Image Source: St. Louis Federal Reserve

This is a little off the topic of small business but I think it affects each and every one of us.

An interesting discussion is taking place over at Vox Baby about personal savings.

According to the GDP Report, consumer confidence in the economy is up, yet personal savings is down.

In fact, the U.S. Personal Savings Rate has not been positive for the U.S. since March of 2005.

Some argue that this has to do with baby boomers funding higher education for their children.

Others suggest looking at income quintiles. “The topmost quintile is very, very confident that their income will stay high come what may. So why save?”

The personal savings rate does not include capital gains on investments as a method of saving.

William Gale, a tax specialist at the Brookings Institution in Washington, D.C., says the situation isn’t as bad as it seems and it’s a mistake to look at the personal savings rate and think it correlates with wealth accumulation.

“For wealth accumulation you need capital gains. … it is [important] to look at the right measurement. The personal savings rate is good as a national income accounting measure.”

“I wonder how it can be that with the Baby Boomer generation in the high-income and presumably high-saving part of its economic life cycle, we can possibly have negative saving rates for the population as a whole, if we are making decisions with any attention to the amount of consumption … in the future.”

Vox Baby - The End of Personal Saving?

Despite a favorable outlook, there are at least three widely acknowledged areas of near-term concern that could pose risks to the economy going forward: a spike in energy prices, a decline in home prices, and a retrenchment in consumer spending arising from record consumer indebtedness.

The public’s increase in debt in 2005 was far greater than its increase in after-tax income.

FDIC.gov - Scenarios for the Next U.S. Recession

… research suggests that a group that includes approximately 10 percent of U.S. households may be at heightened risk of credit problems …

Not only do many borrowers in this group have pre-existing credit problems, they may also be more vulnerable than other groups to rising interest rates because of their reliance on interest-only and payment-option mortgages.

Gary North - The Next Recession

More Discussion and Information:

The Glittering Eye - Why is the savings rate so low?
Investment U - U.S. Personal Savings Rate
Bankrate.com - Savings in America: Retirement picture not as bad as it looks

Tags: personal savings, Baby Boomer, Recession

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Hello and welcome to lucky edition #13 of the Carnival of Entrepreneurship. The CoE is a traveling small business blog post collection published every Thursday.

I received several great submissions covering excellent topics. Without further delay, here are my favorite picks:

• Matt Inglot gives 5 excuses why someone can’t become an entrepreneur, and what aspiring business owners can do to overcome The Barriers to Starting Your Own Business.

• Chris Pearson suggests finding a niche to become an expert in so that you can Kiss Corporate Life Goodbye.

• Dave G. writes about his success with Google Adsense in the post Adsense = Free Car and Free Home.

• Rob May offers sound advice on Pre-Entrepreneurship: What To Do When You Are Waiting.

• Phylameana lila Désy is attempting to harness good chi through Feng Shui In Her Home Office. I love Feng Shui and believe in the power of energy flow and conceptual symmetry.

• David Lorenzo teaches us how to take advange of chance meetings through Mastering the Random Encounter.

• Jack Yoest compares the anticipation created by marketing to Selling the Great Wall of China. Great pictures, Jack!

That concludes this week’s Carnival of Entrepreneurship post. Submit your blog article for consideration into CoE #14.

About the Carnival of Entrepreneurship
What is a Blog Carnival?

Tags: Carnival of Entrepreneurship, small business, entrepreneur, Starting Your Own Business, niche, Adsense, Pre-Entrepreneurship, Feng Shui, chance meetings, marketing, Blog Carnival

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Angie Mckaig has posted an excellent writeup about the use of email in the small business world. In under a decade, email has become the most popular method of conducting business.

Angie passes along 5 quick and easy email tips for entrepreneurs:

• Looks matter

Formatting your emails in a professional manner will score brownie points with your clients.

• Run a business, not an acquaintanceship

Respond to email requests promptly. I typically respond to emails within 2-3 hours of receipt.

• Emotions have no place in business

Avoid using emotionally based words. Business is business and feelings aren’t of the essence.

• Emoticons were created for a reason

Write clearly and to the point. The reader should immediately pick up on your tone.

• Explanations go a long way

Your clients will be more attentive to buy if you fully explain the answers to their questions.

