BV on Money http://www.bvonmoney.com BV on Money http://www.bvonmoney.com/media/feedlogo.gif BV on Money http://www.bvonmoney.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/Jay Z vs. Beanie Sigal: It's Nothing but Business as Usualhttp://www.bvonmoney.com/2009/11/07/jay-z-beanie-sigal-charlamagne-tha-god/http://www.bvonmoney.com/2009/11/07/jay-z-beanie-sigal-charlamagne-tha-god/http://www.bvonmoney.com/2009/11/07/jay-z-beanie-sigal-charlamagne-tha-god/#commentsFiled under: ,

Consider it a strange dream, but I had some thoughts about the Jay-Z beef with the rapper Beanie Sigal. No, I'm not here to talk about keeping street cred. Yeah, yeah, yeah. Half of the artists in the hip hop industry are not nearly as hard or as real as they claim to be. They're too smart for that. The guys who are really as hard as most rappers claim to be are either in a jail cell or a casket. That's the truth.

What got my attention was when Charlamagne Tha God was fired from 100.3, "The Beat" in Philadelphia. I've known Charlamagne for years from our work on The Wendy Williams Show, so this made me a little upset. What was even sadder is the allegation that Jay Z may have played a role in getting Charlamagne fired, in large part because Charlamagne conducted an interview with Jay-Z's new rival, Beanie Sigal. This incident represents more than the standard thuggery that some might see on the surface. Instead, it brings forth a plethora of issues that relate to business, entertainment, money and corporate power. Here are some quick thoughts:

1) Getting Charlamagne tha God Fired? An allegedly weak move, but a lesson on corporate influence. The smartest artist I've ever seen in hip hop is 50 Cent. He writes songs about going to the club, but he doesn't go to clubs. He gets you to bob your head and pop bottles of Vodka and Petrone, but he doesn't drink himself. Effectively, he knows the power of getting others addicted, while keeping himself from being vulnerable to the very addictions he is using to control you (remember Ice Cube's famous line, "Don't get high on your own supply"?). Jay-Z is similar, as he has rejected the ridiculous, "bling yourself to death and then get shot or go to jail" mindset that many rappers seem to possess. Instead, he preoccupies himself with being a businessman, which means he has ultimate control over his fate.

So, in spite of the fact that I am irritated at the very weak and unethical move allegedly committed by Jay Z, the teachable moment here is that the corporate monsters are the ones who control hip hop or any other art form for that matter. Most rappers only work to get a place on the plantation, not to actually own one.

2) The Jay Z beef with Beanie Sigal has been played out thousands of times throughout human history. Ever since the beginning of entertainment, there has always been a natural beef between the sources of capital and the entertainers themselves. Artists are natural risk takers and many of them don't spend two seconds thinking about the business models that finance their activities. Many artists put their energy into their craft rather than engaging in the boring task of understanding accounting, finance, marketing and distribution. The corporate captains, on the other hand, are not natural risk takers and they are the ones who decide if the show is going to even take place. Given that the corporate chiefs are making the financial choices, and the artists themselves want to push their work out at any cost, there is typically going to be a conflict of interest. The truth, however, is that when these conflicts occur, the artist almost always loses the fight. Those who provide the capital control much of the process.

3) You've got to take good care of the people who work for you. Some have criticized Jigga and Diddy for not taking good care of their artists. I am not sure if this is true or not, but I do know that if you are tempted by corporate greed, you can find yourself enslaving people rather than empowering them. The greatest temptation in hip hop is to take advantage of another person's obsessive commitment to fulfilling their personal dream. Thousands of artists get signed to Draconian contracts that are skewed heavily in favor of the manager rather than the artist. The problem, however, is that when you design business models to exploit other people, you may find that it comes back to hurt you later on down the road.

4) There is a financial value of manufactured beef. This might surprise you, but a lot of so-called "beefs" in hip hop are actually branding mechanisms designed to get media attention to sell records. Ever notice how there are a lot of artists who want to stab and shoot each other one minute and then end up making records together the next? Much of this is due to the fact that the lifeblood of any artist is media access. No media means you don't eat. Given that artists are effectively hired slaves for the record labels who can be used up and dropped at any moment, they are willing to engage in any desperate ploy imaginable to get the cameras pointed in their direction.

Want to sell some albums? Go out and get arrested. Want to build your brand for "keeping it real"? Get caught in the club with a gun on your hip. Want to keep your job at the record label? Start a beef with a popular artist and get him to respond to you. As hyper-masculine as most hip hop artists pretend to be, the reality is that they are scared little boys on the inside; absolutely petrified that their label is going to find another talented brother from the projects and give him the spotlight they've bet their life on. This is not always such a great place to be, which is why any athlete or entertainer needs to get educated.

Hip hop is an enlightened and exciting industry. At the same time, it's the same corporate machine controlling people of color and distracting us from true power by keeping us engaged solely in the act of entertainment. As much as I might criticize Jay Z for allegedly going after my friend Charlamagne tha God, the truth is that Jigga seems to be the only one who gets it. Hip hop is not about entertainment, it's strictly business.

If you want to hear an artist's perspective on all of this, I spoke with the Kansas City rapper, Vigalantee about the beef between Jay Z and Beanie Sigal. Click below to hear the conversation:





Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, "Black American Money." To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>charlamagne tha god firedCharlamagneThaGodFiredhip hop beefHipHopBeefjay z beanie sigal beefJayZBeanieSigalBeefBoyce Watkins, PhD2009-11-07T20:18:00+00:00Is Health Care Reform Going to Cost you More or Less Money?http://www.bvonmoney.com/2009/11/06/black-doctors-health-care-110609/http://www.bvonmoney.com/2009/11/06/black-doctors-health-care-110609/http://www.bvonmoney.com/2009/11/06/black-doctors-health-care-110609/#commentsFiled under: ,


All of us are confused about health care reform. Many of us support the idea because we support the president. Some of us support health care reform because we know that the current system is terribly flawed. Well, getting informed on the issues might be a great way to ensure that you know what you are backing.

One of the great problems with health care reform is that most Americans can't trust it in the first place, given that there are so many special interest groups who've hooked their fangs into a corrupt and dysfunctional system. Pharmaceutical companies charge incredibly high prices for drugs and work with lawmakers to keep consumers from having other alternatives. Every day, there is a senior citizen moving one inch closer to death because he/she can't afford their medication. Most of us know that this system has to be altered.

Dr. Elaina George is a prominent Otolaryngologist at the Peach Tree ENT Center in Atlanta Georgia. In the audio below, Dr. George breaks down the health care reform package that is being debated in Congress this week. So, while the news might be muted by the mass shootings that have recently occurred, we should not allow this distraction to keep us from the issues that are going to affect our lives.

Click here to listen to Dr. George.


Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, "Black American Money." To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>african american doctorsAfricanAmericanDoctorsblack doctorsblack healthBlackDoctorsBlackHealthdr elaina georgeDrElainaGeorgeBoyce Watkins, PhD2009-11-06T19:05:00+00:00Fighter Pat Barry Wins Big Purse Right Before Being Homelesshttp://www.bvonmoney.com/2009/11/05/boxers-going-broke/http://www.bvonmoney.com/2009/11/05/boxers-going-broke/http://www.bvonmoney.com/2009/11/05/boxers-going-broke/#commentsFiled under: , ,

UFC fighter Pat Barry was thanking his lucky stars for his big win against Antoni Hardonk. The fighter won a $120,000 purse for his accomplishment, which was right on time given that he was literally six days away from being evicted from his apartment. Barry's win was emotional for obvious reasons and nearly everyone in his camp was in shock to hear about his financial situation. What is saddest is that his challenges are not uncommon among fighters in general.

