Broke-A$$ Brotha Tip #4: Paycheck to Paycheck

Ever wonder how you can get your finances together in such a manner that you no longer have to live paycheck to paycheck? That is something that many a Broke-A$$ Brotha has asked since the Great Recession.  This blog likes to share tips with y'all about ways to increase revenue and decrease expenses ... we call them Broke-A$$ Brotha Tips.

One of two things need to happen if you hope to break the 'paycheck to paycheck' cycle. You either have to increase the amount of money coming into your pockets or reduce the household expenditures until you have a surplus that can be invested to create more income.

All of us Broke-A$$ Brotha (or Sista) types face the challenge of spending less money than we take in. Overcoming this challenge means that we have to stop our desire to "keep up with the Joneses" by purchasing trendy clothes or other luxuries. When you do make a purchase, try to buy stuff on sale or off-season in order to get the best value.

We also need to be disciplined about our spending habits. We need to monitor our expenses closely in order to see where we are spending the most money and then we can cut back accordingly. For example, I eat out too damn much. I love Panda Express ... but, I need to begin cutting back on my black-peppered and teriyaki chicken. How about you? Do you have a monthly household budget that makes sense? Are you limiting the use of credit cards and finding ways to save on taxes so that you can also save money? These ideas aren't sexy ... but, you'll benefit in the long run.

Blackonomics: 'Putting Our Dollars Under Arrest'

by Jim Clingman
cross-posted from Blackonomics

Here’s an intriguing concept: Arrest the Black dollar. Say what, Jim? You read it correctly. We should arrest our dollars and charge them with neglect. Put them on trial, call the witnesses to testify against them, and convict them of crimes against Black people. Sentence them to a minimum of five years hard labor with no possibility of parole. That’s right, lock them up and make them work for their keep by producing distribution companies, supermarkets, financial institutions, and entrepreneurs.

Since our dollars are not making sense, we should discipline and punish them by keeping them locked up and making them work until they do start making more sense. Right now our dollars are “wilding out” in the marketplace, making everyone happy and secure except us. They are “raining down” at strip clubs; they are beating a path to jewelry stores and exchanging themselves for gaudy trinkets and ornaments; they are hangin’ out at “da club” to pay for expensive vodka, champagne, and other top-shelf liquors. They definitely need to be disciplined.

Our dollars are filling the coffers of profiteers who know that all they have to do is make the most ridiculous item in return for them. Black dollars are strewn at the feet of shyster preachers who “anoint” them by running back and forth on top of them, as they shout, “Money cometh to me!” At least they are telling the truth about that part.

Black dollars are running wild, out of control, in our neighborhoods. They run as fast as they can to the businesses of everyone other than Black people. They are jealous as well and are always trying to outspend one another by purchasing a bigger car, a bigger house, the latest gym shoes, clothing, and all the accoutrements of what they believe to be the “good life.”

More than one trillion Black dollars are acting inappropriately, committing economic crimes against Black people. They really need to be controlled and contained before they destroy us. Our dollars are weak, and are vulnerable to the constant lure of trivial things and dishonest people who are waiting to trap them with their platitudes and false doctrines. If we put our dollars in labor camps where they could work for us all day long, imagine how quickly we could revive our economic power.

Read the rest of this Blackonomics article.

Broke-A$$ Brotha Tip #6: 'As a Man Thinketh, So Is He'

This blog likes to share tips with y'all about ways to increase revenue and decrease expenses ... we call them Broke-A$$ Brotha Tips. They are good for Sistas too!

Sometimes a Broke-A$$ Brotha needs to watch the conversation taking place alone or in the company of others.

'As a man thinketh, so is he.' ~ Proverbs 23:7

Few of us make the connection between that Bible verse and our financial well-being. What we think about money affects our financial well-being!  And our vocabulary is often filled with stinkin' thinkin' in terms of words, statements and opinions that detract from our financial well-being.

Here are some examples:

1. "I am broke." - Well, not really. Your resources are just not sufficient to meet your current needs or wants. Proper management of money represents opportunities to get your financial house in order.
2. "I can't afford that." - This statement is a mantra of hopelessness. Even if you are in debt or your finances are such that the amount of funds needed are not currently availalbe, choose to speak words of hope about your finances. If you properly plan and establish priorities in your finances, you can afford whatever you need. Gabby Douglas' mother proved this to the world when she financed the training necessary to train her daughter well enough to win double gold at the 2012 London Olympics.

