Financial Planning for 2008

Personal finances can be a bit of a challenge. No matter how you’ve assessed your situation, there are ways to improve your bottom line.

Below are 9 tips that may help you improve your long-term financial planning:

1. Spend less than what you make.


2. Save more – Pay yourself first. Pull out 10% of your income before anything else is done. This 10% can include your 401(k) account, etc.


3. Know your net worth. This number should increase each year.


4. Ensure that you have money set aside for an emergency.


5. Reduce your debt. Create a list of your creditors and categorize them by interest rate (highest to lowest). Pay them off in that order.


6. Use credit cards wisely. If you decide to use them, ensure that you can pay the balance in full when the bill arrives.


7. Ensure that you are properly insured. Life, home, health and auto, are only a few.


8. Ensure that you have a will and/or an estate plan.


9. Monitor and manage your portfolio. Ensure that you are working with a certified financial planner, so that your long-term financial goals are addressed.
   

This information can serve as a mechanism to get you back on financial track.

Source: PrimeWay Federal Credit Union

Set Achievable Goals

Every new year many people make resolutions, things they vow to do or not do during the coming year. These resolutions typically range from losing weight, saving money, joining a group, changing a behavior, getting a job, or some other major achievement. People typically set goals so they can change the direction of their lives.

It is possible to do what you want, but to make it happen, you have to create a solid plan. This lets you see the positive fruits of your goal-setting labor. Having direction is a good way to start the year, but are you tired of creating goals that you forget after a few weeks?

Here are five tips to help you.

• Be willing to change –To reach any goal, you have to change something. This can range from your attitude, the way you talk or respond to people, and maybe even the way you dress. You have to accept the personal changes that will change your life to what you want it to be. Remember that you can’t keep doing the same thing and expect different results. If you’re ready to make a change, you can do it.


• Create Realistic Goals – “Realistic” is what matters. These include old behaviors you are willing to change if you expect to reach stop doing something you know isn’t good for you. Don’t include the fluff things that just sound good. Now put that list where you will see it every day: on your computer, on the bathroom mirror, where you’ll see it as you leave your room or the house. This should keep these goals in your face and on your mind. In fact, you’ll be motivated to reach them so you don’t have to see that note any more!
  
• Find a Buddy – If your goal allows it, include someone who needs to make the same change. This can be the support system that you need to "Make it Happen".
  
• Track your Progress– If you make several resolutions, keep a record of your goals and successes. That way you can see your success—and where you need to improve.
  
• Stick with it– Don’t get discouraged and give up if things don’t move as quickly as you’d like them to. Change takes time and patience. You can reach almost every goal if you are willing to work at it. Stay positive and focused and ask for help if you need it.
  
• Old habits are hard to break, and when you do break them, you’ve done something important—both because you had been doing something that wasn’t good for you and because you’ve overcome an ingrained habit.
  
  Good luck and have a successful new year achieving goals you have set and kept!

Career Limiting Move - Visible Tattoos

Moving to Houston from the Midwest has been an interesting transition, as I have seen more visible tattoos in the workplace than ever before. I have talked and interviewed more people for professional jobs that seem to think that visible tattoos will not hamper their job search or their career mobility. They apparently got the tattoo/s at a younger age and at the time, were not thinking about the long-term ramifications it would have on their image and career.

I have also talked to parents with young adult children (ages 18 to 21) about this issue and many did not know that they had tattoos. I am one of those parents. For many, it wasn't an issue of them getting the tattoo, although I would have preferred that she did not get one. It was the fact that it was not hidden.

At this particular age, most young adults think that they know it all and have all of the answers. But, we all know that is not the case. The unfortunate aspect of this issue is that there are qualified people being passed over for jobs and promotions due to the fact that they have visible tattoos.

So, if you plan to get a tattoo - ensure that you think about the location, as it will have a long-term impact on your image and career.

Politics - Educate Yourself

Politics is a hot topic, but it is even more important today, as this is an election season. We have seen the various presidential candidates and what they have to offer. Many of you know who you are going to endorse and some of you are undecided. But, after you watch the news and read various articles, have you ever taken a step back and thought about the various political terms that you hear on the news? Do you know what the terms mean? Over the last several months, I have attended some of the various political events. After talking to some of the attendees, I've assessed that many did not know the candidate's background nor were they familiar with some of the “basic” political jargon.

Example, are you familiar with the following terms:

· Conservative
· Republican
· Democrat
· Blue Country
· Red Country
· Purple America
· Kool-aid Drinkers
· Liberal· Red Wing
· Left Wing

There are more political terms, but these are some of the basics. It is not a bad thing if you do not understand these terms. But, it is vital that you become familiar with them, as doing so will assist you in making an educated political decision. Not to mention, the election process should not be a popularity contest. It should consist of the various issues, the candidate’s background, their political history and what they stand for, etc. But, in many cases that does not happen. The next question is why would someone attend a political event, if they do not know what is going on? Many people that I talked to noted that they had hoped to meet certain people and make some business connections, network, etc.

Do not get me wrong, that is not a bad idea, but you must also know what is going on around you, from a political perspective as well. Please note that I am not endorsing anyone in this article. I am hoping to encourage you to take the time to better educate yourself on the political process. You can learn more about the various political candidates and the process by:

· Reading more about politics and the candidates.
· Watching the various political debates.
· Assessing what the candidates accomplished.
· Assessing their political experience.
· Knowing their platform.
· Go and listen to them speak, if possible.

Voting is a right and do not take it for granted. In order to properly exercise that right, you must equip yourself with the tools needed to make an educated decision.

Please do not vote for a candidate because your friends and relatives have decided to. Select a person that you have properly assessed and feel will do a good job for the American people, no matter what race or gender they are.

