Our Brains Are Not Wired To Multitask

Our brains are wired to work much like a computer processor. That is, we can consciously focus on one and only one thing at a time. To prove it to yourself, try to carry on a phone conversation and compose an email at the same time. You can’t do it! You have to constantly switch between focusing your attention on the phone conversation and writing an email. Otherwise, you will end up with gibberish coming out on both tasks.

“So what?” you may ask. “So long as the penalty for switching between tasks isn’t large, I can get more of the important things I want to get done in a given period of time.” Unfortunately, the penalty for context switching is very large: about 40% according to most research. That is, when you multitask between two or more tasks, you will be about 40% less efficient with your time than if you focused on just one task at a time.

Do This Instead

The reason we all feel the need to multitask is that we feel like we have way too much on our plates to accomplish it all. Better to do a half-assed job on a few of the less-important tasks while getting them all “done” than accomplish just one or two of the most important exceptionally well, the theory goes. This is comparing apples to oranges, though. Generally what will happens is that you will become overwhelmed and begin to cut corners on all of the tasks, even the most important ones, instead of just the less-important tasks. Due to the huge penalties involved in context switching, you can generally get a lot more output from your efforts if you focus on the highest-value tasks first.

Generally, not all tasks on your list will be equally-important. One or two of the tasks will likely be absolutely vital, a few more may be very important but perhaps not urgent, and the rest probably fall into the “nice to have” category. To maximize efficiency, start with the highest-value task and focus only on that task. Do not switch back and forth between the two or three highest-value tasks, since the costs of context switching will kill you. Focus on one and only one task until it is completed with an acceptable level of quality. Then, move on to the next most-important task. This one simple change alone will boost your productivity by between 30-40%, if the research is to be trusted. How big of a raise do you think you could ask for if you got 40% more work done every week?

It may seem that switching between many different tasks can give you the best short of getting all your tasks finished, but the research shows that’s not the case. Over the coming weeks, I’m going to write about a few of my favorite productivity tips, most of which involve not multitasking.

For more on the research about multitasking and context switching, check out the American Psychological Association’s page on Switching Costs.

1. Masters in Accounting is often offered through the business school in traditional universities and in many cases is offered as an area of specialization or major in an MBA program. In some cases the degree at the MBA level is in Accounting and Finance. That’s not a bad bet for work in corporate finance because the MBA who has an accounting and finance degree has a good shot at a management level position that combines cash flow administration with financial planning.
2. Masters in Finance is also almost always a MBA option for specialization. It is also the most popular choice for a MBA major among today’s business school students. In recognition of the fact that the professional ground covered by a graduate in finance is rapidly becoming broader and more complex many business schools have expanded the options for this degree. At New York University’s Stern School of Business MBA students have several majors in the field from which to choose: Corporate Finance, Finance, Financial Instruments & Markets, Financial Systems & Analytics, Quantitative Finance, and International Finance. Three of these options are heavily focused in IT functions in investments, while the others are planning and strategy oriented.
3. Masters in Economics is also often an option for a MBA program but it is also a stand-alone degree in most universities where economics has been an academic discipline for as long or longer than business. In many of the more traditional schools the masters in economics is considered a stepping stone to a PhD in economics and an academic career. As economics professionals have found a niche in corporate finance and in the investment sector, some schools have adapted so that the Master’s in Economics is a terminal degree with business orientation as well. Vanderbilt offers two academic tracks to meet both career options and other schools are expanding their horizons in this field as well.
4. Masters in Statistics is not at first glance a degree that is ideally suited for a business or finance application, but the swift transitions occurring in the manner that investments are made and financial instruments are designed is changing the desired academic backgrounds as well. There is an extraordinary amount of statistical analysis that takes place daily in investment banks and corporations, for purposes of risk analysis and during the development of economic models that are used for planning. Statisticians don’t walk into those environments with the business training that might be ideal, but the analytical skills are not within reach for many business graduates either.
5. Masters in Financial Engineering is a new and somewhat trendy field of study for people interested in cracking the investments market as a career path. The professionals who engage in quantitative analysis or “quants” are a mandatory requirement for a fully staffed investment office. Some MBA graduates argue that getting stuck in quant work can be a deterrent to advancement up the standard career ladder. That may be, but the career ladders in the field of finance are being redesigned too. Financial engineers are the people who not only make the daily analyses based on market data, but also devise the complicated investment packages that have become the principal currency for major investment houses.