3. "I'm a day late and a dollar short." - This statement implies either that you procrastinated or lacked planning ... and neither is good when talking about money. On the other hand, this statement is on-target if you choose not to plan, save and invest. Isn't it time for you to erase that statement from your vocabulary? If so, then simply make the choice to plan, to save, and to invest.
4. "Saving for a rainy day." - Take the negativity out of saving. Instead of saving for a rainy day, perhaps it is time for us to save for opportunities. Emergencies are merely challenges that test our financial and spiritual growth. Even when emergencies arise, start look forward to how you will grow as a result of the challenge.
5. "Saving for retirement." - Stop saving for retirement and begin saving for a redirection of life activities. People you know are retiring at 40, 45 and 50 years young ... and they usually start new careers or businesses. Start looking at retirement as a change in life activities -- an opportunity to pursue other goals.

'The poor man and the rich man do not play together' ~ African proverb

Broke-A$$ Brotha Tip #5: Retirement Planning and Investing

It is never too late to begin a program of retirement planning and investing. It would be better if you started sooner ... but, today is the first day of the rest of the life for any Broke-A$$ Brotha (or Sista)!   This blog likes to share tips with y'all about ways to increase revenue and decrease expenses ... we call them Broke-A$$ Brotha Tips.

Part of how Broke-A$$ Brothas get broke is procrastination. There is still time for you to make a commitment to a program of retirement planning and investing to plan for your future ... and the future of your progeny.

1. Commit to saving for retirement. - Just hoping that you'll have enough money for retirement is not a smart strategy. Social Security alone won't cut it It's wiser to take control of retirement planning yourself by investing in company 401(k) plans and IRA accounts. Also, make a plan to save on a regular basis, whether you start with $50 a month or $5,000 a year.
2. Create and adhere to a financial plan. - Having a plan enables you to how you can help your family in the fugure. For example, opening and contributing to a college saving fund gives you a sense of relief. There are many people who earn good income but don't think ahead for college education until the children are ready for college. President Obama wants to reduce the cost of college education ... but, we need to do our part.
3. Don't waste your money. - You want to grow your money not throw your money away. Don't depend on winning the lottery as an investment or retirement fund. Look to investment vehicles such as stocks, bonds and mutual funds. Real estate is also a definite idea for you to consider.

How are you doing with your retirement planning? Investments? How about your savings plan ... do you save a regular amount each month? Being Broke-A$$ ain't something any of us want. Use these tips to jump start your commitment to financial empowerment.

Broke A$$ Brotha Tip #3: Netflix Rate Hikes vs. Public Library

Politicians are bickering up in Washington DC about deficits and debt. It is the argument that many a Broke-A$$ Brotha has when (s)he runs out of money before they run out of month. This blog likes to share tips with y'all about ways to increase revenue and decrease expenses ... we call them Broke-A$$ Brotha Tips.

Today's tip surrounds Netflix. I got the following email message from Netflix today saying that they planned a 60% increase on my monthly bill.

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Dear Broke-A$$ Brotha,

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.

Your current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:

• Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
• Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming) for $7.99 a month

Your price for getting both of these plans will be $15.98 a month ($7.99 + $7.99).

---

I love my Netflix Queue as much as the next guy. I probably have over 150 titles in my queue at the moment. I also enjoy watching BBC mystery television series episodes via the streaming option. However, I don't think it is worth getting ripped for a 60% increase in the monthly bill. Especially when I can get movies at no cost from my local public library.

Are you a Netflix customer? If so, what are you gonna do?

Broke-A$$ Brotha Tip #2: Go Mobile Young Man!

I'm not proud of being a Broke-A$$ Brotha. My plan is to take steps necessary to get rich over the next few years. I'll share some tips with y'all as I go through the process. I would love to hear from you on some Broke-A$$ Brotha (or Sista) tips that you have learned over the few months and years as well.

Villagers will recall that my first tip was simply entitled, Ignorance is Not Bliss. I suggested that it was important to be fully aware of the money that flows in and out of your hands each month. You can do this by tracking your expenses and income as part of a budgeting process.

In my case, I discovered that I need to do two things. First, I need to cut my monthly expenses wherever possible. Second, I need to increase my income with either more clients or some other revenue-generating idea.

I started with looking at my telephone expense. That is where I discovered Broke A$$ Brotha Tip #2:

Go Mobile Young Man!

I pay my local telephone company a monthly bill. Over the years I've let them convince me to BUNDLE a number of services. I have my Internet, cable and land-line phone service all bundled with Cincinnati Bell. It dawned on me that I *NEVER* (like in NOT EVER!) use my land-line phone. I use my cell-phone for all communication. I called Cincinnati Bell and found out that I could save $41 per month (or $492 per year) if I simply discontinued my land-line phone service. So I discontinued the service. 