Although Pat Barry hasn't had the chance to earn millions, many major fighters end up going broke even after their gravy trains have stopped flowing. The outcomes don't make any sense, given that a bit of financial discipline could have made all the difference in the world. When you earn as much as $10 - $20 million dollars in a payday, you can live a pretty wild financial life and still have money to save. Instead, some athletes seem to want to push the limits and it's actually uncommon to hear of any boxer who DOESN'T end up in the poor house.

Here are a list of financial demons that plague fighters when they finally hit the big time:

1) The bling: For some reason, athletes and entertainers are expected to live an incredibly extravagant lifestyle. Mike Tyson employed over 200 people and spent millions on items too ridiculous to mention. What's worse is that Mike Tyson actually owed as much as $38 million dollars at one point. Evander Holyfield's $10 million dollar, 54,000 square foot mansion was put on the auction block last year after foreclosure. Many athletes go into debt because they are banking on their next payday to get them out of the new financial holes they keep digging for themselves.

2) Bad relationships: Divorce is a great way to go broke. Before Muhammad Ali married his third wife, Lonnie, his previous wife divorced him and took his last $2 million dollars right before Muhammad's career ended with Parkinson's disease. It was at that point when he found himself broke and unable to earn additional income. Fortunately, a good woman came into his life and used her MBA from UCLA to liquidate the massive financial value from his brand name. So, as much as black male athletes can be ruined by women, they can also be saved by them. However, a long string of baby's mamas, bad marriages, draining relatives and expensive arm candy can cost an athlete dearly.

3) The IRS: The IRS is sneaky and has led to the financial demise of many celebs. Even honest, hard working Americans can fall prey to the demon of back taxes. Joe Louis was one great example of a man who made a great deal of money, but found out years later that he owed tax money to the IRS. For the rest of his career, he would wander from one fight to another, with IRS agents waiting in the back room to take the entire purse after the fight. While his career was a great one, he was not a happy man in old age.

4) A lack of education: A lack of money management ability and inadequate financial literacy plagues many wealthy entertainers and athletes. Growing up in poverty doesn't exactly endow you with an extensive understanding of trust funds, estate planning, stocks and bonds. One of the great tragedies for NFL and NBA athletes is that many of them attend universities that simply hand the athlete a degree without forcing the athlete to get an education. But there is an old saying that "a fool and his money will soon part ways." Even if you are incredibly wealthy, you have simply made yourself into a sucker for those who are smart enough to take that money from you.

5) The leaches: The easiest way to get a pack of new friends is to have a lot of money. In addition to the friends who suddenly find you to be a fascinating human being, you've got managers, lawyers, agents, homeboys and baby's mamas who want their cut. It is not uncommon for a celebrity to have to give away as much as $700,000 out of every million dollars he/she earns. Everybody wants a piece of your pie until you are down and out; at that point, you become yesterday's news.

I don't think that any athlete should live like a miser, that's no fun. Instead, why not simply save 20% of your income and party with the rest? That would give you a nest egg for retirement and allow you to pay the bills after you've fought your last fight. What's saddest is that every boxer says they are going to retire young and none of them ever do. It's time to stop living the same story over and over again.

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, "Black American Money." To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>african american athletesafrican american wealthAfricanAmericanAthletesAfricanAmericanWealthblack athletesblack wealthBlackAthletesBlackWealthjoe louisJoeLouisBoyce Watkins, PhD2009-11-05T17:54:00+00:00Oprah Moving Talk Show to Her OWN Cable Network in 2011?http://www.bvonmoney.com/2009/11/05/oprah-moving-talk-show-OWN-2011/http://www.bvonmoney.com/2009/11/05/oprah-moving-talk-show-OWN-2011/http://www.bvonmoney.com/2009/11/05/oprah-moving-talk-show-OWN-2011/#commentsFiled under: ,

Oprah Winfrey is expected to soon announce that she will be moving her show exclusively to her OWN cable network in 2011. A joint deal between Oprah and the Discovery Channel, the Oprah Winfrey Network is poised to launch in 70 million homes that same year. Her popular show will likely move to OWN on the heels of the network launch, as reported by The New York Daily News.

Oprah will be giving up the lucrative licensing and distribution deals her show now has with stations that syndicate her show internationally. In addition, Winfrey will move her staff and studios from her home base of Chicago to the future LA offices of OWN -- which will likely lead to layoffs. This business decision has already cost the Discovery Channel millions of dollars as the cable giant has been forced to shuffle staff and resources in anticipation of the change. Both sides in this deal are gambling that these sacrifices will be worth it in the end. But what about Ms. Winfrey's relationship with the public? Nikki Finke of the Deadline Hollywood blog writes:

But there's also no question that Oprah is a much more controversial figure now than she's ever been before because of her wealth and fame and politics. "She's lost her authenticity. Like when she said, 'It's good to have your own private jet.' Or when she shut down the City of Chicago with this season's 'flash mob' for the opening show. Where's the relatability?" The word internally at ABC is that TV stations have been cringing at Oprah's past and present and continuing support for Barack Obama, from her appearance at his inauguration (see photo) to her visits to the White House, because it antagonizes half the viewing public who don't share her politics. Now Oprah will no longer be in their faces: instead she'll be isolated on cable. The biggest question now in the TV industry is whether it's "Good Luck!" or "Good Riddance!"

On the business side, some question whether it is really a good move for Oprah to take her show, which is now seen in 140 countries, to a relatively minor cable channel. But this actually seems like a desirable next step for Oprah, who is already a media queen. She is now extending her queendom to include a more concrete stake of the market. As a personality, she has tremendous mindshare. With her OWN cable network, she will make her personal identity into a tangible company. And if the general public is growing disenchanted with her, the time is definitely right for her to rely less on her personal magnetism and more on her business acumen.

 

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]]>Breakingbreaking newsBreakingNewsdiscovery channelDiscoveryChanneloprahoprah winfreyOprah Winfrey ShowOprahWinfreyOprahWinfreyShowownAlexis Stodghill2009-11-05T15:42:00+00:00Goldman Sachs, Citigroup Get H1N1 Vaccine Before Needy Hospitals?http://www.bvonmoney.com/2009/11/05/goldman-sachs-citigroup-gets-h1n1-vaccine-before-hospitals/http://www.bvonmoney.com/2009/11/05/goldman-sachs-citigroup-gets-h1n1-vaccine-before-hospitals/http://www.bvonmoney.com/2009/11/05/goldman-sachs-citigroup-gets-h1n1-vaccine-before-hospitals/#commentsFiled under:

BusinessWeek has broken the story that large employers like Goldman Sachs and Citigroup are among the first on the list to receive the H1N1 vaccine. Clusterstock, the business blog, has added the nuance that not only has Goldman Sachs received the same number of vaccinations as Lennox Hill hospital in New York City -- the finance giant got its hands on the doses before many hospitals.

Goldman Sachs' PR reps want to make it clear to the public that the CDC distributes vaccines to many types of large employers, such as Time Warner and New York University. The idea is to get the vaccine to people at many points of potential infection, giving the H1N1 vaccine to those who come into contact regularly with high risk groups within large companies. Goldman Sachs has received 200 H1N1 vaccines, Citigroup 1,200.

This "guest list" treatment makes sense for some early recipients of the H1N1 vaccine. Hospital workers at Memorial Sloan-Kettering and the New York Presbyterian Healthcare System clearly need early protection -- and got some of the first doses along with Goldman.

