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How Russia Has Spent A Decade Crumbling Online Freedoms


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How Russia has spent a decade crumbling online freedoms


How Russia has spent a decade crumbling online freedoms

Aleksandr Litreev was on a way to a business meeting last February when his life changed forever. En route to a hotel in Yakaterinburg, a day's drive east of Moscow, Litreev was pulled over by police. When they asked him to hand over his phone, the then-24-year-old knew it was no routine traffic stop. 

"They took me to a police station," Litreev recalls, "and magically some drugs appear." Litreev said he was arrested by around 10 armed policemen, beaten into confessing to ecstasy possession, and then detained for a month. He managed to flee to Estonia after being released into house arrest. 

Litreev is a member of Russia's liberal opposition. Rather than rousing people to the ballot box, he builds internet tools that help everyday Russians fight against an increasingly controlling state. As part of the tightest squeeze on freedoms in Russia this century, critical online media publications have been labeled foreign agents, and platforms like Twitter and Facebook are being pressured to purge their platforms of content the Kremlin disapproves of. 

With Russia's parliamentary elections running on Sept. 17 through Sept. 19, the Kremlin has stepped up censorship. It's demanded keywords associated with the opposition be blocked from Google and Yandex, the domestic search giant, and that Google and Apple kick an opposition-made app from their app stores.

Litreev has been fighting back for years, creating an app that sends lawyers to defend arrested protesters and joining the "digital resistance" that countered the government's attempt to block encrypted-messenger Telegram.

"If I go back to Russia now, I will get something like lifetime imprisonment," Litreev said. "Not gonna happen." 

Before fleeing to Estonia, Litreev also worked with Alexei Navalny, who, for the last 10 years, has been the face of Russia's opposition to President Vladimir Putin. Navalny was poisoned by Russian spies in August 2020 and has since been jailed. Navalny's case shows how the Kremlin has lost any of the patience it once had: He was tolerated for nearly a decade -- as a popular blogger, investigative journalist and later an opposition politician -- before authorities attempted to eliminate him altogether.

"The things that are happening now have never happened before," said Litreev, explaining that authorities poisoning an opposition candidate would have been inconceivable as recently as 2017. "And now we're here." 

Aleksandr Litreev, a software developer who fled to to Estona amid Russia's opposition crackdown.

Aleksandr Litreev

Digital wargames 

In 2017, Litreev made his first significant venture into opposition politics. A YouTube expose from Navalny alleged that then-Prime Minister Dmitry Medvedev had embezzled over $1.2 billion, sparking protests in Moscow and St. Petersburg that turned into a general rebuke of widespread corruption and political repression.

Litreev's contribution was an app called Red Button. If protesters thought they were at risk of arrest, they could open the app and press the big red button it presented. That would automatically call a lawyer, who also receives the protester's emergency contact details and a GPS signal of their location.

"It's basically Uber, but for a lawyer," Litreev said. It was used extensively by demonstrators at the time, which got the attention of Kremlin authorities. "That's the point where pressure on me started," he added.

Litreev, then 21 and fresh out of university, was motivated to join the opposition movement as he watched the Kremlin ratchet up internet restrictions. A 2014 law allowed the telecommunications regulator, Roskomnadzor, to block access to online media that called for "unsanctioned mass public events." In 2016, Putin signed a bill requiring telecommunications companies to store their customers' text messages and phone calls for up to six months. 

The law was used as a pretext to ban Telegram, a platform created by eccentric Russian-born developer Pavel Durov that doubles as an instant messenger and a social media platform. (Durov is now based in Dubai.) It allows for encrypted messages between people, like WhatsApp, but also for public figures and groups to create "channels" that can have millions of followers. Russian authorities wanted control over Telegram, and stopping them became Litreev's next project.

Thousands rallied for "internet freedom" in 2018 after Roskomnadzor banned Telegram. Many protested by bringing paper planes, Telegram's symbol.

Mikhail Tereshchenko/Getty

In 2018, the Kremlin ordered Durov to hand over keys that would allow the FSB, the successor to the Soviet KGB, to unscramble the app's encrypted messages. Roskomnadzor's stated goal was to fight terrorist attacks, like a 2017 train bombing in St. Petersburg, which it claimed were spreading thanks to Telegram and apps like it. Durov refused, calling the request both unconstitutional and technically untenable. What followed was a game of hide-and-seek that lasted for two years.

Roskomnadzor banned Telegram in April 2018, pulling down the app's servers. Scores of Russian internet users -- dubbed the Digital Resistance -- countered by hosting Telegram on proxy servers, which Roskomnadzor found and banned too. For his part, Litreev helped create software that deployed millions of proxy servers at once, making it impossible for Russian authorities to manually pull them down individually.

"They got tired of banning IP address by IP address, so they started to ban whole subnetworks, ranges of IP addresses," he said. "At some point, when we got our service hosted on Amazon and on Google Cloud, they accidentally banned a huge subnet which belongs to Google."

Those attempts to ban Telegram were unsuccessful. Not only did the service remain accessible, its Russian user base actually grew. Meanwhile, with authorities hastily banning up to 19 million IP addresses, Google and Amazon services were briefly unusable throughout Russia.

Roskomnadzor had a choice: either block a huge range of IP addresses and risk more catastrophic blackouts, or rescind the ban on Telegram. "It was a fight for all or nothing," Litreev said.

After two years, Roskomnadzor relented, lifting its Telegram ban last June on the grounds that the company would help it with terrorism inquiries in the future. The Digital Resistance won this battle, the latest in a war that had been going on since 2012. 

Dmitry Medvedev and Vladimir Putin in 2012. 

Natalia Kolesnikova/Getty

The first ruling 

Russia is often grouped with China as a troublesome autocracy. A common misconception related to this comparison is that Russia has always had a fiercely censored internet. But unlike China's internet, which was built from the ground up not to rely on Western companies or users, Russia's internet largely grew freely from the mid-'90s. 

