Documenting—on paper—how much money comes into your home, how much flows out, and how much you save is the first step toward tracking down those disappearing dollars.

Creating a budget can also help to uncover the source of financial problems. But according to the National Foundation for Credit Counseling, only 40% of American households use a budget. The rest take a hit-or-miss approach, never really knowing whether they’re living within their means, in need of a better-paying job, or in a position to rein in their debts.

The good news is budgeting isn’t difficult. One thing it does require is a deep look into your current financial picture and more than a bit of discipline. To show you how it’s done, black enterprise found three subjects in need of financial organization and paired them with advisers to help them draft workable budgets.

Photo by Rayon Richards

Chanel Graham worked two jobs to put herself through college, but six years after graduating she is still struggling to make ends meet. “I’m stabilizing after years of being in debt,” says Graham, co-founder of I Kissed Dating Hello, a website. With a monthly income of about $3,250 (she earns $250 each month from freelance writing jobs), Graham says she’s “frustrated by the constant feeling of not being able to pay the bills.”

With about $600 in savings, Graham pays $1,300 for housing and $100 for transportation every month. Credit card bills, food expenses, and miscellaneous spending cost her $1,450. As a devout Christian, she gives $350 per month in tithes to her church. Graham doesn’t have a budget, but she recently came up with a “plan” to save $500 a month.

Graham says, “I’m also trying a new system of putting $100 a week on a second bank check card that I can use for lunch and miscellaneous spending.” Graham, who is engaged, is saving for her wedding, which will be held next summer. She projects that it will cost about $5,000. “I would also like to go back to school, but I’m hoping to pay down my credit card debt first,” she adds.

Jessica Broadnax-Lawrence, a family financial counselor with Consumer Credit Counseling Service in Chattanooga, Tennessee, says Graham first needs to figure out what portion of her income should be applied to paying down debt. “Then she should budget enough to cover flexible expenses,” says Broadnax-Lawrence, who also urges Graham to save while paying debt.

“It’s better to pay double the required minimum payment amount on credit card balances, because interest accrues over time,” says Broadnax-Lawrence. “This will help her pay down her principal balances. While saving is always a good idea, weigh the interest rates of the debt and savings, and decide where your money should go.”

Depositing $100 on a bank card each week isn’t the best way to help Graham balance her spending, says Broadnax-Lawrence. Instead, she should set aside cash in the amount that she plans to spend. This way, Graham can avoid incurring bank fees or overdraft charges.

After subtracting expenses from her income, Graham ends up with $300 a month—not enough to meet her wedding savings goals (which would require $416 per month). “To be able to save enough money for periodic emergency expenses, she needs to revise her wedding budget,” says Broadnax-Lawrence.

Graham’s budget should limit household expenses to roughly 35% of her total income, and debt payments to about 20%. Other expenses (including transportation) shouldn’t exceed about 20% of total income, and savings should be 10%, according to Broadnax-Lawrence.

Because freelance income fluctuates, Broadnax-Lawrence says Graham should treat that money like petty cash and focus solely on her base salary when budgeting. “To get to solid budgeting numbers, she should use her salary only, and focus on saving the rest,” she advises, “or use it to continue paying down her debt.”

Photo by Chris Hamilton

Najla Slowe understands the value of budgeting, and she knows firsthand what can happen when people let their finances unravel. As an administrative assistant and marketing consultant for a bankruptcy attorney, she works about 35 hours a week and brings home $1,800 a month. She’s tried to map out a budget for herself in Microsoft Excel, but admits that she “rarely looks at” the spreadsheet.

With two small children, Slowe is having a hard time making ends meet. “I’m in debt,” says Slowe, whose student loans are now in deferment. “My biggest financial challenge is finding a way to live within my means, while searching for a job that will increase my salary.” Slowe says she hasn’t put much time into the latter.

With no savings, Slowe spends $760 per month on housing and $260 on transportation, including gas and auto insurance. She spends about $650 on other living expenses. Her children are enrolled in after-school care that costs $264 per month. On the bright side, Slowe has no credit card debt. Even so, she’s living pretty close to the edge.

There’s little wiggle room in Slowe’s current situation, namely because moving into a less expensive apartment isn’t an option. “If I get a cheaper apartment, I may end up in a bad neighborhood,” she laments. “As a single mom, that would be pretty dangerous.”

Doug Robinson, owner and financial adviser at DouglasBradley L.L.C. in Bel Air, Maryland, says Slowe’s biggest budgeting issue is not spending, but income. With $21,600 a year coming in, and two young children to raise on her own, Slowe earning even another $5,000 a year in income could have a marked effect on her  budget, Robinson says. He advises Slowe to focus her energy on searching for a job with a target annual salary of $28,000 or more. She should also pursue some form of child support.

“If she wants a better-paying job, she has to get out there and start looking,” says Robinson. “She should also set clear financial goals and create timelines to stick to.”
Slowe might also consider sharing living space and housing costs with another single mom (perhaps someone she meets through church or a community group) in order to reduce her expenses. “Her No. 1 expense is housing, but she shouldn’t move into a bad neighborhood just to save a few bucks a month,” says Robinson.

The arrangement could last for just a year or two—enough time for Slowe to gain some financial footing. “It doesn’t have to be forever, but if sharing space and increasing her income helps her achieve her goal of financial independence by 40, then she needs to get started with these strategies today.”

Najla Slowe
Age: 33
Location: Atlanta
Family status: Single, with two children
Primary budgetary goals: “I want to organize my bills, plan for the future, and achieve excellent financial standing by my 40th birthday.”

