Tag: learnfromhome

Insecurity

Everyone feels a little unsure at times. As humans, we constantly think, and some of our thoughts can be filled with doubt. This can lead to thoughts of insecurity. Too much insecurity can lead to other problems — in relationships and in your everyday life. However, there are ways you can work through your insecure thoughts and live life more confidently.

What Is Insecurity?

Insecurity is a feeling of inadequacy (not being good enough) and uncertainty. It produces anxiety about your goals, relationships, and ability to handle certain situations. Everybody deals with insecurity from time to time. It can appear in all areas of life and come from a variety of causes. It might stem from a traumatic event, patterns of previous experience, social conditioning (learning rules by observing others), or local environments such as school, work, or home. It can also stem from general instability. People who experience unpredictable upsets in daily life are more likely to feel insecure about ordinary resources and routines.On the other hand, insecurity can have no definite, external cause. Instead, it can appear as a quirk of personality or brain chemistry. Understanding the nature of insecurities can help you manage your own and offer others the support they need.  

Types of Insecurity:

There are almost limitless areas of potential insecurity. Moreover, insecurity often bleeds over from one area of life into another. However, there are some types of insecurity that appear frequently.

Relationship Insecurity: One of the most common kinds of insecurity concerns relationships or “attachments.” Attachment theory originated out of a desire to connect the attachment patterns of early childhood to later relationship patterns and expectations. When a child’s “attachment figures”, often parents or guardians, aren’t reliably available and supportive, the child often feels insecure, forms a negative self-image and relationship models, and experiences greater emotional distress and maladjustment later in life. Relationship or attachment insecurities don’t need to begin in early childhood. They can arise wherever previous experience or personal insecurity undermines someone’s security in their closest relationships.

Job Insecurity: Job insecurity occurs when you are anxious about your continued employment or about the continuation of certain benefits attached to your employment. It can be triggered by anxiety over your own job performance or anxiety over factors beyond your control, such as the economy, industry trends, workplace conflict, or the danger of company restructuring or failure. High rates of unemployment and temporary work increase job insecurity on a national scale and contribute to widespread mental health problems.

Body Image Insecurity : A common source of insecurity is body image. Many people feel insecure about the way they look and question whether they measure up to an imposed ideal. There is no necessary connection between actual body health or appearance and body insecurity. People of all body types can experience this type of insecurity.

Social Insecurity/Anxiety : Another common type of insecurity surrounds the way we are perceived by our peers and the ease with which we interact with them. This insecurity can be a recurring, low-level problem or can blossom into full-blown social anxiety disorder or social phobia.

Signs of Insecurity:

Signs of insecurity are as variable as the condition itself, but there are some common tendencies you can look out for.

Low or Superficial Self-Esteem : One sign of insecurity is low self-esteem or negative self-image, particularly when that image seems to be inconsistent with external observation. Low self-esteem means you think badly about yourself or your abilities. It can lead to other problems, especially concerning mental health. Talk to a doctor if your self-esteem is very low.Because the measurement of self-esteem generally relies on self-report, insecurity can lead to superficial self-esteem. People with insecurity often want to appear secure, and their explicit comments may be at odds with their automatic responses to certain stimuli. Deliberate self-misrepresentation or false behavior/information on social media can also be a sign of social anxiety. The act of faking then reinforces the social insecurity.

Perfectionism : The inability to be satisfied with progress and need to control and refine projects until they’re perfect can be a sign of insecurity. It stems from the sensation that you or your performance is never enough. It can appear as a manifestation of insecurity in any area of life but is frequently found in cases of job insecurity and body insecurity. Eating disorders, for example, often appear along with both harmful perfectionism and attachment insecurities.

Self-Isolation : Social insecurity can lead people to avoid social interactions, isolating themselves. Sometimes these people prefer to interact virtually in internet situations they feel they can control.

Anxious or Avoidant Attachment Styles : Attachment insecurities often result in problematic attachment styles, or dysfunctional approaches to relationships. The two most common are anxious or avoidant attachments. Anxious attachment styles are characterized by emotional dependence (relying on someone else for your emotional well-being), a fear of being alone, and fantasies of perfect relationships that can never be fulfilled. Avoidant attachment styles also stem from insecurity but go in the other direction. People with this style tend to keep relationships superficial and disengage from more intimate connections.

Poor Job Performance : Job insecurity (not having a stable job) can work to motivate some people, but it more often results in poorer performances. It can lead to absenteeism (avoiding work), turnover intention (wanting to change jobs soon after starting), disengagement from colleagues and in group projects, and poor work attitudes.

Depression or Anxiety : All types of insecurity can lead to decreased mental wellness. Depressive or anxious behavior or thinking is often an effect of insecurity, particularly when that insecurity produces (or is accompanied by) erroneous beliefs and patterns of thought.

