Here’s how the wage gap affects black women

Black women, for instance, get 61 cents for every $1 that their white male counterparts are paid. The gender wage gap — women earning less than men — has persisted over time. And while it has improved from, say, 20 years ago, wages of black women continue to lag behind the overall gap. Among workers in lower-wage jobs — such as cashiers, housekeepers or personal care aides — black women make 79 cents for every dollar made by white men. The average annual salary of the 40 lowest-paying jobs is $2


Black women, for instance, get 61 cents for every $1 that their white male counterparts are paid. The gender wage gap — women earning less than men — has persisted over time. And while it has improved from, say, 20 years ago, wages of black women continue to lag behind the overall gap. Among workers in lower-wage jobs — such as cashiers, housekeepers or personal care aides — black women make 79 cents for every dollar made by white men. The average annual salary of the 40 lowest-paying jobs is $2
Here’s how the wage gap affects black women Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: sarah obrien
Keywords: news, cnbc, companies, men, white, black, affects, paid, pay, cents, wage, heres, gap, worse, women


Here's how the wage gap affects black women

The difference over a 40-year career would mean earning about $946,000 less, according to the research.

While women overall in the U.S. earn about 80 cents for each dollar paid to men, the disparity in pay among some female minority groups is worse than among all women, according to the National Women’s Law Center’s analysis of 2018 Census Bureau data. Black women, for instance, get 61 cents for every $1 that their white male counterparts are paid.

Thursday marks “Equal Pay Day” for black women. It’s the approximate day when their 2018 wages, plus the amount they’ve earned so far this year, catches up to what white men earned just last year alone.

Nancy Reichman, a member of Colorado’s Pay Equity Commission joins in a rally in downtown Denver, CO. Colorado citizens and activists from 9to5, National Association of Working Women and Coloradans for Fair Pay gathered on the steps of the Colorado State Capitol, to mark national Equal Pay Day.

“No matter what their education achievement is — or whether the job is low- or high-paying, where they live or what their age is — they face a wage gap,” said Maya Raghu, senior counsel and director of workplace equality at the law center.

The gender wage gap — women earning less than men — has persisted over time. And while it has improved from, say, 20 years ago, wages of black women continue to lag behind the overall gap. It’s even worse for Native American and Latina women, whose Equal Pay Days won’t arrive until Sept. 23 and Nov. 20, respectively.

Some of the wage gap can be attributed to personal choices — i.e., women in general are more likely to work part time and take time off over the course of their careers, often to care for their children or other family members. However, Census data show the gap is present among the nation’s youngest workers as well.

Among workers in lower-wage jobs — such as cashiers, housekeepers or personal care aides — black women make 79 cents for every dollar made by white men.

The average annual salary of the 40 lowest-paying jobs is $23,600 for black women compared with $30,000 for white men. Over a 40-year career, the difference would be $256,000.

In high-salary positions — i.e., lawyers, engineers, physicians — the disparity is worse: Black women typically are paid 67 cents for every dollar paid to white men in the same occupation. That translates into $70,000 versus $105,000, and a difference over 40 years of $1.4 million.


Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: sarah obrien
Keywords: news, cnbc, companies, men, white, black, affects, paid, pay, cents, wage, heres, gap, worse, women


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I paid more than $600 to spend a weekend at adult summer camp—here’s why it was worth every penny

My seatmate, Keyana, was also traveling solo and we bonded over our shared excitement to finally see what the adult summer camp hype was all about. Emmie Martin | CNBCAfter settling into my cabin, I headed directly to dinner, which also took place at the Mountain House. While the concept of adult summer camp might sound gimmicky to some, to me, it was a fulfilling blend of old and new. Emmie Martin | CNBCFor me, Club Getaway was completely worth the money: It provided the perfect blend of nostal


My seatmate, Keyana, was also traveling solo and we bonded over our shared excitement to finally see what the adult summer camp hype was all about. Emmie Martin | CNBCAfter settling into my cabin, I headed directly to dinner, which also took place at the Mountain House. While the concept of adult summer camp might sound gimmicky to some, to me, it was a fulfilling blend of old and new. Emmie Martin | CNBCFor me, Club Getaway was completely worth the money: It provided the perfect blend of nostal
I paid more than $600 to spend a weekend at adult summer camp—here’s why it was worth every penny Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: emmie martin
Keywords: news, cnbc, companies, emmie, getaway, felt, penny, summer, weekend, 600, spend, worth, adult, club, friends, campheres, paid, camp, martin, course


I paid more than $600 to spend a weekend at adult summer camp—here's why it was worth every penny

I’m 28 and I unabashedly love summer camp. I seek out books about it and watch movies set there. I still regularly reference the 11 summers I spent at sleepaway camp as a kid, which hold some of my favorite memories from growing up, and keep in touch with friends I made there. So when the trend of adult summer camps began to take hold a few years ago, I was intrigued. A chance to shed my responsibilities and spend a weekend knotting friendship bracelets and swimming in a lake? Sign me up.

The author at summer camp as a teenager. Emmie Martin | CNBC

But at the same time, the concept seemed too good to be true. Was it even possible to recapture the magic of going to camp as a kid? Would it just end up being a bunch of adults drinking too much? In July, I decided to finally to see for myself what all the hype was about — and honestly, satisfy my longing to relive the youthful fun I remembered from childhood. I signed up for “Young Professionals Weekend” at Club Getaway in Kent, Connecticut, where I joined around 250 adult campers (the average age is 36), for three days and two nights of ropes courses, Color Wars and free-flowing alcohol.

Friendly bears greet you at the entrance to Club Getaway. Emmie Martin | CNBC

It cost $479 for the weekend, plus $69 for a round-trip bus ride from New York City. With taxes and fees, I spent a total of around $630 upfront. From arts and crafts to costume parties to sleeping in a cabin again, here’s everything I did over the course of the weekend.

Friday night: My first taste of camp life

The party started before we even arrived at camp. On the three-hour bus ride (that should have taken two) from New York, wine and liquor flowed freely and music blasted as everyone got to know each other. My seatmate, Keyana, was also traveling solo and we bonded over our shared excitement to finally see what the adult summer camp hype was all about. We arrived at Club Getaway on Friday evening at around 9 p.m. Surrounded by a thick forest on one side and a small lake on the other, the heart of the camp was lined with wooden cabins and large fields of grass. Inflatable slides dotted the lake, and campers drifted between the lodge, known as the Mountain House, and the boathouse below, where a happy hour of light bites was offered outside.

Club Getaway’s main landscape featured a wide green field and lakefront views. Emmie Martin | CNBC

I exited the bus and collected the key to my cabin, as well as an orange wristband that marked me as part of the camp’s “Cheers” package. For an extra $100, the Cheers package allows guests unlimited drinks for the weekend. You can also choose to buy a bar card for $30, with individual drinks running anywhere from $5 to $10. I dropped my bags off in my cabin, Valley View 19, which overlooked an open field. Club Getaway offers both two- and four-person cabins, equipped with twin beds. Each cabin also has its own bathroom, and blessedly, air conditioning, which was more than I could say for my Brooklyn apartment at the time.

