DeSean Jackson of the Philadelphia Eagles in his handout picture (Image: Getty)

With a month of the 2011-2012 NBA season already in the wind and the rest of it in doubt, it’s become painfully clear to many athletes that even their paydays are not guaranteed and that broke can be right around the corner from rich. Unfortunately, lockouts and how to keep your money during lean times were not at the top of most athlete’s list of priorities before they signed that professional contract. With that in mind, BE Next lists a number of prerequisite moves and options any future franchise player, or even bench warmer, should consider before putting pen to paper on that pro deal.

You Are Still Getting a Pay Check

Just because you’re worth millions, doesn’t mean you aren’t going to be getting a paycheck. Malik Shareef, attorney and sports agent who represents Ryan Williams of the Arizona Cardinals and Isaac Redmond of the Pittsburgh Steelers, amongst others, breaks it down. “A football player gets 17 game checks and then that’s it. Those 17 game checks have to last for 52 weeks. A minimum deal in the NFL is $375,000, they’re getting 22 grand a week.”

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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.”

“Participating in black expos was a great way to introduce our company and sell our products to our target demographic of African American women,” says Meagan, 27, who teamed up with her husband, Darrius, 32, to produce the Magic City Black Expo in 2009. Although other cities in Alabama have sponsored black expos in recent years, Birmingham’s last one was in 1996.

Adds Darrius: “We also realized that there were other black-owned businesses just like ours that needed the same outlet and platform to gain exposure and sell their products and services.”

Since last year, the daylong event has taken place during Black History Month. It showcases the products and services of black-owned and -operated businesses and offers education, empowerment, and entertainment activities.

During its first year the expo had more than 60 exhibitors, mostly local, along with more than 2,000 attendees. In 2010, they added about 30 exhibitors and the 2011 event had more than 150 vendors. This year, TheCASHFLOW and 100 Urban Entrepreneurs  sponsored a business pitch competition and awarded three $10,000 business grants to winners. The 2012 expo is expected to pull in 10,000 visitors.

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Tickets for the expo cost $6 for adults, and children under 12 are free. The Peaces charged exhibitors $400 for a 10-by-10 booth and $300 if they bought space early. Any money they make from the expo goes toward paying for the next year’s event. This year, they made $23,500.

Between 2002 and 2007, Birmingham’s black-owned businesses increased 113.3%, from 6,964 to 14,855. One of those business owners, Cedric Threatt, a Birmingham-based children’s book author and owner of Ahava Publishing L.L.C., has had a booth at every Magic City Black Expo and says his annual book sales have increased steadily with each event.

“I would say anywhere between 15% to 20%. It was just good to have another avenue because I got to meet people who otherwise would have never heard of me,” says Threatt, adding that he met educators who invited him to schools to do presentations for students.
Participating in the expo also proved fruitful for Birmingham spa owner Tiaesha Chestang, who was able to track the 15% sales increase she had in 2010 from a discount flier she handed out at her exhibit booth.

“I even get people who come up to me in the grocery store who say, ‘I remember you from the black expo.’ [The expo] was really a truly amazing experience,” says Chestang, owner of Purify Wellness & Spa.  “The outpour from the black community was amazing. I had no clue that this could happen.”

HOW THEY DID IT
•  Do your research. Darrius says they Googled “How do you present an expo” and downloaded e-books that outlined tips such as securing a venue, gaining support from local government, and attracting exhibitors and sponsors. Next, they attended several black expos around the country, taking copious notes, connecting with people behind the scenes, and asking event organizers for advice on how to get started.

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•  Hit the pavement. Organizing the first Magic City Black Expo was truly a grassroots effort. They had no idea where the black-owned and black-operated businesses were located in Birmingham, so they drove around and asked. Many small businesses were home-based and therefore not visible, Meagan noted. They also received referrals from other black businesses, friends, and family members. The Peaces passed out fliers, purchased radio and TV advertisements, and used e-mail and Facebook to promote the event. They also cold-called, e-mailed, and visited local black-owned businesses to get them to sign on as exhibitors.

To help ensure diversity among exhibitors, they permitted only two of the same types of businesses within a given category to participate, allowing a wider array of businesses. Darrius explains. “The only criteria we had was that they be licensed, legitimate businesses,” he says.

• Barter. Meagan and Darrius relied on their own resources and family and friends to make the initial investment of $3,000 for the first expo, which had operating costs totaling $10,000. The couple and volunteer organizers also relied on their negotiating skills, bartering for things such as media airtime. 

