Funny Money

Can it be true that there are relationships that begin and end based on the dollar. I was on Facebook the last couple of days posting responses to questions that friends were asking surrounding relationships and money. As the questions came I noticed that no one addressed the underlying issues that plague relationships and money; the issue of trust. I would give a disclaimer however I'm gonna speak the truth and I hope it helps somebody.

It takes allot to trust people nowadays in relationships. So many secrets, so much covering up when it's the truth that will set you free. Single people, I feel that you have it the easiest out of all love relationships. Those with a fiancé still have an opportunity to lay it all on the line and walk away and those with a spouse... well, till death do us part. But in some cases it has been till debt did us part. The fact is too many of us that are in loving, committed relationships are reluctant and a few are just unwilling to part with what we commonly call "my money". For those who haven't fully engulfed themselves in the concept of two becoming one when you get married, it means nothing is excluded. That includes your paycheck, your rental property, your stocks, bonds, 401k and the biggest of all, your debt. Some of us grew up with momma keeping a stash of loot (yes, i said loot) in case of an emergency and justified it by saying its because your crazy daddy don't know how to manage money. But if one can't manage the finances its not a reason to leave them out of the process. We all learned because someone involved us in the process. In reality, it further develops an environment of disdain and distrust that has reared its ugly head in the next generation.

How does that come into play with engaged folks? Well, expectations need to be at a minimum. You lived your life and had your experiences that shaped and molded the way you handle money. Your intended has their own experiences. Now I could be shooting in the dark but the chances that you both have had the same experiences are nil. You should meet them where they are and bring them up, lovingly. It builds trust and transparency with regards to finances. The number one reason that people don't want to have joint accounts is because they haven't learned that money doesn't change people. A lack of money or an abundance of money simply magnifies the true character of a person. (Singing) All my single ladies... if you don't believe me, think back on your last 5 dates or relationships and you'll see who is about the money and who is about you. If you're honest with yourself, you may also find out if you are all about the money! If you are engaged, that is the perfect time to open the financial floodgates and see who you are dealing with. Put your cards on the table, and remember that if you don't mesh and can't resolve the issues of finance, you really should eat your losses, swallow your pride and postpone the wedding. In other words get it right before you get married.

Married folks, financial issues in the household will implode your household and at the root of the issues you will find pride. Pride in unwilling to learn how to manage the money better. Pride in being unwilling to help your spouse do better. Pride in agreeing that the household is "just fine". Pride in thinking we don't want everyone all up in our business. Newsflash and reality check. Even those who teach financial education struggle in keeping it together with their spouses. There is no longer my money and his/her money. There is only the households money. Its not easy work, but it does require both individuals to have a set of standards that is agreed upon. Here's what a healthy financial plan in a household should look like.

1. Joint accounts to handle all household bills. One for the big bills (mtg, rent, car, etc.) and one for the smaller bills (utilities, cable, gas, insurance, etc.)

2. Individual checking and savings accounts. Each one gets one and you both determine and agree on what amount will be deposited regularly.

3. Both names should be on every major purchase. Homes, cars, properties. Joint credit or no credit, you're in this together.

4. Above all be patient. Don't rush to get everything you've ever wanted. You should be planning to be married for a loooong time. There will always be time to go on a vacation, buy a new car, purchase a new home. A little sacrifice in the short term will bring long term prosperity.

As always, I welcome your feedback.

The Λdvocate

My Response to President Obama's Address

I think it's safe to say that Gov. Jindal's response to President Obama's address last night was (fill in the blank). I left it blank because I want to focus on the financial dilemma that he represents for the constituents across his state. With his state in dire straights and a $2 billion dollar budget deficit fast approaching, we would think that Jindal would take every penny of the $4 billion dollar stimulus package. Especially being that the hurrican ravaged regions could benefit tremendously from the $538,575,876 that has been allocated to Louisiana. Under the stimulus plan the state stands to gain 50,000 jobs within two years. Let's say that he didn't take the money. Louisiana is currently is on track to create 347,790 by 2016. The stimulus plan will accelerate this by at least one year. The city of New Orleans has been limping along since Katrina and really wasn't on top it's game before the storm either. The cost to rebuild the coastal infrastructure is immense and the jobs that will come, will bring tax revenue, which will bring replenished budgets and thats how you rebuild, from the bottom up.

With that being said, it's clear that the GOP's new pawn that got thrown under the bus Tuesday evening, just doesn't get it. Sound like anyone else we know? I'm more amazed at the fact that we walked smack into a political minefield and started breakdancing with a G.W. hand movements and the Nixon smirk. I penned a brief response to President Obama's address, the one that a well qualified and level headed GOP member should have made. An address that is free of pork in the form of self interest. Ladies and gentleman, here it goes...

