The lesson Mixon learned is that every tenant should know his or her rights as a renter, and what to do in the case of infringement. These rights vary by local jurisdiction, so check with your tenant association, municipality’s website, state attorney general, or local HUD office, says Ron Leshnower, About.com’s Apartment Living/Rental guide and president of FairHousingHelper.com.

With more people renting homes and apartments, it is important that you know your rights since landlord–tenant disputes are common. In fact, the Fair Housing Council of Orange County, California, reports that 22,000 landlord–tenant disputes are resolved there each year. Among the most common disputes are repair and maintenance issues as well as unreturned security deposits, says Bill Deegan, executive director of Renter Nation, an organization that advocates for renters’ rights.

Common Rights Every Renter Should Know
The right to your security deposit. While a lease may require a security deposit, you should expect to get that money back when you move out if you haven’t caused any damage beyond reasonable wear and tear, says Leshnower.

The right to a fair eviction. Tenants should be given ample notice—typically 30 to 60 days—to vacate the premises. If a landlord does not follow that jurisdiction’s eviction rules and shuts off utilities, locks you out prematurely, or fails to go through the sheriff’s office, it’s called a ”self-help eviction,” which is illegal.

The right to safe and habitable living conditions. Tenants have the right to live in safe and sanitary conditions, such as buildings that are structurally sound with running hot and cold water. If a hazardous condition such as fire damage makes your apartment uninhabitable, you may have the right to break your lease, says Christal E. Edwards, a Largo, Maryland-based attorney.

The right to privacy. In most states, landlords must give tenants notice before entering their apartments unless it’s an emergency, such as a serious water leak. For example, in New York, if a landlord enters your premises to make repairs without giving you notice, your rights have been violated.

Fighting Back If Your Rights Are Violated
Put it in writing. Make your landlord aware of the problem. Send a certified letter. Explain your grievance and indicate what portion of your lease the landlord has violated, says Edwards. Also indicate a date when you expect your grievance to have been addressed.

Seek HUD help. If you suspect a landlord of breaking the Fair Housing Act, contact the U.S. Department of Housing and Urban Development by filling out the housing discrimination form at www.hud.gov/complaints/housediscrim.cfm. HUD will
take on your case free of charge.

Get legal counsel. Hire a lawyer experienced with landlord–tenant issues plus Fair Housing law, says Akita M. Smith-Evans, an equal opportunity specialist investigator for the District of Columbia Office of Human Rights. Attorneys often charge $200 to $300 an hour, so it’s costly. A one-time consultation might help you determine what steps you can take on your own, or you may find an attorney willing to do pro-bono work to help you, Smith-Evans suggests. She also recommends contacting your local human rights or civil rights commission if you believe discrimination is involved.

Baptiste is not alone. According to a new report by Forrester Research and Shop.org, e-commerce sites continue to snag customers from brick-and-mortar stores, with online retailers having an average growth rate of 28% during 2010. Entrepreneurs are also shunning permanent storefronts for temporary establishments such as kiosks, pushcarts, and other short-term in-line venues. In fact, the temporary retail market is responsible for $8 billion in sales in 2010 and rose 14% in the first two quarters of 2011 over the year before, according to Patricia Norins, publisher of Specialty Retail Report, which looks at temporary retailers and provides resources for finding supplies, suppliers, and locations.

The U.S. retail vacancy rate is at 7%, according to CoStar Group Inc., offering entrepreneurs the opportunity  to take advantage of a weak real estate market and the short-term rental trend.  The national average annual cost of renting a 6,000-square-foot retail space in a strip center is $16.27 per square foot or $97,620 per year, compared to paying around $10 to $250 a day for booth rental at a flea market or a little more than $1,000 to house a pop-up shop for four weeks.

Success stories like eBay and Amazon prove business owners can do without a traditional store if they have a strong Web presence. Likewise, portable storefronts such as food trucks and flea markets are a great form of marketing since they go where the customers are, says Norins.

Here are five ways retailers can reach customers without making a long-term rental commitment and how some savvy business owners have made alternative storefronts pay off.

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1. Pop-up Shops: Embracing a Short-term Approach

Curvel Baptiste (Photo by Shayne Alexander)

The concept of pop-up shops: physical stores that retailers inhabit on a short-term basis, such as 30, 60, or 90 days. Some entrepreneurs use pop-up shops to test potential brick-and-mortar locations. Others, such as Juxster’s Baptiste, use them to occasionally connect face-to-face with their primary online clientele. Pop-up shops can be used to introduce consumers to a retailer’s brand, as well as create a sense of urgency among consumers.

To alert potential customers to upcoming pop-up shops, Baptiste sends e-mails to current customers, luring them with new products, low prices, and other incentives to check out the location. He also passes out fliers to attract local passersby.

Finding the right location has been one of Baptiste’s greatest challenges. “I do a lot of ground work, scouting out spots that no one’s paying attention to,” Baptiste says. He also approaches potential landlords with an abundance of cash since many are more likely to do business if you can pay the entire amount upfront, he adds.

Though pop-up shops demand a lot of effort for a little bit of time, in terms of stock and moving inventory, they can increase brand awareness and net impressive sales. “We’ve done anywhere from $1,000 to $1,500 in a day, [whereas] we’ve paid $1,300 in rent for the entire month,” Baptiste says.

Pop-up shops aren’t anything new, but the sluggish economy has given them a boost. “When we’re in good strong economic times, it is much more challenging to get a great location at a reasonable price,” says Norins. “But right now there are tons of location opportunities, and prices have come down.” As a result, many landlords looking to fill vacancies are willing to agree to short-term leases just to get someone in the door, giving business owners a golden opportunity.

2. Etsy and eBay: Pushing Online Marketplaces
There are countless stories of entrepreneurs starting on eBay and turning their hobbies into multimillion-dollar businesses. Some 25 million global eBay sellers accounted for nearly $62 billion in total sales volume in 2010. Sellers can list up to 50 items per month in the site’s auction format for free, or pay between $15.95 and $299.95 per month in subscription fees for online stores. With any of these options, sellers pay a commission for each sale.