That began to change in 2012, when Putin became president for the second time.

Much like the US, Russian presidents were bound by the constitution to serve no more than two consecutive four-year terms. So in 2008, when Putin swapped places with Dmitry Medvedev, becoming prime minister while Medvedev assumed the presidency, many suspected it was a ploy to circumvent constitutional limits. Those suspicions were confirmed when he announced his intention to run as president again in 2011.

When Putin's United Russia party retained a majority in the parliamentary elections two months later -- elections local monitors and the EU said were fraudulent -- protests erupted. Tens of thousands demanded free elections and the release of political prisoners. But what concerned the Kremlin wasn't the demonstrators, but how they managed to organize themselves. These protests were the biggest the country had seen since the '90s, and they were powered by social media.

"The driving force back then was the internet -- social media, Facebook and Twitter," said Andrei Soldatov, a journalist and co-author of The Red Web, a book that details Russia's tightening grip on internet freedoms. "That was the moment the Kremlin started paying attention to this new threat, and it was absolutely clear that it was the big thing for years to come."

The "Snow Revolution" protests in Moscow, 2011.

Epsilon/Getty

Online freedoms began unraveling a month after Putin took office in 2012. The Russian Duma (the lower house of the Federal Assembly) started drafting an internet restriction bill that lawmakers claimed was necessary to protect minors from child sexual abuse material, online drug markets and content that encouraged self harm. In practice, it allowed government authorities to create an internet blacklist.

Roskomnadzor now had legal cover to pull down websites it didn't like. Today, the internet in Russia is still markedly more open than it is in countries like China, Egypt and Vietnam. But Russia's strategy of censorship is more subtle, focused less on suppressing speech than on oppressing competition.

"The idea is not to prevent you from getting information," Soldatov said. "The idea is to discourage you from participating in political activities of any kind, online or offline." 

The Kremlin's aversion to political opposition explains why political protests are often followed by a tightening of controls. The Moscow demonstrations of 2011 and 2012 led to the first internet restriction bill, and Telegram was targeted in 2018 after protests were organized on the platform. 

Then, in 2019, the opposition began translating online engagement into electoral victories.

A new era

Activists, journalists and opposition politicians had proven adept at maneuvering around the digital barriers the Kremlin had been throwing up since 2012. Navalny continued to use his prominent online platform to trouble authorities. Though demonized on state TV, many of his YouTube documentaries on shadowy Kremlin activities racked up hundreds of millions of views. Older Russians who regularly watched Russian television thought Navalny was a menace. Many middle-class, internet-savvy Russians, however, were receptive to his cause.

Though the Kremlin punished Navalny in various ways, convicting him on trumped-up fraud charges and barring him from running for office, authorities showed some restraint in suppressing his movement.

"Navalny was tolerated for a decade," said William Partlett, a professor at Melbourne Law School who researches post-Soviet societies and is authoring a book on Navalny. "He was exposing high-level corruption among very important, powerful people in the inner circle of the Kremlin. And he was allowed to do that, and I think the idea was, 'we can manage this guy.'" 

That changed in 2019. Navalny, unable to run for Moscow city council himself, encouraged his followers to adopt the "smart voting" doctrine. It meant voting for anyone other than the ruling United Russia party, be they liberals, avowed communists or hardcore nationalists. The plan worked: The "systemic opposition" won 20 of Moscow's 45 seats, reducing the United Russia Party's majority from 38 to 25.

The same system was used successfully in regional elections, ousting three United Russia governors. In a world where freedom of expression is fine up until the point where it infringes on Kremlin control, this was all unacceptable. Navalny's opposition movement was powered by online platforms, from Telegram to Twitter, and now it was producing tangible offline results. 

"Now the question for Putin becomes, is the internet manageable?" Partlett said.

The Kremlin cracked down hard. An online libel law was enacted last December, allowing sites to be blocked and people to be jailed for "defaming" public figures. Specific activists and journalists have been targeted: one journalist was jailed for 25 days for retweeting a photo that carried the date and time of a planned protest, while a video of police violently interrogating blogger Gennady Shulga was leaked by the police themselves, Shulga said, "to show people what the authorities can do." 

Navalny's treatment played out in front of the world. He was poisoned in an airport in August 2020, then flown to Berlin, where he recuperated. After returning to Russia, he was immediately imprisoned. Meanwhile, Putin amended the constitution in April to allow him to rule as president until 2036. 

Alexei Navalny, the face of Russia's liberal opposition, is currently jailed in Russia. 

Dmitry Serebryakov/Getty

Taking on big tech

Litreev talks about his exploits like a nimble David outmaneuvering a lumbering, sluggish Goliath. He knows the battle will be perilous but expects he and his fellow activists will ultimately prevail. 

"The level of expertise and level of professionalism on the government side is much lower than our side," he said.

Litreev points to a spat between Twitter and Kremlin as evidence. In March, Roskomnadzor demanded Twitter take down thousands of tweets dating back to 2017 that encouraged illegal activity -- which includes child porn, drug markets and, of course, news stories related to opposition candidates. To motivate Twitter to fulfill the request, the telecoms regulator throttled Twitter's speed for months. 

But, in a flashback to the Roskomnadzor inadvertently blocking Google amid a clumsy attempt to ban Telegram, sites like Reddit.com and Microsoft.com went down too. People realized that authorities had targeted the "t.co" link-shortening formation Twitter uses, which clobbered any website that ended with the letter "t."

It was a conspicuous fumble on the part of Roskomnadzor, but authorities did manage to isolate and slow down Twitter. The initial missteps masked the use of a concerning new suite of powers that had been signed into law in 2019, called "the sovereign internet," or RuNet. 

The law requires ISPs to connect a new range of state hardware to internet exchange points. These "big red boxes" all direct to a control center in Moscow and allow the Kremlin to manage the flow of traffic from one region of the country to another. The system has been called a "digital Iron Curtain," akin to China's Great Firewall that separates its internet from the rest of the world. 

