In insurance, indemnification is a legal principle that means your insurer agrees to compensate you for covered losses in amounts equivalent to what was lost. Below, we take a thorough look at what indemnification means and how it may affect you as a policyholder.

What Is Indemnification?

Indemnification is the act of being compensated by your insurer for a loss that restores you as closely as possible to your financial position before the loss. “Indemnity” is a similar term you might see that also has the same overall meaning.

Your insurer agrees to take on losses stemming from covered accidents or property damage when you’re a policyholder. Instead of you paying out of pocket for liabilities or property replacements, the insurance company picks up the tab to reestablish your financial standing to a state similar to what it was before the incident. If it’s an event where there’s another party involved, such as a car accident, your insurance company may sue the other party to recover damages.¹ 

How Does Indemnification Work?

Your insurer indemnifies (compensates you for your loss) after a covered claim. With car insurance, the insurance company shifts the financial responsibility from you to itself for costs arising from an accident or other covered event. This could mean paying for vehicle repairs, medical treatments, and attorney fees or judgments in a lawsuit. Without your policy and its indemnification provision, you’d be responsible for these bills. The process and principles are the same for other types of insurance, such as homeowners and commercial property insurance.

Note

It’s essential to purchase as much insurance protection as you can afford in a policy because insurers only reimburse you up to your policy’s limits. Also, note that the insurer’s indemnification responsibility is limited to the conditions stated in your policy agreement.

What Is the Role of Depreciation in Indemnification?

Policyholders sometimes run into problems with indemnification because of depreciation. Depreciation is an item’s loss in value due to all causes, such as age and condition. It can be cause for concern because if you total an older or high-mileage car, your insurer’s payout may not be enough to replace it.

Depreciation plays less of a role in some parts of homeowners insurance because most policies today have replacement cost coverage for structural damage. If you have to completely replace a damaged roof or other structure in your home, paying the full cost for a new roof of the same kind is the only practical option for the insurer.

However, it’s essential to check your homeowner’s policy to verify your coverage type. Older homes may have a modified replacement cost policy so that special features like hardwood floors are replaced with standard building materials. Moreover, unless you have replacement cost coverage for your belongings, the insurer may indemnify them for only their actual cash value (ACV or depreciated value), not what it would cost to buy new items.²

Indemnification vs. Indemnity Insurance

Indemnification is not the same as indemnity insurance (also known as professional liability insurance).

As mentioned, indemnification is an agreement by your insurer to return you to an equivalent financial standing after a covered loss. Indemnity insurance is a supplemental liability insurance designed to protect service providers or other professionals who counsel, give their expertise, or provide specialized services. This type of insurance provides coverage that protects professionals from claims filed against them for negligence or failing to perform their duties, and the resulting litigation costs or other financial losses.

Typical types of indemnity insurance in the business setting may include malpractice, Errors and Omissions (E&O), and Directors and Officers (D&O) insurance. 

Key Takeaways

• Indemnification involves your insurer paying for losses covered in your policy to restore your financial standing or property to the same condition as before the incident.
• Indemnification can pay for property damage, medical expenses, liabilities, legal fees, and other costs stated in your agreement.
• You may be compensated for your home or belongings at their depreciated values, not their original prices, unless you have a replacement cost coverage policy.
• Indemnity insurance is different from indemnification, as it protects certain professionals from the cost of claims filed against them.

Key takeaways

• A collision deductible waiver (CDW) is an optional endorsement that covers your deductible if you’re hit by an uninsured driver and must use your collision coverage instead of their liability insurance to file a claim.
• CDWs may not cover certain types of situations, such as hit-and-runs, partial-fault accidents and accidents with underinsured drivers.
• This endorsement to a standard auto insurance policy is very limited and only offered in California and Massachusetts.
• Uninsured motorist property damage (UMPD) coverage is often available as an alternative if you want a low-deductible way to protect yourself from uninsured drivers.

No matter how safely you drive, there’s always a chance that an irresponsible or distracted driver makes you the victim of an accident. Once the damage is done, it’s a toss-up whether the at-fault driver has car insurance. If you’d rather not take that gamble, a collision deductible waiver (CDW) can help hedge your bets. This optional endorsement waives your deductible when you’re hit by an uninsured driver and have to rely on your own collision coverage for repairs. CDWs vary by state and insurance provider, but they can be a smart safeguard depending on your policy structure and financial risk tolerance.

What is a collision deductible waiver?

A collision deductible waiver (CDW) is an optional feature you can add to your car insurance policy. It is an endorsement that covers your collision deductible when you are involved in an accident with an uninsured driver. It is not available in every state or with every insurance company.

In a typical car accident, the not-at-fault driver can file a claim against the at-fault driver’s liability insurance, up to their coverage limits. However, if the at-fault driver doesn’t have insurance, you may be forced to use your own collision coverage — if you have it — to pay for repairs. That can feel unlucky and unfair, since the accident wasn’t your fault. But, in essence, a CDW removes the gamble of hoping the other driver has insurance.

How does a collision deductible waiver work?

How a collision deductible waiver works and when it applies depends on the guidelines set by your insurance company. That said, there are some common restrictions that most companies follow:

• Coverage requirement: In order to have a CDW, you must have collision coverage, which is usually part of a full coverage car insurance policy.
• Actual cash value (ACV): The ACV of your vehicle must be more than your deductible — though if your car isn’t worth much, you probably don’t carry collision coverage anyway. In general, it makes sense to drop collision coverage when the cost of premiums and deductibles exceeds what you’d likely get from a claim.
• Fault determination: Most insurers require you to not be at fault for the accident. Some auto companies may require you to be 100 percent fault-free to have the collision deductible waived, while others may waive a percent of your deductible based on your percentage of fault.
• Driver identification: The at-fault driver typically needs to be identified and found uninsured for your CDW to apply. In cases of hit-and-runs where the driver is never identified or cases where the driver is just underinsured, the CDW would generally not apply.

Collision deductible waiver in California

In California, collision deductible waivers follow the same acronym, but are technically called California deductible waivers under state law. 

California Insurance Code requires insurance companies to offer policyholders a CDW if they have both collision coverage and uninsured motorist bodily injury (UMBI) coverage on their policy. California requires insurance companies to offer uninsured motorist property damage (UMPD) coverage to all policyholders who do not have collision coverage but allows policyholders to reject this coverage by signing a waiver. 

California also does not allow policyholders to carry both collision and UMPD simultaneously, since the protections are somewhat redundant. Both can cover damage to your vehicle caused by an uninsured driver, but collision applies regardless of fault, while UMPD is specifically for cases where you’re not at fault and the other driver is uninsured. Allowing both would mean double coverage for the same incident, which insurance regulations aim to avoid.

For California drivers who opt for UMPD on top of liability-only coverage, the UMPD coverage limit is a fixed amount of $3,500 and is without a deductible.

Collision deductible waiver in Massachusetts

The state of Massachusetts doesn’t require CDWs to be offered like California, but it is unique in the fact that UMPD is not an alternative option. Most states have both or neither. So this means that having collision coverage with a CDW is your only option to avoid paying your deductible if your vehicle is damaged by an uninsured driver.

Alternatives to collision deductible waivers

Even a low deductible can be a significant out-of-pocket expense, especially if you have to pay it unexpectedly. If you don’t have the option of a CDW or choose not to have one, here are some alternatives that might help you save on deductible expenses:

Diminishing or vanishing deductible

Many insurance companies offer these options as either an additional endorsement you can pay extra for or as a policy benefit to preferred drivers. Once you select a deductible amount, the deductible is reduced over a certain period of time and as long as you stay incident-free. For example, if you select a $500 collision deductible, you may see a $100 decrease in your deductible every year you keep a clean driving record (no at-fault accidents or moving violations). The length of time and amount of reduction is determined by the carrier.

Uninsured motorist collision deductible waiver

An uninsured motorist collision deductible waiver is very similar to a CDW. If you are involved in a car accident with an uninsured identified driver and this driver is at fault for the accident, your insurance company will waive the collision deductible. Again, the specifics surrounding this coverage will depend on your insurance provider, but you usually have to pay extra for this waiver.

Uninsured motorist property damage

UMPD provides coverage for your vehicle and property when it is damaged by an uninsured driver. It essentially acts as a replacement for the property damage liability coverage the at-fault driver should have had. UMPD availability, coverage and deductible options vary between states and carriers.

