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What to do when you forget someone’s name during an introduction

2012-05-17T07:00:00Z

In both business and social situations it’s important to introduce people to each other so they feel included and important. But what do you do if you’ve forgotten someone’s name and need to make an introduction? Don’t avoid making the introduction, instead follow the advice I give in this video.

Arden Clise, President of Clise Etiquette, is a business etiquette consultant and columnist for the Puget Sound Business Journal. As a speaker and corporate trainer, Arden is an expert in the field of business etiquette. She can be reached at 206-708-1670 or arden@cliseetiquette.com

Credit Scores in a Nutshell

2012-05-10T07:00:00Z

The universe of credit scores and credit scoring could fill volumes so in this article I’m going to attempt to encapsulate some of the important facts about scores. I’m going to summarize how the credit bureaus come up with “credit scores” and arm you with enough information that you’ll feel more comfortable when dealing with the world of loans, credit and risk management.

SO WHAT IS A CREDIT SCORE?

Your credit score is a three-digit number generated by a mathematical calculation using information from your credit report. It is designed to predict risk or the likelihood that you will become seriously delinquent on your credit obligations 24 months after the scoring. In reality, your credit score is a quick “snapshot” of your credit and is generally looked at when you’re applying for a loan.

There are numerous kinds of credit scoring models used in the marketplace, but 90% of all financial institutions in the U.S. use FICO scores. FICO stands for Fair Isaac Corporation which was founded in 1956 and who created the mathematical analytics use in credit risk modeling.

WHAT’S A GOOD SCORE?

You’re going to love this answer: It depends! Credit scores can range from 300 (at the bottom) to 850 (at the top). Let me summarize a great article from Bankrate.com. Quoting Steve Ely, president of NA Personal Solutions:

“Probably two or three years ago, a 720 was a pretty good score. Today’s 760 is what a 720 used to be. A 760 FICO score marks the low-end of the ‘excellent’ credit category. “Very good” scores run from about 725 to 759. If you were at 620 or below that, you might really have a hard time getting a credit card nowadays.”

WHAT GOES INTO A CREDIT SCORE?

There is a chart produced by myfico.com which is the definitive resource for understanding FICO scores. Here is the breakdown:

Payment history: (35 percent)—Your account payment information, including any delinquencies and public records.

Amounts owed: (30 percent)—How much you owe on your accounts. The amount of available credit you’re using on revolving accounts is heavily weighted.

Length of credit history: (15 percent)—How long ago you opened accounts and time since account activity.

Types of credit used: (10 percent)—The mix of accounts you have, such as revolving and installment.

New credit: (10 percent)—Your pursuit of new credit, including credit inquiries and number of recently opened accounts.

The ratios above represent only part of the story when it comes to credit scores. There are other factors that may affect a credit score. If you are new to credit, for instance, the scoring model will put you into a category for people with young credit histories, and use a scoring formula specific to that group. Some credit scores are calculated specifically for the automobile or mortgage industry.

In the end, as I mentioned above, credit scoring is an incredibly complex and interesting subject. Most of us will, at one time or another, be scrutinized by a lender who will be paying particular attention to our credit score. If you want to find out even more about credit scores I recommend FICO’s wonderful booklet called “Understanding your FICO Score.”

James Lupori is a Financial Counselor at Verity Credit Union and an Associate Real Estate Broker with “The Force Realty.” Having worked 16 years in the credit industry and 11 years as a residential real estate agent, he has developed a keen sense of how Americans manage their personal financial lives. He is a consummate advocate for families and individuals and strives to empower them to take control over their economic futures!

James is a passionate observer of economics, culture, history and politics. He’s interested in almost everything from cooking and linguistics to blogging, Italian film and community supported agriculture. He also likes cats!

The germy handshake

2012-05-03T07:00:00Z

Whenever I teach handshakes in my training seminars or keynote presentations there are always a lot of questions. One I’m often asked is “what do I do if I don’t want to shake hands with others to avoid getting germs?” I’ve also been asked this by friends who are germ phobic and would prefer handshaking just went away.

A handshake is a way to show goodwill to others. We started shaking hands in the Middle Ages to show we weren’t holding a weapon or hiding one up our sleeve. Most likely we don’t have to worry about someone harboring a weapon, so today handshaking is a way to greet, thank or say goodbye to someone. It is a simple touch that can mean so much.

I really think we need to stop worrying about germs. We live in a germy world. Even our houses, our havens from the dirty world, are some of the germiest places around. We can’t escape germs and I think we harm ourselves more by refusing to shake hands.

