#MoneyChat - Laid Off? Here's Help For Your Finances.

Each week as @DorethiaConner & with my co-host @BenitaTyler,we interview experts on my weekly Twitter Online Show #MoneyChat held at 8p.m - 9p.m. ET.

This is a detailed transcript from our  #MoneyChat segment addressing the financial concerns of those who have lost their jobs. Benita and I answer the most frequently asked questions.  Benita is a Tax, Accounting and Small Business Expert - you can learn more at TBS USA Accountants and Tax Advisors

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There are an average of 15.3 million Americans unemployed. In the beginning of the downturn the automotive industry was providing buyouts and corporations were giving severances. Now, much of that has tapered off and many are simply being asked to exit. So what do you do in this situation?

First, I’d like to say that this is a very emotional experience. A million scenarios may go through your mind as to how this happened, your loyalty to the company, your co-workers etc. It’s okay to be emotional, it’s hard to take in what has happened at first.  But once you’ve gotten over the shock of it all, you must take action.

What do you suggest we do in today’s market knowing that it is so volatile?
With uncertainty in the job market the chances of experiencing fewer hours, slower sales, and job loss is hitting home for a lot of people. These early signs are forewarnings that preparation is key. Have your emergency tools ready so that if this strikes home you are ready. Things you should have ready are

- Resume/Cover Letter on CD and hard copies – you will need several versions

- Interview clothes

- 3 – 12 months emergency fund

- A good network – (it pays to be nice to people, you never know who can help you land a job)

Where do you start once you’ve been laid off?

1.     Whether you have received a severance or not, immediately file for unemployment.  Since there are so many applicants, it is taking longer to receive benefits, so file quickly as you don’t know how long it will take to find a job

2.     Map out your finances, what are your monthly income and expenses. If you have a working spouse, how much will their income cover your bills? How long will severance and savings last?

3.     Seriously slashing. Now this isn’t just  - don’t get that daily latte’ slashing, this is cut everything outside of our bare necessities slashing.  

How do you determine who gets paid?

Pay These 1^st:

1. Housing:  Rent/Mortgage –  Try to get your mortgage loan modified to lower monthly payment
2. Food:  Cut coupons, buy off brands, but make sure there’s enough food in the house
3. Utilities:  Be super conservative with energy use, but pay this bill – TURN THOSE LIGHTS OFF!
4. Transportation: You need a way to get around to look for a job – pay the car note, keep gas in the car. If you have two car payments consider selling one to downsize

So take care of housing, food, utilities, transportation – THEN worry about the other bills – credit cards, student loans, etc. Call your creditors and let them know you’ve become unemployed. Your student loans will qualify for a deferment.

   

DO NOT use credit cards or payday advances to fill in the gaps! 

You will only pile on more debt and make the situation worse!

What should you do to stay motivated?

Don’t isolate yourself, surround yourself with the most positive people you know. It will be important to have cheerleaders to inspire you to get up and stay in the game. It may look bad now but the game isn’t over. It’s only over if you don’t show up for the next round. 

If you feel yourself slipping into depression, get help as soon as possible. For example: if you want to lay in bed more days than you want to get your day started that is a sign you need to talk to a professional

Some people get stressed because they feel deprived when no income is coming in. What do you suggest?

Find alternative sources of entertainment. You may be used to going out to dinner and the movies on the weekends but when you lose your job you have to get realistic with spending. Think of alternative ways that you can enjoy yourself that are free or at least low cost. Perhaps substitute dining out for potluck with family and friends and while you’re at it you can exchange the movie tickets for a game of charades, free community event, or weekend book club.

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If you'd like more information on how you can effectively manage your personal or business finances, or grow your business utilizing social media marketing tools, subscribe to Dorethia's email list at www.connercoaching.com. Once you subscribe you can download FREE Spending Plans and other resources!

Dorethia Conner, MBA, is the President of Conner Financial Coaching. She is a financial coach, who is often called upon as a resource for national media, including being a recurrent 

featured financial expert in Black 

Enterprise Magazine. 

For more information, or to request Dorethia to speak to your group or organization, please visit www.connercoaching.com,  call 800.962.2491 or email info@connercoaching.com.

Your Financial Coach, 

-Dorethia

Financially Happy Holidays!