Choose a low deductible

The most common collision deductible is between $500 and $1,000, but you may have lower options depending on your carrier. Some auto insurers offer a zero collision deductible, but they typically start at $100. While lowering your deductible will increase your premium, drivers with older cars might not see a significant change.

Is a collision deductible waiver the same as uninsured motorist coverage?

Collision deductible waiver and uninsured motorist coverage are not the same. The CDW, usually an optional add-on, waives your collision deductible in the event of a claim against an uninsured motorist. Uninsured motorist (UM) is a type of liability coverage that can pay for repairs and medical payments for you and your passengers caused by an uninsured driver.

UMBI usually only pays for medical expenses, and UMPD is a separate coverage for physical damage loss. However, some states have UM coverage that combines both coverage types, and some states don’t allow for UMPD coverage at all.

If a CDW isn’t available through your insurance company or in your state, uninsured motorist property damage can be a practical alternative. With uninsured driving on the rise, UMPD offers a more affordable way to stay protected — often with lower premiums and deductibles compared to collision coverage. See the table below for UMPD availability by state.

21 tips for effective leadership

Here are some tips to become an effective leader:

1. Be humble

Leaders who are humble share the success of the team with other team members. They might do this by drawing attention to the hard work of each individual within the team and recognizing the effort of each team member against external forces when they have the chance to do so. This type of humility can help all team members feel a sense of inclusion and pride in their work.

2. Be goal-oriented

Rather than focusing on a problem, effective leaders direct their attention toward the solution. They may do this by focusing on company goals and developing a plan to meet those goals. Effective leaders prioritize so they can complete the most urgent tasks first.

3. Build trust

Develop relationships to earn the trust of the team because it can facilitate better teamwork. A leader who actively seeks to build trust may also demonstrate that consideration for the interests of team members and the company. Here are a few tips to help you build trust at work:

• Participate in daily activities.
• Learn something about each team member.
• Be fair and consistent.
• Involve individuals of all levels in decisions.
• Recognize your colleagues’ contributions to shared work.

4. Be decisive

Decisive individuals can make quick and efficient decisions in the workplace. This may help them troubleshoot problems and achieve success quickly. When choosing a solution, think about the goals of your project and company, then pick a solution that aligns with these goals.Strive to inspire a shared vision among colleagues so that everyone is working toward a common goal. When it comes time to make a decision, be confident in your ability to guide team members toward the proper outcome. This confidence can help inspire a team to follow your leadership.

5. Set an example

As a leader, you have a greater deal of accountability than the individuals on your team. Your primary goal as a manager is to set an example. Be the kind of leader you would follow yourself. For example, if you want your colleagues to be on time, be punctual yourself.

6. Encourage communication

Part of building trust in the workplace is establishing an environment where team members can take risks and comfortably express their ideas, concerns or opinions. Here are a few ways to promote an open environment for two-way feedback:

• Encourage feedback. Encourage individuals to ask questions, recommend ways to solve problems and discuss concerns. Let them express their opinions on company policies or decisions.
• Reward outstanding individuals. Mention or reward team members who’ve achieved significant progress toward the organizational goals or shared useful feedback with the company.
• Promote respect for varied opinions. Encourage all team members, including senior leaders and management, to respect the opinions or perceptions of their colleagues.

Related:20 Ways To Improve Your Work Environment

7. Learn about your team

Taking time to learn about your team and to help the team learn about each other, can help improve communication and mutual respect. As a leader, learning about your peers and understanding their individual personalities, goals and work styles can also help you develop better strategies for management. You can also use what you learn to establish an environment every team member feels like you listen to them and care for their wellbeing.

8. Provide constructive feedback

Constructive criticism can have a positive effect on a team member’s professional growth. When you provide feedback, be specific. Clearly explain how team members can change their behavior to better align with your expectations. Maintain a friendly and respectful tone and restate the individual’s value to the company. You can also tell them that you’re providing this feedback because you want to see them grow and succeed.

9. Know when to delegate tasks

As an effective leader, know when to delegate assignments and when to complete them yourself. Assigning tasks in this way can help you focus on the most important tasks you have yet to complete.Before you delegate a task, consider the following:

• Other team members who have the skills or information to complete the assignment
• If the assignment provides an opportunity to build and improve an individual’s skill set
• Is this a recurring task
• If there’s enough time to delegate the assignment efficiently
• Reasons you shouldn’t delegate this task

10. Give without expecting something in return

Effective leaders may adopt a servant-leadership mindset. This involves refocusing your mind on giving without expecting something in return. Leaders who give naturally see potential and abundance in those around them, so developing this mindset might help you succeed in encouraging the development of your peers. You may also share knowledge and offer support generously.

11. Know your own limits

Even the kindest and most caring leaders have boundaries and limits. When you have firm boundaries as a leader, you can earn the respect of your colleagues or team members. Knowing your strengths and limitations can help you delegate tasks that are better suited to other team members.When you set limits or clear boundaries with team members, put your communication skills into practice to explain what you need that can help you be successful. Also, be sure to respect the boundaries and limits of others.

12. Keep learning

Successful leaders often know that there’s always something new to learn. Many team members respect leaders that can admit when they don’t have the right answer and are eager to learn new things. These leaders are willing to let their teams teach them something new and look for professional development opportunities for themselves, such as taking a course or attending networking events.

13. Trust your team members

When you trust the individuals on your team and let them do their job without interfering, you can increase their productivity and boost their morale. You can also build their confidence and improve their work performance. You can demonstrate your trust in your team by allowing them independence in some aspects of their work.

14. Encourage productive meetings

Time is a valuable resource, so use it wisely. As an effective leader, you can encourage productive meetings by:

• Staying on task and keeping discussions focused
• Planning ahead to get as much as possible out of a short time
• Brainstorming creative productivity ideas or strategies with your team

Read more:Tips for Hosting Productive Meetings

15. Learn from your mistakes

Learning from past mistakes can help you determine better techniques for achieving your goals. It can also be a great way to lead by example and show your team that mistakes can be useful. When you make a mistake, engage your positive leadership mindset and consider it an opportunity for future improvement and growth.

16. Be passionate

Many effective leaders are passionate and give their best effort. When your team sees your engagement and motivation, it can encourage them to offer the same enthusiasm at work. This practice can increase productivity and enhance morale.

17. Compliment and recognize team members

Recognize the good work and strong efforts your team put into their job. Recognition can include compliments and awards. This acknowledgment can make team members feel loved and appreciated, which can increase their job satisfaction and engagement. Providing recognition for top performers can also motivate other individuals to work hard.

18. Create a fun work environment

Establish a fun work environment where team members can relax. To do this, schedule trips or games for relaxation. Teams that have these kinds of activities on their work schedule may feel happier and more productive. A fun work environment can build a strong rapport among your team members, allowing them to learn from and collaborate with each other.

19. Focus on change

As a leader, help your peers understand the objectives and goals of the company and what they can do to help achieve those goals. Once they know what changes the company is trying to achieve, they may be more enthusiastic about doing work that can contribute to its success. In this way, focus on the company’s overall vision and have the desire to bring about change.

20. Promote diversity

Effective leaders often welcome diversity and enhance the strengths that it can confer in a company. A diverse workforce that includes a wide range of personalities and backgrounds may generate new ideas and innovation, which can increase the likelihood of success. As a leader, recognize the value of diversity and strive to build teams that embrace it.

21. Help to develop future leaders

Part of being an effective leader is ensuring there’s someone else who can take over your position when necessary. Your company can benefit from creating a plan that leaves no time gap between supervisors. This means training other team members on how to perform your duties. Having trustworthy, competent team members who can take on your role ensures the company can maintain its productivity in your absence.

Social media sites are great tools which allow us to keep in touch with friends, family and coworkers. However, understanding the potential risks to these sites is important to enjoying and using them properly. Your online activities may expose excessive information about your identity, location, affiliations, and relationships, which leads to an increased risk of identity theft, targeted violence and/or stalking.

For a safer social networking experience, one should always assume:

• No one is anonymous on the internet. Nothing posted is private:
  • Once something is posted it can spread quickly.
  • Everyone can see what you post—from who you are friends with, to your comments, to where you post. 
  • An embarrassing comment or image can and will likely come back to haunt you.
• The more you participate in social networking the higher your risk to cyber crimes is.