But Goldman Sachs? Citigroup? When you look at the list of people the CDC mandates must receive an H1N1 vaccination first at these employers, the reasoning for their special treatment seems sketchy:

Health-care workers at those employers are bound by the CDC to distribute the vaccine only to populations deemed to be at high risk of developing serious complications from swine flu: pregnant women, children and young people aged 6 months to 24 years, people who live with or provide care for infants under 6 months (who cannot be vaccinated), people aged 24 to 64 with medical conditions that put them at higher risk for flu-related complications, and health-care workers and emergency medical personnel. A spokeswoman for Goldman, who asked not to be named, said the company had just received the vaccine and did not yet have information as to how it would be distributed, saying that Goldman will supply vaccine only to those who qualify as high-risk, per the CDC requirements. Citigroup had not responded with a comment as of the evening of Nov. 2. (BusinessWeek)

It is hard to imagine that a ton of "pregnant women, children and young people aged 6 months to 24 years [or] people who live with or provide care for infants under 6 months (who cannot be vaccinated)" work at Goldman Sachs or Citigroup. In addition, it has been confirmed by the New York City health office that Goldman Sachs received the vaccines ahead of many hospitals -- where the employees sorely need it -- because the banking behemoth asked for it.

It's unclear who is more suspect in this situation -- the City of New York for giving these banks the vaccine, or the banks for asking for it before all those truly at high risk have been inoculated.

On the heels of news that Wall Street bonuses are up 40% in 2009, one imagines that Goldman Sachs could afford to pay for their own creation and distribution of H1N1 vaccines rather than taxing public resources. They are taking the H1N1 vaccine from the facilities that are crucial to averting what has been declared a national state of emergency.

By getting first in line for H1N1 vaccinations when the vaccines have been declared scarce, Goldman yet again paints itself as the perfect picture of corporate greed. Wasn't the billion dollar bail out, of which Goldman Sachs was a prime beneficiary, enough? Do they need to take vital medicine from frailest members of the general public, too?

 

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]]>Alexis Stodghill2009-11-05T12:31:00+00:00Costco Accepts Food Stamps: Trend at Wholesale Clubs, Grocery Storeshttp://www.bvonmoney.com/2009/11/04/costco-food-stamps-ebt-wic/http://www.bvonmoney.com/2009/11/04/costco-food-stamps-ebt-wic/http://www.bvonmoney.com/2009/11/04/costco-food-stamps-ebt-wic/#commentsFiled under: , , , ,


Leading wholesale retailer Costco has announced that it will now accept food stamps in its stores nationwide. This news comes as a shock to many, who see Costco as catering to elite shoppers. Yet, this should not be surprising as more Americans than ever are using government assistance to feed their families -- 10 million people have gone on food stamps in the last two years alone. This is leaving shopping clubs like Costco and Sam's scrambling to attract an entirely new realm of consumer, who may not be technically "poor."

The New York Times explains:

Up until recently, some wholesale clubs were skeptical poor people would be willing to pay the $50-a-year membership fee or would be interested in buying food in the bulk quantities for which the stores are famous.

But now, in this economy, stores are battling for every dollar and see a big potential market in the growing ranks of food-stamp recipients. From warehouse clubs to supermarkets and mom-and-pop groceries, stores are retraining their cashiers and hanging new signs to welcome such customers.

''Certainly this economy was a wake-up call,'' Costco chief financial officer Richard Galanti recently told investors. ''It is not just very low-end economic strata that are using these.''

... The U.S. Department of Agriculture said nearly 200,000 retailers nationwide now accept food stamps, 20 percent more than in 2005.

Executives at Costco are finding that poorer families are actually eager to pay the $50 dollar membership fee to take advantage of the fact that the company now accepts food stamps. And the retailer believes that poorer families will actually save more money in the end by buying in bulk, even if the initial investment seems high.

If you need to join the ranks of the 39 million Americans on food stamps (also known as Electronic Benefits Transfers), there is no reason to be ashamed. In fact, now is a better time than ever to seek out government assistance in buying food if you need it. The social stigma attached to food stamps is essentially gone as so many people are in need, and now more companies than ever are rising to meet the needs of this customer. You might be surprised to learn that you qualify.

Learn how to apply for food stamps, or about the WIC program, and click below to learn about some of the thousands of retailers that accept EBT. Check your local retailers for more shopping options.

Major Retailers That Accept Food Stamps

Target

The Kroger Company

Walmart

Safeway

Sam's Club

BJ's

Most 7-Eleven Stores

Most CVS Stores

Dollar General

 

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]]>Alexis Stodghill2009-11-04T15:57:00+00:00Black Business & Personal Finance Links: Marley to Michelle Obama http://www.bvonmoney.com/2009/11/04/debt-relief-management-settlement/http://www.bvonmoney.com/2009/11/04/debt-relief-management-settlement/http://www.bvonmoney.com/2009/11/04/debt-relief-management-settlement/#commentsFiled under: , ,

»Marley Heirs Wage Global War on Trademark Pirates
Heirs of the Jamaican reggae legend are plunging into the global trademark wars, seeking to enforce their exclusive rights to an image that has grown steadily in scope and appeal since the Jamaican superstar died of brain cancer in 1981 at age 36. [AP]

»Debt Settlement and Debt Relief
The Money Coach does not recommend using debt settlement companies for debt relief. Debt counseling companies typically advise you to stop paying your bills for a few months. The problem with this is that you do some serious damage to your credit rating. And there's no guarantee that it will provide debt relief. [The Money Coach]

»Casino Denies Man Jackpot!
Imagine you go to a casino, play the slots, and pull the lever for a jackpot of $166,666,666.65. You'd think it was the luckiest day of your life. Before you know it though, the Casino is telling you that you haven't won anything and the machine glitched. [Post Chronicle]


»7 Job Hunting Techniques Sure to Turn Off a Hiring Manager
We all know the importance of making a good impression when submitting a resume, writing a cover letter, or during a job interview. We read volumes of books and articles on the subject of making a good impression; but are there techniques that will turn off a hiring manager? [The Network Journal]

»First Lady Launches White House Mentoring Program
First lady Michelle Obama launched a mentoring program Monday to give local high school girls access to women at the White House. [Black Voices]

»Black Woman is the Highest Paid College President
A record 23 presidents received more than $1 million in total compensation in fiscal 2008, according to an analysis of the most recently available data published Monday by the Chronicle of Higher Education. A record one in four in the study of 419 colleges' mandatory IRS filings made at least $500,000. Topping the list is Shirley Ann Jackson at Rensselaer Polytechnic Institute in Troy, N.Y., whose total compensation the Chronicle pegged at nearly $1.6 million. [The Grio]

»Don't underestimate the impact of a business plan
Writing out a business plan can help you see every little detail of the many elements that go into the making of a business. [Gladys Edmunds - USA Today]

»What To Do In Your 30's
Never overwhelming, Women & Co. has got you covered on the financial steps you should be taking in every era of your life. Here are a few tips for 30-something women. [A Woman's Worth]

 

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]]>Ann JacksonAnnJacksonbob marleyBobMarleybusiness planBusinessPlandebt settlementDebtSettlementgovernment grantsGovernmentGrantsjob huntingJobHuntingmichelle obamaMichelleObamaAlexis Stodghill2009-11-04T13:30:00+00:00Secretary Causes Pepsico to lose $1.2 Billion Dollar Lawsuithttp://www.bvonmoney.com/2009/11/03/pepsico-loses-billions-secretary/http://www.bvonmoney.com/2009/11/03/pepsico-loses-billions-secretary/http://www.bvonmoney.com/2009/11/03/pepsico-loses-billions-secretary/#commentsFiled under: ,


It's not easy to work for me: I can be demanding, overly focused and intense about everything I do. I believe that reaching extraordinary goals requires you to always put forth extraordinary effort. Many interns have come and gone, after realizing that they can't keep up with our crazy pace. The ones who make it through the storm become invaluable parts of my family; like body parts or internal organs. I truly can't live without them.

