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Tag: Dr. Boyce Money

  • Nicolas Cage Money Problems: Balling Without a Budget

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    I grow weary of the fact that whenever the media presents an entertainer going broke, we almost always see a black man. Well, the tables do turn, even on the best of them. Actor Nicolas Cage is allegedly having major financial problems, having his property foreclosed and admitting in court that his former business manager may have milked him of millions of dollars.

    In a major court battle, the actor lost two of his homes worth a combined total of $6.8 million dollars. Cage owes over $5 million in mortgage payments and more than $150,000 to the city of New Orleans in real estate taxes. Cage is also suing Samuel Levin, his former business manager, claiming that Levin was responsible for his financial demise.

    Here are some quick and dirty thoughts on the plight of Nicolas Cage:
    1) Is there a change in the language? I noticed that a CNN article about Cage mentions the recession as one of the reasons that Cage is struggling financially. However, most commentary about the financial problems of NBA star Antoine Walker attributed his woes to financial irresponsibility. Not to accuse anyone of racism, but I wouldn’t be surprised if it were difficult for the world to imagine the great Nicolas Cage as being financially irresponsible.

    2) Hollywood money is not what it seems to be: By having five major projects slated for 2010, it’s tempting to believe that Nicolas Cage is going to be financially free by the end of next year. Not so fast. After actors finish paying the agents, lawyers, managers, and the IRS, they may only get 30 – 40% of their total pay package. That means that if Cage gets $10 million for his film, he is only going to see three or four million dollars of that money.

    Whatever the case may be, it does appear that Nicolas Cage was certainly living it up. Few A-list actors are as blockbuster-worthy as Cage, so there is no excuse for him to ever go broke. But given that Cage has purchased personal islands, castles, and other extravagant items, he put himself in a situation where he needed a lot of money in order to simply stay afloat. Michael Jackson had the same problem during his life, as he was easily spending five to ten million dollars per month. No matter how much money you have, you can always go broke. We should all live beneath our means.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Tom Joyner Morning Show, Roland Martin, Money and Power

    This morning I had the great pleasure of having a conversation with my respected colleagues, Tom Joyner and Roland S. Martin. I have always loved the Tom Joyner Morning Show. My respect for Tom came when I found out that he once commuted daily between Chicago and Dallas in order to host shows in both cities. I appreciate anyone willing to sacrifice to reach their goals. Roland Martin has an equally compelling story about how he was forced into bankruptcy in order to become successful.

    The truth is that there are a whole bunch of people who want success, but they usually want it for free. These brothers understand that you usually have to pay a high price to get what you want.

    We were discussing the case of Heather Ellis. Heather Ellis is a 24-year old college student now facing 15-years in prison after being accused of cutting line at a Walmart. We are planning a rally for Heather in Kennett, MO on November 16, with thousands coming from around the nation in order to save her life. Tom Joyner, Roland Martin, and Michael Baisden are just a few of the names of brothers and sisters around the nation willing to step up to tell Heather’s story to the public.

    After the show was done, I called my assistant and confidant Shauntay, in order to talk about the events planned for the day. Shauntay is a stern reminder to me that you are only as good as the people who work for you, and she is the greatest assistant on Earth. During our conversation, Shauntay asked me, “Did you notice how they seemed to get nervous and rush you off at the end?”

    I said, “Yeah, I noticed that. But I don’t blame them, I might have done the same thing.”

    Why was I rushed off at the end of the segment? It all has to do with Walmart being one of the key corporate sponsors for the Tom Joyner Morning Show. During the interview, I first mentioned that it was reported as far away as Memphis that Walmart employees were being asked not to discuss the Heather Ellis incident. Tom started to deflect the conversation away from the merchant.

    “Well, that could have happened in any store, right?” said Tom.

    I then went on to explain that, while it could have happened in any store, there was no getting away from the fact that it happened in Walmart: A Walmart employee was the one who chose not to serve Heather after accusing her of cutting line, the family reports that nearly every Walmart employee involved in the incident has been transferred to another store, and there are Walmart employees on the affidavits filed after the incident took place. There is no way to disconnect Walmart from this incident.

    Unlike our supporters in Detroit, who are ready to boycott Walmart and stage a complete “black out” of the store, I have not asked for such a thing. Instead, I’ve only requested that Walmart use its influence to help Heather during her trial. I honestly believe that one sincere phone call from the right executive can make this situation go away. A daughter of a pastor, in college, with no criminal record is hardly the kind of thug that should be rotting away in the penitentiary. Anyone can understand that.

    This discussion of The Tom Joyner Morning Show is not a negative reflection on the righteousness of Tom Joyner or his choice of having Walmart as a corporate sponsor (if it were Wells Fargo, then we might have an issue). The incident is reflective of how the power of media is driven by corporate sponsorship. Given that corporate sponsors controlled by the descendants of the historical oppressors of black people are financing most African-American media, the ability to pursue true and meaningful activism is sometimes muted. In other words, nobody disrespects their daddy, especially if their daddy is the one putting food on the table. The life of one black woman is not, to some, worth the loss of millions of dollars in corporate money (I do not agree with this assessment). One of the limitations of capitalism is that it forces us to put a dollar value on human life. I personally think human life has infinite value, and that is why I am fighting for Heather.

  • Rihanna and Chris Brown: The Financial Value of Rihanna’s Pain

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    I hated what Chris Brown did to Rihanna. I was angered, disappointed and irritated by the fact that many are quick to forgive egregious behavior on the part of celebrities, and a hit song can forgive all sins. At the same time, celebs are just like the rest of us, full of complexities that the world may never come to understand. Rihanna has walked away from Chris and she is now telling the entire world how bad of a man he is, and we’re all taking her side.

    The problem for Rihanna, however, is that her actions aren’t making much sense.

    Rihanna’s recent whirlwind media tour has included the likes of ABC News, MTV and other major media outlets. Throughout this tour, she has allowed the world to enter into her dark reflection on the relationship she had with Chris Brown, with that reflection seeming to have almost no productive purpose. I am not sure why the he-say/she-say between two 19-year old kids should be the concern of the nation. But then again, I am sitting here writing about it, so I am as guilty as everyone else.

    The truth is, clearly, that Rihanna could have used this incident as a teachable moment and then moved on with her life. But that wouldn’t be nearly as profitable as doing a media tour attacking Chris.

    The point here is clear and quick:

    A personal tragedy is usually leveraged in order to sell a book or album: Did you notice how tennis star Andre Agassi revealed his drug addiction when his book was released? What about when Mackenzie Phillips announced that her father, well-known performer John Phillips, molested her as a child? Stories like this are a great way to get people to read your book or buy your records. Notice that it took Rihanna several months to start talking about Chris Brown in public. That was probably because she had to finish up her tracks. By the way – her album is scheduled for release in a few days. The Chris Brown story will be the primary driver of her album sales.

    Now, I am a Finance Professor and a capitalist. Well, I am mostly capitalist, to a point. I can understand why Rihanna’s handlers are milking the cow till the udders fall off. The story is interesting and like hungry kids in a candy store, we are salivating to find out more about what happened. But the truth is that we only know most of what occurred, not everything: All we really know is that they got into a fight and Chris won. But we also know that Chris lost the war because he is the one who got arrested. Is there anything else we need to know? Is there anything new that Rihanna is telling us other than vague and “clearly objective”(LOL) things like “his eyes had no soul.” What the heck does that mean anyway?

    While we can respect Rihanna’s decision to use this situation as a chance to build her brand (similar to when Juanita Bynum was allegedly beaten by her husband and then declared herself to be “the face of domestic violence”), the truth is that we probably shouldn’t fall for the hype. We should realize that this was an unfortunate situation,with many lessons to be learned about domestic violence in the black community. Rihanna will sell her records, and Chris will have to rebuild his own brand. But at the end of the day, this media whirlwind created by Rihanna is, for the most part, an opportunity to not only punch back at Chris, but a chance to make a little dough in the process.

    As the rapper TI might say, “It is what it is.”

