Syracuse Professor Boyce Watkins speaks on ABC News about Love and Money

by Dr. Boyce Watkins, Finance Professor - Syracuse University

As a Finance Professor, I find it incredibly ironic that many people get married without talking about money. They talk about every kind of compatibility from emotional, to spiritual, sexual, and professional, but they seldom take the time necessary to ensure that they can tolerate the idea of sharing their financial life with a person who may not be on the same page. This problem is compounded in black relationships, where many women describe economic hurdles as one of the reasons that black women have trouble finding the right mate.

 

Click to read more

Haitian Earthquake: Wyclef Jean’s Charity Being Questioned by Authorities

Haiti's musician Wyclef Jean, left, arrives at the airport in Port-au-Prince on Wednesday, Jan. 13, 2010, the day after a 7.0-magnitude earthquake hit his country. (AP Photo/Lynne Sladky)

(AP)

Groups that vet charities are raising doubts about the organization backed by Haitian-born rapper Wyclef Jean, questioning its accounting practices and ability to function in earthquake-hit Haiti.

Even as more than $2 million poured into The Wyclef Jean Foundation Inc. via text message after just two days, experts questioned how much of the money would help those in need.

"It's questionable. There's no way to get around that," said Art Taylor, president and chief executive of the Better Business Bureau's Wise Giving Alliance, based in Arlington, Va.

Taylor reviewed Internal Revenue Service tax returns for the organization also known as Yele Haiti Foundation from 2005 through 2007. He said the first red flag of poor accounting practices was that three years of returns were filed on the same day — Aug. 10 of last year.

In 2007, the foundation's spending exceeded its revenues by $411,000. It brought in just $79,000 that year.

click to read.

A Black Professor Gives His Perspective on Black Love

Brought to you by The Great Black Speakers Bureau - The #1 Black Speakers Bureau in the world.

To get financial advice from Dr. Boyce, please visit www.DrBoyceMoney.com.  To see video commentary from Dr. Boyce, please click here.

Dr. Boyce Watkins

www.BoyceWatkins.com

FYI: I should be on the NPR show "Tell Me More with Michel Martin", a journalist for whom I have tremendous respect.  We recorded today with Shelby Steele, a conservative scholar out at Stanford and another scholar named Jon Powell, at Ohio State.  The conversation is interesting, and I recommend you give it a listen.  You can learn more about the show at this link: http://www.npr.org/blogs/tellmemore/.

I also got another call yesterday from "The Big O"...yes, you know who I am talking about.  Apparently, there is some interest in my Financial Lovemaking Book.  I'll keep you posted on that one, since I am not 100% sure if my demographic matches that of the Great Ms. Winfrey.  While I feel that Financial Lovemaking can work well for her audience, my alignment with the hip hop community may make for an awkward fit.  The fact that I engage in critical analysis (meaning that no one is 100% good or 100% bad) means that I sometimes make enemies in this game because of my refusal to kiss anyone's butt too much.  But I do give respect where it is due, and I consider Oprah to be an amazing role model for all of us.  The same goes for President Obama. 

In light of the fact that Valentine’s Day is coming, I was thinking about the whole idea of love.  I must also admit that I thought about love when I noticed the singer Chris Brown might have ruined his career in this mad situation with Rihanna (apparently, there may be some abuse in that relationship, I’m not sure).  Either way, I think that anyone who has been young and in a relationship understands how stupid and crazy things can happen.  I’ve never considered Chris Brown to be a bad person.  But he may have done a bad thing.

Seeing the huge loss that these two young people may have imposed on their lives (Chris and Rihanna), led me to reflect on love and what it means to me.  Here is my personal perspective on love….love it or hate it (haha).

What Love Should and Should Not Be

By Dr. Boyce Watkins

www.BoyceWatkins.com

I’ve lived a bit of life and made my share of mistakes.  But as a professor, I am trained to learn from poor choices and grow from them.  Most processes have a purpose and a pattern.  If you think hard enough and honestly confront your failures, triumphs and observations, you can usually walk away with a bit of insight.  The term “No pain, no gain”, can certainly be applied in the game of love, and I intend to gain from my own personal portfolio of blissful heartache.