My cabin, Valley View 19. Emmie Martin | CNBC

The rustic setting also offered something else: A break from technology. We kept our phones, but there were no TVs or computer screens. I was placed in a two-person cabin and ended up not having a roommate. At first, I was a little disappointed. How would I make friends without an automatic buddy built in? But by the end of the weekend, I cherished having space to myself and saw it as a stroke of luck.

My cabin included two twin beds, a private bathroom and air conditioning. Emmie Martin | CNBC

After settling into my cabin, I headed directly to dinner, which also took place at the Mountain House. I sat next to Keyana as well as a couple who got married at Club Getaway and were back to celebrate their fifth wedding anniversary. The food did not disappoint: We passed around platters of steak, roasted potatoes and green beans, which I gladly filled up on. The camp also served complimentary wine with dinner, so I treated myself to a glass. I could already tell that this was an environment unlike anywhere else. While the concept of adult summer camp might sound gimmicky to some, to me, it was a fulfilling blend of old and new. Throughout the weekend, I felt like I was back at the summer camp I attended as a kid, conquering the ropes course, frolicking by the lake and laughing with new friends. Yet it was still a uniquely adult experience, choosing to dressing up for themed parties and chatting with strangers over drinks and food. After dinner, things transitioned into a black light dance party in the next room. Watching friends and couples break it down on the dance floor, I became extremely aware of the fact that I was alone.

After dinner on Friday, there was a colorful dance party. Emmie Martin | CNBC

I felt a twinge of awkwardness as I walked around the room, unsure of what to do with my hands. I leaned over to another woman who also stood on the outskirts of the dance party to say hi. “Are you also here alone?” she asked me. She introduced herself as Malini, and we instantly bonded. I introduced her to Keyana, and the three of us agreed to meet up the next day for activities.

Saturday morning: Overcoming my fears

Waking up Saturday morning, I felt like a kid on Christmas. I was both excited by the potential activities the day held and overwhelmed by the sheer number of them. Would I be able to fit in everything I wanted to see and do?

Club Getaway offered everything from archery to golf to trapeze classes. Emmie Martin | CNBC

I decided to jump-start the day by attending an 8 a.m. hike before breakfast. It was quick and easy, but moving around and breathing in the fresh air energized me to take on everything camp had to offer. More importantly, I let go of some of my anxiety that it would be a lonely weekend. In addition to Keyana and Malini, I began to make more friends. From the hike, I headed straight to breakfast where a full buffet of options was set up, including an omelet bar, pancake station and entire tables of pastries and fruit. I took a seat with my hiking friends. As Club Getaway veterans — one person had attended more than 30 weekends — they suggested that I go on the camp tour to get a feel for the space.

It was worth getting up early to hike with these new friends. Emmie Martin | CNBC

The tour gave me the lay of the land and allowed me to meet even more people. I learned that the camp has a program where former campers can come back as volunteers throughout the summer. They get to attend camp for free in exchange for teaching classes and facilitating activities. They aren’t counselors — more like friendly faces who love the camp experience. They made sure I was never awkwardly standing alone with no one to talk to, but I never once felt like they were only making conversation with me because they had to. After the tour, I met up with Keyana and Malini, and we decided to check out the ropes course together. For activities like these, which require advanced safety training, the camp has full-time, trained staff members take the lead.

The ropes course at Club Getaway. Emmie Martin | CNBC

As we walked over, I couldn’t help but have flashbacks to when I was 10 and spent two full hours sobbing at the top of a 50-foot-high ropes course, paralyzed by my fear of heights. But I was ready to put that phobia behind me. “This weekend will be different,” I told myself. I wasn’t going to let my fear stop me from trying new things. I took a deep breath, put on a harness and climbed up. The first part was easy: A short obstacle course of swings and rope ladders. Next, however, we wandered over to the Geronimo Free Fall. The name says it all: The attraction is basically a suspension cable that holds your weight while you drop through the air. Despite my tour guides calling it one of the most fun things to do at Club Getaway, I was skeptical. I knew I would be strapped in, but I wasn’t too keen on jumping off a 40-foot-high platform. My anxiety began to snake back in.

Ready to conquer my fear of heights at the ropes course. Emmie Martin | CNBC

“You’re not scared,” I told myself. I climbed up, closed my eyes, counted to three, listened to my new friends cheer me on — and stepped off the platform. In a single second, I felt a rush of both exhilaration and fear, and the next thing I knew, I was floating gently back to Earth. After that, I was ready to tackle anything. I did it! I jumped! I couldn’t believe the same girl who shook with tears at the top of the ropes course as a kid had not only hopped off the platform, but enjoyed it. I glided through our next few activities, which included zip-lining, a vertical obstacle course called the Pine Climb, and a mixology class, which was the first activity of the day to take place 100% on solid ground.

You won’t find mixology classes at kids’ camps. Emmie Martin | CNBC

Around 2 p.m., everyone was corralled to lunch in the camp’s open air tent, which featured another well-stocked buffet. I loaded up on ribs, pasta and made-to-order salad. Of course, I also went back for a full plate of desserts, which included brownies, cake and chocolate chip cookies. As lunch wound down, Color Wars started up. The entire dining hall was divided into three teams: Blue, yellow and red. We competed in a series of relay races and team games. I’m not much for group sports, so I mostly cheered from the sidelines. Still, it was fun to be part of the action, and I appreciated the nod to the traditional summer camp rite of passage.

Color Wars were intense, but fun. Emmie Martin | CNBC

From there, Keyana, Malini and I trekked over to our trapeze lesson. When I signed up that morning, I was more nervous than excited. But after conquering the ropes course, I knew I could do it. The trapeze class cost an additional $25, but it was something I had been wanting to do, and similar classes in Manhattan cost almost $100. We got lucky and it ended up being just four of us, plus three instructors, which made for a semi-private lesson. After going over safety procedures, commands and proper form on the ground, we climbed up to the platform and swung from the trapeze one by one. I went last and looking down from the platform for the first time, I felt almost dizzy. Everything in my body screamed, “Get me down from here!” But I had jumped off the Geronimo! I had zip-lined! You’re strapped in — there’s no reason to be scared, I told myself. And one more time, I got over my fears and I jumped. It was exhilarating. I was too distracted by the rush of the fall to be able to follow the instructor’s commands on the first round, but the second time I was able to both swing upside down on the trapeze and backflip off of it. It felt like an out-of-body experience. I couldn’t believe I had done it.

At the Woodstock-themed happy hour, I performed Taylor Swift’s “Our Song” with friends during karaoke. Emmie Martin | CNBC

Once again, my elation propelled me forward. At the Woodstock-themed happy hour that immediately followed our class, Keyana invited me to sing karaoke with her. Normally, I’d decline, or at least imbibe a bit of liquid courage first, but to my surprise, I agreed to sing not one, but two songs. It didn’t matter that I was nervous. No one cared that I don’t have a great voice. We had fun reprising early Taylor Swift hits, and that’s all that mattered.

