Girl, Get Your Life Together!

Anatomy of the Returning Spree

2011-01-27T16:31:00.000-08:00

And the Mighty,Too, Shall Fall... (sort of)

It's been 27 days since I committed to shopping in my closet only. And in the spirit of transparency, I have to admit that I bought a red dress using a gift card that one of my close friends had given me and found that I had to pay the difference between the cost of the dress and the value of the card. I paid $18 for a Calvin Klein red sheath dress that fits me well, which I plan to wear as soon as the weather permits. Yum!

The Returning Spree
What made me feel not so bad about the $18 purchase (even though I did deviate from my initial SMART goal) was that I spent a larger part of my time in department stores during on the onset of 2011 on a "returning spree." Let me be the first to coin this phrase. The "returning spree" is the inverse of the "shopping spree". Instead of going to stores with the single-minded focus of spending money and cluttering your home with unnecessary items, a "returning spree" seeks to increase your income and remove unwanted, unneeded items that clutter your home and possibly your spirit.

Case Study: Post-Holiday Returning Spree

Here is the financial bottom line to my most recent returning spree.

Astringent to Duane Read $5.87

Writing Course $340.00

LIRR Tickets $33.00

Skirt from Marshalls $17.00

Total Income Generated on Returning Spree $385 .87

Preparing For Your Returning Spree
1. Don't Discriminate: Do not limit the focus of your returning spree to apparel, services such as internet, cable, Netflix, and the like are also fair game. Think about electronics, houseware, and insurance that you have left untouched or do not suit your needs as well. Also, be open to returning everything possible,(assuming that cost of returning an item is not greater than the actual value of it) every little bit helps.

2. Receipts and Return Policies: If you do not do so already, hold on to the receipts of your purchases for as long as the return policy states. If you have buyer's remorse, your receipts and knowledge of your rights as a consumer, will neutralize that feeling in addition to raising your cash flow.

3. Be Prepared For Resistance: Luckily, the Duane Read cashier said nothing to me when I approached her register, took out my crinkled receipt, smoothed it out along the edge of the counter, and asked that the full $5.87 be credited to my credit card account, patiently waited for her complete the transaction, and check my new receipt before exiting. Perhaps she knew the value of money, perhaps she was thinking about her lunch break, perhaps she was thinking about a possible ringing in her left ear. Either way, it was not my problem to justify my money moves or shift my financial thinking to be more aligned with hers.

4. Have a Plan B: Maybe you lost your receipt or a tag is missing. Ask to speak to the manager to see if store credit or partial refund could be arranged.

5. Leave the Store, Do not Browse: Your purpose for entering a store is to return an item in order to increase your income. That means that you should not find yourself walking around the store, looking to purchase something. Though tempting, it will sabotage your financial bottomline.

Post-Returning Spree Decisions

Earmark the Savings for Paying Down Debt or Increasing Emergency Fund: Try to conduct all post-returning spree payoffs within 2 days of the big event as not to lose momentum or "nickel and dime" yourself back into the red.

Involve Your Friends: Tell your friends how easily you were able to jump-start your journey toward financial fitness. You can also barter items that you were unable to return with groups of friends. This makes saving not only financially rewarding, but socially responsible as well.

All Good Things Come to An End

I will be happy when I no longer have to rely on "returning sprees" to increase my income. When my financial decisions are clearly aligned with my priorities, I will not have to return several impulse buys or reconsider a service because I would have done the financial thinking beforehand.

Be S.M.A.R.T. not STRONG

2011-01-09T13:20:00.000-08:00

Be S.M.A.R.T. not STRONG

In Ain't I a Woman: Black Women and Feminism, bell hooks, intellectual and cultural critic, discusses the downfall of one of the more unilateral characteristics that black people in general, and black women, in particular, pride ourselves on.

Strength.

As hooks explains it, strength has more to do with the ability to endure than the ability to overcome. And it's true. As it relates to money management, it takes a lot of strength to know the dire consequences of certain financial moves and yet follow through with them anyway.

But Girrl, you still standing! You still strong! You keep your head up!

The key to financial empowerment, though, has nothing to do with strength; it has everything to do with being S.M.A.R.T.

S.M.A.R.T.

Corporations and institutions run like corporations, such as the New York City Department of Education, large not-for-profits, and (non)-religious foundations, have utilized the structure of the S.M.A.R.T. goal to guide long-term planning, financial or otherwise. Anyone familiar with the use of SMART goals know that they have to be specific, measurable, attainable, realistic, and timely.

The benefits of the SMART goal is that it concretizes and focuses long-term plans, making them manageable and more easy to do-- hence, maximizing the chances of meeting and/or exceeding initial expectations.

Shopping S.M.A.R.T.

In the last post, I stated one of my core financial values: Spending money on experiences, home ownership, or learning is more valuable to me than spending money on items that do not appreciate in value. For example, I want to reallocate six months of "shopping free"savings toward funding a trip to Costa Rica in order to strengthen my Spanish skills in August or toward beefing up my condo fund. I have translated this financial belief into the following S.M.A.R.T goal:

From January 1, 2011 until June 30, 2011, each month, I will save the ~$225 that I spent on clothes, jewelry, shoes, and accessories (as evidenced by my previous VISA statements) toward the $1,500 cost of tuition, accommodations, and the like for Costa Rica or my condo account.

How S.M.A.R.T. is it?

S Is this goal specific? It's a 6-month goal with monthly benchmarks.

M Is this goal measurable? I can count and so can the bank tellers and accountants. $225/month is $225/month, not $224 or $223. My bank statements will reflect the growth.

A Is this goal attainable? I chose one financial value (meaningful spending) and applied it to one area of my life (shopping for clothes) so I will not feel overwhelmed or deprived.

R Is this goal realistic? Deciding not to shop for six-months is realistic. If I want to add nuance to my wardrobe, I can consult styling guides to create "more" outfits.

T Is this goal timely? My goal begins January 1, 2011 and ends June 30th, 2011.

Why Be Strong When You Don't Have To?

It has been nine days since I made my SMART goal. Having a goal that has beginning, end, and purpose has made the transition from not shopping for clothes to saving for a trip (or whatever else) more easy. The types of conversations that I have with myself are rooted in a cost-benefit analysis, which are grounded in my personal financial principles and values. It keeps me from having to deal with buyer's remorse, guesswork, and money-related drama.

Six Months of Shopping in My Closet

2010-12-30T10:59:00.000-08:00

"How Much Did You Say That Self-Improvement Was?"
Since the last time that I blogged about personal finance, a lot of things have happened. I left the classroom to work at the network level. I completed a costly degree in Educational Administration. I started taking writing classes and Spanish classes consistently. I consider all of these changes or decisions to be short-term and long-term personal and professional investments. So the costs of paying back graduate loans and the costs of tuition do not get me down. If, however, there were a reparations fairy with well-conditioned locks that viewed the cost of schooling and training as our 21st century version of the "40 acres and a mule" that we never received on this side of the Atlantic back in the day, I would happily accept all loan forgiveness plans and dissolution of mandatory payments.

I'm just sayin....

Where Did All of My Money Go?
What I have noticed, though, is that in my spirit of self-improvement, I have found myself also justifying purchases to stores for outfits, shoes, and accessories-albeit cute- because of the nature of my work, because it was on sale, because I "deserved it", because, because, because....

I also found myself charging lunches for $10 in addition to $5 breakfasts because I was on the run, because I so hungry by the time I ate, or because that was what my co-workers were doing. These credit card charges were in addition to whatever incidental purchases I made in cash: mid-morning runs for tea, cookies, bottled water, blah, blah, and blah.

Because. Because. Because.

I opened up my most recent credit card statement and saw that I had racked up $1,800 worth of debt in the last three months. After I subtracted the costs of tuition, car repairs, and my $16/month gym membership, I was still left facing $900 of credit card debt.

But where did all of the money really go?

Most obviously, the clothes went on my back. And the food, especially the dishes with rich sauces and generous portions contributed to the expansion of hips, booty, and thighs.

"My Family Thanks You!"
But here is the most obvious, yet unspoken place to which my money went: a stranger's dream and a stranger's family's dream of financial security, early retirement, private education from their children, that hip-replacement surgery, or that teeth-whitening treatment not covered by insurance. Whatever. And conversely, my spending to finance someone else's dream has by its very nature prolonged the time that it will take to realize mine.

Kakra, Kakra, The Chicken Will Drink Water
So with that, I have brushed off the old blog and would like to use this as a forum for accountability--for us to start thinking about how our impulse purchases keep us for getting one step closer to investing in something that brings more meaning.

I will save you from having to read until the end of the story because they all end the same: there will always be something cute to buy if you go shopping. So, I have decided to start shopping in my closet and start using the money that I had been spending on clothes toward funding my trip to Costa Rica in August for a Spanish class or towards a down-payment for a condo(or whatever else I may want to do by that time).

Mindful Budgeting Equal Success
I refrain from cutting out buying books or doing my nails monthly for three reasons. The first reason is that I am self-aware and know that eliminating those things from my budget would make me feel deprived. Secondly, the cost of a used book on amazon + shipping and a midweek pedi once a month are a fraction of what I have been spending on clothes yet provide me with such a sense of joy and abundance. Finally, I want to succeed. Success for me is identifying and implementing small changes over a period of time, not completely upsetting the ebb and flow of my life.

"You Talking to Me?"

Actually, I am. What are you thinking? What small shifts in spending can you make toward achieving your meaningful goals and aspirations? In the next entry, we will create SMART goals in order to frame our financial planning. SMART goals can help us become better, stronger, bolder, and more deliberate, and more courageous in all aspects of our lives...

You'll Have Enough Time to Sleep When You're Dead!

2010-01-25T09:51:00.000-08:00

New Year, Same SH@t?
The answer to this is a hopeful "no" for many of you as I have decided to revisit this blog with a new purpose in mind. For a year or two, I have been writing about money. How to save it. Where to get it. How to stretch. From whom to hide it. The history of financial success and enterprise amongst our people.

I have learned a lot from all of you and I am hoping that you picked up a couple of things from me because I have been inspired to change. A new turn in my personal development. During this bend of my journey, I am hoping to use this space as a virtual empowerment club. A safe-space where we can dream really big (or small), but absolutely and always meaningfully about what we want out of life-- whether it be financial, personal, health-related, and professional.

If you want to do any of these things with me, please write your name next to the number! Please also generate your list, so I can write my name next to ours!

You'll Have Enough Time to Sleep When You're Dead!
1. Get a Brazilian wax.
2. Play mass in somebody's Caribbean
3.Write and publish children's books.
4. Be in love.
5.Write and direct a small play.
6. Have my own home and entertain guests there.
7.Become fluent in Kreyol and Spanish.
8. Open an all-girls school.
9.Become a millionaire through saving and investment.
10. Be interviewed on television.
11. Learn the damn turns in salsa without getting dizzy.
12. Have a ladies' night once a month
13. Have a small exhibition of my photography.
14. Sleep in a tent in the woods for a night.
15. Go to a Beres Hammond concert
16.Be a good friend/confidant.
17. Have thighs of steel (think a not-to-so-diesel-Serena)
18. Become a vegetarian.
19. Go to strip-club
20.Go to London
21. Bed-n-breakfast in the mountain here or abroad.
22. Do a colonic.
23. Fast for 7 days.
24.Meet Michelle Obama and have lunch with her.
25. Visit all of the hubs on blackness throughout Latin America
26. Learn to drive on the highways with confidence.
27. Take a cooking class.
28. Learn Swedish ( or somebody else's) massage.
29. Pose nude for an art class (after #17)
30.Take pictures of black folk in the South and interview them about their lives.
31. Do a family tree project.

32. Learn to say "yes" even though I am scared.

33. Learn when to say "no" when I really need it.

34. Take classes in Caribbean, African, Afro-Latino and African-American women's lit.

35. Open up a UPS store.

36. Have a flea-market stall.

37. Get a black belt in Tae Kwon Do

38. Go to Hot Yoga classes.

39. Wear a really ugly wig and pick-up random men in a bar for kicks.

It's a Living, Breathing Document

Just start writing. Nothing is too insignificant. Let's share our lists and our support to actualize as many of these dreams as we can.

Taking the Training Wheels Off

2009-06-29T18:05:00.000-07:00

Theory Shameory: The Bridging the Disconnect between Money Thoughts and Money Practice

I have to admit that I am a self-help buff. I love the idea of looking within with the goal of leaving better than when I chartered out...moving some stuff in, throwing some stuff out, collapsing this, expanding that... you get the hint. But, here is the caveat about self-help. It does not work without practice. AND it requires patience, commitment, and adaptive problem-solving.
The only way that you know you have transformed is not when things are ideal: when there is nothing that you see that is cute in the store, you have no battling financial priorities, or you have a volume of discretionary income (although some pundits that there is never discretionary income see Michelle Singletary) but when your financial circumstances are complex: you like to shop but you need to save for school, you just got paid and your irresponsible sister asks for a loan, you received a promotion and a raise and the pressure to keep up with the Joneses is surfacing...

Taking Off the Training Wheels

In the latest Essence or Ebony, it would be easy to take a quiz on financial theory, tally your score, and label yourself highly financially savvy or literate. There is nothing easy about standing strong in this consumer-heavy, predatory world. But you know that you have learned everything that you can learn about this. Now, it is time for you to get out there and make moves. Will you make mistakes? Possibly! Will you revert to your spending ways when times are tough? Perhaps! Will you be better off, more confidence, more self-authoring, a pleasure to around, an envy to your former unevolved financial self? ABSOLUTELY!

Never Go To War Without Armor

It's your choice and you can double and even triple-up depending on the financial situation. Choose from any of the following as you build-- dollar by dollar, decision by decision, reflection by reflection, YOUR financial future. Solid. Meaningful.

Create and repeat your money mantra.
Do NOT go there if you know you are tempted to spend.
Call your girlfriend to smack some sense (cents) into you.
Leave your wallet at home.
Create a budget and stick to it.
Make it a community efforts.
Ask to speak to the manager. "I am willing to pay..."
Barter with girlfriends.
Pack your lunch.
Leave it for 2 days then come back.
See if you have it in your house already.
Clean your house and sell whatever is left.
Turn your passions into profit.
Marry wealthy. (SIKE! just to see if you're paying attention)
Pay in cash.
Stick with big bills.
Find several functions for one thing. (Think: Is that a plastic bag or shower cap?)
Eat less.
Pick up the phone, don't send a text. (pre-pay it)
Ask for sponsor.
Stay in.
Journal about it.
Buy it used/Share it.
Don't be afraid to negotiate.
Return it if you can.
Pay yourself first.
Look within instead of around.