Dealing with Insecurity :

Occasional insecurity is a natural part of life. For deeper and more longer-lasting feelings of insecurity, however, professional therapists can help you sort through your emotions and develop strategies for everyday life. In dealing with insecurity, there are a couple of helpful tips to keep in mind.

Social Networks Matter : Broad and meaningful social networks — frinedships, relationships with coworkers, and more — help to lessen both insecurity and its negative effects. There’s an inverse correlation between healthy social networks and insecure attachment styles. Having a wide circle of friends and many close connections allows you to develop the tools and confidence to engage in deeper adult relationships.Developing good friendships both in and out of the workplace also has a proven record of success as a coping strategy that helps prevent job insecurity, depression, and general anxiety. People who disengage from colleagues in response to job insecurity more frequently suffer in their mental health and job performance.

Trust Takes Practice : While having an overly trusting behavior creates its own problems, ask yourself if you have any reason to distrust expressions of affection or liking from others. People with insecurities sometimes express doubt and perceive rejection in everything from partner relationships to new acquaintances. These expressions can be self-fulfilling. Practice taking displays of interest at face value, something that can be easier in more casual relationships. You can build up the confidence to accept deeper affection and intimacy.

Gig Economy

What Is the Gig Economy?

In a gig economy, temporary, flexible jobs are commonplace and companies tend to hire independent contractors and freelancers  instead of full-time employees. A gig economy undermines the traditional economy of full-time workers who often focus on their career development.

Understanding the Gig Economy

In a gig economy, large numbers of people work in part-time or temporary positions or as independent contractors. The result of a gig economy is cheaper, more efficient services, such as Uber or Airbnb, for those willing to use them. People who don’t use technological services such as the Internet may be left behind by the benefits of the gig economy. Cities tend to have the most highly developed services and are the most entrenched in the gig economy. A wide variety of positions fall into the category of a gig. The work can range from driving for Lyft or delivering food to writing code or freelance articles. Adjunct and part-time professors, for example, are contracted employees as opposed to tenure-track or tenured professors. Colleges and universities can cut costs and match professors to their academic needs by hiring more adjunct and part-time professors.

The Factors Behind a Gig Economy

America is well on its way to establishing a gig economy, and estimates show as much as a third of the working population is already in some gig capacity. Experts expect this working number to rise, as these types of positions facilitate independent contracting work, with many of them not requiring a freelancer to come into an office. Gig workers are much more likely to be part-time workers and to work from home. Employers also have a wider range of applicants to choose from because they don’t have to hire someone based on their proximity. Additionally, computers have developed to the point that they can either take the place of the jobs people previously had or allow people to work just as efficiently from home as they could in person.

Economic reasons also factor into the development of a gig economy. Employers who cannot afford to hire full-time employees to do all the work that needs to be done will often hire part-time or temporary employees to take care of busier times or specific projects. On the employee’s side of the equation, people often find they need to move or take multiple positions to afford the lifestyle they want. It’s also common to change careers many times throughout a lifetime, so the gig economy can be viewed as a reflection of this occurring on a large scale.

During the coronavirus pandemic of 2020, the gig economy has experienced significant increases as gig workers have delivered necessities to home-bound consumers, and those whose jobs have been eliminated have turned to part-time and contract work for income. Employers will need to plan for changes to the world of work, including the gig economy, when the pandemic has ended.

Criticisms of the Gig Economy

Despite its benefits, there are some downsides to the gig economy. While not all employers are inclined to hire contracted employees, the gig economy trend can make it harder for full-time employees to develop in their careers since temporary employees are often cheaper to hire and more flexible in their availability. Workers who prefer a traditional career path and the stability and security that come with it are being crowded out in some industries.

For some workers, the flexibility of working gigs can actually disrupt the work-life balance, sleep patterns, and activities of daily life. Flexibility in a gig economy often means that workers have to make themselves available any time gigs come up, regardless of their other needs, and must always be on the hunt for the next gig. Competition for gigs has increased during the pandemic, too. And unemployment insurance usually doesn’t cover gig workers who can’t find employment.

In effect, workers in a gig economy are more like entrepreneurs than traditional workers. While this may mean greater freedom of choice for the individual worker, it also means that the security of a steady job with regular pay, benefits—including a retirement account—and a daily routine that has characterized work for generations are rapidly becoming a thing of the past.

Lastly, because of the fluid nature of gig economy transactions and relationships, long-term relationships between workers, employers, clients, and vendors can erode. This can eliminate the benefits that flow from building long-term trust, customary practice, and familiarity with clients and employers. It could also discourage investment in relationship-specific assets that would otherwise be profitable to pursue since no party has an incentive to invest significantly in a relationship that only lasts until the next gig comes along.

Property Rights

What Are Property Rights?