Saturday night: Time to party

Post-shower and nap, the activities were starting to wear on me. But despite my exhaustion, I was ready for dinner — and the much-anticipated “Heaven and Hell” party, which we had been told about ahead of time. I went with a simple costume: Red shorts, a black t-shirt and a pair of glittery devil horns. Most of the other campers keep things low-key as well, but a few people went all-out with their outfits, donning capes, gowns and full-sized red tridents. Plastic ones, of course. I found Keyana at dinner in the open air tent and sat with a crew of both familiar and unfamiliar faces, including an arborist who fascinated me with stories about his job protecting hundred-year-old trees and a fellow Marvel enthusiast who was willing to chat about all things Spiderman. “Just wait, soon this whole place will be a dance party,” my friend Lee told me as dinner finished up. I was confused: The party was here? Outside? I had expected more decorations and fanfare. As it turned out, that was just the pre-party. A performer climbed on stage with a guitar and spent an hour cycling through a series of costumes, which corresponded with the songs he covered, from Guns N’ Roses in a shaggy blond hair metal wig to Britney Spears in a plaid schoolgirl skirt. People got up and danced, sang along and finished the dregs of the wine we were served at dinner.

After dinner on Saturday, the pre-party entertainment included a performer who donned different costumes based on the song he was covering. Emmie Martin | CNBC

When it was over, everyone paraded down to the boathouse, where we entered a room draped in white linens. Men in angel wings danced on platforms while airy pop songs akin to Belinda Carlisle’s “Heaven is a Place on Earth” blasted through the speakers. A few songs in, more sinister sounding music came on and the white curtain in the middle of the room dropped, revealing a second room behind it, decked in blood-red light. As staffers guided us around the perimeter of the room, the curtains hanging from the center parted, revealing our trapeze instructor from earlier. He flipped and tumbled through the air on aerial silks, performing a show reminiscent of Cirque du Soleil. I stared in wonder as he effortlessly glided up and down the silks, twisting and turning and leveraging his body weight the entire time.

The music transported me back to college. I could have been anywhere: Here at Club Getaway in my late 20s dancing to Calvin Harris, or in the basement of a fraternity party in Syracuse, New York, with house music pumping through the speakers.

When the show concluded, everyone crowded into the middle of the room to dance to a parade of throwback hits from the early 2010s. The music transported me back to college. I could have been anywhere: Here at Club Getaway in my late 20s dancing to Calvin Harris, or in the basement of a fraternity party in Syracuse, New York, with house music pumping through the speakers. I let my surroundings fade away and briefly indulged the mindset of my carefree 21-year-old self. Although the partying and unlimited access to alcohol made adult summer camp decidedly different from the kiddie version, it never felt like the sole focus. In fact, I barely found myself reaching for drinks. The combination of heat and excitement was already enough stimulation for me. Others certainly chose to partake and the bar was never without patrons. But I never felt a sense of pressure to drink or judgement for choosing not to. Like the rest of the activities, alcohol fell into the choose-your-own-adventure vibe of the camp. If you wanted to spend the weekend drinking, you could, and you wouldn’t be alone. But choosing to stay sober was fine, too.

Saturday night ended with roasting s’mores over a roaring campfire. Emmie Martin | CNBC

Saturday night ended with a quintessential camp activity: Roasting s’mores over a bonfire while another performer crooned rock classics on his acoustic guitar. One of my favorite parts of the weekend was the camp’s attention to detail. These small things — the post-dinner entertainment and live music during the campfire — weren’t necessary, but enriched the experience.

Sunday morning: Relaxing on the lake

Saturday’s jam-packed schedule finally hit me, and I opted to sleep in on Sunday morning instead of heading out for another early morning hike. That was okay by me — I wanted to enjoy the last day of camp, not sleepwalk through it. After breakfast, I spent the morning making friendship bracelets and floating in the lake. At one point, a group of us rode on the banana boat, which filled me with a swell of nostalgia. The camp I attended as a kid had one as well, and although the ride didn’t feel as crazy this time around, it was still delightful to zip across the lake.

My new friend, Brandon, and I exchanged friendship bracelets. This is the one I made for him. Emmie Martin | CNBC

I loved that there wasn’t a sense of cliquishness at Club Getaway. As I hung out by the lake on Sunday, I felt like I had an entire group of people to talk to and hang out with. Part of that can be attributed to the environment: Group activities, open seating for meals, close quarters. But part of it is the type of people who chose to attend the camp. It seemed as though everyone was open to talking to new people and getting to know each other.

I was excited to ride a banana boat on the lake. Emmie Martin | CNBC

And it wasn’t just those of us flying solo who were looking to make friends. Even people who came together sought out new friendships. Looking back, the activities were fun, but the people were what made the weekend worthwhile. I could have spent hours longer floating on a raft in the sun and chatting with other campers, but before I knew it, it was time to eat lunch, pack up my cabin and board the bus home.

I could have spent all day relaxing by the lake. Emmie Martin | CNBC

For me, Club Getaway was completely worth the money: It provided the perfect blend of nostalgia, excitement and a sense of belonging. That said, I don’t think adult summer camp is for everyone. As an extrovert who thrives on being around people, I jumped right into the thick of camp. But for others who crave time to themselves and prefer to meet people in a more low-key environment, it’s probably overwhelming and exhausting. But as we traveled in exhausted silence to New York, I was already looking forward to going back next summer. Like this story? Subscribe to CNBC Make It on YouTube! Don’t miss: The Ben & Jerry’s founders knew nothing about making ice cream—so they took a $5 class


Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: emmie martin
Keywords: news, cnbc, companies, emmie, getaway, felt, penny, summer, weekend, 600, spend, worth, adult, club, friends, campheres, paid, camp, martin, course


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Alarm in Texas as 23 towns hit by ‘coordinated’ ransomware attack

Twenty-three Texas towns have been struck by a “coordinated” ransomware attack, according to the state’s Department of Information Resources. Ransomware is a type of malicious software, often delivered via email, that locks up an organization’s systems until a ransom is paid or files are recovered by other means. It’s also still unclear whether any of the Texas jurisdictions paid ransom to the attackers, or whether the same criminals are linked to the attacks on other U.S. cities. “The State of


Twenty-three Texas towns have been struck by a “coordinated” ransomware attack, according to the state’s Department of Information Resources. Ransomware is a type of malicious software, often delivered via email, that locks up an organization’s systems until a ransom is paid or files are recovered by other means. It’s also still unclear whether any of the Texas jurisdictions paid ransom to the attackers, or whether the same criminals are linked to the attacks on other U.S. cities. “The State of
Alarm in Texas as 23 towns hit by ‘coordinated’ ransomware attack Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: kate fazzini
Keywords: news, cnbc, companies, alarm, ransom, towns, hit, attack, responsible, texas, 23, department, paid, coordinated, ransomware, local, state, systems, attacks


Alarm in Texas as 23 towns hit by 'coordinated' ransomware attack

Twenty-three Texas towns have been struck by a “coordinated” ransomware attack, according to the state’s Department of Information Resources.

Ransomware is a type of malicious software, often delivered via email, that locks up an organization’s systems until a ransom is paid or files are recovered by other means. In many cases, ransomware significantly damages computer hardware and linked machinery and leads to days or weeks with systems offline, which is why it can be so costly to cities.

