We’ve seen our economy ebb and flow over the last few years. Reports come out and economists and financial experts weigh in on the data. Do you know where they are getting their information from? Do you know what to look for in the reports so you can better understand what’s happening and what could happen in our economy?

Analysts use economic indicators to interpret current and future investment possibilities as well as the overall health of the economy. Economic indicators are pieces of data that are used to interpret the growth of different sectors as well as broad economic direction. They help investors uncover new investment opportunities so they can update their portfolios, and possibly avoid some investment pitfalls.

Here are the broad indicators that give us a picture of what the economy is doing and possibly could do in the near future.

Leading indicators point to future changes in the economy. They are used for short-term predictions of economic developments because they typically change before the economy does. Some examples of leading indicators are Gross Output (GO), GDP, CPI, and consumer spending.

Lagging Indicators generally come after the economy has changed. These indicators are most helpful when looking to confirm specific patterns. These are then used to make predictions based on the patterns that emerge. These indicators are not used to directly predict economic change. Some examples of lagging indicators are unemployment rate, corporate profits, and labor costs per unit of output.

Coincident Indicators provide useful information about the current state of the economy because they happen at the same time as the changes they signal. Some examples of coincident indicators are industrial production, trade sales volume, and personal income.

Photo by: Markus Spiske

Gifts for family and friends, Christmas cards, food and parties, there always seems to be something more to spend money on during the Christmas season. According to the National Retail Federation, the average American spends about $1,000 on Christmas each year, about 71% of that goes to buy gifts. For the last decade, U.S. Christmas spending has increased year-over-year. If you’re not managing your cashflow during the holiday spending spree, you could wind up in a Christmas cash flow crunch.

While cash crunch is usually used in reference to a business, we can experience the same thing in our own personal spending. When there is more money going out than is coming in you get a cash flow crunch. The best way to avoid this is to have a strategy in place before you feel the crunch. A big part of that is creating a budget or a spending plan. It’s important to tell your money what to do and assign it to a particular task. For example: X amount of dollars goes to paying yourself first in terms of savings and/or investing, then an amount for specific bills, while other parts of your income can be assigned to gifts or entertainment.

Remember that a budget is only part of a financial strategy. Your budget is like a roadmap for your money, an easy way to know when and when not to spend. To truly avoid the cash flow crunch you need more. Start by setting clear goals for what you want to achieve with your money. Set a deadline for those goals and decide what choices need to be made to succeed. An effective strategy will position you on the playing field in a way that you can win. It’s all about looking to the future and generating results.

Your strategy will be unique to you and your goals, but some points to think about include things like reducing your spending, deciding what parts of your spending lifestyle are needs, and which can be paused or done away with. Embrace the age-old question- what are my needs vs. my wants? This is a very emotional question, which makes money decisions emotional. When we control our emotions about money, we can control our money better. The answers to the needs vs. wants questions will be different for everyone. What may be practical to one family may seem lavish to another. It’s important not to judge. However, we all have the same basic needs: Food, Shelter, and Clothing. Beyond that anything else might be up for discussion.

The most important part of your strategy needs to be taking action. You can plan and strategize until you’re blue in the face, but unless you act and put that plan into motion, you will not see any results. You may never achieve your goals, and you may never win that end prize of a comfortable retirement. This Christmas avoid the cash flow crunch and give yourself the gift of financial freedom.

photo: Heidi Fin

December swoops in in a rush, bringing thoughts of jingle bells, twinkle lights, Christmas shopping, and parties. The stores are decked in signs and banners advertising holiday sales, the latest gadgets, and trending must-haves. In the hustle and bustle of Commercial Christmas it does one good to slow down and remember the most meaningful part of Christmas - giving.

It can sometimes be difficult to know what to give, especially to those who have little. This year, consider an option that makes giving to those in need as easy as buying a candy bar from a vending machine.

Light the World Giving Machines made their debut in 2017. Since then, they have raised more than $22 million in donations for both local and global charities. Their purpose, to make giving instant, memorable, and fun. They are set up exactly like a vending machine. You select from the listed items, swipe a credit or debit card, and a card representing your gift drops into the receiving bin, allowing you to see the donations pile up.

This year, a mobile Giving Machine will make its way through Texas, arriving in the North Texas area December fifth. The first stop will be in Fort Worth in Sundance Square. From there it will travel to Grapevine, and then McKinney. Visitors to the Giving Machines can purchase items for people in need both in Texas and around the world.

The locations and dates are:

Sundance Square, Fort Worth Dec. 5-7

Grapevine Dec. 9-17

Downtown McKinney Dec. 19– Jan. 1

Giving Machines partner with eight local charities as well as two global ones. Every penny of your donation goes to the item you select and is delivered by the participating charitable organizations. This is made possible because The Church of Jesus Christ of Latter-day Saints covers all the operating costs of each Giving Machine, including credit/debit card fees, making your donation even more impactful.

If you are not living in an area where Giving Machines will be set up, you can still donate online at GivingMachine.org. Your donations to the Giving Machines are tax deductible; you can get a receipt by text or email.

This Christmas take a moment, whether at a Giving Machine or by some other means, to bring light into someone’s life who may feel as though they are in darkness. Share the joy and love of the holiday.

For more information and to see a list of participating charities go to givingmachine.org

From all of us at Yield Financial, we hope that you and your family have a wonderful Christmas and a Happy New year.