That is why I cringed when I saw the recent story about how Pepsico lost a $1.26 Billion dollar judgment because the secretary forgot to pass the paperwork onto the appropriate people. As a result, the company lost the lawsuit on a default judgment for failing to appear in court.

Apparently, it was a simple oversight that could have happened to anyone. But I am sure that the secretary is in hot water and probably even fired. Cases like this are reminders of some important principles you should remember when you are in business for yourself or working for another person.

1) Trust is everything. For me, trust starts on the first day of the job interview. If someone arrives late, that means that I can't even trust them to get to meetings on time. If I can't trust you to get to meetings on time, then there is no way on earth that I am going to trust you with a valuable contract. Consistency builds trust. You must always find a way to be consistent when working with or working for other people.

2) You are only as good as the people who represent you. This statement implies two things: That you should get good people around you and that you should respect those who work for you. Hiring lazy relatives or friends who aren't disciplined enough to do the job is a recipe for disaster. I have plenty of friends with whom I have good relationships, but I would never do business with them because I know that some of them are unreliable. Those who I choose to be part of my team are not reminded that I am the "big boss." Instead, I let them know that I am in charge, while showing appreciation for their efforts every chance I get. Being respectful of others is how you truly earn respect without having to step on people in order to maintain power. If you rule with an iron fist, your subordinates will eventually plot to destroy you.

3) Excuses need not apply. There are two types of people in this world: those who deliver excuses and those who deliver results. All of us run into obstacles, but the most effective people are the ones who find a way around those obstacles to get the job done. Those who regularly deliver a basket of excuses to somehow exclude them from their assignment are going to be replaced by someone who simply gets the job done. The truth is that in the world of business, even if you have a good excuse, the client is going to still take their business away from you. That's just the truth.

4) Learn to forgive. My most trusted partners and subordinates have made horrible mistakes and cost me money in the process. While my first temptation was to raise the fire of hell, I realized early on that this was not the best long-term solution. Instead, I simply ate the loss and assertively pursued a joint remedy for the problem at hand. Having power doesn't mean that brute force tactics are always the best strategy. You might lose someone valuable if you don't know when to show compassion. A good employee already feels bad enough about their mistake; you don't have to rub it in further.

I am not sure how Pepsico is handling the situation with the secretary, since some excuses are simply unforgivable. But while we can all understand being outraged by losing a billion dollars, we should also know not to sweat the small stuff.

Dr. Boyce Watkins is a Finance Professor at Syracuse University and a leading African American keynote speaker. To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>african american moneyAfricanAmericanMoneyblack moneyblack wealthBlackMoneyBlackWealthlawsuitpepsico secretaryPepsicoSecretaryBoyce Watkins, PhD2009-11-03T15:41:00+00:00Walmart Finalizes Settlement: To Pay $85 million to Hourly Workers http://www.bvonmoney.com/2009/11/03/walmart-workers-wage-suit/http://www.bvonmoney.com/2009/11/03/walmart-workers-wage-suit/http://www.bvonmoney.com/2009/11/03/walmart-workers-wage-suit/#commentsFiled under:

Score one for the little guy against the massive corporation. Bloomberg.com reports that Walmart has finally received approval for a settlement deal that will bring peace between the mega-retailer and hourly employees who have been cheated out of wages. More on the Walmart workers' wage suit settlement:

U.S. District Judge Philip M. Pro in Las Vegas approved the settlement yesterday and awarded one-third of the recovery in fees to the workers' lawyers, up to about $28 million depending on the claims made. Walmart is to pay at least $65 million and as much as $85 million.

The workers claimed that Bentonville, Arkansas-based Walmart violated wage-and-hour laws by denying them rest breaks and manipulating time cards to reduce their pay. The accord is part of a global $640 million resolution of wage-and-hour claims reached in December between Walmart and workers.

"We're going to seem some real money distributed to people," said workers' attorney Carolyn Beasley Burton. "Hundreds of thousands of people will get a check in the next few months of $150 to $1,000. It's a nice little stimulus package." (Bloomberg)

This class-action suit involving three million employees accross many states, over many years, is coming to a satisfying resolution. Following on the heels of Michael Moore's film 'Capitalism: A Love Story,' which chronicles the growing exploitation of workers, this approval of the workers' wage suit settlement really warms the heart. Maybe, in fact, the average American worker still has the power to demand fair treatment from selfish corporate entities.

 

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]]>law suitsettlementWal-MartwalmartAlexis Stodghill2009-11-03T15:25:00+00:00Layaway Plans - 2009http://www.bvonmoney.com/2009/11/02/layaway-plans-2009/http://www.bvonmoney.com/2009/11/02/layaway-plans-2009/http://www.bvonmoney.com/2009/11/02/layaway-plans-2009/#commentsFiled under: ,

It's that time again when the stores will be crowded with thousands of consumers all vying for the same toy, special sweater, hottest electronic device. How do you plan to purchase it?

The current crumbling economy has sparked interest in a form of retail purchasing that became popular in the early 1900s, that of Lay Away. How does it work? It's simple. You, the consumer would like to buy something but don't have the money. All you do is make installment payments on the merchandise. The merchant stocks your item away until your last payment. You receive it once your tab is paid in full. Of course this is different than a credit card purchase which allows you to take home your intended product and make payments while using it.Although stores like Walmart did away with this form of procurement years ago, Kmart stayed in the game. Stores currently offering layaway plans are:


Plan on taking advantage of this service? Be sure to READ THE FINE PRINT.

1. Get a copy of the store's layaway policies
2. Understand ALL of the policies - schedule of payments, rules regarding late fees, refund and exchange policies, markdowns on sale items, etc.
3. Keep a good record and all receipts of payments (in case there are any disputes later).

Until you make all the payments, the store has your merchandise AND your money. For this reason, I prefer to use cash, debit or credit cards OVER layaway, any day. Assuming I can pay off the balance in a short period of time. It's true, credit card companies charge interest, therefore depending on the length of time it takes you to pay off the debt and the interest charged, your purchase which was originally on sale could potentially cost you much more in the end. However, I just can't bear the thought of someone using MY money while I have nothing to show for it. Also, sad to say in these critical times retailers are closing doors for good, left and right. If you have something on layaway, on which you've been faithfully making payments and the store closes, you're out your goods as well as your cash. Of course the choice is yours.

If you know of other stores, please let us know in your comments.

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]]>best buyBestBuyburlington coat factoryBurlingtonCoatFactorycashcredit cardsCreditCardsDebit CardsDebitCardskmartlayawaylayaway plansLayawayPlansLayawayStoresmarshallssearsToni Clark2009-11-02T23:45:00+00:00Michael Baisden's On-Air Pledge: $5,000 for Heather Ellis Legal Defense http://www.bvonmoney.com/2009/11/02/michael-baisden-heather-ellis-case/http://www.bvonmoney.com/2009/11/02/michael-baisden-heather-ellis-case/http://www.bvonmoney.com/2009/11/02/michael-baisden-heather-ellis-case/#commentsFiled under: ,

Just when you thought black celebrities didn't care anymore, the "Bad Boy of Radio," Michael Baisden announced today that he is going to give $5,000 to the legal defense fund of the family of Heather Ellis, a 24-year old black female college student who faces 15-years in prison after cutting in line at a Walmart.