To remain more secure and manage your online presence, follow these best practices:

• Do not accept friend/follow requests from anyone you do not know.
• Avoid third party applications. If they are needed, do not allow them to access your social media accounts.
• Be cautious with the images you post. What is in them can be more revealing than who is in them.
• Configure your security options on your accounts to minimize who can see your information.
• Never check “remember me” or “keep me logged in” options from public or shared computers.
• Do not use the same password for all of your accounts.
• Do not use your social media accounts to log into other sites. Create a new account for the site instead.
• Do not post personally identifiable information.

Every social media site is unique in their security settings and protocol. In order to protect your information, one must understand how the site operates and which settings are appropriate. To learn more about popular social networking sites and how to stay secure, see our tips below.

X:

X is an open platform, where participation is open to everyone with an email address and internet access. It is important to remember that anyone can read your posts that are not set to private even if they do not have an account themselves.

By default, your posts are set to public and are available to everyone on the internet. You can limit who sees what you post by changing the setting to “Protect My Post”. Protecting your account has many benefits including:

• All posts are protected.
• People will have to request to follow you before they can view anything you post. You will also have to approve these requests.
• Other users will not be able to retweet what you post.
• Protected posts do not appear in search engines.

An additional layer of account protection would be login verification. Instead of just entering your password to log in to your account, you will also need to enter a code sent via text message to your mobile phone.

Besides protecting your posts, there are other items you should consider before posting on X.

• Posting images can often create more interaction with your account; however, it is important to remember all images contain metadata. The metadata can contain a lot of information such as the location where the picture was taken, the date and time of when it was taken, the model and make of the camera and more.  While most social networking sites delete this data, X does not. Always think twice before posting an image.
• Photo tagging is also a common feature to many social media sites. On X, this function makes it easier for other users to and your followers to locate you and participate in social exchanges. Due to tagged photos not being individually verified, you could be associated with images you are not even in or images you never want to be associated with. To avoid this risk, change the photo tagging setting to prevent anyone other than yourself from tagging you in photos.

Facebook:

There are a few important security settings to enable for a more secure, social networking experience:

• Login notifications (also known as unrecognized login alerts) are a great way to identify attempted compromises to your Facebook profile. When accessing your profile, Facebook checks for the presence of a “cookie” on your device. If the cookie is absent or incorrect, Facebook asks if the information should be saved and will send a text or email. Login notifications are a great way to keep track of your account. If you receive a login notification and you did not initiate the login, you should immediately change your password and follow the Facebook community guidelines for what to do next. Note, you can also setup two-factor authentication. This is the most secure protocol for your account. You will login using your password as well as a code sent via text message to your phone.
• Set your Facebook post audience to friends only. You might even want to create a custom list and put some of your acquaintances in a group so they are excluded from viewing your posts.
• In addition, limiting the people who can send you friend requests helps protect your profile. Users should consider changing the security setting to only allow friends of friends to send requests. This gives you more assurance that the friend request is coming from someone in your personal network. Always remain cautious when receiving a request from someone you do not know, even if they know other individuals in your network.

Instagram:

By default, your Instagram is made public to all other users. You can make your account private by going to your profile settings. If you choose to keep your account public, remember that anyone is able to see what you post, and the internet is forever.

Your Instagram images can appear in a Google search if you’ve logged into your account using a web viewer, authorizing them to access your profile and images. To stop this from happening, revoke access to third-party websites or make your account private.

In a private account:

• Posts you share to other social media apps may be visible to the public depending on your privacy settings in those apps (a private Instagram post may be visible to those who see your Twitter posts)
• Only approved followers can see your posts, including any likes and comments
• Followers must send you requests that you can approve or ignore
• Likes on your posts won’t appear in the ‘Following’ feed of the ‘Activity’ tab.
• When you like a public post, your like will be visible to everyone and your username will be clickable below the post, but (again) only approved followers can see your posts.

YouTube:

YouTube allows you to make personal videos on your page private, allowing only you to share the videos with people you want. YouTube also never asks for password or email information, so if a user or account asks for this information you should report them immediately.

• Be sure to ask for permission before using people’s faces in your videos. Posting someone’s face or information without permission can get you kicked off the website.
• If someone posts your information or face in a video without your permission, YouTube encourages you to reach out to them before reporting them. Sometimes, people don’t realize that they are violating your privacy by doing so.
• If you see a video online that offends you, or you don’t feel it’s appropriate, flag it. YouTube will review its content to see if it should be taken down.
• Remember that anything you post on YouTube (comments, videos, etc.) can be seen by the public. Offensive comments can be reported and get you removed from the website.
• Do not click on links in the comment section of videos. Malware and other harmful spyware can easily be transmitted by cyber-attackers.

LinkedIn:

Configuring LinkedIn accounts for maximum security can be challenging. Users need to decide how to balance privacy, safety and security against the value of building a professional network. As a general rule, do not include things like email, telephone numbers or addresses in any fields that are not labeled for that information.

Making connections is an important part of this social networking site. If we are judged by the company we keep, then deciding which requests to allow or deny is an important decision. To help stay secure, follow these practices when adding connections:

• Be skeptical when you are contacted by individuals you do not know personally or professionally. Not everyone on the internet is who they say they are.
• Only accept connections that add quality to your professional network and consider the consequences of accepting connections that do not.
• Do not accept requests based on the requestor’s strength of network. People can build false networks and leverage their false credibility.

When selecting an email address to use with your profile, try to separate your personal and professional life. LinkedIn uses your email as the primary outlet through which communication flows. It will also use your email if you are ever locked out of your account.

Once your account is set up, LinkedIn will ask if you want to sync your contact books. Before allowing a third party site to access your address books, ask if you would be okay with exposing your name and email address to those you did not choose. Also consider if you want to be professionally associated with everyone in your address book.

As an entrepreneur or small business owner, it can be a challenge navigating the complex world of business development and funding. Between finding trusted resources, exploring loan options, and kickstarting your business dreams, it can be difficult to gain any momentum if you are tackling every factor impacting your business alone.

Fortunately, you don’t have to fly solo the entire way. Over the years, other entrepreneurs have paved the way and written down their wisdom, government agencies have established programs to support small business owners, and community members have founded nonprofits to nurture businesses along their path to success. Thanks to these entities and the wealth of information centralized on the Internet, small business owners have never had more options and more readily available access to resources to grow their businesses.

There are numerous resources available to small business owners and entrepreneurs to help them start and grow their businesses. Whether it’s counseling and training services, financial assistance, networking opportunities, or market research, there are organizations and programs available to help businesses succeed. In fact, many of these resources are free, an added bonus for your business budget.

As a digital marketing agency, we’ve partnered with dozens of entrepreneurs and small business owners over the last decade, so we’ve learned which resources have been the most helpful (and which ones haven’t) for our clients. Below, our Big Storm team has compiled a list of organizations and forms of support that offer support to small businesses in the United States. By taking advantage of these resources, you can learn more about the different types of support out there so you can overcome challenges, achieve your goals, and thrive in today’s competitive business environment.

Before Diving In: Evaluate Your Options & Budget

It’s important to note that while these small business resources can be incredibly helpful, it’s also essential to do your due diligence and carefully evaluate each opportunity before committing to anything. It’s crucial to research and compare different options, read reviews and testimonials from other business owners, and talk to trusted advisors and mentors before making any decisions. Additionally, it’s worth noting that while some of these resources are free or low-cost, others may come with a price tag. You should carefully consider your business’s budget and financial needs before committing to any paid services or programs.

Tried-and-True Small Business Resources

1.) Small Business Administration

The SBA is a government agency that provides counseling and training to small businesses through its district offices across the country. Business development specialists offer free and low-cost services to entrepreneurs and small business owners looking to start or grow their businesses. This business resource is best for a wide range of business owners, from those who have yet to start a business to entrepreneurs seeking a $5 million loan to buy real estate.

2.) Small Business Development Centers

Small Business Development Centers (SBDCs) are hosted by leading universities and state economic development agencies. These centers help aspiring entrepreneurs realize their dreams and help existing businesses remain competitive in a complex, ever-changing global marketplace. SBDCs are best for existing companies looking to get to the next level.

3.) Procurement & Technical Assistance Centers

Procurement & Technical Assistance Centers (PTACs) provide local, in-person counseling and training services designed to assist businesses that want to sell products and services to federal, state, and/or local governments. PTAC services are available either free of charge or at a nominal cost. This resource is best for business owners who wished they knew about such services before they started on the arduous journey of selling products and services to the government.