Diversity - Reality or Farce

As we begin a New Year, it is always best to take a step back and reflect on what has occurred. This past year was remarkable, as women continued to take over the workforce, more fathers stayed home to take care of the kids and diversity was “talked” about around the country more than ever before. Interestingly enough organizations that felt they were not recognizing diversity believed that 2007 was the year to address this topic.

First, do you have a clear understanding of what your organizations definition of diversity is? Being that there are so many facets of diversity…again, I ask…do you know what your organizations definition of diversity is? Typically, when people hear the word diversity...they think of black and white. But, the word diversity has a much larger scope that what people think.The Merriam-Webster’s definition of diversity is: The condition of being diverse : VARIETY; especially: the inclusion of diverse people (as people of different races or cultures) in a group or organization.

Being that we live in a multi-racial workforce, many organizations are in the process of ensuring that all employees are properly educated on the various aspects of diversity. They are also proclaiming to ensure that all aspects of management look like the front-line and middle management workers as well. As we all know, this is a good idea and it sounds great, but what is taking place in your organization to ensure that this happens.

Now, I do understand that it can take some time to obtain diversity. But, if you notice over time that no “real-changes” have taken place, then maybe you need to do some organizational re-assessing. This is something to think about from a career planning perspective. Yes, there are many organizations doing a great job ensuring all departments are diverse, but do you work for those organizations? And, does the organization that you currently work for have sincere intentions or do you feel that your organization is merely telling you what you want to hear just to appease you?If you are a minority employee, aspiring to advance in your career, what motivates you to stay?

Do you, as a minority employee feel that if you perform well and stay on-top of “your game” that you have a good chance of being promoted to the next level? If so, look around and assess how many minorities are in the position that you aspire to advance too. If that person does not exist, who do you (as a minority employee) talk to about getting to the next level? Yes, you can talk to anyone about your career journey, but, it is not the same. Have you ever asked yourself is this for real? Have you seen any changes? Is upper management going to “practice what they preach”or is this all a farce.

How to be a “Successful” business Woman of Color in a World filled with Minority/Female Stereotypes

Being a successful woman of color is a very challenging task.

Each day business women of color run the risk of meeting a male business colleague or potential client that does not think that she can do the job because of her gender and/or race. They also deal with various female stereotypes such as:

• Women are nurturers and are too emotional to get the job done.


• Women make better caregivers, not business people.


• Women are not mentally strong enough to handle the pressure that goes along with the job.


• Women make “bossy” managers and are difficult to get along with.Women are moody and their minds changes with the wind.


• Women are indecisive and are not good at problem-solving.

Although, the business “glass ceiling” exists, women of color in today’s business world are stronger, savvier and smarter than ever before and are able to destroy these myths. It is apparent that women of color do not believe these myths, as the Center for Women’s Business research reports that - as of 2004: Women of color owned an estimated 1.4 million privately-held firms in the U.S., employing nearly 1.3 million people and generating nearly $147 billion in sales. Firms majority (51% or more) owned by women of color now represent 21% of all privately-held firms majority-owned by women, meaning that one in five such firms is owned by a woman or women of color. Women of color own 36% of all firms owned by persons of color.
Between 1997 and 2004, the number of privately-held firms majority-owned (51% or more) by women of color is estimated to have increased six times faster than the number of all U.S. firms (55% vs. 9%). During the same time period employment increased by 62% and sales by 74% among firms owned by women of color (pg.1). As we have seen, change is here and organizations are recruiting women of color to run their businesses or they want to do more business with women owned businesses.

According to, Of Broken Glass & The Past, “In general, women are seen as having more integrity than men. With the latest Enron scandals and government pressure to make sure businesses are run ethically, women are stepping up to the challenge” (pg 2). So, can an aspiring or an existing woman of color overcome many of the female and/or racial stereotypes that exist? Yes they can, but they are a few things that must be done before you try to overcome the various stereotypes that exist.

First, you must know who you are, as you cannot let others dictate who you are. Yes, we all have issues to contend with, but knowing who you are and what you are capable of doing is half the battle. Next, you must know your passion and your niche. Last but not least, you must have confidence that you can get the job done.

Below are several tips:

• Dress for success. Depending on the industry, it is always best to stick to the traditional business colors. Care about how you look, as looking the part is half the battle and it will also help you get your foot in the door.


• Be a subject matter expert.


• Learn how to effectively communicate with people.


• Know your industry of choice and you must be able to articulate what you know as well, using the English language.


• Learn to listen and not feel as if you need to be heard all of the time. Listening is an art and it can take you a long way.


• Refrain from showing your emotions while making a decision or while you are talking to a colleague or a client.


• Do not carry a chip on your should, thinking that someone owes you something.


• Learn to read financial statements.


• Learn boardroom etiquette.


• Do not have an attitude or a negative attitude.


• Have professional business stationery.


• Do not cross your number out on business card and put your new number on an old business card. Presentation is everything and as a business owner, you must have some pride in what you give your clients.


• Be on time and call your client if you are running late.


• Come prepared to meetings.


• Ensure that you have a professional website. Business colleagues and customers should not be able to tell that you are a female/minority owned business.


• Make a decision.


• Learn to play golf.

Women of color are doing more now in the business world than ever before and the trend will continue to surge. Success is what you make it and it is doable for anyone no matter what race or gender you are.

You must first make your mind up that you are willing to do what it takes to be successful and “do-it”. Stereotypes will always exist. People are going to think what they want to, but it is up to you to prove them wrong. In order to do that, you cannot fall into the traditional minority/female stereotypes. Set yourself apart and prove them wrong. Intellect, business savvy, professionalism and a good attitude will take you a long way.

Remember, if you believe in yourself others will believe in you.