The case has drawn a firestorm of controversy, being featured on Anderson Cooper 360 last week, as well as many other national media outlets. I am especially supportive of Michael's bold move, because he announced on the air that he is planning to support the rally that I called for on November 16 in Kennett, Missouri, the belly of the beast of racism. Given that Rush Limbaugh grew up less than 100 miles away, I've had to be seriously concerned about the safety of those coming to town.

I was especially touched by Michael Baisden's move because I was hurting over the Ellis family's financial pain. In their quest to save their daughter, the family has borrowed money that they didn't have, and tried almost everything in their power to get help. For two and a half years, their calls for help fell on deaf ears, with the exclusion of local leaders such as Rev. Jessie Bonner of the NAACP and Rev. Dwight Montgomery of the Southern Christian Leadership Conference. When I reached out to try to help the Ellis family, I could sense the frustration in their voices, and I could immediately tell that although local members of organizations were getting involved, their case was not getting appropriate attention from the state and national leadership of these groups.

As we discussed today on CNN, one of the challenges of African American families when confronted by the justice system is that black people do not always have the financial resources to fight the cases put before them. Therefore, thousands of citizens are sent to prison regularly or sign false plea agreements simply because they cannot afford to fight the charges. Justice should not be a commodity only available to the rich. Without the support of Michael Baisden and others who have given to the Ellis family legal defense, this case may have been one decided by the team with the largest bank account.

When I saw that Heather's case was being ignored, that is when my assistant Shauntay and I went on the prowl. Heather is the daughter of a pastor, has no criminal record and is on her way to medical school. When I looked at Heather, I saw my own sister, another pastor's daughter who went to medical school. I didn't know how much we could do for Heather, but I figured that I'd try my best. Dr. Wilmer Leon has also stepped up to the plate, aggressively pursuing justice on this issue on his Sirius/XM Satellite Radio show, along with Elliot Millner in DC and Christopher Metzler at Georgetown University.

Well, fate worked out in our favor, as we were able to get Heather's story onto CNN, and many other national media outlets. At that point, the leaders who seemed to forget about her case suddenly remembered who she was all over again. Michael Baisden's move was the most brilliant I've seen thus far, and for that reason, he will always have my respect.

Our rally for Heather Ellis is being held on November 16 at 11 am in Kennett, MO. Buses are coming in from all over the country, and we can show you how to organize a bus for the trip if you want us to do so. It is critical that we present a show of force to let prosecutor Stephen Sokoloff know that we cannot allow a deranged justice system destroy a young woman's future over a disagreement in a checkout line. Some things are simply ridiculous.

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Dr. Boyce Watkins is a Professor at Syracuse University and founder of the Your Black World Coalition. To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>african american newsAfricanAmericanNewsblack newsblack scholarsBlackNewsBlackScholarsheather ellisHeatherEllismichael baisdenMichaelBaisdenBoyce Watkins, PhD2009-11-02T20:55:00+00:00Economic Recovery Definition: Is the Economy Really Getting Better?http://www.bvonmoney.com/2009/11/02/economic-recovery-definition/http://www.bvonmoney.com/2009/11/02/economic-recovery-definition/http://www.bvonmoney.com/2009/11/02/economic-recovery-definition/#commentsFiled under: ,



What is the definition of an economic recovery? This is the hot finance topic of the week. As the White House unrolls a PR plan to try and demonstrate that the recession is over thanks to the administration's efforts, the question of how to exactly define economic recovery is causing confusion. Let's look at the facts and try to determine an economic recovery definition.

President Obama has claimed that 650,000 jobs have been created or saved through his stimulus plan. The Dow increased by 200 in response to the good news. Plus, the economy grew last quarter for the first time in a year at a rate of 3.5%. Modest, but good. There is also the increase in home sales reported in September. And even Ford posted a profit of nearly $1 billion this year, which came as a surprise to the business community. But do these positive reports illustrate that our economy is set for permanent stability?



Some say no. Increases in car and home sales have been spurred by federally-backed incentives like the $8,000 first time homebuyer tax credit and the cash for clunkers program. These increases don't stand on their own as signs of consumer strength. So what can we use to define economic recovery?

Writers at the Wall Street Journal believe the jobless rate is a much more meaningful benchmark. But right now it is too soon to tell exactly where that rate is heading based on the statistics available. So even the jobless rate cannot help us develop a reliable economic recovery definition until we have more information.

Let's try looking to the president for his definition. The POTUS has declared: "The benchmark I use to measure the strength of our economy is not just whether our GDP is growing, but whether we are creating jobs, whether families are having an easier time paying their bills, whether our businesses are hiring and doing well." (CBS News)

As unemployment remains high and it is still difficult for people to get loans, we are clearly far from a lasting economic recovery -- by the definition of the president himself. But as we have faced the worst economic decline since the Great Depression, it is silly to expect our economy to fully recover after a few months of federal intervention. Obama's stimulus plan may not have created a full economic recovery within months, but it has helped many families survive what could have been a much worse financial scenario. It has also supported state governments that provide social services like police and teachers to all.

This type of relief may not fit an expert's economic recovery definition, but it has helped society overall in the short term. For that alone the president can be commended.

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]]>000 Jobs000Jobs650Economic Recovery DefinitionEconomicRecoveryDefinitionpresident obamaAlexis Stodghill2009-11-02T17:00:00+00:00Who Owns the Black Haircare Industry? Not Black Peoplehttp://www.bvonmoney.com/2009/11/02/black-hair-industry-110209/http://www.bvonmoney.com/2009/11/02/black-hair-industry-110209/http://www.bvonmoney.com/2009/11/02/black-hair-industry-110209/#commentsFiled under: , ,


I was intrigued by a recent call for a boycott of non-black beauty supply stores by Professor Devin Robinson. I wasn't intrigued by the boycott out of a desire to endorse or oppose the movement. My imagination was captured by the reasons that someone might consider a boycott. According to Professor Robinson, African Americans represent 96% of the consumption in beauty supply stores, but only 5% of the ownership.



Robinson is planning his boycott for the week of November 16 - November 22, to be launched in St. Louis. This will be the same week as our rally in support of a black woman, Heather Ellis, who is facing 15 years in prison for cutting line at a Walmart. It will be interesting to see if the boycott of the haircare industry raises awareness. I personally applaud the idea of finding constructive ways for African Americans to engage in more business ownership. Chris Rock's recent film, 'Good Hair' got us talking about the importance of hair in the lives of black women, and perhaps now is the time for a regime shift. At the very least, one can argue that an industry that takes so much from the black community should be expected to give something back. But this trade will never occur if black women and men are not conscious about where we are purchasing our haircare products.

A documentary presented below by Aron Ranen (he seemed to want me to know that he is a white man) breaks down the industry and presents some disturbing realities that black people may have to confront when we think carefully about how much money we are giving away. Consumers are relatively weak when compared to producers of valuable commodities. African Americans must stop focusing solely on consumption and find paths toward ownership.

The documentary is below, enjoy!

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Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, "Black American Money." To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>african american businessafrican american haircareAfricanAmericanBusinessAfricanAmericanHaircareblack businessblack haircareblack womenBlackBusinessBlackHaircareBlackWomenBoyce Watkins, PhD2009-11-02T17:00:00+00:00Obama's Fed Chairman Makes Racially Ignorant Remarks: Dr Boyce Analyzeshttp://www.bvonmoney.com/2009/11/01/ben-bernanke-racist-comments/http://www.bvonmoney.com/2009/11/01/ben-bernanke-racist-comments/http://www.bvonmoney.com/2009/11/01/ben-bernanke-racist-comments/#commentsFiled under: , , ,


I've always had mixed feelings about Federal Reserve Chairman Ben Bernanke. I feel that he is better than the previous chairman, Alan Greenspan, but the Fed Chairmanship (like the presidency) is almost never given to the right man. Just the fact that it is almost always given to a man is problematic enough, and the truth is that only white men need apply for the job.