4.) United States Export Assistance Centers

The United States Export Assistance Centers (USEACs) are staffed by professionals from SBA, the Department of Commerce, the Export-Import Bank, and other public and private organizations. Together, their mission is to help small and midsize businesses compete in today’s global marketplace by providing export assistance. This resource is best for entrepreneurs with their sights set on the global stage, as it offers valuable guidance and resources to help businesses navigate the complexities of exporting.

5.) Certified Development Companies

Certified Development Companies (CDCs) are nonprofit corporations certified and regulated by the SBA. They work with participating lenders to provide financing to small businesses. There are 270 CDCs nationwide, covering specific geographic areas. CDCs are best for existing business owners looking for debt financing to buy capital equipment, another company, or enter new markets.

6.) Community Development Finance Institutions (CDFI)

Community Development Financial Institutions (CDFIs) are private financial institutions that are 100% dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream. Visit the CDFI Locator to find a CDFI near you.

7.) Chamber of Commerce

Your local or regional chamber of commerce is a member community organization that actively facilitates, educates, and advocates on behalf of its members through various services and programs. Chamber member offerings typically include networking opportunities and events, educational seminars, leadership development, and special offers to chamber members from other chamber members. This resource is best for companies interested in local networking and business development. It is also helpful for companies interested in local networking and business development.

8.) Veterans Business Outreach Centers

The Veterans Business Outreach Program (VBOP) is designed to provide entrepreneurial development services such as business training, counseling, mentoring, and referrals for eligible veterans owning or starting a small business. The SBA has 16 different organizations participating in this cooperative agreement and serving as Veterans Business Outreach Centers (VBOC). This resource is best for veterans who want to start a business or need assistance managing and growing an existing business.

9.) Prospera

An excellent local business resource, Prospera Business Network helps support businesses in southwest Montana, especially those in Gallatin and Park Counties. A non-profit organization, Prospera’s goal is to help small businesses launch their dreams. They focus on building the local economy, which, in turn, grows a thriving community.

10.) Women’s Business Centers

The Women’s Business Centers (WBCs) represent a national network of nearly 100 educational centers throughout the United States. This organization supports women in launching and growing businesses. They are particularly helpful in encouraging women who are economically or socially disadvantaged. Additionally, they offer business training and counseling for women who are starting a business for the first time or who are hoping to expand the business they have.

11.) SCORE

SCORE is a nonprofit organization that offers counseling, advice, and mentoring services to small business owners. With more than 13,000 volunteer business counselors across the United States, SCORE provides valuable support to startups during their first two years of operation. The organization offers training and guidance to help businesses avoid the common mistakes that can sink new companies in the first 24 months.

12.) Public Library and Research Librarians

Public libraries and research librarians offer a wealth of information and business resources to entrepreneurs and small business owners. Libraries can provide expert industry market research to help businesses better understand their market and competition, while research librarians have access to databases and research reports that can help businesses make better decisions, faster. And if you cannot find what you are looking for at the public library, IBISWorld is a great place to do industry market research. They provide reports, statistics, analysis, data, trends, and insights.

Boost Your Small Business’s Digital Presence with Big Storm

Now that you’re equipped with the resources you need to thrive, it’s time to partner with a digital marketing agency who can take your online game to the next level. Big Storm is a data-driven marketing company that aims to be transparent, genuine, valuable, and profitable in the work that we do for our clients. We’re driven to create impactful results for our clients, whether it’s a sleek website layout designed to convert leads or a PPC campaign geared to boost your sales.

The road to selling a home can be a long one. Learn to how to increase the value of your home—based on your budget.

In This Article

• Increase Your Home’s Value For: Under $100
• Increase Your Home’s Value For: $100- $200
• Increase Your Home’s Value For: $200-$400
• Increase Your Home’s Value For: $400-$750

Increase Your Home’s Value For: Under $100

Tip 1: Spend an Hour With a Pro

Invite a realtor or interior designer over to check out your home. Many realtors will do this as a courtesy, but you will probably have to pay a consultation fee to a designer. Check with several designers in your area; a standard hourly fee is normally less than $100, and in an hour they can give you lots of ideas for needed improvements. Even small suggested improvements, such as paint colors or furniture placement, can go a long way toward improving the look and feel of your home.

Tip 2: Inspect It

Not every home improvement is cosmetic. Deteriorating roofs, termite infestation or outdated electrical systems — you can’t fix it if you don’t know it’s broken. Hire an inspector to check out the areas of your home that you don’t normally see. They may discover hidden problems that could negatively impact your home’s value. Small problems (such as a hidden water leak) can become big, expensive problems quickly; the longer you put off repairs, the more expensive those repairs will be.

Tip 3: Paint, Paint, Paint

When it comes to increasing your home’s value, one of the simplest, most cost-effective things you can do is paint! Freshly painted rooms look clean and updated — and that spells value. When selecting paint colors, keep in mind that neutrals appeal to the greatest number of people, therefore making your home more desirable. On average, a gallon of paint costs around $25, leaving you plenty of money to buy rollers, painter’s tape, drop cloths and brushes. So buy a few gallons and get busy!

Tip 4: Find Inspiration

An alternative to hiring a designer is to search for remodeling and decorating inspiration in design-oriented magazines, books, TV shows and websites (Click Here for photo inspiration). Simply tear out or print off the ideas you want to try and start your to-do list. Keep it simple — when remodeling on a tight budget, do-it-yourself projects are best.

Tip 5: Cut Energy Costs

The amount of money you spend each month on energy costs may seem like a fixed amount, but many local utility companies provide free energy audits of their customers’ homes. They can show you how to maximize the energy efficiency of your home. An energy-efficient home will save you money now, which can be applied to other updates, and is a more valuable and marketable asset in the long run.

Increase Your Home’s Value For: $100- $200

Tip 1: Plant a Tree

If you aren’t planning to sell your house today, plan for the future with a landscaping improvement that will mature over time. Plant shade trees — not only will mature trees make your home more desirable but a fully grown, properly placed tree can cut your cooling costs by as much as 40 percent. Mature landscaping is also good for the environment, providing a necessary habitat for wildlife while adding valuable curb appeal to your home.

Tip 2: Low-Maintenance Landscaping

No question that shrubs and colorful plants will add curb appeal to any home, but when shopping at your local garden center, make sure that you “think green.” Purchase plants that are native to your region or plants that are drought-tolerant; these require less water and maintenance, which means more savings to you and more green in your wallet.

Tip 3: Money-Saving Luxury

An easy way to increase your home’s value is by installing a water filtration system in your kitchen. Not only do these systems purify your water, they will also lower your grocery bills — no more bottled water. A water filtration system is an inexpensive addition, but it’s the sort of small luxury that homebuyers love.

Tip 4: Improve the Air Quality Inside Your Home

Air quality isn’t just about the conditions outdoors. If you have older carpets in your home, they might be hiding contaminants and allergens. The first step to determine if these need replacing is to hire a professional company to test your indoor air quality. If the results prove that your carpets should be replaced, choose environmentally friendly natural products like tile or laminate floors. Hard-surface floors are much easier to keep clean, don’t hold odors, give your home an updated look and, in general, are more appealing to buyers.

Tip 5: Save the Popcorn for the Movies

Finally, what’s on your ceiling? Few structural elements date a house more than popcorn ceilings. So dedicate a weekend to ditching the dated look and adding dollar signs to the value of your home. NOTE: some older ceilings could contain asbestos so before undertaking this project, have yours tested by professionals.

How to Remove a Popcorn Ceiling

Ready for an updated look in your room? Learn how to remove a popcorn ceiling without creating a mess using these simple steps.

Once you’re in the clear, this is a project you can tackle yourself. First, visit your local hardware store for a solution to soften the texture, then simply scrape the popcorn away. Removing a popcorn ceiling may not seem like a big change but one of the keys for adding value to your home is to repair, replace or remove anything that could turn buyers away.

Increase Your Home’s Value For: $200-$400

Tip 1: Clean up the Lawn

Overgrown or patchy lawns and outsized bushes will cause your home to stand out — in a bad way. The good news is that taming your jungle is an easy fix. For a few hundred dollars, hire a lawn service company to trim your lawn and shape your hedges. Your curb appeal will go from messy to maintained without blowing your budget.

Tip 2: Cleanliness Counts

The old adage that you only get one shot at a first impression is true. So, make the interior of you home shine from the moment someone walks through the door. For less than $400, hire a cleaning service for a thorough top-to-bottom scrubbing. Even if you clean your home regularly, there are nooks and crannies that you may miss or overlook. Let a cleaning service do the dirty work to really make your home sparkle.