Coming Out of Retirement

2009-06-15T19:24:00.000-07:00

Coming Out of Retirement

I feel like Jay-Z. My public has spoken. They want those gentle reminders to save, to stop spending, to get their stuff together. And as a good public servant, I must oblige. Here are a few things that you need to reflect on before the summer gets you too lazy to stay focused.

Summer-Ready Money Checklist

Have you started saving for retirement? checked the beneficiaries on any financial accounts? reevaluated your risk tolerance?
Have you been keeping your spending journal current?
Have you written a will? (Even though we are young, getting started early when there is time helps us avoid panicking, confusion, and fighting when you have already passed.)
How is your emergency fund with 6-12 months expenses looking?
Are you paying your bills when they come or are you waiting for a "convenient time" to pay?
Are you using your summer sun time locked up in a mall shopping?
Have you set short-term, manageable goals (ie earn through saving or extra work $1,000 per month for 10 months for the down-payment on that house) ?
Have you transformed a passion or hobby into a profitable endeavor?
Have you aligned your spending patterns with what you truly love? (That is, are you spending all of your money on lattes when you really could be putting it toward that trip to Ghana you have been claiming you can't afford?)
Are you selling stuff that you don't need on amazon.com, textbooks.com, or ebay.com?
Are you hating on someone else for their financial discipline?

Going Away, Coming Home

This is one of the recurring themes throughout post-colonial Caribbean literature. The idea that one can't go home twice. The home that once was is no longer because the self that has left has transformed. I am happy to say, though, when it comes to my passion of financial empowerment for black women, this is not the case. I just needed some time to place other parts of my life in order. I can not promise the length and nature of my future blogs, because truthfully, like my Caribbean ancestors, I am not the same person that started writing this blog a year ago. Can't pinpoint how she is different, but she told me that she wants to take it easy for the summer.

Marriage, Feminism, Babies and Love: A Reaction to Rebecca Walker's Baby Love

2008-10-03T09:54:00.001-07:00

Hey Marta,
Sorry for taking so long. Actually, I was in Limon, Costa Rica. Its a province along the Caribbean that is 40% black, descendants of Jamaicans mostly.

As for the discussion of marriage, feminism, and children, it has been a couple of months since I have read that book, been in that relationship (we broke up), and felt the pressure to think about any or all of the above. Honestly Marta, as it relates to some of the issues that Walker addressed in the book and my growing and ever deepening understanding of what it means to be a woman, I have decided to remove the labels and take it as humanly as possible. that is not an excuse or a way to avoid the topic, it's my approach to dealing with my tendency to be extreme, in and outside of the discussion of feminism.

I think that I was raised to be strong, resourceful, and self-sufficient as a survival strategy. I did not grow up around men. I did not know them and did not trust and/or like the ones that I knew including my father and brother at that time. They, honestly, did not serve as cornerstones to my existence. My mother did not date much, so I grew up thinking that it was normal to be alone, not to make much of men, and be comfortable and happy with it.

Fast forward to now, after having had relationships that ended because the men thought that I was not domestic enough, or emotionally available enough, or whatever... I really don't think about it so much now because I have found that when you actually like someone, you do things to make them happy within reason and it goes for both sides. I am dating this new guy, a Haitian dude, and I approach it with as much neutralness as possible, if you know what I mean. I think that working, studying, and hustling, makes anyone tired, so if I can, I will try to pick something up for him and I notice that he does the same for me.

I am learning that not all men want to dominate and often they have just as much fear and as many insecurities as it relates to losing self, abandonment, and hurt that women have. I feel that I have found that I am not a victim, and I think that feminism, at times, has a tendency to make you hyper-sensitive to the micro elements of dealing with another human being. As I have been dating and breaking up and thinking some more, I feel that the idea of "compromise" is a little appealing for me because I have done so much by myself in my life and I feel very self-actualized in a lot of ways... that the idea of working together with someone else would be challenging,but also very rewarding... a person that is worthy, of course.

As for babies, as a classroom teacher, I am not interested in having babies anytime soon. I am not interested, at this time, to sacrifice my free time, autonomy, or change the flow of my most basic and guarded rituals (ie. weekend retreats, emailing at 11 pm, sleep, movement without second thought). I keep the option open, though,because I think there will be a time when all that I am doing for/just/and all about me will lose its appeal and I am going to want more. I also think about the legacy that I feel that I will have to live up to. My mother is such a loving, nurturing, and giving woman and it frightens me that I would not live up to her legacy sometimes... you know? but then I think about how nice it would be to have a relationship that I had with my mother with my own daughter...-Kara

“Your Pen Can Be Your Best Frien':” Journaling and Money Metacognition

2008-07-16T05:31:00.000-07:00

The August issue of American Journal of Preventive Medicine will publish Kaiser Permanente’s Center for Health Research findings which conclude that keeping a food diary can double an individual’s weight loss effort Similarly, a study in The New England Journal of Medicine uncovered that those that did not jot down their food intake on a daily basis underestimated their caloric levels by an average of 1,050 calories.

Generally speaking, the act of journaling—the process of reflecting and thinking metacognitively on a particular set of behaviors and decisions— is an excess-management tool that can prove successful for not just overeaters, but for overspenders as well. Many financial coaches encourage overspenders to keep meticulous notes about their purchases in order to identify patterns in their spending habits, holes in their budgets, and areas for money management improvement. Less attention is paid to the psycho-emotional triggers that provoke and incite extraordinary consumption.

However, when it comes to embarking on the road to financial recovery, unearthing the why of spending, is just as important as detailing the what of spending. Include observations, anecdotals, and notes on the nature of your financial environment, external spending triggers, and saving incentives as an integral step toward achieving a fuller, more holistic, and more realistic picture of your spending persona.

1. Detail the Number and Nature of Income-Generating Establishments in Your Immediate Spending Environment.

There is a strong connection between t the nature of our immediate commercial environment and what we spend our money on. I live in a predominately black, working class community in Queens and the appeal to spend my money is geared toward acquiring certain products and services over others.

Within a three-block radius, there emerged a strong message about the options that I have in my neighborhood as a consumer. I counted 5-7 different storefront churches, 3-5 barber/beauty salons, 5-7 franchised or “mom and pop” fast food restaurants, 2-4 corner stores (or bodegas), 2 supermarkets, 1 library, 1 check cashing place, and a liquor store. Implicit in the disproportionate representation of certain types of stores and the all-together absence of others (i.e. community centers, bookstores, doctor’s offices, banks), is that money in my community should not go beyond catering to personal wants; money in my community is better used for depreciable items, not for investments and savings; money in my community will be used (ironically enough) toward my nutritional detriment. The next time you take a walk through your neighborhood, take note of what your commercial district is telling you about money.

2. Track How You Spend with Your Friends.

Are you a teacher, social worker, or not-for-profit administrator that is expected to spend as freely as your f investment banker and corporate lawyer friends at parties, social gatherings, or restaurants? Are you an “up and coming” young professional with a lot of “starving artists”, “down-on-your-luck” friends that is expected to cover their expenses when it comes to most social outings? Writing down how your financial behaviors shift when dealing with friends will illuminate patterns; this data, if used, can shape your future interactions and money-related dealings with them.

3. Monitor Your Emotional Triggers While Overexposed to Media Antics

The tendency to overspend, like the tendency to overeat, is rooted in our emotions. Despite what people would like to think, money is a matter of the heart and soul. Our belief systems and our learned behaviors from friends and family dictate a lot of our spending habits. But you know what especially drives our consumption? Big ‘ol juicy insecurity! Yes, the fear that we just missed the mark, are not quite as good as (fill in the blank), and are inherently flawed. Overexposure to big business media antics compounds this fear and drives you to spend. Concretely, while watching television, pay close attention to how you feel after you imbibe the lies that media try to extol. Are you insecure about your beauty? If so, monitor how you feel after sex is sold to push new make-up products, gym memberships, and diet systems. Are you insecure about the amount of money that you make? Be cognizant of how you feel about yourself and your financial priorities after watching commercials for luxury vehicles, reality shows that flaunt wealth and fame, or movies that romanticize excess.

2008-07-11T18:50:00.000-07:00

"Let's Make It a Vacation to Remember”: Taking Time Off to Put Your House of Finances in Order.

Let's Make a Vacation Out of It
Data from the World Tourism Organization (WTO) find that America ranks amongst the lowest in developed countries in the average annual amount of vacation time their citizens receive. Member-countries of the European Union (EU) like Italy, Germany, France, and the United Kingdom receive, on average, 42 days, 37 days, 35 days, and 28 days; respectively for time-off. Canadians benefit from an average of 26 days of leisure time yearly; the Japanese receive 25 days, while the United States trails behind with 13 days per year.
The United States is also one of the only developed nations without vacation-time minimums mandated by law. Employees in European Union countries are entitled to four-weeks paid vacation by law. For Canada and Japan, there is a legal mandate that workers receive a minimum of two weeks.
The irony of this phenomenon is that despite the paltry serving of freetime, Americans are reluctant to redeem their vacation time in its entirety. Some studies cite the behaviors of peers and supervisors as a major influence as to their unwillingness to leave the office. Other reports maintain that it is the demands of the workload that keep them chained to a desk and not smelling the roses.
Nonetheless, these reasons do not blur the necessity of taking time away from work. Distance from the job gives you perspective on your career decisions, reconnects you with your family, friends, and your inner self. If, however, you are an American that has completely internalized the Puritan work ethic and finds that time away from work is for the idle and weak, take a couple of days off anyway. But do not do it for rest, relaxation and fun, do it for reassessing the state of your finances, charting your next career moves, and streamlining your money outflow.

5 Vacation Do's and Dont's
1. Put it in writing.
With work not as priority for a few days,you will best able to reflect, create, and think on the shape of your finances. Get comfortable. Find a spot in your home where you are be alone. On three separate sheets of paper, you are going to brainstorm all of your financial accomplishments, your present financial responsibilities, and your future financial plans. Writing everything down gives you the beginnings of a blueprint and guide to gauge your progress toward your particular financial goals. Seeing your financial "have dones" and "have not dones" in black and write may allay your concerns, shift your financial priorities, or catapult you into action.
2. Get really defensive.
When it comes to money, we focus our attention on playing "financial offense". We actively engage in finding positions that pay more. We embark on financially sound endeavors--such as entrepreneurial projects, investment activities, and reading fiscally savvy magazines and books. That is, we seek to increase our income by bringing in more money. When we are on-the-go everyday, it is hard to stop and take total financial inventory. But maximizing our income also has to come from playing strong, if not stronger "financial defense." Unlike "financial offense", financial defense focuses on what income you already have and attempts to reduce what money goes out of the budget. Strengthening your "financial defense" can create as much surplus income as a part-time job if done methodically and consistently.
Things to think about during your days off could include: Are there cable services that I do not need? What foods do I seem to let spoil because I don't really eat them? Have I taken the 6-hour class to reduce my car insurance? Have I checked the website of my health insurance carrier for discounts on health and wellness services? Have I called my student loan provider to inquire if I could defer or cancel my loans in full or in part? Is there a way to reduce the amount of times I eat out? Could I be clipping more coupons?
3. Organize your files.
When we leave for work, we physically leave our homes. Given the demands of some of our jobs, we spend more time at work than we do our own homes. And once we return home, we may take a cursory glance at financial statements, policies, and reports or even pile them up with the intention of getting to get to them later. But usually our priorities boil down to tending to the basics: family, food, and rest in order to prepare ourselves for the same routine for the next day.
This trend leaves our finances in disarray. Make organizing your files a three to five day project. On the first day(s), locate your important policies, tax documents, titles, and deeds. Spend one day purchasing basic filing tools: folders, file cabinet, stapler/staples, paper clips, etc. On the final day(s), file accurately and systematically. Once the foundation has been created for storing and retrieving files, updating them should be quick and easy.
4. Clean-out closets.
With a few days to yourself, find out what hidden treasures and scary secrets lurk inside your closets. If you are cleaning a clothes closet, try the following the system: a) store out of season clothes away b) return unworn outfits with tickets to the store (if you can), c) identify clothes for consignment, trading with girlfriends, or potential yard sale, and d) set aside clothes that require repair, dry cleaning, and washing. If you are brave enough to tackle a closet with appliances, the system is much easier. For the appliances that you use, keep 'em. For the appliances that you don't, chuck 'em.
5. Pick up the phone.
There is only so much time that you can steal away from your job to conduct personal matters. The nature of correspondence that includes matters of money are usually time-consuming, involve paperwork, require follow-up, and include more than one person. Take advantage of your time at home to refute errors in your credit reports, schedule information interviews for prospective career advances, confirm doctor appointments, and negotiate with creditors about outstanding debt.

Penny-Wise and Pound Foolish: Asserting Financial Maturity in Spending Matters

2008-07-01T18:33:00.000-07:00

The driving philosophy behind Our Time Press' On the Money has been one of mindful consumption, media savvy, and educated consumerism. Each week there has been a discussion on the importance of saving, curtailing indulgence, and reducing expenditure. There are financial circumstances, however, that warrant that we spend more in the present to stabilize our financial long-term goals and overall life plans. Avoiding the trap of being "penny-wise" and "pound-foolish" ", the phenomenon of being overly conscientious about trivial financial matters while simultaneously being inattentive to important ones to such an extent that opportunities to save or make large amounts are missed, are indicators of sensible, mature, and healthy financial outlook.

Nutrition and Health

Taking your lunch to work each day has always been a habit of the financially advanced. With the average cost of a lunch between $8-$10 a day, you can stand the chance to save close to $200 monthly or $2,400 annually. The financial benefits of "brown-bagging" are based on the assumption that the lunch is healthy and provides the body with the needed nutrients to sustain basic or optimal health. It is not uncommon to hear people purchasing large amounts of fried food at fast food restaurants or resigning their lunch options to cold cuts or a slice a pizza because they are inexpensive and keeps them from spending. If, however, a high fat, high salt diet serves as a mainstay in the life of the "pound-foolish," the small amount of money spared from lunch costs will be offset with price of exorbitant medical costs associated with treating conditions such a chronic anemia, high cholesterol, obesity, high blood pressure, or diabetes.