Well, when you are limited in your option pool for the top job, bad leadership and flat out ignorance can sometimes be the result. While Fed Chairman Bernanke might know some nuts and bolts about economics, he appears to be shockingly misinformed about economic disparities between blacks and whites. His embarrassing and highly inappropriate statements at Morehouse College serve as a significant case in point.

In a recent interview at Morehouse, the Fed Chairman was asked what he felt to be the reason for the wealth gap between blacks and whites. In response, Bernanke said that the gap was due to a lack of "financial literacy" and "financial education" on the part of African Americans. That's all he mentioned.

What? Sorry Ben, but did you ever hear of this little thing called "slavery"? What about this other thing called "Jim Crow laws," which made it nearly impossible for African Americans to pass wealth onto their children? Wealth disparities are not created in a day, as inheritance levels (which vary substantially for whites and blacks) not only change your starting point in life, but also have a significant impact on your trajectory.

According to the 2007 Survey of Consumer Finances, the median household wealth of white Americans is 10 times greater than that for African-Americans. Additionally, other forms of inheritance, such as access to managerial positions, education and business ownership are far more likely to accrue to whites than African Americans. For example, Bill Gates claims that his wealth was self-made, but his mother was connected with board members at IBM, who gave him his first major contract. So, statistically speaking, if Bill Gates had been born a black man, he would not be a billionaire today. And in spite of what the Fed Chairman might believe, wealth disparities are not due to the fact that black people are financially ignorant. Rather, they are due to leaders such as Bernanke who refuse to acknowledge how 400 years of racially-biased wealth distribution can impact structural and financial inequality.

The other point that Mr. Bernanke fails to mention is that white American saving and investing habits are incredibly problematic as well. The recent financial crisis was due to the fact that the American savings rate had become negative for the first time since the Great Depression. Additionally, Americans (not just black people Ben) were borrowing money for homes they could not afford and not preparing for retirement. So, the idea that Chairman Bernanke would sum up the black/white wealth gap as "White people smart....black people illiterate" is a shocking disappointment and a glaring reminder of the fact that our economic captains in the Obama Administration have almost no understanding or respect for the unique economic challenges of the African American community.

I won't even get into Obama's appointment of Lawrence Summers as the Head of the National Economic Council, given that Summers disrespected Dr. Cornel West, one of the most significant black scholars in American history. During a spat when Summers was president of Harvard, he criticized Dr. West's work as not representing "appropriate" scholarship. Translation: you are doing something that white scholars don't understand, which thus implies that you must be inferior -- I get it all the time here at Syracuse, a school that hasn't tenured a black man in Finance in their entire 140-year history. Professor Summers is also the one who implied that women might have a natural deficiency in their ability to understand mathematics. Back to the point made earlier about inheritances of social and financial capital, Summers is the nephew of Paul Samuelson, who won the Nobel Prize in Economics. Do you REALLY believe that Summers would be in the position he is in had his uncle not won the Nobel Prize? No. Some might consider him to be a moderately intelligent version of George W. Bush.

The idea that Obama supports individuals who continue to embrace mindsets reflective of white male supremacy should be problematic to us all. The financial team within his administration needs a makeover, and their "expertise" and qualifications should be questioned by the American people. This is not to undermine the president or his ambitious goal of helping our country out of a recession. But it must be honestly and accurately noted that it's no coincidence that members of his economic team are so inclined to bail out wealthy white men on Wall Street and appear to have almost no concern for struggling black men on Martin Luther King Boulevard.

A note to Chairman Bernanke: The present around us has been created by a set of tasks that were performed in the past. If you are only able to see wealth disparities through a lens created in the year 2009, one that is blurred by your own biases as a white male in an elitist profession, you are missing 99% of the picture. To cite African American ignorance as the sole driver of wealth gaps in America is a reminder that our leadership still thinks of black people as second class citizens. Rather than presuming cultural superiority on the part of whites, why not engage in creative and intelligent policy analysis that might actually fix the problem that America has created? It was not the flaws of black America that created structural inequality; it was poor decision-making on the part of the very institutions that employ men like Bernanke and Summers over more qualified women and minorities who deserve equal access to those positions. It's time for some personal responsibility - black people didn't create racial inequality in America.

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Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, "Black American Money." To have Dr Boyce commentary delivered directly to your email, please click here.

 

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]]>african american wealthAfricanAmericanWealthben bernanke racist commentsBenBernankeRacistCommentsblack financial expertsblack scholarsblack wealth gapBlackFinancialExpertsBlackScholarsBlackWealthGapBoyce Watkins, PhD2009-11-01T15:39:00+00:00Professional Women and their Love Lives: Money and Matrimony Sometimes Conflicthttp://www.bvonmoney.com/2009/10/30/black-women-love-and-money-102909/http://www.bvonmoney.com/2009/10/30/black-women-love-and-money-102909/http://www.bvonmoney.com/2009/10/30/black-women-love-and-money-102909/#commentsFiled under: , ,


I have become obsessed recently with trying to figure out how successful black women find a way to get it all done. Now, by "successful," I'm not referring to the woman who works 70 hours a week while seeing all of her relationships die in the process. I am referring to the women who do some of the most important jobs in our society (nurturing children and maintaining their relationships) while finding success in their professional lives. Call me old fashioned, but I think that there is no job in the world more important than being a mother.

This week on Financial Lovemaking, S. Tia Brown and I speak with Dr. Towanna Freeman, a life coach and women's empowerment guru, about what it takes to maintain love, life and everything in between. We ask Towanna the hard questions about her business and her family and try to determine the formula for keeping it real and keeping it realistic.

One thing that Towanna makes clear is that you don't have to be perfect to be happy. She also reminds us that successful people are not successful all the time. The key is having the right mindset and always striving for success, whether you are feeling successful or not. I can personally say that I fail at roughly 90 percent of everything I do: But it's striving for that last 10 percent which helps to set me apart.

The interview with Towanna is below. Enjoy!

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Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, "Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good." To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>Boyce Watkins, PhD2009-10-30T09:43:00+00:00Higher SAT Scores and Getting Ready for College: Dr Boyce Tipshttp://www.bvonmoney.com/2009/10/29/higher-sat-scores-and-getting-ready-for-college/http://www.bvonmoney.com/2009/10/29/higher-sat-scores-and-getting-ready-for-college/http://www.bvonmoney.com/2009/10/29/higher-sat-scores-and-getting-ready-for-college/#commentsFiled under:

I was asked recently how to prepare for college. I was also asked how to pay for it. Well, what might surprise you is that paying for college and preparing are actually closely related. The better prepared for college your children are, the easier it will be for them to pay for college with scholarships and other financial support. So, rather than spending money on new Air Jordans for your child, spend that money to help them to find a tutor.

Here are four things about getting higher SAT scores and preparing for college that you should keep in mind when dealing with your kids.

1) Good ACT and SAT scores don't come naturally, you have to prepare. Some people think that you are going to magically end up in college just by saying that you want to go. Some think that you should take the ACT and SAT cold, and that natural intelligence will carry you through. That's not the case. Your child should prepare for college like it's a part-time job: studying 2 - 3 hours each day, for several months straight. Yes, that sounds like a lot of work, but is it really very much when compared to the fact that most of our kids are fine with working at McDonald's for four or five hours a day, or going to football practice for three hours a day after school? Education MUST be the number one priority in your household if you want your children to have a bright future.