Tip 3: Visually Increase Your Home’s Square Footage

The size of your home dramatically affects the value, but square footage isn’t the only space that counts. Visual space or how large a home feels also counts. The key is to make each room in your house feel larger. Replace heavy closed draperies with vertical blinds or shutters to let light in — a sunny room feels larger and more open. Also, try adding a single large mirror to a room to visually double the space. Finally, clear the clutter. The more clutter, furniture and plain old stuff you have in a room, the more cramped it will feel. For less than $400, add an attractive shelving unit to an underused space and store your clutter out of sight.

Tip 4: Small Bathroom Updates Equal a Big Return

When it comes to increasing your home’s value, bathroom updates are always a smart move. Even if you can’t afford a full remodel, small changes such as replacing dated wallpaper with a faux or textured finish and replacing old lighting will update the room without denting your wallet.

Tip 5: Add New Energy-Efficient Fixtures

A functional, decorative ceiling fan is a beautiful thing. It provides necessary light and, in warm months, creates a soft breeze reducing the need for expensive air conditioning. But, an outdated, wobbly, loud or broken ceiling fan is a useless eyesore. Replace old fixtures with new ones to make your home more enjoyable for you now and to increase the bottom line should you decide to sell.

Increase Your Home’s Value For: $400-$750

Tip 1: Big Return on Bathroom Updates

A great room to update for less than $750 is the bathroom. The two rooms that benefit most from even small renovations are the kitchen and bathroom. One cost-effective change — like replacing an outdated vanity, old plumbing and lighting fixtures or adding a new tile floor — will guarantee a lot of bang for your buck and give your bath an updated, modern look.

Explore dozens of stylish, inspirational design ideas for your own bathroom remodel.

Tip 2: Any Kitchen Update Equals Added Value

The same rule applies in the kitchen. You don’t have to start from scratch to create a winning recipe. For maximizing your home’s value, kitchen updates are key. Start by swapping out just one item, such as a stained sink or ancient microwave for shiny new stainless models. Even small kitchen updates will add big value to your home.Replay Video

Tip 3: Replace Worn Carpets or Rugs

Take a look at your home’s soft flooring. Are your carpets and area rugs stained or worn? Nothing turns buyers off more than the thought that they will immediately need to replace all of the flooring in a home. Ideally, you may want to replace them all, but if a limited budget puts a snag in that plan, start by replacing the carpet in the room that shows the most wear and tear and replace the others as your finances allow.

Tip 4: Keep Up With Regular Maintenance and Repairs

To increase your home’s value, walk around each room and make a list of all the little things that are broken or in need of repair. Individually, small repairs might not seem important, but if every room has just one thing wrong, those small things will add up to create the impression that your home has been neglected. If you don’t feel comfortable tackling the repairs yourself, hire a handyman for a day and watch your “to do” list disappear. Staying on top of maintenance today eliminates problems down the road should you decide to sell.

Tip 5: Get Help With Getting Organized

Hire a professional organizer for a day. They will show you how to organize various rooms in your home and teach you tricks for keeping it organized. How does this increase your home’s value? Simple — a clutter-free home appears cleaner and larger, which is more attractive to homebuyers and therefore more valuable.

Feel more confident about living the retirement you want, no matter what age or life stage you’re in.

Retirement planning isn’t only for the retired. Rather, it’s a long game that requires consistent saving and intentional investing — at every life stage.

Wherever you are in your retirement journey, your Ameriprise financial advisor is prepared to help you stay on track to reach your retirement goals and provide personalized retirement advice specific to your age and unique situation.

Here are seven essential retirement tips by age that can help you prepare right now.

In this article:

• Under age 50 
• Age 50 – 62 
• Age 62+
• Questions to ask your Ameriprise financial advisor

Under age 50

1. Envision your ideal retirement

It’s challenging to plan for retirement unless you know your ideal retirement lifestyle. So, think about how you want to enjoy your days. Maybe you want to continue working. Or do you want to travel, volunteer or become a professional grandparent? Perhaps you’ll build a cabin on a lake?

You can’t start thinking about your retirement too soon or obtain advice for retirement too early. Even if you think your goals might shift in the years ahead, thinking about them today gets the conversation started and helps you plan.

2. Identify your retirement numbers

Once you know what you want to be doing in your retirement years, you can figure out a rough estimation of how much you may need to save. To figure out your retirement numbers, use our retirement planner calculator to help identify specific savings targets.

For example, let’s say you’re 35 years old, earn $100,000 a year and have $200,000 in your 401(k). You might determine you need $2 million saved by the time you’re 65. To get there, you may only need to invest $550 per month, assuming a 7% annual rate of return.

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Advice spotlight

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Even if you don’t know exactly what you want to do in retirement, starting early with investing is key.

The longer the time horizon, the more you can benefit from the power of compounding returns.

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3. Save money at every opportunity

With rising retirement costs and longer life expectancies, you may need more money than you think. So, consider saving as much as you can during your earning years. Workplace-sponsored 401(k) and 403(b) plans let employees invest a percentage of their income for retirement on an after and tax-deferred basis. Plus, your employer may match a percentage of your contribution. Aim to save at least 15% of your gross pay, if possible. If you’re not there yet, consider increasing your retirement savings contribution with every pay raise.

4. Go beyond the workplace with a Roth IRA

Beyond a 401(k) or 403(b), there are other tax-advantaged ways to save for retirement that aren’t tied to an employer. Consider opening a Roth IRA, which allows for after-tax savings and tax-free income in retirement, when certain conditions are met. This may help you hedge against the possibility of future tax increases.

However, Roth IRAs do have income limits and if you earn too much to contribute directly to one, there are alternate options. You could simply contribute to a traditional IRA, which does not have income limits, or consider a strategy such as a backdoor Roth IRA. Consult with your tax professional to determine if this strategy is appropriate for you.

5. Keep your asset allocation in check by regularly rebalancing

Asset allocation is the strategic apportioning of different assets types — including stocks, bonds, alternative investments and cash — in your portfolio, based on your financial goals, risk tolerance and time horizon. The general goal is to help diversify your portfolio, keep you invested and soften the effects of big market fluctuations.

However, over time, market swings can throw your portfolio’s asset allocation out of balance. That’s why it’s important to regularly rebalance your portfolio. Rebalancing brings your investments back into alignment with your risk tolerance and long-term strategy, helping you stay on track toward your goals.

6. Steer clear of emotional investing

As investors, our emotions tend to follow market cycles. When markets rise, our outlook improves, and we are inclined to invest more. When markets turn down, our outlook becomes more pessimistic, and we are inclined to invest less. Some investors may even pull out of the stock market just as it reaches its low, missing out on potential gains as it rises again.

Bottom line: Emotions can cause us to do the opposite of what we should do. That’s why regularly investing, and staying invested, over the long-term is a smart approach for most investors.

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Advice spotlight

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Dollar-cost averaging can help you avoid making emotional decisions based on market turbulence.

With this strategy, you automatically invest a set amount of money at regular intervals, regardless of what the market is doing. This systematic investing approach can help you resist the impulse to sideline money when markets become challenging.

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7. Consider insurance to help reduce your worries

Even with a smart saving and investing strategy, unexpected events can occur. You could experience an illness that prevents you from working and earning an income. Or your home could be damaged in a storm. To protect yourself against these risks, consider how insurance — whether it’s life insurance, disability income insurance, long-term care coverage or auto, home and umbrella life policies — can help. With sufficient protection, you can focus on planning for the future, without worrying too much about life’s uncertainties.

Age 50 – 62

1. Add details to your goals

Start planning for the retirement lifestyle you’ve long strived for. You may have decided to spend your retirement years traveling, volunteering or becoming a professional grandparent. Now that you’re a little bit closer to retirement, get more specific and start to refine your retirement vision.

2. Catch up if you need to

Prioritize saving as you near retirement. Max out contributions to your retirement accounts as much as you can. If you’re between 50 and 64 years old, you’re eligible to make extra “catch-up” contributions to your 401(k) and IRA to help you meet your retirement goals.

3. Consider consolidating retirement accounts

By this point, you may be juggling multiple retirement accounts, making it difficult for you to manage your money and have a full financial picture. Consider the pros and cons of consolidating these accounts before retirement so you can easily and effectively tap into your money when you need it.