    Dr. Boyce Watkins is a Professor at Syracuse University and author of the book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Secretary Causes Pepsico to lose $1.2 Billion Dollar Lawsuit

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    It’s not easy to work for me: I can be demanding, overly focused and intense about everything I do. I believe that reaching extraordinary goals requires you to always put forth extraordinary effort. Many interns have come and gone, after realizing that they can’t keep up with our crazy pace. The ones who make it through the storm become invaluable parts of my family; like body parts or internal organs. I truly can’t live without them.

    That is why I cringed when I saw the recent story about how Pepsico lost a $1.26 Billion dollar judgment because the secretary forgot to pass the paperwork onto the appropriate people. As a result, the company lost the lawsuit on a default judgment for failing to appear in court.

    Apparently, it was a simple oversight that could have happened to anyone. But I am sure that the secretary is in hot water and probably even fired. Cases like this are reminders of some important principles you should remember when you are in business for yourself or working for another person.

    1) Trust is everything. For me, trust starts on the first day of the job interview. If someone arrives late, that means that I can’t even trust them to get to meetings on time. If I can’t trust you to get to meetings on time, then there is no way on earth that I am going to trust you with a valuable contract. Consistency builds trust. You must always find a way to be consistent when working with or working for other people.

    2) You are only as good as the people who represent you. This statement implies two things: That you should get good people around you and that you should respect those who work for you. Hiring lazy relatives or friends who aren’t disciplined enough to do the job is a recipe for disaster. I have plenty of friends with whom I have good relationships, but I would never do business with them because I know that some of them are unreliable. Those who I choose to be part of my team are not reminded that I am the “big boss.” Instead, I let them know that I am in charge, while showing appreciation for their efforts every chance I get. Being respectful of others is how you truly earn respect without having to step on people in order to maintain power. If you rule with an iron fist, your subordinates will eventually plot to destroy you.

    3) Excuses need not apply. There are two types of people in this world: those who deliver excuses and those who deliver results. All of us run into obstacles, but the most effective people are the ones who find a way around those obstacles to get the job done. Those who regularly deliver a basket of excuses to somehow exclude them from their assignment are going to be replaced by someone who simply gets the job done. The truth is that in the world of business, even if you have a good excuse, the client is going to still take their business away from you. That’s just the truth.

    4) Learn to forgive. My most trusted partners and subordinates have made horrible mistakes and cost me money in the process. While my first temptation was to raise the fire of hell, I realized early on that this was not the best long-term solution. Instead, I simply ate the loss and assertively pursued a joint remedy for the problem at hand. Having power doesn’t mean that brute force tactics are always the best strategy. You might lose someone valuable if you don’t know when to show compassion. A good employee already feels bad enough about their mistake; you don’t have to rub it in further.

    I am not sure how Pepsico is handling the situation with the secretary, since some excuses are simply unforgivable. But while we can all understand being outraged by losing a billion dollars, we should also know not to sweat the small stuff.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and a leading African American keynote speaker. To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Obama’s Fed Chairman Makes Racially Ignorant Remarks: Dr Boyce Analyzes

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    I’ve always had mixed feelings about Federal Reserve Chairman Ben Bernanke. I feel that he is better than the previous chairman, Alan Greenspan, but the Fed Chairmanship (like the presidency) is almost never given to the right man. Just the fact that it is almost always given to a man is problematic enough, and the truth is that only white men need apply for the job.

    Well, when you are limited in your option pool for the top job, bad leadership and flat out ignorance can sometimes be the result. While Fed Chairman Bernanke might know some nuts and bolts about economics, he appears to be shockingly misinformed about economic disparities between blacks and whites. His embarrassing and highly inappropriate statements at Morehouse College serve as a significant case in point.

    In a recent interview at Morehouse, the Fed Chairman was asked what he felt to be the reason for the wealth gap between blacks and whites. In response, Bernanke said that the gap was due to a lack of “financial literacy” and “financial education” on the part of African Americans. That’s all he mentioned.

    What? Sorry Ben, but did you ever hear of this little thing called “slavery”? What about this other thing called “Jim Crow laws,” which made it nearly impossible for African Americans to pass wealth onto their children? Do you truly believe that whites have the bulk of American wealth because they were simply harder working and more intelligent in their wealth building strategies? Do you know how silly you sound?

    According to the 2007 Survey of Consumer Finances, the median household wealth of white Americans is 10 times greater than that for African-Americans. And in spite of what the Fed Chairman might believe, it is not due to the fact that black people are financially ignorant. Rather, it is due to leaders such as Bernanke who refuse to acknowledge how 400 years of racially-biased wealth distribution can impact structural and financial inequality.

    The other point that Mr. Bernanke fails to mention is that white American saving and investing habits are incredibly problematic as well. The recent financial crisis was due to the fact that the American savings rate had become negative for the first time since the Great Depression. Additionally, Americans (not just black people Ben) were borrowing money for homes they could not afford and not preparing for retirement. So, the idea that Chairman Bernanke would sum up the black/white wealth gap as “White people smart….black people illiterate” is a shocking disappointment and a glaring reminder of the fact that our economic captains in the Obama Administration have almost no understanding or respect for the unique economic challenges of the African American community.

    I won’t even get into Obama’s appointment of Lawrence Summers as Treasury Secretary, given that Summers disrespected Dr. Cornel West, one of the most significant black scholars in American history. During a spat when Summers was president of Harvard, he criticized Dr. West’s work as not representing “appropriate” scholarship. Translation: you are doing something that white scholars don’t understand, which thus implies that you must be inferior – I get it all the time here at Syracuse, a school that hasn’t tenured a black man in Finance in their entire 140-year history – perhaps we lazy black folks are just not good enough. Professor Summers is also the one who implied that women might have a natural deficiency in their ability to understand mathematics. The idea that Obama supports individuals who continue to embrace mindsets reflective of white male supremacy should be problematic to us all. The financial team within his administration needs a makeover, and their “expertise” and qualifications should be questioned by the American people.

    A note to Chairman Bernanke: The present around us has been created by a set of tasks that were performed in the past. If you are only able to see wealth disparities through a lens created in the year 2009, one that is blurred by your own biases as a white male in an elitist profession, you are missing 99% of the picture. To cite African American ignorance as the sole driver of wealth gaps in America is a reminder that our leadership still thinks of black people as second class citizens. Rather than presuming cultural superiority on the part of whites, why not engage in creative and intelligent policy analysis that might actually fix the problem that America has created. It was not the flaws of black America which created structural inequality; it was poor decision-making on the part of the very institution with which men like Bernanke, Summers and Obama are employed. It’s time for some personal responsibility.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr Boyce commentary delivered directly to your email, please click here.

     

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  • Professional Women and their Love Lives: Money and Matrimony Sometimes Conflict

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    I have become obsessed recently with trying to figure out how successful black women find a way to get it all done. Now, by “successful,” I’m not referring to the woman who works 70 hours a week while seeing all of her relationships die in the process. I am referring to the women who do some of the most important jobs in our society (nurturing children and maintaining their relationships) while finding success in their professional lives. Call me old fashioned, but I think that there is no job in the world more important than being a mother.

    This week on Financial Lovemaking, S. Tia Brown and I speak with Dr. Towanna Freeman, a life coach and women’s empowerment guru, about what it takes to maintain love, life and everything in between. We ask Towanna the hard questions about her business and her family and try to determine the formula for keeping it real and keeping it realistic.

    One thing that Towanna makes clear is that you don’t have to be perfect to be happy. She also reminds us that successful people are not successful all the time. The key is having the right mindset and always striving for success, whether you are feeling successful or not. I can personally say that I fail at roughly 90 percent of everything I do: But it’s striving for that last 10 percent which helps to set me apart.

    The interview with Towanna is below. Enjoy!

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, “Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Mistakes Couples Make When Mixing Love and Money Together

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    As I prepare for an appearance on ABC News to talk about money and relationships, I thought I would share the answers to some of my questions that were asked of me by the producers. Perhaps this can be valuable information that can be used to help others. There is more in my book, Financial Lovemaking, which goes deeply into the struggles that couples have when negotiating the challenging task of merging love and money together.