Furniture and Appliances

A beautiful living space is important to many of us. When we see our inner style and taste reflected in our immediate environment, we experience a sense of belonging, peace, and connection to it. While money is always at the bottom line of any purchase, buying a big-ticket item, which will be highly visible and often sentimental for items such as furniture and /or major appliances (i.e. washer/dryer, refrigerator, cooling system) complicates the decision process. Buying low-quality appliances and furniture because they are inexpensive will be more costly in the long-run due to high wear-and-tear, high turnover due to replacement or dissatisfaction, and repair and maintenance fees. As a rule of thumb, buy once-in-a-while and well, so you don't have to buy often.

Insurance

Life is full of uncertainty. That is why purchasing insurance , a risk management tool, of most kinds is so important and useful. Not only does insurance protects against catastrophic losses, it safeguards earnings and resources, and provides settlement money so that small claims do not turn out to be big ones. So, if you are planning to buy a plane-ticket 6-12 months in advance, buying travel insurance may come in handy to ensure that unforeseen commitments allow you to reschedule your flight without much hassle. Paying the $20 co-payment to see your doctor as soon as you are not feeling well may save you financially in the long-run. Early detection of an ailment make treatment more cost effective and sustainable. For those of you that drive around a city as congested as New York City without car insurance of any kind are looking for problems. Purchasing the most minimal amount of coverage protect you, your loved ones, and innocent bystanders with medical protection and legal recourse.

Broke and Broken Hearted: Love, Marriage, and Money

2008-06-24T11:49:00.000-07:00

Boy Meets Girl

"First comes love, then comes marriage, then comes baby in the baby carriage." At least, that's how the song goes. Maybe lyrics of financial counseling or talks of money matters would put a damper to such a catchy and whimsical tune. But Stella Dart, 34, a woman who graciously accepted an invitation to tell her story of love and money for Our Time Press, implores young adults to have the heavy, uncomfortable talks about money prior to nuptials, so marriage can have more dimension, perceptive and duration than that of the content of a school girl's love song.

First Comes Love

KIS: So, tell me your story.

SD: We met at a SOBs [Sounds of Brazil] at Varick Street. I was moving to California to start graduate school and I thought it was my last time going out in New York City. Muhammed asked me to dance. I thought he was Brazilian. He seemed interested in what I had to say. He asked for my phone number and later told me that he was from Morocco which I later found out was a lie. He was really from Tunisia.

KIS: Why would he lie about his nationality?

SD: Muhammed thought I would not know about Tunisia, which he was right about. So, he said Morocco because it was better known. Looking back, it was a pattern--lying-- smoothing things out with lies. He had also lied about what school he went to. I guess because I was going to a prestigious school in California.

Then Comes Marriage

KIS: But, obviously, you overlooked all of that and married him six months later.

SD: Yes, because I was utterly swept off of my feet.

KIS: What exactly, "swept you off of your feet?"

SD: Muhammed was very attentive. He understood my sense of humor--which not many people do. He was really smart and really sweet. He was emotionally open. He just...touched my heart.

KIS: How old were you when you married?

SD:I was 26. I wasn't planning to get married, I was planning to go to California.

KIS: Did you guys talk about financial roles and responsibilities before getting married?

SD: No.

KIS: So, what were discussions around money and marriage like?

SD:The focus was on him getting himself educated and together.

KIS: Wow!

Then Comes Fighting, Foreclosures and Your Finances Completely Disparaged

KIS: What did you begin to notice about his money management (or lack thereof) once you were married?

I began to notice that there were cultural differences with regard to money. For example, I noticed that a lot our money was tied to his family obligations back in Tunisia. Also, I realized that I was very cautious with money, not materialistic. But he was concerned about name brands. It was annoying for him to care about that. He was always trying to keep up with the "Joneses."

I also think that because he spent my money freely, he did not have respect for how hard I worked to earn it. Now, I have more respect for my father now because he drove an hour and a half each way to a hell hole [referring to his job] because he had four kids. We went to camp. We went to college. Even if he did not like it, he still got up.

With this marriage, I felt that I had no freedom or stability. And you are supposed to give up some freedom in exchange for stability with marriage. I got nothing.

KIS: Where do you think you would be financially had you not married this guy?

SD: I would have probably stayed in California, perhaps in a different career from teaching. One that paid more. I would like to think that I would have had a down payment on a house by now.

KIS: With hindsight being "20/20", what advice would you like to give for those thinking about marriage?

Look at a man's track record. Does he finish what he starts? If he didn't finish his education, ask why.
Look at his job history. Is he jumping from job to job. You want someone to prove that he has accomplished his goals--that he follows through.
Don't have a joint checking and savings account for a while.
Don't think about "potential." Look at what he has going for him right then, not the future. I used to think that Muhammed was really smart and could do so much. But now, I don't think about "could", I look at who he is at face value...

KIS: Wow! Thank you for your insight. I appreciate your vulnerability, wisdom, and perspective.

SD: You're welcome.

5 Habits of the Highly Indebted

2008-06-17T05:33:00.000-07:00

Brothers and Sisters From Another Mother?
The highly indebted by way of poor financial choices, consumer charging, and unrealistic standards of living come in an array of sizes, hues, shapes, languages, and ethnicities. Despite these superficial distinctions, there remains a unifying mentality and set of behaviors that unite this demographic. Their movements, habits of being, priorities, and ways of navigating have striking and eerie congruence.

5 Habits of the Highly Indebted
1. The highly indebted see an increase in income as an invitation to increase expenditure.
Whether it be a windfall through an inheritance or bonus or a steady increase in income from a raise or an investment dividend, more money is usually considered a positive and good thing. In responsible hands, it could be used for college-funds, bolstering emergency funds or paying off debt. For those with trouble staying in the black, however, more money may lead to more money problems, not less. This is because the highly indebted create a direct relationship with money and expenditure. That is, the more money there is, the more stuff there is to buy. In theory, this principle should not create any economic burdens if the increase in expenditure is offset by the increase in income. What gets the highly indebted in trouble is this is not their financial model. The increase in income inspires an increase in expenditure that is disproportionate to the amount of the rise of income. For example, a 10% increase in income may spur a 25% increase in spending, leading to more debt.

2. The highly indebted employ J. Wellington Wimpy logic to finance and commerce.
J. Wellington Wimpy or just Wimpy was the well-dressed, hamburger-eating friend of Popeye, the main character of Elzie Crisler Segar's cartoon and comic strip and cartoon of the same name. Wimpy was very intelligent and well-educated. His famous line, "I'll gladly pay you Tuesday for a hamburger today" reveals the less-than-flattering components of his financial persona. His financial identity was one based on the dependence of credit and loans. Interestingly, once J. Wellington Wimpy acquired what he wanted, he simultaneously displayed a reluctance to repay or honor his debt. Similarly, those in the bowels of debt rely heavily on the kindness of strangers, credit cards, borrowing, and (empty) promises to acquire things that they want, and in the most extreme cases, their basics like food, diapers,or medicine and often respond despondently when asked to repay or acknowledge outstanding balances.

3. The highly indebted invite big business into their lives.

There is one reason that corporations spend millions of dollars on advertisements annually--whether it be 30-second radio plugs, billboards, mass emails, glossy magazine and newspaper pullouts, regular prime-time commercial slots, or once-a-year events such as the SuperBowl. The reason is because it works. Psychologists, marketing teams, researchers, and focus groups are handsomely paid to gain insight into human want and insecurity for the sole purposes of manipulating this information to meet their financial bottomline.

The highly indebted,nonetheless, can be found flipping through magazines, purchasing tickets to car shows, strolling through malls, browsing sales items at online sites, and watching infomercials. In other words, they nurture a relationship with big business and its peddling machine. The only way to diminish the influence that big business has on the lives of the highly indebted is for them to break off all ties. In particular, the highly indebted has to spend time doing things that don't include spending or overexpose them to mass media tools of financial persuasion--reading a book, exploring a hobby, volunteering time, or strengthening familial relations.

4. The highly indebted suffer from selective amnesia.

Listen carefully to the story of a highly indebted person. It may sound like: " I just charged a couple of things to the credit cards... just to treat myself because I work hard and deserve something nice... got a little behind on payments... Then, all of a sudden... I was $5,000 in debt... I don't know how it all happened... It was just a couple of purchases. I don't remember charging all that much." One of the best cures for this condition is the creation of and adherence to a budget. A budget does not rely on the failed memory of the highly indebted because it is written and unconcerned and unmoved by the moods, impulses, and vacillation of the highly indebted. Employing direct deposit to and/or automatic withdrawals from checking and savings accounts also buffers the highly indebted from the negative effects of their condition. These tools ensure that the highly indebted avoid late fees, benefit from incremental debt reduction, engender savings, and ultimately establish a solid credit history and standing.

5. The highly indebted think with their "Id" and not their "Ego" and "Superego".

Austrian born psychotherapist Sigmund Freud introduced the concepts of "Id", "Ego", and "Superego" to explain the driving forces behind the human personality. Simply, the "Id" represents the part of our personality that is driven by the need to feel good at any given time without consideration to the reality of the situation. In other words, the "Id" is fueled by the pleasure principle and cares only about its singular and immediate gratification.

On the other hand, the "Ego" is the part of the personality that is governed by the reality principle, which means that it understands that impulsive behavior and solely self-serving agendas have negative consequences for the individual and others. Finally, the "Superego" extends the reality principle to the point of morality. In particular, the "Superego" houses an individual's moral and ethical boundaries.

Ideally, these three components work together to establish a healthy Self--one that mediates the urges of the "Id" with the rigidity of the "Superego." When it comes to the highly-indebted, the "Id" is the dominant segment of the personality as it relates to establishing (or ignoring) financial limits. Evidence of this can be as benign as stopping for a beef patty before you reach home even though your partner has prepared something to dinner or as problematic as quitting an undesirable job on a whim with a mortgage and family to support.

Time, Money, and Happiness

2008-06-10T18:42:00.000-07:00

The life expectancy,--the average number of years to be lived by a group of people born in the same year, if mortality at each age remains constant in the future --of women and men in Zimbabwe is 40.5 years according to The 2007/ 2008 United Nations Development Programme report Human Development index, ranking it 151st out of 177 countries from which they have compiled data. The American Central Intelligence Agency (CIA) was a little less generous with time and projected that the average life expectancy for Zimbabwe women and men is 39.72 years; with males exceeding female life with 40.87 and 38.55 years respectively.

Ravages of poverty, chronic underdevelopment, and the endemic AIDS reality for many of our African brothers and sisters is a sobering reminder, that like money, capital, and other more tangible factors of production, time, too, is limited and the behaviors associated with what economists classically labeled "scarcity" have to be employed when dealing with this entity as relates to creating financially sound and spiritually rewarding decisions.

Think It, Plan It, Do It!

You are more likely to run out of time before you are to run out of money. This makes planning what you do with you money and for how long you do it that much more pressing. Last week, we focused our energies on uncovering the cost of the creative, the inexpensive, and the simple that bring joy into our lives. My short list included reading, dancing, writing, and meeting with friends for dinner. Identifying what brings you joy, however, is only part of the equation to happiness. The second and more practical component of this action plan is literally making time for it in your life. Please take 15 minutes to determine if you are devoting time to your happiness. It is often quite revealing that the things that we love to do the most, that enrich us, nurture our spirits, and center our lives are given no priority or attention in our daily lives.

10 Other Things That Make Me Happy &Time Spent on Happiness (weekly)

1. bubble baths 0 minutes

2.reading articles in Spanish 15 minutes

3. stretching 0-20 minutes

4.talking to my mother 4-5 hours

5.listening to salsa 2 hours

6.working on creative fiction pieces 30 minutes

7.making new friends 0 minutes

8.dancing in the mirror 20 minutes

9.lotioning with cocoa butter 1-2 hours

10. following up on Obama campaign 2-3 hours

Excuse Me, What are You Waiting For?

America is very fast paced. But who told you that you had to sprint? There will always be something to do, some agenda to siphon your time, some external catalyst to redirect or divide your attention--- something seemingly more important than nurturing your authentic self and aligning your money decisions with what satisfies you the most.

According to CIA statistics, life expectancy for Americans averages 78.14 years, 75.29 years and 81.13 for men and women respectively. We take for granted that there will be time to do everything, especially when compared to our kinfolk across the Atlantic. But the reality is that we will die eventually. Please make sure that you do not live a life full of regrets because you never identified or devoted time to your happiness.

Money Can Buy Happiness

2008-06-03T18:47:00.000-07:00

Can Money Buy You Happiness?
We live in an extreme society. A society where we can find the morbidly obese and the fatally thin, both by personal choice and volition. A society where there are those that work eighty hours a week while there are those that refuse to work any. A society of ultraconservatives and "bleeding-heart" liberals.
With such a polarized society, it's not a shock to find the discussion about the relationship of money and happiness as equally dichotomous and mutually-exclusive. To some, money does not create happiness; in fact, it is the source of evil. On the opposite side of the spectrum, we have those that worship money, elevating it to a status of omnipotence and employing all means to make more of it. Money and happiness. Those elusive powers and agents. We expend most of our adult lives in search of an abundance of both, one often at the expense of the other. A wholistic approach to understanding their relationship and striving for both, then, is in order to strengthen and sustain our financial and spiritual lives.
When It Can and It Can't
Those that claim that money causes or creates problems and that it has no bearing on contentment and self-actualization need to take a more thoughtful look at the face of poverty within this country and outside of its borders. Money can buy happiness in the sense that it grants options and voice to those barred from experiencing the most basic human experience, which, at a minimum, include health, education, safety, and life purpose.

Once these fundamental needs are met, an increase in money begins to take on diminishing returns because of our human capacity to adapt to our environment. This means two things. First, we get easily bored once we have grown accustomed to a new comfort, whether it be a new car, a new tummy and nose, vacation-home, or handbag. Secondly and equally important, we keep looking upwards and around at what the next level up has to offer. Newer. Shinier. Faster. Bigger. Sexier. This cycle of using money to make purchases of increasingly more exotic, extreme, and intense locations and experiences in hopes of attaining a sliver of happiness is what behavioral economist coin, "the hedonistic treadmill".