Ideal Budget for Najla:
Based on her current income, here’s what Najla Slowe should ideally be spending, maximum, on each expense:
After-tax monthly income: $1,800
Housing costs: $630 (if she were to find a roommate to share expenses with)
Transportation costs: $260
Other expenses: $360
Childcare: $260
Monthly savings: $180
Monthly surplus would be: $110

Key suggestions: Find a roommate with whom she can share housing expenses; look for ways to increase annual income.

Photo by Greg Platcha

Kasheen and Regina DeMoss financial goals mimic those of most Americans. They want to pay their monthly obligations and still have enough left over to cover vacations, new cars, college educations, and retirement. Unfortunately, the pair isn’t making ends meet on their monthly income of $7,200. Kasheen works in transport operations and Regina is a customer support manager.

“I think we’re doing OK, but according to financial guru Suze Orman, we’re doing horribly for our ages,” says Regina, who admits that even when she budgets for simple needs like groceries, she regularly spends over her target amount. The pair enjoys two vacations each year, and shops for clothing and other accessories once a month.

The DeMosses have no savings, but Regina has $8,000 in her Roth IRA. They spend about $1,500 per month on housing, $700 on transportation (one car payment plus insurance and gas for both autos), and $1,000 on monthly credit card bills. Other recurring monthly expenses come to about $1,000, including food; and the family spends about $240 a month on grooming (hair and nails).

“Our youngest son will be 16 next year and will need a vehicle, and my car has more than 100,000 miles on it,” says Regina. “He’ll be attending college in three years, and we don’t have any money saved for that.” The couple’s 20-year-old son is working.

Sheila Chesney, president of Chesney & Co., in Sheldon, South Carolina, says the DeMosses should kick off their budgeting strategy by focusing on one financial goal at a time, and then figure out how to achieve it.  “It’s almost impossible to save for retirement and college and new cars at the same time,” Chesney says. “That’s how people get into trouble.” Right now, for example, she says the couple should be focused on saving for retirement by starting a retirement plan for Kasheen, and contributing regularly to Regina’s existing plan.

Kasheen & Regina DeMoss
Age: 43 (Kasheen) and 41 (Regina)
Location: Raleigh, NC
Family status: Married with four sons, two of whom live at home (ages 15 and 20)
Primary budgetary goals: “We want to save for new cars [for Regina and the couple’s youngest son], plan for our son’s college, be ready for retirement, and do a better job of investing in a 401(k).”

Ideal Budget for Kasheen and Regina:
Based on their current income, here’s what Kasheen and Regina DeMoss should ideally be spending, maximum, on each expense:
After-tax monthly income: $7,200
Housing costs: $1,500
Debt/credit card payments: $1,440
Other expenses: $1,440
Savings: $1,020
Potential Monthly surplus: $1,800
Key suggestions: Carefully assess all expenses; tell son to earn cash for his car and college expenses; cut back on vacation spending; put bulk of monthly surplus into retirement savings.

“They need to figure out the maximum they can contribute to each, and get it done,” says Chesney. She suggests setting up a plan that will allow them to replicate the income they now earn, a combined $86,000 annually, when they reach age 65.

The next step is to inject some frugality into the family budget, which is being stretched to the limit by vacations, luxuries like designer clothing, and a son who isn’t contributing financially. “You give your kids the best advantage when you teach them how to earn their own money at a young age,” says Chesney.

Unless there is an immediate need to replace Regina’s car, Chesney says the DeMosses should forgo the new car goal and instead funnel the money into their retirement accounts and college savings (the latter of which could also get a boost if their son were to get a part-time job). “There’s nothing that says parents have to pay for college,” Chesney points out. “They should encourage their son to start researching grants, loans, and scholarships, or attending a more affordable community college first. If he does well and saves some of his own money, he could transfer after two years.”

Chanel Graham

Age: 27
Location: Brooklyn, NY
Family status: Engaged
Primary budgetary goals: “I would love to have a solid plan in place, and to relieve myself of the constant anxiety I feel regarding my finances.”

Ideal Budget for Chanel:
Based on her current income, here’s what Chanel Graham should ideally be spending, maximum, on each expense:
After-tax monthly income: $3,250
Housing costs: $1,225
Debt/credit card payments: $700
Food, transportation, and other expenses: $700
Monthly savings: $325
Monthly surplus: $300
Key suggestions: Continue to pay down debt; approach wedding savings realistically; budget for emergency expenses.

Selling wasn’t an option. “My property lost too much value during the market downturn,” the 40-year-old says. “If I were to sell, I would have had to come to the closing table with $30,000 or $40,000 out of my own pocket. That wasn’t going to happen.”

Like Newsome-Hill, more than a quarter of U.S. homeowners owe more on their mortgage than their house is worth. It’s a position that leaves owners with few options. But Newsome-Hill had a plan. She decided to become a landlord. She first investigated property management firms. These operations handle the marketing and maintenance on rental properties, typically in exchange for 10% of the collected monthly rent, plus a month’s rent for filling vacancies. She did the math and decided that route was too expensive.

Instead Newsome-Hill hired a local real estate agent for a fee equal to one month’s rent. The agent helped her set a rent based on the average rental rate in the area, advertised the listing in the Atlanta Journal-Constitution and on Craigslist, and stuck a “For Rent” sign in the front yard. The latter proved to be the most effective marketing tool.

The agent also vetted potential tenants using a third-party background check firm. “The onus was off of me to screen everyone who called, and pore over applications,” says Newsome-Hill, who only spoke with the applicants who passed muster with the agent. She also called their previous landlords to discuss payment history and the tenants’ treatment of the property.

Once her first tenant was selected, Newsome-Hill worked with her agent to draw up a one-year lease (the typical length, although month-to-month and multiyear are also used). The agent also gave her a “walk-through” sheet that she gave to the tenant to fill out before moving in. (Samples of both documents can be found online.)