Bob Hartzell writes for several websites on education and on the relationship between the transformation of the U.S. economy and the concurrent changes in higher education that are occurring in response to our economic reformation. He has written extensively on the growth of online graduate degree programs in the professional schools, public universities and the private institutions of higher education.

• It provides you with a job at the earliest: College is a bridge between high school and real life; it prepares you for adult responsibilities by providing you with the knowledge and skills you need to survive and succeed in an exceedingly competitive world. So when you choose your college and degree, ensure that they combine to provide you with a job at graduation or soon after. It helps if your grades are high and you have some work experience through internship programs and summer jobs. When you choose a subject you love and have an aptitude for, it’s easier to maintain high grades and perform well.
• It does not send you deep into debt: No fancy education is worth a mountain of debt that you struggle to repay for the rest of your life. Debt is a millstone around your neck that drags you down and makes it impossible to enjoy life and live it to the fullest. So instead of taking out a loan at exorbitant interest rates to go to the best college, choose to study at a school where the tuition costs are low, or work your way through college to avoid graduating with debt. Community college is a good option for those looking to learn a trade without spending a fortune in the pursuit of earning a living.
• It teaches you more than book knowledge: Your classes revolve around your books and professors, but that’s not all that college should teach you. The four years you spend on campus should make you mentally stronger and teach you common sense as well. You must graduate not just with a degree, but with the skills you need to go through life successfully. Work on your communication skills, your body language, your work ethics, your social skills, and most importantly, the ability to manage money and spend it wisely. Adopt good spending habits in college by using your credit card sparingly and paying off your bills every month in full and by living within your means.
• It lays the foundation for higher achievements: Your degree must be acceptable to both employers and other institutions that offer higher education. If it’s not accredited, it’s not worth the paper it is printed on. So choose your college and degree carefully so that it has value in the job market and in other institutions of good repute. If you can use your education as a stepping stone to greater achievements, then it’s worth every dollar you’ve spent on it.

This guest post is contributed by Mark Macaluso, he writes on the topic of Masters in Accounting Programs. He welcomes your comments at his email id: mark.macaluso985<@>gmail<.>com.

Risks

The risks of career change should be apparent, especially if you have a family depending on you for support. After all, you could change careers to find out you cannot earn the same income as you do now. Furthermore, you could find out that you aren’t able to succeed in a new line of work. In short, you could lose a lot by changing careers, so evaluate the risk before taking any action.

1. Lack of experience: A new career means that you are starting over. You have experience in the workplace, but not in your new field. Until you spend some time demonstrating an aptitude for you new career, you could suffer from low earnings.
2. Regret: A major risk associated with changing careers is regret: your new career is not as fulfilling as you thought it would be. In fact, once you move from the frying pan to the fire, you may have renewed appreciation for the frying pan. Similarly, you may have regrets if you stay in your current career never having tried to do anything else.
3. Volatility: Changing careers to a new industry makes you more vulnerable to layoffs or unexpected industry downturns. You could take a fantastic job only to lose it after a short time.
4. Losing friends: If you’ve been in the same career for a long time, chances are that you’ve made a lot of good contacts and some good friends. You will miss associating with them, and you may never build such good relationships again.
5. Moving: Often to get the best opportunities in a new career you will have to move. This potentially means that you have to relocate to a new place with unfamiliar surroundings and people. You could end up all alone.

Rewards

Although the risks of career change are real, only those people who are willing to overcome their fear of those will have the opportunity to reap the rewards from a new career. After all, if changing careers did not have any benefits, you would not even consider it. The following are just a few of the potential benefits of career change.