As a professional speaker, trainer and business owner I shake a lot of hands. I am mindful to wash my hands after an event or before I eat and I am rarely sick. In fact, some of my friends who do less handshaking get sick more often.

Also, as our world becomes increasingly driven by technology and we communicate through our many digital devices we are losing the closeness we used to have. Face to face meetings happen less and less, which means we are touched less by others. I don’t think this is good. We need more touch, not less. A handshake is a warm, professional way to greet someone.

As my wise, gracious etiquette trainer, Maria Everding, wrote about the subject, “A handshake is a personal link between two people. It’s what we do in the United States.”

That said; if you are sick do not shake hands with others. Simply explain you have a cold and don’t want to spread your germs. That is the courteous thing to do.

What is your take on this? Are you in the “handshakes should go away so I can avoid getting someone’s germs” camp or do you reside in the “a handshake is an important part of social and business interactions” group? If you do wish handshakes would go away, do you think we should do something else or nothing at all?

Updated Basics of Identity Theft Prevention From An Expert

2012-04-26T07:00:00Z

Last week I had the privilege of co-presenting at an educational event for public school employees with Lyn Peters, Director of Communications for the Washington State Department of Financial Institutions (DFI). If you’re not familiar with DFI, they’re the regulators in Washington State that work with financial institutions to ensure business runs as smoothly as possible. I was presenting on how to invest safely and wisely in our current financial times. Lyn was presenting on identity theft. She gave lots of great advice about how our personal information is being swiped, and I was stunned to learn that identity thieves are still getting a heck of a lot of information because we’re failing to properly secure and dispose of what’s inside our own homes.

Luckily, I persuaded Lyn to share the tips she believes will be most helpful when it comes to securing your family’s personal information inside your home.

Pack Rat Fever: Lyn says we are saving way too much information on paper at home. If a thief breaks in, our homes are a treasure trove of pirates’ booty for an identity thief in the paper department. She says most financial institutions will maintain scans of checks in their databases (check with them first), so keeping copies of years of cleared checks at home isn’t necessary unless your accountant or attorney has advised you to do so. She says that any documentation you can’t bear to part with should be locked up inside the home.

So what should you keep? Most recent monthly bills, insurance policies, social security cards, voters’ card, and birth/marriage certificates, and rarely used credit cards are keepers. Lyn also says we should copy our licenses and passports, and make copies of the fronts and backs of all of our credit and debit cards. Keep all of these stored in a locking, fireproof case for the ultimate protection.

Proper Disposal: You’ve heard it a million times, but you specifically need a Cross Cut shredder if you want to keep your personal information safe when you’re getting rid of it. Cross Cut means it turns your documents (and old debit and credit cards) into the tiniest of pieces, rather than long strips that are easy to put back together. Lyn says she talks to so many people who know they need to upgrade their shredder but fail to do so.

Where to Keep Personal Electronic Data: Most of us have personal electronic data that we use when we’re online. Whether it’s user names, passwords, or PINs, sometimes it feels like our electronic personal information is being used more often than our personal information. If you need to store this information somewhere, Lyn suggests keeping it on an external hard drive – not your computer hard drive – and keep that in the fireproof safe as well.

Alicia Diefenbach is a former financial crime-fighter for the Washington State Department of Financial Institutions. After spending nearly a decade helping fraud victims seek restitution and educating consumers about various aspects of personal financial management, she went into business for herself.

Alicia now designs fun, non-commercial presentations and materials that help people make financial decisions that lead to success. She is a published consumer writer and speaks on topics that educate women, teens, adults, and seniors on various aspects of fraud awareness, and successful personal financial management.

Place setting confusion when dining

2012-04-19T07:00:00Z

I attend a lot of luncheons and dinners and usually the tables are full of utensils, plates and glasses. It can make it hard to know which items belong to you and which belong to your neighbor.

At these events, I often see someone take a piece of bread from the bread basket and look panicked because they aren’t sure which bread plate to use. Thankfully there are a couple of easy tricks that will keep you from using the wrong bread plate or drinking from your neighbor’s glass ever again. Watch this short video.

Tax Deductions for Job Seekers

2012-04-12T07:00:00Z

Finding a job is not only stressful, but it can be expensive too. If you were looking for a job in 2011 then there might be some good news for you after all -- the IRS might owe you! That’s right, if you were on the job hunt last year you might qualify for tax deductions on some of the expenses you incurred while on your search.