So, I’ve come up with some “Rules of Love” out of respect for Valentine’s Day.  It’s not scientific and not a fit for everyone.  But it comes from the head, the heart and all the other body parts I can’t mention in this article.  So, at least you know it’s sincere.

Love should be RESPECTED: One of the silliest things I see in some relationships is that people seem to be most interested in chasing the person who loves them the least, while kicking their greatest admirers to the curb.  They choose the best option they can GET instead of the best option they’ve already GOT.  There is something that people love about a challenge.  It can be a natural instinct to equate kindness with weakness and easy access with a lack of value. Many of us are guilty of crying over the person who ignores us and ignoring the person who cries for us.  Someone who gives you their heart can also take it away, so we must respect those who’ve truly earned it.

Love should be EXPECTED:   Part of the reason that some of us spend our time chasing the loser who doesn’t love us is because deep down, we feel that someone who cares for us must be flawed or unworthy of our time.  On the other hand, it is easy to feel sorry for yourself when you see that the one you usually want doesn’t want you back.  The truth of the matter is that if someone disrespects the appreciation you are showing toward them, then they don’t deserve your love anyway.  You should love yourself enough to walk away from those who choose not to treat you as you deserve to be treated.

Love should be given to YOURSELF: Part of demanding the love that you deserve is engaging in the difficult art of SELF LOVE.  Many times, we look in the emotional mirror and see blemishes, flaws, faults, mistakes and the ugliest sides of who we are.   Rather than greeting the world with our heads held high, we keep our heads down and hope no one notices that we are not as good as everyone else.  Loving yourself is similar to learning to love another person:  there is a point where you must simply accept the flaws.   You must realize that you are no more defective and no more perfect than everyone else, and that you too deserve to be happy.  If you can’t love yourself, then it’s damn near impossible to truly love someone else, since you are only offering them what you perceive to be damaged goods.

Love is meant to be CELEBRATED:  I’ve admittedly never been able to fully grasp the concept of homosexuality, but I’ve never had a problem with gay marriage.  One thing I believe is that love was created by GOD: that includes love between a man and a woman, a man and a man or a woman and a woman.  There should not be religious, social or racial boundaries imposed on meaningful love, for we do not get to choose the shape, size or complexion of the package.  When God blesses someone with such a powerful connection, this love should be celebrated by all of us and not judged or held in contempt.   Melting someone’s halo of happiness by dousing it with a flood of hate is a counter-productive use of our time and a wasteful spiritual endeavor. 

Valentine’s Day is meant to be YEAR ROUND:  You should not need a special holiday to show someone you love them.  You should tell them something good, positive, and affirming every time you see them, because this will make that person feel good.  You should not need corporate America’s permission and some hyper-commercialized holiday as your excuse to show affection.   I encourage you to say ten nice things per day to people you care about, which may include complimenting them on their clothes, their hair, their personality, their beauty or their presence.  It will make them feel good and leave a lasting psychological impact.  Our words are “emotional money” and we should be consistently making donations.

Love should be REFLECTIVE:  The hardest way to get what you want is to selfishly pursue it, take it or relentlessly absorb it.  That’s like waiting for your paycheck and never showing up for work.  If you are in a truly loving situation, you get what you want by REFLECTING IT.   If you WANT more success out of life, you GIVE more hard work.  If you WANT better grades, you GIVE more time to the library.  If you WANT more appreciation from your partner, you GIVE more attention and affection.  If you choose to share your love with someone who deserves it, then they will give the love right back to you, with interest.  Like a healthy economy, the cycle will become recursive and productive trade increases the value of each partner’s “Life Portfolio”.   In pleasure, pain and everything in between, to get more, you must give more.  You must also make payments in the currency deemed most valuable to your partner.  There’s no way around that fact.

Love should be PRACTICED:  Love is not just a feeling, an emotion, a whim or something that makes your skin shiver.  Loving someone is a DELIBERATE ACT and a series of habits designed to sustain and maintain the relationship you have with one another.  The work of the greatest writers in history was not always driven by inspiration and a desire to write…..sometimes, it was the act of sitting down each day and forcing themselves to write which eventually inspired them to do their greatest work.  In other words, love is a series of proactive habits, choices and behaviors that correlate with your desire to have a meaningful and stable relationship with another person.  It’s not something you just randomly “fall into” and “out of”…..it is something you choose to do.