According to a weekend update by the Texas DIR, the attacks started Friday morning and though the locations aren’t named, “the majority of these entities were smaller local governments.”

The attacks follow recent state and local ransomware attacks in New York, Louisiana, Maryland and Florida resulted in the loss of significant sums — either in ransom demands to criminals or in repairs for the damaged caused by them. It’s also still unclear whether any of the Texas jurisdictions paid ransom to the attackers, or whether the same criminals are linked to the attacks on other U.S. cities.

“The State of Texas systems and networks have not been impacted. It appears all entities that were actually or potentially impacted have been identified and notified,” the DIR said. While the state has determined that one “threat actor” was responsible for all 23 attacks, they have not yet determined who was responsible. “Investigations into the origin of this attack are ongoing; however, response and recovery are the priority at this time,” the department said.

Texas is being assisted by numerous federal and state agencies, including FEMA, the Department of Homeland Security, Texas A&M’s Information Technology and Electronic Crime Unit and the Texas Military Department, which includes branches of the National Guard.

This is a developing story. Check back for updates.

Follow @CNBCtech on Twitter for the latest tech industry news.


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: kate fazzini
Keywords: news, cnbc, companies, alarm, ransom, towns, hit, attack, responsible, texas, 23, department, paid, coordinated, ransomware, local, state, systems, attacks


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CEOs see pay grow 1,000% in the last 40 years, now make 278 times the average worker

In terms of pay, benefits and the value of stock options when they are exercised, total CEO compensation growth was 1,007.5% from 1978 to 2018. That compares with a wage increase of just 11.9% for what the liberal-leaning institute terms “average workers.” Top corporate executives have seen their pay grow by more than 1,000% over the past 40 years, nearly 100 times the rate of average workers, according to a study released this week. “Exorbitant CEO pay is a major contributor to rising inequalit


In terms of pay, benefits and the value of stock options when they are exercised, total CEO compensation growth was 1,007.5% from 1978 to 2018. That compares with a wage increase of just 11.9% for what the liberal-leaning institute terms “average workers.” Top corporate executives have seen their pay grow by more than 1,000% over the past 40 years, nearly 100 times the rate of average workers, according to a study released this week. “Exorbitant CEO pay is a major contributor to rising inequalit
CEOs see pay grow 1,000% in the last 40 years, now make 278 times the average worker Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: jeff cox
Keywords: news, cnbc, companies, ceos, million, ceo, times, compensation, average, workers, growth, 278, grow, worker, 40, 1000, paid, pay


CEOs see pay grow 1,000% in the last 40 years, now make 278 times the average worker

In terms of pay, benefits and the value of stock options when they are exercised, total CEO compensation growth was 1,007.5% from 1978 to 2018. That compares with a wage increase of just 11.9% for what the liberal-leaning institute terms “average workers.” Using another measure of compensation, which takes into account the realized value of the options when they were granted, the CEO comp growth still stood at 940.3%.

With wealth disparity continuing to accelerate, particularly since the financial crisis, the Economic Policy Institute reports that the gap between CEOs at the top 350 U.S. firms and the rank and file remains wide.

Top corporate executives have seen their pay grow by more than 1,000% over the past 40 years, nearly 100 times the rate of average workers, according to a study released this week.

Institute researchers Lawrence Mishel and Julia Wolfe called for action to reduce the pay gap, even if means taxing the firms where the disparity is greatest.

“Exorbitant CEO pay is a major contributor to rising inequality that we could safely do away with,” they wrote. “The economy would suffer no harm if CEOs were paid less (or taxed more).”

Disparity between executives and the broader workforce has been a hot-button issue as the gap has widened over the decades.

In comparative terms, CEOs now make on average 278 times the average worker’s salary, using the options-exercised formula. That’s up from 58 times in 1989 and 20 times in 1965, according to the institute’s figures though, it is down from the 2000 peak of 368 to 1. The total compensation growth since 1978 has outstripped that of the stock market growth of 706.7% and the wages of “very high earners,” which have grown 339.2%.

Mishel and Wolfe propose a variety of policy remedies: higher tax rates for top earners, taxing companies more that have greater compensation disparities, a “luxury tax” that would impose a $1 levy for every dollar companies go over a certain ratio cap, and corporate governance reforms that would give shareholders a greater say over wages.

“We need to enact policy solutions that would both reduce incentives for CEOs to extract economic concessions and limit their ability to do so,” the EPI team wrote.

Some of the top-paid CEOs include David Zaslav at Discovery ($129.5 million), Lawrence Ellison at Oracle ($108.9 million), John Legere at T-Mobile ($66.5 million), Robert Iger at Disney ($65.6 million) and Lachlan Murdoch at News Corp ($50.7 million), according to S&P Capital IQ records.

Measures to control their pay, though, would face opposition on the grounds that they are arbitrary and don’t take into account the value that strong CEOs add to their companies compared with other workers.

“Nobody gets upset that Steph Curry or Beyonce makes a certain amount of money, but the person who is an usher at the stadium makes a fraction of what they made,” said Carol Roth, CEO of Intercap Merchant Partners, a business advisory firm. “So I don’t understand why there is any comparison between what a CEO makes and a quote unquote average worker makes.”

Roth also said the numbers are skewed by a few CEOs who earn huge compensation packages, and added that taking pay from CEOs and redistributing it to thousands of workers wouldn’t make a difference to the workers anyway.

“The CEO is not getting paid at the expense of workers,” Roth said. “The workers are making what they make because that’s the market rate. If the CEO didn’t get paid that much, it’s not that the workers would get paid more. That money would go somewhere else.”


Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: jeff cox
Keywords: news, cnbc, companies, ceos, million, ceo, times, compensation, average, workers, growth, 278, grow, worker, 40, 1000, paid, pay


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Here’s why Jeffrey Epstein likely paid little in the way of taxes

Jeffrey Epstein was worth an estimated $559 million, yet he may have paid little in the way of personal income taxes. According to reports, Epstein changed his residence to his Virgin Islands estate nearly a decade ago. Little St. James Island, one of the properties of financier Jeffrey Epstein, is seen in an aerial view near Charlotte Amalie, St. Thomas, U.S. Virgin Islands July 21, 2019. By comparison, New Yorkers are paying some of the heftiest state income taxes nationwide. The top income ta


Jeffrey Epstein was worth an estimated $559 million, yet he may have paid little in the way of personal income taxes. According to reports, Epstein changed his residence to his Virgin Islands estate nearly a decade ago. Little St. James Island, one of the properties of financier Jeffrey Epstein, is seen in an aerial view near Charlotte Amalie, St. Thomas, U.S. Virgin Islands July 21, 2019. By comparison, New Yorkers are paying some of the heftiest state income taxes nationwide. The top income ta
Here’s why Jeffrey Epstein likely paid little in the way of taxes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: jessica dickler
Keywords: news, cnbc, companies, islands, jeffrey, according, paid, epstein, way, taxes, likely, state, york, personal, tax, virgin, little, income, heres, florida


Here's why Jeffrey Epstein likely paid little in the way of taxes

Jeffrey Epstein was worth an estimated $559 million, yet he may have paid little in the way of personal income taxes. The late financier, accused of sexually assaulting and trafficking girls as young as 14, had more than $179 million in assets from real estate, including a New Mexico ranch, a home in Palm Beach, Florida, a residence in Paris and a private island in the U.S. Virgin Islands — Little St. James. The Virgin Islands has its own system based on the tax laws and rates that apply in the U.S., according to the IRS, yet some tax-incentive programs there also make it possible for residents to reduce their federal income tax liability by as much as 90%. “Epstein, if he didn’t spend more than 183 days in the U.S., could take advantage of being a resident in the Virgin Islands and possibly reduced his tax liability,” said Timothy Speiss, a CPA and partner in the personal wealth advisors practice of EisnerAmper LLP. Claiming residency in a low- or no-tax jurisdiction typically means spending 183 days a year there for starters. According to reports, Epstein changed his residence to his Virgin Islands estate nearly a decade ago.