To handle maintenance and repair issues with the rental property, Newsome-Hill pays $400 a year for a home warranty contract that covers the townhouse’s heating and cooling equipment, appliances, and other major systems. “When something goes wrong, I make a phone call and they send someone out to handle it,” says Newsome-Hill, who is content with her choice to rent, rather than sell.

“Overall it’s been a pretty good experience because I have reliable tenants who haven’t damaged my home,” says Newsome-Hill, “and who have managed to pay the rent within a reasonable timeframe every month.”

Seventy-five percent of U.S. cities saw home prices decline during the first quarter of 2011, according to the National Association of Realtors. During the same period, U.S. apartment vacancies dropped to the lowest level in almost three years, as the stagnant home-buying market created more rental demand, reports New York-based real estate research firm Reis Inc.

This has created somewhat of a “perfect storm” for homeowners who don’t want to sell but who have to move. “If they can’t sell their home within 60 or 90 days, I talk to them about renting,” says Tanya Waxler, broker-owner at real estate firm UKeepCommission in Lakewood Ranch, Florida. “As soon as that ‘For Rent’ sign goes up, owners start getting calls.”

To ensure a smooth transition from homeowner to landlord, Waxler says tenant screening is a must. She even advises owners to call the potential renter’s current neighbors for feedback. “Find out if they leave their trash cans on the curb for weeks or play loud music at 2 a.m.,” says Waxler. Credit checks are also critical, she says, as are phone calls to references, including past landlords and current employers. This background check is crucial because depending on your state or local laws, evicting a tenant can be costly and tedious. “Don’t hand over the keys to your house until you’ve done a thorough check.”

Once the new tenants are in place, keep an eye on your property. “You can’t just move them in and forget about them. You have to manage the tenants,” says Waxler. “A quick visit will tell you if they’re smoking in your house, or if they have three dogs.”

With the right tenants mailing rent checks on time, homeowners can benefit from having someone else pay off their mortgages until the market recovers. “The rental market is hot right now,” says Waxler. “It’s a good alternative for owners who have to move, and who don’t want to play war with their wallets.”

Identify your tolerance for risk.
Just about everyone’s perspective on risk has changed over the last few years, thanks to major market shifts and the economic downturn. Prior to December 2007 (when the recession officially began), investors were accustomed to a stock market that generally moved in a positive direction. “Risk was a nebulous concept,” says Roderick Barnes, CFP, an Ameriprise financial adviser in Huntersville, North Carolina. After all, “how could you get an accurate gauge on your risk tolerance if you’d never experienced a real loss before?” asks Barnes. “We no longer need to wonder, since the downturn offered a painful reminder of the true meaning of risk,” he says. “We now know that it is possible to lose money by keeping your money in the stock market. The more you take on, the more exposed you are to potential losses. Risk has been clearly defined, thanks to the recession. The key is to clearly understand your time frame, goals, and investment objectives,” says Barnes. “What is your comfort zone? What can you lose and still have peace of mind?”

Diversify.
According to Kasper Mingo, a MassMutual financial professional with HF Financial in Charlotte, North Carolina, more than 90% of Americans have the majority of their assets in one or two asset class accounts. That’s way too many eggs in one basket, says Mingo. “Proper asset diversification—and not just stock diversification,” he stresses, “will spread the inherent risk of high tax liabilities and longevity risks over different asset classes to reduce these threats to your financial independence.” The point is, stocks and bonds are great, but—where appropriate—investors should hold a basket of other assets as well. These include commodities, real estate, and money market instruments.

Keep your emotions in check.
Many people invest with their hearts, rather than their heads. Train yourself to use solid, rational reasoning based on good research. And while the markets are clearly emotionally charged, that doesn’t mean your own investment strategy should be, says Steven Siebold, the Palm Beach, Florida-based author of How Rich People Think. Keep feelings out of the equation, and the investment should not only be more sound, but also more financially viable. “Try to switch over to logic-based thinking,” says Siebold, “and leave your emotions by the sidelines.”

Don’t try to be a market timer.
Sticking to a sound, diversified investment philosophy that doesn’t rely entirely on the whims of the market helps you avoid losing too much by changing strategies too late or too soon. “Still licking their wounds, many jittery investors pulled all their assets out of the stock market just as it hit bottom two years ago,” says Barnes. “In the time since, while they’ve remained on the sidelines, equity markets have bounced back significantly. In some cases, that recovery has represented missed opportunities to recuperate much of what was lost.” Bottom line: A University of Michigan study found that, over a 30-year period, market timers averaged an annual return of 3.28% whereas long-term-minded investors averaged 11.83% per year.

Identify opportunities for yield.
For those investors who aren’t quite ready to venture back into stocks yet, Barnes says it may make sense to dial up the risk tolerance beyond low-yielding Treasuries and look into bonds that offer higher yields. “The search for yield doesn’t have to be a giant leap,” says Barnes, who adds that investors can find opportunity in the middle of the quality spectrum. “Certain investment-grade corporate bonds and higher quality, high-yield bonds offer greater yields than Treasuries, with better compensation for inflation risk.” Dividend-paying stocks provide another option. The stocks of financial services and utility companies are the traditional choices for investors interested in dividends, but it’s wise to keep your options open. Dividends on common stocks are not guaranteed, while preferred stockholders receive a fixed rate of return, notes Barnes. If you are interested in adding an array of dividend-paying stocks to your portfolio, look for mutual funds that focus on “equity income,” “dividend income,” or “growth and income.”