2) Make sure your child is taking classes that will truly prepare him/her for college. With the horrific state of the American educational system, the truth is that we can't trust the system with our children. Making good grades is not enough when it comes to ensuring that your kids are prepared. Make sure that they are taking classes that meet the standards of attending college, and this will reflect itself in higher SAT scores. Check with the university of your choice to ensure that your child is enrolled in the classes necessary to get into that school.

3) Apply to at least 12 universities. The more irons you have in the fire, the more likely it is that one of them is going to get hot. Have your child do one college application every two days for one month. that will give him/her roughly 15 applications to various colleges. You can then find out which schools have needs that match the things your child has to offer, and you should make sure that your ACT and SAT scores are high enough to get into the places you apply. You'll never know what opportunities are out there unless you apply for them.

4) There should be no use of the word "if" when preparing for college. I hate the fact that there are so many people who are afraid of college or think that it only works for someone else. I teach at a university that charges over $30,000 per year, and I argue that any 10th grader of average intelligence could get a good grade in my class, if they study each day consistently. I don't care what your SAT scores happen to be, college is not nearly as difficult as some might lead you to believe, and the truth is that it can change your life forever. It certainly changed mine, and I was told that I wasn't smart enough for college in the first place.

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Dr. Boyce Watkins is a professor at Syracuse University and author of the book, "Everything You Ever Wanted to Know about College." To have Dr. Boyce commentary delivered directly to your email, please click here.

 

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]]>act scoresActScoresafrican american scholarsAfricanAmericanScholarsblack scholarsblack studentsBlackScholarsBlackStudentssat scoresSatScoresBoyce Watkins, PhD2009-10-29T19:34:00+00:00Mistakes Couples Make When Mixing Love and Money Togetherhttp://www.bvonmoney.com/2009/10/28/black-love-and-money-102809/http://www.bvonmoney.com/2009/10/28/black-love-and-money-102809/http://www.bvonmoney.com/2009/10/28/black-love-and-money-102809/#commentsFiled under: ,


As I prepare for an appearance on ABC News to talk about money and relationships, I thought I would share the answers to some of my questions that were asked of me by the producers. Perhaps this can be valuable information that can be used to help others. There is more in my book, Financial Lovemaking, which goes deeply into the struggles that couples have when negotiating the challenging task of merging love and money together.

1) What do Love and Money have in common?

People think it's taboo to mix love and money in a conversation, but it's not. It's actually essential that you do so. Loving together means living together. In most relationships, you spend more time talking about functional aspects of life, such as paying the bills and purchasing decisions than you spend on "lovey-dovey" stuff. Also, like making love, merging your assets involves sharing something of value with another person. Similar to the act of sharing your body, merging your assets with someone else can either be a fulfilling experience or a devastating one, depending on who you choose as your partner.



2) What are the biggest mistakes couples make when it comes to managing love and relationships?

I can list some common mistakes very simply: Not communicating about money, stepping into something without knowing what you're getting into. Not being honest with yourself or your partner. Allowing love to dominate your logic when it comes to determining if someone is right for you. Not critically analyzing the spending, saving, borrowing and investing habits of your partner and how this is going to play out in the long-term. Not analyzing the long-term earning potential of your partner and determining if you are comfortable with it.

3) What does it mean for a couple to "get financially naked with your partner?"

In regular love, you eventually have to get naked. That means the person sees your physical assets and liabilities. The same should be done financially: you and your partner should share debt levels, income levels, spending habits, credit scores, perceptions of money and all the things that your partner needs to know. The key to making good love is communication and the same is true for financial lovemaking as well.

4) Is financial lovemaking only a topic for couples or those seeking relationships?

No. Part of the lovemaking process means learning to love yourself. That means understanding your own relationship with money and how you are going to reach your own financial goals. Good financial health is not just for the benefit of current and future partners, it is also important for you. Additionally, financial lovemaking affects how money and relationships merge in all kinds of scenarios: with your children, relatives, friends, etc. By being financially healthy, you are ready to merge assets in an effective way when the right situation comes along.

5) How does bad financial lovemaking spread beyond your significant other? What about other offspring, relatives, etc?

Many financial lovemaking problems come from our children and parents. If you don't raise your children to be financially independent, they can become liabilities during retirement rather than assets. If you don't know how to manage your financial relationships with loved ones, you might find yourself being drained in a way that frustrates both you and your partner. Love is something that permeates every dimension of our lives, so effectively managing our money can be a tool toward making good love.

6) What is a "life portfolio" and what do you mean when you say that "our most significant financial assets in life having nothing to do with money?"

The most valuable things in your life are usually non-financial: your health, your happiness, your love and your time. All of these things were granted to us from birth and have nothing to do with money. Many times, I see people destroying the most valuable assets in their lives, all in the pursuit of money, and I find that to be sad. Money should be a tool for the enhancement of that which is most valuable to you, not a weapon to destroy the things that matter.

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Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, "Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good." To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>black loveblack relationshipsblack wealthBlackLoveBlackRelationshipsBlackWealthlove and moneyLoveAndMoneyrelationships and moneyRelationshipsAndMoneyBoyce Watkins, PhD2009-10-28T16:23:00+00:00Free TV: Watch Movies or Free TV Online With Hulu & Save Moneyhttp://www.bvonmoney.com/2009/10/28/free-tv-free-movies-online-hulu/http://www.bvonmoney.com/2009/10/28/free-tv-free-movies-online-hulu/http://www.bvonmoney.com/2009/10/28/free-tv-free-movies-online-hulu/#commentsFiled under:



Free TV is getting to be a distant memory, but with cable and DVR costs running hundreds of dollars a year on average, you might be paying more for TV than it is worth. In today's economy everyone is looking to save, and it might be time to ditch that cable box. With services like Hulu, it is easy to watch movies or TV for free -- a simple way to reduce entertainment costs.

Hulu.com was launched two years ago by FOX and NBC to provide free TV online, and it carries a lot of current programs. Because the content is always available on the site, there is no need to DVR popular programs like 'House' and 'The Daily Show.' If you want something deeper like classic films and documentaries, Hulu.com also allows you to watch free movies online. These older movies are great for film buffs or a family looking for a way to pass a rainy afternoon at no cost.

I myself have incurred extra costs over the years by buying my favorite old TV series and movies on DVD. But these costs may become a thing of the past for me, and even the idea of paying $20 a month to Netflix seems unnecessary. If you are looking for a new way to save in this economy, you may want to consider trading your cable box, Netflix and DVR service, and using Hulu. Hulu is a legal way to watch movies or TV for free online, and because it is backed by the TV industry, it has a stable Web site that works well and has a lot of features that enable you to watch free TV and movies in comfort. And did I mention: It's FREE TV! What more can you ask?

Now that's a smart money move.
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]]>free tvfree tv showsFreeTvFreeTvShowshuluhulu.comWatch Movies or Free TV OnlineAlexis Stodghill2009-10-28T15:48:00+00:00Susu Economics: Join a Susu Club and Save Money the Old School Wayhttp://www.bvonmoney.com/2009/10/28/susu-economics-susu-club-save/http://www.bvonmoney.com/2009/10/28/susu-economics-susu-club-save/http://www.bvonmoney.com/2009/10/28/susu-economics-susu-club-save/#commentsFiled under: ,



Susu economics make great savings sense. Don't believe the hype. Susus are legal. Susus are safe. Most importantly, Susu clubs work. For those of you unfamiliar with the term, Susus are essentially informal black banks. They generally serve two purposes: they issue loans or act as long-term savings accounts to its members. During a time when people feel antsy about putting their money in the hands of FDIC-insured financial institutions, some may think it's ridiculous to consider giving your hard-earned bucks to a local barber, nurse or accountant serving as your Susu collector, a person who manages the entire fund. But taking this calculated risk may have you laughing as you pass the bank. In a way, a Susu club represents African American collective economics at its best.