IRS Pub 529 Guidelines

To find out if you are eligible for a tax deduction you need to review the guidelines provided by the IRS. Be sure to take a good look at the guidelines before you claim any deductions for your job search. Here are the guidelines which can also be found on the IRS website.

A tax deduction can only be applied when seeking a job in your current field. For example, you can’t use a tax deduction if you are looking for a job in a completely different profession.
No deductions are available for first-time job seekers.
If you took a “substantial break” in between jobs, the IRS will now allow a deduction for this. However, the IRS does not define what a “substantial break” is so you will have to figure that one out yourself.
There is a limit to the amount you can claim. Deductions are granted only for amounts over 2 percent of your adjusted gross income. This doesn’t sound like much, but every little bit helps.

Here’s What You Can Deduct

Once you have determined you meet the guidelines the next step is to know exactly what can be deducted. The following Income Tax Deductions are allowed on your itemized deductions worksheet:

Resume and Application Costs: When it comes to your resume there are certain costs you might incur such as: the postage cost or the cost for paper or ink. These are all items that can be deducted.
Placement Agency Fees: If you used a placement agency to find a job within your current field you may deduct any fees you were charged. Note: If you end up being reimbursed by your employer for these expenses then you must report this as regular income.
Travel: There are a few eligible deductions when it comes to travel. Keep in mind, the travel must be directly related to looking for a job. The deductions include the mileage you put on your car during your job search, the cost of a flight and the cost for your hotel stay.
Babysitting: If you needed to hire a babysitter while you were on your job search then that’s a deduction too. Your babysitting fees qualify as deductions - this is great news for parents!
Moving: If your job search results in you relocating then you can deduct all costs associated with your move. This includes everything from the cost of boxes to shipping charges. You qualify as long as your new job requires you to move 50 miles away.
Training and Networking: Sometimes looking for a new job requires training to freshen up your skills. Any sort of job event, seminar or training you attend that is directly related to your job search can be a deductible.
Phone Calls: When searching for a job you can be sure there will be many phone calls. You can deduct the cost of phone calls from a land line or a mobile phone used for the purposes of finding a job. Now, this could get a bit tricky when it comes to your cell phone calls because of the way carriers package their plans. However, the IRS grants a tax deduction and they include mobile phones.

Tax deductions can be tricky and complex. It’s always suggested to seek help from a tax expert before you venture off into unfamiliar territory with your taxes. If you don’t have any experience with these types of deductions then play it safe and get expert advice. Always remember to keep track of your receipts so you have proof you are entitled to the deductions.

Michal Cheney is a personal finance blogger who writes for several top personal finance blogs, such as Dough Roller and Go Banking Rates. She enjoys writing about money management, getting out of debt and planning for retirement. Her practical approach encourages folks to get serious about their relationship with their money.

Let’s Talk About Credit Reports – Part 2, You Don’t Have a Credit History?

2012-04-05T07:00:00Z

It’s hard to imagine that someone in their 30’s might not have a credit history or a credit score but recently I began working with a member who was rejected for a $3000 personal loan. He wanted the loan in order to pay off an automobile loan for which he’s paying 29%! (more about that in a moment) The reason: “no trade line history or open credit accounts.” Wow, I was stunned when I saw his report. He literally had no credit cards, no automobile loans and no mortgage…nothing reporting on his credit history. As a result he also had no credit score.

The Importance of Developing a Credit History

We would all like to believe that we’re an “exception” and that if we avoid “playing the game” we can operate financially without having a credit history. There are some rare cases where certain communities pool their resources to help each other with loans and financial assistance. They avoid being involved in the banking or credit systems, sometimes out of mistrust or fear of the system, but they are the exception. And yes, there are those people who have damaged their credit so badly that their only choice is to ask family or friends for loans. Most of us will need to develop a credit history (and hopefully a good credit score) in order to operate more easily through life’s financial challenges. Let’s take a look at those entities who might scrutinize your credit report.

Who Looks at Credit Reports?