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A venue ideal for sellers of handmade crafts, vintage items, and supplies is Etsy. With more than 11 million members and 800,000 active shops, Etsy sellers sold more than $357 million in merchandise in the first nine months of 2011. Etsy sellers pay 20 cents for every item listed and 3.5% of each sale made in exchange for a unique Web address to house their virtual marketplace.

The low startup costs are what prompted graphic designer Dana Osborne-Biggs of Smyrna, Georgia, to use Etsy to set up an online boutique and sell one of her handmade handbags on the site back in 2006. It sold within 24 hours, prompting her to expand her boutique, Urban Heirlooms.

The 46-year-old Osborne-Biggs scours flea markets, thrift stores, and yard sales for fabrics, and uses new leather to create handbags, cuffs, and her signature item: a wallet that uses an antique skeleton key as a clasp. Since 2006, Osborne-Biggs has sold more than 1,200 items, earning up to $27,000  annually and is projected to make $5,000 to $6,000 more for 2011.

One of the entrepreneur’s challenges in pushing her products was conveying their high quality, because customers couldn’t feel the fabric themselves. So she went online, including to Etsy forums, to read up on photography. “I’ve seen people take photos that obviously came from their cell phones; they don’t look professional,” she says.

As her photos improved and more people caught on to the novelty of the products, images from Urban Heirlooms were run more frequently on the Etsy home page. In July of 2010, Osborne-Biggs left her graphic design job, with the support of her husband, to focus on her Etsy store full time.

3. Food Trucks: Dining Transcends Destination

Barbara Burrell (Photo by Lonnie C. Major)

Barbara “Sky” Burrell is no stranger to the restaurant business, having owned Sky’s Gourmet Tacos in Los Angeles for the last 19 years. But when she decided to expand in 2010, she didn’t want to open another restaurant in a struggling economy. So she spent more than $100,000 to purchase a diesel truck and retrofit it with brand new kitchen equipment. This way, her soul-inspired Mexican food brand could serve customers within a 70-mile radius. “We knew the truck would not only pick up business on the street, but it would bring new business to the restaurant,” she says.

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Dana Osborne-Biggs (Photo by Quantrel D. Colbert)

Sky’s Gourmet Tacos lets customers know where the truck will be each day via Twitter. Burrell also cashes in on events, with customers guaranteeing $1,000 in sales to reserve the food truck for weddings and corporate affairs.

But the ability to travel comes at a cost. A truck will cost roughly $40,000 refurbished or $100,000 or more to retrofit a new one. In addition, specific licenses and permits are required for each municipality the food truck travels to, and can cost around $1,000 to $1,500 for each locality. It’s worth it, says Burrell, if the truck schedules multiple trips to each venue per month. “You have to be consistent when going into that particular space or it doesn’t pay off.”

The food truck generated about $100,000 last year. Not only has it contributed 30% more to the company’s bottom line since 2010, but Burrell received an extra jolt of publicity when she appeared on the Food Network’s Great Food Truck Race in the fall of 2011. “Now, we’re not just a destination,” she says. “We make the destination.”

The growing demand for food trucks is one of the biggest success stories in the restaurant industry. According to a 2011 survey from the National Restaurant Association, nearly 60% of Americans said they would visit a food truck offered by their favorite restaurant, up from 47% in 2010.

4. Flash Sales Sites: Maximizing Daily Deals

Shane and Shawn Ward (Photo by Shayne Alexander)

Twin brothers Shane and Shawn Ward, owners of footwear design company Shane&Shawn, were flying high until the recession hit in late 2008. “Literally month over month from September to October, our sales dropped about 35%,” says 39-year-old Shawn. When sales continued to fall at their New York boutique and wholesalers started ordering fewer products, “we knew we needed to cut our overhead,” he adds. In February 2009, the duo closed their store—saving the company more than $100,000 per year in rent—and focused their efforts online.

They explored e-commerce and a marketing strategy of featuring their merchandise on flash sale sites, which host temporary sales of designer merchandise at discounted prices. Sites such as BeyondtheRack.com and Shoe buy.com might feature Shane&Shawn products for two or three days. As with pop-up shops, the temporary nature creates a sense of urgency with the buyer, and the discounted prices often provide further motivation.

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“It’s a good way to expand our consumer base online because we’re reaching out to their buyers,” says  Shawn. Flash sites have also alleviated some inventory problems. With traditional sales agreements, you ship products to retailers, they take in the goods, and if the goods don’t sell, the retailers ship the products back to you, he explains. “So you have to carry some of that inventory you didn’t plan on and now you have to move it or put it on sale to get rid of it.” With flash sales, the Wards only ship products once they are sold, avoiding inventory pileup.

The twins use social media and online advertising to attract more people to their website. “When you have a brick-and-mortar store you’re going to get the walk-by traffic. When you’re a website, people have to find you,” explains Shawn.

Their efforts are paying off. After revenues dropped 40% in 2009, and an additional 5% in 2010, the company can now credit its online strategy with its turnaround. “We’re on a pace to grow our business 30% over last year,” Shawn says. “We’re seeing a lot of growth.”

5. Flea Markets: Bringing Retail To the Community

Todd Jones (Photo by Lonnie C. Major)

While flea markets are a great place to score deals on hard-to-find items, they can also be lucrative venues for entrepreneurs looking to build a brand. Just ask Todd Jones, owner of New York-based donut-making company Cuzin’s Duzin. The 52-year-old businessman made $100,000 in 2010, selling his sweet treats in these community-oriented venues.

The biggest selling point of flea markets is their flexibility, Jones says. “If one location doesn’t work out, I can change up and go someplace else.” But their temporary nature presents another challenge: introducing a product to a new audience with each change of location. To entice new flea market patrons, Jones gives out free donuts whenever he sets up a new shop. He also ensures that he is consistent with his branding so past customers can easily recognize Cuzin’s Duzin brand and signage. “Our colors have been the same since we started and people see me in my hat and my chef coat,” he says. “People expect a certain experience.”