Greetings,

My heart is heavy and there is such a joy that I’m going to attempt to put into words. I had the pleasure of speaking with a gentleman prior to the polls closing on November 4th and part of the discussion was on his experience as a child not being able to drink from a non colored water fountain. He was amazed that during his lifetime he will see an African American man become president of the United States.His words brought to my mind the many living legends that braved water hoses, stones, dogs, batons, fires and all other manners of oppression. It brought to mind C.T. Vivian, Andrew Young, John Lewis and Dick Gregory. I watched as Rev. Jesse Jackson was in tears as President Obama took the stage to make an address heard around the world. I listened as the congratulatory words were brief and the reality of the day was expressed.

We must come together and move forward as one, this is that reality.No longer can we rest on the uncultivated laurels of the aberrant undertones in the civic, social and business communities. We can no longer excuse nor fool ourselves in thinking that there is strength in solitude and liberation without liability. We govern and preside over an immense cornucopia of individual organizations, non profits, small and large businesses, representing millions of employees. We also govern over 4 million unemployed Americans that are ready to hit the ground running and proudly get back into the workforce here in the United States. The nation has galvanized as one voice. The business community must galvanize as one voice. The financial industry, the auto industry, the oil industry must break their silence in transparency and galvanize as part of this one voice. The government can no longer be mute to the collective voices screaming for change. We, as a congress must be the ever listening ear to receive this growing voice.

As we move forward together and as we mission to rebuild the legacy of our country and respect of our new allies found around the world; let us move forward in boldness and with a relentless creed to no longer accept ignorance, otiose, mediocrity and apathy from one another.

Thank you and God Bless America.

What Does It All Mean? - The Homeowner Affordability & Stability Plan

First and foremost, I want to say thank you to both TheIcon and TheDiva for inviting me on their 1st Blog Talk Radio show this past Sunday. It was an awesome experience!!! Be sure to tune in on Sundays at 6pm by visiting http://www.blogtalkradio.com/thesavvysista

I'm amazed at what big businesses and government can do when a nations back is up against a wall. I am a few days behind in posting this because of the amount of financial happenings in the last few days was overwhelming. So now that I've been able to take it all in, including the New York Post's idea of a comic strip (no comment) let's break down what it all means for you.

On Tuesday The American Recovery & Reinvestment Act of 2009 was signed into law. 24 hours later on Wednesday, President Obama announced his Homeowner Affordability and Stability Plan and with the strokes of several very nice pens, the future of over 7 million homeowners became a little bit brighter. But was does it mean for you and your neighbors and how soon will the tension begin to get relieved from this $75 billion dollar investment. Well lets begin with the facts. The gives way to new provisions that will put lenders in a do or die situation. Lenders have until March 4th to decide if they will meet the following requirements:

• Reduce the interest rates to an agreed affordability level which is set at a 38% Debt -To-Income (DTI) Ratio on the borrowers current income.
• Partner with the federal government, who will match dollar for dollar, the further reduction of mortgage payments to a 31% DTI ratio.
• Agree to maintain the newly modified payment and interest rate in place for five years and have the option to reduce the mortgage principal in order to meet this requirement. The lowest interest rate that can be obtained is 2%

So you may be wondering what's in it for the lenders and servicers, because we all have seen that generosity isn't exactly at the center of their business model. Keep in mind that many mortgage lenders OWN the servicing entities as well. You knew there was going to be some shadiness. Well here's what they'll get:

• $1000 up front for every eligible modification that servicers establish after March 4th and $3000 over 3yrs if the borrower stays current on the modified loan.
• $1500 for mortgage holders and $500 for each modification made while the mortgage is still current.

Now that you see that the lenders and servicers aren't going to be participating solely out of the goodness of their heart, be sure to call them up after you read this to make sure that they will be participating in the initiative. The will be compensated plenty of money for doing what they should have been able to do on their own all along. In essence, the funds given to participating lenders and servicers is going to determine your eligibility. If its going to cost the lender less money to foreclose on your property than it will to modify your loan, you may be in trouble. Additional funds, short sales and other measures will be made available by the initiative to offset the difference on a case by case basis because most homeowners will not fall into this dilemma.

There is a win win for current homeowners, however the eligibility requirements are as follows.