Essentially, anyone who has a “permissible” use can obtain and view a copy of your credit report. If you’re curious you can find the definition of permissible use by reading The Fair Credit Reporting Act. Suffice it to say that anyone viewing your credit history must have permission to do so; however, be aware that many applications and documents out there have language that gives companies permission to pull your report. Remember, your credit report is presumed to be a measure of your character so here are the main people who scrutinize your history:

Lenders/Creditors – We’re all aware that any time you want to open a credit card account, purchase a car or home or obtain a loan from a financial institution, they are going to view your credit report.
Auto Insurance Companies – Most of the 100 largest personal automobile insurance companies use credit information to underwrite new business. They also use the information to set rates. Also, be aware that insurance companies also use their own proprietary insurance scores (in conjunction with the credit history) to make decisions.
Landlords – In Washington State, landlords have the legal right to pull your credit report in order to determine if they want to enter into an agreement with you. They also have the right to pass the cost of pulling your credit report onto the applicant. Here’s the section of the Residential landlord tenant act that details the law, http://www.thelpa.com/lpa/landlord-tenant-law/washington-eviction-law.html.
Employers – This is a touchy subject for many people. It is becoming more common for employers to screen job applicants by viewing their credit reports. In fact, a recent study showed that 60% of employers associate good credit with responsibility and discipline. Not all employers pull a credit history but individuals working in government, financial institutions or in fields where proprietary information is important can expect their credit report to be a factor.

About that 29% auto loan

I want to return quickly to the 29% interest rate loan I mentioned above: There are two important things to keep in mind when you or someone you know is paying off a loan like this. 1) If your credit score is under 600 you may be forced to acquire lending through a sub-prime or “hard-money” lender. They are going to make you pay dearly for the loan. 2) As in the case of our member, they may not report your payments to the credit bureaus in which case your payment history may never reflect that you’ve been paying the loan! This defeats the purpose of taking out a loan in the first place. For a quick overview of sub-prime auto loans I found this excellent article, “MYCARLADY’s 10 Rules of Bad Credit Sub-Prime Auto Loans

So, what are we doing about our member with no credit history?

Our member has got a couple of years of “credit work” ahead of him. Anyone who is starting with no credit or damaged credit isn’t going to transform a credit history in a short period of time; however, there are things one can do to start:

I am working with our member to contact the hard-lender who holds his auto loan to get a payment history. Even though his consistent payments haven’t been reporting to the credit bureaus, he can present this history to the credit union as evidence that he is paying according to the contract.
I will also ask the member to start putting together a history of his rent and utility payments so that he can document these payments as well. Remember, landlords look at credit reports but don’t report rental payments to the bureaus (unless you’ve been evicted). Utility companies don’t report either.
After we put this information together (called “unconventional credit”) I intend to present his file to our lending department to see if they might reconsider him for a loan. It’s not a sure thing; however, I believe we may be able start the member out with a secured credit card or small line-of-credit to help him start developing a credit history.

I hope this presentation helps you better understand the importance of having a credit history. I think many parents should sit down and explain to their teenagers how the world of credit works and how important it is to start and maintain a good credit history.

New Methods of Scoring Dig Deeper Than Ever

2012-03-29T07:00:00Z

Wouldn’t it be fantastic if, just like we did as students and GPAs, we got a fresh start on our credit scores at the beginning of each year? The opportunity to put last year’s financial mistakes behind us and start with a new credit score?

While we can certainly change our habits for the better, unfortunately, we can’t immediately change our scores.

The financial choices we’ve made over the last 7 to ten years show up on our credit reports, but this year, there is a new twist that you need to be prepared for. Credit scores are broadening to the extent that lenders want to know far more about their customers and prospective clients, and they’ll be collecting far more data than you can imagine.

A company called CoreLogic is teaming up with FICO (two analytics corporations that, in a nutshell, help businesses predict the behavior of prospective and current customers) to help lenders learn more about prospective borrowers, and the rumor is that they could start to use this information as early as March.

Essentially, what their looking to do is know more about you than the current credit scores already reveal. Current scores reveal a heck of a lot about you as it is. They let lenders know how much debt you owe. They can see if you’ve paid your bills on time for the last 7 years. They can look at what percentage of your available credit you regularly use, as well as the kind of debt you have. They also take a look at the last two years of your credit score to see what you’ve recently been up to.

This new credit score? Look out.

The New York Times reports that in addition to all of the above, these new credit reports will reveal far more negative information than was previous available. They’ll note:

Whether you pay your rent on time.
If you’ve got tax liens.
If you have taken out a payday loan
Late rental payments
Off record child support payments

And next year? They hope to include utility and cellphone payments as part of their scoring process.

One of the best ways to minimize the damage? Start checking your current credit score now for free at AnnualCreditReport.com. See any outstanding debt? Start paying it down. Get rid of any old debt you might to help improve your score to combat what’s coming. Pay off old rental or utility payments. Catch up on your rent. Pay your bills on time.

