A Conversation with Melinda Emerson - The Small Biz Lady!

There are several chats on Twitter that I enjoy and Melinda F. Emerson's #smallbizchat is one of them. Each Wednesday night she features a guest expert who shares useful information for small business owners. Her book, "Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works!”, is a great road map for business startup and I recommend it to my clients. Well folks, today we have a treat as she shares her motivation for writing her book and some additional tips for aspiring and established small business owners... 

Q: Why did you write Become Your Own Boss in 12 Months?

A: My mission as small business coach is to End Small Business Failure. I wanted to develop a tool for people who are unhappy with their jobs and wanted to start a business.  I also wanted to discourage people from just quitting their jobs without a well-researched plan. Too often I got calls from people seeking my advice about starting a business—after they had already quit their job which is just too late to start planning.  

Q: What makes your book different from all the other start-up business books?

A: Become Your Own Boss in 12 Months provides a realistic, month-by-month planning guide to start a sustainable and profitable small business. If you’re planning to start a business soon, the key to being successful is not only to create a sound business concept, but also taking the time to figure out the business of running a business. This book will point out the important and necessary steps to take – so you will have the right foundation for a small business. Become Your Own Boss in 12 Months is not a book about writing a business plan; it’s about planning your successful small business. 

Q: Why does it take 12 months to start a business?

A: 12 Months is an ideal time-frame to start a business, it’s not meant to be restrictive.  I have been an entrepreneur for more than 11 years.  Based on my experience, I believe the longer you plan, the more research you will do, and the more money you save, the more likely you are to succeed in business.

Q: What if you don’t have 12 months?

A: Sometimes people are forced to start sooner. This is triggered by layoffs, getting fired, buyouts or retirement packages.  I only planned for three months with my first business, but the challenge with that approach is you learn plenty of lessons the hard way, and that can be expensive.  If you live by a budget, have your debt under control, and have a significant amount of savings, you will be able to start your business much sooner.   Depending on your individual situation, it may take more than a year to get your personal finances in order.

Q:  Who should start a business? 

A:  Anyone with a solid, profitable business idea, willing to learn the business of running a business, can start a successful small business. 

Q:  Why do small businesses fail so often?

1)      No Life Plan—You need to develop a life plan and then build a business around that.  

2)      No Network—People do business with people they like and people they know.  Who do you know and,   more importantly, who knows you?

3)      Lack of Target Market Focus—You have limited time and limited resources.  Choose a niche so you can focus your marketing efforts.

4)      Undercapitalized—If you do not save enough money to run your household for at least a year and fund the business, you may not be able to hang on until the business can generate any real revenue.

5)      Lack of Fiscal Discipline—Do you run your business with a budget?  Do you just rob the cash register when you need some cash? Do you make business decisions based on up-to-date financial information?

Q: How do you transition from a job to starting a business?

A: Inside Become Your Own Boss in 12 Months, I illustrate the Emerson Planning System which is a six step system to transition from having a job to starting a business.  It includes developing a life plan, a financial plan, validating the business concept, developing a marketing plan, the business plan and then finally starting the business.

Q:  What is Life Plan and why and do I need one to start a business?

A:  You need a Life Plan before you ever write a business plan, because you need to make sure that the business you start is the right business for you.

Q: What are the 7 Essential Principals of Small Business Success?

A: Throughout the past five years, I have interviewed hundreds of entrepreneurs and business executives. After listening to what they said about running their businesses and observing how they did business, I realized that there were 7 things they all had in common. They include having an entrepreneurial mindset, utilizing strict fiscal discipline, and having a kitchen cabinet of advisors. They make use of a well-defined brand identity; have a niche market customer, excellent customer service, and a firm understanding every day of their cash position by carefully managing their banking relationship. 

Using these principles can help any business run at its best.  It’s the gold standard all businesses need to strive for from the very beginning.

Q: Who is this target audience for this book?

A: roadmap to reinventing a struggling business. 