And getting off of the treadmill is hard largely because Americans have been conditioned through overexposure to big business media not to think for themselves. Not thinking for yourself leads you to value the opinions of others more than your own. Not thinking for yourself, additionally, puts you at odds with your authentic self and your personal truth. How many times have you been aware or noticed that following pattern: You are excited about the purchase of a particular item, fantasize about how it will complete your look, how important and sexy you will feel when you wear it or own it on your way to the counter or sales manager. You buy it. You're elated. You wear it and/or use it a couple of times. Weeks pass by and you are you not as excited about that same item that produced such an intense sense of satisfaction as you were before. So, you go shopping, looking, and hoping for something new to catch your eye to make you feel important, alive, and centered again.
Intuition would lead you to conclude, then, that shopping and buying a lot of different stuff is not going to fill that void,that thirst, and that want to be fully present. EVER. Yet, you continue to do it because you somehow trust the fantasy of television more than you do your own gut. You would prefer to feel that something is wrong with you and perhaps you are not buying the right item or enough of it to bring you joy, so you venture to consume more excessively and deliberately.

Stop This Treadmill! I Want to Get Off

Finding happiness with your money begins with first finding peace with yourself. This is not a call to throw away all of your worldly possessions or campaign to isolate yourself from the conveniences of modern society. What it is, however, is an appeal for you to reflect and unearth your values, interests, likes, and wants. Once you have uncovered who you are, you can then use your money to fund, enhance, and nurture these experiences. Below is an example of my interest and how much (or little) money I need to make me feel happy. Please take 15 minutes to do the same. You'll be surprised to discern if it is the nature of your spending and not necessarily the amount of money that you spend that is the source of your discontent or bliss.

10 Things that Make Kara I. Stevens Happy & the Cost of Happiness

1. pedicure

$12 every three weeks

2. dinner with girlfriends once a month

$15-$20

3.long walks

4.listening to live salsa

$0- $15

5. clean bathroom

$10 (cleaning products)

6.taking black and white pictures

$50-$75 a month for film and developing

7. taking an undergraduate Spanish course

$660 (community college tuition)

8. dancing Kompa

$10 (cover charge)

9. writing

10. reading (borrowed books from the library)

$10 (overdue fees)

One, One Full Basket: The Case for Contemporary Cooperative Economics

2008-05-27T18:38:00.000-07:00

Chico Rey and His Kingly Character
Last week, On the Money, ushered in a two-part discussion on the profitability of cooperative economics during the height of slavery in the Western Hemisphere. In particular, "One, One Full Basket: Chico Rey and Cooperative Economics" chronicled the financial acumen and leadership of Chico Rey, an enslaved African king who secured the freedom of his court, family, and himself through the practice of pooling money, resources, and abilities amongst community members.

Even though the canonized financial exploitation of Africans saw its end at the close of the 19th century in the Americas, 1865 and 1888, in the United States and Brazil, respectively, conditions of utter and outright economic despair continued as a reality for the African-American. Instead of fighting their way out of slavery, the chief priority shifted slightly, and only in the way of semantics. The experience of the African-American from 19th century until now has been one of overcoming abject poverty. And in similar suit, employing cooperative economics can and has been proven to be both socially and monetarily rewarding.

George Subira's Special Note to Black Women

The struggle to financial stability has especially been difficult for black women given the economic inequity of white pathriarchy, which often manifests itself in women shouldering the bulk of financial responsibility of single-parent parenthood. With the prevalence of female-headed households in our community, investing our time and effort to financially organize and empower this demographic may be one of our collective saving graces.

Well-respected money guru and Afrocentrist GeorgeTrower-Subira appealed to low-income black women to strengthen social networks as a means to individual prosperity in Black Folk's Guide to Making Big Money in America. In particular, he encouraged black single mothers to purchase real estate and provides a feasible model:

"Suppose two black women, each with three kids, wanted to own their own house. If each in working a day job and selling some comestics on the side, why can't they apply for a mortgage together to buy a three family house? They can rent two floors and live together on the first. A year or two later they get themselves in a position to buy another three family house, again buying it together. They rent all three units and the house just pays for itself..."

You Can't Run Away From Yourself

Trower-Subira's advises it for black women in the 'hood. .It's what founder of Kwanzaa, Dr. Maulana Karenga, labeled "Ujamaa," --Swahili for cooperative economics-- and championed its cultivation during the Black Power Movement. This principle, in particular, focused on the building, maintaining, and patronizing black-owned profit-generating institutions and businesses.

It's alive and well in the Caribbean as well. It's what Antiguans call "susu" or "box" Jamaicans refer to as "partners", Dominicans consider "san", those from Martinque call " sousou" and Haitians label, "sangue," "solde" and "comble". The practice is "esusu", a community-based form of mutual finance originating from the ancient Yoruba in Nigeria. In its simplest form, a number of people add a fixed amount of money to a common fund at specific intervals for a set period a time allowing rapid capital accumulation, interest-free loans, and forced savings.

This thing that we do, this thing that we practice, and this worldview that we hold--sharing, understanding the inextricable link of the social and the financial-- has its roots in the African principle of communal solidarity. Let's continue to build financial wealth through principles of mutuality, community accountability, and complementarity.

One, One Full Basket Part I: Cooperative Economics and Chico Rey

2008-05-20T16:04:00.000-07:00

The Economics of Slavery

The system to which we, as those of African descent, have the most visceral psychological, emotional, cultural, and mental sentiments and responses is one with its roots in money. The driving force behind the Transatlantic Slave trade was the forging and strengthening of a global system based on economic exploitation. In the case of Africa, it was the systematic exploitation of its natural and human resources.

In the most widespread accounts of slavery, we hear of a rancid, blanket despair: rapid

disintegration of customs, beliefs, and family structures; broken spirits; weary bodies. Very few accounts, however, herald the enduring power of the African human spirit let alone the financial deft and vision of many of our heroes, whose stories remain untold. The story and legend of Chico Rey of Brazil serves as a quintessential example of the power of cooperative economics, patience, and hope.

One, One Full Basket: Cooperative Economics and Chico Rey

Chico Rey was an African king prior to being enslaved and transported to Brazil at the beginning of the 18th century. During the Middle Passage, he lost his wife and most of his children. One son survived the horror of the voyage. Once they arrived to Brazil, his son and he were bought by the same slavemaster and placed to work at a gold mine in Villa Rica, the capital of the province of Minas Gerais, located in the interior of Brazil. During his forced years of servitude, he was baptized and also forced to adopt the name, Francisco. As a sign of continued loyalty, admiration, and respect, his former subjects and countrymen affectionately referred to him as "Chico Rey." "Chico" is a nickname for "Francisco" in Brazil and "rey" means "king" in Portuguese.

This kingly character was driven by a vision and work ethic that focused on the liberation of his son, his people, and himself. To this end, he worked not only in the gold mines during the week, but he also worked for himself on Sundays and holidays for years in order to purchase his son's freedom. After his son was liberated, they both worked tirelessly to manumit Chico Rey. Once he and his son were free, together they worked and pooled their resources to secure the freedom of the king's subjects. Each subject would then, in turn, join the efforts to free the next. Little by little, they reunited Chico's court, bought a gold mine, and liberated other slaves in nearby areas.

As a testimony to the greatness and staying power of his people, Chico Rey later founded the brotherhood, Our Lady of Rosary, the patron icon of blacks, and constructed a church in her honor with the same name. Once a year, Chico Rey, his queen, and members of his court would

hold a service and procession in honor of the patron. Those that participated in this ceremony wore their most beautiful, expensive, and elaborately decorated attire. Women decorated their hair with bits of gold, which they would eventually wash under the image of Our Lady of Rosary with 'holy water' in the church. This gold was ultimately used for the liberation of other slaves. Brilliant!

Even though Villa Rica has been renamed, Ouro Preto, the annual feast of Our Lady of Rosary continues to be a mainstay in the cultural and historical fabric of the Afro-Brazilian experience. The history of Chico Rey inspires us to keep trying a little harder, plan a little more carefully, and prioritize with a little more confidence, and endeavor with a little more cooperation to overcome the legacy of a financial reality rooted in disenfranchisement and inequity.

Diversification is Key Part II : 22 Different Ways to Say "Financially Giving"

2008-05-11T13:51:00.000-07:00

Wanna Be A Baller, Shot Caller?

Society approximates lavish living, free spending, and the acquisition of obscenely unnecessary items with happiness, power, and control. As a society, we also view those that spend on others as kinder, nicer, and better-spirited than their financially conservative counterparts, even though these categorizations are not directly correlated. Being generous with money for the sake of appearances and greasing the spokes of the networking cipher is very different from being free with money for charitable causes. These acts, in terms of movement, motivation, sentiment, are completely diametrical. Thankfully, there are dozens of words available to aid us in distinguishing amongst the "financially giving":

altruistic (adj.) unselfish concern for the welfare of others.

benevolent (adj.) generous in providing aid to others.

eleemosynary (adj.) open-hearted in giving assistance to the poor.

excessive (adj.) an amount or quantity beyond what is normal or sufficient.

extravagant (adj.) exceeding reasonable bounds.

generous (adj). liberal in giving or sharing.

headlong (adj.) unthoughtful; often reckless actions.

heedless (adj.) carelessness or lack of responsiblity or proper regard for consequences.

hasty (adj). hurried, often in the ways of making decisions.

lavish (adj.) immoderate in giving or bestowing; unstinting.

improvident (adj). not providing for the future.

imprudent (adj.) a lack of caution in practical affairs; unwise.

impulsive (adj.) inclined to act on sudden urges or desires rather than reason or careful deliberation.

madcap (adj.) behaving wildly; rashly.

precipitate (adj.) acting with or marked by excessive haste and lack of due deliberation; lack of due reflection.

prodigal (adj.) given to or marked by unrestrained abundance.

profligate (adj.) characterized by wasteful, lavish, and unnecessary spending.

scattergood (n.) a person who spends money or resources wastefully

slapdash (adj.) unthinking boldness and haste

thriftless (adj.) reckless, especially in the use of material resources.

wastrel (n.) a person who spends money or resources wastefully

Who Are You When No One is Watching?

The "Lady in Red" in Ntozake Shange's For Colored Girls Who Have Considered Suicide When the Rainbow is Enuf narrates how leading a double life burdens the authentic self with grief and emptiness. On the outside, the woman that the "lady in red" speaks of is well-dressed, sexy, charming, and the secret desire for most men. Her image commands attention and gave her a sense of identity and power:

orange butterflies & aqua sequins

esconsed tween slight bosoms

silk roses dartin from behind her ears

the passion flower of southwest los angeles...

she let her thigh slip from her skirt

crossin the street

she slowed to be examined

& she never looked back to smile

or acknowledge a sincere 'hey mama'...

delighted she was desired

&and allowed those especially

schemin/tactful suitors

to experience her body & spirit...

When, however, she became grounded in the reality that she in fact wanted love and understanding rather than superficial unions, she experienced great pain in admitting to her vulnerability. She experienced even greater pain when she knowingly behaved in ways that continued to overlook her needs.

laying in the water

she became herself

ordinary

brown braided woman

with big legs & full lips

reglar...

she wd gather her tinsel&

jewels from the tub

&laugh gayly or vengeful

she stored her silk roses in her bed

&when she finished writin

the account of her exploit in a diary

embroidered with lilies & moonstones

she placed the rose behind her ear

& cried herself to sleep.

As it relates to our finances, when all of the pats on the back, looks of envy, accolades from acquaintances and strangers, and fleeting moments of self-importance and power dissipate, what do you have to show for yourself? Lost time, unaccounted for debt, a bruised ego, self-doubt, and a shaky financial future? If you find that your spending is causing you to live a life that is not aligned with what you can afford or who are you really are, chances are that you are using money and the spending of it as a proxy for something else. (i.e. love, status, importance, intimacy, purpose, security, happiness). If, however, in giving to others, you are simultaneously taking care of you and yours, you are fortunate and wise enough to have found a balance as it relates to (spending) money and happiness. Congratulations!

Diversification is Key Part I : 22 Different Ways to Say "Cheap"

2008-04-29T19:27:00.000-07:00

That was a Cheap Shot

Not many people are comfortable with being labeled "cheap" because of the negative connotation attached to this word. Being cheap not only typifies a reluctance to spend money, but it also projects an extreme level of selfishness that transcends financial concern and often alludes to moral, social, and ethical dysfunction. Not everyone that is reluctant to spend money, however, is cheap. Cheap is a misnomer placed on the frugal and provident, who, more than not wanting to spend money, are most concerned with minimizing waste and excess of any kind.

What Did You Call Me?

Below are 22 different ways to distinguish, characterize, and explain the divergence amongst the financially cautious. Which best suit you?

1. avaricious (adj). greedy; immoderately desirous of acquiring

2. cadger (n.) someone who tries to get something for free.

3. canny (adj.) shrewd; especially where one's own interests are concerned

having or showing clever awareness and resourcefulness in practical matters

4. chary (adj.) trying attentively to avoid danger, risk, or error

5. chinchy (adj.) embarrassingly frugal

6. chintzy (adj.) unforgivably ungenerous

7.churl (n) a rude, boorish person; a miserly person; a medieval English peasant

8.costive (adj.) stingy; sluggish; causing constipation

9.economical (adj.) prudent and thrift in management; not wasteful or extravagant

10.frugal (adj) very careful with money

11.mingy (adj.) mean and tight; stingy

12.miserly (adj.) lacking generosity

13.niggard (n.) a stingy; grasping person; niggardly (adj.) stingy; miserly

14.parsimonious (adj). excessively frugal; too economical

15.penurious (adj.) unwilling to spend money; yielding little

16.provident (adj.) providing carefully for the future; relating to the mindful development and use of resources.fore

17.scrimy (adj). petty and reluctant in giving or spending

18.scrounger (n.) someone who seeks to obtain through begging or borrowing without intention of repaying.

19. shnorrer (n.) someone that takes advantage of the generosity of others

20.skinflint (n.) a selfish person who is unwilling to spend or to give.

21.stingy (adj.) ungenerously or pettily reluctant to spend money

22. thrifty (adj.) careful in the use of material resources

Strike a Balance

In our efforts to secure a solid, plentiful financial future, we must remember to attend to our present selves as well. If you find that saving is ruining or lowering your standard of living, your intimate relationships, or your overall mental and emotional health, it may be important to address the psychological underpinnings of your behavior. If, however, you feel more confident, secure, and well taken care of both in the present and for your future each time you squirrel a little money away... then I say, Save On! Save On!