Go Mobile Young Man!

Do you really need your land-line phone at your crib? If not, consider the monthly cost-savings you can get from having it disconnected.

After I finished the call to Cincinnati Bell (which I made on my cell-phone while driving home from an appointment) it occurred to me that I'm probably late on learning this particular Broke A$$ Brotha tip. Are you already fully mobile when it comes to your phone service?

Broke-A$$ Brotha Tip #1: Ignorance is Not Bliss

I'm not sure when it happened. At one point in my life I was living large. In fact, I left my secure corporate-type employment for life as an entrepreneur back in July 2002. The economy over the past few years took a big chunk out of my cash inflow. The problem was that I didn't cut back on my cash outflow at a similar rate. Next thing you know ... I'm a Broke-A$$ Brotha.

I'm not proud of being a Broke-A$$ Brotha.  My plan is to take steps necessary to get rich.  The process begins by getting serious about my current financial situation. I'll share some tips with y'all as I go through the process. I would love to hear from you on some Broke-A$$ Brotha (or Sista) tips that you have learned over the few months and years as well.

My first tip is simple. You can't fix your situation if you fail to face your situation.

Ignorance is Not Bliss!

My Dad dealt with personal finances in a very disciplined and direct manner.  He was an aeronautical engineer so he made a good living.  However, he didn't believe in credit cards ... so he never got caught in the trick bag of living beyond his expenses.  I remember that he would take me to the Sears warehouse store to buy clothes because they had some great deals.

The largest single expense that my Dad ever had was the first (and only) home he bought.  His instructions to the realtor were simple -- the home had to be located in such a manner that the sun was behind his back on both ways of his commute to work.  Secondly, the total mortgage expense needed to fit into his salary.  You should know that my Mom was working full-time as a public school teacher ... but, my Dad insisted that the mortgage payment fit into his salary as if we had a one-income family.   It took a little longer to find the house ... but the 2-story brick house that my parents purchased is now fully-paid off and remains the family home of my Mom as she enjoys her retirement years.

My young brother was disciplined as well.  He showed me his system once.  He would get cash at the beginning of the month to cover his discretionary expense budget (food, entertainment, clothes, transportation, gifts and such).  He would then (literally) place the cash-dollar-bills in envelopes that were labeled for these various discretionary expense line items.  He was disciplined enough to stop spending on a particular item if the money ran out before the month ran out.   He told me that it became easier to cut back on things like fast food and other money-wasters while he was using that envelope system.

I now recognize that I need to get a handle on my expenses. I need to BUDGET. The odd thing is that I've been tracking income and expenses with my Quicken software for many years. However, I've not been disciplined about reviewing the results regularly ... analyzing those financial results ... and making adjustments accordingly.

Ignorance is Not Bliss.  When you're living large you're making enough money to make up for stupid spending decisions.   When you're a Broke-A$$ Brotha those stupid spending decisions can literally put you in jail (...speaking to those of us paying child support with that comment!).  

I pledge to review my budget vs. actual expenses for the first nine months of 2010. I will also create a budget for the final quarter of 2010 that details out my fixed expenses (rent, utilities, child support, etc.), my discretionary expenses (transportation, food, entertainment, etc.), my debt repayment expenses, my long-term savings and my emergency savings (six months of current income).

How about you? Do you have a written budget for the month of October? Are you tracking your actual income and expenses against that budget? If not ... it is time to get busy.

Village Resolutions: Develop a Budget

I wonder why we only talk about resolutions at the beginning of each new year. Shouldn't resolutions be at the forefront of our thinking on a regular basis? Last week, we suggested that it is important for all villagers to set specific financial goals.

This week we remind all villagers about the importance of developing a budget. After all, the first step in developing a smart savings plan is to put together a budget. Make it simple. Begin by totaling all your income -- wages, salaries, dividends, interest and other regular income.

Next, list two types of expenses: Those which are fixed each month and those which vary.

Once you know how you're spending your money, take a look at those variable expenses that can be reduced or eliminated.

I hope that these reminders are helping you as much as they are helping me! Do you have a budget up & running right now?

Village Resolutions: Financial Goals

Often we wait until New Year's Eve to make resolutions on important life goals. I was thinking it might be good to review our resolutions throughout the year. One of the major goals that all villagers should consider is:



Set Specific Financial Goals
Think about any unusual expenses you may incur or big-ticket items you need to purchase in the coming months. Start saving for such items now, not when it's time to pay the bill. This is as good a time as any to set an annual savings goal, such as ten percent of your salary.

Do you have financial goals in place? What say u?