Don't get me wrong. I'm not anti-establishment. I don't think CitiBank is going to run off with the $1000 I have sitting in my savings account. That said, I love Susus. I was first introduced to them as child. As a tween I'd hear my grandmother and great-aunts chatting at the dining table over empty Pepsi cans and a hand of spades about what they planned to do once their "Susu hand" came up. Their economic agendas ranged from trips to the Caribbean and Atlantic City, to down payments for mortgages and automobiles. As a lover of all things grand, I knew instantly I wanted this "hand" dealt to me when I grew up.

Over the years I learned that the "Susu hand" they were referring to wasn't comparable to hitting the lottery, it was in fact their turn at collecting money that they each toiled and skimped to save every week for a designated amount of time. As a Susu club member, when your "hand" comes up you get all the money you've saved, or would have saved, in one lump sum. For example if the Susu hand goal is $5200 per person, ideally you'd like to gather 52 people who will commit to giving $100 per week for a year. The Susu collector is responsible for holding each week's pot, and over the course of a year every week someone would get that cache, commonly referred to as a Susu hand -- minus a predetermined fee given to the collector for managing the account. By participating in the Susu club, they knew they'd be guaranteed to save a certain amount of money to put towards their objective.



The concept isn't new. Susus have been traced to back Ghana and are one of the oldest forms of banking, or collective economics. In the history of the earliest Susus, people created contracts with the local collector for loans, to hold savings for the group and to collect interest. In the U.S. in modern times, particularly post-integration, Blacks utilized the system to save for big-ticket items, like mortgages, to avoid paying hefty, predatory interest rates or because many were denied loans despite being qualified.

Nowadays, Susu clubs are typically set up by a group of African American friends or colleagues (and many Asians) who come up with a specific financial target they each want to achieve. I found my Susu group while looking to achieve every Black woman's goal: perfectly coiffed hair. My beautician introduced me to my Susu collector, a beauty shop owner. Sounds funny, but small business proprietors usually have a knack for numbers and are great networkers -- they tend to be the perfect Susu collectors. Over the last three years I've participated in several Susu hands and have used my boon to pump up my long-term savings accounts, pay off credit cards and travel. While Susus aren't my only source of savings, I've benefited greatly from them and love having a Susu club in my wealth-building arsenal.

Here are some tips for those of you interested in participating in one:

Tips for Participating in a Susu

1. Do your research before you join. Understand the terms, meaning the time period you're expected to contribute, and penalties, meaning the fee for late payments or forfeiture. In addition, make sure the Susu club you join is reputable. You can do this by asking other participants and people who may have knowledge of the group's history.
2. Sign a contract. Get everything in writing so you know your obligations and have a system of accountability for the collector.
3. Don't be late. The economic purpose of the Susu is boost up your savings, so paying late fees is counterproductive. Make sure you allocate space for your payments in your budget.
4. Have a purpose for the money you save. Saving is great but once you get your money it's easy to go tear 'da mall up. Stay focused. Have an intention for the money you're saving -- you may even want to write it in your calendar on your payout day. This ensures that all of your hard work pays off.

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A trained life coach, S. Tia Brown has spent the last 10 years following her passion for journalism as an editor, writer and TV correspondent. Brown has worked for CNN, E!, MSNBC, the NY Daily News, Essence and Black Enterprise. Most recently she served as Senior Editor for In Touch Weekly magazine. Check out her advice column 'Do Better, Be Better' at www.tiabrown.com.

 

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]]>African American FinanceAfricanAmericanFinanceBlack CultureBlack FinanceBlackCultureBlackFinanceGhanaMoneyPersonal FinanceS. Tia BrownS.TiaBrownSavingsSusuSusu ClubSusu EconomicsSusuClubSusuEconomicsSususS. Tia Brown2009-10-28T13:20:00+00:00Dr. Boyce Money: Do Entrepreneurs Need an MBA? Probably Nothttp://www.bvonmoney.com/2009/10/28/black-entrepreneurship-black-wealth-102809/http://www.bvonmoney.com/2009/10/28/black-entrepreneurship-black-wealth-102809/http://www.bvonmoney.com/2009/10/28/black-entrepreneurship-black-wealth-102809/#commentsFiled under: , ,

I am going to say some things that will take money out of the pockets of people like myself. But darn it, it has to come out. I have taught MBA and undergraduate business students for the last 16 years, at many major universities. I believe strongly in the value of black entrepreneurship and I believe in the power of compassionate capitalism. The problem, however, is that there are times when I wonder about the power of an MBA. Fenorris Pearson, a successful black entrepreneur, has shared the same concerns, and I can't say I disagree with him completely.

Here's the deal. An MBA can be a powerful tool to learn how to manipulate your way through the complexities of corporate America. Most programs teach you how to analyze charts, create spreadsheets and do all the little things that your boss is going to ask you to do. The problem, however, is that the vast majority of professors teaching MBA courses at major institutions have never actually done the work they are teaching you to do.

An MBA student at an Ivy League institution recently told me that when he asked his professors how to actually implement the strategies that they were teaching on the chalk board, the responses from professors were always disappointing. The student aspires to be an entrepreneur, where being able to do something matters far more than your educational background. In fact, entrepreneurship is the ultimate test of your business skill: If you can't do the job, your academic credentials aren't going to help you win customers. Someone buying your product doesn't care if you have a Harvard MBA; they only care if you are giving them good service for a fair price.

The reason that university professors in many business schools across America have become ineffective at transmitting necessary tools to their students is that campuses have turned toward a commitment to research over practical skill building. Publishing complex research papers in journals that almost no one reads becomes the Ivory Tower's elitist way of proving that they are better than you and that they don't actually have to care if you aren't getting what you need to be successful. The MBA becomes a bought and sold commodity, where any student who can cough up the cash is almost certain to walk out of the institution with a piece of paper in his/her hand. While this doesn't define all MBA programs, it's hard to find anyone who would not argue that there is not some degree of grade inflation.

The professor you ask to help you find a job sometimes can't do a thing because he has few contacts in industries in which he has no experience. The faculty member who is asked if he has seen his models used in practice can only show you his publication in the Journal of Finance. University faculty have become as weak and complacent as special interests in the health care system when it comes to remaining committed to an ineffective educational process that takes care of the few individuals in power. It won't be until more practical models of education become preferred by society that university faculty will finally get the point. What is saddest is that many black scholars in business have also bought into the elitist "look, but don't touch the public" model of scholarship, leading many of our greatest minds to rot away their potential. I am not being critical of their achievements; rather, I am encouraging them to not be afraid to leave the intellectual plantation.

When it comes to the MBA, the bottom line is this: MBAs can be good for alumni networking and they are good for certification that allows you to obtain a position with a company. They may not, however, be very good at actually showing you how to start and run a successful company. You might get a better education on Google.com.

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Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, "Black American Money." To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>african american scholarsAfricanAmericanScholarsblack entrepreneursblack scholarsblack wealthBlackEntrepreneursBlackScholarsBlackWealthBoyce Watkins, PhD2009-10-28T00:10:00+00:00