I had a great time on the Isha Cogborn Show! We discussed 'Keeping Your Holidays and Your Money - Happy! Below is the transcript from our conversation and a link to the audio is posted to in the column to your right. Check out Life Coach Isha at epiphanyinstitute.com

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WELCOME! The holiday season is upon us! A time filled with lavish parties, hearty meals, gift-giving and for many, lots of stress. On the first episode of The Isha Cogborn Show on BlogTalkRadio.com, Life Coach Isha Cogborn will get you ready to enjoy the holidays without losing your sanity or savings.

You might be feeling the pressure of giving your kids a perfect Christmas, treating your holiday guests like royalty, or looking fierce every time you walk out the door. Black Enterprise Magazine Featured Financial Coach Dorethia Conner will join us to talk about why it’s ABSOLUTELY CRITICAL not to overextend yourself over the holidays and how doing so just might haunt you till next Halloween. Plus, Coach Isha will address your top holiday stressors. You can’t afford to miss this show…literally!

Coach Isha:  Ok Dorethia, we've been financially responsible all year long. Isn't it normal to spend   more money during the holidays? We're cooking big dinners, buying gifts, traveling...these things are important to us. Can't we splurge a little just for these two months?

Dorethia: I don’t  mind a little splurging, my question is: can you afford it? When you have paid all of your monthly bills, put money in savings and other obligations… what’s left? If you can't handle those things, you shouldn't even think about it! Yes, it is normal to spend more during the holidays, how about we take a break from the NORM?

Coach Isha: What’s the best way to prepare for the extra expenses the holiday brings?

Dorethia: Planning throughout year will save you a lot of grief during the holidays. If you aren't disciplined to put away money without touching it, open a Christmas savings account. You add a certain amount of money each month and aren't able to withdraw it until October. 


Key Point: When you think about how much money you might need, don’t just think about gifts you want to buy. Think about those dinners, those Christmas parties,  the increase in your grocery bill and maybe any holiday concerts or shows you want to take in. We often only think to save for gifts, but these other expenses add up as well. It makes the holidays more fun when you've pre-planned for all your expenses. 

Coach Isha: Assuming we haven’t had a chance to do those things for this season, how can you still enjoy this time of year and not punish your family for your lack of planning?

Dorethia: In that case we simply have to scale back our gift giving. You can still buy gifts of course, but always have  a certain amount to spend on each family member and maybe you just buy for your immediate family. When times are tight, I know many couples who exchange love for themselves and only buy for the kids. In addition to gifts, we should also create  family traditions – everyone making a craft, playing board games as a family, cooking  desserts together - are all ways to do this. These things make holidays special and are often remembered much more than the gifts.

Coach Isha: I know there’s someone out here that’s saying to themselves, “I hear you, but you only live once. You’ll always have bills, but the opportunity to create memories with family and friends doesn’t come very often. I’m using my credit card”. What would you say to urge them to spend responsibly?

Dorethia: Isha I hear that all the time and it is simply a foolish point of view.  Since when did creating memories have to equate to spending money.  How often do we remember the times we laughed together or got excited over a family game without spending a dime? It is short-sighted thinking and we have to begin to think like the wealthy – who  think and plan long-term. Ask yourself 'how are my actions today going to affect my financial future?' So you splurge during the holidays, racking up credit card debt, missing bill payments, when you can’t afford it, and you are crying in January. Why? Because you know you will spend the rest of the year trying to pay for toys that were destroyed Christmas day!

Coach Isha: You offer financial coaching, workshops, all sorts of resources for people, like me, who just may not be naturally gifted at managing money. How can people work with you?

Dorethia: I co-host an online Twitter talk show called #moneychat each Monday evening at 8p.m. eastern with my good friend, @BenitaTyler of TBS USA Accounting and Tax Services, where we discuss a variety of money topics in plain English! In Twitter Search type in hashtag and then moneychat (#moneychat) and you will find our thread to jump in the conversation. Follow --> @DorethiaConner

Listeners can visit my website at  www.connercoaching.com for Free Spending Plans and other resources.  In addition to speaking, I coach individuals and small businesses nationally via net meeting and telephone on matters ranging from getting out of debt to funding business ventures and building wealth.
Thank you for having me Coach Isha!
-Dorethia
 connercoaching.com

Debt Management: Keeping Abreast of Credit Cards

Yep, still smiling! Alright here it is, the link to Dorethia Conner's article feature in Black Enterprise Mag.. October 2010 issue page 99. 