You can’t control what the future brings, but you can deal with what’s on your report today.

Let’s Talk About Credit Reports – Part 1

2012-03-22T07:00:00Z

When people find out I’m a financial counselor I get deluged with questions about how credit reports work and how the credit bureaus come up with credit scores. Recently, I had two interesting consultations with members who have very different backgrounds, but who also had virtually the same questions about their credit reports and scores. One member has a sterling credit history and also has an “impressive” amount of credit card debt. The other calls himself “credit impaired.” He has no credit card debt, but has quite a number of unpaid collection accounts on his history. Both members as it turned out knew relatively little about their credit reports. Working with these members inspired me to sit down and put together a fast and easy guide to help you better understand your credit report:

Credit Reports

Think of a credit report as your “financial report card.” It is a record of your past borrowing and repayment history. The information is gathered and sold by three large companies called the credit bureaus: Experian, Equifax and Transunion. These are the corporations that lenders, retailers, credit card companies, collection agencies, the courts, etc. subscribe to in order to gather information about us. Here are some quick facts you should know about your credit report:

What type of information do credit bureaus collect and sell?

Identification and employment information: Your name, birth date, Social Security number, employer, and spouse’s name are routinely noted. The Credit Bureaus also may provide information about your employment history, home ownership, income, and previous address, if a creditor requests this type of information.

Payment history: Your accounts with different creditors are listed, showing how much credit has been extended and whether you’ve paid on time. Related events, such as referral of an overdue account to a collection agency, may also be noted.

Inquiries: Credit Bureaus must maintain a record of all creditors who have asked for your credit history within the past year, and a record of those persons or businesses requesting your credit history for employment purposes for the past two years.

Public record information: Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report.

How often should I look at my credit report?

You should review your credit history once a year to make sure the information on it is correct. It is your responsibility to ensure your credit history is accurate. If you go to get a car loan, for example, and derogatory (and inaccurate) information comes up on your credit report, your loan may be rejected and you won’t be happy.

How do I obtain my credit report?

You can order a FREE credit report from AnnualCreditReport.com. Yes, this site is the real McCoy. You are allowed to order a credit report that includes information from all three of the credit bureaus for free once a year though this site.

What if I find something on my credit report that is inaccurate?

If you review your credit report and find some errors, you need to decide how you want to dispute them. For starters, all three credit bureaus offer online dispute resolution. This is a great place to start, though you can’t necessarily fix all of your problems online. Here are some important numbers and links you can use:

Equifax: (800) 685-1111 (Online Dispute Resolution)

Experian: (888) 397-3742 (Online Dispute Resolution)

TransUnion: (800) 888-4213 (Online Dispute Resolution)

In future posts

I hope this brief overview of credit reports motivates you to order yours and to take a careful look at it. Knowing what’s going on with your credit is crucial in today’s world. Lenders, landlords, employers and insurance companies all use credit reports to make important financial and risk management decisions about us.

In future posts, I’m going to talk about how your credit score is calculated and how derogatory information is shown on a credit report.

Can Facebook Hurt Your Credit?

2012-03-15T07:00:00Z

In an article written in early 2012, I read something that seriously shocked me, and made me shift my perspective on social networking.

It claims that some lenders might actually be looking at your social networks to determine how likely you are to pay back what you owe, which will determine whether or not they are willing to give you a loan for a house, a car, or even a job. Seriously. That means your Facebook friends could be determining how likely it is you can get the things you need.

While they are very direct in stating that larger lenders aren’t going to be putting this into practice anytime soon, smaller lenders might be doing this already. They site one such company, Lenddo, who is doing this right now. You can learn more about how the process works by Googling ‘Lenddo’.

BTW, this isn’t an anti-Lenddo piece. I think this is simply the inevitable evolution – and marriage – of personal finance and social networking.

If you click on their ‘What Is Lenddo’ link they claim to be “the first credit scoring service that uses your online social network to assess credit”. They say that by looking at the information on your peers’ networks and combining it with that of your own, it can potentially help you get access to the credit you deserve.

That’s a cool idea – if the majority of your friends have great credit and haven’t posted financially controversial comments on their social networking pages. That could help you out.

But what if you’ve got a handful of those ‘Oh my gosh, just dodged my tenth collection agent today’, or a guy who claims ‘Ask me how to do a strategic foreclosure! It was the best thing I ever did for my finances’. You have those friends on your Facebook page? With lending practices like these in place, your friends’ good or bad choices could impact your ability to get access to the credit you need.