1. Fulfillment: Studies repeatedly show that most people are unhappy with their work, often casting a dark shadow over life in general. Changing your career gives you the chance to find something that you enjoy doing as you earn a living.
2. Opportunity: If you have been in the same line of work, you could have already advanced as high up in the ranks as you will ever go. Starting a new career gives you the chance to become part of a growing industry where opportunities for personal and career growth are opening up every day.
3. Meeting new people: New professional and personal challenges associated with your new career mean that you get to meet new people and form new relationships. This stimulates your mind, your creativity, and your life. Those in your current field have gotten used to you: it may be time to let others see you shine.
4. Increased self esteem: Staying in the same career, doing the same work tends to erode your sense of self worth. When you make a career change you might find that your knowledge and skills are more valuable than you ever thought.
5. You take charge of your life: Nothing seems to be as debilitating as relying on other people to give you opportunities. By making a career change, you take control of your life. It’s you, not your boss or your company that determines how much money you earn, what responsibilities you have, and what accomplishments you can achieve.

The choice is laid out in front of you concerning changing careers: risk vs. reward. The decision to change careers is one that only you can make. Do not make it until you personally weigh all the risks and the rewards.

Written by Tom Becker, a personal finance blogger for MoneyChoices.com.au. Tom also reviews retirement savings accounts and other investment vehicles that keep your money safe.

Causes of Bankruptcy

Bankruptcy is an indication of the overall financial picture of a person’s life.  The person’s current income is obviously not enough to pay the current debt.  But, the person must have had sufficient income to qualify for the debt at one time, so what happened?  A person that finds themselves in this predicament usually falls into one of three categories:

• (a)they piled up too much debt without a solid plan
• (b)they suffered a decrease in income or
• (c)they were victim of significant medical bills

Personal Perspective

Because of the negative perception that most people have towards bankruptcy, people feel that others will look down upon them if the news gets out about their situation.  People are afraid that they will be viewed as a financially irresponsible person.  And if they cannot control their finances, how can they control anything else?

True Public Perspective

Most any Minnesota bankruptcy attorney will tell you that this self examination is completely incorrect.  The majority of the general public actually feels a little sympathy towards people that have filed bankruptcy.  In addition, most people would like to see those individuals find a way to reverse their situation and get out of the bankruptcy. Most people have faced a financial hardship once or twice in their life and they understand that some situations are just too hard to overcome.

What about their Job?

Federal bankruptcy law, as well as Minneapolis bankruptcy law, states that no one can be fired simply because they filed bankruptcy.  People who use bankruptcy to protect themselves from further action by creditors are in a sense using the law for protection.  Therefore, the law is on their side in protecting their job.

Most employers that have operated business for any length of time has most likely witnessed at least a couple of employee bankruptcies.  This has become a part of life for most manager and owners and very few of them are truly shocked by it.  The most important thing to remember is that people can lose their jobs if they do not perform their duties properly, but not for simply filing bankruptcy.

• A debt (or mortgage) on your home is good because your home accrues in value as the years go by. However, if there comes a time when your outstanding debt is more than the value of your home (it happens in some markets), then it’s time to think of a short sale to salvage what you can.
• A student loan is good because it earns you a college education. However, unless you’re able to find a good job (or take advantage of a loan forgiveness job program) and repay your debt, it is going to hang over your head for the rest of your life.
• A debt on your car is also ok if you haven’t spent thousands of dollars to buy a fuel-guzzling monstrosity – you don’t want to have to shell out for gallons of fuel every month even as you’re trying to pay off your loan.
• Credit card debt is bad, unless you pay it off in full every month. Remember, it is important to pay your bill IN FULL every month because if you don’t, interest accrues at a very high rate and you end up paying much, much more than you’ve borrowed. The key to using credit cards wisely is to use them regularly so that you incur debt, and then pay them off in full (not just the minimum balance) so that your credit scores soar and your credit history looks good.
• Avoid using your credit card for frivolous purchases when you know you cannot pay off your bill that month.
• Borrowing cash using your credit card is a definite no-no since you have to pay an exorbitant interest.
• Pay all your bills on time – the longer you delay, the higher the interest you’re charged. If you’re the forgetful kind, set up an automatic debit facility with your bank so that your debts are paid in full every month with money from your account.
• If you have money only to pay off a few debts, finish your credit card debt first or the one with the highest interest on it. This minimizes the amount you have to pay back.
• Don’t borrow money to pay off a debt without thinking it through – in some cases, this is a good idea if the second debt is cheaper (lower interest rate) than the first.
• And finally, before you turn over your debts to a professional debt management company, remember that this move is going to cost you money too. So if you haven’t prevented debt from piling up, at least try and make sense of it and deal with your creditors on your own.