Soldatov says this comparison is inaccurate. The Kremlin isn't interested in isolating itself from the rest of the internet, he says, since that would prove economically ruinous. Rather, it's a tool to control the flow of information from one region of the country to the next.

"The sovereign internet was never about the West. It's about what's going on inside the country," he said. "The most sensitive content is generated inside the country."

Moscovites protesting the jailing of Navalny in April.

Anadolu Agency/Getty

Roskomnadzor was able to pair the new sovereign internet hardware with existing data surveillance technology to selectively slow Twitter traffic. In the future, the Kremlin could use the same technology to, for example, throttle certain apps to prevent livestreams from a protest in Moscow from reaching other parts of the country. 

It was the government's first known experiment with its newest online tools -- and it worked.

Twitter has removed over 6,000 tweets, according to Roskomnadzor. In the months since, Russian authorities have demanded Facebook take down content, fined Google $81,000 for not taking down content, and told Facebook and Twitter to store all data of Russian users within the country. On Aug. 26, Twitter and Facebook were both fined for not storing such data quickly enough.

Facebook, Google and Twitter declined to comment. Roskomnadzor was contacted but didn't respond. 

Just as the Kremlin pressures Facebook, Google and Twitter, it fosters local substitutes like RuTube, a YouTube alternative owned by the state gas company. Law requires Android phones to come preloaded with 16 Russian-made apps, including the VK social media app and the Yandex search engine, while Apple is required to prompt Russians to download the apps during the setup process of new iPhones. It's part of a plan meant to better allow authorities to control online platforms so that anti-Kremlin content can't go viral. 

"The tools the Russian government uses are evolving with time. They are much more advanced if we compare them to, say, 2018," Litreev acknowledged. "But modern problems require modern solutions." 

The modern problems

Litreev's latest project is Solar Labs, a decentralized VPN that's based on blockchain and incentivized with cryptocurrency. The Solar Labs platform will allow people around the world to host their own VPN servers, for which they'll be paid with Solar Labs cryptocurrency tokens. If enough people from a variety of countries host their own VPN servers, it'll be impossible for all servers to be taken down at once. 

"Even if the government will do whatever it takes to block our service, they will not succeed unless they just shut the whole internet for the whole country," he said. Solar Labs is designed to be useful not just for Russians, but also Iranians, Chinese and Belarussians, all of whom face strict internet censorship. 

Litreev says the Kremlin's crackdowns on activists, journalists and dissidents are acts of hysteria. The more extreme the measure, the more desperation it reflects. 

And the measures have gotten extreme. It's not just in Russia, either. In May, Belarus' ruler, who's closely aligned with Putin, used military force to ground a RyanAir plane midflight to detain a dissident journalist. The whole region's rules are being rewritten.

Litreev wants to go home to see old faces and places, but says people like him need to work to create a safe Russia. He hopes that Solar Labs' VPN, which launches in September, will be part of that process. Meanwhile, Litreev feels safe in Estonia -- though he makes sure any flights he takes avoid both Russian and Belarusian airspace. 

Soldatov, living in London, is less hopeful. He said he was optimistic five years ago, when he co-authored The Red Web, but that the events since then have sapped his confidence.

"We use this word, 'unprecedented,'" he said. "The problem when something is unprecedented is you cannot calculate your risks, because you do not know where they are going to stop." 


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Hey, Gen Z: Here's What Millennials Say About Riding Out A Recession


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Hey, Gen Z: Here's What Millennials Say About Riding Out a Recession


Hey, Gen Z: Here's What Millennials Say About Riding Out a Recession

This story is part of Recession Help Desk, CNET's coverage of how to make smart money moves in an uncertain economy.

I'm officially one year away from graduating college, and I have no idea what comes next. A job, hopefully. Grad school, maybe? For me, college has been about preparing to enter the workforce, armed with all the skills I need to succeed. Now that it's time to start actually applying for jobs and planning for long-term financial stability, it's pretty scary.

Entering the job market comes with endless challenges, even in a healthy economy. And regardless of the debate over whether we're in an official recession, the past few months have demonstrated how difficult it can be to remain financially stable during a shaky economy. Inflation is at a historic high, and wages are not keeping up with the cost of living. Higher interest rates are also making homes, cars and other big-ticket items more expensive and inaccessible.

And that makes the idea of entering the job market all the more terrifying.

Older generations who have already lived through recessions may be more prepared. Millennials, those born roughly between 1981 and 1996, are feeling some déjà vu. Many in this cohort entered the job market just as the Great Recession was taking place, and the years that followed altered the course of their career and financial trajectory in major ways. 

I caught up with five millennials who completed their undergraduate studies between late 2007 and 2009 and managed to navigate the last economic downturn. I wanted to learn how they were impacted, from layoffs and tightening budgets to career pivots, and what skills they developed that were most important for staying afloat. Each had a unique experience that affected their approach to finances today. Now, as they reflect on that time, they see the hard-won lessons and share their best advice with the next generation. 

What stood out was the power of investing for the future, such as taking advantage of employee-match programs and routinely contributing to 401(k)s and Roth IRAs. The millennials I spoke with all encouraged Gen Zers to invest early in their careers. And they each had more nuggets of wisdom to hand down to us -- including how to make the most of the first few years out of college, how to talk money with employers, discuss finances with partners and build successful careers in unexpected ways. 

Here's what they shared via email. 


Embrace career uncertainty and be flexible 

Katie Oelker, St. Paul, Minnesota

Katie Oelker worked in the auditing department of a bank after college while living with her parents, mainly to build some savings and pay off private student loans. That ultimately allowed her to afford going back to school to get her master's in education. 

Since Oelker didn't want to have a career in banking or auditing, she always took advantage of different learning opportunities, like training sessions or conferences, that were offered through her job. "If you don't like what you're doing post-graduation or even if you do, there are always educational opportunities to pursue that can help you further your career down the line," she told me by email. 