4. Plan for health care expenses

Health care expenses are an often-overlooked expenditure in retirement planning, but these costs can be significant. Medicare wasn’t designed to cover health care expenses in full and retirees are responsible for paying for deductibles and copayments, as well as dental and vision care.

As such, start thinking about how you’ll cover health costs in retirement, and consider funding a health savings account (HSA), if you’re enrolled in a high-deductible health plan. An HSA is a tax-advantaged account that enables you to use pre-tax money to cover eligible, out-of-pocket medical expenses. However, any distributions taken prior to age 65 that are not used for eligible medical expenses are subject to income tax and a penalty.

5. Start planning for retirement income

Your retirement can last for decades, and you’ll want to have multiple income streams to help ensure your retirement savings endures. At this point in your journey, you may want to consider strategies like tax diversification or purchasing an annuity, which can provide a steady income stream throughout your lifetime, or adding dividend-paying stocks to your portfolio.

6. Investigate long-term care

Medicare does not cover extended stays in nursing homes and other long-term care facilities. However, about 70% of Americans who reach age 65 will need long-term care at some point, according to the Department of Health and Human Services.¹ In your 50s and early 60s, consider purchasing coverage that could help pay for the cost of a long stay in a facility or in-home care. It’s typically more cost-effective to lock in premiums while you’re younger.

7. Reevaluate how you invest

How you invested when you were 40 is not necessarily how you should invest at 50 or 60. Your risk tolerance changes over time, and as you get closer to your retirement, it’s smart to focus on preserving your wealth, as much as growing it. At this point, you may want to revisit your portfolio’s asset allocation and consider how your shorter time horizon may affect your risk tolerance and investment mix. For example, as retirement draws closer, it’s not uncommon for retirees to shift from a more aggressive allocation to a more conservative one.

Age 62+

1. Be strategic with your Medicare and Social Security benefits

As you enter your retirement years, continue to review your progress and assess your position. You will not only want to consider strategic adjustments to your portfolio, but also think about the big upcoming retirement milestones, such as enrolling in Medicare and deciding when to file for Social Security.

2. Establish a spending plan

In the year leading up to retirement, consider tracking your expenses so you can better understand how much income you’ll need to withdraw in retirement. For many retirees, the transition from earning income to withdrawing income can be an adjustment, so creating a spending plan can be helpful for managing expenses.

3. Create a sustainable withdrawal strategy

Once you know the amount of income you’ll need, create a withdrawal strategy that accounts for your different income sources, your required minimum distributions (RMDs) at the appropriate age and your financial goals. While a general rule for withdrawing money from retirement savings is to take out up to 4% each year, everyone’s situation is unique. After years of accumulating assets in your retirement accounts, it may feel strange to switch to this phase, but it’s important to remember that you’ve worked hard to get to this point. 

4. Take advantage of tax diversification

How you withdraw from your various taxable and tax-deferred accounts in retirement — and which you tap first, second and so on — determines the taxes you owe and may help your assets last longer. It’s generally wise to tap taxable savings before tax-advantaged retirement accounts, but every person’s situation is unique. For example, there may be tax benefits to withdrawing from several different types of retirement savings accounts at the same time. Consult with your tax professional to determine the strategy that is appropriate for you.

5. Make your retirement savings last

A common mistake retirees make is shifting a big portion of their retirement assets to cash and fixed-income investments. Since you have less time to recover from market downturns, investing more conservatively in retirement can be wise. However, you don’t want the purchasing power of your investment portfolio to be eroded by inflation. Retirement can last more than 30 years, so it’s important to take steps to help your retirement savings last longer.

6. Prepare for the long run

Planning for your later years is crucial. People often only plan for their early retirement years when they can travel the world or enjoy their favorite activities. But those activities may not be as realistic as you age. Think through how you hope to spend your later retirement years and work through some unexpected scenarios. Then you can take steps to prepare, such as securing long-term care coverage to help pay for any services you may need or making modifications to your home to make it more accessible as you age.

7. Keep checking in with your goals and finances

Don’t leave your retirement on autopilot. Priorities often change over the course of retirement for many reasons. Reviewing your goals periodically can help you feel more confident that you can continue to live the retirement you want.

Prepare for retirement — at every life stage

Your Ameriprise financial advisor is prepared to provide you with retirement advice by age and recommend strategies to help you stay on track — so you can enjoy the retirement you’ve always envisioned.

There are many benefits to reading more books, but perhaps my favorite is this: A good book can give you a new way to interpret your past experiences.

Whenever you learn a new mental model or idea, it’s like the “software” in your brain gets updated. Suddenly, you can run all of your old data points through a new program. You can learn new lessons from old moments. As Patrick O’Shaughnessy says, “Reading changes the past.”

Of course, this is only true if you internalize and remember insights from the books you read. Knowledge will only compound if it is retained. In other words, what matters is not simply reading more books, but getting more out of each book you read.

Gaining knowledge is not the only reason to read, of course. Reading for pleasure or entertainment can be a wonderful use of time, but this article is about reading to learn. With that in mind, I’d like to share some of the best reading comprehension strategies I’ve found.

1. Quit More Books

It doesn’t take long to figure out if something is worth reading. Skilled writing and high-quality ideas stick out.

As a result, most people should probably start more books than they do. This doesn’t mean you need to read each book page-by-page. You can skim the table of contents, chapter titles, and subheadings. Pick an interesting section and dive in for a few pages. Maybe flip through the book and glance at any bolded points or tables. In ten minutes, you’ll have a reasonable idea of how good it is.

Then comes the crucial step: Quit books quickly and without guilt or shame.

Life is too short to waste it on average books. The opportunity cost is too high. There are so many amazing things to read. I think Patrick Collison, the founder of Stripe, put it nicely when he said, “Life is too short to not read the very best book you know of right now.”

Here’s my recommendation:

Start more books. Quit most of them. Read the great ones twice.

2. Choose Books You Can Use Instantly

One way to improve reading comprehension is to choose books you can immediately apply. Putting the ideas you read into action is one of the best ways to secure them in your mind. Practice is a very effective form of learning.

Choosing a book that you can use also provides a strong incentive to pay attention and remember the material. That’s particularly true when something important hangs in the balance. If you’re starting a business, for example, then you have a lot of motivation to get everything you can out of the sales book you’re reading. Similarly, someone who works in biology might read The Origin of Species more carefully than a random reader because it connects directly to their daily work.

Of course, not every book is a practical, how-to guide that you can apply immediately, and that’s fine. You can find wisdom in many different books. But I do find that I’m more likely to remember books that are relevant to my daily life.

3. Create Searchable Notes

Keep notes on what you read. You can do this however you like. It doesn’t need to be a big production or a complicated system. Just do something to emphasize the important points and passages.

I do this in different ways depending on the format I’m consuming. I highlight passages when reading on Kindle. I type out interesting quotes as I listen to audiobooks. I dog-ear pages and transcribe notes when reading a print book.

But here’s the real key: store your notes in a searchable format.

There is no need to leave the task of reading comprehension solely up to your memory. I keep my notes in Evernote. I prefer Evernote over other options because 1) it is instantly searchable, 2) it is easy to use across multiple devices, and 3) you can create and save notes even when you’re not connected to the internet.

I get my notes into Evernote in three ways:

I. Audiobook: I create a new Evernote file for each book and then type my notes directly into that file as I listen.

II. Ebook: I highlight passages on my Kindle Paperwhite and use a program called Clippings to export all of my Kindle highlights directly into Evernote. Then, I add a summary of the book and any additional thoughts before posting it to my book summaries page.

III. Print: Similar to my audiobook strategy, I type my notes as I read. If I come across a longer passage I want to transcribe, I place the book on a book stand as I type. (Typing notes while reading a print book can be annoying because you are always putting the book down and picking it back up, but this is the best solution I’ve found.)

Of course, your notes don’t have to be digital to be “searchable.” For example, you can use Post-It Notes to tag certain pages for future reference. As another option, Ryan Holiday suggests storing each note on an index card and categorizing them by the topic or book.

The core idea is the same: Keeping searchable notes is essential for returning to ideas easily. An idea is only useful if you can find it when you need it.

4. Combine Knowledge Trees

One way to imagine a book is like a knowledge tree with a few fundamental concepts forming the trunk and the details forming the branches. You can learn more and improve reading comprehension by “linking branches” and integrating your current book with other knowledge trees.

