There are many economic indicators we can look at to increase our perspective of our country’s current situation. One of those indicators is unemployment.

Unemployment refers to a person who is not working, but is actively seeking employment, yet are unable to find work. The number of people working, or not working, is closely related to how healthy an economy is and if it’s growing at a reasonable rate. When people aren’t working, they lose out on wages. This has a domino effect which effects the entire country. If many families cannot buy goods or services, the businesses that would benefit from those customers lose out on income, which at high rates, leads to layoffs, resulting in higher unemployment. And the cycle continues. This indicates that the economy is producing less than it could.

However, there are shortcomings in using unemployment as an economic indicator. Only people who are actively seeking employment are considered in the data. Those who have given up the job search are not included, so the number of people not working (excluding those that are retired, physically unable, or enlisted military) is actually higher than what the unemployment data shows. In other words, the unemployment rate may show a decrease, but there are actually just as many, if not more able-bodied people not working.

Long story short, using unemployment data to help determine the state of our economy may paint a rosier picture than what currently exists. It's important to look at both changes in the unemployment rate as well as in the labor force participation rate.

It’s that time of year again; time to start the holiday shopping. As you make your lists of who is getting what and where you’re going to shop consider checking local small businesses first. One of the most impactful ways you can support our teetering economy is to shop small and keep your dollars local.

We’ve written before about how small businesses represent over 99% of all U.S. businesses. Nearly half of American employees work for a small business, making up over 33 million businesses. Those are pretty staggering statistics, which is why it is so important to keep those businesses open and thriving.

Small businesses are not just the critical backbone of our economy, they are also the factories in which innovation and creativity are forged. Small businesses can offer unique products or services that might be harder to find in a big box national chain. Small business owners are usually experts in their field and are passionate about what they do. They also tend to offer better customer service. These places help bring character and life to the places we live.

When you shop local, you’re doing more than just helping a business grow, the money they earn supports local jobs and usually stays within the community. Their tax dollars go towards local public services. When it comes to finding donors and support for other organizations, small businesses are usually the primary contributors.

In our modern world of technology, it has become even easier to support your local businesses because most small businesses have a website and support online shopping. The majority also have some sort of social media platform, allowing them to connect with their community and customers. Oftentimes, small businesses will offer special deals or discounts via their social media pages to drive up their online connections.

Here at Yield Financial Advisors, Inc., we enjoy supporting small or locally owned businesses whenever we can. Our newsletter you’re holding is printed by a small business. Our technology service provider is another small business. We bank at local banks, which provide quick and friendly service. With each of these connections comes competitive pricing, exceptional service, and the opportunity to build relationships, and that is a very valuable thing.

Yield Financial Advisors, Inc. works to help small businesses become profitable by offering consulting services, bookkeeping, retirement planning and 401k consulting, tax planning strategies, as well as comprehensive financial planning. Our goal is to assist small businesses in becoming profitable by giving them the tools they need to establish a strong foundation to build on for long term success. By understanding the role of profits in a small business, owners can enjoy a return on their investment. Afterall, earning an income, (salary or wage) from a small business is a return on the labor provided to the business. Earning profits from a business is a return on the investment into that business. They are two completely different earnings.

There is nothing like experiencing the satisfaction of seeing small business owners’ ideas develop into a successful business that provides for their family and contributes to their community. Whether it’s a local bank, service provider, or boutique, these small businesses help make our cities unique and bring value to the places we live. It may take some planning but consider shopping your local small businesses before checking the big retailers this holiday season. And if you know a small business we can help, give us a call.

Photo by Mike Petrucci

Many of you know that besides being a great financial advisor, haha, I also love photography. A friend in 9th grade suggested that I take a photo class, instead of the typical shop classes, (I’d already taken wood shop, drafting, metal shop, print shop, and horticulture class). I really liked all those classes, but I fell in love with photography. And why not, developer ran in my veins!

In 1938, at 30 years old, and after finishing a stint as a prospector, my father enrolled in Trade Tech College in Los Angeles, to study photography. I think the first thing they did was hook him up to an IV with developer, as he too fell in love with photography. He discovered his niche and supported his family as a professional photographer.

The influence of my father and the enjoyment I found in my high school photography classes led me to a lifelong love of photography; it is something that continually captivates me. Being able to capture a moment of splendor, curiosity, or beauty is a wonderful creative experience; sharing those images with people is just plain fun!

On October 14, I was able to capture the annular solar eclipse. I had planned to leave around Friday at noon and drive six hours to west Texas to a spot I had mapped out to take my photos. Taxes got in the way, and I finished my last return and client meeting at 8:00 pm. Rushing home, I packed my gear, and hit the road by 8:50 pm to drive west.

Andrews, Texas is a small town about 45 minutes north of the Midland/Odessa area. I grabbed some breakfast, looked around the town, then drove a few miles west to a place I was sure would be as close as possible to be the direct path of the eclipse.

Sometimes we make a great effort in our work, finish a tax return, answer questions, help someone in need, or just do a kind deed. At times we are immediately blessed, other times the blessings come down the road, but they always come. This was one of those times where I felt immediately blessed; and I am so grateful for the image captured, the time spent to ponder on the magnitude of the sun, moon, and my place on our home planet earth.

Thank you all for being a part of my life and allowing me to share an amazing experience with you. Total trip: 24 hours 30 minutes. And worth every second!