DEBT MANAGEMENT 

Keep abreast of credit card news and developments—and work to pay down your debt. Banks and credit card issuers are losing money [because of recent credit card reform legislation] so they want to offset that some way. Everyone should stay on top of any news related to credit cards. Card holders have to watch their statements—every piece of mail they get at home—because banks are going to find a way to supplement.... 

Click to read the rest: All-Star Advice 2010

WHAT'S NEW?

#Moneychat!!! 

Join us for  #moneychat on Twitter, Monday's from 8p.m.- 9p.m.   A laid-back, candid discussion about all things #money! 

My twitter handle is @DorethiaConner... what's yours?

Your Financial Coach ~ Dorethia ~ www.connercoaching.com

Black Enterprise Magazine Celebrates 40 Years: Honors Founder Earl Graves

Black Enterprise Magazine is celebrating forty years of inspiring African American business owners to excellence. I had the pleasure of attending the celebration this year and it was amazing. The energy and emotion of the event was overwhelming. Mr. Graves shared stories of  the beginning days of the magazine when it was just him and his wife working long hours to produce a quality product. He saluted long-time sponsors who continued to support the project year after year, such as the host, Exxon Mobile. In addition, he encouraged entrepreneurs and small business owners to stay the course in providing quality service and products to our customers.

All year, Black Enterprise has been featuring special segments around their celebration. I highly recommend reading about the legacy of Mr. Earl Graves: B.E. Titans - Mr. Earl Graves Sr in addition to the other great articles and business insight offered.

I am proud of the history of Black Enterprise Magazine and grateful to announce that I'll be featured again in the October 2010 Issue! There's no link just yet, but make sure you pick up your copy!  In the meantime here are a few articles below in which I've been quoted. 

Your Financial Coach,

-Dorethia
www.connercoaching.com

Retiring Rich: How to Build a Nest Egg With Your Spouse

Written on 17 Sep, 2010 at 13:21 in B.E. Exclusives, Personal Finance, Retirement | viewed 483 times | 6 Comments

Planning for retirement is crucial at every point of your life, and that planning changes after you find the one you want to spend the rest of your life with. BlackEnterprise.com spoke with financial coach Dorethia Conner to find out... (Continue reading)

Tagged with: Dorethia Conner    financial goals    financial plan    financial solutions    investing for retirement    love and money    Nest Egg    retirement goals    retirement planning    Retirement plans    retiring rich    Roth IRA    Saving for retirement    Traditional IRA

Dealing With Debt: What to Do When Creditors Attach

Written on 24 Aug, 2010 at 11:00 in Credit & Debt, Personal Finance | viewed 355 times | 0 Comments

Here’s what you need to know if you are being sued by a creditor of if your account has been attached.... (Continue reading)

Tagged with: account attachment    attachment    bankruptcy    Credit & Debt    credit scores    creditor lawsuits    Dealing With Debt    debt collection    debt collectors    debt settlement    debt settlement agreement    debtors rights    wage garnishment

Cutting Edge: How NOT to Invest in a Mutual Fund

Written on 19 Apr, 2010 at 16:00 in Blogs, Investing, Personal Finance | viewed 1,329 times | 6 Comments

I never quite understood how subprime lending was able to ravage so many communities until recently. I attended an investing workshop in Brooklyn, New York. The presenters were from a company called Goal Mine and, along with teaching about how... (Continue reading)

Tagged with: Cutting Edge    Dorethia Conner    financial literacy    Investing    mutual 

Invest? Are You Serious?

While some people have decided to sit the market out altogether, there are others who are ready to dip their toes in the water and cautiously invest again or for the first time. Even in light of the current economic ____ (input the latest buzzword for tragedy here), I’ve been a proponent of investing wisely. The market goes through cycles and it will rebound again. That said… we have to be realistic, we have to do more research than ever on the companies we invest our money in. Long gone are the days of blindly following your investment advisor.

Start with a Mutual Fund

A mutual fund with a solid track record….yes… I hear you snickering… hey… I’m snickering too! Look for a mutual with returns in the 8-12% range over the long term meaning 10 – 12 years.  Make sure the fund manager didn’t just get there either, you want them to have at least 5 – 10+ years with the fund.

It is also wise to pick a mutual fund that is comprised of industries that are not dependent on one another.  For example, a real estate company and a home building company both suffer when there are hits to the industry. If both are in your mutual fund you will take a bigger loss.