About The Author: This guest post is contributed by Omar Adams, he writes on the topic of online accounting degrees. He welcomes your comments at his email id: omaradams47@gmail.com.

On the surface, going back to school can seem to be a rather unattractive decision. For one thing, college is the epitome of delayed gratification. In other words, successfully completing college involves years of hard work up front, and no reward until the very end. Many people get hung up thinking about all the tedious hours spent studying, taking tests, creating projects, and attending class every day. When considered in total, many adults feel that it just isn’t worth the investment of their time to limit to go through it all, all the while constraining their working hours and making less money, just to earn a piece of paper that says they completed the requirements.

On the contrary, research suggests that furthering your education is perhaps the best investment you can make in yourself. The U.S. Bureau of Labor Statistics shows weekly income increasing by orders of magnitude by workers’ level of education. In addition to an increased earning potential, having a degree can help you get approved for loans and investments. Today we explore why going back to school is one of the best investments you can make.

Associate Degrees

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According to 1997 data form the U.S. Bureau of Labor Statistics, those who graduated high school but never went onto college earn an average of $595.00/week. In contrast, those who possess an Associate degree (a two-year college degree) saw a significant bump, earning around $729.00/month. This data demonstrates that having the lowest level college degree one can attain has to potential to increase a worker’s yearly income nearly $8,000.00 compared to just having a diploma. Consider that many associate degree programs cost less than $10,000 for the entire two year program. This means that once you graduate you can pay off your entire tuition bill in a year’s time using only the extra money you can now earn.

Bachelor’s Degrees

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The hump in earning potential from high school to Associate level is nothing to shake a stick at, but consider what the data reveals about Bachelor’s degree holders. According to the same 1997 statistics, those who earned a four-year Bachelor’s degree in any field took home an average of $962.00/week. This represents a yearly increase of almost $19,000 over high school diploma holders. Though bachelor’s degrees are significantly more expensive than an Associate’s, the fact that workers will receive such an increase in average yearly income makes the extra time and money spent an invaluable investment.

Master’s Degrees

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Maybe you’re the sort of person who already has their Bachelors degree and works a decently paying job, but wonders what sort of benefits they might receive if they went back to earn their Master’s degree. not surprisingly, the income increase from the four year to six year level is quite significant, as is the array of new job opportunities that you could qualify for. While Bachelor’s students spend their time gaining a broad understanding of their field, Master’s students specialize in one acute area of the field, such as molecular biology instead of just “biology,” or clinical psychology instead of just, “psychology.” Perhaps this is why Master’s degree holders earn an average of $1,140.00/week (an almost $9,000/year increase) and are significantly more qualified to fulfill higher-level careers than Bachelor’s level workers.

Professional and PhD Degrees

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A PhD (or doctoral) degree is the highest academic accolade one can achieve. A common misconception about doctoral degrees is that, since they take the longest to earn, they must cost the most money. This is actually false, because most schools actually pay their PhD students to get their degree at their college. This means that your student loans end with your bachelor’s degree, and the only investment you must then make is the time and dedication it takes to earn your PhD. For no additional money, your potential rise in weekly income is breathtaking over the Bachelor’s level. According the 1997 data set, workers with a PhD earn an average of $1,441/week. This means that for no additional money, you stand to earn almost $25,000/ year more than if you remained at the four year level. Clearly, if you possess the academic muscle, this is perhaps the greatest single investment of your time you can make.

Entrepreneurial Benefit

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Some people avoid going back to college because they are planning on starting a business and don’t believe they need a college degree to succeed on their own. While it might be technically true that going into business does not necessarily require a degree, having a formal education as one of your credentials can prove to be a serious asset to you in the future. For example, if you approach an investor for seed capital, more often than not you will be asked for your qualifications to run the business you are trying to start. Having an MBA or similar degree to point to will make you look much more credible in their eyes, especially when a large investment is on the table. This also holds true for banks deciding whether or not to approve a business loan to a young start-up. Your degree is a statement of your discipline and commitment to your craft, and having one will assist even the most self-made of men at various times in their lives.