In addition to her job as an office manager at a tax consulting firm, where she now earns an annual salary of $53,000, White makes almost $5,000 bartending part time. She used to run a check-cashing business in Jersey City, New Jersey, for five years. But her entrepreneurial aspirations came to an end in 2009 when she was forced to file for bankruptcy to pay off $90,000 in business loans and personal and business credit card debt after being robbed. “One weekend I pulled out $50,000 on three different cards to remain in business,” says White, recounting her efforts to keep the business afloat.

White, who at one time had a credit score of 710 before filing for Chapter 7 in December 2009, quickly rebuilt her credit from the 500-range after the bankruptcy was finalized in April 2010 to 680 today. Since then, she has focused on rebuilding her credit by taking out and repaying two small $500 loans from the Intersect Fund in New Brunswick, a nonprofit that lends to small businesses that have experienced financial hardship to help them rebuild their credit. She also has a secured Visa card with a $300 limit, which she makes sure is paid in full each month, and she pays her $330 car note on time.

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White still hasn’t built any solid wealth, though, and she has a savings goal of $20,000, which she hopes to reach by next summer to eventually purchase a condo and reopen her business. She maintains a budget at Mint.com and, based on her monthly living expenses, she should have a surplus of $400 each month. However, the figures don’t add up. “My savings account has been at about $7,000 for the last five or six months, White says. “I’m 41, I have no kids. I should have money in an account even if I never spend it.”

In addition to her savings, White has started investing for retirement after a seven-year hiatus. She now puts 5% of her income into the employer-sponsored 401(k), bringing her total retirement savings to approximately $44,000 spread out through five different mutual fund retirement vehicles. Three are other 401(k) accounts not rolled over from previous employers, totaling nearly $30,000; one’s an IRA worth more than $10,000 that she converted from a traditional to a Roth, which caused her extra taxation; and there’s a CD valued at $3,700.

White also indulges in a $189-a -month gym membership. Her company pays $50 of it and also pays for her public transportation costs. She also enjoys hanging out after work at meet-ups and admits to going out as many as four times in one week.

White realizes she could make some cuts and says she plans to replace hanging out after work with reading in the park because she really wants to meet her goals. “At this age, I’m seriously looking to get a home and I should have something in the bank,” says White. “I want my business again. I was proud of myself. I want to try to give it another shot,” she says.

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The Advice
Black Enterprise and Wells Fargo financial adviser John Nelson in Cliffside Park,
New Jersey, offer this advice to help White meet her wealth-building goals.

• Get help to change financial behavior. White needs to change her behavior and focus on maximizing her income potential instead of relying on her business venture to fund her retirement. be recommends that she continue working with a financial planner and enroll in financial empowerment courses.

• Delay home buying and business goals. White should not even consider homeownership or restarting her business until she gets her financial house in order. She needs to get back to the basics, building an emergency fund equal to six to nine months of expenses as well as secure the 20% down payment needed to purchase her home. “While I understand that reopening her business is a priority for her, I urge her to consider delaying the start date until the necessary startup capital is fully funded,” says Nelson. “For the house, she should delay that for two years to accumulate $30,000 to $40,000 to cover the down payment and closing costs.”

• Curb spending. Nelson estimates that White can cut about $200 per month in dining out and health and fitness. Since every bit counts, she can design her own exercise program and save the money on a gym membership and allocate those funds to her savings. She should also stop eating out and other such indulgences.

• Sell her second car. In addition to the 2010 Camaro, White owns a 2002 Nissan Maxima, which is paid off. Nelson says she should sell her second car. “That would be $4,000 she can put aside for her home purchase or business. There is no sense in retaining it; it will continue to depreciate,” says Nelson.

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• Accumulate retirement wealth. Nelson advises White to “increase systematic savings toward her 401(k) plan from 5% to at least 10% of her income. Her current employer is matching 25% of her income up to $5,000 per year,” explains Nelson, who estimates that if White increases to 10% of her income, or $5,000, immediately and maintains this contribution for the next 19 years, she will have an additional $132,200 in her 401(k) account when she turns 60. He adds that if White doesn’t do this and just puts this investment toward her business, she will put herself at greater risk. “With a business, you are at 100% risk. With a retirement account, you have an average return of 7% to 10% with certainty that you will accumulate,” estimates Nelson. For her age, length of time working, salary history, and assuming an 8% average return, she should have more than $187,000 in retirement funds versus the almost $44,000 she has now.