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Since July of 2011, Jones has been selling his donuts from Dekalb Market, a flea market in downtown Brooklyn, New York, where small businesses sell from salvaged shipping containers for $50 to $75 per day. The market is open seven days a week from 8:00 a.m. to 10:00 p.m.

The portable nature of flea market venues also makes it easy for Jones to take his show on the road wherever there’s a demand. “I do weddings, corporate events, and even the bar mitzvah circuit,” he says.

Jones has been in the donut-making business for some 37 years, including a previous career stint at Dunkin’ Donuts. He says the idea to do miniature donuts provided a unique twist that differentiated him from his former employers. “We are going to be the White Castle of the donut industry.” 

GETTING STARTED
Ready to open an alternative storefront? Here are some tips for getting the ball rolling.

Pop-Up Shops:
You can set up shop in a vacant warehouse, storefront in the mall, or some other shopping center and negotiate a short-term lease. With high vacancy rates, landlords will be more agreeable. The PopUpInsider.com is one source for matching retailers with landlords as well as providing how-to info. You also can find spaces for lease or sublease, and commercial real estate brokers at CommercialSource.com.

Online Marketplaces: Before making your first sale, take the time to read all of the FAQs and tips on Etsy’s site. Check out Etsy.com/Forums and the “Open a Shop” section in Etsy.com/Help/Topics. Aspiring eBay sellers should read The Official eBay Bible by Jim Griffith.

Food Trucks:
A truck will cost around $40,000 to $100,000, depending on if you buy it refurbished or new. But first find out whether food trucks are legal in your city or if there’s a cap on the number of food trucks allowed. Like traditional restaurants, food truck operators need to have certain permits and licenses, and to pass safety inspections. Learn more from the National Restaurant Association at www.restaurant.org.

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Flash Sales:
To find a flash site oppor-tunity, contact venues such as MyHabit.com (founded by Amazon.com) and BeyondtheRack.com just as you would if you were trying to have your products distributed at a traditional retail outlet. Flash sales are most effective as a tool to deliver a unique customer experience. The idea of purchasing limited sales items is what drives consumers to such sites.

Flea Markets:
Locate a flea market to sell your wares at www.keysfleamarket.com, www.findaflea market.com, or www.americanfleas.com.

You can learn more about the industry at the National Flea Market Association’s website, www.fleamarkets.org. Also, download the Kindle e-book How to Make Money Like A Pro Selling At Flea Markets and Swap Meets by Allen Farlow.

“Getting organized before the end of the year allows me to see where my business is.” BLE, which serves as a satellite office for other small business owners, is an outgrowth of Clay’s personal experience. For years she worked out of her home, but occasionally needed a place to meet with clients, thus the birth of the “share an office” concept. The 48-year-old Clay now takes a more proactive approach to the tax-planning process in general, which she says is the secret to ensuring that the tax season runs smoothly. She reviews profit and loss statements and cash flow projections frequently, giving herself time to maximize her deductions and prepare for upcoming tax bills.

A lack of continual planning and preparation is the biggest mistake self-employed people can make, says Robbie Hampton, managing partner of Bishop, Hampton and Associates L.L.C., an accounting firm in Atlanta and Stockbridge, Georgia. Without planning, “There could be business tax deductions left on the table,” Robbie Hampton says. There could also be mistakes and audits. Between 2005 and 2009, the Internal Revenue Service increased the amount of hours it spent auditing small businesses by 30%, according to the Transactional Records Access Clearinghouse, a data-gathering organization at Syracuse University. By examining their tax situation before the end of the year, business owners can take steps to raise or lower their tax liability. For example, decreasing net profit will lower a tax bill.

On the flip side, business owners may want to increase the tax liability this year if they think they will make significantly more money next year. A pre-tax planning appointment with a certified public accountant can help you come up with strategies that directly affect your situation, says Robbie Hampton.

Inspired as a student by an article she’d read in BE, she wanted to learn about finance so she could better understand how to manage money and eventually pursue a career in finance. But knowing better and doing better are two different things. When the loan went into default, Harris faced a dilemma: either pay the nearly $5,000 bill or tarnish her credit report. For roughly two years she paid nearly $200 a month to fulfill her relative’s obligation. “When you’re just getting out of college, that’s a lot of money,” she says.

For Harris, the costly lesson proved invaluable. She says it taught her how to decline constant requests for money. “I share my personal story with my clients,” says the now 40-year-old financial adviser and owner of Harris and Harris Wealth Management Group L.L.C. in Upper Marlboro, Maryland.

Countless Americans compromise their financial future because of money mistakes they could have avoided. Some emerge more astute after averting a path to financial disaster, while others find themselves in seemingly bottomless money pits. In today’s unpredictable environment, you can’t afford to sleepwalk while managing your money. For example, in response to financial reform, a number of banks have increased their out-of-network ATM fees, started charging monthly fees for debit card purchases and paper statements, and eliminated free checking. Those costs add up, leaving you with less money for saving and investing. So that you can stay on course, here are five common money mistakes and ways you can steer clear of them or rebound from financial blunders.

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Mistake 1: Not creating an emergency fund
I know you’ve read in the pages of this magazine about the importance of an emergency fund to handle unexpected expenses such as car repairs or a furnace breakdown. But this is one smart move that can’t be overemphasized. Without this safety net, you’ll likely wind up paying for emergencies with a high-interest credit card. In fact, 66% of those with credit card debt report having difficulty saving, according to a survey by credit rating agency Experian and America Saves, a national campaign managed by the nonprofit Consumer Federation of America. Setting clear financial goals is the first step toward saving for a rainy day, says Ken McDonnell, the director of the American Savings Education Council, which works to make saving a priority for Americans. Here’s how to increase your odds of success:

Strive to save an amount equal to six or more months’ of expenses. While it may take you a couple of years to get there, six months’ worth of living expenses can provide a cushion for unplanned events such as major home repairs or short-term unemployment, McDonnell says. Have a portion of your paycheck—10% or more—automatically transferred to your rainy day fund.