That career-building focus came in handy when she decided to pivot once again, this time to become a certified Business Education instructor. After teaching courses ranging from personal finance to marketing at two different high schools, she now runs her own business as a freelance writer and money coach. Having flexibility in her vision allowed her to navigate the recessionary job market and explore new industries.

"I've never been afraid to open new doors and try new things when it comes to career and educational opportunities, and it has paid off," she said. 


Talk about money with your partner, even if it's hard

Jared and Katie Pogue, Atlanta, Georgia

Before getting married, Jared and Katie Pogue learned that they needed to find productive ways to talk about money, especially how to afford building a family. The two had radically different outlooks on financial planning, which caused anxiety. Katie said she had many long-term goals, while Jared described his approach as "ignorant optimism."

They developed a routine to talk about money. They set a time limit for one day a week and slowly worked through their finances. They were eventually able to align their goals, which helped them make big financial decisions, including how to finance a house, when to have children and if they should go back to school. They came up with a division of labor, with Jared taking care of the daily and monthly payments, and Katie overseeing more long-term planning. Neither one could do their part alone.

"Once we started making tangible progress and got on the same page, our financial conversations were much more fruitful," said Jared. 


Negotiate for more, despite your doubts

Sara Gifford, Hyattsville, Maryland

Sara Gifford's first full-time job out of college wasn't her ideal choice. But with the tightening labor market, she felt compelled to accept an offer from the company she had interned with. 

"I settled for a job where I was expected to work 60-plus hours a week for laughably low pay, and I didn't negotiate my salary or benefits because I felt the employer held all the power," she said. Accepting such low compensation at her first job made it harder to move her salary benchmark forward in future negotiations.

Though recessions put more pressure on workers to avoid asking for higher pay, Gifford said that shouldn't discourage you from negotiating other benefits, such as commuting stipends, paid vacation and flexible or remote working hours. If the employer's not agreeable to any perks, it might be a sign to keep looking. "If the company pulls the offer, that's such a red flag."

Though she regrets not asking for better pay, she's proud that she took advantage of opportunities to network and learn new skills. It all came in handy when she decided to leave and build her career. Today Gifford runs her own marketing strategy company.


Identify your money priorities 

Adam Eisenberg, Huntington Woods, Michigan

Adam Eisenberg is still working at the company that offered him his first job in sales logistics. After college, he got his money goals in order, which for him meant immediately prioritizing payments toward his student loans -- instead of moving out of his parents' house. 

"I put my commission checks toward paying off my debt. It took four years to do it, and the first three I was living at my parents house, but it was worth it." While everyone's priorities are different, identifying them early on can help you better decide where your money should go.

In fact, Eisenberg originally had a second job offer he was considering, and took a similar approach when comparing his options -- he prioritized what mattered most to him. A higher commission rate, he decided, would ultimately be more beneficial for him, even if the base salary was lower. Another appealing component was the company's potential for growth. 

Eisenberg said that those entering the job market should expand beyond their normal job research to "make sure the foundation is there for future success." 


Budgets can be your calm in the storm

Jonathan Schrull, Indianapolis, Indiana

At the end of 2008, Jonathan Schrull was laid off from his second job after graduating. He was unemployed for six months before securing a new job and felt as though he had to put off beginning his long-term career and delay savings and investing. That, according to him, cost "a lot of money in the long run." 

Looking back, he found that maintaining a budget helped alleviate some of the stress. "Seeing the figures in front of me made the situation more tangible and easy to understand," he said. Having a way to track his spending, even without any income, helped him find new opportunities to reduce his expenses. Looking at his whole financial picture, not just income, was important, because "the numbers don't lie."


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8 Ways To Protect Your Money During A Recession


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8 Ways to Protect Your Money During a Recession


8 Ways to Protect Your Money During a Recession

This story is part of Recession Help Desk, CNET's coverage of how to make smart money moves in an uncertain economy.

What's happening

With the latest GDP report showing another consecutive quarterly decline in economic activity, the country is likely in a technical recession.

Why it matters

Previous recessions have all seen pervasive layoffs, higher costs of borrowing and a tumultuous stock market.

What it means for you

Worry less about the macroeconomic news of the day and focus on what you can control. Take inventory of your financial life, gather facts and make moves to protect your savings.

While many economists still refuse to use the R-word, the warning signs indicate the US economy is now likely in a technical recession. In addition to another quarterly drop in GDP, or gross domestic product, consumer confidence has gone down, the stock market is in bear territory and inflation is still soaring, despite four interest rates hikes from the Federal Reserve.

An increase in layoffs -- another key indicator of a recession -- is also being felt across the country as many companies, particularly in the tech sector, have announced layoffs in recent months. And if you ask most people, they'll say it's become undoubtedly harder to make ends meet. At least one poll conducted in June finds a majority of Americans, or 58%, believe we are in a recession.

But then others point to some key factors that point in the opposite direction -- for example, low unemployment levels, rising spending and a healthy banking sector.

While the National Bureau of Economic Research makes the official call on a recession -- and so far it's remained tight-lipped -- whether we call this challenging financial period a recession or not seems like a pretty subjective matter of interpretation. 

At CNET Money, we're dedicated to supporting your financial health with accurate, timely and honest advice that takes into consideration the pressing financial questions of our time. That's why we're launching the Recession Help Desk, a destination where you will get the latest, best advice and action steps for navigating this uncertain period. 

First, a quick look back at the US economy

Since the Great Depression, the US has had about a dozen economic setback periods lasting anywhere from a few months to over a year. In some ways, there's always a recession on the horizon: Economies are cyclical, with upswings and downturns. We can't predict what will happen in advance, and sometimes we can't even tell what's happening while we're in the middle of it. Morgan Housel, author of The Psychology of Money, may have said it best when he tweeted back in April: "We're definitely heading toward a recession. The only thing that's uncertain is the timing, location, duration, magnitude and policy response." 