• Your mortgage MUST be a CONFORMING LOAN owned or guaranteed by Freddie Mac and Fannie Mae. Before you get too excited, double check with your mortgage holder to make sure that your loan falls within this category.
• Being late on your mortgage or at risk of going into foreclosure
• Mortgaged property MUST be OWNER OCCUPIED and the mortgage balance cannot be higher than Fannie Mae or Freddie Mac's current conforming loan limits. If you are an investor looking to flip properties or save your vacation home, sorry for you.
• If your total household expenses (mortgage, car note, utilities, etc.) is greater than or equal to 55% of your total household income then you will be required to complete a debt counseling program. Whether or not it needs to be completed before or after your modification has not been determined yet.

If you want to know what the limits are for your area,

Visit Fannie Mae:
http://www.fanniemae.com/aboutfm/loanlimits.jhtml?p=About+Fannie+Mae&s=Loan+Limits

Visit Freddie Mac: http://www.freddiemac.com/singlefamily/news/newsletter/2008/11/limits.html

Borrowers that are able to have their loans modified and stay current on their payments get a $1000 a year reduction in their principal balance for up to 5 years courtesy of the initiative. If you have met all of your lender or servicer qualifications and you are still unable to get a modification, a bankruptcy judge will have the authority to waive any balance above the homes current appraised value and modify the payment and principal balance . Now that's powerful. Considering that it is limited to the middle class homeowner properties that are within the conforming limits set by Fannie & Freddie.

Now after all of this, you're probably wearing a grin that says “this sounds great, but how can we know that we wont get the shaft for the 3rd time? Well, the Obama Administration, the FDIC and several other organizations are developing newer, stronger and more detailed guidelines that will be in place by March 4th, 2009 and will be available online. All participating financial institutions and credit unions will be required to show and prove that they have modification plans in place that strictly adhere to the guidelines that will be created.

In my opinion this plan will work well for those that need it the most and it will irritate those that it doesn't. At the end of the day, there will never be a plan that will help and please everyone, so they went for the greater piece of the pie which is homeowners with conforming loans.

Job well done Mr. President.

Give Yourself Some Credit... Literally

I’m sure you’ve heard of the credit repair companies that have been promoting what they can do to for the credit ratings of individuals across America.

“I went from having a 550 to a 690 in 5 months! It was so easy!”
“I was able to refinance my car and negotiate my credit card interest rates, saving my family over $1,000 a month!! They saved my marriage!!”

With the negative impact and changes due to credit repair programs, it would be a tragedy not to share the basics and provide a proper education on how to manage and maintain your credit rating, yourself. Credit repair has proven to be a less than adequate means of solving our country’s credit problems. We have all learned that credit is important and necessary in this day and age. We have all heard the horror stories of companies pulling our credit reports, and instead of facing that new car or home, we face decline letters, increased stress, decreased lines of credit, divorce, loss of available credit, depression and in many cases, closed accounts.

To bring everyone up to speed on current credit situations surrounding credit repair, allow me to present some facts.

Legally, there isn’t anyone that can remove information from your credit report that is negative and/or accurate. By law you can investigate incorrect and/or incomplete information on your reports at no charge. The Fair Credit Reporting Act (FCRA) states that you are entitled to a free credit report anytime that you have been on the receiving end of adverse action such as declined applications for bank accounts, car loans, mortgages and even employment. For more detailed information, on FCRA see below.

You are also entitled to request a free copy of your report from each of the three consumer reporting agencies, once every 12 months. This can be done through the mail for free. Trust me when I say there is nothing FREE about free credit report dot com or any other site that has to pay to advertise services that you can do yourself for free.

As you can see, if someone legally can’t do the work for you, how can they really help you? That’s right, they can’t. With the average cost of credit repair on the rise it has now become an expense that you can keep for yourself and apply toward your own bills. But let’s make sure that we understand exactly what a credit report is. Credit reports are a numerical representation of our financial character and fiscal maturity. Our financial habits are translated into a score and that score determines our eligibility of obtaining credit lines, homes, vehicles and in some cases employment. Credit doesn’t have to be a hit or miss or even blind luck. Let’s uncover three myths regarding credit and credit management as well as provide options to building a positive credit profile.

Myth #1: Run your credit card up and pay it down with the minimum monthly payment.
Fact: This is one of the fastest ways to ruin your credit.

Anytime your credit card balance exceeds one-third of your credit line, your credit score becomes stagnated and begins to decline. Why? When you exceed 1/3 or 33% of your credit limit your Debt-To-Limit (DTL) ratio begins to decrease. Your DTI is the difference between what you have spent and the maximum that you can spend. For example, on a credit limit of $1,000 and a balance of $800 then your DTL is 80%. That’s 47% above where it should be. Pay down your existing balances and you will see a near immediate change in your credit score.

