Monday, August 24, 1998
You're not saving enough.
So says the government, which calculated that Americans' personal savings rate dipped to 0.2 percent in June, the lowest level since the government started keeping monthly figures in 1959.
What does that figure really mean?
Essentially, it means that for every $5 in pay that the average American worker took home after taxes, one lonely penny went into the bank.
Here are a few easy ways to boost your savings rate:
Save loose change. Always use paper money for payment so that you get at least some change in return.
Have separate savings, checking accounts. And don't dip into savings when your checking account runs low.
Divert unproductive spending. Save money that you ordinarily might waste on the lottery.
Reinvest dividends from stocks or mutual funds.
Dividend reinvestments need clear instructions
If you plan to sell shares you've acquired in a dividend-reinvestment plan, make sure that you give clear instructions to the transfer agent, cautions Charles Carlson, editor of the DRIP Investor, a monthly newsletter (http://www.dripinvestor.com).
"Terminating a dividend reinvestment plan vs. liquidating or selling shares is an important distinction," he said.
"Don't assume that termination means sell. Some plans may merely terminate your plan participation without selling your shares. Be explicit if you want shares to be sold, whether you're communicating with the company in writing or by phone."
Reservations pour in to greet year 2000
While many people want to do something special for New Year's Eve, travel agents say their customers are already planning the extraordinary to welcome the year 2000.
Airlines, hotels and car rental companies, which generally don't take reservations more than a year ahead of time, have been fielding inquiries for some time for the big night.
The American Society of Travel Agents surveyed its members and found that almost three-quarters of customers planning Dec. 31, 1999, travel are interested in cruises. Big vacation destinations such as the Caribbean, Walt Disney World, Las Vegas and New York are also in demand.
Study identifies major travel destinations
If you're traveling to a U.S. city on business, chances are it'll be Chicago, New York or Atlanta, finds Runzheimer International, a management consulting firm.
Runzheimer, which surveyed travel managers at U.S. companies, found those were the three most popular domestic destinations for business trips, followed by Los Angeles; Dallas; Boston; San Francisco; Washington D.C.; Orlando, Fla.; and Denver.
The most popular international destination was London, followed by Paris, Toronto, Mexico City and Tokyo.
Retain workers with supportive environment
The tight labor market is putting pressure on employers to keep valued workers.
George Paajanen, a vice president at the consulting firm Personnel Decisions International, says companies should start out by being sure they hire the right people for the job.
Employers should also give their workers a supportive environment, and remove obstacles such as a management structure that stifles creativity. Employees should also get the necessary job training and skill enhancements they need.
-- Gannett News Service and The Associated Press