Property rights define the theoretical and legal ownership of resources and how they can be used. These resources can be both tangible or intangible and can be owned by individuals, businesses, and governments. In many countries, including the United States, individuals generally exercise private property rights or the rights of private persons to accumulate, hold, delegate, rent, or sell their property. In economics property rights form the basis for all market exchange, and the allocation of property rights in a society affects the efficiency of resource use.

Understanding Property Rights

Property is secured by laws that are clearly defined and enforced by the state. These laws define ownership and any associated benefits that come with holding the property. The term property is very expansive, though the legal protection for certain kinds of property varies between jurisdictions.Property is generally owned by individuals or a small group of people. The rights of property ownership can be extended by using patents and copyrights to protect:

  • Scarce physical resources such as houses, cars, books, and cellphones
  • Non-human creatures like dogs, cats, horses or birds
  • Intellectual property such as inventions, ideas, or words

Other types of property, such as communal or government property, are legally owned by well-defined groups. These are typically deemed public property. Ownership is enforced by individuals in positions of political or cultural power. Property rights give the owner or right holder the ability to do with the property what they choose. That includes holding on to it, selling or renting it out for profit, or transferring it to another party.

Acquiring Rights to a Property

Individuals in a private property rights regime acquire and transfer in mutually agreed-upon transfers, or else through homesteading. Mutual transfers include rents, sales, voluntary sharing, inheritances, gambling, and charity. Homesteading is the unique case; an individual may acquire a previously unowned resource by mixing his labor with the resource over a period of time. Examples of homesteading acts include plowing a field, carving stone, and domesticating a wild animal. In areas where property rights don’t exist, the ownership and use of resources are allocated by force, normally by the government. That means these resources are allocated by political ends rather than economic ones. Such governments determine who may interact with, can be excluded from, or may benefit from the use of the property.

Private Property Rights

Private property rights are one of the pillars of capitalist economies, as well as many legal systems, and moral philosophies. Within a private property rights regime, individuals need the ability to exclude others from the uses and benefits of their property. All privately owned resources are rivalrous, meaning only a single user may possess the title and legal claim to the property. Private property owners also have the exclusive right to use and benefit from the services or products. Private property owners may exchange the resource on a voluntary basis.

Private Property Rights and Market Prices

Every market price in a voluntary, capitalist society originates through transfers of private property. Each transaction takes place between one property owner and someone interested in acquiring the property. The value at which the property exchanges depends on how valuable it is to each party. Suppose an investor purchases $1,000 in shares of stock in Apple. In this case, Apple values owning the $1,000 more than the stock. The investor has the opposite preference, and values ownership of Apple stock more than $1,000.

Financial Literacy

What Is Financial Literacy?

Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. Financial literacy is the foundation of your relationship with money, and it is a lifelong journey of learning. The earlier you start, the better off you will be, because education is the key to success when it comes to money.

Read on to discover how you can become financially literate and able to navigate the challenging but critical waters of personal finance. And when you have educated yourself, try to pass your knowledge on to your family and friends. Many people find money matters intimidating, but they don’t have to be, so spread the news by example.

Understanding Financial Literacy

In recent decades financial products and services have become increasingly widespread throughout society. Whereas earlier generations of Americans may have purchased goods primarily in cash, today various credit products are popular, such as credit and debit cards and electronic transfers. Indeed, a 2019 survey from the Federal Reserve Bank of San Francisco showed that consumers preferred cash payments in only 22% of transactions, favoring debit cards for 42% and credit cards for 29%.

Other products, such as mortgages, student loans, health insurance, and self-directed accounts, have also grown in importance. This has made it even more imperative for individuals to understand how to use them responsibly. Although there are many skills that might fall under the umbrella of financial literacy, popular examples include household budgeting, learning how to manage and pay off debts, and evaluating the tradeoffs between different credit and investment products. These skills often require at least a working knowledge of key financial concepts, such as compound interest and the time value of money. Given the importance of finance in modern society, lacking financial literacy can be very damaging to an individual’s long-term financial success.

Being financially illiterate can lead to a number of pitfalls, such as being more likely to accumulate unsustainable debt burdens, either through poor spending decisions or a lack of long-term preparation. This in turn can lead to poor credit, bankruptcy, housing foreclosure, and other negative consequences. Thankfully, there are now more resources than ever for those wishing to educate themselves about the world of finance. One such example is the government-sponsored Financial Literacy and Education Commission, which offers a range of free learning resources.

Strategies to Improve Your Financial Literacy Skills

Developing financial literacy to improve your personal finances involves learning and practicing a variety of skills related to budgeting, managing and paying off debts, and understanding credit and investment products. Here are several practical strategies to consider.

Create a Budget—Track how much money you receive each month against how much you spend in an Excel sheet, on paper, or with a budgeting app. Your budget should include income (paychecks, investments, alimony), fixed expenses (rent/mortgage payments, utilities, loan payments), discretionary spending (nonessentials such as eating out, shopping, and travel), and savings.