Have a specific amount in mind. Calculate to the penny six months’ of living expenses. “If you don’t know how much you need to save, how are you saving?” says McDonnell. Once you’ve achieved that goal, focus on a different financial priority, such as investing.

Put convenience over return. If you don’t have an emergency fund, you shouldn’t spend too much time seeking high returns. Even though the average money market account yielded only 0.55% in October, according to Bankrate.com, “the purpose of emergency savings is to get cash now if an emergency arises,” says McDonnell. “It’s not to get an investment return.”

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Mistake 2: Becoming a human ATM for family and friends
According to a survey conducted by The Washington Post, the Kaiser Family Foundation, and Harvard University, 60% of African Americans—more than whites or Hispanics—said they or a family member had loaned money to family or friends. There’s nothing wrong with helping others. But if you lend money that should go toward your bills, emergency fund, and retirement accounts, you’re jeopardizing your financial well-being. If you find yourself putting the needs of others before your own:

Give, don’t lend. A litmus test to help you decide if you can afford to lend is to ask yourself if you need the money back. If the answer is yes, then you don’t have the dollars to lend. Although loved ones may have every intention of paying you back, “Think of the loan as a gift, because it’s unlikely that you’ll ever see that money again,” says Alexandria M. Cummings, a financial adviser with Polaris Wealth Management in Chicago. Also, learn to say “no.”

Lend from discretionary income. You should use only those dollars left over after you’ve made your regular contributions to your savings, emergency fund, and retirement plans, as well as paid all bills and expenses, Cummings says. Savings accounts and money from lines of credit should be off-limits. “What if you have an emergency the following week and you’ve already given the money out of your nest egg?” Cummings asks.

Offer a lesson, not a handout. There’s wisdom in the proverb, “Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.” There are better alternatives to becoming a human ATM. If a friend is regularly having trouble managing finances, buy him or her a personal finance book, suggest a free financial course or seminar, or provide information about a qualified financial professional. By doing so, you will help your friend develop money management skills and break the cycle of dependency.

Mistake 3: Mindless spending
Most cases of random spending result from being unaware of your daily spending habits, says Jesse Abercrombie, a Dallas-based financial adviser with Edward Jones Investments. To get your spending under control:

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Take the 14-day challenge. Track all expenditures in a notebook for at least two weeks. This will help you gauge the amount and type of purchases you make. Once you identify waste, “Don’t go cold turkey,” warns Abercrombie, citing the tendency to splurge later. Instead, cut purchases gradually until you adjust to reduced spending in specific areas.

Create SMART goals. Make sure every financial goal is Specific, Measurable, Attainable, Relevant, and Time-bound, Abercrombie says. In other words, you want to know the exact amount and length of time you need to save and that your goals are realistic.

Mistake 4: Failing to manage credit
As the economy recovers, credit card issuers are offering sweeter deals, says Gerri Detweiler, personal finance expert with Credit.com. A recent First Data Corp. survey revealed that consumers are using charge cards for more purchases and that credit surpassed all payment types in June. The fact is using credit without a plan to pay it off is a recipe for disaster. “A lot of times minimum payments are so low they lull you into a false sense that you can handle it,” says Detweiler. If you find yourself in over your head:

Create an accelerated payment plan. Credit card statements now let you know how much you have to pay to retire a bill in three years. “If you can afford that amount, make it a do-it-yourself project,” says Detweiler.

Use technology to help you. Smartphone apps such as Matthew King Software’s Debt Snowball Pro ($2.99) and Parallel Focus’ Pay Off Debt ($2.99) can help you track your spending and consistently pay down your debts.

Consider credit counseling. The magic number for debt reduction is three years, says Detweiler. “After that it becomes difficult—either motivation dies or life intervenes.” If you’re in too deep to climb out on your own within that time frame, find a credit counselor through the National Foundation for Credit Counseling (www.nfcc.org).

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Mistake 5: Not taking advantage of company benefits
Benefits make up about 30% of employee compensation, according to the Bureau of Labor Statistics. So a failure to use them leaves a lot of money on the table, says Michael Erwin, a spokesman for CareerBuilder. Open enrollment typically takes place in October. To make sure you get the most from your benefits:

Light the 401(k) match. Make sure you save enough through your employer-sponsored plan to take advantage of any company match, says ASEC’s McDonnell. Not only is the match free money, but “401(k) contributions offer tax advantages and are one of the best ways to build retirement savings.”

Consider lesser-known benefits. Employees frequently overlook flexible healthcare spending accounts, wellness benefits, tuition reimbursement, and banking programs. Some employers offer employees discounts on items such as personal entertainment, technology, and travel, Erwin says.

Don’t be afraid to ask. When you’re negotiating your salary for a new job, ask for benefits such as telecommuting and tuition reimbursement, suggests Dawn Fay, district president of Robert Half International, a staffing services firm. Telecommuting can save you commuting costs, and coursework may later “translate into more dollars and opportunities.”

Early on Bullock realized that HelloCHANGE.org’s message was sorely needed. More than 17% of high school students and 21% of African American adults smoke, according to the Centers for Disease Control and Prevention. Cigarette smoking contributes to 20% of all deaths in the United States, and the CDC estimates that more deaths are caused each year by tobacco use than from HIV, illegal drug use, alcohol use, suicides, murders, and motor vehicle accidents combined.

Winning a $100,000 prize from DoSomething.org, an organization that provides financial awards to activists under 25 making strides in volunteerism, helped finance Bullock’s message. “We go around speaking to schools, youth conferences, and concerts—anywhere young people are,” he explains. His efforts have had a galvanizing effect. When one tobacco company reportedly said it was looking to sell cigarettes to anyone with lips, HelloCHANGE.org mobilized more than 10,000 young people who uploaded pictures of their tobacco-free lips in protest.