About the Author

Melinda F. Emerson, also known as Twitter’s SmallBizLady, is a seasoned entrepreneur, professional speaker, and small business coach whose areas of expertise include small business start-up, business development and social media. She hosts #SmallBizChat weekly on Twitter for emerging entrepreneurs.  She is the founder and CEO of Quintessence Multimedia, an award-winning strategic communications firm. Purchase 'Become Your Own Boss in 12 Months: A Month-by-Month Guide to a Business that Works' on Amazon.com or visit succeedasyourownboss.com!

Here's to successful business in 2011!!

-Dorethia
connercoaching.com

Get a Money Team!

Who's on your money team? Instantly, many of you thought I was going to talk about your accountant or financial coach. Ah, fooled you - while we are definitely important and you need us, our offices are closed after 5p.m. and on some weekends.

Who is it that you can call at a moments notice for advice on a financial idea, purchase or simply for suggestions based on their experiences with money? Below are 3 suggestions, think of the people in your life who may fit the bill and get them on board.

Who Should Be on Your Money Team?

1. Savvy Soldier: An older person who is smart in their finances and knows the pitfalls because they have made a few mistakes and recovered from them. You can go to them with your financial plans and more than likely they've been there, done that and can give you some (sound, useful, practical) advice. They are also often the listening ear you will need when you are frustrated with your finances.

2. Frugal Fran(k) - (I actually have a friend who is frugal and her name is Fran.. but I'll carry on) This person won't always tell you no - but will hold you accountable. He or she will pull you out of the clouds when you are about to make a silly mistake with your money. They will also be the voice in the back of your head when it comes to budgeting, balancing and buying.

3. Live it Up Liz - This person will remind you to live some - but do it responsibly. He or she will encourage you to stop putting off your dreams and make room for them now.Yes, go on vacation, start a business, switch careers, but not at the detriment of your finances - because you have a plan.

Disclaimer: remember these people are responsible with their own money, not chasing any get rich quick schemes and should have your best interest at heart!

Here's to mastering your money in 2011!!

-Dorethia
connercoaching.com

What NOT To Do With Your Money in 2011

DO NOT:

Skip filing your tax return...

The IRS will get their money, you skipping a year just adds on to the penalty and fees you will have to pay in the end. Please believe me when I tell you that credit card interest has nothing on what the IRS charges for unpaid back taxes.

If you end up owing every year, increase the dollar amount taken out of your paycheck each month.

Ex:  Amount owed each year: $1,500/12 mos = $125 per mo. or $62.50 additional bi-weekly per pay

Entrepreneurs, authors, freelancers, etc. - immediately calculate at least 25% of your earnings from each job, sale, etc. for income taxes. Don't wait until the end of the month, set aside a separate account for your taxes. Talk to an accountant about setting up a tax payment schedule.

Go on vacation when you have no savings....

Okay, yes you work hard and everyone wants a vacation. But plan for the vacation throughout the year. Set some money aside, now is a great time to start because by summer you can have your $1,000 in an emergency fund and money for vacation. That is... if you are willing to sacrifice to do so. Emergency fund trumps vacation... I know.... bummer.

Tap into your 401k before you liquidate stock, sell valuables...

Many have lost their jobs or faced another financial hurdle - don't immediately liquidate your retirement accounts. First tap into any valuables you may have that can be sold, paintings, jewelry, etc. in addition to individual stock. Let your retirement fund be a very, very last resort. Even if you make a hardship withdrawal you still take a big hit and end up with no retirement savings.

Co-sign on anything for anyone.. nope.. not even your kids...

70% of people who co-sign on a loan for someone else end of paying for the loan themselves. Can you afford to pay for someone else's car, home, new windows... you get the picture.

Hide money from your mate....

The things money arguments are made of - dishonesty, distrust, selfishness. Learn to work together on your money or there will be trouble.  Decide how you will pay the monthly bills, save, invest and then separate what's left for miscellaneous individual purchases. 

Borrow more money.....

You can't win a race running in place. Adding more debt, while trying to get out of debt, makes no sense! Set your goals, develop a debt payoff plan and stop borrowing. You'll be happy you did.