Little St. James Island, one of the properties of financier Jeffrey Epstein, is seen in an aerial view near Charlotte Amalie, St. Thomas, U.S. Virgin Islands July 21, 2019. Marco Bello | Reuters

If there’s one thing rich people like, it’s saving on taxes. More often, high-income residents in tax-heavy states such as New York and New Jersey consider moving to an income tax-free haven such as Florida for just that reason. Similarly, it takes six months and one day to establish residency in Florida, where there are also zero taxes on Social Security and retirement income. By comparison, New Yorkers are paying some of the heftiest state income taxes nationwide. The top income tax rate in New York is 8.82% and combined New York City and state taxes are about 12.7%. Over the last decade, the Sunshine State has been the most desirable destination by far for older Americans, as measured by average annual net migration for the 55-plus set, according to an analysis of Census Bureau data by William Frey, a demographer at the Brookings Institution. Tack on the new $10,000 cap on the state and local tax deduction on federal taxes, a feature of the Tax Cuts and Jobs Act, and it becomes only more attractive. For those at the very high end of the income spectrum, the tax savings can be in the millions, according to Mike Savage, a certified public accountant and chief executive officer of 1-800Accountant, which offers financial services to small business owners. However, New York is getting more aggressive about going after people it considers taxpaying residents, so skirting that tax bill is no easy feat. For one thing, income taxes make a significant contribution to states’ coffers. Nearly 40% of state tax collections come from levies on wages, according to the Tax Foundation. More from Personal Finance:

Five reasons why your high-tax state won’t let you move out

Retirees are flocking to these ‘hot’ spots

4 tips to prepare your finances for retirement abroad New York conducted about 3,000 “nonresidency” audits a year between 2010 and 2017, collecting around $1 billion, according to Monaeo, a company that sells an app for tracking and proving tax residency. To that end, state tax agents will look at all available records such as credit card charges, utility bills, property taxes, DMV records, voter registration and doctors visits. The onus is on the taxpayer to account for their whereabouts outside of New York, Savage said. “It’s guilty until proven innocent.” “You literally have to be outside of New York state for 183 days and prove it by taking a picture of yourself with a newspaper every day.”

In fact, states generally have two tests to determine your domicile, according to a member of the American Institute of CPAs’ personal financial planning executive committee. The first is an objective test, which is the number of days spent in one location. The second is a subjective test, which is how the facts line up: “Where is your daily life?” Cherill said. “If you have a golf club in the Hamptons, that says you are there a lot in the summer.” For those who want to legitimately relocate to Florida, or any tax-preferred state, Cherill advises clients to plan the move at least a year in advance. “The first thing is to come up with a proactive plan, map this out,” Cherill said. “Assess what you are willing to part with in the high-tax state,” he said — you don’t have to sell your home in your original home state but it helps to show you’ve made a commitment to leave. “Then keep records of where you are that line up with your credit card statement.” Also, systematically change everything over, from your driver’s license to your doctor, to reflect your new residence, he said. Subscribe to CNBC on YouTube.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: jessica dickler
Keywords: news, cnbc, companies, islands, jeffrey, according, paid, epstein, way, taxes, likely, state, york, personal, tax, virgin, little, income, heres, florida


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Alibaba’s Joseph Tsai to buy Brooklyn Nets in deal valuing team at record $2.35 billion, media reports

12 of the Brooklyn Nets shoots against Fred VanVleet No. 23 of the Toronto Raptors at Barclays Center on April 3, 2019 in Brooklyn, New York. Joseph Tsai, the billionaire co-founder of e-commerce giant Alibaba, is in talks to buy the remaining 51% of the Brooklyn Nets basketball team from Russian billionaire Mikhail Prokhorov, according to The New York Post. Tilman Fertitta, owner of restaurant chain Landry’s, also paid $2.2 billion to purchase the NBA’s Houston Rockets in 2017. Stuart Bryan, a


12 of the Brooklyn Nets shoots against Fred VanVleet No. 23 of the Toronto Raptors at Barclays Center on April 3, 2019 in Brooklyn, New York. Joseph Tsai, the billionaire co-founder of e-commerce giant Alibaba, is in talks to buy the remaining 51% of the Brooklyn Nets basketball team from Russian billionaire Mikhail Prokhorov, according to The New York Post. Tilman Fertitta, owner of restaurant chain Landry’s, also paid $2.2 billion to purchase the NBA’s Houston Rockets in 2017. Stuart Bryan, a
Alibaba’s Joseph Tsai to buy Brooklyn Nets in deal valuing team at record $2.35 billion, media reports Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: elijah shama
Keywords: news, cnbc, companies, tsai, brooklyn, buy, paid, joseph, valuing, nets, york, deal, team, owner, reports, record, billion, media, remaining, billionaire


Alibaba's Joseph Tsai to buy Brooklyn Nets in deal valuing team at record $2.35 billion, media reports

Joe Harris No. 12 of the Brooklyn Nets shoots against Fred VanVleet No. 23 of the Toronto Raptors at Barclays Center on April 3, 2019 in Brooklyn, New York.

Joseph Tsai, the billionaire co-founder of e-commerce giant Alibaba, is in talks to buy the remaining 51% of the Brooklyn Nets basketball team from Russian billionaire Mikhail Prokhorov, according to The New York Post.

The deal, which is expected to be announced this week, would value the team at $2.35 billion, according to unnamed sources cited by the New York Post.

If approved, it would be the highest price ever paid for a sports franchise. The current record came last year after hedge fund owner David Tepper acquired the NFL’s Carolina Panthers for $2.2 billion. Tilman Fertitta, owner of restaurant chain Landry’s, also paid $2.2 billion to purchase the NBA’s Houston Rockets in 2017.

Stuart Bryan, a spokeswoman for BSE Global, which manages and controls the Brooklyn Nets, declined to comment. CNBC couldn’t verify the details of the deal.