Have a clear purpose and defined expectations.
Quite often, people believe they are investing to earn a “maximum” return, or to beat the market—neither of which is true, says William Pitney, president and CEO of San Francisco Bay Area financial advisory firm FocusYOU. He suggests laying out a clear investment purpose and expectations before jumping into the market. For example, if you are investing for retirement, plan for where your portfolio needs to be 20 to 30 years in the future. You will likely live in retirement 20 years or more, so your portfolio must outpace inflation so you can afford to live. Reacting to short-term market fluctuations, no matter how dramatic, will only hamper your long-term success. “Most people have a very personal reason for investing that usually has to do with more than just the money,” says Pitney. “For some, it is about achieving financial independence and maintaining their own sense of dignity and self-worth. For others, it is about expressing love for their family and community.”

Look at investment fundamentals like you do weight-loss.
As anyone who’s tried to shed pounds can attest, the basics are simple to understand, says Pitney, but not easy to achieve. After all, everyone knows how to lose weight by eating healthier and exercising more. Putting that advice into action isn’t always as easy as it sounds. Similarly, says Pitney, “everyone knows that to succeed at investing you need to buy low and sell high, diversify your holdings, and focus on the long term. However, study after study shows us that investors do the opposite and it has cost them dearly.” Similar to a good diet plan, investors should create a plan that sets clear goals, monitors progress, and connects with an outside support group if the do-it-yourself approach isn’t working. If you need help breaking bad habits, don’t be shy about reaching out to a professional financial planner.

Remember, it’s not how much you can make, it’s how much you get to keep.
As anyone who’s tried to shed pounds can attest, the basics are simple to understand, says Pitney, but not easy to achieve. After all, everyone knows how to lose weight by eating healthier and exercising more. Putting that advice into action isn’t always as easy as it sounds. Similarly, says Pitney, “everyone knows that to succeed at investing you need to buy low and sell high, diversify your holdings, and focus on the long term. However, study after study shows us that investors do the opposite and it has cost them dearly.” Similar to a good diet plan, investors should create a plan that sets clear goals, monitors progress, and connects with an outside support group if the do-it-yourself approach isn’t working. If you need help breaking bad habits, don’t be shy about reaching out to a professional financial planner.

Remember, it’s not how much you can make, it’s how much you get to keep.
Take on a risky investment and you may gain a huge windfall one year, and then promptly lose the same amount the following year. Your friends may have been impressed with that doubling of your money, but in the end your portfolio comes out even. “You wind up gaining nothing,” says Ty J. Young, president and CEO at Atlanta financial services firm Ty J. Young Inc. “In the current environment, we’re recommending that investors cover their downsides by making sure their initial capital outlays are protected against losses. That’s the best way to ensure that you keep as much of your money as you possibly can.”

Worry about what you can control.
Let’s face it. The war in Libya, tsunamis and earthquakes in Japan, and Greek debt riots are beyond your control. Sure they affect the markets, but are they really cause to jump around from one investment opportunity to the next? Young doesn’t think so. “These global issues can profoundly affect your retirement planning and money, but you can’t control them, so don’t even attempt it,” says Young. “Instead, make sure that at least 50% of your assets are protected against losses [if you are 50 years old, or 30% if you are 30, etc.], using vehicles such as FDIC insurance, Treasury bonds, and guaranteed insurance contracts.” 

“Toward the end of his life, my dad wasn’t able to make decisions regarding his healthcare,” recounts the now 29-year-old New Yorker. “There were some issues regarding his mental stability, and it would have been good to know what his end-of-life wishes actually were.”

Hall is rare. Studies suggest African Americans are largely unaware of living wills and their value. According to a recent report from the National Center for Health, just 13% of African Americans have a living will in place compared with 32% of whites. “Living wills are just not discussed very much,” says Alfred Osbourne, financial adviser with Ameriprise Financial Inc.in East Meadow, New York. “Plus, as a whole, no one wants to face the fact that we’re all going to pass away; that makes people afraid to discuss these types of issues.”

Her father’s lack of a living will put stress on Hall and the rest of her family. None of them were sure how to best approach her father’s care as the end drew near. “There was no support system in place and nothing to refer to for information on what his wishes really were,” says Hall. “That made a challenging situation that much more stressful.”

Not wanting her future children to one day deal with those challenges, Hall attended a legal counseling seminar and then drew up the document with the help of a prepaid legal firm. “As the head of household, I want to make sure everything is in place,” says Hall, who now has a 2-year-old son, Xavier. “I never want my loved ones to be worried or concerned about my wishes if I was ever unable to speak for myself.”

How To Begin
Naturally, the idea of coming up with directives that could be used to dictate your end-of-life care will seem daunting or foreign, but financial adviser Christopher Gandy of Water Tower Financial Partners in Chicago says the process is fairly straightforward. Consider the project a vital part of a solid financial plan, he says.
Start by envisioning a scenario where you are unable to make your own decisions. Consider exactly how you’d want your healthcare handled. If you were in a coma, for example, at what point would you ask to be removed from life support? Or, if your life is being sustained by a feeding tube, would you want the device removed so that you could pass on? These issues are important, notes Osbourne, because without a directive, doctors will be forced to prolong your life.

During your living will brainstorm, try to avoid emotion. Instead focus on how you would want your doctors and loved ones to handle these important decisions on your behalf. Get your goals and wishes down on paper, and then share them with an attorney or another qualified individual who can make your desires “official.”

Getting family members involved can help relieve some of the stress of drafting a living will, says Osbourne, and it may also prod your parents, brothers, sisters and others to draft their own living wills. And “don’t just throw your living will on a shelf to gather dust,” cautions Gandy. Once an attorney makes the document legal, be sure to review it annually to be sure it still reflects what you want.