About the Author: Allie Gray is an Online Marketing Manager for Rasmussen College. In her position, she drives online promotion and content production for Rasmussen’s School of Business, School of Technology and Design, and Nursing School, and fronts Rasmussen College’s article database with topics ranging from career services to student interest stories. Allie has a Bachelor’s degree in Journalism from the University of Minnesota.

What Exactly Does “Full Time” Mean?

When you’re an hourly workers, the distinction is easy:  by law, 40 hours is considered full-time employment and your employer has to pay you overtime if you work more than 40 hours per week.  So while you may be asked or even required to work more than 40 hours per week, you at least get directly compensated for it.  Many people wouldn’t mind working an extra hour or two per day for time-and-a-half.

Full-time salaried employees, on the other hand, don’t have it so easy.  Being an “exempt” employee means you aren’t eligible for overtime pay (at least in the U.S.).  The prevailing theory is that salaried employees are paid to do a job and should work as many hours as necessary to get it done.  Many if not most Americans buy this garbage hook, line, and sinker.  They waste their youth in the office, neglecting their friends and family in pursuit of the almighty dollar.  The irony, of course, is that the more hours these workaholics work, the lower their hourly pay.  I have personally worked with highly-paid software engineers and managers who, by virtue of their 60 hour work weeks, probably get paid something like minimum wage.

The flaw in the above logic is obvious if you think about it:  just what is meant by “until the job is done?”  If your office is at all like 99.99999999% of the offices in this country, the “job” is never done.  There is an endless stream of work to do.  If you finish today’s task by lunch, it doesn’t mean you get to go home after lunch.  To the contrary, there will always be a brand-new task to get started on.  Does that mean you are ethically obligated to work 24 hours per day (remember, the “job” is never actually complete)?  Of course not.  And yet that’s exactly what you are saying when you say salaried employees should work as many hours as necessary to “get the job done.”  What employers really mean when they say this is that they want you to work more hours for the same amount of pay.  They call it “work ethic.”  I call it inefficient mediocrity.

Full Time Means 40 Hours.  Period.

As a professional, I have to work at a pace that is sustainable for me.  Sure, I could kill myself working 60 hour weeks for what amounts to minimum wage to get tons of work done, but what’s the point?  No job is worth my health, my sanity, or my social life.  And even were I inclined to work  that much overtime, I wouldn’t be able to maintain such a pace forever.  Eventually I’d have a breakdown, and that wouldn’t benefit anybody.

All this isn’t to say I’m completely against working overtime occasionally.  If there’s an important project that requires my attention, I’m asked nicely, and I’m rewarded for going the extra mile (be it via comp time, a raise, or at least a thank you) I am more than willing to work the occasional Saturday.  It’s when working late nights becomes expected by my employer that it becomes a problem.

Do Workaholics Get Promotions?

It’s often said you have to work hard to get ahead.  Those first to arrive in the morning and last to leave no doubt believe what they’re doing will get them a promotion, a raise, or at least a hefty bonus.  Unfortunately, I’ve never seen this actually happen in the real world.  I have certainly seen co-workers who believe their promotions were the result of working so much overtime, but everybody else in the office was perfectly aware these individuals would have been promoted even if they worked only 35 hours per week.  In the end, it’s how efficient you are with the time you do spend at work that counts, not the quantity of time.

Do you think working more than 40 hours is an effective way of getting a promotion?  How many hours do you typically work?

Would You Retake An Old Job?

Would you retake an old job if offered?  I honestly can’t say that I would unless it was…

1. The best job I’d ever had, bar none or
2. I had no other prospects on the horizon and was running out of money

Obviously, if you have a mortgage to pay and mouths to feed you may not have any other choice in this economy than to take whatever you can get.  But I’ve always heard going back to an old employer amounts to career suicide, if you’re not careful.