Wow, You're a Life-Saver! Part II

2008-04-22T10:57:00.000-07:00

Repetition is the Essence of Pedagogy

In the last column, we focused our attention on five financial tools of engagement that life-savers use to not only thwart monetary self-sabotage, but also hone proactive, capital accumulating practices:

1. Life-Savers carry calculators

2. Life-Savers carry big bills.

3. Life-Savers carry business cards.

4. Life-Savers carry pen and notepad.

5. Life-Savers carry chips on their shoulders.

Practice with Principle Makes Perfect

Life-saving is not just about tools and practical tips. Life-saving is a philosophy and way of life based on principles of personal accountability, delayed gratification, balance, single-mindedness, and creativity. In order to practice the habits of life-savers, it is crucial to first internalize their underlying philosophies.

Life-Savers do not hate, they appreciate (literally).

Saving money would be easy if the products and services that corporate masterminds introduce and push had no style, added little convenience to life, and did not cater to human vanity. But they do! Sitting on a $4,000 leather couch imported from Italy may evoke the feeling of being ensconced in velvet, silk, satin, and other materials soft and buttery to the touch. Navigating the curves and turns of a windy road with ease in a $40,000 luxury car also elicits intense sensations that range from excitement and peace to invincibility and control. Similarly, purchasing trendy clothing, designer shoes, and lavish accessories stroke the human psyche's craving for immediate gratification, want of recognition, and desire for (perceived) superiority.

Life-savers are realists and do not disparage the allure, aesthetic, and appeal of these type of items. What life-savers as realists clearly understand, however, is that these items depreciate (often exponentially) after years of wear-and-tear, once driven off the showroom floor, and if not taken care of. Instead, life-savers buy items that conserve their value and appreciate in

worth : index funds, mutual funds, 401ks, continuing education courses, commercial and residential properties, copyrights, and art and leave fantasies of the acquisition of excessive material trappings for fairy tales.

Life-Savers prefer inconspicuous consumption over conspicuous consumption.

The motivation behind conspicuous consumption is the want to impress others and convey an elevated socioeconomic--whether true or not. The purchase of visually stimulating items such cars, clothes, mansions, yachts, country-club memberships, and electronics project and promote this image.

Conversely, inconspicuous consumption gives the impression that one is of low or moderate means and status. Life-savers thrive on this perception. It not only eliminates the jealousy and envy that may accompany the flaunting one's good fortune, but it also minimizes risk for robbery and injury. In other words, subscribing to a philosophy of inconspicuous consumption allows life-savers to build wealth through high-income earning, low attention-grabbing assets (i.e. land, stock, bonds, leases) while maintaining their financial privacy and anonymity.

Life-Savers rebel with a cause.

Most of America is financially illiterate and financially reactionary. This makes those that are fiscally savvy and proactive in wealth accumulation stand out and stand alone. They live below their means, differentiate between wants and needs, safeguard against unnecessary debt, protect their credit scores, create emergency funds, take advantage of tax-shelter options such as tax-deferred annuities (TDA), individual retirement accounts (IRAs) and other long-term economic planning.

Knowledge and insight garnered through study and practice comfort life-savers as they encounter the glaring manifestations of financial ignorance-- disdain, suspicion, exclusion, and mockery from chronic spendthrifts--while on their long and often lonely journeys toward financial security and prosperity.

Life-savers prepare for the worse, hoping for the best.

Not everything goes according to plan. Despite attention-to-detail, hardwork, and immaculate planning, there are things that are essentially out of our control. (i.e. natural disasters, accidents, death). With life being unexpected in nature, life-savers buffer themselves from unforeseen financial blows by always accounting for them in their planning. They keep emergency funds, insurance contacts, and liquid financial reserves updated and readily available.

Life-Savers worry about their names, not brand names.

Your reputation and history for repaying loans and handling debt is crucial when you are seeking to establish a solid financial identity, especially in the eyes of loaning agencies. Your credit score, the numerical indicator of your creditworthiness, dictates your level of success in applying for loans, securing investors, or even purchasing a cellphone.

As a result, life-savers pay close attention to what they sign their names to. They understand that in agreeing to the terms of a loan, a new account, or credit card that they are ultimately responsible for managing payments. This is particularly why life-savers are averse to co-signing loans, agreeing to open accounts in "my mama name", and establishing joint checking and savings accounts even with the closest of loved ones.

Wow, You're a Life-Saver! Part I

2008-04-15T04:49:00.000-07:00

Be a Life-Saver!
Talks of an imminent recession, massive layoffs, surges in the prices of wheat, housing and mortgage slumps, and an increasingly impotent dollar are causing widespread concern for the financial future of the average American. Now, is as good a time any to discuss the importance of being a saver for life or "lifesaver." In the next two columns, we will explore revolutionary, yet seemingly trivial tools and ways of thinking that keep lifesavers more adept at absorbing the impact of external threats to their financial peace of mind and purchasing power.
Below are five basic tools that lifesavers use to defend themselves against corporate agenda, piracy,and peddling.

Life-Savers Carry Calculators
Keeping a calculator handy, whether the one on your cellphone, in your purse, or in between your ears, saves you from succumbing to alluring discount offers and seductive sales pitches. Once you realize that 20% off of $200 is actually $60 more than the $100 that you wanted to initially spend, you'll be more discerning and wary of department store bargains and holiday sales.

Using a calculator while shopping also helps you to discern when there in fact is a bargain, even though it is not so apparent. For example, last week I went to a buy hair conditioner. The four-ounce bottle cost $10, while the eight-ounce bottle cost $15. My initial thought was to buy the four-ounce bottle, but a quick calculation made me see that it would be in my best interest to buy the larger bottle now and save myself $5, in addition to transportation or other non-related costs that would accompany the purchase of another four-ounce bottle at a later date.

Life-Savers Carry Pen and Notepad
The necessity of pen and notepad as tools of proactive saving often go overlooked. Not only should you use these tools to create lists of items and estimated prices before you leave the house, you should also use this list to guage the completion of a task. More importantly, carrying pen and notepad allows you to jot down better prices, patterns in your spending, lucrative opportunities, and financial tips in one place.

Keeping all of this data in one location proves key. Over a period of time, these financial journals illuminate financial priorities (or lack thereof), business ideas, and serve as reference for invaluable human and capital resources.

Life-Savers Carry Business Cards
Those that commit to a life-saving lifestyle are prepared to absorb the financial shock of life's unexpected events because of their long-term money mindset. Equally important, they prepare for financial opportunity in the present. That is, their proclivity for planning and practicality also allows them to take advantage of opportunities to network and embark on money-saving or money-making ventures when least expected. To this end, they keep updated business cards on their person at all times. This facilitates the broadening of their social base and projects to those with whom they encounter a level of business savvy and creative maturity.

Life-Savers Carry Big Bills
The largest denomination of money in this country are $50 and $100 bills. Generally speaking, consumers usually reserve them for large purchases such as electronics, furniture, and or appliances. Conversely, consumers reluctantly use big bills to buy packs of gum, magazines, or quick bites to eat when they have no change. Life-savers understand that carrying big bills, like $50, make them less prone to frittering way their money on small purchases. With big bills, they are more easily able to monitor when bills are broken and when change is made. (Think: It's easier to keep track and more painful to spend four $50 bills than ten $20 bills or twenty $10 bills.)

Life-Savers Carry Chips on Their Shoulders
Most people go shopping with an aim to spend money. That is, they do not need much persuasion to spend money because in fact, they want to spend. They consider malls, salespersons, and outlets inviting, nonthreating, and without motive. On the other hand, a life-savers money mindset is the exact opposite. They enter commercial areas playing financial defense. They understand stores, shops, and others of commerce to be deliberate, purposeful, and predatory to their future financial security. As a result, they need proof, reason, and rationale as to why they should spend their money because their principal financial aim is to keep it.

"Mind Your Own Business": Teaching Financial Literacy and Entrepreneurship to Our Children

2008-03-21T19:51:00.001-07:00

Gimme Yo' Lunch Money

I found it when I was nine. Farrah Gray, author of Reallionaire and Get Real, Get Rich found it when he was seven; my third grade students found it last year.

The relationship between good financial hygiene and the pursuit of endless possibility.

In fourth grade, I rented out my erasable pens for $0.25 each as the class transitioned from writing in pencil and in print to writing in script and in pen. By the time I was eleven, I had moved on to peddling posters from Right On magazine for $0.50 and $1.00, for small pictures and pull-out pictures of the then-hottest celebrities, respectively. Farrah Gray, the African-American mogul that become a millionaire by the age of fourteen, started selling home-made lotions door-to-door in the projects of Chicago's Southside. Last year, each of my third-grade students received a piggy-bank, which I expressly remarked was exclusively for contributing to their college funds.

Awakening Their Financial Genius

This proclivity for financial awareness and understanding of the benefits of entrepreneurship are direct indicators of financial literacy. Expert accounts of American households with average amounts of credit card debt as high as $9,000 in 2007, increases in the rental of shortage units, and the surge in the interest and number of housekeeping reality shows, however, point to the glaring levels of financial illiteracy throughout this country.

Despite the severity of this widespread and ever-deepening social problem, mandatory financial curricula continue to be absent from most primary and secondary schools' core educational priorities. This means that teaching our children about money, entrepreneurship, and healthy spending habits has to begin at home:

1. Watch television and flip through magazines with them to analyze the role that commercials and advertisements play to encourage 'group-think' and mass consumption. Children and young adults in tune with much of pop culture turn a blind eye to the reasons why they buy certain labels at certain times. They honestly believe that they purchase them from their own volition. If at this stage in their development they profess their individuality and autonomy, why then, do many strive to look, dress, smell, and posture in identical manners to their peers? The manner in which they conform, that is-- what they consider worthy of buying, wearing, drinking, saying, and driving --comes from social cues orchestrated and controlled by seemingly innocuous suggestions and subliminal reminders of what should constitute their external identity and internal values.

2. Identify symptoms of impulse buying and implement strategies to thwart its influence.

Many of us, including children and young adults, experience an increase in heart-rate, sweaty hands, and a trance-like state when we are overcome to buy on impulse. While it is important to acknowledge the sensation, it is of greater importance to implement impulse-related rules of engagement to spare your future of financial difficulties: Walk directly out of the store and to your car. Repeat your favorite money mantra. Keep all ATM cards and credit cards in house before you leave the house. Give yourself a 48-hour rule: If there is a purchase over $20 that you want to make, think about for 48 hours. Once you have given physical and mental distance between you and the item, your impulse to buy would have waned or completely died all together.

3. Educate them.

For lower-elementary school students (K-2), books like It's a Habit, Sammy Rabbit celebrates a rabbit that saves its carrots and fosters early savings habits, while books like All For the Better follows how a Puerto Rican family in El Barrio consistently saves money to support their extended family in Puerto Rico during the Great Depression is more appropriate for upper-elementary school students, (3-5). Similarly, The Center for Black Business History, Entrepreneurship, and Technology provides information on the four century tradition of black business activities from slavery to freedom in the United States for more advanced readers.

4. Set financial goals and expectations for them.

Open a saving accounts with them and have them make bi-monthly contributions. Insist that they pay in full or in-part bills (i.e. cell phone, nails, entertainment, shopping). This instills a sense of responsibility. Having them play an active role in their financial lives will also streamline their priorities and understanding between a "want" and a "need" once they will not be getting it free. If you allot an allowance, maintain strict rules that restrict advances, discourage borrowing, and create incentives to save. (i.e. providing matching funds)

5. Encourage an entrepreneurial spirit.

Our children possess an array of intellectual, artistic, political, and cultural talents, passions, and interests. Allow these predilections to become potential sources of income. If your child the teacher's pet? Let invaluable skills such as excellent reading, strong organizational skills, reliability, and congeniality be the beginnings of an educational enterprise for her/him. Is your child particularly athletic, fashionable, handy? Allow him/her to train, design, and fix for a fee around the neighborhood.

It Takes a Village to Raise a Mogul

There are several programs available to elementary, middle, and high school students interested in learning about microenterprises, the workings of start-up companies, and the nuances of self-employment. Below are programs, agencies, and organizations that equip our youth with key entrepreneurial skills and opportunities to secure funding for their enterprises.

These opportunities make a great complement the financial instruction that you do at home.The resources listed below are by no mean exhaustive.

National Foundation for Teaching Entrepreneurship (NFTE) teaches high school students how to start and run a small business. Students have the opportunity to gain work-based experiences, develop leadership skills, and boost their self-esteem.
Junior Achievement focuses on preparing American youth for the demands of a global economy. Through age-appropriate curricula, activities, and training, students of all ages learn about the market economy, work-readiness, entrepreneurship, and money-management.
Black Enterprises Kidpreneur/Teenpreneur Conference targets African-American youth, ages 7-17 for workshops that range from increasing interest in business and creating business plans to managing and establishing microenterprises.
Students in Free Enterprise is an international organizations that grooms college-level students for socially responsible entrepreneurial endeavors. They provide credit-card counseling, free enterprise project implementation, and professional mentorship.
U.S. Small Business Administration Teen Business Link provides a slew of links and resources to mentoring programs, academic scholarships, and internship opportunities.

Please post any comments or questions on http://girlgetyourlifetogether.blogspot.com

Which Came First? The Bible or the Nest Egg? Using the Bible as Financial Blueprint

2008-03-19T06:15:00.000-07:00

Which Came First? The Bible or the Nest Egg?

Who and what do we consult for financial advice? Michelle Singletary? Yes. CNN? Yep! David Bach? Ok. The Wall Street Journal? Sure. Farrah Gray? Why Not! The Bible? ---What?

Yes, the Bible.

Using the Bible as Financial Blueprint

For Christians and members of other religious and spiritual faiths, the Bible is chiefly viewed as a moral and religious text. As result, Christians overlook its financial dimension, while members of other faiths including (agnostics and atheists) resist probing its contents all together because of mutually exclusive understandings of the spiritual way of the world. This narrow categorization cheats Christians, members of other faiths, and adherents to the "scientific method" of the non-religious and practical financial lessons that the Bible has to offer, which pre-date and parallel the conventional wisdom of some of The New York Times best-selling financial coaches. Below are 4 key scripture verses that, like our most followed financial gurus, voice the importance of budgeting, avoiding debt, thinking for yourself, and goal setting.

Money Principle #1 Create a budget and stick to it!

Bible Verse: St. Luke 14:28-29 "For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it? Lest haply, after he hath laid the foundation, and is not able to finish it, all that behold it begin to mock him."

