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Give Thanks and Keep the Bank!

Posted on November 24, 2011 by Khooppres Leave a comment

Today is a day when most of us will reflect on our blessings, spend time with our loved ones, and eat till our heart’s content. In addition to enjoying great food, family and friends, many of us will stand in line to take advantage of the numerous deals that will be available on Black Friday and Cyber Monday. According to a study performed by American Express, Americans will spend an average of $831 on gifts this holiday season with many spending $504 on Black Friday. While it’s nice to think of others and remember them through the act of gift giving, we should not create additional stress for ourselves by ‘giving away the bank’ during the holiday. After all, there’s life after Christmas day.

Before you join the masses in the ‘hustle and bustle’ tomorrow, consider the following money saving tips and gifts that can benefit the recipient beyond Christmas day:

Establish a Gift Giving Budget. Before you begin your shopping journey, decide how much you can afford to spend. I recommend that you not only establish a lump sum budget, but you should also create a list of all the people you plan to buy for and establish a budget for each person. If you do plan to begin shopping on Black Friday, take time today to create your detailed budget and review the numerous sales ads that will be included in today’s newspaper. In essence, develop your plan of action
Give Gifts that are Impactful. Take a moment and think about those on your list. What makes them tick? What causes are they most passionate about? I’ve often heard people say, “What do you buy for someone who has everything?” In lieu of buying something that they may not use, consider making a donation to their favorite charity. You might also want to consider their hobbies; a gift card to a store that supports a hobby (e.g., Hobby Lobby for a Scrapbooking, Bass Pro Shop for hunting and fishing, etc.) will definitely be appreciated and used by the recipient
Give the Gift of Exposure. Perhaps you have someone on your list that has never experienced being pampered, or maybe they’ve talked about taking dance lessons, but have never taken the time to do so. This holiday season; consider giving a gift of a new experience. This is especially important for children. Many times as parents we will buy toys and video games for our kids, but what if we used that money to pay for swimming lessons, basketball camp, or music lessons? Remember, we are significant contributors to our children’s value system. This Christmas, think about the camps or lessons that you wanted to enroll them in last year but didn’t have the money to do so; take a moment and set aside a portion of your Christmas budget to ensure that they’re able to participate this time around. A child may not remember what toys they received from year to year, but they will remember a gift of exposure

As we ‘break bread together’ and enjoy our families, don’t forget the reason for the season. Take a moment to pray for those that are less fortunate, and make a commitment to keep your Christmas spend within your means. Although my father-in-law is no longer with us, he had a saying that I will share with you today, “Love one another and take care of one another.” Happy Thanksgiving!

Choosing A Health Care Plan

Posted on November 8, 2011 by Khooppres Leave a comment

As we prepare for the season of Thanksgiving, this is also the time of year that many employers offer open enrollment of benefits for employees. A major expense that most of us have whether employed or self-employed is health care costs. Life is filled with unexpected events, and you simply can’t plan for them all, but please listen to me when I tell you that exorbitant medical costs can bankrupt you. I’ve heard many people say, “I can’t afford insurance.” I recently selected my benefits and was quite frustrated with the amount it costs to insure a family, but I also know the risk associated with choosing not to do so. If you are in the process of reviewing your health care plan, the following tips may help you through the process:

Identify anticipated medical expenses for the upcoming plan year. Are you planning to expand your family, or is there a medical procedure that you’ve been putting off that you can no longer delay? The answers to these questions are very important as you review your health care options.
Review your current year medical claims. Unless you had extenuating circumstances or a one-time medical procedure, your current year claims may be a good indicator of the coming year expenses. This should be a significant consideration as you compare health care plans.
Compare each plan’s deductible. How much can you afford to pay out of pocket? One of the worst things that you can do is carry medical insurance but be afraid to use it because you can’t afford the deductible. In order to obtain a deductible that you can afford, you may have to pay a bit more in premiums. Medical insurance premiums in most instances are a pre-tax deduction. This means it reduces the amount of taxes you’re required to pay. That being said, while you evaluate the costs before taxes, it’s also important to consider the after tax expense because this is really the best way to evaluate your out of pocket costs.
Review the list of in–network providers. If you’ve developed a rapport with your doctor, you will want to ensure that your physician is considered in-network for any plan you select. It can be difficult to find a doctor that you are comfortable with. Don’t underestimate the importance of this relationship. After all, it is your health we’re talking about.
Evaluate the Prescription Drug Plan. Are you or anyone in your family on any maintenance drugs? In other words, does anyone covered under your plan have prescription drugs that they are required to take on a regular basis? Your co-pay associated with your prescriptions should be factored into your decision when selecting your plan.