Attempting to figure out recession specifics is a guessing game. Anyone who tells you different is likely trying to sell you something. The best we can do right now is draw on history to build context, get more proactive about the money moves we can control and resist the urge to panic. This includes reviewing what happened in previous recessions and taking a closer look at our financial goals to see what levers to pull to stay on track. 

Here are eight specific steps you can take to create more financial stability and resilience in a turbulent economy. 

Read more:  Bear Markets: Expert Stock Market Advice for Investors

1. Plan more, panic less   

The silver lining to current recession predictions is that they're still only forecasts. There is time to assemble a plan without the real pressures and challenges that come with being in the thick of an economic slowdown. Over the next couple of months, review your financial plan and map out some worst-case scenarios when your adrenaline isn't running high. 

Some questions to consider: If you did lose your job later this year or in early 2023, what would be your plan? How can you fortify your finances now to weather a layoff? (Keep reading for related advice.)

2. Bulk up your cash reserves 

A key to navigating a recession relatively unscathed is having cash in the bank. The steep 10% unemployment rate during the Great Recession in 2009 taught us this. On average, it took eight to nine months for those affected to land on their feet. Those fortunate to have robust emergency accounts were able to continue paying their housing costs and buy time to figure out next steps with less stress. 

Consider retooling your budget to allocate more into savings now to hit closer to the recommended six- to nine-month rainy day reserve. It may make sense to unplug from recurring subscriptions, but a better strategy that won't feel as depriving may be to call billers (from utility companies to cable to car insurance) and ask for discounts and promotions. Speak specifically with customer retention departments to see what offers they can extend to keep you from canceling your plans.

3. Seek a second income stream

Web searches for "side hustles" are always popular, but especially now, as many look to diversify income streams in the run up to a potential recession. Just like it helps to diversify investments, diversifying income streams can reduce the income volatility that arrives with job loss. For inspiration on easy, low-lift side hustles that you might be able to do from home, check out my story.

4. Resist impulsive investing moves

It's hard not to be worried about your portfolio after all the red arrows in the stock market this year. If you have more than 10 or 15 years until retirement, history proves it's better to stick with the market ups and downs. According to Fidelity, those who stayed invested in target-date funds, which include mutual funds and ETFs commonly tied to a retirement date, during the 2008 to 2009 financial crisis had higher account balances by 2011 than those who reduced or halted their contributions. "Those who panic and sell 'at the bottom' often regret it because trying to time the market can result in losses that are very difficult to regain because stock prices can change quickly," said Linda Davis Taylor, seasoned investment professional and author of The Business of Family. 

If you have yet to sign up for automatic rebalancing, definitely look into this with your portfolio manager or online broker. This feature can ensure that your instruments remain properly weighted and aligned with your risk tolerance and investment goals, even as the market swings. 

5. Lock interest rates now

As the policy makers raise interest rates to bring down inflation levels, interest rates will increase. This potentially spells bad news for anyone with an adjustable-rate loan. It's also a challenge for those carrying a balance on a credit card.

While federal student loan borrowers don't have to worry about their rates going up, those with private variable rate loans may want to look into consolidating or refinancing options through an existing lender or other banks, such as SoFi, that could consolidate the debt into one fixed-rate loan. This will prevent your monthly payments from increasing unpredictably when the Federal Reserve raises interest rates again this year, as expected.

6. Protect your credit score  

Borrowers may have a tougher time accessing credit in recessions, as interest rates jump and banks enforce stricter lending rules. To qualify for the best loan terms and rates, aim for a strong credit score in the 700s or higher. You can typically check your credit score for free through your existing bank or lender, and you can also receive free weekly credit reports from each of the three main credit bureaus through the end of the year from AnnualCreditReport.com. 

To improve your credit score, work towards paying down high balances, review and dispute any errors that may be on your credit report or consider consolidating high-interest credit card debt into a lower interest debt consolidation loan or 0% introductory APR balance transfer card.

7. Rethink buying a home

While home prices have cooled in some areas, it remains a competitive housing market with few homes to go around. If rising mortgage rates are adding more pressure to your ability to buy a home within budget, consider renting for a little longer. If you're also worried about your job security in a potential recession, then that's even more reason to take pause. Leasing isn't cheap at the moment, but it can afford you more flexibility and mobility. Without the need to park cash for a down payment and closing costs, renting can also keep you more liquid during a potentially challenging economy.

8. Take care of your valuables

The advice that was born out of the sky-high inflation period in the late 1970s still applies now: "If it ain't broke, don't fix it." 

With ongoing supply chain issues, many of us face high prices and delays in acquiring new cars, tech products, furniture, home materials and even contact lenses. This includes replacement parts, too. If a product comes with a free warranty, be sure to sign up. And if it's a nominal fee to extend the insurance, it may be worth it during a time when prices are on the rise.

For example, my car has been in the repair shop for over three months, waiting for parts to arrive from overseas. So, in addition to paying my monthly car payment, I have a rental car fee that's adding up. If nothing else, I'll be heading into a possible recession a more cautious driver.

Read moreSmaller Packages, Same Prices: Shrinkflation Is Sneaky


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Getting A New IPhone Every 2 Years Makes Less Sense Than Ever


Getting a new iphone every 2 years makes less sense of community getting a new iphone every 2 years makes less severe getting a new iphone every 2 years makesy getting a new iphone every 2 years makes sense getting a new iphone every 2 years getting a new iphone and syncing getting a business cell phone
Getting a new iPhone every 2 years makes less sense than ever


Getting a new iPhone every 2 years makes less sense than ever

We all know the drill. As Apple's annual fall event draws close, many of us start to check in on our previous two-year smartphone plan to see if we're eligible for an upgrade in September. After all, the newest phone is only the newest phone for so long. Even for discerning shoppers like me, it takes serious willpower to resist the lure of a purple iPhone or 1TB of storage.