Panic and get a payday loan.....

Everyone knows how much I dislike the cash advance and payday loan establishments. Don't let your financial situation scare you so much you run to one of these rip off shops!  Pay day loans often prey on low income neighborhoods and can cost $30 for every $100 borrowed. That's crazy! Stay away!

-Dorethia

connercoaching.com

We're Getting Out of Debt! Week 2 - Business Debt!

Every Monday as @DorethiaConner & with my co-host, @BenitaTyler, we interview experts during our weekly Twitter Online convo #MoneyChat held from 8pm-9pm est.  This post pulls the highlights from our #MoneyChat topic 'Get Out of Debt in 2011'    Last week we discussed getting out of personal debt, this week our very own resident expert, @BenitaTyler, of TBSUSA Tax, Accounting and Small Business Consulting, gave us advice on how to trim business debt.  

What are some common sources of business financing?

Common forms of debt that in a small business include loans, lines of credit, venture capital and accounts receivable factoring

Is it possible to run a debt-free business?

Absolutely! It really just takes good financial management. Plan finances in advance and use tools like accounting software and spreadsheets to help you make good decisions with cash flow.

What are some of the cons to business debt?

Using borrowed money takes away some control in your company. Profits belong to lenders and  investors.  You may also have a significant amount of interest that drains your cash flows. Without financing you may not be able to reach as large a market as quickly as you’d like. The upside is you’re avoiding high cost of interest and the risk of non-payment. You are able to keep more of your profits. 

What steps can we take to create a debt-free business?

Strategically increase sales so that your business can cover operating expenses and generate surplus. Watch your spending –keep overhead as low as possible and always invest back into the business. Aim to create a cushion of 12 months’ worth of operating capital . 

Any final resources to help us manage business debt?

My last bit of advice would be to trim costs but not quality. If you are currently renting office space, but find yourself not utilizing it – virtual offices are good alternative to expensive leases. Try a Google search to locate one near you. Here are a few other resources for saving money in your business:

• Google Voice - free phone service 
• Rapid Fax Service  or Efax Service - affordable fax services
• Square Up  - credit card processing for your iPhone or iPad - a low cost alternative for merchant equipment with low transaction fees     
• Quickbooks and Freshbooks both offer online solutions that run about $19 a month. Evaluate the features to see if these work for your accounting/bookkeeping needs.

Oh and yes, there was homework! I didn't forget ... List all your debts smallest to largest. Develop a plan to pay them off in that order. So if you've been avoiding the letters, shoving them in a drawer or on top of a shelf - dig them out. It's time to take control of your finances, whether personal or business, instead of the other way around!

Just WHAT is #MoneyChat? Click here and here to find out!

-Dorethia

www.connercoaching.com

We're Getting Out of Debt! Week 1

Monday night's #MoneyChat convo was awesome. What is #MoneyChat? Click here ---> http://bit.ly/iewZBx (An online Twitter conversation about all things money and business. Every Monday, 8:00 - 9:00p.m. est.)

We had a lot of fun and below is recap of key points: ( full transcript here--> #MoneyChat )

@rj1975  - Told us that paying his debts off smallest to largest helped him a great deal. He's already a financial genius because that is EXACTLY what I want you to do to dump your debt. Smallest to largest because it gives you a sense of accomplishment and builds your momentum.

We talked about unemployment and side gigs as well, with so many people we know out of a job, how can you not?  

@learntech and @SourceBlogger gave us great tips on making money while sleeping by selling online and blogging. If you have writing skills, set up a blog around a spec topic  and  sell products on the sidebar. The money you earn can be used to pay off debt or get out of the red.

Other side gigs: Tutoring, cooking, babysitting cleaning, handyman, minor auto repairs, driving... whatever it takes to have income (ahem.. legally.. got it? Ok)

Homework:

1. List 5 ways to bring in extra money (if you need to) - implement 2 of them this week!
2. Write down a Debt Free Goal: I will pay off $____ in 2011
3. Read 2 Personal or Biz articles about finances and share link w/group next Monday

Just in your free time....