So what can you do before this becomes common practice?

Start looking through your social networking pages and identifying any potentially controversial friends in your networks
Pay close attention to what their posting daily for about two weeks
If you wouldn’t mind a potential boss or lender seeing those friends’ posts then leave them as is
If you think this person could potentially damage your financial credibility, send them a kind message through the social network, let them know you’re limiting your social networking activities and thus removing them, and that you look forward to keeping in touch via email.

Lunch date dos and don’ts

2012-03-08T16:00:00Z

A colleague of mine, let’s call her Cindy, emailed me and asked for advice. She had been invited to lunch by someone she didn’t know well, we’ll call this person Sarah. Sarah wanted to have lunch at her club.

Cindy had to reschedule the first meeting because she was sick and had asked if they could meet after the New Year. However, Sarah insisted they meet during the holidays because she wanted Cindy to see the lovely holiday decorations in the club. Cindy reluctantly agreed.

The two had a nice lunch, Cindy didn’t disclose what the lunch meeting was about, but at the end Sarah asked the waiter to split the bill. Cindy was mortified. She had assumed this person would pay for her lunch since she had invited her and also thought the private club wouldn’t accept money anyway. Because of her assumptions she had not brought her wallet to lunch. So, she had to tell Sarah that she had assumed the lunch would be covered and didn’t have any money on her.

Sarah seemed to understand, but stated that because she invites people to lunch a lot it gets expensive for her so she asks her guests to split the bill.

Oh boy, what went wrong here?

Well first off, I don’t think Sarah was clear about why they were meeting. Again, Cindy didn’t go into detail, but perhaps given Cindy’s profession Sarah wanted to network, or wanted advice or maybe she wanted to promote a service or product. When asking someone to meet with you, it’s important to state why you want to meet.

The second mistake Sarah made was forcing Cindy to accommodate her schedule – even though it was so that Cindy could see the holiday decorations. A good host always accommodates her guests and does not push. Cindy’s error was to capitulate to Sarah on the rescheduled meeting date. She should have been firmer in stating she did not have time to meet during the holidays, and while she was sorry she wouldn’t be able to see the holiday decorations she simply couldn’t meet sooner.

Another problem was Cindy left her wallet at the office. While she was absolutely correct to assume Sarah would pay for the meal, you have to be prepared in case the person you’re meeting with wants to split the bill.

The biggest gaffe was in Sarah asking Cindy to split the bill. The person who issues the invitation always pays for the meal. Sarah stated that she asks her guests to split the bill “because it gets expensive.” I certainly understand this. However, if money is tight, you should pair down your lunch invitations. Perhaps, meet for coffee instead.

I feel for Cindy. It was a very awkward situation.

Have you ever assumed because someone invited you to lunch they would pay? Have you been in Sarah’s shoes?

What not to do on Facebook

2012-02-23T16:00:00Z

A friend emailed me recently asking for advice. She had received a friend request on Facebook from someone she didn’t know, but knew of. She decided to grant the friend request. Immediately afterwards this person wrote on my friend’s wall asking her to like her Facebook page and include a link to the page.

A day later, my same friend got another message on her wall from someone else that said how much she liked my friend’s page and then wrote in a P.S. to please like her page.

My friend was obviously bothered by this and wondered what to do. I told her both people spammed her and to delete the messages. It is really rude to promote your business, your book, blog, Facebook page, website, etc. on someone else’s Facebook wall or page. It’s akin to spray painting someone’s house with a message like, “Like Computer’s R Us Facebook page at www.facebook.computersrus.com.” You would never do that. It’s just as offensive to do that online.

What surprises me is that many of the people doing this are really nice people. I don’t think they intentionally are trying to spam others. Perhaps they just don’t realize how ill-mannered it is.

Someone’s Facebook wall is somewhat sacred. When you write on someone’s wall it’s like walking into someone’s house during a party and shouting something to the group. It’s OK to shout something if it’s a. complimentary of the person, b. it’s helpful or interesting to the person and her/his friends or fans. It’s not OK if it’s personal and best communicated by a direct message or email, or it’s promotional, as stated above.

So, next time you’re tempted to post something about your business on someone else’s wall, don’t. Your friends will thank you.

Have you ever had someone post a promotional message on your Facebook profile or page? What did you do?

Exceptional email introductions

2012-02-09T08:00:00Z

If your New Year’s resolutions include doing more networking, whether to find a job, increase your network or grow your business, you’ll probably be both making and receiving introductions to others via email. Here are some tips on how to do that.

