revealing KodakOne and the accompanying KodakCoin at CES on Tuesday, Kodak’s stock hit a high point that more than doubled their previous stock value. This goes to show how infatuated our culture is with cryptocurrency at this point, but it also raises some questions about Kodak’s true motives: is KodakCoin a legitimate enterprise, or a Hail Mary pass?

Kodak’s official stance on the matter is that their move into cryptocurrency represents their initial business goal: to provide photographers with a stable, supportive platform that places their needs and concerns above those of similar venues. On the other hand, sources virtually everywhere have been quick to skewer Kodak for what appears to be an obvious bid for relevancy in an era unsuited for the dinosaur of a company.

There’s no telling where KodakCoin will take the aging company, so for now, these speculations will have to do. KodakCoin goes public on January 31st of this year.

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Business Finance

Super-investor Warren Buffett calls cryptocurrencies a mirage

Famed investor Warren Buffett has stated he believes cryptocurrencies like Bitcoin will end badly because they are a “mirage.”

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For many, cryptocurrencies have become an investment well worth the risk, but for many others they are something to vehemently rail against. Try posting something on Facebook about crypto and see if you don’t get lovers and haters instantly weighing in.

One of the most prominent members of the “rail against” group is CEO of Berkshire Hathaway, Warren Buffett.

Buffett, while widely respected for his shrewd investment foresight, is not a fan of cryptocurrency and warns potential investors he thinks, “almost with certainty they [cryptocurrency] will come to a bad ending.”

Buffett went on to state to CNBC, that he didn’t really understand how Bitcoin operated but he would never “have a position in them.”

Will Buffett’s word have an impact on cryptocurrencies like Bitcoin? Surprisingly, Buffett’s words have had little effect (so far) on Bitcoin’s value.

Remember a few months ago when Buffett bought Synchrony? The lesser-known stock seemed to take off overnight after Buffett/Berkshire Hathaway’s investment, leading us to believe than many powerful investors take heed of Buffett’s business acumen, which could potentially impact how other investors feel about cryptocurrencies overall.

Buffett told the Washington Post, “there are basically two kinds of assets: one you look to the stream of income it will produce and the other you hope like hell that someone will pay you more for it.” The second type would most definitely include Bitcoin.

Buffett contends that since cryptocurrencies are backed by computer power instead of a national bank, they are unreliable and fluctuate too much to be trusted.

The takeaway?

There is no doubt that Buffett is the go-to man for investments, but how can you repudiate Bitcoin and other cryptocurrencies worth if you admittedly do not understand how they work? If you don’t understand how they work, how could you possibly appreciate their value?

I’m not sure if this was meant to be a sarcastic statement on Buffett’s part, or if he genuinely doesn’t understand how they work, but still dislikes them. Back in 2014, Buffett told investors that it was nothing more than a “mirage” and that investors should “stay away from it.”

There’s no doubt, the man is a genius in the business sphere, but is he right about cryptocurrencies?

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Business Finance

Spotify files to go public directly, won’t be the last to buck tradition

(FINANCE) Spotify directly filed to join the stock market late December, forgoing the traditional IPO process. Will other tech companies follow suit?

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It’s official: Spotify, the wildly popular music streaming platform, took a leap and filed with the SEC to become a public company late last year. Many in the tech industry expected this move was in the works, and the news was confirmed by Axios this week.

However, the most noteworthy part of this announcement is how Spotify has chosen to join its competition in the public space.

Instead of entering the stock market through a traditional IPO process, Spotify has reportedly opted for a “direct listing,” which means it won’t need to travel to seek out investors and will bypass bank underwriting fees, among other things. As a direct listing, Spotify could also promote its new business model to the media ahead of its projected Q1 debut, something SEC rules strictly prohibit for IPOs.

The direct listing process could also encourage high stock value sales day-of debut, avoiding a “leave money on the table” situation, which can happen when high net worth individuals and institutional investors get first dibs on IPOs but banks recommend the company only trades up to about 20 percent or so. Under its chosen process, Spotify stock values could debut much higher, driven by demand and what investors are willing – and able – to pay.

By taking this non-traditional route Spotify will, however, forgo potentially millions of dollars they could have fundraised in an IPO. Those dollars could have helped pay down debt or settled lawsuits, but Spotify’s direct listing move seems to be about more than money. Spotify was last valued at $8.5 billion, so it might not need monetary help anyway.

Overall, a direct listing may reduce the hassle of going public. Spotify is just filing paperwork to make it legal for anybody to trade company shares, basically. Direct listing is casual and less structured.

However, some are concerned that chill approach won’t do enough to help Spotify once it’s actually public. Sure, networking with investors to build equity and relationships may be tedious, but those connections could pay off down the road when it’s time for financial reporting and underwriters can help shareholders trade more easily, along with Wall Street sponsorship aids that help buyers and sellers in similar ways, according to David Golden of Revolutions Ventures.

Spotify’s actions could be risky, too, as their stock may not fit customary Wall Street standards and in turn be avoided by some investors, David Menlow, president of IPOfinancial.com, told Marketplace.

For now, all eyes are on Spotify and its decision. Wall Street, industry leaders, and even the SEC are all interested in how their direct listing will play out. As others in the tech space have expressed frustration with the traditional IPO process before (think Uber), more companies may follow suit if Spotify succeeds as a directly listed public company. That could put pressure on Wall Street and the SEC to change the IPO process, too.

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