Myth #2: Make sure and pay your bills when the statement comes.
Fact: By the time you’ve received your statement, if you receive it at all, then you are already late.

We have been misled into thinking that statements are a lifesaver and if we don’t receive our statements, we don’t have to pay. I’ve heard it all. The fact is that when it comes to mortgage statements, only homeowners with adjustable mortgages are required by law to provided monthly statements from they’re mortgage service provider. For fixed rate homeowners, mortgage companies are not required to provide anything more than an annual statement. If you don’t receive a statement from a creditor that doesn’t mean that you don’t pay the debts that you signed your name too.

Myth #3: I should only use my credit cards for large purchases or in emergency situations.
Fact: It’s actually better to make regular purchases on your credit card and pay them off in full immediately.

Credit cards are nothing to be scared of or placed on a pedestal. They do however need to be handled with respect. Of the two types of credit, revolving and installment, revolving is usually the more difficult to maintain. Revolving credit in particular is a luxury and should only be utilized in place of the cash you already have on hand. Cash in hand won’t do anything for your credit, however substituting a cash purchase for a credit card purchase will affect your credit. As a rule of thumb, if you have the option to use a credit card versus cash, make a wise decision depending on your situation.

In order to build a positive credit file, we need to understand all the pieces of the puzzle called a credit score. Here is a breakdown of the different areas involving credit and how much they weigh on your score.

• The history of your payments equates for 35% of your score.



• A healthy mix of revolving and installment debt accounts for 10% of your score.



• The balances and DTL ratio accounts for 30% of your score.



• 15% of your score is derived from the length of time you have been with your creditors.



• Random inquiries and new credit lines make the remaining 10% of your score.

There's something beautiful about learning something new, especially something that you want to know about. It removes the opportunity to continue operating in ignorance. You know better, now do better. It's time to leave a better legacy. It's time to own something. It's time to give yourself some credit... literally.

The Λdvocate

ECONOMIC EQUALITY: HAS THE DREAM BEEN REALIZED??

Many of us have been bathed in the words of Dr. King's “I Have A Dream” speech, however the purpose behind his words have seemingly gone down the drain of our eardrums. We will all be mistaken if we continue to believe that his dream has somehow been realized and that we have reached the mountaintop. A major part of Dr. Kings dream was economic equality. In his 1967 speech, “Where Do We Go From Here: Chaos or Community?”, he stated:
The curse of poverty has no justification in our age. It is socially as cruel and blind as the practice of cannibalism at the dawn of civilization, when men ate each other because they had not yet learned to take food from the soil or to consume the abundant animal life around them. The time has come for us to civilize ourselves by the total, direct and immediate abolition of poverty.

Let's fast forward to 2009. Eleven million Americans are out of work; this equals the total population of New York City and Chicago combined. When it comes to the unemployment rate among African Americans, it is over eleven percent -- double that of any other race in the United States. When it comes to income, out of 13.7 million African American households sourced in the 2004 Census, almost 10.5 million households (68%) earn less than $75,000 a year. Out of 23.5 million Americans earning over $100,000 a year, over 87% are Caucasian and 1.04% are African American. And as for poverty, 12.5% of Americans live in poverty and of them 24.5% are African American according to the 2008 Census.

To answer the question, no, the dream has not yet been realized, a notion that was seconded by members of the King Family on Inauguration Day. On a socio-economic level, we are unprepared to handle the opportunities that will be presented with the election of an African American president. In and of himself, President Barack Obama's inauguration doesn’t automatically give us, the black community, a voice. It gives us an new opportunity to be seen. Not necessarily appreciated, but it gives the world an opportunity to give us a second look. A second look is needed because the first spotlight view that the world had of us as a people since Dr. King’s passing has been unfavorable.

The last group of individuals or leaders that placed the African American community in the spotlight included Jesse Jackson, Sr., Al Sharpton, Michael Vick, D.C. Mayor Marion Barry, Tupac, Marion Jones, Michael Jackson, 50 Cent, Detroit Mayor Kwame Kilpatrick, and a slew of embattled pastors. They all have left a tainted inward view of what it really means to be Black in America from a global perspective. Before President Obama took office, the sum of the African American community was sports, drugs and entertainment and it was unfairly perceived and packaged as being rooted in Hip Hop. We as a people looked unfavorable on a global front because of the publicized personas and actions of few. For Black America to somehow think that we have arrived says that allot of us have been asleep at the wheel.

