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Overtime Eligibility Threshold Doubles

In a move to address worker’s wages the Obama administration released a new rule to go into effect on December 1 on the eligibility threshold for a salaried worker to earn overtime pay. Prior to this rule, any salaried worker making over $23,660 a year was not required to be paid time-and-a-half if they worked over 40 hours a week; the new threshold has been more than doubled in order to extend overtime pay to employees making up to $47,500 a year. There has been backlash over the Obama administration’s new rule from both Republicans and business groups who argue that the new threshold will inadvertently hurt the very employees it attempts to help. This is contradictory to the purpose of the new rule, which was created in order to extend overtime pay to over 4 million middle and lower income families. This new rule is anticipated by critics to harm small businesses the most, as the incurrence of higher labor costs could result in the demotion of employees from their salaried positions down to hourly paid positions where their schedules can be managed in order to avoid an increase in labor costs, in addition to the possibility of a decrease in wage rates, and a reduction in hiring new employees. While opponents of the new rule argue that it will result in the demotion of thousands of workers, advocacy groups consider it to be a roundabout way of increasing minimum wage for the middle class.

Millions of American Workers Lack Emergency Savings

Recently, the NORC Center For Public Affairs Research and the Associated Press released the results of a recent survey they had commissioned to investigate the financial condition of workers in the United States. The results painted a bleak picture of financial inequality, and sparked media speculation that the “Great Recession” has not completely ended.

In response to a question on the survey, fully three quarters of respondents with incomes below $50,000 annually divulged that they would struggle to raise $1,000 to meet unanticipated expenses. Surprisingly, the majority of households earning between $50,000 and $100,000 a year reported the same results, with 67& of respondents concerned about their ability to raise a thousand dollars on short notice. Among the one in five households in the nation earning over $100,000, some 38% of poll respondents expressed concern about their ability to raise $1,000 quickly.

Caroline Ratcliffe of the Urban Institute characterized the results of the survey as “alarming”. She noted that a strong correlation may exist between an inability to raise money on short notice and homelessness.

Meanwhile, a study issued by leading labor unions, the AFL-CIO, reported ongoing sharp inequality in earnings, with the chief executive officers of the nation’s largest 500 companies earning roughly 340 times the annual wages of a typical employee during the previous year. However, even CEO pay dropped to a lower level within the past year, according to the report. Production workers earned an average of $36,900 in 2015.

Diversifying Your Investments and Generating a Passive Income

Brazilian banker and investment expert Igor Cornelsen is very passionate and informative when it comes to matters of passive income and investment. Brazilian bankers tend to only lend money to borrowers who are highly qualified. This provides banks with future security. They know that they can count on repayment. Having a stricter lending approach generally leads to more success in the bank’s future.

Brazil has one of the best markets in South America because it is one of the world’s largest producers of food. They continue to be the largest economy in the region. They have many exports and the economy seems to thrive in comparison to some of the poorer economies in surrounding countries. It is also the largest country on the continent, which also aids in its economic success.

However, Brazil currently has an overvalued currency. This has led to a decline in their overall exports. Igor Cornelsen’s strategy to combating a declining economy is obtaining a long term successful investment strategy. He recommends that you diversify your interests and invest. Generating a passive income can be rather simple if you are properly informed. Of course, it requires an original investment up front, but many find that it is incredibly well-worth it. You can, in many cases, earn up to a 500% return on your original investment. He also suggests that you maximize your overall earning potential by investing in companies that are guaranteed to maintain steady progress and are unlikely to be dramatically effected by economic decline.  Often, people overlook passive income as a way to truly make a living and focus on extraneous and mundane jobs.

However, being deeply informed and finding the right company to invest in, can make earning a passive income a reality. When done correctly, you can often have no direct involvement. This frees up time for your personal life and also to advance in your career path knowing that you have a stable income to fall back on. It can be a delicate process but developing an income strategy can be very beneficial in helping you reach your financial goals. In order to generate a passive income you must invest. That is the first step towards becoming more financially stable without direct involvement.