Hall rests easy knowing that doctors will follow through on her end-of-life wishes. She now spreads the word about the value of living wills to friends and family. “A lot of people just don’t think about what could happen,” Hall says. “A living will is an effective way to gain peace of mind about what will take place should you become unable to vouch for yourself.”

Baker

It’s been nearly a decade since investors enjoyed the skyrocketing values of stocks like Pets.com and Kozmo.com only to discover they were sitting on dot-com bombs. When the dot-com stock boom imploded, investors shied away from Web-based companies, and funneled their remaining funds into “safer” bets such as utilities and blue chips.

Many investors are still living with the legacy of the early 2000s, even in the midst of the Web 2.0 movement that showcases emerging technologies and applications like social networking, blogs, wikis, and user-generated content. The category was one of the worst-performing in 2010. But recently, venture capitalists have begun pouring money into a few bellwether dot-coms. In October, for example, video calling startup Wham!Inc netted $3 million in a Series A round of venture capital financing, while Buddy Media raised $23 million to build a brand-focused Facebook management platform.

Bobbie D. Munroe, financial planner and owner of Atlanta-based Fraser Financial thinks it’s time. “Technology stocks remain undervalued because people are scared of them,” she says. “The good news is that when people are scared of something, it’s often a pretty good idea [to buy].” Munroe notes that you can accumulate tech stocks right now for a price lower than what many analysts believe they’re worth. For a broad exposure to technology, Munroe suggests investors look at Vanguard Information Technology ETF (VGT). Among actively managed technology mutual funds, Munroe likes Buffalo Science and Technology (BUFTX).

Lee Baker, certified financial planner and president of Apex Financial Services Inc. in Tucker, Georgia, says if history is a guide, another technology boom could be right around the corner. “The question is, what subsectors are the best bets?” he asks. “That remains unanswered at this point.”

When getting back into technology, Baker cautions investors not to load up on any one sector. “Rewind back to the dot-com boom,” he says. “Most individual investors got burned because their portfolios lacked diversification.” He recommends that his clients limit technology holdings in their portfolios to no more than 5% of their assets. He sees technology ETFs (exchange-traded funds) and tech-oriented mutual funds as particularly solid options for those who lack the time necessary to conduct in-depth research on their investment choices. One option Baker likes in particular is the Technology SPDR (XLK), an ETF that offers broad-based exposure to the entire technology sector at a low expense ratio. “All sectors of the market have been beat up over the last two years,” says Baker. “Now is a good time to do some exploring, and to include technology as part of that process.”

One cautionary note to investors looking at the new crop of dot-com contenders comes from Dock Treece, president of Treece Investment Advisory Corp. in Toledo, Ohio: Don’t get sucked into the cyclone of news-breaking venture capital investments. Treece sees technology as a good investment choice for 2011, but maintains that “as an individual investor, you never want to invest money that you can’t afford to lose. Strive to create a diversified portfolio, with Web 1.0 and Web 2.0 stocks as part of that larger picture.”

Treece expects tech stocks to gain some momentum from the overall economic recovery that took hold in late 2010 and that is predicted to continue into 2011. Fraser Financial’s Munroe is also bullish, standing behind her aggressive investment stance for the technology and dot-com sectors. “It’s hard to predict the future, but one thing we know for sure is that tech has changed the way we do everything,” she asserts. “This is enough proof that technology remains a good bet when incorporated into a portfolio the right way.”

Do’s and Don’ts of Investing in Technology in 2011

• Do pay attention to venture capital trends, but don’t get too wrapped up in them
• Do strive to create a diversified portfolio that includes a broad range of stock sectors
• Don’t invest money that you can’t afford to lose
• Don’t expect to get in on the ground floor of initial public offerings that will skyrocket to triple-digit prices (like so many investors did in the ’90s).
• Don’t neglect to do due diligence before putting money into a Web 2.0 company

Unfortunately, this “set it and forget it” approach doesn’t fly when it comes to insurance. Whether you have life, health, automobile, homeowners, renters, boat, or business insurance, pull out that thick file once a year to make sure your coverage is still adequate. You’ll want to consider lifestyle changes that took place over the previous 12 months, and even ferret out some cost savings.

“Things change,” says Mark Pizzi, president and chief operating officer at Columbus, Ohio-based Nationwide Insurance. “Most people don’t realize how even minor changes in their daily lives can affect or be affected by their insurance coverage.” Finishing a new basement off in your home, for example, can increase the home’s value and, in turn, affect your homeowner’s insurance coverage. New additions to the family, marriage, and divorce can also influence health, life, and automobile insurance, and should be discussed with your agent if they occur.

Cost Savings Lost
Ignoring your annual insurance checkup may prevent you from saving money. Insurance is a highly competitive industry in which companies are always developing incentives to attract new customers. It’s worth having an annual conversation with your agent to make sure you’re up to speed on offerings. Take the vanishing deductible, for example. Introduced by Nationwide earlier this year, the program drops your deductible $100 for each year of safe driving. Allstate has a similar discount for drivers who have had no accidents or violations in the past five years. These are optional features that the typical customer may not be aware of—unless he or she saw the commercials on television, or talked to an agent.

Ideally, your agent (or agents, if you work with multiple companies) will conduct the annual review and pick up on any discrepancies, changes, or cost-savings opportunities you’re eligible for. If you don’t hear from your agent, pick up the phone and ask for a thorough review.

It’s a simple process but far too many people don’t think about it until they have a claim. That’s when they find out something wasn’t covered. To avoid this trap, educate yourself about your current policy and how to add or remove coverage based on your individual needs.