    1) What do Love and Money have in common?

    People think it’s taboo to mix love and money in a conversation, but it’s not. It’s actually essential that you do so. Loving together means living together. In most relationships, you spend more time talking about functional aspects of life, such as paying the bills and purchasing decisions than you spend on “lovey-dovey” stuff. Also, like making love, merging your assets involves sharing something of value with another person. Similar to the act of sharing your body, merging your assets with someone else can either be a fulfilling experience or a devastating one, depending on who you choose as your partner.

    2) What are the biggest mistakes couples make when it comes to managing love and relationships?

    I can list some common mistakes very simply: Not communicating about money, stepping into something without knowing what you’re getting into. Not being honest with yourself or your partner. Allowing love to dominate your logic when it comes to determining if someone is right for you. Not critically analyzing the spending, saving, borrowing and investing habits of your partner and how this is going to play out in the long-term. Not analyzing the long-term earning potential of your partner and determining if you are comfortable with it.

    3) What does it mean for a couple to “get financially naked with your partner?”

    In regular love, you eventually have to get naked. That means the person sees your physical assets and liabilities. The same should be done financially: you and your partner should share debt levels, income levels, spending habits, credit scores, perceptions of money and all the things that your partner needs to know. The key to making good love is communication and the same is true for financial lovemaking as well.

    4) Is financial lovemaking only a topic for couples or those seeking relationships?

    No. Part of the lovemaking process means learning to love yourself. That means understanding your own relationship with money and how you are going to reach your own financial goals. Good financial health is not just for the benefit of current and future partners, it is also important for you. Additionally, financial lovemaking affects how money and relationships merge in all kinds of scenarios: with your children, relatives, friends, etc. By being financially healthy, you are ready to merge assets in an effective way when the right situation comes along.

    5) How does bad financial lovemaking spread beyond your significant other? What about other offspring, relatives, etc?

    Many financial lovemaking problems come from our children and parents. If you don’t raise your children to be financially independent, they can become liabilities during retirement rather than assets. If you don’t know how to manage your financial relationships with loved ones, you might find yourself being drained in a way that frustrates both you and your partner. Love is something that permeates every dimension of our lives, so effectively managing our money can be a tool toward making good love.

    6) What is a “life portfolio” and what do you mean when you say that “our most significant financial assets in life having nothing to do with money?”

    The most valuable things in your life are usually non-financial: your health, your happiness, your love and your time. All of these things were granted to us from birth and have nothing to do with money. Many times, I see people destroying the most valuable assets in their lives, all in the pursuit of money, and I find that to be sad. Money should be a tool for the enhancement of that which is most valuable to you, not a weapon to destroy the things that matter.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, “Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Dr. Boyce Money: Do Entrepreneurs Need an MBA? Probably Not

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    I am going to say some things that will take money out of the pockets of people like myself. But darn it, it has to come out. I have taught MBA and undergraduate business students for the last 16 years, at many major universities. I believe strongly in the value of black entrepreneurship and I believe in the power of compassionate capitalism. The problem, however, is that there are times when I wonder about the power of an MBA. Fenorris Pearson, a successful black entrepreneur, has shared the same concerns, and I can’t say I disagree with him completely.

    Here’s the deal. An MBA can be a powerful tool to learn how to manipulate your way through the complexities of corporate America. Most programs teach you how to analyze charts, create spreadsheets and do all the little things that your boss is going to ask you to do. The problem, however, is that the vast majority of professors teaching MBA courses at major institutions have never actually done the work they are teaching you to do.

    An MBA student at an Ivy League institution recently told me that when he asked his professors how to actually implement the strategies that they were teaching on the chalk board, the responses from professors were always disappointing. The student aspires to be an entrepreneur, where being able to do something matters far more than your educational background. In fact, entrepreneurship is the ultimate test of your business skill: If you can’t do the job, your academic credentials aren’t going to help you win customers. Someone buying your product doesn’t care if you have a Harvard MBA; they only care if you are giving them good service for a fair price.

    The reason that university professors in many business schools across America have become ineffective at transmitting necessary tools to their students is that campuses have turned toward a commitment to research over practical skill building. Publishing complex research papers in journals that almost no one reads becomes the Ivory Tower’s elitist way of proving that they are better than you and that they don’t actually have to care if you aren’t getting what you need to be successful. The MBA becomes a bought and sold commodity, where any student who can cough up the cash is almost certain to walk out of the institution with a piece of paper in his/her hand. While this doesn’t define all MBA programs, it’s hard to find anyone who would not argue that there is not some degree of grade inflation.

    The professor you ask to help you find a job sometimes can’t do a thing because he has few contacts in industries in which he has no experience. The faculty member who is asked if he has seen his models used in practice can only show you his publication in the Journal of Finance. University faculty have become as weak and complacent as special interests in the health care system when it comes to remaining committed to an ineffective educational process that takes care of the few individuals in power. It won’t be until more practical models of education become preferred by society that university faculty will finally get the point. What is saddest is that many black scholars in business have also bought into the elitist “look, but don’t touch the public” model of scholarship, leading many of our greatest minds to rot away their potential. I am not being critical of their achievements; rather, I am encouraging them to not be afraid to leave the intellectual plantation.

    When it comes to the MBA, the bottom line is this: MBAs can be good for alumni networking and they are good for certification that allows you to obtain a position with a company. They may not, however, be very good at actually showing you how to start and run a successful company. You might get a better education on Google.com.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Dr Boyce Money: Everything You Need to Know About Credit Scores Pt 1

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    Given the growing importance of credit scores in our economy, I thought I would do a Dr. Boyce Money series on credit scores and how they affect your life. These might answer many of the questions you have about your credit report and how the scores are calculated. We will also cover your rights as a consumer and how you might improve the score you’ve got. Enjoy!

    Who are the major credit bureaus and where do the scores come from?

    In the US, there are 3 major credit bureaus, Experian, Trans Union and Equifax. These are the three agencies that others can ask for credit information about you. Under the old system, your score would range from 375 to 900. There is a new system in place with VantageScore, which ranges from 501 to 990. The system is considered more consistent across the various bureaus, but it does not change much in terms of your credit worthiness. So, if you were a AAA borrower before the fact, you are going to be one now.


    How can I get a copy of my credit report?

    One way to get a copy of your report is to go to Myfico. You can order a report from any of the 3 bureaus, or you can order all 3. Another method for obtaining a credit report is to go to free sites such as freecreditreport.com (although there are conflicting viewpoints on whether this service is actually free). Under the law, the reporting agencies are entitled to give consumers at least one free credit report every year. Also, if you are denied credit for any reason, you can send a copy of the rejection letter to any credit bureau and receive a free credit report. Otherwise, the report is going to cost you about $8.

    How is a credit score calculated?

    The model for credit reports is based on what they call “The 4 C’s of Credit”: Character, collateral, capacity, capital and conditions. What are they?

    Character is their way of trying to decide if you are a good person or not. Effectively, if you have a history of not paying your debts, they define you as not having the character to repay. This is a bit silly, since some people don’t repay their debts because they are having financial trouble, not because they are bad human beings.

    Collateral is represented by assets you are willing to pledge against the loan as additional security in case you aren’t able or willing to pay.

    Capacity is represented mostly by income level and future earning opportunities.

    Capital is reflected mostly in your cash reserves, and other relatively liquid investments. High capital implies that you can pay the fees that are owed.

    Conditions are things that are basically out of your control: the state of the economy, your line of business, or any other issues on your credit report that do not necessarily reflect personal choices made by you.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Method Man, Wesley Snipes Arrested for Taxes, but Not Nicolas Cage?

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    I’ve met Method Man only one time, and I’ve never met Wesley Snipes or Nicolas Cage. In spite of his mixed public image, Method Man actually comes across as an intelligent, attentive and down-to-earth human being. At the time I met him, I’d only been on national TV a couple of times, but he talked to me as if he’d known me his entire life. He even recited the lyrics to Ice Cube songs that I brought up and told me stories about Tupac. I was quite impressed.