Tsai already owns 49% of the Nets, which he bought for $1 billion in 2017. At that time, the 55-year-old businessman locked in the right to buy the remaining 51% of the team before the within four years for an additional $1.35 billion, Bloomberg News reported at the time.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: elijah shama
Keywords: news, cnbc, companies, tsai, brooklyn, buy, paid, joseph, valuing, nets, york, deal, team, owner, reports, record, billion, media, remaining, billionaire


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GOP Sen. Rick Scott: Americans should get tax cuts in return for tariffs paid on Chinese goods

Republican Sen. Rick Scott told CNBC on Monday the U.S. government should return money collected from China tariffs to Americans as tax relief. President Donald Trump, earlier this month announced an impeding 10% tariff on the remaining $300 billion of Chinese goods that had not been previously taxed. Back In May, Trump hiked tariffs to 25% from 10% on $200 billion in Chinese goods. “We have to help American companies … and get more American jobs and stop helping China,” Scott said. “I’m not s


Republican Sen. Rick Scott told CNBC on Monday the U.S. government should return money collected from China tariffs to Americans as tax relief. President Donald Trump, earlier this month announced an impeding 10% tariff on the remaining $300 billion of Chinese goods that had not been previously taxed. Back In May, Trump hiked tariffs to 25% from 10% on $200 billion in Chinese goods. “We have to help American companies … and get more American jobs and stop helping China,” Scott said. “I’m not s
GOP Sen. Rick Scott: Americans should get tax cuts in return for tariffs paid on Chinese goods Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, tax, tariffs, american, sen, gop, scott, paid, trump, sure, tariff, stop, billion, return, trade, goods, rick, cuts


GOP Sen. Rick Scott: Americans should get tax cuts in return for tariffs paid on Chinese goods

Republican Sen. Rick Scott told CNBC on Monday the U.S. government should return money collected from China tariffs to Americans as tax relief.

“Anything we raise in tariffs, we should give back to the rank and public in tax reductions,” the Florida senator said in a “Squawk Box ” interview, acknowledging there’s been some “short-term pain.”

“We have to help American farmers open up more markets around the world,” said Scott, who did not elaborate on what such relief might look like.

Data from U.S. Customs and Border Protection, which collects taxes on imports, showed the U.S. had assessed $23.7 billion in tariffs from early 2018 through May 1. According to a Reuters report, total tariff revenue rose 73% in the first half of 2019 from a year earlier.

The trade dispute between the world’s two largest economies has been escalating in recent months, with investors fearing that it could slow global and U.S. economic growth. In fact, Goldman Sachs lowered its fourth-quarter U.S. growth forecast by 0.2% to 1.8%, with the cumulative drag on gross domestic product of 0.6%.

President Donald Trump, earlier this month announced an impeding 10% tariff on the remaining $300 billion of Chinese goods that had not been previously taxed. Back In May, Trump hiked tariffs to 25% from 10% on $200 billion in Chinese goods.

“We have to help American companies … and get more American jobs and stop helping China,” Scott said. “Stop acting like they are a partner,” adding he doesn’t see how a trade deal can be reached.

“I’m not sure what else we can do, other than stand up for American interests and American values,” he wondered. “I’m not sure what the president can do otherwise than the tariffs he is doing.”


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, tax, tariffs, american, sen, gop, scott, paid, trump, sure, tariff, stop, billion, return, trade, goods, rick, cuts


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Dropbox shares plummet after user growth slows, but CEO still sees expansion ahead this year

Dropbox CEO Drew Houston told CNBC on Friday that the cloud storage company still has big growth opportunities this year. Shares of Dropbox sank more than 13% on Friday after the file-sharing company reported Thursday after the bell in its second-quarter earnings release slow growth in paid users and revenue per user that was below forecasts. Dropbox last quarter saw its slowest growth in paid users since going public in 2018. It was unable to attract more paid users with its try-to-buy freemium


Dropbox CEO Drew Houston told CNBC on Friday that the cloud storage company still has big growth opportunities this year. Shares of Dropbox sank more than 13% on Friday after the file-sharing company reported Thursday after the bell in its second-quarter earnings release slow growth in paid users and revenue per user that was below forecasts. Dropbox last quarter saw its slowest growth in paid users since going public in 2018. It was unable to attract more paid users with its try-to-buy freemium
Dropbox shares plummet after user growth slows, but CEO still sees expansion ahead this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: jasmine kim
Keywords: news, cnbc, companies, growth, expansion, sees, dropbox, houston, investors, users, paid, share, million, revenue, plummet, slows, ahead, quarter, shares, user, ceo


Dropbox shares plummet after user growth slows, but CEO still sees expansion ahead this year

Dropbox CEO Drew Houston told CNBC on Friday that the cloud storage company still has big growth opportunities this year.

“We’re still growing. We had a good quarter. We beat expectations. We actually raised guidance for the year. So there’s still a lot of good stuff in there and obviously we’re very focused on growth and more is better,” Houston said on “Squawk Alley. ”

Shares of Dropbox sank more than 13% on Friday after the file-sharing company reported Thursday after the bell in its second-quarter earnings release slow growth in paid users and revenue per user that was below forecasts.

Dropbox last quarter saw its slowest growth in paid users since going public in 2018. It was unable to attract more paid users with its try-to-buy freemium offer, raising concerns among investors about its ability to convert free users into paying ones.

“We focus on both growing the number of subscribers and the amount of revenue per subscriber. Those are both going to fluctuate given time. We’re operating on a bigger scale,” Houston said.

While Dropbox saw the number of paying users rise to 13.6 million from 11.9 million a year ago, average revenue per user of $120.48 missed estimates of $120.8 according to Refinitiv.

The company’s net loss widened to $21.4 million, or 5 cents a share, from $4.1 million, or 1 cent a share, a year earlier.

Houston believes that the redesigned Dropbox service that was launched in June will continue to be the company’s focus and growth area going into the next quarter.

“What we’re focused on with the new Dropbox is solving new problems for our customers. The big growth opportunity for us is [bringing] the experience of using technology at work [which] has become really fragmented and overwhelming,” he said.

Despite the decline in its shares, the cloud storage company topped Wall Street estimates for the second quarter. Dropbox reported adjusted quarterly profit of 10 cents per share compared with 8 cents per share. Revenue came in at $401.5 million versus $400.9 million expected according to Refinitiv.

In response to what investors should know moving forward, Houston said, “We have more work to do to educate investors on our hybrid model, which combines the best elements of consumer internet and conventional enterprise software but doesn’t look quite like either one.”

“The benefits combined are really profitable. … But we have to help people understand that and understand why we’re so confident about our future.”


Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: jasmine kim
Keywords: news, cnbc, companies, growth, expansion, sees, dropbox, houston, investors, users, paid, share, million, revenue, plummet, slows, ahead, quarter, shares, user, ceo


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I quit my job at 34 with $3 million—here are my 5 biggest regrets about early retirement

If I could go back in time and retire all over again, here are five things I’d do differently:1. My wife, who was 34 at the time, had just negotiated her severance for early retirement. But over time, writing about real estate, investing, career strategies, family finances and retirement became a hobby. I also could have leveraged my interests in real estate and technology to start a real estate crowdfunding company — or, at the very least, join one. I still believe that real estate is one of th


If I could go back in time and retire all over again, here are five things I’d do differently:1. My wife, who was 34 at the time, had just negotiated her severance for early retirement. But over time, writing about real estate, investing, career strategies, family finances and retirement became a hobby. I also could have leveraged my interests in real estate and technology to start a real estate crowdfunding company — or, at the very least, join one. I still believe that real estate is one of th
I quit my job at 34 with $3 million—here are my 5 biggest regrets about early retirement Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: sam dogen
Keywords: news, cnbc, companies, early, real, things, job, biggest, paid, spend, work, id, retirement, financial, quit, estate, millionhere, regrets, 34


I quit my job at 34 with $3 million—here are my 5 biggest regrets about early retirement

Why is it that the younger we are, the more we’re in a rush to get things done? We want to graduate faster, get a job faster, get rich faster and retire faster. Up until my early 30s, that was always my mindset. And in 2012, I finally retired at 34. By the time I quit my job, I had amassed a net worth of about $3 million that generated roughly $80,000 in investment income per year. So far, it’s been an enjoyable experience. The freedom to wake up whenever I want and do whatever I want is priceless. I no longer have to deal with long commutes to work, 60-hour workweeks and office politics. I get to focus on my hobbies and spend more time with my wife (who also retired early) and son. But no situation is perfect. If I could go back in time and retire all over again, here are five things I’d do differently:

1. Wait it out for a year or more

At 42, I now realize how absurdly young I was when I retired. Several people even commented on how irresponsible and reckless my decision was, especially because I was just entering my peak earning years. But I had been with my firm for an 11 consecutive years; I was tired, bored and wanted to do new things. Looking back, I could have stayed for at least another year and found a new role within the firm in a different office. I had always wanted to work overseas — someplace in Hong Kong, Taiwan, Beijing or London. Maybe it would have rejuvenated my interests and convinced me to work a few more years. I would also put 100% of the extra money earned into various risk assets like stocks and bonds. Assuming a 4% annual return, I could have generated an additional $20,000 or more in passive income per year. Instead, I went straight to negotiating a severance — and even burned valuable vacation days before my departure!

2. Have our son before we retired

My wife and I delayed our decision to become parents because we were so focused on our careers. I also didn’t think I was mentally prepared to be a dad without first having an enormous financial buffer. I was 37 when we decided we were ready. My wife, who was 34 at the time, had just negotiated her severance for early retirement. After two years of trying, I finally became a dad at 39. In retrospect, I would have preferred to be a first-time parent in my early 30s. You could argue that I’d have less time to spend with my son because I’d be in the thick of work. But the way I see it, getting to spend a greater percentage of my overall life with him would be priceless. (Now I just hope I can live long enough to watch him grow up.) By waiting so long, I couldn’t take advantage of my firm’s incredibly generous — even by international standards — parental leave benefits: 20 weeks of paid leave (plus paid nannies for those who have to travel for work). As a result, we missed out on tens of thousands of dollars and had to pay more than $1,700 a month in healthcare premiums on our own.

3. Spend more time blogging

In 2006, I came up with the idea to start a personal finance website called Financial Samurai. Unfortunately, it didn’t happen right away; I was too busy trying to climb the corporate ladder for bigger titles and higher salaries. (How could I not? The correlation between effort and reward was so strong.) But after the financial crisis in 2008, it became clear that no matter how well I performed, I’d no longer get paid or promoted at my previous pace. Instead, my career would remain stagnant for a while and I’d actually get paid less. So in 2009, I finally launched Financial Samurai. At first, it was mostly a way for me to make sense of the financial chaos. But over time, writing about real estate, investing, career strategies, family finances and retirement became a hobby. Since launching, millions of readers have visited the website to learn and share insights on how to reach financial independence. Today, Financial Samurai is an established website, and its rapid growth continues to produce a decent amount of income. Still, I know that if I started it sooner, in 2006, it would have been much larger and more successful today.

4. Invest more aggressively in 2012

I was so fixated on planning my retirement in 2012 that the idea of leveraging up to buy more property and stocks never crossed my mind. (We even tried to sell our primary residence that year. Luckily, it didn’t happen because the market was so soft). If I worked a few extra years before retiring, I would have had the financial confidence to buy more real estate in 2012, right before prices began to take off. (A rental property in San Francisco that cost $900,000 in 2012 would be worth roughly $1.6 million today.) (Credit: Bay Area Market Reports, Compass) Had I continued working through the bull market, I probably could have made more than $250,000 in returns, based on my investment cadence at the time. Retiring early made me excessively risk-averse — and I paid the price.

5. Consider exploring a different industry

After 13 years of working in finance, I no longer found it interesting — and so I saw retirement as my way out. Looking back, I wish I took the time to explore different industries. I often toyed with the idea of joining an innovative tech startup with explosive growth. After all, I was living in San Francisco, the tech capital of the world. But because I was rushing to negotiate my severance, I didn’t even think to apply to companies like Uber, Airbnb and Pinterest. I also could have leveraged my interests in real estate and technology to start a real estate crowdfunding company — or, at the very least, join one. I still believe that real estate is one of the most straightforward ways most Americans can build wealth over the long term. Things could always change in the future, but right now, I feel too old and exhausted as a stay-at-home dad to pursue any of those dreams.

It’s all about timing


Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: sam dogen
Keywords: news, cnbc, companies, early, real, things, job, biggest, paid, spend, work, id, retirement, financial, quit, estate, millionhere, regrets, 34


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This single mom paid off $77,281 of debt in eight months—here are 5 steps she followed

Love, who is a single mom to a 6-year-old son, started her blog, The Budget Mom, in 2016 to document her debt journey. Paycheck method: Create a plan for how you spend your income each month, based on when you get paid. This exercise creates a sense of urgency, rather than fear, which is what “typically hinders our ability to really have a passion to tackle [debt],” Love says. Track your expensesIn order to create a budget that works, you should first track your expenses, Love says. Another appr


Love, who is a single mom to a 6-year-old son, started her blog, The Budget Mom, in 2016 to document her debt journey. Paycheck method: Create a plan for how you spend your income each month, based on when you get paid. This exercise creates a sense of urgency, rather than fear, which is what “typically hinders our ability to really have a passion to tackle [debt],” Love says. Track your expensesIn order to create a budget that works, you should first track your expenses, Love says. Another appr
This single mom paid off $77,281 of debt in eight months—here are 5 steps she followed Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: anna hecht
Keywords: news, cnbc, companies, expenses, single, pay, steps, followed, create, monthshere, debt, love, spending, method, plan, mom, paid, 77281, budget, personal


This single mom paid off $77,281 of debt in eight months—here are 5 steps she followed

When Kumiko Love, 33, got divorced in 2015, she was left with thousands in debt between student loans, credit card spending and car payments. But once she decided to get serious about her finances and create a plan that worked for her, she was able to pay off $77,281 in just eight months and declare herself debt-free in January 2019. Love, who is a single mom to a 6-year-old son, started her blog, The Budget Mom, in 2016 to document her debt journey. Since then, she’s built a community of around 400,000 unique monthly blog visitors and 238,000 Instagram followers by walking her readers through user-friendly strategies for tackling debt, setting a budget, tracking expenses and more. “My mission is to inspire women and people to live a life they love on a budget they can understand and afford,” Love tells CNBC Make It.