Shopping Around
Joel J. Ohman, a certified financial planner and founder of InsuranceProviders.com in Tampa, Florida, says annual insurance reviews can also ward off “sticker shock” that occurs when that quarterly, biannual, or annual premium invoice arrives. “If you’re confused by the higher rate, ask your agent about it,” says Ohman. “If you’re not satisfied with the reason, start shopping around.”

Taking a proactive approach to your annual insurance review provides peace of mind. The exercise can also save you money—do you really need personal property coverage for that diamond jewelry you sold two years ago?—and prompt you to shop around for better options.

“In any given year, we’ve found that 40% of our customers benefit in some way, adding more coverage, requiring less coverage, etc., from an annual review of their policies,” says Pizzi. “That translates into a significant number of consumers who would win by having their agents spend some time with their policies every 12 months.”

But the clock was ticking. While the entire family grieved over James Brandon Young’s sudden death, funeral arrangements needed to be made, life insurance companies had to be called, and a newspaper obituary needed to be written and paid for. Realizing that her sister wasn’t in any shape to manage those details, Bell and other family members rose to the occasion.

“We started contacting funeral homes to see how the process worked and how much it would cost,” says Bell, who estimates that the total funeral tab came to $9,000. It took only a few calls to realize there were vast differences in funeral home practices. Some morticians wanted deposits of 50% and demanded that the balance be paid 24 hours before the service—even if the family was still waiting for a life insurance check. Others tried to pressure Bell into buying “a lot of fancy stuff,” she says, including high-end caskets that cost as much as $10,000, and extras including embalming. “We had to weed through everything that was being thrown at us to find someone who could meet our needs.”

Bell selected a funeral home that seemed more compassionate than the others and that required no upfront payments once it received direct confirmation on the phone with the life insurance company that her nephew’s insurance payout would cover the full cost. She ran into more difficulty, however, when she attempted to sign off on decisions for Bridgett, who was too grief stricken to help with the planning process.

“Insurance companies and employers don’t want to talk to anyone but the next of kin,” says Bell, who discussed with her sister whether her son would be buried or cremated. “Our family tradition is burial but, of course, we asked his mother what she wanted.”

Once funeral arrangements were made, Bell and a few other family members wrote Young’s newspaper obituary. The first version included names of relatives, information about the deceased, and a personal message from his mother. The total bill for publication came to about $600, but the family wanted to spend no more than $200. “We had to cut it down to get within budget,” says Bell. “During the editing, a lot of my sister’s ideas fell by the wayside.”

Lower costs with dignity
Bell’s family isn’t alone in tackling the high cost of burying a loved one. But even in the midst of their grief, the family took a prudent first step by calling several funeral homes to compare prices.

Although many people choose funeral homes because of proximity or family tradition, the purchasing of funeral services is actually a business transaction that should be part of a family conversation, says Josh Slocum, executive director of the Funeral Consumers Alliance. “In any area of the country, prices at funeral homes differ by thousands of dollars for the same services. There is no justification for such excessive prices.”

To help keep costs down and honor a loved one as well as family or religious traditions, consumers have several options.

Plan ahead. “Just the way we teach our children how to compare prices at an auto dealership or to examine credit card interest rates,” says Slocum, “we need to equip them to make end-of-life decisions.” Planning ahead doesn’t mean prepaying a funeral home, however, which Slocum and other consumer advocates discourage. Instead, you can open a “pay on death” account at any bank, and choose a friend or family member as the beneficiary. But it does mean discussing with family members what you want.

Know your rights. To protect and educate consumers, the Federal Trade Commission has established the Funeral Rule, a federal law, which, among other things, requires that funeral directors offer consumers itemized price lists and not just prices for packages of services. Other rights include the option of buying a casket (which can be purchased online), elsewhere and not being charged an extra handling fee by the funeral home. You also have the right to comparison shop by phone, as Bell’s family did. Slocum says the FTC is not sufficiently enforcing the Funeral Rule, however. So, consumers must educate themselves.

Know your options. The traditional funeral with a casket, limousines, memorial service, and flowers is the most expensive. As of 2006, the latest figures available, according to the National Funeral Directors Association, the median cost for traditional funerals is $7,323—excluding the cemetery, monument or marker, flowers, or obituary. A lower cost option that can still provide a dignified farewell for a loved one includes cremation and omitting some of the costlier aspects of a traditional funeral, such as limousines or a high-end casket. Although cremation costs less, you should still shop around. Cremation prices can differ by thousands of dollars. Keep in mind that a casket isn’t needed with cremation unless there will be a viewing. Even then you can opt to rent a casket. Direct cremation and direct burial, in which the body goes to its final disposition quickly, are the lowest cost options. But even for those who want to have the deceased present at the memorial service, costs can be lowered by avoiding embalming, which Slocum says is almost never necessary, and by purchasing an inexpensive casket. According to the Casket & Funeral Supply Association of America, wholesale casket prices range from less than $300 to more than $8,000.

Pick up the Phone

Here’s an action plan to follow if you’re handling funeral services and burial plans for a loved one:

Call a licensed funeral director.
Consider asking friends and family for referrals. Be sure to get price estimates from several directors.

Call your loved one’s employer immediately.
Ask about the deceased’s benefits and any pay due, including vacation or sick time, disability income, etc. Ask if you or other dependents are still eligible for benefit coverage through the company. Ask whether there is a life insurance policy through the employer, who the beneficiary is, and how to file a claim.

Call the life insurance company.
Locate the deceased’s insurance policy. Call the agent or company and ask how to file a claim. Usually the beneficiary (or the beneficiary’s guardian, if a minor) must complete the claim forms and related paperwork. You’ll need to submit the death certificate and a claimant’s statement to establish proof of claim. Remember to ask about payment options. You may have a choice between receiving a lump sum and having the insurance company place the money in an interest-bearing account from which you can write checks.