So where did we go wrong? We’ve lost our grasp of what has always been the mainstay of the black economy and that is ownership. We've gotten away from what I call Grandparent Economics. Think about how momma and them owned their home free and clear, owned their vehicle free and clear, raised 5-10 children, put them all through college and can still afford to financially support the entire family 30 years later. Now think about how a family of four making twice as much money is struggling to meet the monthly bills and can't be called on to help anyone else. We have also gotten away from being landowners. In 1905, African Americans owned over 19 million acres of land. As of 2005 we own 1.1 million acres and falling. Ironically the average black farmer earns over $600,000 a year and you read earlier about how many of us earn less than $75,000 a year. Numbers don't lie, but we as a people have been lying to ourselves. We created a rush to be integrated into everything that we were denied, but didn't pause to see what things we already did better or if it would really work for us in the long term. The Black Economy has always been rooted in ownership and as of 2009, we are losing our roots. We need to return back to the basics of our own economy if we are going to see the essence of Dr. Kings dream materialize in our lifetime. In a way, Dr. King's dream of economic equality for America as a whole has turned into a fiscal fantasy that is a clear and present nightmare for African Americans.

Having an African American President is a significant milestone for the American people as a whole, not just the African American community. Mainly because he is not the black people’s president, he is the American president. Our dreams of having an African American in the highest office in the land, The President of the United States of America, is the only dream that has been realized.

The Λdvocate

Understanding The Black Economy Pt. 2

Our communities were suffering many financial disparities well before the rest of the country declared that all of us are in a recession. Many of us have been in a recession for generations and that unfortunate fact is why we have come together. Our communities need an opportunity to be educated on the underlying and generational financial issues that concern us the most. There has been a major mis-education in regards to the black economy and how our financial system works and many of us have come to realize that the black economy is not rooted in Wall Street.

The legacy of the African American leaders of past generations is one of strength, fortitude and faith. Everything they stood for and at times sat down for could have cost them their lives and for many, it did. They were selfless and gave themselves for the sake of the generations that will continue to come well after their moments of remembrance have passed. Their contributions changed history for those who have come to walk in the trails they blazed. It was for our sake that they braved unthinkable horrors that had no promise of reward. So as we stand on the brink of celebrating the first black history month with an African American president at the helm of this great country of ours, and as we prepare to navigate through this socio-economic mess, we must ask ourselves; for whose sake have we given our contributions and what is the new promised land that we working towards? In other words, where are we going and who are we going there for?

To answer this we must first establish our starting point and acknowledge exactly what we are facing as our challenges.

Challenge number one is Health & Insurance. The Black community has gone from fighting for equal rights as Negro’s to fighting against self segregation as African Americans. Our families have been mutilated through the exploitation of drugs, sexual immorality, derogatory music and dishonorable lifestyles, to the point that over 90% of African Americans are blood related to a current or former drug abuser, alcoholic, sex offender or ex-offender. As a people, we are at the gold medalists of every major deadly disease list that no one wants to be on. We haven’t embraced the full value and cost of being healthy and understanding the importance of insuring every area of our households.

Challenge number two is Saving & Investing. Black America makes up the world’s number one supply of resellers and not originators of products, ideals and cultural practices. In light of the current economic situation, we found ourselves making financial decisions that we knew should not have been made. We bought vehicles and homes we had no business purchasing. We bought $500 handbags and didn’t have $5 left to put in them, bought $400 shoes and walked to the bus stop because we couldn’t pay the car note on time, bought $300 video games but didn’t purchase life insurance, spent $200 on a date, but didn’t pay child support for the month, bought $100 tie to wear to church, but couldn’t pay tithes. The average African American household not only does not save, but spends over 1% beyond of its income, creating a constant cycle of increasing debt. The average African American household net worth is $6,000 versus the average Caucasian household of $88,000. We have some work to do if before we can claim that the dream has been realized. Until there is economic equality, the dream will not be realized.

Challenge number three is Retirement. For many of us Social Security is a line item on our paystub. For others it’s a life line to surviving in these economic times. I liken Social Security to gravity. You don’t need to understand how it works to feel its effects. Come 2018, the Social Security Administration will begin paying out more in benefits than they take in as revenue. This fact may be accelerated due to the massive unemployment numbers of which the SSA is receiving less income from FICA tax revenue. Disability insurance, Medicare for those 65 and older and state run Medicaid programs are essential to the survival of the community. Our seniors are our history; the voices of wisdom, the lives that helped shape the lifestyles and opportunities that we are able to enjoy today, whether or not we take advantage of those opportunities. The only guarantee that we have is that we are one day older than we were yesterday. For those who are fortunate to see those days turn into years, we must do all that we can to educate and support their consistency of living and when needed, the increase in standard of living. In reality, living on $1,500 a month isn’t a goal that any of us have in mind for our retirement and our golden years. Yet too many us will experience the tarnish and oxidation of unmet expectations if we do not choose to take action on every financial level of our lives to work towards a better legacy and it’s never too late to do so.