Recommended Reading:

• Business Email Etiquette: Maintaining a Professional Image
• Business Email Etquette Basics
• Five Email Etiquette Tips for Better Communication

Tags: email, small business, conducting business, email tips, entrepreneurs, Etiquette, Communication

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Energy — in a variety of forms — has a continuous and direct effect on our daily lives from top to bottom.

At present, fossil fuels account for 86 percent of world energy consuption. By 2020, global demand for energy is expected to outpace current world production by nearly 40 percent.¹

Here’s my energy portfolio:

IGNAX - Ivy Global Natural Resources Class A
IGNCX - Ivy Global Natural Resources Class C

…and a new fund that I will be investing in today:

WEGAX - Waddell Reed Energy Fund Class A

…and I’m considering buying into this new fund:

GAAEX - Guinness Atkinson Alternative Energy Fund

I predict that industrialized nations will witness an accelerated use of fossil fuels for another 10-20 years. The price of oil and gas will soar and supply will diminish rapidly.

Within 5 years, I see focus moving to renewable energy and alternative energy research, development and infastructure on a large scale basis. This will set up another energy investment opportunity for lucrative returns many years down the road.

Will I stand correct in 2016? Who knows… but my gut feeling is telling me to jump on board as quickly as possible.

¹ EIA; BP Statistical Review of World Energy

5/02/06 UPDATE: The conflict with Iran is getting even nastier. The Iranian government could sabotage oil trade routes at any moment, driving oil supply down and prices through the roof even sooner than expected.

If this happens I see oil spiking to at least $85 a barrel this summer and possibly $100 by winter.

“At some stage, I think Iran will use its oil as a weapon to negotiate with the U.N. and the U.S., which would push up the market — although they are unlikely to stop exports altogether because they need the money.”

–Tetsu Emori, chief commodities strategist with Mitsui Bussan Futures in Tokyo.

Consult with an investment professional before taking part in any investment scheme.

Recommended Resources:

• Forbes.com - Forbes Energy News
• R.E.A. - Global Renewable Energy Investments Top $30 Billion
• Market Participant - A Balanced Energy Portfolio

Tags: Energy, fossil fuels, demand for energy, investing, renewable energy, alternative energy

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This week’s edition (#133) of the Carnival of the Capitalists can be found at About.com Entrepreneur’s Guide.

About the Carnival of the Capitalists
What is a Blog Carnival?

My personal favorites list from the CotC #133:

Entreprenuership
• 10 Mistakes Made by the Newly Self-Employed
• Learning From the Newly Self-Employed Mistakes
• Mindset: Starting Your Own Micro-Business

General Business
• Monday Morning Business Humor

Saving & Investing
• Complacency anyone? (Wall of Worry vs. What, Me Worry?)
• Reveling in High Gas and Oil Prices

Economics
• Voting For Inflation (Minimum Wage Increase)
• Young People Receiving Money From Parents

Personal Finance
• How to Become a Millionaire
• High Deductible Health Insurance High-Jinks

Tags: Carnival of the Capitalists, Blog Carnival, Self-Employed, Micro-Business, Business Humor, Inflation, Minimum Wage Increase, Millionaire, Health Insurance

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Owning a small business is typically a stressful endeavor, especially if you are the only one running the show. The daily grind can cause muscles to tense and eventually bones to move out of position.

To relax your mind, body, and spirit … try Yoga. I started a routine at home last week that has really helped to relax my back and shoulder pain as well as helping me sleep better at night.

Most Yoga DVDs are the price of a typical Hollywood movie. My wife purchased “Yoga Zone Intermediate”. A few parts of it are cheesy, but the stretches demonstrated really work.

You can even do Yoga stretches at your desk as a break from work.

Recommended Reading:

• Yoga @ Your Desk
• Nine to Five Yoga

Tags: small business, Yoga, stretches

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This week’s edition (#132) of the Carnival of the Capitalists by can be found at Free Money Finance.

About the Carnival of the Capitalists
What is a Blog Carnival?

My personal favorites list from the CotC #132:

General Business
• Being a Technopreneur
• Ethics as a Core Competency.

Taxes & Finances
• Turn In Tax Cheats And Make Money
• Removing Private Mortgage Insurance (PMI)
• You, Inc. And The IRS
• Real Estate Investments: Sell vs. Hold?