    The closest I’ve ever come to Nicolas Cage is when his movie came out about the 911 attacks and they forgot to include the black guy’s character. It was incredibly tacky, but effectively, there was an African American named Jason Thomas who played a huge role in 911 – large enough for them to include his character in the film. But somehow, in all their exhaustive research for this multi-million dollar blockbuster movie, they simply forgot that his character was black. Instead, he was cast as a white man. How the producers could have overlooked something so obvious was beyond me. In fact, I find it hard to believe that this was an accidental oversight.

    I don’t have much to say about Wesley Snipes, except for the fact that he should watch what he says about black women. Oh yeah. He needs to also pay attention to his tax bill.

    Where Nicolas Cage, Wesley Snipes and Method Man cross paths in my psyche is on the touchy issue of tax evasion. I listened to Method Man (in this interview) take full responsibility for the fact that he was arrested for owing $33,000 in back taxes. He even jokes about it, which is better than I’d be able to do.

    Nicolas Cage owes far too much money to joke about anything. In various media reports, Cage owes over $6 million dollars to the IRS. Now, I have no idea why Method Man is in handcuffs, Wesley got a prison sentence and Nicolas Cage just has to put his castle and mansion on the auction block (yes, the dude really owns a castle – that’s what my friends might call “Intergallactic ballin” – I came up with term that myself). I am also unsure how a man who’s made so much money could be so far behind on his taxes. At the same time, tax problems are human, and there are tons of Americans in all income brackets who have tax trouble every year.

    As you know, I enjoy finding true teachable moments in everyday life. Given that an IRS audit increases your chances of getting you into tax trouble, I thought I’d bring the classroom to the web and share a few facts with you about taxes, audits and finance.

    Here are 4 things that can increase your likelihood of being audited by the IRS:

    1) Having an income that is greater than $50,000 per year – When you make the cheese, you become a big fish and worth the time to audit. The IRS doesn’t have time to go after little wallets.

    2) You are self-employed – Statistics show that self-employed people tend to do the most wiggling and fudging on their taxes, so having your own business flags you as an audit risk.

    3) Making a mistake on prior tax returns – if you’ve made mistakes in the past, you are likely to make another one…at least more likely than everyone else. This will flag your return for a possible audit.

    4) An excessive number of tax write-offs – if the dollar value of your deductions exceeds a certain percentage of your income, then the IRS may come after you. Make sure that any write-offs you have are well documented and legal. You don’t want to cheat on your taxes or get too greedy when filing.

    Remember that tax problems can happen to anyone, so if you are subjected to an audit, don’t panic. Go buy a book on dealing with audits, “fess up,” pay your fine and go on with your life. You’re not in the same boat as Method Man.

    If you want to hear this right out of my mouth, feel free to click on the video below. I’m going to hang out in Chicago:

    Dr. Boyce Watkins is a Finance Professor at Syracuse University, a leading African American Speaker and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Dr Boyce: Dr King’s Kids Fighting Over Money – What We Can Learn

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    Most of us know about Dr. Martin Luther King’s childrens’ fight over money. We are all saddened and disappointed that it has come to this, but this shows that the family is human like the rest of us. But there are things all of us can learn from this dispute when it comes to leaving money for your children.The dispute between the kids is now resolved, but that doesn’t mean that the teachable moment has ended. The video below breaks it all down in our Dr. Boyce Web Chat. Enjoy!

    Dr Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here. To follow Dr Boyce on Twitter, please click here.

     

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  • Dr Boyce and Rev. Al Sharpton Discuss Couples, Money and Michael Vick

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    This week on “Keeping it Real with Rev. Al Sharpton,” the good reverend and I discussed some issues that many people might find interesting. First, there was the conversation about love and money. Most of us know that money matters in life. We tend to think about money every day and a good way to end up in the dumps is to have someone take your money away from you. Money is also a weapon of mass destruction in many relationships, especially in the African American community. And just for the record, Rev. Al stands firm that there is nothing to his rumored relationship with Lisa Raye. If only I were privileged enough to have people think that I had a thing for Lisa Raye….now THAT would make my day!
    Our second topic of discussion was Michael Vick. I personally believe that in spite of media reports to the contrary, Nike is still waiting in the wings to sign Vick to a real deal, because Vick has always been the real deal among NFL athletes. The great challenge for Vick is that he has to start from scratch to rebuild his respectability as a top notch quarterback. He also has to let that ‘dog fighting’ issue get behind him.

    I recently did an online webchat about Michael Vick, which explores the similarities between Michael Vick and Jack Johnson, the first African American heavyweight champion of the world. You’ll notice that the way America has vilified black male athletes is nothing new to our country – there is a long history behind it.

    The conversation with Rev. Al is below. Enjoy!


    Dr. Boyce Watkins is a Finance Professor at Syracuse University and a leading African American Speaker. He is also the author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered directly to your email, please click here. To follow Dr Boyce on Twitter, please click here.

     

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  • Dr. Boyce and Keith Murphy Discuss Economic Empowerment

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    In this interview below with the great radio legend Keith Murphy, we discuss the power of high expectations, education and economic empowerment when it comes to dictating your own destiny.

    Keith Murphy is the host of “The Urban Journal” on Sirius/XM Satellite. He is a good brother and one of the few people who supported me when nobody knew who in the heck I was. I will always respect him for that.

    I told Keith that much of the empowerment process in the African American community comes down to education and economics. If we really push our kids to be their best educationally, that will open a million doors for achievement. It’s not difficult to be a good student: you only have to treat it like a part-time job. If a kid can work 8 hours a day in McDonald’s, that same person can sit and study for 4 hours a day. Any college student who studies 4 hours per day, every day, is going to earn As and Bs in most of his/her classes. It’s really that simple. In fact, most universities give you a “B” in the class just for doing what you’re supposed to do. College is not nearly as difficult as some would like for you to believe.

    When it comes to economics, it’s all about a couple of things: learning to save and invest and understanding the foundations of entrepreneurship. My belief, for example, is that every ex-convict who can’t find a job should study entrepreneurship so they can find ways to make money without earning dump wages from someone who doesn’t respect them. If the world rejects you, you have to find a way to still get what you want. It’s possible if you believe.

    The interview is below if you’d like to listen. Enjoy!

    Dr. Boyce Watkins is a Finance Professor at Syracuse University, a leading African American speaker and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Dr. Boyce Money: Lost Your Job? Senators Might Help You

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    The Senate has been mingling with the idea of extending jobless benefits for those who’ve lost their jobs. The problem is that the politicians can’t quite make up their minds. A bill was passed last month in the House of Representatives, but the Senate has still been fighting over the details.

    The black community is in dire need of help from legislators, as our community has been hit the hardest by recent trends in unemployment.
    While overall unemployment is at a staggering 9.8%, African American unemployment is 15.4%. Black male unemployment is as high as 30 – 40% in some urban areas. Jobs are needed and benefits are needed even more. According to the Center for American Progress, the poverty rate for African American children is over 34.7%, while only 10.6% for white children. Economically speaking, black people are usually the state of economic recession.

    Typically, unemployed workers are eligible for up to 26 weeks of benefits, but that number has been extended twice by Congress. Now, workers are eligible for as many as 79 weeks of benefits. The current compromise proposed by Senator Max Baucus would give an extra 13 weeks of benefits in states hit hardest by unemployment, while those suffering less would get an extra 4 weeks. This approach has been disputed by some members of the Senate, who feel that all Americans should get the same extensions, regardless of where they live.

    The unemployment rate is expected to rise above 10%. Additionally, more than 1/3 of all unemployed Americans have been out of work for more than six months.

    One ray of hope for an economic recovery is the stock market. Anyone with a little extra money to invest was able to earn a 50% return over the past 6 months, which is truly phenomenal. The other bright side of the market rally is that the stock market is a leading indicator of economic growth: that means that when the market improves, the economy is expected to improve. So, while recent unemployment numbers imply that a recovery is going to be slow, the truth is that all is not lost.