Put both people’s email addresses in the “To:” field.

When you start the message, begin by addressing the person who you’re introducing the other person to.

Make it clear why you’re making the introduction. That is, why should the two people meet.

Give an overview of each person and how you know them.

For example, let’s say, I’m introducing my friend, Mary Smith, who is looking for work, to my colleague, John Adams, who works in a field that my friend wants to get into. I would write:

“Dear John,

Happy New Year! I hope you and Marge had a nice holiday season. (I always start with some non-business pleasantries before jumping into business.)

I’d like to introduce my friend Mary Smith. Mary works for XYZ company and manages their sales staff. She is looking to make a career transition into retail marketing. I thought you would be a great person for her to talk to to learn more about the field. I have known Mary for eight years and am always impressed by her intelligence, warmth and can do attitude. Mary is also a talented bike racer. (I like to include some personal information as it helps them to have something to talk about.)

Mary, meet John Adams, VP of marketing for ABC Company. John and I worked together at Company A five years ago. John is a marketing wiz and a really great guy. And, he has two sweet dogs, Hank and Juma.

Happy meeting.

Best regards, Arden”

The more complete the introduction the easier it will be for the two to help each other. And, as I’ve learned from personal experience, it is really important to state why you think the two should meet. If someone introduces me to someone via email and doesn’t make it clear why I should meet with this person I will usually not proceed with the meeting.

It is usually incumbent on the person being introduced to the other person to follow-up with an email thanking the introducer and schedule a meeting with the person s/he was introduced to.

Lastly, at the very least send an email to the introducer thanking them for the introduction and letting them know if you’ve met with the person he or she introduced you to. Even better, send a handwritten thank you note, especially if the introduction leads to new business or a job. This is absolutely essential if you want to stay in the good graces of your friends and colleagues.

Good luck with your networking efforts.

Are You Raiding or Protecting Your Savings?

2012-01-30T08:00:00Z

You Need a “Pot of Money” at Any Age

I recently listened to an interview/call-in show with Jane Bryant Quinn on our local NPR affiliate KUOW (94.9 FM)(KUOW (94.9 FM)). The focus was on American personal savings rates which are truly dismal (more about this in a moment). It was fascinating to hear how many callers were worried about their savings accounts. They all wanted to know where they should put their money so that it earned the highest possible returns. Her response was firm and to-the-point: The question is not how much interest you’ll be paid on your “liquid” savings account; it’s all about how safe the account is. She acknowledged that 401K’s and other savings programs are great, but in today’s world it’s critical to focus in on the safety of your basic savings account. Her message: You need a pot of money at any age to have financial security.

Americans Are Paying Down Debt. Unfortunately They Are Dipping Into Their Savings

I was encouraged by Quinn’s practical advice and I wish more Americans would concentrate on putting money away into a reserve account. Unfortunately, four long years after we fell into a recession, families are finding it hard to maintain a good saving strategy. In a recent Reuters article entitled “Recovery at risk as Americans raid savings the authors point out:

“After a few years of relative frugality, the amount of money that Americans are saving has fallen back to its lowest level since December 2007 when the recession began. The personal saving rate dipped in November to 3.5 percent, down from 5.1 percent a year earlier, according to the U.S. Commerce Department.”

What’s more, Americans are facing a number of challenges that make saving difficult:

Our overall economy remains anemic. Economic growth is only expected to be around 2% in 2012 and uncertainty in the European markets is causing a lot of worry.
Food and energy costs have risen over the last several years.
Families no longer have equity in their homes to fall back on. Did you know that U.S. consumers extracted $2.2 trillion of equity from their homes between 2003 and 2007?
A disturbing trend: loans taken from retirement savings accounts jumped 20% last year. Lower earners rose 60%. The problem here is that these funds were used for bills, tuition or other necessities.
Education costs have skyrocketed. This is taking a bite out of many family budgets and, in many cases; it is forcing many to forgo contributions to college investment funds (529 funds). Assets in these funds dropped 10% at the end of 2011.

What You Can Do Right Away To Start Your “Emergency Savings Account”

Saving money for most people is like dieting: Everyone knows what they’re supposed to do (eat less and work-out more), but no one ever does it until their doctor orders them to! Well, there are several basic “golden rules” about saving money that have been around since ancient times. You can put them to work immediately and start building an emergency or “reserve” savings account.

