Money Mindset Shifts
Your Finances Around You Need to Make to Turn
By d-mars.com
News Provider
any consumers are feeling financial strain after a challenging economic year in 2022. One in three Americans say they are struggling to get by or are in trouble financially, according to Lincoln Financial Group’s Consumer Sentiment Tracker. The study also found that people aren’t necessarily seeing any relief in sight, with 76% believing factors like inflation, market volatility and debt will worsen.
However, there are a few bright spots. Those who had specific financial goals last year were two to three times more likely to say various aspects of their personal finances improved. They were also three times more likely to say they did a great job on their overall financial wellness last year and twice as likely to be optimistic about their finances in 2023. So where should you start in creating and reaching your own financial goals?
“Lincoln’s research underscores the importance of taking a definitive approach,” said Ed Walters, senior vice president, Lincoln Financial Network, the wealth management arm of Lincoln Financial Group.
While financial goals don’t need to be complicated, you should be able to easily track and monitor your progress. Consumers’ wallets are stretched thin with many competing financial priorities, so now is a great time to get back to the basics,
Lincoln Financial Group recommends setting these three goals to help turn your finances around in the months ahead:
1. Develop and stick to a budget. Keep it simple. Start with fixed expenses like mortgage, rent, savings and car payments, then move to the more flexible expenses like groceries and entertainment. Instead of establishing a fixed amount, bucket the flexible expenses together and adjust how you allocate your money monthly to address your needs and plans for that month. Tap into budgeting calculators and other expense management tools.
2. Save some money from every paycheck. Now that you have a simple budget in place, take a few minutes to review those monthly expenses, from mortgage and car payments to morning coffee. Cutting a little bit here and there may reveal extra money to set aside. Those funds can be put toward an emergency savings account, employer-sponsored retirement plan or college fund, or be used to prioritize investments. You’ll be surprised how quickly a little bit adds up over time.
3. Work with a financial professional. Lincoln’s study found consumers who are advised by financial professionals are more successful in meeting their goals. A financial professional can help tailor a holistic plan to your specific needs, as well as educate you about various insurance and retirement solutions.
“It’s important that you’re honest with yourself about where you are financially and what your goals are,” said Walters. “With a little discipline, knowledge and guidance, you can have a strong financial year and see long-lasting results.”
Source: State Point Media
Rihanna Breaks Record to Become
Richest Super Bowl Headliner
By Joseph Green-Bishop Texas Metro News Correspondent
usical artists have been finding new ways to secure their incomes in addition to releasing songs and albums based on the times. Despite the shift in music, artists still earn payouts (albeit a lot smaller) from royalties – just like they would from physical copy sales. These streaming platforms pay the artists to put their songs in their library.
Artists do not deal with streaming platforms directly. Instead, they use a distributor who will then take care of getting their music to the platforms. In some cases, the record label is also the distributor. That apparently is affecting Rihanna and her business endeavors past music.
When Rihanna, the Barbadian-megastar and successful cosmetics and lingerie executive, took the Super Bowl LVII stage a week ago, approximately 100 million television viewers witnessed the wealthiest halftime performer in the history of the annual event.
With a net worth of $1.7 billion, Rihanna, who was born Robyn Rihanna Fenty, sits at the pinnacle of a Super Bowl list that includes Dolly Parton, Jennifer Lopez, Bruce Springsteen, Diana Ross, Beyonce, Madonna, Bruno Mars, Katy Perry, Gloria Estefan, Alicia Keys,
Bono, Dr. Dre, Billy Joel, Garth Brooks and numerous other world-famous performers, according to Forbes.
Jay-Z, himself a billionaire entertainer, described Rihanna as a “generational talent who has exceeded all expectations in every instance. She is one of the industry’s most prominent artists,” he said. This year’s Super Bowl was played on February 12th in Glendale, AZ. The event, held at State Farm Stadium, was the first time that both teams were led by an African American quarterback.
“It is awesome that Rhianna has accomplished so much at such a young age,” said Yolanda Frazier Gills, the founder of Frazier Gills, a certified tax resolution firm in Dallas, a former chairperson of the Oak Cliff Chamber of Commerce.
She is an example of wealth building, and of controlling her own destiny. We need more role models like her,
The 57th Super Bowl took place on February 12th at State Farm Stadium in Glendale, AZ. Apple Music partnered with the National Football League in producing the event, according to league officials. “Rihanna has been a cultural force throughout her career,” said Seth Dudowsky, an awarding-winning music executive, who is also the director of music for the NFL. “We are thrilled to welcome Rihanna to the Apple Music Super Bowl Halftime stage” Mr. Dudowsky said.
She joins Dolly Parton, Jennifer Lopez, Bruce Springsteen, Diana Ross, Beyonce, Madonna, Bruno Mars, Katy Perry, Gloria Estefan, Alicia Keys, Bono, Dr. Dre, Billy Joel, Garth Brooks and numerous other world-famous performers, according to Forbes, as the top tier acts of the halftime show.