I find that there isn't much difference between post-Egypt Israel and the 21st century African-American community at large. We were delivered into a new land called Equal Rights, a land flowing with free speech, the right to worship and the right to vote. The blood of men like Dr. King, Nelson Mandela and Malcolm X has stained the gateway to this land. And unfortunately, like Israel, we didn't think to capitalize on what we truly had from the onset. We have become the greatest spenders of all time with the least ownership of any race. We possess an unprecedented 90 billion dollars in spending power as a community. Yet 1910 seems to be the magic number. Only 45 years after the 1865 abolition of slavery, land ownership among African Americans was 19 million acres with over 40% being heir property. By 2005, with the highest number of African American millionaires and billionaires in history, our total land ownership dropped to 7.7 million acres and 80% of the heir property owners having no plan for property succession. Those 7.7 million acres represents 1.0% of land ownership in the United States.

President Barack Obama may or may not be around 50 years from now. Attorney General Designate Eric Holder may or may not be around 50 years from now. In 2008 alone we lost many great community leaders here in Metro Atlanta. Who will our children be speaking of that made great sacrifices for the issues plaguing the African American populous? Whose names from this generation will be etched into history and printed in the textbooks that our grandchildren will read about? Who will be a source of inspiration to a college senior yet to be born into the earth? We have received an awesome blessing in a true American President. However, one man cannot stand alone to be the one glimmer of hope and change for our community.

S.F.

Redefining & Rebuilding Main Street (Pt. 2)

Allot has transpired since part one of this series on rebuilding our communities. The global economy has been through an incredible series of events whose undulations have had far reaching effects. On one hand we can debate about who did what, when and how it was done and cast blame externally. However we cannot leave out the truth that putting our own selfish desires and having them in the mix with rampant temptation played a major role in this crisis. As a people we have been in the habit of having a false sense of priority when it comes to our spending habits and we’ve been sinning in the midst of abundance. At the end of the day, the rules of man will always fall in submission to the word of God. This crisis isn’t simply about the poor decisions of any administrations or the greed and corruption of high ranking executives in the financial markets.

Times such as these are centered on the fact that God is the source and he supplies our needs and that we’ve lost our focus. In a 21 century society, Christians included, we have taken on the position of being self sufficient. “I got it” has been the resounding theme from music to television and the portrayal of success in the business community. Shaking your head in disbelief? Let’s take a look at what has been transpiring over time. In part one of this article, we discussed specific areas that need to be addressed as a community, but now we’re going to address areas that need to be revealed individually. This is the time for reprioritization of self.

The Christian community outspends almost every demographic in the United States reflecting an increasing shortfall in the area of contentment. We’ve come to a place that has our fear of God being trumped by our fear of being without money and material things. We’ve become removed from the biblical accounts that define humility in finances. Instead some have followed the actions of the world and even those “Pas-stars”, whose actions and lifestyles are far from humble. Understand that there is absolutely nothing wrong with the economy if you understand that the Earth and everything in it belongs to God. Maybe God is taking a radical step to get the attention of his people in the one way that is guaranteed to do so. We’ve been idolizing real estate, vehicles, unreasonably expensive clothing and merchandise that our blessing of a job allowed us to buy. But we have a book full examples that show us how to do more with less and how if we come together we can do more than if we are separate.

In rebuilding our communities, we need to rebuild ourselves. Over the years I’ve run across many homeowners that were in such a rush to buy a large, beautiful home. Yet as time passed and the reality of homeownership sank in, I heard many of them say I wish I would have waited. I also heard them say, they weren’t ready. Growing up my parents always told me that my eyes were bigger than my stomach. I ate allot, not necessarily because I was hungry, but because great food was readily available. Many of us have made life changing purchases simply because we felt we could afford it and it’s available. We didn’t consider the long term effects of indulging our short term wants. We didn’t count the costs of ownership when we left the dealership in a brand new Chrysler 300 or BMW 3 series. We didn’t count the cost when we decided to get the 5 bedroom house versus the 2 bedroom condo. Though they may have costs the same price upfront, in both instances there is a severe difference in the cost of ownership.