Human Resources & Management
• Unmotivated Employees - Is It Your Fault or Theirs?
• When Money is Not an Option

Next week’s CotC #133 will be hosted by Scott Allen’s About.com Entrepreneur’s Guide.

Tags: Carnival of the Capitalists, Blog Carnival, Ethics, Tax Cheats, Private Mortgage Insurance, IRS, Real Estate Investments, Employees

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IBM Corp. has announced “SecureBlue”, a security architecture that “can be built into a microprocessor chip to provide defense features previously unseen”.

IBM claims “the chip encryption process allows for increased security for both the microprocessor on which it is added, and the entire devices the chips are used in.”

Unfortunately IBM’s encryption engine is not plug-and-play. SecureBlue will need to be woven into a processor’s circuitry during the manufacturing process.

This means that the first offering of SecureBlue will likely will end up only in devices made by companies that hire IBM’s custom engineering unit. That group’s projects include chips for medical and defense systems and video game consoles.

• Official IBM Press Release

Related Readings:

• IBM Bakes Security Into Processors
• SecureBlue, New Encryption Chip from IBM
• IBM Partners with Missouri State University to boost IT training

Tags: IBM, SecureBlue, encryption, security, microprocessor

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This week’s edition (#131) of the Carnival of the Capitalists by Dane Carlson can be found at Business Opportunities Weblog.

View the Carnival of the Capitalists 131
About the Carnival of the Capitalists
What is a Blog Carnival?

My personal favorites from the CotC #131:

• Are You A “Leftover” Investor?
• A Look at Financial Infidelity in Relationships

Next week’s CotC #132 will be hosted by Frank, HelloDollar.com.

Tags: Carnival of the Capitalists, Blog Carnival

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Apple Computer Inc., the maker of the Macintosh computer and iPod music devices, on Wednesday rolled out a software patch under its plan to move its computers over to Intel Corp. microprocessors.

Apple said that the new software, called “Boot Camp”, enables Intel-based Macs to install and run Microsoft’s Windows XP operating system software. Boot Camp is available as a download beginning today.

Apple Introduces Boot Camp

Recommended Reading:

• AppleXnet.com - Apple OS Boot Camp Details
• Technovia - Why Boot Camp Won’t Make Much Difference
• InfoWorld Daily - A first look at how Apple’s Boot Camp works

Tags: Apple Computer, Intel, Boot Camp, Microsoft, Windows XP

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Jason Fried over at Signal vs. Noise made an excellent point yesterday about respecting products you make and the customers who buy them.

Does this company respect me? Try the sticker test.

For instance, those pesky information stickers that come on just about everything, including INSIDE of a tea-kettle I bought recently.

• Are they easy to remove?
• Do they leave a sticky residue when removed?

Here is this great product I purchased and the manufacturer insists on sticking something on that completely mars the surface.

When these stickers are included, I can discern that the manufacturer probably has not tried to remove one of these stickers from their product themselves. They stick it and forget it.

This tells me that they don’t care about the product, or me.

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This week’s edition (#130) of the Carnival of the Capitalists by Rob can be found at Jotzel.com.

View the Carnival of the Capitalists 130
About the Carnival of the Capitalists
What is a Blog Carnival?

My personal favorites list from the CotC #130:

Entrepreneurship
• Venture Capitalists are Not Long-Term Investors
• Forget Investors, Get Out There And Make Some Money!
• Elasticity for Entrepreneurs
• What Is The 80/20 Rule And Why It Will Change Your Life

Marketing & Advertising
• Sales Techniques: Create Sense of Urgency
• Trade Show Conventions - Do’s and Don’ts

Financial
• How to Translate Financial Reports into Action Items
• How to Stop Credit Bureaus From Selling Your Information

Human Resources & Management
• Hiring Mistakes
• Why New Supervisors Go Mad
• Exploring Whitespace

Next week’s CotC #131 will be hosted by James Archer, StrangeBrand.com.

Tags: Carnival of the Capitalists, Blog Carnival, Venture Capitalists, Entrepreneurs, 80/20 Rule, Sales Techniques, Trade Show Conventions, Financial Reports, Credit Bureaus, Hiring Mistakes, Supervisors, Whitespace

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