Establish a Budget – Most people hate budgets, but in order to discover how much money you have available (or not) you need to take a snapshot of your finances. If you need help getting started with this, read my last blog post for all the in-and-outs of getting your budget plan in order.
Pay Yourself First – Most people get their paycheck and the pay all their bills first. More often than not, there’s nothing left over before the end of the month so they resort to using credit cards or getting a loan from Uncle Bob. After looking over your budget, determine a percentage of your income that you will put in a savings account before you pay your bills. The golden rule is to pay yourself 10% and then live on 90%. I think that’s impossible for most people starting out on this journey. The key thing here is to establish the habit of “forced savings” up front. Try for 5% or 3% at first and then work your way up!
Eliminate Debt by Cutting Expenses – This is, of course, the trickiest part of saving money. I could go on forever about cutting expenses. For now I would like you to concentrate on two things: a) take a careful look at your budget and determine how you can start eliminating “bad debt” (e.g. high interest credit cards or any other high interest loans you’re carrying) and, b) start becoming more aware of your discretionary spending and eliminate the non-essentials. This might be as simple as cutting back on Starbucks a couple of times a week or downgrading your cable TV service. In the long-term most families find that they are spending precious dollars on things they no longer need or enjoy. That’s where your savings will come from!

I will be writing more about saving money in future posts, but for now, please make a commitment to start putting money away into your emergency fund. You’ll find that as you consistently pay yourself first, your account will grow and so will your financial confidence.

From the Counselor's Desk

2012-01-18T08:00:00Z

We are living through an incredibly turbulent economic period in our history. I see this every day in my work as a financial counselor here at Verity Credit Union. The fact is many Americans have not taken the prudent steps to alter their spending/savings habits. As it turns out, old habits are hard to break and many people continued to spend well beyond their means in spite of the lackluster economy. This is why, on average, members are coming to me with $40,000 in credit card debt, along with delinquent mortgages and car payments. Ouch!

I try to focus members on the fundamentals of “money management” which have been around for a long time. There’s really nothing new about the idea that we should all “live below our means.” The problem is that most people don’t sit down to formulate a personal/family financial strategy. People simply wing-it and suffer the consequences. That’s why I thought it would be helpful to offer you a short list of “action items” you can start working on today to help get you on the right track for 2012. Are you ready? Here goes:

Get Started – First and foremost promise yourself that you’re going to have fun examining your financial universe. My members experience a huge sense of satisfaction when they take control over their finances. It helps to think like a budget detective. If pretending you’re “The Pink Panther works,” that’s great!
Get Organized – Make a commitment to set up a space and a time, preferably one hour, once a week during which you will organize and examine your “data” (e.g. paystubs, receipts, utilities, credit card statements, tracking sheets, etc). Imagine you’re the CEO of your own company (aren’t you?) and your objective is to realize a profit in the long-term.
Get a Budget Worksheet – Next, find a basic budgeting sheet to work with. In my experience, if you haven’t done a budget recently (or ever!) over-thinking the numbers is de-motivating and you’ll give up. All I want you to do for now is get a rough idea about your budget. Gather together all the information you can on your monthly income and expenditures and fill in the blanks. Here’s a basic budget worksheet from About.com.
Get a Perspective – I find that people rarely know where all their money goes. I also know that people must work through this process of adjusting their numbers several times before they get a true perspective of their spending. So, at this point I want you to simply take a careful look at the “categories” of spending and see if things make sense. Some categories represent “fixed” costs such as your rent/mortgage, utilities, etc. However, it is to the other (often huge) category of discretionary spending that we now turn…
Get the ‘Tracking’ Bug – Here’s where the rubber really hits the budget-road: After you’ve worked with your budget for a couple of weeks, I want you to implement the most powerful budgeting tool ever: start tracking your spending! This applies to all of your discretionary purchases. Keep track of every single penny you spend on food for the next month. I like people to start with food because it’s part of our budget that we have a bit of control over AND, it’s where most families delude themselves about their spending! Carry a small notebook in which you can write down your cash expenditures and make sure you keep all your receipts. You can then use those numbers to more accurately fill in your budget. I guarantee that once you’ve mastered the art of tracking in this category, you’ll find it much easier to tackle clothes, sundries and all the other things you like to spend your money on!

Ultimately, the purpose of these first five steps is to put you on the road to financial stability. In future posts I want to discuss, in greater detail, how to be a more educated consumer, how to deal with financial problems and, hopefully, help you have some money left over at the end of the month!