Money Principle #2: Focus on Yourself, Not the Joneses

Bible Verse: Galatians 3:4-5 "But let every man prove his own work and then shall he have rejoicing in himself alone, and not in another. For every man has his own burden to bear."

Money Principle#3 Pay Off Debt in a Timely Manner/Avoid Predatory Lending

Bible Verse: Deuteronomy 15:1-2 "At the end of every seven years thou shalt make a release. And this is the manner of the release: Every creditor that lendeth ought unto his neighbour shall release it; he shall not exact it of his neighbour, or of his brother..."

Money Principle # 4 Be persistent and follow through to reap the benefits of hardwork.

Bible Verse: Proverbs 12:11 "He that tilleth his land shall be satisfied with bread; but he that followeth vain persons is void of understanding."

Any comments, please send to adjowa2001@yahoo.com

FUQs : Frequently Unasked Questions on Money and Finance

2008-03-09T09:16:00.000-07:00

Nod and Smile
Scenario #1
Your best friend says that she is the personification Sonia Sanchez, Amiri Baraka, a helping of Lucky Dube and a hint of Erkyah Badu and Public Enemy rolled into one. One night, she invites you to bear witness to her lyrical prowess. Her art. Her craft. At a local poetry cafe. By the middle of the third poem, you realize that her poetry is not only contrived, but also uninspiring. But when she leaves the stage (exit stage left) and returns to her seat and asks the faithful question, "Girl, what did you think? How was it?" You are tempted to ask her how many credits shy she is from completing her degree in Accounting, but instead, you muster a, "Girl, you know how you do!" and seal it with a nod and (big)smile.

Scenario #2
Your sister-in-law invites you to a financial literacy seminar. At the seminar, the speaker speaks quickly, but nonetheless, eloquently about the current market forecasts, inflation, the climate of the housing market, and predictions on the future of US economic development. There is a wealth of knowledge, but not easily digested in one setting because the content is dense. Cognizant of this, the gracious speaker opens the floor for dialogue. Hands go up, all except yours. You think your question is too simplistic to ask. So, instead of posing your question, you posture with a nod and smile. For effect, you may throw in, " She was so amazing!" to a random registrant as the crowd files toward the exit.

Why We Don't Ask and Answer Questions
We often do it to avoid confrontation. We also do it when we are scared to voice uncertainity, confusion, and express a need for help. Yes, our pride, beautiful and brazen, when not tempered gets in the way of us being our most evolved and informed selves. The crippling agent, fear, coupled with insidious societal need for conformity and latent need for acceptance dwarfs the rate at which we take risks, go against the crowd, and stand alone.
When it comes to elevating our financial acumen, we have to ask questions. And the more basic, the better. A solid financial foundation that is built on the mastery of seemingly trivial, rudimentary concepts and facts will allow you to easily incorporate the more complex, complicated ideas into your fiscal schema.

FUQs: 5 Frequently Unasked Questions on Finance and Economics

Q. What type of economy does the United States have?
A: Technically, the United States is said to have a mixed economy because both privately owned businesses and government both play key roles in its growth. It, however, moves and acts like a free market or market economy. A market economy is characterized by an emphasis on private ownership, not government ownership. In fact, private business produces and distributes the majority of goods and services in the country. What also makes the American economy free-market in nature is its belief in the power of supply and demand to determine the prices of goods and services. The prices of goods and services, in turn, inform businesses what should and should not be produced, making way for the entrance of businesses "competitive enough" to produce and the exit of businesses unable to compete in the free enterprise system.

Q: What is the Federal Reserve? Why is it so important?
A: The Federal Reserve System is the central banking system of the United States. The Federal Reserve, as a central banking entity, is responsible for the country's monetary policies and decisions, which include monitoring, managing, and controlling the supply of money and trading it in the foreign exchange markets. The former Chairman of the Federal Reserve was Alan Greenspan. The current Chairman of the Federal Reserve is Ben Bernanke.

Q: What is difference between and stock and mutual fund?

A: A stock (also known as an equity or a share) is a portion of the ownership of one corporation or business entity. When you buy stock in a company, you have the right to a portion of the company's earnings and are subject to mitigating its losses. Mutual funds, on the other hand, are companies that have fund managers that are responsible for investing a group of investors' pooled money toward a predetermined investment goal. Mutual funds provide diversity because it allows for investment in a number of investment tools (i.e. stocks, bonds) and allow the investors to have ownership in several companies.

Q: What is an IRA? What is the difference between a traditional IRA and a Roth IRA?
A: IRA stands for "individual retirement account." A traditional IRA is an account which allows individuals to make investments with tax-deductible contributions. This money can be invested in stocks, bonds, mutual funds, or other investment vehicles and grow tax-free until the person is 59 1/2 years old. Penalties are imposed for withdrawals made before this time. After 59 1/2, account owners are permitted to make withdrawals, but must make withdrawals by 70 1/2 years old. The withdrawals will be taxed at your current tax rate.

On the other hand, contributions to the Roth-IRA are made with after-tax dollars. They also are not deductible on your tax returns. Since you have paid tax on your money upfront, withdrawals from the Roth IRA will be tax-free. Additionally, unlike traditional IRAs,there is no distribution requirement (i.e. withdrawals) and individuals can make contributions to their IRA after they are 70 1/2 years old.

Both impose annual contributions limits. If you are 49 years old or younger, you can contribute a maximum of $5,000 in 2008. If you are 50 years old or older, the ceiling is $6,000 for the year.

Q: What is a "rule of thumb" in terms of creating a budget?

A: There are different ways to allocate money for a budget; The most basic I have come across is the "50/30/20" budget. Fifty percent of your income goes to "must-haves" (i.e. food, shelter, education, transportation), thirty percent goes to "wants" (i.e. clothes, travel, entertainment), and twenty-percent goes to savings. (i.e. retirement, emergency fund, college fund)

Money on My Mind: 5 Money Mantras to Live By

2008-03-05T07:52:00.000-08:00

When we hear the word "mantra," images of highly spiritual figures such as monks, devout Buddhists, and New Age gurus in isolation, breezy linens, sandals and enveloping cloaks in medidative space, chanting, and divine posture come to mind.

And rightfully so, the concept of "mantra" is thought to have its origins primarily in the Vedic religion of India and later became integral parts of other Eastern religons such as Hinduism, Jainism, and Buddism. By definition, a mantra is a mystic syllable or lyrical poem that devotees chant, recite, and repeat in rapid succession as to create and instill single-minded concentration on a particular goal or destination. According to this philosophy, the mind serves as the bed of all thought, which subsequently lays the foundation of our feelings and eventually our actions. Individuals commited to using mantra in their lives reap the benefits of physical well-being, mental clarity, and spiritual grounding.

Money Mantras
As it relates to money and our goals of financial liberation and freedom, creating "money mantras" to focus our best and most potent mental energy on fiscal best practices is key. Chant, repeat, and internalize the following 5 money mantras packaged in African-centered proverb and expression to empower you to tackle financially sensitive or precarious situations in the ways of love, family responsibility, entreprenuership.

1. "Aunque el mono se vista de seda, mono se queda " Central/Latin America/Caribbean (Even if a monkey is dressed in silk, it's still a monkey). A person is who he/she is independent of the pretense under which you find him/her. If you have members of your family or close friends that are notorious for peddling business proposals without sound research because it is guaranteed to make you rich overnight or have a girlfriend that is unable to balance a checkbook, control her spending, or organize a budget, lending money hoping that they will change their financial habits is futile. Bailing them out of financial crisis, does not change the fact that they are poor financial planners and irresponsible with money.

Following this money mantra is especially important to young adults in the market for love. If you notice that your potential mate has problems with keeping a job, paying bills on time, and talks about what he/she could do "only if," you are setting yourself up for a lot of frustration and pain if you think that their habits will change once married or emotionally committed.

2. "Dime con quien andas, te digo quien eres." Central/Latin American/Caribbean (Tell me with whom you walk and I will tell you who you are). Your close friends are a reflection of you. Pay close attention to the financial identities of those around you. If you notice that you and your close friends enjoy club-hopping, first-class trips, recreational shopping, and dining at "four-star restaurants", you may probably have something else in common-- unnecessary credit card debt and amenic savings. If you want to reach your financial goals yet still keep your friends, provide alternative yet equally enjoyable outings to those expensive ones.

3." Little by little, the chicken will drink water" Akan, Ghana/West Africa
Consistency, patience, and perservance will yield success, bounty, and reward in the long run. As it relates to increasing your savings, it means finding 200 ways to save a dollar instead of one way to save $200.00. For retirement, this translates to beginning your monthly withdrawls at 10% and increasing the contributions by 2% annually or bi-annually. In terms of returning to school to pursue a BA or an advanced degree while still working, this means taking 3 credits instead of 12 each semester until you have satisfied all of your degree requirements.

4."If you can't ride horse, ride cow." Barbados, Caribbean
There is no one way to achieve a goal, so maintain flexibility as you work toward actualizing them. Who says that you have to work in field in which you received your degree? Who says that you have to work from 9am-5pm, how about 6am-2pm or 3pm-11pm?

5. "Walk fool is betta den sit-dong fool." Antigua, Caribbean
Take risks, take iniative, and talk to different people because you may find yourself at the ideal place at the ideal time. In the office setting, this means being social and present enough so that you are viewed as a team-player. Once you have secured confidence, pertinent information and opportunity is sure to follow. On the other hand, if you are venturing out on your own, calculated networking is sure to provide you with invaluable data, leads, and new ways of thinking.

"Be Careful of the Education You Keep": Lessons from Carter G. Woodson

2008-02-23T23:32:00.000-08:00

Black History is Not Only about Lives, It's About Lessons

During Black History month, we focus our collective energy on celebrating, honoring, and paying homage and respect to the accomplishments, struggles, and lives of black leaders, fighters, and survivors that challenged, revolutionized, and confronted America's oppressive, color-based system of disenfranchisement and white supremacy.

What we must realize, however, is that the power of Black History is not limited to the glorification of a few figures or the chronology of particular events or movements. The power of our history, rather, like the Ghanaian adinkra symbol, "sanfoka", a bird flying forward while looking backwards, illuminates the interconnectivity of the past to the present. The past has the ability to continually influence, impact, and shape our present without our cognition. Conversely, when we actively access the past through oral history and research, we consciously rebirth the past and bridge the former and present dimensions. That is, it is in the lessons channeled through the lives of the past and not just the lives, in and of themselves, that provide blueprints for how we as a people can overcome, improve, and succeed.

As we approach the end of Black History month, it is fitting and imperative, then, that we focus our attention on the bequeathed advice, warnings, and philosophies that Carter Goodwin Woodson, father of Black History month left, especially as it relates to our psycho-fiscal liberation and advancement.

Be Careful of the Education that You Keep

"The mere imparting of information is not education." Woodson wrote this statement in the preface to his 1933 publication The Miseducation of the Negro to warn the newly liberated class of Africans of the dangers and futility of seeking social acceptance and financial wealth through the acquisition of European-centered education and values. During the post-Emancipation Era, blacks had unprecedented access to formal education at white institutions and white-replicated black institutions and ultimately found themselves in unchartered territory as it relates to constructing, forging, and solidifying divergent financial identities, occupational paths, and earning potentials independent of agriculture, sharecropping, and manual labor.

With the introduction of "formal education" as a tool toward socio-economic mobility, there simultaneously emerged a stratified and binary oppositioning of that which was associated with the black, land-bound, agrarian class and the white, institutional, elitist strata. The growing population of what Woodson termed the "highly educated Negro" blanketly embraced that which was considered "white" and demonized that which was considered "black", thus elevating mind over body, institution over land, and convention over tradition.

And often to their (our) financial and psychological detriment...

Did You Hear the One about the White Professor, the Negro Intellectual, and the Laundromat?

The American educational system trained blacks to serve the economic interests of the white power class and implicitly, to work against, ignore, and sabotage the financial well-being of the black financial standing. For a people that were captured, enslaved, and indebted to servitude because of their superior and advanced understanding of land, nature, and agriculture and hired out as skilled laborers in woodwork, masonry, and domestic arenas throughout the pre and post-Emancipation periods, embarking on entrepreneurial endeavors that exploited these gifts and strengths would make perfect financial sense. Woodson found, however, that "highly educated Negroes" leaving schools of business administration despised and passed up the opportunities to generate wealth through "runn[ing] ice wagons, push[ing] banana carts, and sell[ing] peanuts among their own people" because they were trained exclusively in the psychology and economics of Wall Street, and not the financial dimension, structure, or nuance of the black financial belt. (Woodson, 1933)

This gapping hole in financial business sense and community pride afforded white ruling class to not only maintain, but exacerbate the disparity in wealth between these groups. Woodson drives this point when he recounts the distinct responses of a white professor and black instructor to being invited to run a laundry service for blacks. The former resigned his position at a university and became rich. The latter considered the suggestion an insult to his intelligence and position and did not become rich.

Re-educate to Elevate

Woodson wrote this call to consciousness for middle class black America seventy-five years ago. Its message, nonetheless, remains appropriate and timeless. Vanity and the desire for social acceptance continue to thwart our entrepreneurial spirit, creativity, and happiness:

How many times have we allowed the promise of title or prestige keep us from maximizing our financial potential? (i.e. Is making $1,000 in eight hours by selling water on Eastern Parkway during the Labor Day Parade beneath you because you have a BA in Psychology, Anthropology, or Criminology?)
How many of us only harness our entrepreneurial spirit during times of unemployment or underemployment and disengage it once we secure a job?
How many of our family members view our decision to work for ourselves with disdain and scorn?
How many of us place more value on working for a large corporation or firm than working for ourselves?

Each Man is a Revolution Onto Himself

Self-awareness, confidence, and the ability to problem-solve are indicators of quality, true, and pure education. As a people, we have the benefit of the oral and written traditions of well-known scholars and lesser known everyday heroes to guide, coach, and support us through our journeys. This means that the process of re-education is possible, probable, and without pretense or mystery, thus allowing each man to be a personal revolution onto himself and his community.

List of Works Cited

Woodson, C. (1933) The Mis-Education of the Negro. Trenton, NJ: Africa World Press, Inc.

Single and Saving in the City

2008-02-08T08:55:00.000-08:00

They say "love don't cost a thing", but we all know that dating sure does. Keeping an active social life while guarding your long-term financial goals such as property ownership, zero debt, advanced study, and a secure retirement don't have to be mutually exclusive. Incorporate a couple of these "single and saving in the city" tricks to balance the need to live life fully in the present with the reality that poor financial planning now creates an unlivable future.