Why I Would Say No

• Career Suicide – As I mentioned previously, going back to an old employer after being let go or quitting probably gives a negative impression of yourself to prospective employers.  Hiring managers might get the impression you are going back because you can’t find anything else.  In other words, that you’re unemployable for some reason.
• Strained Relationships With Coworkers – Often times, feelings are hurt whenever somebody is let go.  Or rumors might circulate that you were “fired” rather than “laid off.”  Or maybe losing your job is just one of those events that changes the way things are, never to be the same.  Or, depending on how you were let go, coming back could be uncomfortable or awkward for everybody.  Feelings of jealousy, guilt, or regret can make for a hellish work environment.
• You Risk Being Laid Off Again – Let’s face it, by definition companies who lay off workers have shown poor judgment at some point in the past.  Sure, maybe it was something nobody could have possibly foreseen, but that doesn’t change the fact that a company managing to get itself into enough financial trouble to have to lay some of its employees off probably isn’t in the best financial shape, even though it is rehiring.  Sometimes, lightning does strike twice.
• It Just Wouldn’t Be The Same – I’d just be going through the motions waiting for a better opportunity to come along, and that’s not fair to my employer or myself.  Chance are, the 10 signs it’s time for a new job would rear its head pretty quickly because any bonds of loyalty would already be broken.

What would you say?

Unfortunately, companies are in the business of making money, not rewarding top-performing employees.  Unless giving you a promotion will directly increase your employer’s profits, you will not be promoted regardless of how well you have performed at your current post.  Unfortunately, there are quite a few good reasons why it’s usually in your boss’s best interests to keep you where you are rather than promote you.  Knowing what these reasons are will better prepare you to mitigate their impact and snag that promotion.

Companies Promote People For Their Own Benefit, Not Yours

Despite what people like to believe, your worth to your employer is proportional to your ability to directly (or indirectly) increase your company’s profits.  Your value as an employee has absolutely nothing to do with how well you do your job,  but how much your position contributes to the bottom line.  It could very well be that once you’ve reached an adequate level of performance, your contribute very little extra to the company’s profits.  Thus, you are worth the same to the company even if you do your job twice as well.

That doesn’t mean you can rest on your laurels, however, since you have no way of knowing what that minimum level of acceptable performance is.  The point is, how well you do your job is likely to be largely irrelevant to your employer once your performance has reached a certain threshold (unless you work in a very small company) and is therefore unlikely  to help you get promoted in the future.

Promoting You Is A Risky Proposition

The most common reason hard-working employees get over-looked time and again when it comes time to fill a new position is that the business perceives promoting their best employees to be a risky move.  When a company promotes somebody from within, they have to fill two positions:  the new position (which you will hopefully get) and your old position.  Since you were already doing a good job at your last position, promoting you actually leads to extra risk for the business because they now have the risk of filling your old position with somebody who doesn’t do nearly as good a job as you did.

Additionally, doing well in an old position doesn’t mean you’ll do as well at your new position.  The skills that allowed you to succeed before may not apply to the new position or the work environment may be different enough to seriously limit your effectiveness.  If it doesn’t work out, your employer now potentially has two under-performing employees rather than just one.  Had they hired an outsider to fill the new job, at least they could count on you to continue performing well at your current position, even if the new guy doesn’t work out.  Thus, the hiring risk to the business is essentially cut in half by hiring an outsider.

The Future Is What Matters, Not Your Past

The main reason you haven’t gotten that promotion you so covet is that in the grand scheme of things, your past accomplishments are pretty much irrelevant.  The only thing that matters, and the only thing companies consider when making decisions about who to promote, is how you’re likely to perform in the future.  All the dazzling past accomplishments in the world aren’t going to get you promoted if the company isn’t certain you will be just as effective in the future at your new position.

So push that over-grown sense of entitlement to the back of your mind and get back to work.  You’ll never earn a promotion through hard work.  Your only hope is to make your superiors aware of how much money you would make them if only they would promote you.  Past accomplishments are certainly a part of that, but you can’t lean on them too much.  After all, the first question out of your boss’s mouth when you ask for a promotion is likely to be “…what have you done for me lately?”