Chew on one book per month - more if you are ambitious - here's 3 to get you started:

Ryan Mack - Build Your Financial Future http://amzn.to/hOyoJ

Lynette Khalfani - Zero Debt http://amzn.to/geOFXi 

Thomas J. Stanley - Stop Acting Rich... http://amzn.to/f4gwJB 

Next week 1/10/11 - we're checking the homework (tee hee) and talking about getting rid of business debt!

Upcoming Financial Events in Metro Detroit: 

Jan. 22: Young Money for Youth & Young Adults: www.youngmoney.eventbrite.com

Feb. 5th: Mastering Your Money in 2011!! (Adults): info@connercoaching.com

Can You Decipher This? Yep, prize involved! 

whydontusubscribetomyemaillistlikemeonfacebookhelpafriendgetontrackwithmoneytweetmypostsubscribetomyrssfeedjointhefanpagecommentonaposttellyourfriendsaboutwwwconnercoachingcompostalinkonyourfbpagethenyellitfromtherooftopfollowmeontwitteriappreciateyourhelplol

Your Financial Coach, 

@dorethiaconner

Dorethia Conner, MBA: Personal Finance and Business Coach

www.connercoaching.com | dorethia@connercoaching | 800.962.2491 | 248.325.8016

The Year's Money Reflections....

I'm thoroughly enjoying this holiday season. I wasn't able to completely take the time off, but I've had a great time hanging with my daughters and family. I've also been able to sneak in some 'me' time.. which mostly involved me in jammies and socks in front of The Today Show, Ellen, Dr. Oz and Oprah...not so exciting, I know!

Currently, I'm sitting at my remote-office-coffee-house location with the boss of me (youngest daughter) reflecting on what financial advice I'd like to wrap 2010 up with ....I'll give a few quick tips: 

• No financial strategy is the end all be all - you have to do what's best for you and meets your goals

• Beating yourself up about your financial situation helps nothing. Learn from it and keep it moving!

• Have a plan. If you are in the same spot as last year - time for a new one. Get help.

• Read one personal finance article a day. Attend at least 3 seminars a year. (Try one per quarter) 

• Reward yourself as you accomplish each financial goal!

Alright, back to this almond bran muffin thingy... Happy New Year!

-Dorethia

www.connercoaching.com

2011: A New Year - Another Chance

Wow! 2010 is practically history... when you look back, how do you feel?  Did you accomplish what you planned to? Did you travel to a new place, reconnect with a family member or ... did you get your finances in order? 

When I say 'in order' - it's whatever that means to you. It could mean that you reached your goal of setting aside 15% into your retirement accounts or slowly weaned yourself off several credit cards.. maybe you've still got a couple to go? Maybe, just maybe, you have finally disciplined yourself enough to do a monthly budget and balance your checkbook. Believe it or not, there are many of you who have finally become DEBT FREE! (applause). 

"Not me Dorethia," you say, "I didn't accomplish ANY of my financial goals this year...things got a little hairy, unexpected changes" or "I simply couldn't stick to my plan." Say it with me... 'That's Okay!'

Wherever you are.... whether you are pleased with your progress or not... you get another chance. Forget making New Year's resolutions, let's just make it happen! Re-evaluate your money management habits and goals. Honestly address what you can improve on and pat yourself on the back for what you have accomplished. Each day we all get a do-over. The key though, is to 'do it over'! Do it differently, change what's not working. You don't want to end 2011 in the same place financially that you are in now. 

Oftentimes all we need is a strategy... which is what I offer at Conner Coaching - personal finance coaching for individuals, as well as, strategies for business owners. So, if you are spinning your wheels going it alone... let me help you get on the right track. 

Happy New Year!

Dorethia Conner

dorethia@connercoaching.com

Entrepreneurs: Keep Your Day Job!

So, you are tired of your job, it's not your dream, your passion. But your part-time business is and you are ready to step out on ______ (insert your word here) and call it quits on the 9-5, 11-7, etc! Please don't do it. I understand your frustration, I know what it's like to go to work everyday unfulfilled or simply tired of the daily grind, politics, etc. on the job.

