One of the main complaints that we all have with credit card companies sending cards to teenagers is that they don't deserve it. The theory is that they haven't earned the right to have access to thousands of dollars that they may not be able to repay. However, how many of us deserve credit?
It wasn't until the prosperity years of the '90s that credit became widely available. Before then, you had to have excellent payment history or lots of cash in the bank to access credit. Creditors were leery of allowing the common man access to its stash. This all changed when they realized that we are consumer society. Studies have consistently shown that Americans spend more than they earn. It doesn't take a rocket scientist to figure out that credit keeps us in that flux. We take no issue with buying a home that we can't afford, driving a car we can barely maintain or wearing clothes that we never should have bought. Credit has allowed us to create a lifestyle that may be enviable on the outside but no one realizes the strain that paying these bills puts on our lives which essentially makes us a slave to our jobs. We can not enjoy the freedom of doing what we want to do rather we are forced to stay at jobs in which we are unhappy or defer our dream job which may not pay as much as we would like because we have so many bills.
Credit alone is not the culprit instead it is the fact that creditors realized that the people wanting credit didn't deserve it so they figured out a way to punish them for their selfish desires – interest. Interest is a complicated beast that can take over a balance and have it whooping your butt before you even realize what's happened. If you are only paying the minimum payments each month, then you are essentially feeding the beast (interest) and starving the monster (principal). It may seem that the monster is being held off but the beast is growing and taking over your life.
I have nothing against credit, when used responsibly. It's almost like a gun, in the wrong hands it can be deadly. Credit is actually necessary in our society. If you want to make a significant purchase, like a home or a car, then your lender will want to know how you have handled your credit in the past. They will be looking for your monster and your beast to be tamed in a nice little cage called low/zero balance.
Every person should have at least one credit card, preferably a universal card like Visa, Master card or American Express, for emergencies. However, opening your wallet and displaying a credit card collection like newborn baby pictures is not impressive. The more accounts you have open the more leery a creditor may be about lending to you regardless of the their balances. Imagine you have six cards with $30,000 in available credit and an annual salary of $40,000. You may only have a total outstanding balance of $4,000 but imagine some traumatic event happening in your life, a creditor's worst nightmare is you going on a $36,000 shopping spree and never be able to repay your debts.
Not many of us deserve credit because we are selfish and materialistic. Rather than using credit cards for emergencies, buying the best house with an affordable mortgage and choosing an economic car; we choose to be slaves. Free yourself, pay down your debt and so that you can enjoy life. Having a low or no debt lifestyle allows you take advantage of jobs that you enjoy, allows you to save extra money for vacations and keeps you from dreading to open your mail.
Your money matters – its not about how much you make, but how much you keep.
31 March 2009
27 March 2009
Does your business have a social security number?
If you are a business owner, that number is called your tax identification (TIN) or employer identification number (EIN). This number is used to identify your business just as your social security number identifies you as an individual. If you have any employees, this number will also show up on their tax records as the identifier for your business. You will use this number to open bank accounts, apply for credit and on any other application that requires your business's identity to be verified.
Because many small business owners are often sole proprietors, they forgo establishing an EIN and use their social security number. Although your assets and liabilities are one and the same, the problem is - you have to use your personal social security number more often. By now, we have all heard about the dangers of identity theft so can imagine that each time you use your personal social security number you are increasing your chances of having your identity compromised. All business owners are allowed to apply for an EIN through the Internal Revenue Service (IRS) at no charge. If you are a sole proprietor, you may only have one (1) EIN no matter how many businesses you have. The application is called an SS4 and can be filled out online (http://www.irs.gov/) or you can print and mail it.
New business owners should obtain this number after you decide on a name and legal structure of your business. If you are an existing business and currently using your social security number as an identifier, you can still apply for an EIN but you will need to change the number on all of your bank accounts, credit accounts and accounting paperwork. Although this may seem like a tedious task, imagine the consequences of someone stealing your identification because you didn't take the time to mind your business.
Because many small business owners are often sole proprietors, they forgo establishing an EIN and use their social security number. Although your assets and liabilities are one and the same, the problem is - you have to use your personal social security number more often. By now, we have all heard about the dangers of identity theft so can imagine that each time you use your personal social security number you are increasing your chances of having your identity compromised. All business owners are allowed to apply for an EIN through the Internal Revenue Service (IRS) at no charge. If you are a sole proprietor, you may only have one (1) EIN no matter how many businesses you have. The application is called an SS4 and can be filled out online (http://www.irs.gov/) or you can print and mail it.
New business owners should obtain this number after you decide on a name and legal structure of your business. If you are an existing business and currently using your social security number as an identifier, you can still apply for an EIN but you will need to change the number on all of your bank accounts, credit accounts and accounting paperwork. Although this may seem like a tedious task, imagine the consequences of someone stealing your identification because you didn't take the time to mind your business.