    Keep your hope alive. Things are going to get better.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Dr Boyce Money: Five Ways to Know You are a Credit Card Crackhead

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    Sometimes your finances can get so out of whack that you can only laugh in order to keep from crying. Well, I am a big advocate of the art of laughing, so I thought I would share five symptoms that show you might be a credit card crackhead. As we know, millions of Americans have been sucked into credit card addiction, especially before the recent financial crisis, where the average savings rate for American consumers was actually less than zero.

    African American wealth     is also affected, as many of us in the black community are very good at whipping out the credit card to handle any old financial concern. Here is a list of five ways to know that you might be a credit card crackhead:

    1)Are your roommates and children trained to tell the bill collectors you’re not home? Running from bill collectors might make sense, but you eventually have to deal with them. I recommend working with a consumer credit counselor, who can help you to renegotiate your debts. Many of them can save you thousands of dollars in the process.

    2) When shopping, do you whip your credit card out faster than John Wayne’s gun? Food, clothes, haircare products are not the kinds of things that should be purchased with a credit card. Credit card use should be limited to major and emergency purchases. Using cash is an easier way to keep a cap on your spending. You might want to get a set amount of money out of the ATM every week and don’t spend more than that amount.

    3)Do you break into a cold sweat when you make a charge because you think that your credit card might be maxed out? Yes, a maxed out credit card is embarrassing. But banks have made it “easier” for you: many of them will go ahead and pay the charge if you go over your limit. In fact, they encourage you to overspend. Why? Because they will charge you a massive fee for doing so, to the tune of nearly $40 per transaction.

    4) Do you do the happy dance when you get a free credit card offer in the mail? If you are smart, then you would just throw it away. These offers are not as prevalent as they were before the financial crisis, but the credit card crackhead has a problem with seeing credit card offers as free money. Most of us think we need credit cards, but really you don’t. One credit card is usually enough to achieve your financial objectives.

    5)Do you have so many credit cards that your wallet hurts your butt? Or if you are a lady, do you have credit cards for all of your favorite stores? If so, the high interest payments you are making are probably killing your ability to save money. Get rid of store credit cards, since they encourage you to overspend on meaningless junk. They also tend to charge outrageous interest rates.

    When it comes to managing a credit card addiction, it’s all a matter of making wise choices. Credit is a good thing and very powerful, but it should also be used responsibly. Get your butt in rehab right now.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Dr. Boyce Money: Is a Lack of Sex Grounds for Divorce?

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    I live in New York, so I get the chance to meet a lot of interesting cab drivers. I love listening to older people so I can understand the world a little bit better. One driver, a man in his late 60s, was especially candid with me about his life, his relationships and the personal choices that got him to where we were at that very moment.

    He told me that he was married young, to a beautiful woman. The driver then began a very open description of why he left the marriage. “She was throwing so much sex at me that I didn’t know what to do with it,” the driver said. “Then, after we got married, I had to beg for it and she wasn’t budging, so I told her I needed to get a divorce.”

    “A divorce?” I asked.
    “Yes, there was no point in pretending,” the man responded.
    While it may seem extreme for the man to get a divorce because he wasn’t getting enough sex, it wasn’t as if he was simply jumping from one wife to the next. A few months later, he met and fell in love with another woman, to whom he has been married for the last 35 years. They’ve produced 5 children and 9 grand children, and according to the driver, they still “get busy” every chance they get.

    Alrighty then.

    The cab driver’s story, as odd as it may seem, brings up an interesting question: Is a lack of sex grounds for divorce? Some say that it should be, since they argue that there is an implicit agreement from both parties to fulfill the needs of the other person. Some say that it is immature to leave your mate due to a lack of sex. At the same time, couples regularly cite infidelity as their grounds for splitting up. Does it make sense to agree to only have your needs met by someone who refuses to meet your needs in a satisfactory manner? Probably not.

    Legally, is a lack of sex good cause for divorce? I asked an attorney about that.

    Christopher Chestnut, a prominent attorney out of Gainesville, Florida, argues that it, “depends upon the state. For instance, Florida is a No Fault state, thus, justifiable reasoning for a divorce is not dispositive to a case. Notwithstanding, lack of sex in marriage may be a grounds for divorce in some states.”

    S. Tia Brown and I discuss sexless marriages and whether or not this gives you just cause to roll out or sneak out of your marriage. Listen up and enjoy!

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lovemaking 101: Merging Assets with your Partner in Ways that Feel Good.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Financial Lovemaking: Managing "Baby Mama Drama"

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    Most of us know about “baby mama drama,” since some of that drama may occur within your own home. What is also forgotten is that there is a huge emotional and financial toll taken by the mating and dating choices that we make early in life. Having multiple children is expensive enough, but having multiple children in multiple households leads to a peculiar mix of unpredictable and complex psychological variables which may impact your ability to find peace and happiness.In this episode of “Financial Lovemaking,” S. Tia Brown and I discuss the art of managing multiple households and all the responsibilities that come with it. Here are some quick pointers on financial responsibility when dealing with and avoiding “baby mama drama.”

    1) Don’t create the drama in the first place. I tell my daughters that if you don’t think someone would be a good parent for your children, you shouldn’t sleep with them. In fact, you shouldn’t even go on the first date. This may sound far-fetched, but how many young parents go on a date with someone they just planned to “kick it with”, only to find their children being raised by the ignorant fool that they knew they should never have messed with from the beginning? Those who are not intelligent about their dating and mating choices early in life can end up with a lifetime of incredibly expensive child support. These huge financial obligations will virtually obliterate your ability to have another family or reach your personal financial objectives.

    2) Realize that there is no substitute for time. Some parents are tempted into believing that sending a big check is a replacement for spending time with their children. This is ultimately incorrect. Your kids are going to remember the time you did or did not spend, not how much money you sent.

    3) Create a budget. If you have a long list of parental obligations, make sure you keep a carefully designed budget and stick to it. You may also want to consider the fact that having a bunch of kids in multiple households is going to require you to have massive earning potential. I paid 18 years of child support myself, and I honestly think I spent enough money to fund NASA and the United Negro College Fund. Although I adopted kids later in life (I believe it takes a village to raise a child and black men should be willing to step up to do this), I was at least smart enough to avoid another pregnancy. I have made many mistakes in my life, but I usually only make them one time.

    4) Don’t play favorites. Emphasize to your children the importance of making sure you treat them all the same. How you deal with your kids will have a lasting impact on them into adulthood. You can’t guarantee that they are going to believe that you were fair (there’s always one who thinks the others were treated better), but you can at least do your best to avoid this problem.

    5) Realize that it takes two to Tango. You didn’t create the baby by yourself, so you should ensure that the non-custodial parent has an opportunity to spend time with his/her children – in fact, you should demand it, even if the kids aren’t interested. As much as black men get a bad rap for not wanting to see their children (sometimes rightfully so), there are thousands of fathers across America who’ve been victimized by mothers who want money, but don’t see the significance of influencing the children to spend time with their father. They are his children too, remember that, and if you are speaking negatively about the father when the kids are around, you should realize the long-term damage you are doing to your own offspring. Children should be targets of our love and affection, not possessions to be used as a source of power – think about that when you use the words “MY kids” when speaking with the other person who created them.

    The episode is below, check it out!

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Dr Boyce Money: Learning Entrepreneurship from Madam CJ Walker

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    The other day, I caught up with Fenorris Pearson, CEO of Global Consumer Innovations. Fenorris is not only a highly successful entrepreneur, he was also one of the youngest Vice Presidents at Dell Computer and a highly successful speaker in the African American community.

    When asked about the keys to success, he points to a quote by Madam CJ Walker, the first female millionaire in American history.

    Here is what Walker had to say:

    “I am a woman who came from the cotton fields of the South. From there I was promoted to the washtub. From there I was promoted to the cook kitchen. And from there I promoted myself into the business of manufacturing hair goods and preparations….I have built my own factory on my own ground.”