At the end of the day, we need to adjust our own financial habits. One may feel that all the stars are aligned and the deal is so on time and that you have to make that purchase right away. We need to pause in the midst of our desires being tempted and ask for direction and guidance. Every analyst and tv commercial is telling us to buy, buy, buy. Buy a home because it’s the best time to buy. Buy a car, because it’s the best time to buy one. Buy stock because it’s the best time to do. The truth is, it’s anytime is the best time to buy real estate, automobiles and investments.

The question you need to ask yourself is whether or not it’s the best time for me. How will it affect my household, my finances, my piece of mind, if I do this now. You can never go wrong waiting if you’re waiting on god to tell you what to do. We need to develop a stronger ability to say no to the things we want and say yes to the things God has for us. As always, I welcome your thoughts and comments.

Thoughts on Unemployed Husbands

2.9 million Americans are out of work, so I know that somebody knows a family that is dealing with the husband being unemployed and the wife working. I've had the opportunity to speak with several men since June 08 on the topic of heading up their household in the times that they were unemployed. It's hard enough being a husband, an earthly provider to the physical and spiritual needs of your family. Being unemployed, adds an undeniable sliver of uncertainty and anxiety in the heart and mind of any man, but it's brings a different dynamic for husbands. I'd like to share with you those dynamics. Now fellas, keep in mind that I'm assuming that you know what kind of woman your wife is and what kind of husband you are. And ladies, vice versa.

My wife and I discussed and prayed over me stepping away from my previous employer for weeks. It wasn't easy to talk about for me because I know that a short or long employment gap would mean a that biblical fact and worldly ideology would meet at center field. 2 Thessalonians 3:10 states "that if any would not work, neither should he eat." Modern day thinking has taken this scripture, out of context to a degree and I'd like to present the complete picture so that we're either on one accord or you understand a different point of view on the matter.

At that time, the Thessalonians were being persecuted by their own countrymen for some time. Paul wrote to them twice, the second time to reinforce the necessity of the Thessalonians to live in ways that are pleasing to God. Some had stopped working because they believed that Christ was returning soon. Paul reiterated the signs of the coming of Christ and commanded the Thessalonians to stay away from any Christian who lives in idleness and that does not follow the new traditions of hard work. In verse 11, he states the very things that those that are not working SHOULD NOT be doing. Living idle lives, refusing to work and wasting time being all up in other peoples business. As a husband and wife, the two have become one. What I own, she owns. What I owe, she owes and what I earn, she earns, vice versa. Whether you agree with this is open to another discussion however the bible is the final word, Ephesians 5:31 to be exact.

The two shall become one. I along with the men that I've dialogued have all had different circumstances under which unemployment came about. Layoffs, downsizing, terminated and resignation. In all instances, the writing was on the wall and we were wise enough to have our households managed so that we can still be OK on one income. However, it's not easy seeing your wife off to work everyday, being her listening ear, her support, her rock, her chef and maid (if you're smart) and come face to face with denial letters, interview after interview and bouts of depression, uncertainty and fear.

We're husbands that are not living idle lives, we're certainly not refusing to work and don't have the time to be in any one else's business.

So can we eat or is it a problem for us to get a meal being unemployed husbands??

As always, I value your thoughts and feedback...

Rebuilding & Redefining Main Street Part 1

Allot has transpired since part one of this series on rebuilding our communities. The global economy has been through an incredible series of events whose undulations have had far reaching effects. On one hand we can debate about who did what, when and how it was done and cast blame externally. However we cannot leave out the truth that putting our own selfish desires and having them in the mix with rampant temptation played a major role in this crisis. As a people we have been in the habit of having a false sense of priority when it comes to our spending habits and we’ve been sinning in the midst of abundance. At the end of the day, the rules of man will always fall in submission to the word of God. This crisis isn’t simply about the poor decisions of any administrations or the greed and corruption of high ranking executives in the financial markets. Times such as these are centered on the fact that God is the source and he supplies our needs and that we’ve lost our focus. In a 21 century society, Christians included, we have taken on the position of being self sufficient. “I got it” has been the resounding theme from music to television and the portrayal of success in the business community. Shaking your head in disbelief? Let’s take a look at what has been transpiring over time. In part one of this article, we discussed specific areas that need to be addressed as a community, but now we’re going to address areas that need to be revealed individually. This is the time for reprioritization of self.

