Listening to the radio, I heard an adertisement for feedthepig.org. I checked it out when I got home and found it to be a good source for information on the benefits of saving. Feed the Pig is an extension of 360financialliteracy.org, which aims to educate Americans about how financial issues affect their lives. Here you can find free tools and resources to manage your finances. I’ve talked about my financial experiences before and can honestly say it’s worth the effort.

I’ve found that putting your money in places where it takes time to get to it is the best thing for me. I use an online savings account at UFB Direct and it takes a couple of days for the money to get to my personal checking account if I need it. That way I have some time to think about my decision and won’t get caught up making a last minute purchase. If you’re not in to the online stuff, a savings account at a credit union works great also. That way you have quick access to the money, but it’s in an account you don’t access regularly. In choosing an online account, I visited bankrate.com to find the best rate (although they’ve dropped the past couple of months).

A budget has also been another thing that’s helped me save money. I try to review it every week and after you get started, it doesn’t take much time to do. Making the effort to keep it up has been the hardest thing for me. But when I get lazy I think about my family and remind myself it’s something that has to be done for our future. Sure you can’t predict what will happen in the future, but you can do your best to be prepared.

So go check out the sites and feed the pig. You’ll be glad you did.

This is one question that has always baffled me because I’ve heard so many different opinions on the best type of life insurance to purchase. I’ve seen in more than one instance what happens when you don’t have enough and it’s not a pretty picture. Funeral arrangements aren’t cheap and it’s a tough situation when the burden falls on a loved one left behind. Not only do they have to deal with the loss, they also have to find a way to get you buried.

I think a lot of people tend to overlook life insurance because they feel it’s either not important or too expensive. The reality is that it’s something we shouldn’t live without. A quality $250,000 20-year term policy for a healthy non-smoker can cost under $300 a year (a little under $6 week). If you have some health issues the price goes up, but that’s all the more reason to buy it.

I personally have a mix of term and universal variable life insurance. I’ve heard all the arguments for and against this, but for right now this is our current strategy. If I die, it’ll be enough to cover my arrangements, pay for the house and start my kid’s college fund. With my next son on the way, it’s something that I’ll have to revisit when he gets here (only 2 more weeks). Having these policies adds a little more comfort in knowing that they’ll be fine if I’m no longer here.

It’s a grim topic to discuss, but death is inevitable. So why not be prepared? Read “What Kind of Life Insurance Should I Buy?” along with the comments when you get a chance. There’s some good information there that will start you on the path to finding the best type of policy for you.

* Finally, so I won’t get sued. I am not offering financial advice. Find a professional in the industry to help answer your questions. This website and the Internet should only be used as informational sources to help you build the right questions to ask a pro. Do your research.

It looks like the checks will be in the mail around May. Congress passed a bipartisan bill that will send rebate checks to 130 million Americans in amounts of $300 to $600 for people who have an income between $3,000 and $75,000, plus $300 per child. Couples earning up to $150,000 would get $1,200. I’ve heard mixed stories about this”growth stimulus” package and wanted to everyone to be aware of what it is (or isn’t) before you get too excited.

I’ve seen some articles that say the tax rebate is really an advance on next year’s taxes. This means you could potentially owe on your taxes next year if you don’t plan right. I’ve also seen articles that state the rebate is free money from the government to stimulate the economy. Whatever it is, spend it wisely and keep your ears open for additional information until they are actually sent out. I’ve learned that nothing in life is free and everything has a cost associated with it. We’ll see whether this will work as a short term solution.

Whether it works or not, I’m sure we’ll hear all is well. Bush is out in a couple of months, so why should it matter to him? It’ll be the next president’s problem. I never understood how you can balance the budget, lower taxes, spread democracy across the world and increase spending at the same time? Something has to give and the burden will fall on the have-not’s of the world.

All I have to say is, it’s about time. This economy has been in turmoil for at least a year and they are finally getting around to doing something about it. Congress is making plans to create an economic stimulus package that would give checks of $600 per individual and $1,200 per couple who paid income tax and who filed jointly. If you did not pay taxes but had earned income of more than $3,000 would get checks of $300 per individual or $600 per couple. The checks would go to those who earned up to $75,000 individually or up to $150,000 as a couple.

This deal is still in the making because both parties have stipulations they want added to the package to make it seem like they’re the one who helped America in its time of need. I hope they get their act together and put together a package that Bush will sign. And I hope he is willing to compromise on some of the things in it so people can get some much needed help from their government.

The ten million dollar question is what would you do with some extra cash from the government? The idea is to get it into the hands of the lower and middle class because they know it will be spent as soon as it gets there. There are a lot of people in need who could really use the money. Energy prices are up and the price of gas is making everything else go up. Jobs aren’t paying as much as they used to and the dollar doesn’t buy as much as it used to. But I hope America is paying attention to what is happening. The housing crisis can’t be fully blamed on predatory lending. High credit card debt isn’t an issue the government should be concerned about. Some of this blame needs to go to the consumer. We overspent, we over-endulged and our eyes in some cases were bigger than our pocket book.

So whatever happens, I hope you are making ‘08 the year to get out of debt. It’s a nice thing and you don’t have to be rich to do it. It takes some work and delayed gratification, but in the end it’s worth it. So spend yo money wisely!

“People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction.” I Timothy 6:9, NIV

Harvard University has recently revamped it’s financial aid program to ensure families with incomes below $60,000 are not asked to contribute to the cost of sending their children to Harvard. I blogged last year about Texas Tech having a similar program and wanted to spread the word about this program.