Nelson says the second part of White’s retirement financing strategy is to consolidate. He recommends she roll her former employer-sponsored plans into an IRA and collapse her multiple checking accounts into one retirement vehicle.

• Don’t commingle assets. When—or if—White is ready to reopen her business, she needs to keep her business finances separate from her personal accounts. “She must set aside money for retirement as a personal asset and not borrow from it for other purposes,” emphasizes Nelson. Additionally, he says, “You have to protect yourself. If you put all of your assets in your business, what’s the backup?”     

1. I Don’t Make Enough Money.

“This is certainly true for some people—probably anyone earning less than $20,000 per year. Otherwise it is a matter of priorities. Tracking discretionary spending for only one week will show that substantial amounts are being spent on unnecessary items,” says Benna. “Someone who does this should be able to identify items to eliminate that will enable at least 1% of pay to be saved.” Of course, that is far from the amount that you need to save, but it beats not saving anything. The goal should be to move up from there in workable increments.

2. My Employer Doesn’t Match.

“The greatest benefit for most workers of a 401(k) plan isn’t the tax break or the employer match. It is the fact that savings takes place automatically each pay period,” Benna says. “Very few workers have the discipline to save outside the plan what they would be able to save through the plan.” Whether it’s a 401(k), Roth, or traditional IRA, retirement savings offer immediate tax deductions, tax-deferred growth on your savings, and usually a matching contribution from your employer.

3. I Have Too Much Debt.

“Set up a budget and stick to it if you don’t have one. Do not continue adding to your debt; get your debt load down to a level where you can contribute at least the amount that is matched by your employer ASAP,” says Benna. “If you have a match provision it’s a no-brainer; it’s 100% return,” says Harris. If you do not have a match it may behoove you to focus on the high-interest nondeductible debt first, but it’s imperative that you speak with a professional who can help you create a strategy to pay off your debt and secure enough funds for your golden years.

4. My Job Doesn’t Have a 401(k)

If you have your own business and are self-employed with no employees, Harris recommends an SEP IRA, which allows you to make contributions based upon the earnings from the business. If you have employees, Harris recommends a Simple IRA account. If you’re not self-employed, Harris suggests a Roth account first because contributions can  be withdrawn tax free at age 59¹/₂. If you can’t do a Roth, go with a traditional, says Harris, but go with some type of vehicle that allows the growth to be tax deferred. If you choose to invest in an IRA, Benna suggests considering automatic monthly withdrawals from your checking account into your IRA if you have a tough time coming up with lump sum contributions.

NOTE FROM THE EDITORS: Some retirement plans have fees that can impact your performance over time. Review your plan with a professional.

Continue reading more excuses on the next page (and learn how to get over them)

Ted Benna, Wiley Press

5. The Economy Is Bad.

“Saving for retirement is for the long term, and a down economy is just a part of the business cycle,” says Benna. Even during market fluctuations it is important not to suspend your contributions; instead make sure your assets are diversified to protect you against market fluctuations. “The fact that the economy is bad now should not prevent you from contributing to your retirement, provided you have at least a seven-year period before you need the money,” says Harris. “The goal is to buy low and sell high.”

6. Retirement Is Decades Away, I Can Wait.

“Time is the most critical element,” says Harris. “Regardless of how much money you have, it is so important to start as soon as possible with any amount you can. Time is more important than how much you put away, because time has much more of an impact.” Benna agrees. “The sooner you start the greater the amount that will come from investment income. The longer you wait, the more you will have to contribute from your pay later to reach your goal.”

7. Social Security Will Provide.

Social Security was never designed to be the sole source of retirement funds. It was designed to supplement. Right now the average benefit is $1,153 a month, which is less than $14,000 a year, explains Harris. “That’s right above the poverty line. Is that enough to maintain your lifestyle?”

For more, read “Too Young to Think About Retirement? Think Again!” in the October 2011 issue of BLACK ENTERPRISE.

Mistake 1: Having inadequate insurance—or none at all. Just because you haven’t had a cold in five years doesn’t mean you don’t need health insurance. Your health could change at a moment’s notice. Why take the risk of having a major accident or unexpected health issue and then being saddled with a hospital bill that could take years to pay off? In addition, singles should have long- and short-term disability insurance. If you are unable to work due to a disability, you’ll need to have your salary covered.