1.Plan as many dates as you can around your next hair appointment. It costs a lot of money to take care of our hair and when we are dating we are more likely to splurge on a few extra appointments so we are looking our best. If you are currently seeing more than one person, schedule your hair appointments first and then the date, not the other way around!
2.Wash and wear. Keep that outfit that makes you feel the sexiest and most confident in heavy rotation. There is no need to continually buy new clothes when you are in market for a beau. The benefit of rewearing an outfit is that you already know how it hugs and hides, accentuates and flatters. Besides, it's new to them if they have never seen it. Keeping tabs, however, on what was worn and with whom is key to optimizing this strategy!
3.Kill two birds with one stone. Plan two first dates on the same day. A brunch and an early dinner, perhaps. These locations should be close enough as not to cost you more in the way of transportation, yet distant enough to maintain discretion. These dates should also be similar in price and nature to spare you unexpected ATM visits (and fees) and a wardrobe change. With the two-three hour cushion that you leave between dates, you will have enough to time to balance your checkbook, run errands, catch-up on your reading, or even schedule your next hair appointment!

Spilt Ends: Black Women, Money, and the Cost of Hair Care

2008-01-20T01:28:00.000-08:00

Hairy Situation

Last week, I watched a rerun of the early 1990s situation comedy, Martin. The show features an all-black cast. Its underlying premise is that Martin, a radio/television personality and his girlfriend Gina, and their best friends, Thomas, Cole, and Pamela navigate life's blessings and challenges with love, humor, and kinship. While positive in its overall message of the necessity and power of black community building, Martin also has been a window into black America's unresolved ambivalence, shame,disconnect, and discomfort with one of its most salient phenotypic racial markers--hair.

In the series, black hair is treated as both a topic of ridicule and point of black female sensitivity/insecurity. Martin repeatedly launches vicious, hurtful remarks about the repulsion of Pamela's hair; her response is often silence. In the particular episode that I watched, Pam's obsession for long and straight hair culminates in the shirking of civic responsibility and mismanagement of money. In particular, Pamela risked imprisonment due to her failure to pay back-taxes because she wanted to have enough disposable income to "keep her edges tight" and finance her costly hair-care regimen.

Pamela 's poor decision making and psychological discomfort with her hair forced me to ponder on the state of black women, money, and the cost of our hair care. An analysis of the show begs the question, "To what financial measures do we, as black women, resort to maintain a particular hair-care aesthetic and why?"

Art Imitating Life

Next to Chinese restaurants, liquor stores, check-cashing spots, and churches, there is no dearth of beauty salons in working class and low-income black neighborhoods. Walk past any beauty salon on a Friday night or a Saturday afternoon. You'll see it packed. Bustling. Brimming. --with black women waiting (sometimes hours) to have our hair permed, braided, twisted, locked, cut, conditioned, and extended. Buying. Comparing--the miracle products, best ointments, and sworn-by treatments. Talking. Scrutinizing. Stressing.--its "goodness", "badness", length, texture, strength, and beauty. Hair. Nappy-headed. Hair. Picky-headed. Hair. Bald-headed. Hair.

Hair, a biological component of the human body, as are nail beds, gum tissue, and earlobes, is nonetheless considered an indicator of identity, beauty, and femininity in the African-American community. This socio-cultural phenomenon, ultimately, however, translates into a financial bottom line. Black Hair Care is a multi billion dollar industry with annual estimated profit levels as high as $4 billion. As a community, however, we chiefly contribute to it as consumers and customers, not owners and investors. An examination of the psycho-historical roots of our preoccupation with hair will contextualize, although not fully rationalize, the source of our collective discomfort and its economic implications.

Hair Today, Gone Tomorrow

There was a time in our history when our hair was just a matter of fact. As just a matter of fact as the sun. As just a matter of fact as the moon. As just a matter of fact as the ocean. A reality to be marveled, paid attention to, and accommodated without misgivings, shame, or explanation.

Prior to our arrival to America as enslaved laborers to the "New World", our ancestors; the Wolof, Mende, Mandingo, and Yoruba in West Africa, and by extension their hair, were the central focus in the construction of the dynamics of cultural aesthetic, meaning, and function. Hair not only communicated age, wealth, status, profession, and rank, its arrangement also served as spiritual markers, aesthetic mainstays and everyday art. The evolution of these social norms, beauty standards, and metaphysical nuance evolved from an unspoken understanding that culture was aimed to celebrate, pay tribute to, harness, and accentuate that which was the righteousness, goodness, and uniqueness of the African mind, spirit, and body.

Conversely, once introduced to the Western Hemisphere as chattel, we confronted a Eurocentric standard of beauty and sensibility which distorted, negated, and destroyed (and in most cases) replaced our African self-affirming one. These standards relegated all things African, (i.e. hair, skin, and features) as inherently evil, ugly, bad, and inferior, simply, because they were not white. The white power class solely established these arbitrary norms so that it could systematically justify centuries of sexual brutality and economic exploitation, quelch campaigns of resistance/rebellion, destroy/dismantle connection to an African affirming self-image as a way to guarantee the steady supply of an oppressed, hopeless, defenseless, and impotent laboring class.

Overexposure to European aesthetics solidified a collective self-hate and disdain for African hair. Hair that was once respected and loved, became heavily scrutinized by Africans themselves. We labored over its coil and length. We labeled its worth --goodness or badness-- in relation to its ability to mimic the flow, texture, and type of white folks'. Whites rewarded our self-hate, affording economic and social advancement to Africans that postured, groomed, heralded, and affected European style standards.

Luckily, since the post-Emancipation era, there have been waves of black nationalism at the beginning, middle, and late 20th century which sought to reconnect the African with his African self. Marcus Garvey pioneered the Universal Negro Improvement Association (U.N.I.A.) and the Back to Africa Movement; Malcolm X and the Black Panther Party preached self-love through self-acceptance and black power; early Hip-hop artists and groups such as X-Clan,KRS-One, Arrested Development ushered into public attention a dignity, intellect, and regality associated with African aesthetic alignment.

Beauty Ain't Cheap

The struggles and challenges that our predecessors faced in search of a unique African-American hair standard and aesthetic left us with options. Many of us still prefer styles such as weaves and perms that are European-inspired in texture, look, color, and length. While others have selected styles such as locks, twists, and braids which take advantage of the natural composition of black hair. Below are the annual financial breakdowns of our hair-care identities within the five boroughs. The cost of coloring, transportation, food, babysitting fees, gratuity, and supplementary hair-care products are not included.

Hair Style #1: Weaves

Background: Weaves are usually redone every 3 months or four times a year. Many women prefer human hair because of its quality and often purchase new hair each time they replace their weaves. Some women relax their hair prior to the attachment of the weaves so there is congruity with the weave's texture. They continue to relax their hair every 6 weeks or close to nine times a year. In order to maintain a neat weave and clean scalp, biweekly visits (26 visits annually) are strongly recommended.

Purchase of Human Hair (3oz). $100.00 x 4 times a year $400.00
Relax Hair to Match Texture of Human Hair $40.00 x9 times a year $360.00
Labor- $150.00 x 4 times a year $600.00
Bi-weekly Maintenance (Wash/Set) $25.00 x26 times a year $650.00

Average Annual Expenditure: $2,010

Hair Style #2 Locks

Background: Visits to the locktician vary. It generally depends on the activity-level of the individual, how fast his/her grows, and their personal philosophy with regard to the general appearance of his/her locks. Many enjoy a very groomed, meticulous look, while others enjoy a less manicured, liberated style, making trips to the salon as frequent as bimonthly and as seldom as quarterly. A general rule of thumb, however, is that locks should be attended to once every 4-6 weeks or between 9 and 13 times a year.

1. One-time fee to initially cultivate locks: $80.00

2.Monthly Maintenance (Wash, Twist, Condition, and Style) $70.00 x 13 times a year: $910.00

Average Annual Expenditure: $990

Hair Style#3: Braids

Background: Black women usually keep extensions in for 3-4 months, making their visits to the African beauty shop as few as three or four times a year. Synthetic hair or human can be purchased prior to a braiding session or will be included as part of the total cost of the braiding service. On average, it usually requires between 5-6 packs of hair to braid a client's full head. In order to maintain healthy new-growth and prevent breakage once the extensions are removed, it is important that women wash and condition their hair every two or three weeks. This is usually done at home.

1.Purchase of Synthetic Hair $3.00x6 packs: $18.00 x4 times a year: $72.00

2. Labor $150.00 x4 times a year: $600.00

Average Annual Expenditure: $672.00

Hair Style #4: Relaxer (Perm)

Background: The beauty ritual for black women maintaining a relaxer is a six-week cycle. The chemical straightener is applied to the hair every six-weeks or nine times a year. In between each application or "retouch", black women visit the salon every two weeks or twenty-six times a year to wash,condition, and set their hair.

1.Initial Application of Chemical Straighter $40.00 x9 times a year: $360.00

2.Bi-monthly Maintenance (Wash, Condition, and Set) $25.00x 26 times a year: $650.00

Average Annual Expenditure: $1,010

I Am Not My Hair

There is constant pressure placed on black women to acquiesce or conform to white societal norms and visual expectations. When we do not, we are targeted. Don Imus' "nappy-headed hoes" reference surrounding the appearance of young, female, black scholars and athletes at Rutger's University coupled with a Glamour Magazine staff member's disdain for the presence of afros in the professional settings serve as testimonies to the institutional terrorism we confront daily. But fundamentally, we are not our hair and our money should be used more wisely, so as to enhance our quality of life, personal growth, and spiritual development. Here is a list of four things that $2,000 can buy you:

1. A Bigger Brain

Invest in your mind. Full-time tuition at City University of New York (CUNY) costs $2,000 per semester. Find a passion, a career, and interest.

2. A Beautiful Body: Invest in your health. Membership fees are as low as $200 annually. Personal trainer sessions also cost as low as $20. Prevent major health complications. Have more peace and tranquility. Prolong your life.

3. Peace of Mind: Invest in your spiritual growth. Fund a trip to the African continent or to a place you've always been metaphysically connected to.

4. A Piece of Property: Build a legacy of wealth in your family. Stashing away this amount annually will put you in a position to secure land within the United States and abroad sooner rather than later.

"She Gets It From Her Mama": Parents and the Formation of Financial Identities

2008-01-11T19:40:00.000-08:00

From the Cradle

Over the course of a life-time, we forge an array of relationships and kinships through a combination of choice, circumstance, and/or fate. The primary relationship, the bond between parents and child, however, is clinically considered to be one of the most important and influential in our lives. This is because we enter it without choice or preparation, and at the most vulnerable and impressionable stages of our human development-- infancy and childhood. As adults, we are pretty cognizant of how our childhood experiences with loved ones molded our sexual, racial, and spiritual identities. We may even be able to trace the foundation of our political leanings and political outlooks to certain experiences in our youth. But, what about our financial selves? How much do we think about the impact of our primary relationships on the development of our financial identities?

Baby See, Baby Do
During infancy, the principal role of parents is to create a world that is safe and predictable for a baby. They provide this by responding to an infant's basic caretaking needs (i.e. feeding, changing, caressing). The role of parents changes, however, once the baby transitions into toddlerhood and early childhood. Once children begin to walk and talk, they not only looks to parents for care, but they also look to parents for direction. Specifically, they look to parents for social clues-- how to be, how to think, and how to behave. With this new role as teacher, parents transmit their values, ideas, and understanding of the world through action, example, and explicit instruction. Children, in turn, internalize and ultimately, assume much of their parents' financial identities. As children venture through adolescence into adulthood, these centralized beliefs serve as behavioral reference points, which are either reinforced or rejected as adults categorize the sense of reward and/or punishment associated with their outcomes.

She Gets It From Her Mama
I serve as the quintessential example of this phenomenon. I make a decent living, hold a number of degrees, and live (way) below my means. Nonetheless, I have a fear of being as broke a joke. Also, I find it difficult to lend out money to family members and to accept money from strangers and loved ones. Moreover, I just do not feel good if I do not have multiple streams of income. Furthermore, I shop wholesale and when I can, I buy it used. Finally, I love using my creativity to make money.

My financial identity as both a disciplined, diligent saver and creative income-generator in my adulthood largely come from both the mistakes and genius that my mother exhibited in handling money as I was coming up. Here are some the things that happened and these are some of the things that I learned:

Many members of our family borrowed money from my mother and never repaid her. As a consequence, she often complained about not having money for what she needed.

Lesson Learned #1: Money is scarce,(since everyone was asking for it and could not repay it), so hold on to it.
Lesson Learned #2: Giving money to family can make you sad, so try to avoid it.
Lesson Learned #3: People do not like to repay money, so don't expect it back.

We spent Sunday afternoons shopping in wholesale districts and outlets.

Lesson Learned #1: Bargain-hunting is fun and recreational.
Lesson Learned#2: You can always pay less for an item.
Lesson Learned #3:Retail stores price gouge and should be avoided.

I was cashier in my mother's home-based boutique and worked in my uncle's grocery stores.

Lesson Learned #1: Have an entrepreneurial spirit.
Lesson Learned #2: Learn the consumer interests of those around you and cater to them.
Lesson Learned #3:Pay your bills on time and keep a great history of credit, so you can expand your business easily.

Go Back to Your Financial Roots

Understanding your financial identity is the cornerstone to financial recovery and financial self-awareness. Try the following three-part exercise to get you back in touch with your financial self:

Step#1: Uncover Your Beliefs about Money. Ask yourself the questions that reveal your unique perspective on money: Is money the root of all evil? Do I shop to feel happy and complete? Are expensive gifts a sign a love? What does money represent? Freedom? Power? Status? Security? Am I generous with money to friends and family? Do I abhor the wealthy? Is financial discipline deprivation? or smart thinking? Should my partner take care of me financially? Is paying bills on time important? Do I think about saving for the future? or spend in the present? Do I hoard money for fear of being poor? Do I spend excessively now because I was deprived as a child? Do I lie about how much money I make to bolster my confidence? Is talking about money impolite and a sign of poor home-training?

Step#2: Make a Financial Family Tree: Our perspectives on life, especially money, are created over time and with the influence of those around us, not in a vacuum. Create a family tree that lists all of the lessons (explicitly or implicitly) learned from those closest to you during your childhood.