Now don’t get me wrong, there are a lot of great colleges out there and I do believe HBCU’s also offer a quality education. I just feel this is another opportunity for a struggling student to get a degree without having to go into debt. College can be expensive and it doesn’t always guarantee you a job after you graduate. But a quality education can benefit you in ways you’d never imagine.

At any rate, if you or someone you know falls within the income range and has the scores to get accepted, please pass this on. My momma always told me, the worst they can do is say ‘no’.

Harvard announces sweeping middle-income initiative

Just a quick reminder to check your credit report before the end of the year. I know it’s last minute, but if you haven’t done so, get to it. Every year the government gives you a free credit report check so you can make sure there are no fraudulent inquiries on your record.

I do it every year for my family because identity theft can make your life miserable. When you run the check, you can get your report from the top three credit agencies: Equifax, TransUnion and Experian. While the credit report is free, you do not get access to your Fico score. To check your fico score, it costs $7.95, which in my opinion is well worth the cost. If you do see something on your report that doesn’t belong, you can report it to the credit agencies and follow the process to get it removed.

You can get your 30-day free credit report by visiting annualcreditreport.com or call 1-877-322-8228.

I was watching the Today Show and they mentioned that half of this years donations to charities will be given from now until the end of the year. This is the time of year when people open their hearts the most to help others in need. There are a lot of ways to give money and time, but you need to make sure your efforts are not in vain.

I’ve listed three sites below that I’ve found to be helpful in researching the organizations that accept donations. This way you’ll know for sure that your money is going where it is needed. And if you are not able to give money, the sites below are a great way to find places where you can volunteer. If you know of an organization that’s not listed on the site and is doing good in the community, feel free to leave the contact information in the comment area.

guidestar.org

charitynavigator.org

give.org

It took a while, but I’m happy to say I’m almost done paying off my credit cards. In our world of gathering stuff we don’t need it wasn’t easy and it took discipline and sacrifice from the whole family. I’ve made the attempt before, but it seems something would always come up and I had to once again rely on the one thing I was trying to get rid of. After a couple of tries, I got smart and started saving while paying the minimums on each card. I stopped carrying the ones I was trying to pay off and only charged what I knew I could pay off in the same month it was charged. After I reached my goal for an emergency savings amount I built a budget and set a fixed amount that would be spread out amongst all the card payments. The higher interest cards got paid off first and the others got the minimum. After one was paid off the next highest interest rate would get the same payment as the one paid off plus the minimum. I kept that up until I got to the very last card. It feels good to look at the statements and see zeroes for the balances.

We have to take our credit history and finances more seriously. A good credit score can help you save a lot of money and it affects other parts of your life that you may not consider. I’ve worked hard to improve mine and I can see the results and rewards in doing so. The most important thing you need to do is build a budget. It wasn’t until I started budgeting that I figured out my plan to payoff my debt. I started out using a spreadsheet with categories, then I moved up to using Quicken Home & Business. It made life a lot easier and I was able to track where my money was going a lot easier. Businesses do this all the time. If your outflows exceed your inflows, then you’re borke. It’s as easy as that.

I ran across a website that had an article about “6 Great Free Alternatives to Quicken & MS Money“. While I’ve never tried any of these products, I did want to take away all your excuses for not build a budget. If time is your problem, then do it while you watch a game or your favorite TV program. It’s important to know where your money is going and it keeps you from living beyond your means. I also want to get you to check out an article on “Five Steps for Ditching Credit Card Debt“. It’s informative and has some really good information.

Venessa at vanessabyers.net posted a good article for college students titled “Money Saving Tips for College” by By Lisa Rogers-Cherry. This is something that I can relate to because I fell into some of those campus credit card traps when I was in school. Financial literacy is an important part of life and your mistakes early on can hurt you in the future. Especially when it comes to the African-American community, we tend to make light of the fact that our credit is bad. We shrug it off, but in reality it means we pay so much more money for the things than those with good credit.

I was watching an episode of Black Enterprises Business Report and they were talking about how African-Americans are more likely to recieve the subprime home loans than any other race. Most of the loans were based on the fact that our credit score was lower or we didn’t have as much for the down payment. Because of lower credit scores, we pay more for anything that needs to be financed. We get tricked into thinking that the companies offering “No Money Down” and “Credit Issues Not A Problem” are looking to help us out. All they want is the money from our higher interest rate!

I guess I’ll get off my soapbox, but check out the article because it has some great advice to keep students out of financial trouble. You don’t have to be a tightwad, but you can make wiser decisions when it comes to your finances. If you are a college student run the other way when they offer you the free t-shirt for signing up for a credit card. Take the steps now to learn how to manage your money now before you get out in the “real world”.

by Cameron W.

Some people might say that business the black way is not business at all but more of a black hole that sucks all the resources of the Black man into the obis. Sadly, in many ways those people are correct. Black Americans spend a higher percentage of their income on depreciable items than any other ethnic group. What that means in laymen’s terms is that homie over there would rather spend his hard earned McDonalds pay check on gold teeth than to invest that money in a savings or money market account. The Ariel Mutual Funds/Charles Schwab 2003 Black Investor Survey found that when comparing households where blacks and whites had approximately the same household incomes, whites saved approximately 20% more per month for retirement. It also found that 30% of Black Americans earning $100,000 a year had less than $5,000 in retirement savings. While 79% of whites invest in the stock market, only 61% of Blacks do. Furthermore the Black community is still grossly underrepresented in the business community. According to the U.S Department of Commerce out of all businesses in the United States 4% are owned by Blacks. Out of minority owned businesses 27.1% are owned by Blacks with the lion’s share of businesses going to Hispanic/Latinos at 39% followed by Asians at 30%.
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