Love should be CONTEMPLATED: When it comes to dating, I tell my daughter and God daughters the following: “If a man is not someone you can see raising your children, then don’t even go out on the first date.”  They look at me like I’m crazy, but the point is simple:  While you cannot easily choose to release yourself from the psychological grips of love, you have some ability to choose who you are going to fall in love with in the beginning.  Most of us don’t meet someone and decide that we are going to be with this person for years.  There is always the first glance, the first date, the first kiss, the first touch, and before you know it, you’re stuck in a situation that doesn’t make any sense to you.  So, if you don’t start with point A, you can never reach point Z.  This makes the most sense when you can see that point Z is not the place you want to visit with this particular person.

Love should be REMEMBERED: A big challenge for many young or single people (and even those who are married) is that we spend our time chasing the love and affection that is most intriguing to our hormones, while ignoring the love that is most tried and true.  A man might spend hours on the phone with a pretty lady who doesn’t even like him, but simultaneously ignore his grandmother who would gladly give her life for him.  Valentine’s Day is not just the day you send “sweets to your sweetie”.  It is also the day you shower love on your mother, brother, sister, father, best friend, homeboy, children, grand parents and all the people who will love you long after your sweetie has become sweet on someone else.   In the city of love, new buildings are shiniest and most appealing.  But the older buildings are the sturdiest and most enduring.  

Love is LIFE:  Not only does the act of love create and sustain life, it is also the greatest part of our journey through life.  We may or may not remember or be inspired by our professional or educational achievements, but we have an immediate and powerful emotional reaction when we reflect on the love we’ve experienced over the years.  Thinking about children, family or ex-lovers can create an emotional response that can’t be matched by a corporate job or advanced degree.  I tell my students that one of the most important decisions they will ever make is who they choose to spend their lives with.  I’ve seen many people drive themselves down the path to hell by choosing to share their love with someone who deserves it the least.  Like the most amazing roller coaster, the journey of love is long, complicated, exciting, scary and fulfilling.  So, while we’re on this journey, we should make sure we turn on the GPS.

Happy Valentine’s Day and I hope this day inspires you to find the love that exists in your life.  It’s all around you if you learn to look for it.  Even in an economy like this one, the love in your life can make you a billionaire. 

Dr. Boyce Watkins is a Professor at Syracuse University.  For more information, please visit www.BoyceWatkins.com.    

Technorati Tags: michel martin,tell me more,black love,black authors,black professors,african american scholars,african american professors,black scholars,african american authors,african american love

How Consumer Confidence Impacts Economic Activity

Dr. Boyce Watkins
www.Boycewatkins.com

If you wish to see a video explaining consumer confidence, which is one of the driving issues behind the recent moves in the stock market, please click here.

This has been an interesting week, with auto execs showing up on private jets to request a bailout from the government and the Dow moving to below 8,000 points for the first time in 5 years. I still hold to the fact that this is a great time to get into the stock market if one has never done so before, especially if you are under the age of 50. By the way - please visit our sponsor, GreatBlackSpeakers.com if you are interested in hiring a top notch African American speaker or seeking to become one.

Take care!
Boyce Watkins
http://www.blogger.com/www.boycewatkins.com
Click here to join our money advice list.

=====================================================================================
If you listen carefully to the words of Treasury Secretary Henry “Hank” Paulson and Ben “Big Ben” Bernanke (chairman of the Federal Reserve) you might notice a trend in their language. The word “confidence” is used a lot when they speak. Many of their monetary proposals are not necessarily valuable for their financial power, but also for their psychological power.