According to Keep America Beautiful, a community action and education organization, tobacco products are the most littered item on U.S. roadways. In light of this, HelloCHANGE also emphasizes environmental activism and this year launched its Billions of Butts campaign, which asks volunteers around the country to pick up tobacco-related litter. “Our goal is to clean up 1 million cigarette butts in the U.S. while changing the behaviors of smokers,” Bullock says.

HelloCHANGE.org received $250,000 late last year from the Pepsi Refresh Project, a philanthropic effort to fund community projects. With the funds, the organization is aiming to reach 100,000 young people per year, and will launch a smoking cessation program that provides resources and counseling for young smokers who are trying to quit. Bullock is most proud of the anti-smoking efforts launched by those who’ve been inspired by HelloCHANGE.org and is also funding other young activists across the country who are starting anti-smoking campaigns. For example, earlier this year HelloCHANGE.org awarded $2,000 to a group in Pennsylvania that is filming an anti-tobacco commercial.
“Everyone has been impacted by tobacco,” says Bullock. “We want you to figure out why this is something you care about and turn that answer into action.”

Felder discovered firsthand what science and mental health experts have been saying for years. Happiness isn’t a consequence of your station in life; it flows out of how you decide to respond to life. “You will always have joyful times and sad times,” says D. Kim Singleton, Ph.D., a clinical psychologist based in Washington, D.C. But happiness is about maintaining a sense of peace despite those highs and lows, Singleton asserts. “You determine and create the happiness you want in your life.”

We have a genetic tendency to be happy or unhappy, says a study by psychologists at the University of Edinburgh and researchers at Queensland Institute for Medical Research in Australia. Our happiness is also affected by what happens in our lives and what we think of it. Many people attach happiness to perceived sources of security and comfort, such as money or marriage. But a Princeton University study shows that once life’s basic needs are taken care of, happiness and emotional well-being no longer improve with increased income. Moreover, a report published by the American Psychological Association shows that increases in financial wealth can erode happiness. For those who connect marriage to happiness, a study by researchers at the University of Zurich in Switzerland published in 2005 found that happier singles are more likely to get married. And if you think health dictates happiness, a 2005 study by the University of Michigan Health System found that people with severe illnesses and disabilities have about the same level of happiness as those who are healthy.

Getting to happy
Happiness may be challenging to find because most people may have been groomed to identify with or expect unrealistic, unsustainable characteristics of this seemingly elusive state. Is it excitement and exhilaration, or feelings of peace and satisfaction? Jon Gordon, author of The Seed: Finding Purpose and Happiness in Life and Work (Wiley; $22.95), says it’s more the latter. It’s not your circumstances that make you happy, he says, “It’s your perspective that makes you happy.”

Felder’s breakthrough came when she realized that waiting for happiness would lead to more bouts of self-inflicted depression. Her impatience to feel better led her to take certain steps that brought positive results.

Give in to your emotions. Allow yourself to indulge in feelings of anger, disappointment, or grief—but with a deadline. Felder gave herself a limited time to attend her pity party. “I say I’m going to rant and rave on this day. On the second day I’ll mourn it. On the third day I’m over it.”

Mentally shift your focus. We often allow ourselves to be held hostage by our thoughts, when the truth is our thinking is where we can exert greater control. Felder could have focused on her cancer as a problem, but she decided she would start looking for the positive in every situation. Yes, she had cancer, but her illness resulted in quality time with her mother, who spent three months with her, helping her recuperate. “In a weird way I’m grateful to the cancer because of the time that I had my mother to myself.”
Find a greater purpose. An extension to focusing on the positive can be cultivating opportunities to help others. Felder realized she didn’t have time to feel sorry for herself when she was serving others. So, in 2005 she founded Tamika & Friends Inc. (www.tamikaandfriends.org), an organization dedicated to prevention, support, and raising awareness about cervical cancer. Even today, whenever she feels down, she considers her greater mission. “I almost lost my life at 25. I’m grateful for all the things I’ve accomplished in the last 10 years.”

Griffin, 33, paid off all her consumer debts last year. She also surrounds herself with people whose values are similar to hers, such as her friend Jade Brawley, a Washington, D.C.-based schoolteacher who is working to improve her credit score, which is in the mid-700s. “Before I make a purchase, I plan for how I’m going to pay it off,” says Brawley, 32. For Griffin, having someone mirror her own money-management philosophy motivates her to reach her financial goals.

Achieving A+ credit can pay off in the form of lower interest rates, faster loan decisions, and easier access to capital. The most widely used credit score is Fair Isaac Corp.’s FICO score, which ranges from 300 to 850. “Excellent credit is whatever credit score is necessary to get the best deal that a lender has to offer,” says John Ulzheimer, president of consumer education at credit monitoring website SmartCredit.com. That number can vary not only by lender, but according to the type of loan a consumer is applying for. For example, lenders awarding 30-year fixed-rate mortgages might consider a 760 FICO score to be A+, while those offering 36-month auto loans might consider a consumer with a 720 score or above to have excellent credit, says Barry Paperno, consumer operations manager for myFICO.com. Currently, you’ll likely qualify for the best rates for any type of big-ticket purchase if you have a score of about 760 or above, experts say.

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According to Fair Isaac Corp., the number of people with excellent credit has decreased since the recession. In April 2008, 18.7% of the population had FICO scores of 800 and above, while in April 2010, only 17.9% had that distinction. Another 19.5% of Americans had FICO scores between 750 and 799 in April 2010. The median FICO score has been about 711 since April 2010, says Paperno. During that same period, those with low credit scores increased, with 35% of Americans having FICO scores below 650, up from 33.7% of Americans in 2008.

It’s easier to achieve excellent credit if you diligently manage your credit and don’t fall into any debt traps along the way. For those with a spotty track record, it typically takes between three and seven years to rebuild your score unless it’s a personal bankruptcy, which will take 10 years to fall off your credit report, Ulzheimer says.