Mobile carriers have long persuaded many of us to upgrade our smartphones every two years, offering two-year contracts linked to free or low-cost phone upgrades to keep the two-year upgrade cycle going. That feeling of ponying up just a couple hundred dollars (or less) for the newest, fanciest phone available has helped perpetuate the rise of the de facto two-year phone upgrade. Case in point: AT&T and Verizon marketed a "free" iPhone 12 last year for customers who buy unlimited plans and commit to a multiyear deal. And the trade-in deals were even better this year for the iPhone 13.

But even though that might still be the norm in the US, a routine upgrade isn't a thing for much of the world. 

I was born and raised in developing Asia, a region where buying a smartphone is financially unattainable for hundreds of millions of people, much less a two-year upgrade. In India, the average person needs to save two months' salary to buy the cheapest available smartphone, according to a survey published by the Alliance for Affordable Internet last August. From my perspective, the trend of routinely upgrading a phone every two years when it doesn't change that much is a privilege, one that reminds me of the stark income equality gap as well as the ever-increasing digital divide globally.

Read more: Billions of people still can't afford smartphones: That's a major problem

Beyond that, and perhaps more tangibly, I think we should consider the environmental cost of purchasing a new phone. You've read the headlines: Climate change is accelerating at rapid speed. Countries around the world keep setting new records for the highest temperatures. There are more climate-related disasters than ever before, arctic caps are melting and biodiversity is disappearing faster than we can save it. What, exactly, happens to all those discarded phones over time? Does all that plastic ever fully decompose? 

screenshot-2021-07-07-at-1-39-03-pm.png

Apple says it removed the in-box charger from its iPhone 12 lineup for environmental reasons.

Apple

Read more: Apple is opening up its world of iPhone recycling

Consumer electronics are responsible for tonnes of e-waste annually, which in turn contributes to the climate crisis. Experts have warned about how e-waste disposal contributes to climate change due to the chemicals released when the waste is burned, some of which are equivalent to carbon dioxide.

For years, developed countries like the US have shipped recyclable waste overseas for processing. Although that is now beginning to change, there are real costs. iPhones contain toxic materials like lead and mercury, for instance, which can harm the environment and people if disposed of improperly. And often e-waste isn't properly managed. In Southern China, there is a town called Guiyu that has become known as the world's biggest graveyard for America's electronic junk, and synonymous among environmentalists with toxic waste. The UN's 2020 Global E-waste Monitor report found that the world dumped a record 53.6 million tonnes of e-waste last year, of which the US is the world's second-largest contributor to e-waste, dumping 6.9 million tonnes.

Read more: I paid $69 to replace my iPhone battery: Here's what happened

While Apple is committed to a net zero supply chain by 2030, it's tough to argue that there's a better alternative to lower carbon consumption than less consumption. After all, Apple says the iPhone 12's end-to-end supply chain emits 70 kilograms of carbon to the atmosphere. If even 1 million people waited that extra year, we could save 70,000,000 kilograms of carbon from going into the air in a year. Imagine if it was 10 million or 100 million. It's something to think about before making that upgrade. 

The smartphone upgrade cycle has gotten longer

Even with the enticing deals offered by carriers, the upgrade cycle has seemingly lengthened. In recent years, several reports show how Americans and Europeans are more than happy to hold on to their phones for longer periods of time. In fact, in 2019 smartphone upgrades hit record lows at two of the biggest US carriers, Verizon and AT&T. Carriers like T-Mobile and Verizon seem to have responded to this by offering month-to-month plans, which offer more flexibility and options, indicating a potential departure from the "norm" of a two-year phone upgrade. 

Barring big-picture factors like the struggling global economy amid the ongoing pandemic as well as our increased mindfulness over the environment, I think this trend is persisting for a confluence of reasons. Phones today are receiving software, and therefore security, updates for longer. For instance, 2015's iPhone 6S is compatible with iOS 15, potentially dampening desires for a bi-yearly upgrade.

In addition to all this, smartphone innovation has hit a plateau, and the industry bears the hallmarks of one that's maturing: slowing smartphone sales growth along with the slower evolution of what we need, what we want and so forth. There are no big surprises here: Today's phones are getting more nice-to-have refinements rather than the awe-inspiring innovation seen just three or four years ago.

Decreasing technological gap

Up until a couple of years ago, smartphone manufacturers had us sitting on the edge of our seats, waiting for the next design refresh. But that's not as much the case anymore. With the iPhone 12 series, 5G was probably its buzziest feature -- one that understandably ended up triggering an upgrade supercycle. But the most exciting thing for many of us at CNET was MagSafe, which is hardly new. Apple's proprietary technology, allowing you to magnetically snap on attachments, was first introduced some 15 years ago with the first-gen MacBook Pro. It was then reintroduced for the iPhone 12.

Galaxy S21 vs. iPhone 12 camera compare
Patrick Holland/CNET

When you look at what changed from the iPhone 11, you'll see the usual suspects on your list: 5G, OLED screen, new design. Admittedly there are a few more things you won't see everywhere, such as MagSafe and the Ceramic Shield, but nothing extra-special to truly write home about. Personally, the last time I was blown away by an iPhone reveal was back in 2017 when Apple introduced the iPhone X, which set new design standards for the modern-day iPhone. The iPhone X did away with the physical home button and chunky bezels of its predecessors and made way for a sleek, futuristic device that inspired the iPhone 12 family. Also, for the first time with Apple, we were able to unlock an iPhone with Face ID, Apple's facial recognition technology.

Looking at the iPhone 13, the narrative sounds familiar. We knew it wouldn't get a major technical upgrade (though that didn't stop us from wishing). While we appreciate the upgrades Apple did give the phone (a smaller notch, a larger battery and a faster screen refresh rate), the iPhone 13 is "not radically different," according to CNET's Patrick Holland. Plus a number of these new iPhone features, like the 120Hz screen, currently exist on Android phones, reinforcing the notion of a decreasing technological gap in the smartphone landscape. Apple itself says the life-cycle of a typical iPhone is now three years. So the company times its new releases accordingly: We get a major redesign every three years, not two, with more minor updates in between. 