I hope this list of considerations will help you as you evaluate your options. In addition to selecting your health care plan, don’t forget to review your options for your Health Care Flex Spending Account. A Health Care Flex Spending Account allows you to set aside a portion of your income pre-tax for eligible medical expenses; this is a great way to help cover out of pocket medical expenses. One word of caution though – only set aside a dollar amount that you know you’ll use in your Health Care Flex Spending Account because if you don’t use it by the end of the plan year, you lose it. Next week, I will continue to discuss health care by taking a look at prescription drug plans for individuals that have Medicare benefits. Stay tuned, and make your week great!

Unemployed? You’re the Answer

Posted on June 9, 2011 by Khooppres Leave a comment

The May Jobs Report was very disappointing. The unemployment rate remained unchanged at 9.1%, but the most alarming bit of news related to the drop in the number of new jobs created. According to an article in USA Today, employers only added 54,000 jobs, which represents the smallest gain in eight months. Many economists predicted an addition of 175,000 jobs during the month of May.

For African-Americans, the bad news doesn’t stop there. During the month of May, the unemployment rate for African-Americans rose to 16.1%. While the unemployment rate for African-Americans has always been higher than the national rate, paired with the recession and the housing crisis, wealth creation is clearly not at the “top of minds”, survival is. Survival is nothing more than maintaining with less. If you’ve mastered survival, it’s now time to step up and out of your comfort zone to develop a strategy / plan to recover.

As you develop your strategy, consider the following questions:

1. Are you doing everything you can to position yourself to compete in today’s job market? In February, I developed the Aim to Win in This Economy series. Two of the posts within the three-part series focused on personal branding and education. When you’re unemployed, your “job” is to find a job. Don’t waste your time by exploring opportunities half-heartedly – make sure you are giving your all to the job search. If you’ve been beaten down by rejection after rejection, make a concerted effort to recover your swagger. While I’m not a fan of the saying, “fake it till you make it,” it is a necessity during your job search. Employers want to hire people who are confident in their abilities. If you can’t convey confidence during the interview process, you will not get the job. As you pursue opportunities, “clothe” yourself in the confidence that you are the best person for the job – have faith in you.

2. Is it Time to Broaden Your Horizon? In order to see the beauty of a rose-bush, the bush has to be pruned, and the flowers in the field need rain to grow. I will stop with my poetic moment, but my point is that we grow the most as a result of our failures and setbacks. If you have been beating the pavement, but coming up empty-handed, perhaps you should consider relocation – seek opportunities in other cities. This is definitely a move that will take you out of your comfort zone, but you’ll never know what may await you if you don’t try. The Huffington Post recently posted an article entitled The 10 Cities With The Most Job Postings: Indeed.com. Factual information posted on job search sites may assist you in targeting cities. However, keep in mind that the number of job postings does not always correlate with actual hires. While job postings are an indicator of a city’s economic health, sometimes companies post openings but defer fulfilling them due to market shake-ups (e.g., May’s Job Market Report). If you’ve considered exploring opportunities in another city, there’s no time like the present, but be realistic about your expectations.

3. Is There an Entrepreneur in You? The final entry in the Aim to Win in This Economy series was What’s Your Passion? If you are talented and have always dreamed of creating your own business, now is the time. Some of us are self-starters – if we aspire to do something, we simply do it. There are others that have to run out of the “comfortable” options (i.e., steady job, difficult boss, health scare, etc.) before taking a leap of faith to pursue the dream. While there aren’t many businesses that you can start without some money in hand, there are programs available to assist you with funding. Earlier this week, the Obama administration partnered with Rutgers Business School to host the first Urban Entrepreneurship Summit. The primary objective of the Summit was to explore ways to build new public-private partnerships to ignite urban job creation. Based on the speaker line-up for the conference, there was a clear emphasis on African-American entrepreneurship. In addition to initiatives like this, the Small Business Administration (SBA) recently rolled out two new programs that are designed to assist small business owners with capital needs. The Small Loan Advantage and the Community Advantage initiatives offer a streamlined application process for SBA(7) loans. Key benefits include loan amounts up to $250,000, shorter application process, and a 5 to 10 day approval process. As you can see, the federal government has a vested interest in your success as a small business owner. Do your homework and get to work.

Although the May Jobs Report may have fallen short of expectations, don’t allow historical data to predict your future. History does not have to repeat itself.

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