For example:

• While reading The Tell-Tale Brain by neuroscientist V.S. Ramachandran, I discovered that one of his key points connected to a previous idea I learned from social work researcher Brené Brown.
• In my notes for The Subtle Art of Not Giving a F*ck, I noted how Mark Manson’s idea of “killing yourself” overlaps with Paul Graham’s essay on keeping your identity small.
• As I read Mastery by George Leonard, I realized that while this book was about the process of improvement, it also shed some light on the connection between genetics and performance.

I added each insight to my notes for that particular book.

Connections like these help you remember what you read by “hooking” new information onto concepts and ideas you already understand. As Charlie Munger says, “If you get into the mental habit of relating what you’re reading to the basic structure of the underlying ideas being demonstrated, you gradually accumulate some wisdom.”

When you read something that reminds you of another topic or immediately sparks a connection or idea, don’t allow that thought to come and go without notice. Write about what you’ve learned and how it connects to other ideas.

5. Write a Short Summary

As soon as I finish a book, I challenge myself to summarize the entire text in just three sentences. This constraint is just a game, of course, but it forces me to consider what was really important about the book.

Some questions I consider when summarizing a book include:

• What are the main ideas?
• If I implemented one idea from this book right now, which one would it be?
• How would I describe the book to a friend?

In many cases, I find that I can usually get just as much useful information from reading my one-paragraph summary and reviewing my notes as I would if I read the entire book again.

If you feel like you can’t squeeze the whole book into three sentences, consider using the Feynman Technique.

The Feynman Technique is a note-taking strategy named after the Nobel Prize-winning physicist Richard Feynman. It’s pretty simple: Write the name of the book at the top of a blank sheet of paper, then write down how you’d explain the book to someone who had never heard of it.

If you find yourself stuck or if you see that there are holes in your understanding, review your notes or go back to the text and try again. Keep writing it out until you have a good handle on the main ideas and feel confident in your explanation.

I’ve found that almost nothing reveals gaps in my thinking better than writing about an idea as if I am explaining it to a beginner. Ben Carlson, a financial analyst, says something similar, “I find the best way to figure out what I’ve learned from a book is to write something about it.”

6. Surround the Topic

I often think of the quote by Thomas Aquinas, “Beware the man of a single book.”

If you only read one book on a topic and use that as the basis for your beliefs for an entire category of life, well, how sound are those beliefs? How accurate and complete is your knowledge?

Reading a book takes effort, but too often, people use one book or one article as the basis for an entire belief system. This is even more true (and more difficult to overcome) when it comes to using our one, individual experience as the basis for our beliefs. As Morgan Housel noted, “Your personal experiences make up maybe 0.00000001% of what’s happened in the world but maybe 80% of how you think the world works. We’re all biased to our own personal history.”

One way to attack this problem is to read a variety of books on the same topic. Dig in from different angles, look at the same problem through the eyes of various authors, and try to transcend the boundary of your own experience.

7. Read It Twice

I’d like to finish by returning to an idea I mentioned near the beginning of this article: read the great books twice. The philosopher Karl Popper explained the benefits nicely, “Anything worth reading is not only worth reading twice, but worth reading again and again. If a book is worthwhile, then you will always be able to make new discoveries in it and find things in it that you didn’t notice before, even though you have read it many times.”

Additionally, revisiting great books is helpful because the problems you deal with change over time. Sure, when you read a book twice maybe you’ll catch some stuff you missed the first time around, but it’s more likely that new passages and ideas will be relevant to you. It’s only natural for different sentences to leap out at you depending on the point you are at in life.

You read the same book, but you never read it the same way. As Charles Chu noted, “I always return home to the same few authors. And, no matter how many times I return, I always find they have something new to say.”

Of course, even if you didn’t get something new out of each reading, it would still be worthwhile to revisit great books because ideas need to be repeated to be remembered. The writer David Cain says, “When we only learn something once, we don’t really learn it—at least not well enough for it to change us much. It may inspire momentarily, but then becomes quickly overrun by the decades of habits and conditioning that preceded it.” Returning to great ideas cements them in your mind.

Nassim Taleb sums things up with a rule for all readers: “A good book gets better at the second reading. A great book at the third. Any book not worth rereading isn’t worth reading.”

Learn about the benefits of digitizing your documents and how to do it.

Table of Contents

As your business grows from a startup into a more established operation, the amount of paper you deal with tends to grow right along with it. Filing cabinets fill up, paperwork takes over valuable space and finding the document you need can become frustrating and time-consuming.

Searching for document management software and not sure where to start? Tell us a little more about your business and get customized quotes from qualified providers.

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Fill out this questionnaire to find vendors that meet your needs.

Do you currently use a document management system/software?

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One solution is to move toward a paperless office. By using digital conversion tools, businesses can turn paper documents into electronic files that are stored in the cloud or on a local server. We’ll walk through what document digitization involves and explain how it can help businesses stay organized, reduce costs and run more efficiently.

What is document digitization?

Document digitization is the process of capturing images of paper documents and converting them into digital files using scanning and capture software. OCR, or optical character recognition, turns those scanned images into searchable, editable text. You may also hear this process referred to as document scanning or document imaging.

Once documents are digitized, businesses can add more information, known as key index fields or metadata, to help better organize and manage files. This helps meet data retention requirements and supports storing documents in a computerized filing system.

After documents have been scanned, checked for accuracy and made editable, many paper originals can be destroyed. Some records, however, must remain in physical form to comply with state record retention laws (such as paycheck recordkeeping requirements) or other legal stipulations.

Tip

The best document management software helps businesses store digital files in one central location, with features like advanced search, security controls and workflow automation to keep documents organized and easy to access.

What are the business benefits of digitizing documents?

Document digitization can bring businesses the following advantages:

• Share documents easily: It’s faster to share digital documents than paper ones. Files can be emailed or shared online, so more than one person or team can access the same document at the same time, which makes workplace collaboration easier, especially for remote or hybrid teams.
• Store information safely: Digitized documents make it easier to store and protect records securely. Digital files can be backed up on remote servers and protected with access controls and security measures. Unlike paper documents, digital files are far less likely to be lost, misplaced or damaged, and they’re easier to archive and manage in an organized way.
• Incorporate digital elements: Scanning allows information to be captured from paper files, films, tapes and other physical media. Data can also be read from barcodes, RFID tags, QR codes or other scannable sources. The scanned information can then be used with document management systems, ERP software, management information system software, the best CRM software and other business applications.
• Save time and money: Digitizing documents eliminates the need to search through file rooms or store paper records in warehouses. Instead, documents can be accessed with just a few clicks. Cutting back on paper use, storage space and manual handling can lead to meaningful cost savings over time. In fact, some estimates suggest that storing and managing a paper document can cost more than 200 times as much as keeping a digital one, underscoring how much businesses can save by going paperless. 
• Improve customer service: Digitized documents can be indexed with key index fields or metadata, making it easier and faster to find the information needed to help customers. Jennifer Graham, co-founder of Total Document Solutions, agrees that quick searches are a major time-saver for customer service teams. “With the benefit of OCR or ICR, the ability to search for key text or information strings comes within seconds,” Graham noted.
• Minimize storage space: Moving away from paper records reduces the need for filing cabinets and storage rooms. “This opens possibilities for repurposing the area for more productive, revenue-generating activities,” Graham pointed out.
• Meet compliance regulations: Some industries require certain records to be maintained in digital form. Document scanning can help businesses meet these compliance requirements quickly and cost-effectively.
• Reduce paper waste: Digitizing documents can cut down on paper use dramatically, helping businesses reduce waste and support a more sustainable business model.
• Increase file accessibility: Digital files can be stored in the cloud or shared securely, so authorized users can access them whether they’re in the office or working remotely. Because the files are searchable and editable, it’s much easier to find what you need.
• Create automation opportunities: Digitizing documents can streamline day-to-day operations by reducing manual tasks. Graham noted that many businesses are surprised by how easily they can automate processes like sorting documents, managing approvals and sending reminders.

Did You Know?

File management best practices include choosing a clear, consistent naming system to make documents easier to find through search. For example, files can be organized by project name or date.

What documents can you digitize?

There’s no real limit to the types of documents you can digitize. That said, if you’re planning a larger effort to convert paper records into electronic files, it helps to start with documents that are used most often or take up the most space, such as:

• Official correspondence
• Financial papers
• Contractual agreements
• Medical records
• HR files
• Bills and invoices
• Survey maps
• Other large documents

Once documents are scanned, the next step is adding descriptive information so they’re easy to identify and retrieve later. Using OCR or ICR (Intelligent Character Recognition) technology, scanned images can be converted into readable text that can be searched, shared and used across different applications.