For example, if a consumer’s credit score dropped to the 500s, it might take a couple of years to get the score to the 600s or lower 700s. However, it might take seven to 10 years for that same person to get up to 780 because enough time would have to pass for any negative information to fall off the credit report. “A 780 is an elite credit score, and if you want an elite credit score, you’ve got to have an elite credit report—which means you can’t have anything negative on it,” Ulzheimer adds.

The first step you should take is to scrutinize your credit report. “When you get a copy of your report and score, the report will tell you the main reasons your score’s not higher,” says Tom Quinn, credit score expert for Credit.com. You can request a free copy at Annualcreditreport.com. If the biggest factor is high credit card balances, start paying those down aggressively.

Likewise, if late payment is the culprit, your score will gradually rise as the late payment ages, provided you don’t continue to make more late payments and you keep low levels of credit indebtedness.

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Some credit improvement steps will have a greater effect than others:

Always pay on time. Paying on time is the single most important factor in having a good credit score. Even a single recently reported late payment can have a substantial effect on your credit score.

Know which loans count the most. Credit obligations aren’t all weighted the same. Revolving debt, such as credit cards, is considered riskier because of the likelihood of getting behind in payments than installment debt, such as mortgages and auto loans. As a result, a person with one installment loan and a lot of credit card debt might have a lower credit score than someone with multiple installment loans and little credit card debt. “I personally have over $800,000 of installment debt with a mortgage, a second mortgage, and a rental house,” says Ulzheimer. “But I have zero credit card debt, and my lowest credit score is 809. If I had that much credit card debt, my score would be in the 400s.” If you pay off a credit card, you may see a bigger jump in your credit score than if you finish paying off an installment loan.

Keep revolving debt to a minimum. Since the FICO score looks at the amount of revolving debt you have in proportion to the amount of revolving credit available, you can have an excellent credit score while maintaining loan balances, as long as you’re nowhere near maxing out your available credit. Although it’s best to pay credit card balances in full each month, the ideal amount to owe is less than 10% of the amount of revolving credit that you have available. If you’ve done the work to get out of debt, don’t make new balances just to try to move up the FICO ladder. But it’s a good idea to keep credit cards active by charging small amounts regularly and paying them off by the next billing date.

Keep new accounts to a minimum. While you may be able to save a few dollars with a 10% discount by opening that retail credit card, you can reduce your chances of having A+ credit since the presence of recently opened accounts can lower your score. “You should really think long term,” says Quinn. “Do I really need that 10% discount today when I’m going to be applying for a car loan in the near future and I want to make sure my credit is as good as it can be for that bigger purchase?”

Getting an A+ score requires habitual sound financial practices. “If you want a 780 or 800 FICO score, you better have perfect credit, which means no delinquencies, nothing negative, credit card debt that is at a very low balance, and a well-aged credit report,” says Ulzheimer. “If you can combine all those things, you’re in good shape.”

While sorting through opportunities with a franchise consultant, the 48-year-old quickly learned that franchise costs ran from about $50,000 to $200,000. She was particularly drawn to home-based opportunities because they tended to be on the lower end of the cost spectrum, which would allow her to start small and grow her business over time. Using about $80,000 in savings to cover startup costs that included the $35,000 franchise fee, Gill purchased a College Nannies & Tutors franchise that provides nanny and tutoring services in October 2008. She officially opened College Nannies & Tutors of Bethesda in February 2009. Her territory consists of the Maryland cities of Bethesda, Chevy Chase, Rockville, Potomac, and Cabin John, and also Washington, D.C.

In 2009, the business, based out of her Laurel, Maryland-home, grossed $131,000, and in 2010, it had nearly tripled its revenues to $348,000. This February, Gill signed a lease for outside office space and is now based in Bethesda, but she admits that starting from home proved to be a sound business strategy. “Working from home allowed me to accumulate funds and take my time to find the right location,” she says. Gill is one of many who have found success in home-based franchising. And while that success is never guaranteed and many such ventures fail, franchising remains a popular avenue for wealth generation.

In the 2011 Franchise Business Economic Outlook, PricewaterhouseCoopers (PwC) projects 784,802 franchised businesses to account for nearly 8 million jobs and $740 billion in economic output.  “Concepts that require less startup capital may be more attractive for some entrepreneurs in this continued challenging credit environment,” says Matthew A. Haller, a spokesman for the International Franchise Association in Washington, D.C. For that reason, black enterprise decided to highlight a pair of home-based franchise opportunities from our 40 Best Franchises for African Americans (see www.blacken terprise.com/lists/franchise-list), and detail how to maneuver pitfalls and identify the right home-based business for you.

FINDING OPPORTUNITIES, WEIGHING COSTS
If you’re looking for franchises that give you the option of working out of your home, start with service-based businesses, says Rick Bisio, a franchise consultant and the author of The Educated Franchisee: The How-To Book for Choosing a Winning Franchise (Bascom Hill Publishing Group; $18.95). Food service and product-oriented franchises typically require a storefront or office to house inventory and interact with customers.

According to PwC, franchises that offer personal services, which include education, healthcare, entertainment and recreation, laundry, and transportation, will see a 2.5% increase in the number of franchise units this year. On the other hand, those offering business services, such as employment help, tax preparation, and office administration may actually see opportunities decline since the number of units is expected to decrease from 92,937 units in 2010 to 92,714 units in 2011. To ensure that you’re dealing with a reputable franchise operator, ask for a copy of their Franchise Disclosure Document (FDD), a form that provides information about a franchise and how it is run.

Home-based franchises have lower build-out costs because you don’t have to create an environment where a customer can come and visit. You also have lower fixed-costs since you don’t have to pay for rent or utilities outside your home, or hire staff to man the front desk. That translates to a faster time to market.