    National Negro Business League Convention, July 1912

    What’s the lesson from Madam Walker’s quote?The lesson from Walker’s experience is that when she thought like a laborer, she earned the wages of a laborer. When she began to think like an owner, that is when she opened the door for true wealth.

    Mr. Pearson spoke this week at the Congressional Black Caucus Event alongside the Honorable Barbara Lee, a Democratic Congresswoman from California. In the seminar, Fenorris uses his experience as an entrepreneur and corporate titan to make the following points:

    1) 95% of all new businesses eventually fail. In order to have a different set of outcomes, you must engage in a different set of activities. In order to ensure that you are not part of the other 95%, you should be fully committed, willing to take a few calculated risks, and do an extraordinary amount of planning in order to make your business succeed. You should also expect the unexpected – you never know what it’s like to run a company until you’ve done it.

    2) Most of these business fail for the following reasons: Lack of access to capital, poor management, expanding too quickly or starting the business for all the wrong reasons. Pearson argues that many of these problems can be avoided if a company engages in proper planning and organizational strategies. One of the things I’ve noticed is that you can’t run a large company the way you once ran a smaller one. Many black entrepreneurs run into challenges as their companies grow, because they have not gotten used to the idea of delegation. Once your business reaches a certain size, you should find ways to share the more trivial tasks with others so you can focus on the more important objectives. A billionaire once said to me, “Running a company is not a matter of what you do, it is what you get others to do that actually matters.”

    3) There are ways to avoid this kind of failure. With his company, Global Consumer Innovations, Inc., Pearson teaches business owners how to avoid the common causes of small business failure. He argues that by using specific steps toward proper product innovation and market delivery, a firm can find itself in a strong position in its chosen market.

    When starting a business, the bottom line is this: The truest path toward wealth creation and social power within the black community is not through politics. The path to power is economic prosperity, combined with a conscientious desire to improve the plight of those around you. True activism is not achieved through charity and personal freedom is not achieved by hoping for it. By thinking like an owner and having a willingness to take intelligent risk, you can achieve your wildest economic dreams.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University, a prominent black speaker and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Financial Lovemaking: Who Keeps the Ring if the Engagement is Called Off?

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    This video below answers an important question that many of us may end up confronting at some point in our lives: If you are engaged to be married and the engagement doesn’t work out, do you have to give the ring back? The answer is “yes” and “no,” depending on the state in which you live.

    There are other questions about nuptials that make you say “hmmmm?”
    1) If you give a gift to someone who has gotten married, do they get to keep the gift if they either cancel the wedding or get divorced shortly thereafter?

    2) Is it tacky to specify that your gift is conditional, meaning that you’re going to take it back if the wedding doesn’t happen or the marriage ends too quickly?

    3) What if you spend a wad of cash attending someone’s wedding, only to find that the bride and groom get cold feet? Do they owe you a refund?

    4) Does possession of the ring depend upon who called off the wedding? For example, if the prospective groom calls off the wedding, should he then be obligated to give up the ring too?

    Christopher Chestnut, a prominent attorney out of Florida, states that ” Marital law is state specific, thus law governing marriage and divorce differ depending upon the state. However, in many states an engagement ring is considered a gift, consequently, a legal claim for return of a ring is likely to be unsuccessful.”

    I’d love to hear your stories and take on this issue, but here is a quick run down on my own thoughts:

    -Yes, it is tacky to specify a wedding gift as being conditional upon going through with the ceremony. If you are worried about losing your money, then don’t buy an expensive gift.

    – A gentleman would not ask for his ring back if the engagement is called off, but a true lady would not try to keep the ring either. Think carefully about the integrity of the person you choose to marry. If you are the one who calls off the engagement, then you are effectively the one who is in breach of the contract, which then specifies that you should arguably be the person who takes the loss. To share a personal experience, I was once engaged to an amazing and beautiful woman, and when the engagement was mutually called off, the loss of our love far outweighed the value of any simple piece of jewelry. She gave me the ring back, but I didn’t even think to ask for it. This was a reflection of her character.

    – When it comes to traveling for another person’s wedding, everyone is taking a risk. The cost is high and you aren’t likely to get your money back. If the person is a good friend, just write off the financial loss as the cost of preserving your friendship.

    In the video below, an attorney breaks down the legalities of rings and marriages. Enjoy!

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Don’t Let Your Spouse Control All of Your Finances

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    Financial News Blast for the week of September 26, 2009 – Click on the link for the title to read the article on the given topic:

    1) Don’t let your spouse control all of the family finances: This is a great article on how the entire family should be involved when making financial decisions for the household. When I wrote my book, “Financial Lovemaking 101,” I noticed that far too many American families are allowing their entire financial future to be controlled by one partner. You should be aware of what’s going on with your money, even if you’re not the one making all the decisions.

    2) Harvard Study: A Lack of Health Insurance Causes 45,000 Deaths Each Year: The healthcare reform debate has literally become a matter of life and death. We’ve got to find a way to get this done.3) How to get a home loan with bad credit: Many Americans suffer through credit problems. Where you’ve been doesn’t matter nearly as much as where you’re going. Getting a home loan can open the door to wealth and also create opportunities for you to rebuild your credit. Take a look at this article to find out how.

    4) The most lucrative college degrees: Going to college doesn’t guarantee a strong financial future. It’s going to college and choosing the right major that makes all the difference. Make sure you pick the right major for you and your children.

    5) Financial illiteracy is an epidemic in the United States: Banks and corporations are certainly predatory in their behavior. But you don’t have to allow yourself to be their prey. You must find a way to obtain basic financial literacy, for a lack of financial literacy was one of the primary causes of the 2008 economic downturn. If this epidemic is not managed, we are going to have serious problems for many decades to come.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University, a leading African American speaker and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Money Blast: What You Should Know about Credit Scores

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    Financial News You need to know:

    What you need to know about credit scores: Get educated on what it takes to have the score you need. Your credit score can affect whether you get the job you want, as well as the cost of your insurance. Additionally, the formulas used by companies to calculate credit worthiness are changing as we speak.
    What social security underfunding means for your retirement: Social security is financially sick. African Americans are going to be hit the hardest, since we have the least wealth to prepare for economic challenges. Find out what all this means for your retirement, as the retirement landscape in America is going to change dramatically in the future.

    The federal government may continue to help first time home buyers: Many people don’t know about the $8,000 tax credit the Obama Administration is giving to first-time home buyers. Well, the government is considering extending the credit, which can add to your personal bottom line.Students are borrowing more money than ever to attend college: Along with the cost of healthcare, Americans are finding it more and more difficult to pay for their children to go to college. In fact, most young people under the age of 40 are going to die in debt. This does not have to be the case, since there are less expensive ways to pay for school if you seek out alternatives.

    Factors that may increase your chances of personal bankruptcy: Bankruptcies are skyrocketing due to the recession. There are things you can do to avoid bankruptcy, like negotiating with creditors or keeping a budget. Also, things like carefully noting the quality of your health insurance can make a difference as well.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University, a prominent black speaker and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Dr. Boyce Money: Don’t Throw Tavis Smiley Under the Wells Fargo Bus

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    When I read about the predatory lending allegations against Tavis Smiley and Wells Fargo, I wasn’t surprised. Not because I feel that Tavis is some kind of crook, but because economic downturns are usually when everyone’s dirty laundry gets aired out. The high flying 2000s were a decade of extravagance, overspending, easy money and troubled relationships. The party was bound to end. Smiley’s party has ended with Wells Fargo, as the company has been accused of using Tavis Smiley and financial expert Kelvin Boston to convince African Americans to sign on to loans that turned out to be predatory. Neither Boston nor Smiley is willing to disclose the amount they were paid for the service, but I’m sure it wasn’t chump change.

    I’ve been open and honest in my critiques of Tavis Smiley in the past, but I give credit where it’s due. I’ve always felt that Tavis Smiley is a man who works out of a sincere respect and appreciation for the black community. He is not out to hoodwink, swindle or hurt us, at least not deliberately. At worst, Smiley is guilty of being caught in a situation that he may not have fully understood.