Call Social Security and other organizations.
Notify Social Security at the time of the death. If your loved one was covered, the spouse or dependents may be eligible to receive certain payments or benefits. Also call any unions or professional or service organizations your loved one belonged to. He or she may have had life insurance or other benefits through these organizations.

Once these phone calls have been made, gather important papers, such as deeds, business agreements, tax returns, bank statements, earnings statements, birth and marriage certificates, military discharge papers, Social Security card, vehicle registration, loan payment books, and bills. You’ll need these to file a final tax return and settle the estate.

Source:  Funeralplan.com

One exhibit features a life-sized figure of Madame C.J. Walker. (Source: Margaret Croft/The News-Star)

A valuable showcase for African American history is getting an upgrade, and new digs

If you’re planning a trip to Louisiana this year, there’s a special gem that you won’t want to miss as you make your way through the Pelican State. Known as the Northeast Louisiana Delta African American Heritage Museum, the destination opened its doors in 1994 and has been preserving and promoting African American heritage ever since.

The museum is part of The Louisiana African American Heritage Trail, which begins in New Orleans, spans through south and central Louisiana, and ends in northern Louisiana. The museum holds the honor of being the only stop in Ouachita Parish that is part of the trail, which highlights sites of cultural and historical importance for the state’s African Americans.

According to Lorraine Slacks, museum director, the 6-room facility covers a lot of ground for it small size, providing tours, seminars and research for visitors, residents and college students. Current exhibits feature the African American pioneers who helped to settle Monroe and the displays that show the affect African Americans had on the community at large.

Life-sized figures of abolitionist Frederick Douglass, cosmetics millionaire Madame C.J. Walker, and noted educator Mary McLeod Bethune greet visitors as they walk into the museum’s front door. Artworks by Don Cincone, Bernard Menyweather, and Agnes Hicks are on display in the building, which “disseminates and interprets information about the lifestyles, value and rich heritage of African Americans to the community,” says Slacks. “We are working hard to make the museum a repository and permanent home for some very important pieces of African American culture.”

In 2011, that goal will become even more attainable for the museum’s board of directors, who are anxiously anticipating a new facility and upgrade for an important piece of African American history. A local contractor is currently heading up the $2.6 million project, which is being funded in part by a state grant, with an additional $500,000 from the Monroe Convention and Business Bureau.

When completed by April 2011, the museum’s new digs will comprise a 14,000-square-foot, single-story building with ample room for traveling exhibits, interactive displays, research and education. Also on site will be a café that will serve authentic African American cuisine. “We are really looking forward to having a nice, large space to work in,” says Slacks, who is enthused by the progress so far. “Our contractor is right on schedule.”

In the meantime, Slacks says the original museum will remain open for business and ready to serve the community and visitors from across the nation. “Through the museum, we are able to enlighten the community by means of education, displays and information that tell about African American history,” states Slacks, “and how the 15 parishes in Northeastern Louisiana were built [around] that history.”

While the Northeast Louisiana Delta African American Heritage Museum awaits the completion of its new location, the facility will be open to the public Tuesday – Saturday from 10am to 4pm, and on Sundays by appointment. Admission is $2 per person.

Learn more about the museum by visiting Nldaahm.com or calling (318) 323-1167 . You can also find more information about The Louisiana African American Heritage Trail at Astorylikenoother.com.

Life Work Synergy's Lisa Whaley uses a variety of tools to manage her life as entrepreneur, wife and mother.

Lisa J. Whaley knows a thing or two about balancing life, work, and family. She has a husband, two college-aged daughters (one of whom lives at home), a teenage son and a 19-month-old granddaughter. She’s also the president of Life Work Synergy L.L.C., a Woodbridge, Va.-based coaching firm, a technology consultant, and an avid exerciser who squeezes her workouts in before her workday starts, and her last client call of the day.

So how does Whaley manage all of these responsibilities and still find time to read a book, enjoy a cup of tea, or spend time chatting with her girlfriends? “Technology has allowed me to create a good work-life equation,” says Whaley. “I’m able to intermingle work and life activities (such as running her business on her BlackBerry while shuttling her son back and forth to school) pretty effectively thanks to technology.”

Here are eight ways that you can create balance in your life with the help of technology:

Handle small stuff on the fly: Whaley’s workday is consumed with phone calls, email communications and face-to-face meetings with clients. The rest of her day is made up of doctor’s appointments, school meetings and time spent watching her granddaughter. She handles small tasks on the fly– instead of letting them pile up for the next day – with her Blackberry. “I can check my email from anywhere and address client needs and other pressing issues quickly,” says Whaley.

Write it Down … Digitally: Up until a couple of years ago, Whaley lugged around a 6” X 9” Daytimer, which housed her calendar, lists, and notes. Today, all of those important documents are stored on her BlackBerry, and synced regularly with her office computer. With this tool, Whaley can manage every corner of her life (business, family and play), including the household groceries. “This is so much better than using the old paper lists on the refrigerator,” she says, “which you can easily forget when you’re walking out the door.”

Invest in a wireless card, if you need one: Depending on your occupation and the time you spend away from the office, a wi-fi card for your laptop could pay off handsomely. “If you find yourself driving around town a lot, looking for a Starbucks network to connect to,” says Whaley, “then the $60-or-so a month spent on a wi-fi card could be a big time-saver for you.”

Use online photo-sharing: Relatives who live more than a few miles away want to see pictures of you, your children, your pets and pretty much anything else that keeps them “close.” Keeping up with these requests used to be impossible for Niloufar Molavi, chief diversity officer at PricewaterhouseCoopers in New York, who discovered Kodak’s Ofoto as a good way to easily upload photos and “share them with family around the world,” says Molavi. “They can’t be here all the time, but they still get to watch my kids grow up. It’s an invaluable tool.”