Source: National Newspaper Publishers Association
The Met Gala in 2017 Danilo Lauria Wikimedia Commons
BEWARE OF PREDATORY LENDING
When Shopping for a Home
By Felicia Guidry Houston Black Real Estate Association (HBREA)
redatory lending practices are the fraudulent, deceptive and unfair tactics some people use to dupe consumers into mortgage loans they can’t afford. Burdened with high mortgage debts, victims of predatory lending find themselves unable to manage the upkeep of their houses. They struggle just to stay on top of their mortgage payments. Often, the strain is too much. They succumb to foreclosure and lose their homes, which often is devastating. Run down and vacant houses, the inevitable result of predatory lending, wreak havoc on neighborhoods. Property values fall. People move away. Neighborhoods that once were stable start to crumble. Something that has been so important for so many people lay in ruins. Everyone who lived in a neighborhood destroyed by predatory lending becomes a victim.
The United States Attorney’s Office has made combating predatory lending a priority. The Office is taking a comprehensive approach to addressing the problem of predatory lending through education, prosecution and remediation.
EDUCATION
An educated consumer is the predatory lending syndicate’s worst customer. Educated consumers know what loans are right for them and where to find them. The United States Attorney’s Office has prepared a brochure with some helpful information about preventing mortgage fraud. You can print it out, double-sided, and fold it in thirds to hand it out. Click here for the brochure. Click here for the brochure in Spanish. Share it with friends, neighbors, and anyone you think would benefit from the information.
PROSECUTION
The U.S. Attorney’s Office has prosecuted and will continue to prosecute the worst predatory lenders. The Office can use your help. Pay attention to what is going on in your community. If something looks suspicious, check it out. Report it.
Get help! There are scores of housing and credit counselors that can help you decide whether a loan is right for you.
Know your credit rating. Obtain a copy of your credit report.
Trust your instincts. If it sounds too good to be true, it probably isn’t true. Many predatory lenders are slick salesmen. They know how to talk. They don’t always tell you the whole truth. If a deal doesn’t sound right to you, walk away.
Ask questions, demand answers. Predatory lenders will try to fool you by making your loan confusing. If you don’t understand anything, ask. Demand an answer. Read everything. Get all the loan documents before closing. Don’t sign anything until you have read it. If there is something incorrect, fix it. If you’re confused about something, ask.
Don’t fall for a “bait and switch.” If what you read in your loan papers is not what you wanted, expected, or agreed to, don’t sign. Be prepared to walk out. Learn about your loan. There are many organizations that produce publications that can be helpful. We have listed some of them in this brochure.
Shop around. There are lots of people who may be willing to give you a loan. Most of them are honest, responsible people. Find them. Call as many banks as you can. Look in your newspaper’s real estate section for advertisements. Go to the library and search the internet; try “mortgage,” “mortgage rate,” and “mortgage companies.” Take your time. A predatory lender will try to rush you so you can’t ask questions. Take all the time you need to understand what your deal is.
Say “No.” Don’t let someone talk you into something you really don’t want or need. Also, it’s ok to change your mind.
Never let a contractor get a loan for you. If you are doing home improvements, a contractor may tell you that he can get a loan for you. Don’t let him. Find the loan yourself; it will be cheaper.
Don’t make final payment to a contractor until all the work is done. Some contractors may ask you to sign over checks to them or to sign so-called “completion certificates” before they finish the work on your house. Don’t. Make sure you’re happy with the work on your house before you turn over any money to a contractor.
Avoid pre-payment penalties. If possible, don’t take a loan that penalizes you for refinancing. You may get stuck in a loan that you can’t get out of.
Don’t lie. No matter what anyone else may tell you, it’s not ok to lie on a form, even a little. If you get a loan based on false documents, you may be getting in over your head. You won’t be able to afford the loan.
REPORT WRONGDOING. IF YOU LEARN THAT SOMEONE DID SOMETHING ILLEGAL, REPORT IT.
AGGRESSIVE SOLICITATIONS
Whose idea was it to get this loan? Did someone sell it to you? Be wary of anyone who came to you trying to sell you a loan. If you need a loan, shop around for it yourself.
LOAN FLIPPING
Loan flipping is pressuring you to re-finance your loan over and over. Before you refinance, make sure a new loan makes you better off. For instance, do not refinance a low interest loan into one with a higher interest rate. See a housing counselor.
HIGH FEES
Look at your Good Faith Estimate of Costs and your settlement sheet. Do you know what each fee is for? If not, ask. If your total fees are more than 5% of your loan, that’s probably too much.
PROPERTY TAXES
If you don’t save enough money to pay your tax bill, a predatory lender will try to lend you money for your taxes. You may want to have your taxes “escrowed.” That means that you will put aside some money each month for your taxes.
BALLOON PAYMENTS
A balloon payment is one very large payment you make at the end of the loan. Predatory lenders like balloon payments because they can tell you that your monthly payment is low. The problem is that you may not be able to make the payment and will need to re-finance. You’ll need a new loan with new fees and costs.
Consolidating debt. It’s not always a good idea to pay off your credit cards with a mortgage loan. If you can’t pay your credit cards, it’s almost impossible for someone to take your house. If you consolidate, however, your house is collateral. Consolidating means you risk losing your house to pay your credit cards.
Many government organizations publish consumer materials about predatory lending online, so be sure to consult those for more information.
Source: U.S. Department of Justice Felicia Guidry is 2023-24 President of the Houston Black Real Estate Association (HBREA).
RED FLAGS