The Christian community outspends almost every demographic in the United States reflecting an increasing shortfall in the area of contentment. We’ve come to a place that has our fear of God being trumped by our fear of being without money and material things. We’ve become removed from the biblical accounts that define humility in finances. Instead some have followed the actions of the world and even those “Pas-stars”, whose actions and lifestyles are far from humble. Understand that there is absolutely nothing wrong with the economy if you understand that the Earth and everything in it belongs to God. Maybe God is taking a radical step to get the attention of his people in the one way that is guaranteed to do so. We’ve been idolizing real estate, vehicles, unreasonably expensive clothing and merchandise that our blessing of a job allowed us to buy. But we have a book full examples that show us how to do more with less and how if we come together we can do more than if we are separate.

In rebuilding our communities, we need to rebuild ourselves. Over the years I’ve run across many homeowners that were in such a rush to buy a large, beautiful home. Yet as time passed and the reality of homeownership sank in, I heard many of them say I wish I would have waited. I also heard them say, they weren’t ready. Growing up my parents always told me that my eyes were bigger than my stomach. I ate allot, not necessarily because I was hungry, but because great food was readily available. Many of us have made life changing purchases simply because we felt we could afford it and it’s available. We didn’t consider the long term effects of indulging our short term wants. We didn’t count the costs of ownership when we left the dealership in a brand new Chrysler 300 or BMW 3 series. We didn’t count the cost when we decided to get the 5 bedroom house versus the 2 bedroom condo. Though they may have costs the same price upfront, in both instances there is a severe difference in the cost of ownership.

At the end of the day, we need to adjust our own financial habits. One may feel that all the stars are aligned and the deal is so on time and that you have to make that purchase right away. We need to pause in the midst of our desires being tempted and ask for direction and guidance. Every analyst and tv commercial is telling us to buy, buy, buy. Buy a home because it’s the best time to buy. Buy a car, because it’s the best time to buy one. Buy stock because it’s the best time to do. The truth is, it’s anytime is the best time to buy real estate, automobiles and investments. The question you need to ask yourself is whether or not it’s the best time for me. How will it affect my household, my finances, my piece of mind, if I do this now. You can never go wrong waiting if you’re waiting on god to tell you what to do. We need to develop a stronger ability to say no to the things we want and say yes to the things God has for us.

© 2008 The Joseph Consortium, LLC

Understanding the Black Economy Part I

We’ve watched and read every bit of news throughout 2008 as it relates to the downward spiral in this global economy. The issues have done more than scathe the surface of our households. The issues have taken on the role of a meat cleaver. They’ve cut down to the bone of our family foundations, exposing the many facets of financial mis-education that exists across all tax brackets.

There is something institutionally off key when men and women of all ages, education and income levels, face the same dilemmas just on different scales. It lets us all know that we need to come together. It lets us all know that it’s time to dig deep and get it right, not just for ourselves but for generations to come. So the question today is…

“What financial foundation can we begin to build that is worth handing down to the next generation?”

There are many ways to get rich. But would you rather be rich or wealthy? It’s been made pretty clear that the Jones’s that many have been trying keep up with having been playing an incredible game of charades. The jobs, the homes(s), the cars, the private school for the children, the vacations and of course, the expensive shoes and matching purses that are the envy of the PTA. We looked at everything they had and then we had a choice to make. Option A was not to worry about what anyone else has or looks like they have. They have theirs, you’ll have yours and I’ll have mine (and together we’ll be fine...). And you thought it was just a song? Option B was to worry about why they have nice things and you don’t. Even though you work just as hard and nothing ever seems to come to you easy, but they always have nice new stuff and go to nice places and the closest I’ve been to a vacation was seeing one on the travel channel.

Why did we make a lifestyle out of competing for false wealth and short lived celebrity? Over the last 150 or so years, the percentage of African American wealth in the Total Net Worth of the United States has not changed. We remain only 1.2% of the country’s total net worth, yet we make up 13% of the total population. To put that in perspective, even though we have the most amount of African American millionaires and billionaires in history, we have not progressed beyond the same 1.2% from 1865 (Civil War Reconstruction Era). Slavery ended in 1865 with the Thirteenth Amendment and we are dead even with the net worth of the then newly free African Americans. My mind screams the necessary yet assumedly rhetorical, why?

Surely the net worth of the country in 1865 was pennies in comparison to what it was during the Clinton Administration, yet the African American population’s percentage of 1.2% hasn’t grown. There are several facts that we must acknowledge before we can begin to understand why. Do understand that when it comes to the practical application and foundations of African American economics, we all need to keep an open mind. There is no room for pride or wearing of a prized college degrees on one’s sleeves. The economy doesn’t respect documents that show people that we did well. Recipients of PhD’s, MBA’s and GED’s are all getting foreclosed on and laid off, so it’s time to let go of our usual sight lines of forecasting financial success.