Some of you may wonder what confidence has to do with anything. After all, if you’re broke, confidence doesn’t exactly put money in your pocket. If you’re 100 pounds overweight, confidence won’t help you win the Olympic 100 meter dash. When you are flying on a crashing plane, confidence doesn’t keep the plane from slamming into the ground. But confidence is important to an economy, and one of the most significant drivers of economic growth. In fact, over confidence has driven US economic growth for the past 10 years. Here are some reasons that confidence matters in the minds of Hank and Big Ben:

1) Confident consumers spend money

If you think you might lose your job next year, are you going to max out your credit cards? I certainly hope not. If you are worried about being able to make ends meet, are you going to buy that big screen TV? Not unless you want your wife to leave you. So, even if it doesn’t hold any truth, the mere forecast of a weak economy is enough to make many Americans hold off on consumer spending, one of the great driving forces of the American financial system.

2) Confident companies invest money and hire workers

Investments involve risk. Your hunch may work out, and it may not. If you don’t believe the economy is getting better, you are not going to consider taking that risk. No one plans to go to the beach if the weather man says that it’s going to rain. When economic rain is in the forecast, companies pull out their umbrellas and hold off on new projects. This reduces the number of jobs in the economy, because nearly every job created in America is the result of someone making an investment.

3) Confident Americans do not take their money out of banks

In case you didn’t know, your bank does not have your money. Your money is part of a large base of financial capital that is loaned out to individuals and consumers seeking to get a good return on their investment. So, without investing, your bank would have no interest in paying you any interest at all. So if, say, 30% of all customers of the same bank decide to get their money out at the same time, the bank would have serious financial problems. It is a lack of confidence that could cause customers to “run” on their bank and take out their money.

4) Confident investors keep their money in the stock market

The stock market is a place where fortunes are made and lost. Some part of that fortune is psychological, given that no asset can have a value which exceeds that which someone is willing to pay for it. When investors lose confidence, they take their money out of the stock market, and reductions in demand for stocks lead to massive paper losses in the market. Additionally, most Americans are “momentum traders”, meaning that when the market goes up, they tend to buy more, and when it goes down, they tend to sell. History shows that it is actually the opposite approach that tends to work best.

5) Confident banks make loans

Banks have to keep a certain portion of their funds on hand at all times to meet federal requirements. If they are fearful that their customers might come and demand their cash, they hold onto their capital to ensure that it is available. If they are afraid that their borrowing customers will not be able to repay loans due to a weak economy, they also hold back on issuing new loans. The truth is that when economic forecasts are grim, conservative bankers become even more fearful than the rest of us.

The bottom line of this article is that confidence matters. So, the next time you hear Ben Bernanke give a speech, you can be confident that he is going to use language that makes you feel more secure. Whether you choose to believe those words is up to you.

Dr. Boyce Watkins is a Finance Professor at Syracuse University. He does regular commentary in national media, including CNN, BET, ESPN and CBS. For more information, please visit http://www.blogger.com/www.boycewatkins.com. To join our money list, please click here.

Building Consumer Confidence - Dr. Boyce Watkins Thoughts

Dr Boyce Watkins Speaks on the Financial Crisis

Dr. Boyce Speaks on Managing Bill Collectors

One of the groups that was not bailed out during the recent financial crisis has been the American consumer. Congress took care of the firms on Wall Street, but they didn’t take care of the millions of Americans forced to confront the realities of bankruptcy, foreclosure and uncomfortable confrontations with menacing bill collectors. It appears, sadly, that every man and woman must find their own way through this financial tragedy.

Bill Collectors really want their money, like the rest of us. Some of them seem to feel that it’s O.K. to resort to flat out thuggish intimidation to get their money back. That might work on The Sopranos, but it shouldn't work in real life.

Part of the reason abusive bill collectors can have their way with the public is because many citizens do not know their rights. Bill collectors prey on the uninformed in a terrible way: They may threaten to have you arrested, harass your relatives, call all hours of the night, and engage in other types of atrocious behavior to get their money out of your hide.

One woman successfully sued a rogue bill collector after he called her repeatedly with threatening language. The woman, a senior citizen, was told by the man to "Stop with the sob stories and pay your god d*m bill!" This kind of behavior is not acceptable, and bill collector harassment doesn’t have to keep you up at night.

The Federal Trade Commission states that complaints against bill collectors are rising, reaching the highest level they've seen in the past 3 years. Most of the complaints focus on vulgar language, trying to collect more than the amount of the true debt, and extra fees, such as court costs.