 "but working takes away from the time to reaalllly focus on my business, my book, my invention, my______"...... Sorry, I still suggest you keep your job - but change your mindset.

Working is a trade-off. It allows you to live the lifestyle you live, pay your bills, go out to eat every now and then, take care of your kids, etc. It also allows you to pay for your dream! Trust me, you won't be able to focus at all when the mortgage is due and you can't make it because you decided to quit your job and follow your passion.

Instead of dreading going to work - put a smile on your face and think of the days coming when you will call the shots. Cheerfully respond when a co-worker or boss is unreasonably annoying...... all the while working on your plan....(evil laugh with music: tee hee hee)

Calculate how much money you need annually to live on and run the business successfully. Then begin a separate account to fund that amount. 

Author Lisa Nichols tells the story of how she downsized her home, her car, moved her and her son in with a friend to fund her dream. Each pay she wrote a check to herself and deposited it into a separate account. She says she tried to make each check bigger than the last even if it was only $5. At the end of 3 years she had saved enough to start her business full-time. Now, she is a breakthrough guru, her books and public speaking in great demand around the world.

How profitable is the business now?

Is your business generating enough income to cover the bills associated with it and allow some money for re-investing into marketing, growth, etc.? Are you adding to it from your personal funds each pay? There's nothing wrong with that, but at some point, the business should be able to fund itself. Initially, and in lean times, you will definitely have to add personal funds to keep it going. Develop a timeline as to when it should be profitable and you will be able to pay yourself even while running it part-time.

Below are some excellent resources for you to begin planning for the day you can say buh-bye to your day (or night) J.O.B!

Blog Posts:

Finish Your Business Plan In 3 Months!

Should You Be Out Of Debt Before Starting a Business?

Books:

Become Your Own Boss In 12 Months - Melinda Emerson

The E-Myth Revisited - Michael Gerber

Your Financial Coach, 

Dorethia Conner
dorethia@connercoaching.com
www.connercoaching.com

#MoneyChat - Love & Money!

Every Monday as @DorethiaConner & with my co-host @BenitaTyler we interview experts on my weekly Twitter Online Show #MoneyChat held from 8pm-9pm ET. This post pulls the highlights from our #MoneyChat topic Love and Money! Our special guest was Shawn White, MA, LPC (@Shawnwhitemalpc). Shawn is a licensed professional counselor, educator, speaker and trainer. Her approach utilizes practical tips with evidenced-based knowledge to strengthen families.

This one was sooo hot, we are doing Part II Next Monday! Join us 12/6/10!

#MoneyChat: How important is money when it comes to love?

Shawn: Money plays a significant part of the relationship and if not discussed openly it can it can create problems later on.

#MoneyChat: Is a relationship more difficult when a woman makes more than the man?

Shawn: According the Bureau of Labor & Statistics BLS 24% of women make more than their husbands.  This can be an added stress because it is perceived as the person who makes the most has the power.  So if a woman does not know how to balance power, how to work as a team instead of having a demeaning attitude - this can be a major issue. If a woman is constantly bringing it up or making comments about how much she brings into the household, her mate will be resentful.   

#Money Chat: Why is money when of the top reasons people divorce?

Shawn: Poor communication. People see finances as a sensitive subject - but when you live together or take on major purchases together the conversation about money should have started long time ago.

Money symbolizes many different things for everyone - i.e. control, security, happiness or status and it is often related to our childhood experiences.  Since many have not been taught how to be effective communicators (ensure the message is being received)  and often weren't taught money management skills as youth or young adults, the expectations could vary. If there's no honest discussion about it early on in a relationship the effects are quite damaging because decisions are being made based on assumptions.

 #MoneyChat: Should a husband & wife have a separate account?

Shawn: Personally, I believe there should be two accounts: household account and personal expenses.  The question of a need for a separate account usually eludes to trust issues.  What has happened in the past, could it be trust has been betrayed from another relationship? Will each spouse have access to the account and bank statements? Every couple does what works for them, but the conversation and purpose should be discussed before marriage to avoid conflict. 