But prior to starting The Budget Mom, Love didn’t know much about personal finance, despite eight years worth of experience as a financial counselor. Back in 2011, when Love landed her first finance job, she remembers her boss sitting her down on her first day and making her create a personal budget. “It’s funny. Here I was, a graduate with a finance degree, but I knew nothing about personal finance,” Love says. “No one in my life had ever asked me to do something like that.” Love now helps her readers create personal budgets. Her signature method, which helped her pay off her own debt, rolls three budgeting techniques into one: the calendar method, the cash envelope system and the paycheck method. Here’s how she uses each: Calendar method : List out all of your expenses on a calendar, plus the date you get paid, and use it to set a plan for how to use your income that month.

List out all of your expenses on a calendar, plus the date you get paid, and use it to set a plan for how to use your income that month. Cash envelope system : Divide your cash among several envelopes that are each labeled for different spending categories, such as groceries, gas and dining out. Because you only have a set amount allocated for each category, you can avoid overspending in certain areas.

Divide your cash among several envelopes that are each labeled for different spending categories, such as groceries, gas and dining out. Because you only have a set amount allocated for each category, you can avoid overspending in certain areas. Paycheck method: Create a plan for how you spend your income each month, based on when you get paid. “Instead of boxing yourself in using a monthly format, [this method] allows you to pay bills, plan for upcoming holidays and events and appointments based on your paycheck date,” Love says. But Love learned that paying off debt is about more than creating a budget. For her, it took years’ worth of discipline: “I was able to pay off a majority of that debt in eight months because I had built up a successful company over three years, and worked two full-time jobs while also raising my son by myself.” “It’s not something that you just snap your fingers and happens,” Love adds. Read on for the five steps that helped her actually stick to her plan.

1. Get over being scared

“With debt, it’s a matter of getting over being scared,” Love says. “And not only that, it’s about looking at the big picture.” That means being honest enough to get all of your numbers out in front you, including every little thing you owe. “The main reason I did not get serious about tackling my debt is because I didn’t want to know,” Love says. “I knew it was bad, but I didn’t want to know how bad. I was scared to death of the actual number.” Love recognizes that this step is usually easier said than done. “This is the No. 1 thing that I have noticed as to why budgets have failed, ” she says. “At the very beginning, people will sit down and create a budget based on what they want to spend, not [based on] what’s realistically happening and what they are realistically spending.” Instead, Love says it’s important to write down your “true, true balance.” That means recording every single bit of debt or money you owe, including interest and due dates. This exercise creates a sense of urgency, rather than fear, which is what “typically hinders our ability to really have a passion to tackle [debt],” Love says.

2. Find your motivation

The next step to reaching your financial goals is to get motivated. For Love, it’s all about mindset. “You have to get to a place where you finally say ‘No more. I’m done just making minimum payments,'” she says. “You have to feel that anger. You have to get mad at your debt. You have to have those feelings and that passion to truly be motivated to pay it off.” But Love doesn’t want people to focus on the specific amount they owe. Instead, think about why you want to pay off your debt. “I only share my numbers with readers because I want them to know what’s possible,” Love says. “It’s more important that they understand that there was a method and a process behind paying off my debt.”

For added motivation, Love recommends organizing your finances in a way you find inspiring. Because she is “100% a visual learner,” that means writing everything down. “My method and steps are all truly based around awareness and using visual things, like the things you see on my Instagram, ” Love says.

3. Track your expenses

In order to create a budget that works, you should first track your expenses, Love says. “I always tell my readers to not even think about creating a budget until you have tracked your spending and have that full awareness,” she explains. That’s because, “if you’re tracking your spending, realistically tracking every dollar, and you’re creating that plan for your money every single time you get paid, you are then aware of where you can cut expenses and throw more money toward your debt or financial goals,” Love says. Love’s expense tracking method takes one month. The first step is to document everything you spend for a full 30 days. Once you’ve done that, it’s time to reflect on your spending habits. Love finds it helpful to highlight her expenses by category using colored pens. For example, dining might be highlighted in orange and travel in blue. Each month, she totals up the amount for each color to see how her budget is breaking down overall. She is able to quickly see where her money is going, which helps her set realistic category limits. “It’s easier for me to digest data using pictures, graphs and colors,” Love writes on her blog. “Having a bunch of data on a page wasn’t helpful, even though all of the information I needed was there, so I decided to create a system using colors.”

4. Pay your bills in a logical order

As you create a budget that makes sense for you, think about how to pay your bills in a logical order. Rather than acting out of stress and handling your bills at random, Love says it’s better to step back and create a purposeful payment plan. “Often, when we want to get out of debt, we start throwing all of our extra income to all of these different debt buckets, whether it’s a car payment, student loan, mortgage, credit cards, personal loans,” she says. Instead, Loves says to start by drafting up a step-by-step plan for all of your bills. Then, begin making decisions about where your money should go and when.

Often, when we want to get out of debt, we start throwing all of our extra income to all of these different debt buckets, whether it be a car payment, student loan, mortgage credit cards, personal loans. Kumiko Love founder of The Budget Mom

To determine which debt is most important, ask yourself whether you want to pay off the debt with the highest interest rate first, or start with the smallest account balance. When Love tackled her own debt, she decided to first pay off all of her bills with the smallest balances first. This approach to debt recovery is commonly referred to as the snowball method, and is backed by researchers at the Harvard Business Review because of how motivating it can be for people to tick off debts as they go. Another approach to debt repayment is the avalanche method, which involves paying down you debt with the highest interest rate first. While it may not be as motivating as the snowball effect, it arguably makes better financial sense because it cuts down on the total amount of interest you’ll end up paying.

5. Determine why you are spending

Once you’ve created a plan for tackling your existing debt, it’s important to address the root of the problem. Love’s debt started back in college. “I was one of those students that accepted more financial aid than I needed, and with that, came student loan debt,” she writes on her blog. Her situation got even worse following her divorce. Love struggled with low self-esteem and found herself overspending on superficial things. “I compared myself to others and I didn’t truly love who I was,” she says. “It was causing me to make really bad spending decisions and things never truly fixed the inside, and it caused a lot of the credit card debt.” In paying off her debt, Love learned that if you ever find yourself emotionally spending, it’s helpful to pause and think about your budget, needs and why you are really spending. “You have to ask yourselves the hard questions,” Love says. “I was spending because I didn’t genuinely like myself, but that took me years to figure out.” Love tells readers to take a deep breath before making any purchase that may seem frivolous: “Ask yourself, ‘Why am I standing at this checkout right now knowing full well that I can’t pay it off?’ There is an underlying reason, a deep down emotional reason why you are spending that way.” Don’t miss: The budget breakdown of a couple who lives ‘comfortably’ on $200,000 a year in San Francisco Like this story? Subscribe to CNBC Make It on YouTube!


Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: anna hecht
Keywords: news, cnbc, companies, expenses, single, pay, steps, followed, create, monthshere, debt, love, spending, method, plan, mom, paid, 77281, budget, personal


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