STAYING FLEXIBLE
When Krista and Bill Roberts acquired their Abrakadoodle franchise in 2005, they chose the home-based route for the low overhead. But when Krista became pregnant, the couple realized the franchise could also provide flexibility, along with earning power. With Abrakadoodle, “you plan your day and you plan your schedule,” says the 37-year-old Krista of the business, which develops art education programs for children. “Some owners do a lot of summer programs and camps, while we’ve decided we’re going to focus on the school year programs because I want the summers off to be with my kids.”

Having spent $35,000 to purchase their initial territory in Bergen County, New Jersey, the couple purchased a second territory in neighboring Essex County in 2008. They ended 2010 with $134,000 and project to gross $200,000 by the end of this year.

But while Krista can take off in the middle of the day to take her children to the doctor, she still has to carve hours out to sell the benefits of her art programs to after-school program directors. At first it was difficult keeping 4-year-old Karly and 3-year-old Benjamin from having free reign in her office, but eventually the couple created work–life boundaries. “Our business is based in the basement of our home and we try to keep it that way,” says Krista. “Our kids don’t go in there. It’s the office and they know that when mommy or daddy are downstairs, they’re doing work.”

The Robertses also discovered that home-based businesses had a marketing disadvantage. Unlike storefront offices with signage and street visibility, home-based franchises have no physical presence to consumers. “Most home-based franchises will require that the owner do a lot of marketing and sales whereas if you’re in a retail-based location, customers come to you,” says Jania L. Bailey, president and chief operating officer of FranNet, a national franchise consultancy based in Louisville, Kentucky. In addition to doing direct mailings and advertising, the Robertses got around that challenge by using Facebook and Twitter to spread the word. They also sought out partners in well-trafficked locations to develop art programs with.

Despite the challenges, many home-based franchisees say the good outweighs the bad. “There’s a feeling of empowerment and confirmation that I can make a life for myself and my family, on my own and not be beholden to the limits and lack of fulfillment a corporate career often provides,” says 39-year-old Bill.

The Robertses also plan to eventually open an outside office once they find the right location, but like Gill, they are happy with the financial growth they were able to capitalize on thanks to the low overhead costs associated with a home-based business. “I think the biggest misconception about home-based franchises is that they can’t make the kind of money they need to make,” says Bailey. “A home-based franchise can be a very lucrative business if you pick the right one.”

Most students receive financial aid. The CollegeBoard reported that in the last school year more than $154 billion in financial aid was awarded to undergraduates. On average, full-time undergraduates receive about $11,500, including more than $6,000 in grants.

However, it takes some effort to get a better package if you’re not satisfied the first time around. Karen and Ronald Burks Sr. of Mitchellville, Maryland, have three children in college—Ronald Jr., a 21-year-old senior at Virginia Military Institute; Trá, a 19-year-old sophomore at Coppin State; and Brandolyn, a 19-year-old sophomore at Temple University. With a fourth child, 16-year-old Katherine, entering her senior year of high school this fall, the Burkses set out to get the best financial aid packages they could get. So when Karen, 49, saw Brandolyn’s $8,000 award from Temple, she said she had to “go back and explain” why they should increase her daughter’s financial aid. Her argument, which she put in an appeal letter: Fifty-one-year-old Ronald’s recent layoff left the family in need of more assistance. She also explained that she had two other children in college, and altogether, tuition for the three schools would total more than $75,000 per year. Though Ronald Jr. had received scholarship money to pay for most of his education, the family couldn’t afford to pay $32,000 to Temple and $11,000 to Coppin State. The financial aid office got back to the Burkses 30 days later. When the verdict came in, Brandolyn’s financial aid package, made up of scholarships, grants, and loans, increased to $13,000. Karen repeated the process for Trá, once again writing a letter asking for more money. About a month after she sent her appeal letter, Trá was awarded an additional $1,800, bringing his financial aid package to $6,700. “The schools saw the number of children we had in school, and our salaries, and they took all that into consideration,” Karen says.

When it comes to paying for a college education, “You are consuming a product,” says Gary Carpenter, executive director of the National College Advocacy Group, an organization that helps families plan for college. “And as a consumer you have to make a wise decision about what the best value is for the amount of dollars you’re going to pay.”
In today’s challenging economy, families must be particularly proactive to bring the costs down as much as possible. As the Burks family discovered, you don’t have to settle for the first financial aid offer you get. Here’s how to make your case for a larger college financial aid package for your student.

Tackling the Basics
In order to be considered for a financial aid award, a family must fill out a couple of forms. The Free Application for Federal Student Aid , or FAFSA, filed with the U.S. Department of Education, is used to calculate the amount of federally funded financial assistance for which your child is eligible. The FAFSA collects information about your income and financial situation, which determines your expected family contribution, or how much your family can afford to pay. The PROFILE, an application of the CollegeBoard, is used to calculate your child’s eligibility for institutional financial assistance at private colleges and universities, also by coming up with an expected family contribution, though the CollegeBoard uses a formula that’s different from the federal government’s. In both cases, the expected family contribution is subtracted from the amount of a college’s tuition to come up with a family’s aid eligibility. The FAFSA must be completed after Jan. 1, while the PROFILE can be completed for the 2012–2013 school year as early as Oct. 1, 2011.

Once these forms are completed and your child’s college applications have been submitted, he or she will begin receiving acceptance letters in the spring, along with award letters outlining the financial assistance the schools are willing to offer, says Carpenter. Students who choose early decision get access to a larger pool of aid. The aid can come from scholarships, grants, and loans. “The schools will look at the financial need and the merit of the student,” Carpenter says. Need-based assistance will depend on family income, while merit awards could recognize a child in areas such as academics, athletics, or music. Families can accept the entire aid package, a portion of it, or none of it, Carpenter adds.

Naturally, the more money you earn the less financial aid you’re likely to get. According to the National Center for Education Statistics, 85% of students whose parents made $20,000 or less received federal aid, while 53.2% of students whose parents made $60,000 to $79,000 received federal aid in the 2007–2008 school year, the most recent year for which statistics are available. The percentage drops to 39% of students whose parents made $100,000 or more. While merit awards aren’t based on need, they can be competitive. For example, the National Merit Scholarship Program, which awards scholarships for academic achievement, accepts more than 1.5 million applicants each year to come up with about 8,400 winners of financial awards.