Mistake 2: Not having emergency savings. While married couples need to have at least six to eight months stashed in an emergency savings fund, singles need to have at least 12 months of expenses saved. Why? Because you alone are responsible for your financial survival, and the impact of not having enough saved in case of an emergency could be much more serious. For example, if you’re married and can’t find steady employment after an extended period of time, you’ll still have some financial support from your spouse when it comes to basics like groceries and mortgage payments. If you’re single and run out of money because you can’t find steady employment, you’re in a much tougher spot. It could get to the point where you can no longer feed yourself and keep a roof over your head. Prepare for the worst case scenario—just in case.

Mistake 3: Not having an estate plan. Estate rules vary depending on your state of residence. However, in most cases, if you’re single with children and die without a will (dying without a will is known in legal terms as intestate), your estate would be split evenly among your children. But if you’re single wit no children and you die intestate, your estate would be automatically distributed to your parents (if they are still alive). However, you may not want this arrangement. Perhaps you want your estate distributed to a favorite uncle or aunt who really needs the money. If you didn’t specify that in your will, you’re out of luck. There’s no guarantee that your parents will distribute the money as you had intended.  Depending on state laws, if a married person dies intestate, all of their property could go to their spouse. So regardless of marital status, it’s important to clearly outline your wishes after death so that your property is passed on to the appropriate people.

He’ll Spend A Lot On The “Little” Things: Bottle service in the club for his crew and yours. Three course meals and tickets to the hottest concerts. Weekend vacays just because…it seems too good to be true because it just may be! Unless your dude is an investment banker, a successful lawyer, owner of a flourishing biz or some other big earner, it’s very possible that he’s burning a hole in his credit cards to impress you, to keep up an aspirational lifestyle or because he just doesn’t have much common sense. If what he seems to earn doesn’t match up with what he’s spending on a regular basis, your honey dip may have a little problem with managing his funds.

Read more at Madame Noire …

(Image: Thinkstock)

Maybe your beau is struggling to find a job in this terrible economy. Or perhaps he’s on a fixed income due to graduate school or helping out family members or some sort of bad investment. Either way…he’s broke. Can you handle it? If you truly care about him, not just about being wined and dined, then a period of financial struggle shouldn’t be a death knell to your relationship.

Now, if you two pay bills together or share an apartment, that’s gonna be a bit more complicated. But if both parties are committed, communicative and responsible, you can make it work. Check out our tips for dating a man who’s down on his luck.

Be Supportive, Not Motherly: Your honey’s probably feeling bad about his lack of dough and maybe even a bit embarrassed. Don’t make it worse by constantly bringing it up, even if you’re trying to be encouraging. Don’t put all his financial burdens on your back either, unless you’ve been together long enough to justify such AND can rightly say he would do the same for you. You may casually mention gig or job opportunities and forward over emails that have positions that he may be looking for, but don’t turn into his mom.

Read more at Madame Noire …

Fans of Harper know that he is more than just a good-looking actor on the hit CBS crime investigation series CSI: New York. The magna cum laude graduate of Brown University, who holds law and master of public administration degrees from Harvard, has written a series of books focused on the education and improvement of others, including the New York Times bestseller The Conversation. And while he is not a doctor (though he plays one on TV), he comes from a long line of physicians and healers.

So it should not come as a surprise that he views wealth through the prism of health, without which money and other assets lose their value and meaning. The Money Cure provides great advice and sound strategies, including information about budgeting and the role of insurance, for managing and investing your money more effectively. But beyond that, this is not your typical money book. Using his own journey both literally and figuratively, including a thyroid cancer scare, Harper shows how money alone cannot give you wealth, nor can the pursuit of it make you happy. True wealth-building is about pursuing wellness, not just dollars. Harper’s formula: Money + Wellness = Wealth.

Harper takes the reader with him on a train trip from Los Angeles to Chicago, as he ponders the meaning, uses and misuses of wealth and gets his mind around his cancer diagnosis in preparation for surgery to remove his thyroid. (He’d begun work on the book prior to learning of his illness.) Along the way, Harper uses his personal experiences, as well as those of old friends and new acquaintances in his life, to deliver the kinds of revelations about money and its proper use and role in our lives that will literally stop you in your tracks. The effect is akin to a kind of benign, spiritual shock therapy, designed to prod you into recognizing and changing your relationship with, and feelings and choices about money.