How are documents digitized?

The following tools can help you digitize your documents.

Multifunction devices

If your documents don’t require high-resolution scanning, a multifunction device you already have in the office may be enough. For example, an office printer with scanning capabilities lets employees digitize paper documents quickly without added cost.

Dedicated scanners

For businesses that scan documents frequently or in large volumes, a dedicated scanner can be a better fit. These devices typically offer higher resolution, faster scanning speeds and more flexibility for handling different paper sizes and document types.

Scanning apps

If you don’t have a scanner or need to scan documents on the go, a smartphone app can be a practical option. It uses your phone’s camera to capture clear images and keep paperwork organized.

FYI

If you use a scanning app for business documents, take time to review its storage options, search features and security measures to make sure it meets your needs before downloading.

Document scanning services

Outsourcing document scanning can make sense for businesses with a large backlog of paper files. Professional scanning services handle the time-consuming work of preparing, scanning and indexing documents, which can help companies digitize records efficiently without pulling internal staff away from other responsibilities.

Here are the different types of document scanning services and some of the use cases they specialize in:

1. Bulk scanning: Bulk-scanning services use high-quality devices to scan large volumes of documents quickly. There is no need to convert each page individually, which significantly reduces the scanning time.
2. Large-format scanning: This type of scanning service specializes in capturing superior-quality images of large physical documents, such as those measuring 54 x 72 inches. You can customize the scanned documents’ color, size, resolution and file type. Examples of such files include posters, maps and architectural plans.
3. OCR processing: OCR processing services provide fully editable scanned image files. OCR technology converts scanned images into text-searchable documents, allowing you to edit text easily without affecting the original font style.
4. Microfiche and microfilm scanning: These services convert data stored on tapes and microfilms to indexable digital files, making it easier to share, store, access and retrieve digital files.
5. Off-site and on-site scanning: Off-site scanning services digitize documents at their facilities. If you entrust classified or sensitive documents to such a service, verify that it passed numerous clearances, such as FBI background checks and fingerprinting. Alternatively, you can choose an on-site service to perform such scans. However, on-site scanning can be slower and more expensive than off-site scanning, as high-volume equipment is usually too large and sensitive to transport to a client location.
6. Medical record scanning: When it comes to paper vs. electronic medical records, there’s no question that electronic records are more convenient and secure. Still, any provider you select to scan medical records must comply with HIPAA laws.
7. HR, accounting and legal: Specialized departments can benefit from document scanning services that securely organize highly confidential employee documents, detailed bookkeeping records, and legal files in one place. Scanned documents can be accessed exclusively by the appropriate department or shared for collaboration when permissions are enabled within the document repository.

Tip

Building a customized Microsoft document management system can be a convenient solution for companies that work predominantly with Microsoft applications.

What are the biggest barriers to digitizing documents?

Small companies often want to go digital but hesitate because of what’s involved — and what’s at stake. Graham noted that small businesses face several common challenges when considering document digitization. “The biggest barrier to convincing a small company to digitize its documents often comes down to a mix of perceived costs, lack of familiarity with the process and resistance to change,” Graham explained.

• Cost concerns: Digitizing documents can feel overwhelming for a small business, especially when budgets are tight. Expenses like hiring a scanning provider, paying for a cloud storage service and not seeing an immediate return can cause hesitation. “Many small companies perceive digitization as expensive due to the cost of scanning hardware, software solutions and cloud storage,” Graham noted. “Some worry about recurring costs like subscription fees for document management systems or data migration services.”
• Awareness of the process: Many small businesses don’t have a clear picture of how digitization works, which can make the process seem more complicated than it really is. Without that understanding, it’s easy to focus on perceived costs instead of the benefits. Graham said educating businesses about the process can help highlight advantages like improved efficiency, stronger security and long-term cost savings.
• Resistance to change: Small businesses may be comfortable with their existing paper-based systems and hesitant to adopt something new. While that’s understandable, Graham said concerns about learning new technology or disrupting daily routines shouldn’t stop companies from taking advantage of the benefits that digitization offers.

What are the greatest risks of not digitizing documents?

Putting off digitization can leave your business exposed to several avoidable risks, including the following:

• Document loss: Physical documents are easy to misplace and vulnerable to damage or human error. “Unlike digital files, physical documents often have no backup, making recovery sometimes impossible,” Graham cautioned.
• Decreased efficiency: Searching for, filing and managing paper documents takes time and can require additional staff just to stay organized. Relying on paper can slow communication, delay decision-making and disrupt workflows. “Many physical filing systems cannot manage version control,” Graham warned. “This becomes especially challenging when a small company needs to produce an ‘official’ record during an audit or legal review.”
• Higher operational costs: Maintaining a paper-based system often leads to ongoing expenses that add up over time, such as:
  • Physical space for filing systems, including office space or off-site storage
  • Office supplies like paper, ink and folders for printing and copying
  • Additional staff time or overtime spent managing paper documents
  • Security measures to protect sensitive physical records
  • Environmental costs tied to paper use and disposal

You know that a budget is an incredible tool for reducing your debt and building your savings. But the thought of creating a budget from scratch can be overwhelming.

It’s possible to start with something simple. The simplest budget, the 80/20 budget, advocates committing 20% of your income to savings and 80% to everything else. Similarly, the 50/30/20 budget has you put 20% into savings, then divides the remaining portion into 50% for needs and 30% for wants.

But if you need something a little more specific and structured than that (but don’t want to commit to a full budget worksheet), there is a happy medium. The following five-category budget allows you to break down your spending into simple, basic categories, so you can see where your spending should line up and make adjustments if necessary. If you follow this budget, you’ll automatically be putting aside a portion of your money to both debt pay-down and savings, helping you reach your financial goals that much sooner.¹

Housing

One of the most important budget categories is what you spend on the place you live. Ideally, housing should take up no more than 35% of your take-home income.

Note

Your housing budget includes the mortgage or rent, plus every other housing-related expense: home repairs and maintenance; property taxes; utilities such as electricity, gas, water, and sewer; and homeowners or renters insurance.

If you live in a high-cost-of-living area, hitting this figure might be more of a struggle.² If you truly can’t trim your housing costs to 35% or less of your overall budget, you must look for ways to trim the other categories of your budget. Or, you may even reconsider your living situation: Could it be time to refinance, downsize, or take on a roommate? The important thing is that you have room in your budget for the necessities of life, including saving for the future.

Transportation

You might love luxury cars, which is fine as long as transportation expenses take up no more than 15% of your take-home income. If you have a car, you also have to account for the maintenance and upkeep of that car—not just the expense of your auto loan, if you have one.

Note

Remember, transportation isn’t just your car payment. It includes everything: gasoline, oil changes, car washes, tune-ups, and car repairs such as a new radiator or timing belt.

Your transportation costs also include the amount you pay for parking, and if you ride public transportation, the amount that you pay for bus, train, or subway fare.

Other Living Expenses

Other living expenses, which are predominantly discretionary expenses, should take up to 25% of your income. This includes recreational activities such as eating at restaurants, buying concert tickets, buying new clothes, going to sporting events, and taking the family on a nice vacation.

Your cell phone plan, cable bill, and other monthly subscriptions also fall into this category, unless you need them for work. Look for ways to cut down on miscellaneous expenses if your spending outpaces your earning.

Savings

The saying “pay yourself first” is a good motto. With each paycheck, budget to save 10% of your pay. You might even set up a separate account that’s less accessible, to reduce the temptation to spend this money; consider putting it in a money-market account or high-yield savings account so you can earn a little interest.

Your savings are predominantly for an emergency fund, retirement, and investments such as a new home or the kids’ future education.

Debt Payoff

Debt payoff should consume up to 15% of your income. This includes your credit cards or student loans. It does not include your mortgage payment or car payment, which are listed under “housing” and “transportation.” It does include any extra payments you’re making toward your mortgage and car loan beyond the minimum.

The 80/20 budget and the 50/30/20 budget both advocate savings rates of 20%, but under these budgets, “savings” included debt pay-down.

In this five-category budget, your savings and debt are listed as two separate categories. With 10% for one and 15% for the other, you’re actually spending 25% (in total) on a combination of savings and debt pay-down.

This is even more aggressive and ambitious than the other two budget models recommend. Use this five-category budget if you would like to create a workable budget that’s slightly more detailed and effective, but not overly detailed or complex.