Do Your Homework

Where to start your research? Google It!  Learn about the fund and the companies it holds. Search for each company in the mutual fund portfolio.  Find out what kind of media attention they are receiving, good or bad. What are other investors saying about them? Have they had a recent change in leadership? Go to their websites and download their annual reports, read their notes, look at the financials.

Of course, you want to know how the fund is performing.There are a ton of sites that allow you to do financial research. Morningstar.com is a leader in the industry, and you can view some of the content for free. Google, Yahoo, AOL, along with many others, all have finance sites where you can input stock/mutual fund symbols and it will kick out company information.  What are the experts saying about this fund and the companies it holds?

Below is a screenshot from CNNMoney.com for:  CAAPX – Ariel Appreciation Fund

If you scroll down, you will see more information on the performance, industries represented in the fund, names of top 10 companies and so on…

p.s. - No affiliation with Ariel, just used it as an example people.... happy investing!

Your Financial Coach,

Dorethia
www.connercoaching.com

Are You REALLY Ready To Invest?

Many people think they are ready to invest but in all actuality they aren’t.  Guess what? That's okay! There are a few things it is important to line up financially before you jump into buying stocks and mutual funds. 

You don't want to jump in blindly, be able to say YES! to the following before you begin investing:

• You have a handle on your budget (..er… a written budget), meaning you know where your money is going each month.

• You have an emergency fund saved

• You have paid off your debt (except mortgage)

• You are investing in your retirement via an employer fund or an IRA

• You have done your research on investing terms, you have begun to follow the market and you learned how to read the financial papers to track your investments

• You’ve gauged your tolerance for risk, and accept that investing is a long term project

Begin reading the financial newspapers, listening to the financial news... not obsessively, but just so you are aware of what is going on in the investing world. That's not to say you won't ever lose money, we all know that's not true, but it will allow you to be a better educated investor.

Your Financial Coach!
-Dorethia
www.connercoaching.com

Don't Manage Your Debt - Get Rid of It!!

You Are The GIFT!

OMG!!! We had such wonderful time last weekend as over 300 girls swarmed around us at the Annual You Are The Gift Conference for Girls created by H.I.S. Agency Founder and President Derschaun Sharpley. The girls participated in workshops and 'fun' zones that encouraged them to maximize the 'GIFT' they are! They attended classes ranging from zumba, hip hop, and etiquette to starting a business, relatioships and leadership. Of course, yours truly taught them how to keep their money tight in my 'Young Money' workshop!

I had a ball, each year the girls wow me. One young lady, who was 14, pulled me to the side before class to inform me she really needed help because she had a job and wanted to do the right thing with her earnings. So... we used her as our case study and I let the class help her budget her pay! They loved it...

I laughed out loud when I asked one of the classes what their goals were and one beautiful gift stated she wanted to not have to look at price tags when shopping, just shop freely! I hated to burst her bubble, but had to tell her that no matter how much money you have, you should ALWAYS look at price tags!!

Visit http://hisagency.org/ to learn more about Derschaun Sharpley and the wonderful work she is doing turning our young men and women into the next generation of leaders!

Your Financial Coach,

Dorethia Conner
http://www.connercoaching.com/

Getting Married? Filing Status Considerations by Benita Tyler, TBSUSA.com

Check out this guest post by my friend Benita Tyler of http://tbsusa.com/ Tax and Accounting Services. Following my wedding theme these past couple of months, Benita offers some practical tax advice for engaged or newlywed couples. Please visit the TBS website for an extensive outline of the tax and accounting services available to you!

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Summer is wedding season. If you are getting married this summer, remember to give some attention to your 2010 tax filing status. You have two filing status options: married filing jointly, or married filing separately.

Married Filing Jointly

You can choose married filing jointly as your filing status if you are married and both you and your spouse agree to file a joint return. On a joint return, you report your combined income and deduct your combined allowable expenses. You can file a joint return even if one of you had no income or deductions.

According to the IRS, if you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses.

We recommend that if you and your spouse each have income, you figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). You can choose the method that gives you the lower combined tax.

Joint Responsibility. Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse.

Married Filing Separately

You can also choose married filing separately as your filing status if you are married. This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return.

We understand that knowing which filing status to choose can be confusing. If you want easy to understand explanations for your tax questions contact us!

Benita Tyler, President
http://www.tbsusa.com/
info@tbsusa.com
313-377-1080