For example, do you know the difference between dumb money and smart money? Harper explains that the former is spent on things that decrease in value while you sleep, while the latter is spent on things that increase in value as you sleep. Money spent on credit card interest payments is dumb money. Money spent on investments that appreciate and pay interest and/or dividends, such as your company’s 401(k) retirement plan, is an example of smart money. In short, dumb money costs money; smart money makes money. It’s hard to imagine someone abusing credit or failing to contribute to a retirement savings account once they grasp this concept. And that’s the gift of this book: Harper has a way of breaking things down to the point where we can no longer use not knowing better as an excuse for not doing better.

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To that end, among other things, Harper urges us to commit to a Smart Money Contract. Some of the terms of that contract are:

Never accumulate credit card debt. If you have credit card debt, pay more than the minimum payments and negotiate lower interest rates directly with the credit card provider.

Research the type of investments that are appropriate for your goals and make investing part of your monthly budget.

Start now. No matter where you are in terms of age or income, you can and should seek to invest in ways that are appropriate for you.

Reinvest your income and dividends to make your investments grow exponentially.

Think long term, not get rich quick. Be patient and don’t ever panic.

Most important, believe that you can become what Hill calls a “Smart Money Master.” His point: Once you change your mindset about money, you will make better money decisions and be on the path to true wealth, which includes physical, mental and spiritual wellness as well as healthy finances.

Sounds an awful lot like the Wealth for Life financial principles we urge you to adopt in BLACK ENTERPRISE magazine every month, doesn’t it? Not bragging. Just saying.

Be sure to pick up and read The Wealth Cure. If you are plagued with money problems, it absolutely could be the cure for what ails you.

(Image: Thinkstock)

There’s nothing I hate more than being anything close to broke, whether short-term or long-term.  Just the thought of it makes me cringe. It’s not a good look, especially when, on the outside, you look like close to a million bucks.

I’m no supermodel; but I am one who likes looking a certain way and enjoying my leisure time after my 9-to-whenever (LOL).  I love all that is fashion, beauty, and nightlife, and though I can’t always afford luxury, I’ll research and save to have what I feel I need to look my best—whether it’s a new weave or haircut, a mani/pedi, the latest makeup or a cute little party dress or two. I will visit several stores, travel far and wide, and spend hours on the Web researching price, availability and quality for my buck. I practice quite a bit of due diligence when it comes to that.

But recently, I learned a hard lesson on prioritizing and practicing due diligence in all aspects of life. I’d made plans to shop and prep for a special event I’d been eager to attend, and was so zealous in my planning that I’d neglected to turn in a key piece of paperwork directly linked to my livelihood.

Not only was it an inconvenience (the process to fix the situation would delay receipt of money, which is never a good thing), but my financial situation at the time made me feel as naked as a newborn baby. The vulnerability of it made it even worst, as I had to sit and wait, relying on last-minute favors from family and friends while the bank and other parties remedied the mishap. I even had to neglect other important tasks to handle the fallout of the financial doozy, and on top of that, deal with the stress of it all.

It was a snowball of events that could’ve been avoided had I focused, prioritized properly, and had plans B and C in place to soften the fall.

I was blessed to have people to come in and help me, but what if that weren’t the case? What if I had no one to step in? The outcome could have been must worse.

“You’re too fabulous for this honey,” I was told. “This type of mistake is not you. Get it together, diva.”

Because of my mentality on being broke, I felt like a major loser, if only for a day or two. I kept thinking, “If only I’d remembered … if only I had focused on what was more important than looking cute for that event. If only I had solid plans B and C, I would have been okay.”

I can’t dwell on the past, but I made it a point to not only remember, but practice more diligently what my Granny has constantly told me all my life: You never want to be forced to depend on ANYONE. Although you can’t always control what happens in life, you at least want to be prepared for what could come.

It’s never good to have all your eggs in one basket, and it’s definitely a fool’s move neglecting to plan for life’s bumps, whether related to your finances, your career, your look or your health. It pays to have it together, in all aspects of your life, so that when one piece falls apart, you can protect the well-being of the whole.

True, we all make mistakes, and everyone can’t be on top of things all of the time, but preparation and due diligence are definitely worth the investment and will keep you from taking major loss in the long run. Trust me, I learned my lesson, and now challenge myself, as well as others, to work to ensure that whatever is important in their lives has a holistic emergency plan.