24 March 2009
Discover your inner wine expert
It took me a LONG time to develop a 'sophisticated' wine palate. I believed that wine began and ended with White Zinfindel. As I grew older, I began stepping outside of my food and wine comfort zone and discovered a whole world outside of Soul Food and White Zin. The food part was easy because I discovered that no matter how the fancy the restaurant – everyone serves chicken and it's hard to mess up chicken. The wine, on the other hand, was a bit more tricky. While hanging out with my more cultured friends, I would notice them ask for a wine menu and read it with great interest. I, not wanting to feel left out, would also request a wine menu; however, as my eyes glazed down the extensive list, I had no idea what I was looking at or what I was looking for. Sometimes I got lucky, but sometimes I wanted to ask for a refund and a Crown and Coke. I knew that I had to do better. After some trial and error, I have found a few reds and a few whites that are staples on most menus and allow me to be considered 'the cultured friend.'
Let's start with the white wines.
The classic is a chardonnay because it is one of the more versatile wines and goes well with seafood. It generally has a fruity flavor that can range from apple and lime to tropical fruit depending upon where its produced and in what type of container. Some people find it a little dry when compared with White Zin. Riesling, my favorite, has a sweeter taste and goes well with spicy foods, poultry and pork. As the wines age, they embody more of a honey flavor coupled with their natural green apple, pear or lime flavor. The sauvignon blanc also goes well with seafood, poultry and vegetable dishes because of its grapefruit and grassy flavors.
Red wines tend to be more of an acquired taste because they are very dry and served at room temperature rather than chilled like white wines.
Merlot wines are the softest and generally better to start your red wine experience. Their flavors range from blackberries to plum and chocolate. Cabernet Sauvignons have a stronger flavor than the merlot and can embody flavors of vanilla, cedar, chocolate or coffee. Cabernets and merlots are best with beef because of the strength of their flavors. Pinot Noirs, on the other hand, have a cherry, raspberry or strawberry flavor and are best paired with salmon, poultry and vegetable dishes.
You may have noticed that I didn't mention any brands in describing these wines because each distributor has a different methodology of developing their wines thus the differences in tastes. The most important thing to note is which wines are best paired with which foods and to have a general idea of what they will taste like before you order.
I recommend hosting a wine tasting. Invite a few friends over that also have an interest in developing their wine palate. Each person can bring one bottle of wine. You can mix whites with reds or focus on white wines during one event and reds during the next. Wine is meant to be enjoyed not chugged so take your time, sniff the aromas and see if you can tell what flavors are present and begin sipping away. Be careful because wines can get your drunk pretty quick. If you get started now, you may find yourself introducing your family members to your favorite wine during the holiday season. Then, you can be considered 'the cultured family member.'
Let's start with the white wines.
The classic is a chardonnay because it is one of the more versatile wines and goes well with seafood. It generally has a fruity flavor that can range from apple and lime to tropical fruit depending upon where its produced and in what type of container. Some people find it a little dry when compared with White Zin. Riesling, my favorite, has a sweeter taste and goes well with spicy foods, poultry and pork. As the wines age, they embody more of a honey flavor coupled with their natural green apple, pear or lime flavor. The sauvignon blanc also goes well with seafood, poultry and vegetable dishes because of its grapefruit and grassy flavors.
Red wines tend to be more of an acquired taste because they are very dry and served at room temperature rather than chilled like white wines.
Merlot wines are the softest and generally better to start your red wine experience. Their flavors range from blackberries to plum and chocolate. Cabernet Sauvignons have a stronger flavor than the merlot and can embody flavors of vanilla, cedar, chocolate or coffee. Cabernets and merlots are best with beef because of the strength of their flavors. Pinot Noirs, on the other hand, have a cherry, raspberry or strawberry flavor and are best paired with salmon, poultry and vegetable dishes.
You may have noticed that I didn't mention any brands in describing these wines because each distributor has a different methodology of developing their wines thus the differences in tastes. The most important thing to note is which wines are best paired with which foods and to have a general idea of what they will taste like before you order.
I recommend hosting a wine tasting. Invite a few friends over that also have an interest in developing their wine palate. Each person can bring one bottle of wine. You can mix whites with reds or focus on white wines during one event and reds during the next. Wine is meant to be enjoyed not chugged so take your time, sniff the aromas and see if you can tell what flavors are present and begin sipping away. Be careful because wines can get your drunk pretty quick. If you get started now, you may find yourself introducing your family members to your favorite wine during the holiday season. Then, you can be considered 'the cultured family member.'
20 March 2009
Choose Your Business Legal Structure
Three out of four businesses fail in their first three years. Not because they are lazy or have no desire to succeed but often because they have not done the proper planning or acquired a toolbox for success. It is my desire that I can help at least one of those three businesses become a success story.
Let's start with the first decision that you should make as a business owner. What will be the legal structure of your business? Some of you may be established business owners, new business owners or thinking about starting a business. Regardless of your status, it is important to understand the different legal structures to ensure that have chosen wisely. I am not an attorney so this article is for information only. You should consult an attorney that specializes in working with business owners as well as a certified public accountant (CPA) regarding the legal structure of your business. No matter which option you choose, there will be legal and financial consequences that you must consider.