Step#3: Make a Choice: Knowing who you are and why are you that way are key to self-acceptance and/or change. The things that we learned as childhood should be reevaluated and modified if they are not working to our benefit. Through conscious planning, reflection, and the help of others, we have the power to restructure, rebuild, and redefine the influence of the past.

The Cost of Clutter

2007-12-25T09:21:00.000-08:00

The Cost of Clutter
Yesterday was Christmas Eve. I left my house yesterday with my list in hand to run some errands. I live by a commercial area called Jamaica Avenue. Usually, Jamaica Avenue, like any other commercial district, is congested. But yesterday, I don't know. I am not sure if the streets got narrower, if people took up more space with their bubble jackets and packages, or if the vendors were screaming louder to buy cologne, socks, and pocketbooks. (I even saw a couple of brothers out there selling puppies housed in their jackets); but I came close to passing out. It was too much. My mind was cluttered. Invaded. Overstimulated. Buying. Spending. Eating. Stuffing. Pushing. Pulling. More. More. Now. Now. Money.

The Spirituality of Clearing Space
Luckily I caught my bus quickly and found refuge in the basic precept of a book that I was reading. In this book about the spirituality of space clearing, the author maintains that we often buy and hoard, consume and hold, and keep and store things because we are stagnant and unhappy with our lives. We use things to distract from doing the labor of reflection /inner cleansing. This accumulation of things is also an indication of an attachment to the past or fear of the future.

Lost and Found
I found truth in these tenets and could not wait to realign my energy with clarity, simplicity, and peace once I got home. I decided to tackle my office closet first. In cleaning, I found pictures of my mother when she was young, and poems that I had written while in undergraduate. I saw myself in my mother and reconnected with my former self. In their words and eyes, I saw their goodness, so I honored them by making space for them in my present. I framed their images and ideas.
On the other hand, I found pictures, gifts, articles of clothing of and from former lovers and friends. We took one last stroll down memory lane, and without malice, we finally parted. I threw these items out to free myself from holding on (literally) to a fossilized reality, so that I could make more space (literally) for the new unknown.

Mass Media and the Myth of More
In clearing my space, I found solace. I found myself. With less, I saw what was most important to me. What mass media and their perverse money-making machine try to convince you is that you need more to be. Be somebody. Be complete. They clutter your mind with sleight -of-hand images of false importance, status, and happiness so you would not be able to think critically about your individualized standards of success and happiness--which fundamentally may require little material acquisition --- (i.e. human connection, health, life learning, travel).

Baby Steps
So you may be the queen of bargain shopping. Have enough stuff to clothe a small village in Antigua but want to reconnect with yourself in a serious way? Try these baby steps toward a clutter-free mind and space:
1.Set a date for one room at a time. Cleaning a small cluttered area first will give a sense of accomplishment and motivate you to continue.
2. Set the mood. If you want a quiet reflective session or a loud, high-energy session, choose the appropriate music, timing and clothing (sometimes I like to clean with lipstick and a cute skirt).
3.Get that girlfriend that has no problem telling you the truth and start throwing stuff out. If you have been having trouble saying "no" to a salesperson, you probably would not be able to let go without help.

4.Create four basic piles: charity, garbage, keeping, and yard sale. This diminishes the sense of being wasteful. Not only will others benefit from your good will, you may be able to recoup some of your financial losses as well.
5. Let it out. You may find yourself in a less than pleasant mood, sad, or angry. You may even want to cry. Do so. Cleaning for the sake of clarity is a confrontation with (conceived) loss. It's a natural part of the grieving process.

10 Steps to Financial Freedom From the Inside Out

2007-12-05T17:51:00.001-08:00

You did everything that you were supposed to do. College degree. Good job. Benefits. Yet it is still difficult for you to get a handle on your finances. Lately, you might have found yourself asking, "What is at the root of my money problems?" and "What can solve them?" Luckily the answer to both is "You!"

The impulse buys, lack of saving, frequent trips to the ATM, unwise loans, late payments, postponed meetings with your financial advisor, and other financial mishaps can directly be attributed to your underlying and subconscious values, understanding, and beliefs about money. The good news is that you can redefine your money mindset through these good old-fashioned soul-searching guidelines and wealth accumulation tips.

1. Figure out why you spend. The survival of a capitalist economy relies on high levels of consumption. Big business relies on the media to assist in achieving this end. Newspapers, magazines, television, and radio bombard consumers with images of products, services, and goods in an effort to convince them that they would be happier, more interesting, smarter, and sexier once they purchase, invest, and consume. Essentially, the media attempt to reprogram the average consumer to believe that material items will make them complete and at peace.
So before you go on your next shopping spree, here are some questions to ask yourself about your sense of worth as it relates to the acquisition of material items:

Am I just as good as (person's name) because she/he can afford (material item)?
Do I shop because I think things (clothes/electronics/music) will make the people that I want to attract like me more?
Do I feel empty when I can't buy something new or expensive/
Does buying expensive things make me feel better than others that can't afford to buy those things?

2.Make it a group effort. Tell your closest friends about your financial recovery plans and get them involved. You are probably not the only one going through this transition and the support of like-minded people will optimize your chances of successfully attaining your goals.

3.Live at home for as long as you can. Are you eager to move out to show (or convince) your friends that you have made it by getting your own place? Instead of paying rent or splitting it in thirds with roommates, stay at home until you have enough saved to afford to purchase your own residence. Often those eager to move out without a clear financial plan, end up moving back home.

This concept is not new to the black community. It is part of our history. Throughout the Caribbean and the Americas, newly-freed enslaved Africans formed communities, collectives, and extended living kinships as a way to pool resources, reduce expenses, share advice, and protect one another from external threats. This is a timeless system and approach.

4. Rethink the big wedding celebration for 5th anniversary, not your first.This is not to say that being newly married is not something to celebrate, because it is. However, what is greater than being married for one year is being married for five years and even better, 10 or 20 years.

Too many young couples go into debt preparing themselves for one day and do not plan for the everyday financial trials of marital partnership. At least with this approach, there is something to look forward to every five years and you'll be in more of a financial position to pay for it.

5.Prioritize your debt. Open up the bills and get a reality check. See how much you really owe. It may seem overwhelming, but this is the first and most important step in getting you toward financial freedom.

After that, start paying. The two most popular strategies for tackling debt are the "high-interest" approach and the "smallest balance" approach. One is no better than the other. Use whichever makes you feel as if you are making the most progress toward your $0-balance dream. With the former, you pay your bills with the highest interest rate first. The rationale behind this strategy is get the most financially draining bill out of the way first. With the latter, you pay your bills with the smallest balance first of its psychological impact. There is an immediate sense of accomplishment and progress when one bill is completely accounted for.

6.Figure out how much you are spending and create a monthly savings plan. There is no way to get around it. Without a financial blueprint, that is, your financial plan, you will make little headway in securing your financial freedom. A basic budget begins with dividing your expenses into two broad categories: fixed expenditure (i.e. housing, transportation, food, insurance, tuition) and variable expenditure (i.e. standing nail/salon appointments, gym memberships, entertainment).

7.Create a Financial Freedom Fund (FFF) bucket. It is your choice. It can be an old an vase, an old wastepaper basket, or a mini-trash can. Label it, "My Financial Freedom Fund." Decorate it. Start by throwing all of your loose change in there at the end of each day. If you live in a house, have a few FFFs around high-traffic areas (kitchens, bedrooms). When necessary, combine all of the money into the central FFF. After it has reached its capacity, redeem your coins for cash. You may not think so, but those pennies add up. This extra money could be used to pay off some debt or money that could be air marked for a stock, bond, or mutual fund purchase.

8.Get a hustle (or maybe even two or three). Use your creativity to increase your income. If you are good at organizing, place an ad to clean-out garages, run errands, and organize closets and yard sales throughout the neighborhood. If you have a computer and can type pretty quickly, solicit editing/typing/revising gigs. Clean out your closets and put those items up for sale at a garage sale, E-bay, or on consignment at a local second-hand store. Good with pets and plants? Walk and water them for a fee!

9. Go shopping in your closets before you make your way to the mall. If you have a problem with shopping and are thinking that you need a new black pair of slacks or a 2-inch pump, check your closets. You've probably bought them. (maybe even twice.) If not, check in your best friend's closet.

10.Pick up a book and empower yourself about money (or borrow it from the library). Read and internalize straightforward, practical advice from African-American personal finance experts like Michelle Singletary, Lynette Khalfani, and Glenda Bridgforth. These women are present-day pioneers in counseling and educating the black community about their financial hygiene.

Finance 101 For the Undergraduate that Needs to Know

2007-12-05T12:53:00.000-08:00

Yes, you've been accepted. An excellent financial aid package, scholarship, work-study, or a combination of the three. You may be the first in your family to go to college or the first to attend college in the U.S. You've been warned about the dangers of college life:drugs, boys, walking home late at night, sex, and mindless recreational activities/squandering of time.

But, what about money? What tips, strategies, and warnings are part of your arsenal as you venture into adulthood away from home. Here are ten tips that every young sistah should know before they hit campus:

1. Stay away from free credit card offers/vendors.
At the beginning of every semester, credit card companies flock to college campuses in search of unsuspecting prey--young, undisciplined coeds-- and approve them for credit card at interest rates as obscene as 24%. They do this because they know that the typical American college student is consumption-driven and fiscally unsavvy. What often results is that college students rack up uber levels of debt, find it difficult to repay, and end up ruining their credit. Plus, they have nothing of benefit to show for it other than outdated dorm furniture, clothes, and accessories.
2.Live like an undergraduate, not a superstar.
Your primary objective in going to college is equip you with the intellectual foundation, network contacts, and social skills needed to navigate your personal and professional path upon graduation--not to be featured on the college version of MTV Cribs. Decorate your room with inspirational figures, quotes, and artifacts. Keep it clean and conducive to study.
3.Make your part-time money work full-time for you.
Save 10% of your income no matter how modest your take-home pay will be. With youth and compound interest on your side, you can begin stashing money away for retirement, home-buying, and graduate school while you continue to study (and while you actually do not mind having to work).
4.Apply for scholarships.
There is literally thousands of dollars out there waiting to be grabbed--only if you take the initiative. Scholarship websites like fastweb.com and your college's career center have listings of scholarships, fellowships, and grants based on field of study, age, ethnicity, state, and nationality.
5. Take a finance course.
Take advantage of all of the information/courses that your university has to offer. A basic finance course will equip you with invaluable knowledge about investing and savings. It will also provide insight into the role of that consumption (spending) plays in a capitalist economy and the workings of the nation's chief financial institutions.
6.Secure an internship.
Get hands-on experience in a particular field during your summer vacation. Internships help you discover if a job ideally matches your strengths, talents, and abilities. Additionally, summer internships often translate into full-time jobs at a higher starting salary after graduation.
7.Sell your old textbooks.
There are some textbooks, books, and other materials that you may not want to add to your personal library. List or post them at the Student Union, E-bay, or other high-traffic areas as a way to recoup a portion of its price.
8.Study-abroad.
As participants in a global village, there will be a demand for multicultural and multilingual individual. Use travel abroad and student-exchange to bolster your resume and future earning power while it enhances your world view, sense of self, and cultural competence.
9. Book trips for major holidays in advance.
The dates for Fall Break, Thanksgiving, Christmas, and Spring Break are made available at the beginning of the academic year. Take advantage of this information and save hundreds of dollars by avoiding the price-gauging that accompanies last-minute reservations.
10. Rent with the option to buy.
If you know that you are going to remain in the same city after graduation because of an employment prospect, a serious relationship, or continued study, look for housing that offers an option of buying after several years of renting.

How Much Should "Holiday Spirit" Really Cost?

2007-12-03T16:12:00.000-08:00

With the holidays coming up, there is always the financial pressure to spend. We see it in the attention paid to Black Friday, an increase in the number of "discounted" deals-- to Broadway, from your favorite retail outlet, and holiday wish lists from your co-workers and family. And let's be honest, maybe even you caught the spirit. Maybe you have been hoping that Uncle Joe and Aunt Agnes got your not-so subtle hints about how a new laptop, laser printer, and suede leather jacket would make perfect accents to your wardrobe and home decor.

Holiday spirit and consumption have been mass marketed as one in the same. They, however, are not. They are mutually exclusive. The former is rooted primarily in a spiritual realm, with the belief that humanity should minister love, kindness, and goodness to the world in the same manner as Jesus Christ did, who Christians consider to be the human representation of God. The latter is big business hard at work trying to separate you from your hard-earned money with the rationale that spending money equates giving love.

Does this mean that I advocate that there should be no gift giving this holiday season? Not necessarily; some people genuinely get joy out of gift-giving, while others use this argument to mask their stinginess, selfishness, and thoughtlessness. I am, however, saying that there are several ways of showing love, kindness, and goodness to people in your immediate cypher that do not have to leave you indigent, financially resentful, and fiscally put-upon...

1. Some Thoughts Actually Do Count
Many of us lead thankless lives. As women, the burden of nurturing, attending to, sacrificing for the better good of the team, often is expected and overlooked. Often the best gifts for these "superwomen" are appreciation, recognition, and gratitude. During this holiday season, take a moment to write a letter, send a poem, produce a video journal, choreograph an interpretative dance, make an abstract drawing, take them to the pier to watch the sunset, or run a hot bath for these women in your life. The impact of these thoughtful acts will well be felt beyond the New Year.

2. Memories Are Priceless
The Adinkra symbol "sankofa", a bird looking backwards, while flying forward, serves as a mainstay in Ghanaian sculpture and art. It is also representative of a metaphysical understanding of the interconnectivity of the former self with the present self. The few times that we do stop to "smell the roses", do we also stop to reflect on our former selves, our journeys into this presentness? During this holiday season, give the gift of life: dig through the City archives to find your grandparents' birth certificates, honor the memories and histories that you have created by making a scrapbook, get your best friends together and take a group picture.

3. Give Time
We are living increasingly detached lives in this country--where technology and work have replaced human connection, conversation, and building. Often times, people that care for you the most, want YOU. Your time, your attention, your presence, your energy. As a gift, make time for those with whom you have lost contact. (phone call, card, visit). Reconnecting with those special people enriches your life way more than the newest, hottest, priciest thingamabob that mass media are peddling.

4. Reference the Bible

Remind greedy, gift-hungry folk that if Jesus, the Lord and Savior of millions, only got three gifts, from three different people, there is no reason why they, mere mortals, should expect much more.