Pay Yourself First—To build savings, this reverse budgeting strategy involves choosing a savings goal (say, a down payment for a home), deciding how much you want to contribute toward it each month, and setting that amount aside before you divvy up the rest of your expenses.

Pay Bills Promptly—Stay on top of monthly bills, making sure that payments consistently arrive on time. Consider taking advantage of automatic debits from a checking account or bill-pay apps and sign up for payment reminders (by email, phone, or text).

Greed vs Generosity: Which Gives a Better Competitive Advantage?

Many people think that in the professional world, selfishness and greed are the characteristics that pay dividends. But the truth is, excepting win-lose situations, that the most successful people in the medium and long term are those who are the most generous in their business and personal lives.

Ambition is a desire to take on more than you can realistically accomplish, to constantly strive for improvement, to grow both personally and professionally, and, of course, the desire to generate more income. However there comes a time when ambition crosses a line, and when that happens it becomes greed. Greed is the desire to chew more than you can eat, a desire that distracts you from realistically possible goals. Greed is wanting to get more than what you have actually earned, obtaining maximum profit at minimum cost, or as an old adage has it: “Grasp all, lose all.”

Today there is an abundance of courses and books on finance, limitless knowledge on hand with a simple click. But to know what is right, to subdue the pirates of greed and to follow your trading plan- this is another story. People who look for easy money invariably find that there is no such thing, paying a heavy price for this lesson. Ego, vanity, and revenge play a part, causing people to fail on their trading accounts. This is one of the factors that explains why people might not fall into the exclusive 10% that ‘win’, and find themselves one of the 90% that lose.

Literature and film are full of greedy and stingy characters, and the moral of films like ‘A Christmas Carol’ or ‘The Wolf of Wall Street’ is always the same: the fate of the greedy is heartbreaking. Their addiction to work means that they live a lonely life, and their search for wealth means that at the end of their lives, they have only the sober memory of their friends from the Stock Exchange.

GIVE AND TAKE

People do not realize that giving without expecting something in return could be a competitive advantage, as well as making ones outlook more positive. Studies have shown that the most successful people are generous. At least this is the affirmation of Adam Grant, a psychologist and professor at Wharton and author of “Give and Take”.

A generous person builds bigger and stronger networks, improves communication with their existing contacts, and also finds it easier to interact with people outside of their core network- this gives them access to new contacts and valuable sources of information. Generous people inspire in others a predisposition, or positive receptivity, to reconnect with them, as well as a greater willingness to collaborate.

Moreover, being a giver encourages persistence because givers are able to enthusiastically motivate people, inspiring confidence, because they are liberal with praise. They create a generally positive environment. Talent is important, but the most important factor in success is persistence. And what’s even more interesting is that being a giver has an energizing effect that increases levels of happiness.

According to Bill Williams, famous trader and writer of “Trading Chaos”, people with a ‘giving’ mindset enjoy more happiness and success. For example, later in his career Bill always traded two accounts, one for himself and one for his charities. The charity account always made more money, even though he traded using the same method with both accounts. In the charity account he never veered from his strategy, while in his own account he would sometimes take a trade based on a “feel”, or get in a trade before the actual signal. This shows us the importance of sticking to a plan, but also the importance of being a ‘giver’.

Giving distracts us from our problems, adds meaning to our lives and helps us feel valued by others. This explains why avidity and egoism are the trader’s worst enemy. Having a benevolent mindset while trading helps the trader to increase performance. Happy people earn more money on average, score higher yields, make better decisions and contribute more to their organizations. Furthermore, traders who are givers are at the top of the most successful trading operations.

THE GREED EFFECT

Focusing only on money results in the ‘greedy effect’, something that all professional traders know. In fact, one of the most common pieces of (rarely followed) advice that newbies receive is to shift their focus from trade results to the trading process, analyzing and following the rules of their trading system. Another suggestion is to start reasoning in pips and ticks instead of dollars. This reduces the greedy mindset and develops a more reliable attitude.

However we can make a further effort to improve our performance by shifting our focus to be more generous. One example is trading for charitable purposes like the aforementioned Bill Williams, another could be simply committing a small part of your monthly or annual profit to microcredits, which promote a world of stability and self-sufficiency, key to overcoming poverty.

Material things can be recovered, but feelings of guilt, helplessness and loneliness cannot be solved with money. If humans would be more understanding of and generous to others, the world would be a very different place. And that is why those who practice generosity, making it part of their daily lives, experience an uplifting of their mental and emotional state, and are generally filled with more satisfaction in their professional and personal lives.

In conclusion, we see that generous people are the most successful in their daily trading performance for the reasons described above. Having a giving mindset helps professionals become part of that exclusive group, the 10% of winners.