#MoneyChat: Is it important to know how much a person makes while you are dating?

Well, how long have you been dating?  Once you know you are ready to commit to one another the money talk should began.  You don't have to give your weekly payroll but starting the discussion with budgets, debts, expenses and goals.

#MoneyChat: How important is credit score?

Shawn: Very important, we know some have bruised credit but being honest and open about debt is essential to getting off to good start in the relationship. You should not hide your debt obligations, that isn't fair to your mate. As a team you can work on improving both of your credit scores, but all the cards should be out on the table.  

#MoneyChat: How long should you deal with your love being out of work?

Shawn: We are in a rough economy and a person can be unemployed for a year or longer.  During financial hardship it is important to have a budget to get bills paid and a plan of action i.e. sell a car, garage sale, ... and know the best defense if pre-planning. This is also a time to be extremely supportive. For a man being out of work it is usually harder than it is for a woman. Men often equate work with their identity and not having a job could leave him feeling lost on top of other stressors.  

Women, who are known to be independent can find it frustrating as well but usually she can be more adaptable. 

5 Tips When Dealing With Unemployment:

1. Speak positively about the situation and to the person out of work 

2. Have confidence in the ability to learn a new skill

3. Be willing to adopt non-traditional roles i.e. he/she may do more   cooking, taking a job in retail even though you have an MBA

4. Be willing to except support from others 

5. Get emotional support from others so you can give emotional support to the loved-one who is out of work.  When the major breadwinner loses their job having mental and emotional stability is the source to get you through.  

#MoneyChat: What if you are both bad with money, who pays the bills?

Shawn: Both should take responsibility and make an effort to improve their money management skills. With any problem, you have to admit you have a problem.  It is about personal responsibility, what were you shown about money growing up? Did you have to save to make a purchase or were you given what you wanted? Maybe it was it a situation where you didn't grow up with much money and are trying to compensate for that?  You have to practice good stewardship over what you have so your money will grow. Get help - have a family member who is good with money show you their methods, begin reading about personal finance or seek out a professional who can get you on the right track.

   

Transcript: http://bit.ly/h9PkP1

Twitter Search: http://bit.ly/e8UlS8

CONTACT US!

Dorethia Conner: Personal Financial and Small Business Coach

www.connercoaching.com | dorethia@connercoaching | 800.962.2491

Benita Tyler: Tax, Accounting and Women Owned Business Consultant

www.tbsusa.com |  btyler@tbsusa.com | 888.380.1112

Is There a 'Thank You' in You?

It's so easy to forget to be thankful. Whether you are having money problems or living pretty comfortably right now, it's time to start giving thanks. Not just on one day of the year, but everyday. 

A lot of times we get caught up in the issues of our daily lives and forget to think about what is going right. If you just can't think of anything to appreciate, count the simple fact that you are breathing in and out. Start there and I'm sure you will find some other things to add to the list. 

While it's important to focus on your finances and be smart with your money - don't let it consume your life to the point where you miss everything else going on around you. Don't be so busy working extra to pay off debt that you miss all your family activities. Yes sacrifices have to be made to reach your goals, but weigh the costs and watch the extremes. Neither do you want to be so wrapped up in the money that you do have,  that you forget to help those less fortunate. After all, the slightest turn of the tide could put us in their shoes.

So, enjoy the holidays with your family - laugh, argue over silly board games, whatever your tradition, soak it all in and give thanks...

What I'm thankful for: 


Each brand new day God gives me...
My children... *muah*
My family - immediate and extended... they rock!
My friends - what a great group!
The opportunity to live my dream - sharing financial management strategies with the world.... a big thank you to my clients - I appreciate your business!


Now, what are you thankful for?


Your Financial Coach,
Dorethia
www.connercoaching.com

Feeling gratitude and not expressing it is like wrapping a present and not giving it.

-William Arthur Ward

#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

___________________________________________________________________________

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