Look no further than the glitziest non-Apple flagship launch of this year for clues: Samsung's Galaxy S21 family. Here the standout change wasn't made to the hardware or software, but perhaps to its least interesting feature: its price tag. The S21 lineup has a starting price of $800 (£769, AU$1,249), which is $200 less than last year's $1,000 Galaxy S20, making for an enticing deal. 

Apart from that, major differences between the S21 and last year's S20 were mostly incremental. I remember having to pore over the specs sheet to spot salient differences as I covered Samsung's virtual Unpacked event. Refinements were made to the usual suspects, including the processor, software and 5G. This might have been part of Samsung's response to the global coronavirus pandemic, but again it lends credence to the notion of that decreasing technological gap. It was also interesting to note the items Samsung dropped from the S21 flagship family to meet that lowered price. We said goodbye to expandable storage, bundled earphones and most notoriously the in-box charger, as Samsung followed in Apple's lead -- apparently in the name of the environment. 

Read more: Here's what we know so far about Samsung's Galaxy S22

Let's also take a moment to consider the question: What makes the S21 an attractive buy? Chances are, a great camera, fast performance, battery longevity and a crisp display with narrow bezels are at the top of your list. But the truth is 2019's Galaxy S10 boasts all those features. Heck, even the Galaxy S7 from five years ago did. My point is yearly changes have become too incremental to compel most people to upgrade with urgency, especially given the backdrop of rising smartphone prices.

samsung-galaxy-zflip

Samsung's Galaxy Z Flip.

Angela Lang/CNET

Are we at peak phone?

I'm not discounting foldable phones. Samsung and Huawei have made undeniable technological progress, and their bendy handsets have dramatically altered the way smartphones are used and could represent the future of the industry. But folding phones are far from the mainstream. Phone manufacturers and carriers in the US have moved the most innovative devices to a price that's simply beyond reach for most people. For instance, the Galaxy Fold 3 starts at $1,800 (£1,599, AU$2,499) and Huawei's Mate X2, available in China for now, costs nearly $3,000 ($2,800, £1,985, AU$3,640 converted). Until these prices hit price parity with, say, the iPhone 12 Pro or Pro Max, foldable phones are likely to remain a niche product.

Smartphone innovation has stagnated, and this is not a knock against the consumer electronics companies or the tech giants that design them. Maybe we've reached peak smartphone, and this is as far as it needs to go. It could well be part of the reason why the race to upgrade your phones is slowing.


Source

Getting A New IPhone Every 2 Years Makes Less Sense Than Ever


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Getting a new iPhone every 2 years makes less sense than ever


Getting a new iPhone every 2 years makes less sense than ever

We all know the drill. As Apple's annual fall event draws close, many of us start to check in on our previous two-year smartphone plan to see if we're eligible for an upgrade in September. After all, the newest phone is only the newest phone for so long. Even for discerning shoppers like me, it takes serious willpower to resist the lure of a purple iPhone or 1TB of storage.

Mobile carriers have long persuaded many of us to upgrade our smartphones every two years, offering two-year contracts linked to free or low-cost phone upgrades to keep the two-year upgrade cycle going. That feeling of ponying up just a couple hundred dollars (or less) for the newest, fanciest phone available has helped perpetuate the rise of the de facto two-year phone upgrade. Case in point: AT&T and Verizon marketed a "free" iPhone 12 last year for customers who buy unlimited plans and commit to a multiyear deal. And the trade-in deals were even better this year for the iPhone 13.

But even though that might still be the norm in the US, a routine upgrade isn't a thing for much of the world. 

I was born and raised in developing Asia, a region where buying a smartphone is financially unattainable for hundreds of millions of people, much less a two-year upgrade. In India, the average person needs to save two months' salary to buy the cheapest available smartphone, according to a survey published by the Alliance for Affordable Internet last August. From my perspective, the trend of routinely upgrading a phone every two years when it doesn't change that much is a privilege, one that reminds me of the stark income equality gap as well as the ever-increasing digital divide globally.

Read more: Billions of people still can't afford smartphones: That's a major problem

Beyond that, and perhaps more tangibly, I think we should consider the environmental cost of purchasing a new phone. You've read the headlines: Climate change is accelerating at rapid speed. Countries around the world keep setting new records for the highest temperatures. There are more climate-related disasters than ever before, arctic caps are melting and biodiversity is disappearing faster than we can save it. What, exactly, happens to all those discarded phones over time? Does all that plastic ever fully decompose? 

screenshot-2021-07-07-at-1-39-03-pm.png

Apple says it removed the in-box charger from its iPhone 12 lineup for environmental reasons.

Apple

Read more: Apple is opening up its world of iPhone recycling

Consumer electronics are responsible for tonnes of e-waste annually, which in turn contributes to the climate crisis. Experts have warned about how e-waste disposal contributes to climate change due to the chemicals released when the waste is burned, some of which are equivalent to carbon dioxide.

For years, developed countries like the US have shipped recyclable waste overseas for processing. Although that is now beginning to change, there are real costs. iPhones contain toxic materials like lead and mercury, for instance, which can harm the environment and people if disposed of improperly. And often e-waste isn't properly managed. In Southern China, there is a town called Guiyu that has become known as the world's biggest graveyard for America's electronic junk, and synonymous among environmentalists with toxic waste. The UN's 2020 Global E-waste Monitor report found that the world dumped a record 53.6 million tonnes of e-waste last year, of which the US is the world's second-largest contributor to e-waste, dumping 6.9 million tonnes.