    Although I agree with the black community’s decision to hold Tavis Smiley accountable for his actions, I want us to be cautious of going overboard in our judgments. Here are 5 things I want to say about Tavis Smiley:

    1) Don’t throw Tavis under the bus. African Americans can be tough on our public figures. After Smiley’s repeated calls for accountability against President Obama, many failed to appreciate the value of scrutinizing our elected officials. While Tavis’ close relationship with Hillary Clinton undermined the credibility of his challenges to Obama, the truth is that accountability is very important when dealing with any politician. One must respect Tavis for having the willingness to say things that are unpopular, which even Obama himself doesn’t always have the courage to do.

    2) Beware of corporate sponsors bearing gifts. One of the greatest barriers to social progress for African Americans has been our inability to properly assess those who sponsor our activities. Any corporation that comes along with a signed check can usually find a place at our table. Would you want your teenage daughter taking money from any boy who offered it to her? Probably not, because you know that the the boy might be expecting “repayment” at the end of the night. The same is true for corporate sponsors, who are paying you to present the kind of image they want the public to see.

    3) The revolution will NOT be brought to you by Walmart. Rarely, if ever, can true black activism be achieved via funding provided by companies run by the descendants of our historical oppressors. This is due to the inherent conflict of interest between capitalist entities and the plight of the poor. African Americans are disproportionately poor and working class. Therefore, unfettered capitalism is designed to destroy us (although compassionate capitalism can fuel economic growth). So, while one can certainly understand why Smiley would be happy to take corporate money for his State of the Black Union event every year, the truth of the matter is that the honest activism of such a function can only go so far.

    4) A critical line must be drawn between financing and influence. There’s a reason that the New York times doesn’t let it’s advertisers decide which stories are going to appear on the front page. This is because the natural power that comes with financial support must be tempered by a commitment to conscientious objectives. If Wells Fargo needs to be called out for its predatory lending practices, that is not going to happen with the Wells Fargo logo placed behind the speaker’s head. There should be independent oversight of all funding sources for The State of the Black Union, The State of Black America, as well as events held by the NAACP and Urban League every year. Influence is bought behind the scenes all the time, and good black leadership should be as transparent as possible.

    5) We should keep supporting Tavis. Tavis Smiley’s annual event, The State of the Black Union, is one of the most celebrated in the black community. With a renewed commitment to conscientious corporate sponsorship, The State of the Black Union can regain its status as a respected and appreciated forum for black education. But in order for this to happen, we must make sure we know where the money is coming from, where it is going and what strings are attached. Without properly vetting the sources of your financial support, you are setting yourself up for corruption.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University, a leading African American speaker and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Five Things You Might Not Know About The Black American Worker

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    Black American WorkerIt’s no secret that the recession is hitting African-Americans especially hard. Last month black unemployment stood at 14.5 percent, vs. 8.6 percent for whites. However, nearly 18 million blacks are still toiling in the civilian labor force, representing over 11 percent of America’s 155 million workers. As the country enjoys a day of rest on Monday to celebrate all working Americans, Black Voices is taking time to shine a much-deserved spotlight on the black worker with five facts you might not know…

    working black women1) She Brings Home The Bacon
    The black worker is more likely to be female; but then again, there are simply more black females. Fifty-three percent of black workers age 20 and over are women, while 47 percent are men – commensurate with their representation in the overall population.

    2) The Tax Collector in the Mirror
    It’s not surprising that a black person is more likely than a white one to be a bus driver or a health care aide. But did you know that blacks are also more likely to be tax examiners or collectors; dietician or nutritionists; crossing guards; bill collectors; and telemarketers?

    3) On The Government Payroll
    Who says big government is a terrible thing? While facing discrimination in many sectors, blacks are more likely to work for the federal government than other Americans. We represented 17.8 percent of the federal workforce in 2007 compared to 10.1 percent of the general population

    4) Bearing the Union Label
    For years blacks have been more likely to work in a union, bringing them 12 percent higher wages than their non-union counterparts. However, black union participation has been falling for years, from nearly 32 percent in 1983 to less than half that today. In 2008, 14.5 percent black workers were union members vs. 12.2 percent of white workers. It’s no wonder that on average blacks are….

    In More News About Black Workers:

    +NAAIA is Recruiting Black Insurance Professionals

    +Dr. Boyce and Michel Martin on NPR Discuss the Minimum Wage

    +Dr Boyce Money: First Black Female to Run Fortune 500 Company

    http://xml.channel.aol.com/xmlpublisher/fetch.v2.xml?option=expand_relative_urls&dataUrlNodes=uiConfig,feedConfig,localizationConfig,entry&id=633153&pid=633152&uts=1252096128
    http://www.aolcdn.com/ke/media_gallery/v1/ke_media_gallery_wrapper.swf
    Before These Stars Quit Their Day Jobs…
    Mary J. Blige and other stars had important jobs before they were famous, even if they may have been low-income. What are the most underpaid and underappreciated professions?
    Getty Images

    Before They Were Famous

      Mary J. Blige is known for her creatively coiffed crown of hair for good reason…

      Stephen Lovekin, Getty Images

      Mary J. Blige:
      At-Home Hairdresser
      From Starpulse.com: “Blige spent the first few years of her life in Savannah, GA, before moving with her mother and older sister to the Schlobam housing projects in Yonkers, NY. Her rough life there produced more than a few scars, physical and otherwise, and Blige dropped out of high school her junior year, instead spending time doing her friends’ hair in her mother’s apartment and hanging out.”

      Mary started to make her own way in the world in a profession that many take for granted. The at-home hairdresser is a very important staple of many communities, as she uses her skills to help women who can’t afford a professional salon to stay pampered and beautiful. We salute you!

      Getty Images

      Denzel Washington is no stranger to the hair business himself…

      John Shearer, WireImage

      Denzel Washington: Barber
      From Tiscali: “It’s often been said that the boy picked up his desire to act from the flamboyant communication that went on around him at this time. He certainly picked up a desire to work – the family ethic was very strong – and young Denzel found himself labouring in barber shops and beauty parlours from the age of 11.”

      The neighborhood barber is an important institution in many communities. Even though they don’t get paid much, men’s salons are like private social clubs that allow them to relax and connect at an affordable price. Workers in these establishments not only groom the body — they soothe the soul.

      WireImage

      Ellen is known for her dancing, but she used to be a different kind of mover back in the day…

      Jordan Strauss, WireImage

      Ellen Degenres: Car Wash Driver
      From CareerBuilder.com: “I actually liked my first job. I was driving cars out of a car wash, you know, once the car comes out, you get in and you wipe it. That was exciting to me to drive the nice cars and wipe down the [dashboard] with Emerald.”

      We often take for granted all the folks at the local war wash. They may be working for little more than tips, but they keep our cars clean and fresh, making a huge positive impact on our daily lives.

      WireImage

      Jennifer Lopez has displayed a high level of discipline and organization in plotting her megastar career. She must have learned those skills during one of her first jobs…

      Steve Granitz, Getty Images

      Jennifer Lopez: Legal Assistant
      From 2spare.com: “Long before Jennifer Lopez sang, danced and acted her way to superstardom, she briefly traded in her velour tracksuit for a suit of the pin-striped variety while working at a law office.”

      It’s hard to imagine someone as driven as Jennifer Lopez being an assistant, but J.Lo paid her dues by helping her bosses meet their goals. It’s hard for anybody to put others first, but that’s what assistants do in every field. They deserve to be appreciated for this.

      WireImage / Getty Images

      Before Angela Bassett became a huge star in front of the camera, she earned her living doing business on the other side of the lens…

      Michael Tullberg, Getty Images

      Angela Bassett:
      Photo Researcher
      From Yuddy.com: “After working as a beauty salon receptionist and photo researcher, Bassett got started with her acting career in New York Theater, after which she landed her first role-as a prostitute-in the 1985 TV movie ‘Doubletake,’ starring Richard Crenna and Beverly D’Angelo. The following year she landed her first official film role as a TV reporter in ‘F/X.’”