You have rights that can protect you from bad and malicious bill collectors. You want to keep these in mind as you work yourself out of debt:

1) There is something called "The Fair Debt Collection Practices Act". If you are not familiar with this document, get familiar with it. You can read it by clicking here.

2) A bill collector cannot contact you at work if your employer does not approve of the contact. Let the bill collector know that this is the case and they must legally stop contacting you at your job.

3) Bill collectors cannot call you before 8 am or after 9 pm. The only exception is if you give them permission to do so.

4) A bill collector can only contact your friends and family if they are trying to find a way to get in touch with you. However, some of them may do this in order to harass or embarrass you. If that is the case, you may want to tell your friends to tell the bill collector, "She does not live here and I do not know how to get in touch with her. Please don't call here anymore." Then, get the bill collector's information from your friend and reach out to them when you can.

5) You can get bill collectors to stop contacting you altogether by sending them a letter telling them to stop. You still must pay the debt, but they won't be calling you during dinner.

6) The bill collector cannot curse at you or use foul language and they must tell the truth about how much you owe. They cannot threaten to sue unless they are serious about it, and they can't touch your 401k or IRA.

7) If the bill collectors call you, you can demand that they send you a written notice of the amount you owe and who you owe the money to. If you do not believe that the debt is yours, you can write a letter to them stating that this is not your debt. They must then send you proof that the debt is actually yours.

If you feel that a debt collector has violated any of these rules, you can contact the Federal Trade Commission at www.ftc.gov. Remember that you are not powerless in this situation.

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of Financial Lovemaking 101: Merging Asset with Your Partner in Ways that Feel Good. He does regular commentary in national media, including CNN, CBS, NBC and BET. For more information, please visit www.BoyceWatkins.com. This information does not constitute legal advice. For legal advice, please consult your attorney.

Dr Boyce Watkins Slams Rush Limbaugh

Black News: Boyce Watkins Explains Financial Crisis on NPR Pt 1

Money Tips for Black Women? A Financially Fit Divorce?

by Dr. Boyce Watkins
www.BoyceWatkins.net

I just saw an article today on "How to Leave Your Husband". The article focuses on how women can have a financially fit divorce. I find it amazing that we have gotten to the point that these are the kinds of articles that appear on the front pages of major media outlets. This speaks well to the state of love in America.

The article also seems to imply that beyond the 50% of all Americans who end up in divorce, there are many others who would be divorced if only they could find a way to get it done efficiently. Since when did the bliss of love make us so unhappy?

When I wrote Financial Lovemaking 101, one of the objectives I had in this book was to teach couples how to be jointly responsible when it comes to money. The truth of the matter is that being financially smart and responsible also increases your ability to be financially independent. Therefore, one might conclude that if you end up as one of the millions of Americans who chooses divorce, you might be able to erase your mistake without destroying your bank account.

I once counseled a couple that was nearing retirement. The couple had modest resources, but the wife was quite determined. Over a period of 10 years, she worked overtime and saved her butt off to pay off the family's credit card debt. She also looked into retirement plans on her job, putting thousands into a 401k plan to prepare for the family's golden years. Her husband had other plans. Without his wife's knowledge, he maxed out all the credit cards to start a business. He then withdrew all of the family funds from the retirement plan. The business failed, and his wife was in tears. She wanted to leave her husband, but she was financially drained. What's worse is that staying with her spouse would not have made her any more financially secure.

The reality is that money and love are linked in ways that we never envisioned on that first date. A person's beauty, body shape, and quality of sex become secondary to how well they pay the mortgage and put food on the table. Then, when we find that the love is gone and we want to move on, money becomes the barrier between freedom and misery. Planning ahead financially can be the way to plan your escape route, if that is what you choose to do.

The irony of it all, however, is that being financially intelligent and responsible reduces one major source of conflict in your marriage. It also allows you to make a stronger contribution to the overall well-being of your family. Therefore, by being financially intelligent and independent, you are more likely to have a successful marriage. Kind of paradoxical, don't you think?

I don't judge those who get divorced, never get married or are trying to get divorced. I only say that whatever you do, make sure you do it right. Your love depends on it, and so does your LIFE.