Sole proprietorship – this is a very common structure for smaller businesses. Essentially, the business and the individual operating the business are sharing assets and liabilities. All of the profits from the business are taxed as income for the owner. Although the owner has complete ownership of the assets, the owner is also personally liable for all of the debts incurred by the business.
Limited liability corporation (LLC) – this form of corporation allows business owners to protect their personal assets by creating a legal entity that is not associated with their personal assets. The business is able to incur debt and acquire assets separate from the business owner.
General partnership – this exists when two or more people come together and decide to share in the profits and losses of a business. A partnership agreement should be created to document the responsibilities and liabilities of each partner as well as a contingency plan in case a partner dies or wants to exit the partnership. Each partner is liable for the debts incurred by the business and the profits are taxed to each partner based on their percentage of ownership in the business.
Limited partnership – this is essentially the same as a general partnership except there are two types of partners: a general partner who has greater control over the business and limited partners who share in the profits and liabilities based on their investment percentage.
'C' Corporation – this form of a corporation establishes the business as a separate entity with its own rights, privileges and liabilities. The corporation is made up of a board of directors, shareholders and officers. You must file articles of incorporation with your local probate office and State of Alabama to be legally recognized as a corporation. Although this legal structure provides more legal protection for the owners, it is subject to more government regulation and profits can be taxed on the corporate and individual level.
'S' Corporation – this form is very similar to a 'C' Corporation except it allows the corporation's shareholders to only be taxed once - as a partnership or as a sole proprietor.
I hope this information was helpful. Don't forget, call your attorney if you have any questions.
Let's start with the first decision that you should make as a business owner. What will be the legal structure of your business? Some of you may be established business owners, new business owners or thinking about starting a business. Regardless of your status, it is important to understand the different legal structures to ensure that have chosen wisely. I am not an attorney so this article is for information only. You should consult an attorney that specializes in working with business owners as well as a certified public accountant (CPA) regarding the legal structure of your business. No matter which option you choose, there will be legal and financial consequences that you must consider.
Sole proprietorship – this is a very common structure for smaller businesses. Essentially, the business and the individual operating the business are sharing assets and liabilities. All of the profits from the business are taxed as income for the owner. Although the owner has complete ownership of the assets, the owner is also personally liable for all of the debts incurred by the business.
Limited liability corporation (LLC) – this form of corporation allows business owners to protect their personal assets by creating a legal entity that is not associated with their personal assets. The business is able to incur debt and acquire assets separate from the business owner.
General partnership – this exists when two or more people come together and decide to share in the profits and losses of a business. A partnership agreement should be created to document the responsibilities and liabilities of each partner as well as a contingency plan in case a partner dies or wants to exit the partnership. Each partner is liable for the debts incurred by the business and the profits are taxed to each partner based on their percentage of ownership in the business.
Limited partnership – this is essentially the same as a general partnership except there are two types of partners: a general partner who has greater control over the business and limited partners who share in the profits and liabilities based on their investment percentage.
'C' Corporation – this form of a corporation establishes the business as a separate entity with its own rights, privileges and liabilities. The corporation is made up of a board of directors, shareholders and officers. You must file articles of incorporation with your local probate office and State of Alabama to be legally recognized as a corporation. Although this legal structure provides more legal protection for the owners, it is subject to more government regulation and profits can be taxed on the corporate and individual level.
'S' Corporation – this form is very similar to a 'C' Corporation except it allows the corporation's shareholders to only be taxed once - as a partnership or as a sole proprietor.
I hope this information was helpful. Don't forget, call your attorney if you have any questions.
18 March 2009
How to host a fabulous dinner party in 5 easy steps
Step One: Set a date. This is the most difficult step because we are all so busy and often put these events off to later – a date that never arrives. Set a date and stick with it.
Step Two: Decide on a theme. Have fun with it. Haven't you always wanted to host a luau? What about a Moroccan feast? Choose your theme and go all the way – invitations, menu, decorations, music. You don't have to spend a fortune. Go online and get some ideas and then head to the dollar store and see what you find. Encourage your guests to dress up and let loose.
Step Three: Invite 5 people. Your guests will be the most important part of the event. You should invite one person that you work with, one friend that you rarely get to see, one person that you don't know very well but would like to get to know, your best friend and the person that would kill you if you didn't invite them. You can gage how much alcohol you will need by how well you anticipate this group getting along with each other. Don't invite a lot of people because you don't want to stretch yourself too thin trying to entertain and you want to create an environment where your guests can all converse and get to know each other.
Step Four: Prepare. Make sure everything is taken care of before your guests arrive so the party runs on autopilot. Don't strive for perfection. It may seem a little anal but create a time line of activities just in case your party gets a little lame.
Step Five: Have fun! Your guest will feed off of your mood. If you seem anxious, then they won't be able to relax. Make time to converse with everyone and try to find out one thing that you didn't know about each person. This opportunity may not come along very often and it will be over before you know it, so take time to smell the roses and enjoy yourself.
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