If you’re not satisfied with the amount of financial aid your child has been offered by his or her first choice school, the first thing you want to do is compare it with the financial awards offered by other institutions. If there is a large disparity, “Go back and ask the school if they have all of the family’s financial information, because their award is significantly less than what other schools have awarded,” says Carpenter. Anecdotally, Carpenter has seen cases where schools realized they made an error when calculating the amount for which a family was eligible. He’s also seen cases in which schools have been willing to adjust an award upward for desirable students. Be ready to show documentation (such as an award letter) of the other awards. If that doesn’t work, the next step is to provide additional information that paints a better picture for financial aid administrators of why your family needs additional assistance.

Making Your Case
“There is recognition both by Congress and by the colleges that the FAFSA is a one-size-fits-all form that doesn’t capture every specific circumstance,” says Mark Kantrowitz, publisher of scholarship and financial aid sites Fastweb.com and FinAid.org and author of Secrets to Winning a Scholarship (CreateSpace; $9.95). As a result, a process called “professional judgment” was established that takes place when a family believes that an unusual financial circumstance was not adequately addressed by the FAFSA. Professional judgment could be requested, for example, if a family’s income is largely made up of a one-time bonus, meaning it’s not reflective of the family’s day-to-day financial situation. It could also be requested if a parent has had work hours reduced or has suffered a health challenge that’s led to steep medical bills. “You’re asking the college to review that particular circumstance and potentially make adjustments to the financial aid award,” Kantrowitz says.

There has been an increase in families seeking professional judgment for special situations that have caused a decrease in income in recent years, says Palmira Wakhisi, assistant director for financial aid at Morehouse College. Among the circumstances cited by Morehouse applicants are layoffs, divorce, separation, illness, and the death of a parent, Wakhisi says. The Atlanta-based college awards students up to $10,000 more  on average in such cases through a Restricted Scholarship Fund established to fill in the gaps between a family’s financial aid offer and what the family can ultimately afford, Wakhisi says.

There doesn’t have to be a reduction in income to get a financial aid adjustment. Families can also point to circumstances not reflected on the FAFSA that affect their financial situation such as eldercare expenses, the costs of caring for a special needs child, or a natural disaster that caused home damage. Lifestyle choices don’t count, so don’t expect a financial aid adjustment just because you live in an expensive state, for example.
Once you decide to appeal the financial aid decision, call the college and ask about the procedure. “Some colleges have a form they want you to fill out. Others will say, ‘send us a letter in which you summarize the unusual circumstances,’” Kantrowitz says.

If a school’s financial aid office refuses to adjust the award after the professional judgment, there is nothing more you can do at that school. At this point, you should  look for other sources of aid to bridge the gap such as traditional part-time employment, or applying for a volunteer repayment program after graduation.  “If you appeal to the president of the university or the U.S. Department of Education, you will get nowhere because Congress delegated authority only to the college financial aid administrator,” Kantrowitz says. But you can repeat the process with another school, which is why it’s important to apply to several institutions, experts say. Says Hurley, “As a consumer you’re looking for the best deal as well as the best education.”

At 3, he jumped into a lake at a family reunion and almost drowned. His father saved him, but his fear of water plagued him even throughout the swimming lessons his parents later insisted he take. “Some of my best friends still pick on me because I cried so hard during my first few lessons,” the 35-year-old Muhammad recalls. Had his parents allowed him to succumb to those anxieties, Muhammad would never have become a five-time World Cup Swimming champion and four-time US Open champion—having broken 11 American records. Overcoming the fear of water not only gave Muhammad confidence to swim; it allowed him to realize a talent that would have gone unnoticed.

Today, Muhammad is urging kids—and their parents—to overcome their fears of water and learn how to swim through Born to Swim (http://borntoswimbook.com), a children’s book that chronicles his own experience. He’s hoping his message will reach many of those who would benefit from it. There are roughly 3,000 drowning deaths in the United States each year and according to a 2010 study by USA Swimming, the governing body for the competitive sport of swimming in the U.S., nearly 70% of African American children have little or no swimming ability, with parental fear being the most prevalent reason. But as Muhammad learned, managing a fear such as swimming can provide mental and behavioral tools for how to overcome many other fears in life. “Over the course of a few weeks, you can go from being deathly afraid of being in the water to swimming across a pool,” he says. “That’s a dramatic shift in your mental framework.”

For many people, before they can tackle the task of managing their fears, there is the challenge of recognizing it. “Fear can show up as procrastination, de-motivation, disorganization, a lack of time management, and other forms of avoidance,” says Nicole Cutts, Ph.D., a clinical psychologist, success coach, and owner of Cutts Consulting L.L.C. and Vision Quest Retreats in Washington, D.C. Many people don’t even realize fear is what is keeping them from achieving a particular goal, she explains.

Hesitancy in accomplishing projects may be a clear indication of fear. And because fear is internalized, an individual can create elaborate stories in their mind to validate their apprehensions. For example, a person starting a business may fear that failure will lead to homelessness, starvation, and even death. But the only way to overcome fear is to face head-on the challenge it creates, says Margaret L. Rollins, M.S., a wellness and energy coach and owner of Well Part Coaching L.L.C. in Alexandria, Virginia. “You have to acknowledge it and be willing to move through it in order to get to the other side,” she says.

Acknowledging your fears helps keep apprehensions in perspective, adds Cutts. “Often, when you look closely at those fears, you find out how irrational they are.”

Of course, not all fears are unfounded. “Sometimes fear is healthy and adaptive, telling us to stay away from things that we should stay away from,” says Cutts. Other times it may be the result of discouraging or hurtful experiences that have taught us valuable lessons about what we should avoid. In those instances, it is valuable to find inspiration in the stories of those who have succeeded despite what may have seemed like overwhelming odds, suggests Rollins.