Create an Internet calendar and share it: Using an online service such as Google Calendar, you can keep everyone in your life informed about your schedule, and about his or hers as well. “I share a Yahoo calendar with our childcare provider,” says Heather Cabot, editor at Yahoo! Web Life in New York. “I can update her schedule with notes about kids’ activities, play dates, vacations, etc. This is an easy way to keep track of her hours and for us both to plan ahead.” If you have teens, Cabot says, “have them add their own activities and commitments to the family calendar.”

Pay your bills online: Do away with the envelope stuffing and stamp licking once and for all and sign up for your bank’s online services. This will allow you to check balances (from your desktop, laptop or PDA), transfer funds and pay bills much faster than the traditional way. “We did a recent study that found that nearly 70 percent of people use online bill-pay, up from 4 percent in 1995,” says Cabot. “Of those people currently using the service, 45 percent said they couldn’t live without it.”

Use digital tools for dinner: Avoid dinnertime stress by subscribing to a recipe planner newsletter or blog. NoTakeOut.com, for example, is a free daily e-mail that lists all the ingredients you need and a game plan for fast, easy meals. Other sites that list helpful ideas for quick meals include MomsWhoThink.com, FoodNetwork.com and KitchenDaily.com.

Do your grocery shopping online: Technology can also help you find your way out the weekly grocery-shopping grind. “I’m a big fan of the Fresh Direct iPhone app,” says Cabot. While not every grocery chain has a mobile phone app, many do have sites where you can shop and order items for delivery. There are also sites that cater to specific customer groups, such as Diapers.com for new parents. “As a mother of twins, I wish I had used this service,” Cabot says. “It would have saved me a lot of trips to the market!”

As you integrate some or all of these technology tools into your own life, Whaley says the first step should be to establish clear boundaries for their use. You shouldn’t be texting clients while driving down the highway, for example, or checking email when you should be spending one-on-one time with your family. “Without boundaries, technology can quickly become intrusive,” says Whaley. “Use it for productivity, and then set it aside when life calls.”

The fact that job hunting is faster online doesn’t make it any easier. Anyone who expects his or her resume to successfully navigate an employer’s “elimination pipeline,” must avoid these eight common mistakes:

Putting information, photos and videos on MySpace or Facebook that you wouldn’t want your new boss to see: The Internet has become the catchall for personal photos, videos and information, none of which should be accessible to potential employers. “Hiring managers know enough to get connected into Facebook,” says Dennis Nason, CEO at recruiting firm Nason & Nason in Coral Gables, Fla., “and you don’t want them reading about how you ‘got wasted last night.’ Keep those pieces of information – and the related photos – private.”

Building landmines into your online communications: If your job history dates back 50 years, focus on the last 20 years on your resume (and address the rest when you get the job interview). If you’re not willing to relocate or travel, keep it to yourself. And if you’re a smoker, don’t advertise it. “The fewer landmines you build into your online correspondence,” says Rick Gillis, a Houston-based job search and employment trends expert, “ the better chance you’ll have of getting the job interview.”

Including your physical address on your resume: Job seekers who are looking for jobs outside of their immediate region shouldn’t post their physical addresses on their resumes, advises Gillis. “Not only is it very 1980s, but putting your address on there can work against you,” he says. “Someone will look at your resume and say, ‘that’s too far away.’”

Not mirroring the job posting with your resume and cover letter: To ensure that your resume lands on the right desk, include keywords (from the original job posting) in the document. Mirror the original help wanted ad closely, says Gillis, who advises job hunters to use a smaller font (8-point, for example) to include keywords (each followed by a space) at the bottom of their resumes, “for the sole purpose of getting your document recognized by the recipient’s scanning and filtering software.”

Forgetting to follow up soon after sending your first correspondence: You wouldn’t make one sales call and expect the orders to come pouring in, so why would you send out a few resumes and sit back to wait for the job offers? After sending a resume, Gillis suggests following up a few days later with a quick email that says, “Hi, I’m just checking on the status on the resume I sent over.”

Sending hundreds of resumes out to jobs you really aren’t interested in (ie. not reading the job description): Just because you can hit thousands of employers with a few clicks of the keyboard doesn’t mean you should. “The mass mailing approach makes you feel you’ve accomplished something, but it’s also relatively unproductive,” says Nason. A better strategy is to find a company that you’d like to work for, check out the “now hiring” section of its website, and/or search the national job boards for openings at that company. “Then locate a specific hiring manager,” says Nason, “and direct your correspondence to that individual.”

Hitting “send” before you spell check and review the correspondence: There are no second chances to review documents or correct errors once you’ve hit “send” on a piece of online correspondence. “The speed at which information is delivered online is faster than your mind works, so you must be careful about what you’re sending,” says Nason, who advises all job candidates to thoroughly review their spelling, grammar and sentence structures (or better yet, have someone else check it for you), before hitting send. “Once it’s gone, you can’t pull it back and fix it.”

Focusing too much on your own goals and aspirations: If you really want to impress future employers, says Gillis, don’t tell them that your job objective is a “rewarding and challenging career in a progressive, exciting industry.” Instead, tell them that you sold $3 million in products and services over the last 12 months for your current employer, and show how you can deliver that same value to a new company. “Employers want to know what you can do for them,” says Gillis, “not the other way around.”

RESOURCES

BlackEnterprise.com/Careers

YAHOO! HotJobs

JobCentral

Simply Hired

CareerBuilder

Monster

Indeed

Jobing