Read more: I paid $69 to replace my iPhone battery: Here's what happened

While Apple is committed to a net zero supply chain by 2030, it's tough to argue that there's a better alternative to lower carbon consumption than less consumption. After all, Apple says the iPhone 12's end-to-end supply chain emits 70 kilograms of carbon to the atmosphere. If even 1 million people waited that extra year, we could save 70,000,000 kilograms of carbon from going into the air in a year. Imagine if it was 10 million or 100 million. It's something to think about before making that upgrade. 

The smartphone upgrade cycle has gotten longer

Even with the enticing deals offered by carriers, the upgrade cycle has seemingly lengthened. In recent years, several reports show how Americans and Europeans are more than happy to hold on to their phones for longer periods of time. In fact, in 2019 smartphone upgrades hit record lows at two of the biggest US carriers, Verizon and AT&T. Carriers like T-Mobile and Verizon seem to have responded to this by offering month-to-month plans, which offer more flexibility and options, indicating a potential departure from the "norm" of a two-year phone upgrade. 

Barring big-picture factors like the struggling global economy amid the ongoing pandemic as well as our increased mindfulness over the environment, I think this trend is persisting for a confluence of reasons. Phones today are receiving software, and therefore security, updates for longer. For instance, 2015's iPhone 6S is compatible with iOS 15, potentially dampening desires for a bi-yearly upgrade.

In addition to all this, smartphone innovation has hit a plateau, and the industry bears the hallmarks of one that's maturing: slowing smartphone sales growth along with the slower evolution of what we need, what we want and so forth. There are no big surprises here: Today's phones are getting more nice-to-have refinements rather than the awe-inspiring innovation seen just three or four years ago.

Decreasing technological gap

Up until a couple of years ago, smartphone manufacturers had us sitting on the edge of our seats, waiting for the next design refresh. But that's not as much the case anymore. With the iPhone 12 series, 5G was probably its buzziest feature -- one that understandably ended up triggering an upgrade supercycle. But the most exciting thing for many of us at CNET was MagSafe, which is hardly new. Apple's proprietary technology, allowing you to magnetically snap on attachments, was first introduced some 15 years ago with the first-gen MacBook Pro. It was then reintroduced for the iPhone 12.

Galaxy S21 vs. iPhone 12 camera compare
Patrick Holland/CNET

When you look at what changed from the iPhone 11, you'll see the usual suspects on your list: 5G, OLED screen, new design. Admittedly there are a few more things you won't see everywhere, such as MagSafe and the Ceramic Shield, but nothing extra-special to truly write home about. Personally, the last time I was blown away by an iPhone reveal was back in 2017 when Apple introduced the iPhone X, which set new design standards for the modern-day iPhone. The iPhone X did away with the physical home button and chunky bezels of its predecessors and made way for a sleek, futuristic device that inspired the iPhone 12 family. Also, for the first time with Apple, we were able to unlock an iPhone with Face ID, Apple's facial recognition technology.

Looking at the iPhone 13, the narrative sounds familiar. We knew it wouldn't get a major technical upgrade (though that didn't stop us from wishing). While we appreciate the upgrades Apple did give the phone (a smaller notch, a larger battery and a faster screen refresh rate), the iPhone 13 is "not radically different," according to CNET's Patrick Holland. Plus a number of these new iPhone features, like the 120Hz screen, currently exist on Android phones, reinforcing the notion of a decreasing technological gap in the smartphone landscape. Apple itself says the life-cycle of a typical iPhone is now three years. So the company times its new releases accordingly: We get a major redesign every three years, not two, with more minor updates in between. 

Look no further than the glitziest non-Apple flagship launch of this year for clues: Samsung's Galaxy S21 family. Here the standout change wasn't made to the hardware or software, but perhaps to its least interesting feature: its price tag. The S21 lineup has a starting price of $800 (£769, AU$1,249), which is $200 less than last year's $1,000 Galaxy S20, making for an enticing deal. 

Apart from that, major differences between the S21 and last year's S20 were mostly incremental. I remember having to pore over the specs sheet to spot salient differences as I covered Samsung's virtual Unpacked event. Refinements were made to the usual suspects, including the processor, software and 5G. This might have been part of Samsung's response to the global coronavirus pandemic, but again it lends credence to the notion of that decreasing technological gap. It was also interesting to note the items Samsung dropped from the S21 flagship family to meet that lowered price. We said goodbye to expandable storage, bundled earphones and most notoriously the in-box charger, as Samsung followed in Apple's lead -- apparently in the name of the environment. 

Read more: Here's what we know so far about Samsung's Galaxy S22

Let's also take a moment to consider the question: What makes the S21 an attractive buy? Chances are, a great camera, fast performance, battery longevity and a crisp display with narrow bezels are at the top of your list. But the truth is 2019's Galaxy S10 boasts all those features. Heck, even the Galaxy S7 from five years ago did. My point is yearly changes have become too incremental to compel most people to upgrade with urgency, especially given the backdrop of rising smartphone prices.

samsung-galaxy-zflip

Samsung's Galaxy Z Flip.

Angela Lang/CNET

Are we at peak phone?

I'm not discounting foldable phones. Samsung and Huawei have made undeniable technological progress, and their bendy handsets have dramatically altered the way smartphones are used and could represent the future of the industry. But folding phones are far from the mainstream. Phone manufacturers and carriers in the US have moved the most innovative devices to a price that's simply beyond reach for most people. For instance, the Galaxy Fold 3 starts at $1,800 (£1,599, AU$2,499) and Huawei's Mate X2, available in China for now, costs nearly $3,000 ($2,800, £1,985, AU$3,640 converted). Until these prices hit price parity with, say, the iPhone 12 Pro or Pro Max, foldable phones are likely to remain a niche product.

Smartphone innovation has stagnated, and this is not a knock against the consumer electronics companies or the tech giants that design them. Maybe we've reached peak smartphone, and this is as far as it needs to go. It could well be part of the reason why the race to upgrade your phones is slowing.


Source

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