      Whenever we look at a magazine, or in a book with pictures, we are seeing the work of some one like Bassett in her early career. We never think of the faceless, nameless men and women who look for all the photos that illustrate concepts, news and ideas in every facet of our daily lives, ranging from Web sites to education. But every one of those photos was hand-selected by someone, most often an anonymous, but dedicated and not-too-well-paid pro. What would life be like without all the hundreds of pictures we enjoy every day?

      Getty Images

     

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  • Dr. Boyce Talks Money and Sex on ABC News

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    I recently appeared on ABC News to talk about Financial Lovemaking, and the link between sex and money. I’ve discussed relationships and money several times on AOL in the past, but I think that I should quickly lay out some very interesting similarities that may not have crossed your mind. As I teach my Personal Finance Class at Syracuse University this semester, I am reminded that managing our money is linked to managing our love, which is critical to the ultimate goal of effectively managing our lives.

    1) Many people think about both sex and money every single day. Don’t lie, you know you enjoy thinking about sex, even if you aren’t getting any. But chances are, you also think about money, whether it’s figuring out how to get what you need or how to keep what you’ve got. Even most rappers spend all their time talking about either sex, money or how they use their money to get more sex. It’s actually a universal concept.

    2) Both sex and money can make you feel good. If I wrote you a check for a million dollars, you’d probably end up having a good day. If I offered you the sexiest person you could think of to do as you wish, you might have an even better day. Both sex and money have the effect of giving us a natural high that leads to human beings spending their lives obsessed with obtaining both commodities.

    3) Both sex and money can devastate you if you are irresponsible. Promiscuous sex can lead to a life of disease and drama. Promiscuous spending can lead to a life of financial turmoil. Both sex and money, being the powerful drugs that they are, should be managed with both responsibility and moderation. They are both meant to be enjoyed, but not meant to be abused.

    4) It’s scary to share either one of them with another party. Your body is valuable, so you don’t want to share it with the wrong person. Your money is valuable too, so the same logic applies. Sharing your financial or sex life with the wrong person can lead to years of regret. Emotional, physical and financial investments are all quite risky.

    5) Both sex and money require trust if you are engaged with another person. I’ve heard women talk about financial betrayal by their partners in the same context as emotional betrayal. If you trust someone with your money, you are trusting them with your life. The same is true when it comes to trusting them with your body.

    6) It’s no fun to share either your sex or your money with someone who doesn’t know what they’re doing. Sex is better with someone who knows how to do it right. Well, sharing your financial future with someone who knows what they’re doing can actually lead to dramatic improvements in your quality of life. So, when you consider how good a person looks or how great they make you feel, also consider how great they can make you feel in the long run by providing both financial and emotional security, which can effectively be the same thing.

    7) One is often used to obtain the other. On average, guys with more money get more sexual opportunities and those who give good sex could use it to get their bills paid if they wanted to (Come on, let’s be honest here – what’s the oldest profession in the world again?). There are biological reasons that men with greater access to resources tend to make better mating options for women. The rapper Ludacris noticed how he suddenly went from “ah-ight” to “handsome” when he started to make money. That’s to be expected.

    In the episode of ABC News below, we talk about these links between sex and money in more detail. Enjoy!

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Is College a Good Investment During a Recession?

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    I was invited onto “Tell Me More with Michel Martin” to discuss college and whether or not it makes sense to invest in college during an economic downturn such as this one. I have written extensively on the value of going to college, since I argue that education plays a huge part in determining whether you end up being a true player in life or just end up getting played. Black college students must really note the significant impact of attending college, since people of color benefit the most when we get ourselves educated.

    Here are some thoughts regarding whether or not college is a good idea during a recession:

    1) You must decide if college is a necessity or a luxury item for you. If you are a wealthy kid who can rack up $80,000 in debt to major in Philosophy and Theatre, then God bless you. But just make sure you are aware that the major you choose plays a huge role in your ability to manage debt after graduation. This is not a slap at those who choose majors that don’t have a strong job market, it’s just a reminder to make sure you know what you’re stepping into. Personally, I majored in business, because college was not just my path toward educational enlightenment, it was my way to pay the bills when I got older.

    2) Figure out what you hope to get out of college. If you want to simply get a good education and are not worried about the job market very much, then you don’t need an expensive school to do that. Education is what you make of it. I’d rather be a student at a state university who studies 7 hours a day than to be a frat boy at Yale living at the bottom of a beer bottle. The student who studies is going to learn; the one who doesn’t study won’t learn a thing. College is what you make of it. But if your goal is to use the name of your campus to open doors for great job opportunities, then this might justify the cost of an expensive university.

    3) Parents, the debt is not all yours. You are getting ready for retirement, your children are young. Pretty soon, they will be earning more money than you. Does it make sense that you’ll spend your golden years paying student loans for an able-bodied adult? Perhaps it’s time for your children to learn how to take care of you? They will never learn to be financially independent if you don’t teach them. Allowing your child to manage some of his/her student loan debt doesn’t make you into a bad parent. You got them to age 18 in one piece, some would say that you’ve done enough.

    4) Grad school anyone? Some majors require additional education for you to be competitive in that particular market, some do not. Think through this carefully when deciding if you want to make the massive investment of going to graduate school. I believe that an MBA is usually worth the investment, while a masters in Anthropology may not always get you the job you’re seeking. But outcomes can vary depending on the major, and you should do your homework.

    5) Education gives you job security. One thing that many autoworkers learned during the recent economic downturn is that having a good job with little education makes you highly vulnerable to economic flucuations. African Americans were the hardest hit during the recession, and many of us lost our jobs when the auto industry tanked. Even if you earn a lot of money, you should never stop believing that additional education doesn’t have value for you. You don’t want your financial future to be in the hands of someone else.

    Follow BV on Money on Twitter!

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Everything You Ever Wanted to Know about College.” To have Dr. Boyce Commentary delivered to your email, please click here.

     

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  • Black CEO says that the MBA is Worthless

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    I don’t have an MBA, and I’ve never wanted one. I earned several masters degrees and a PhD, but I never found the MBA to be a good investment when it came to actually understanding what I needed to do with my career. But unlike many of my friends, I wasn’t headed to Corporate America. Instead, I wanted to be a professor and entrepreneur, neither of which requires an MBA.

    My brother Lawrence is also getting an MBA from Cornell University, but he doesn’t want a job. Instead, he wants to utilize the network of the university to build his own business. I agree with this philosophy, since ownership is the key to building black wealth in America. Understanding business from all angles is critical to running a top notch organization.

    What is surprising, however, is that there are some captains of corporate America who are starting to question the value of an MBA when attempting to reach your goals. Mind you, this does not imply that the MBA cannot be an important piece of your long-term career plan, but it says that the MBA might not be enough.

    What is underemphasized by many who attempt to climb the corporate ladder is the necessity to learn the intangibles that come with corporate success. Fenorris Pearson, CEO of Global Consumer Innovation, Inc., argues that playing the game at the top of corporate America involves a set of skills that are not taught in a typical MBA program. Instead, Pearson believes that things like managing your peers and forging the right alliances can be critical to corporate success.

    In his new venture, called “The Corporate Climb,” Pearson lays out strategies he learned during his years as a Vice President of Global Consumer Innovation for Dell. He explains that having the credentials is only the beginning when it comes to managing life at the top. An MBA can open doors, but you must have quite a few additional skills to walk through the doors that have been opened.

    As someone who has taught MBA students for over a decade, I can also testify that the MBA should only be one piece of your long-term career building plan. This expensive piece of merchandise will only give you top value if you use it in the proper way. At the same time, I advise all of my business school students to get an MBA eventually, since you need all the advantages you can get. Based on my experience teaching MBA students, here are some quick thoughts on the value of the MBA.

    1) The MBA is important: Some kind of post-secondary education is highly recommended for most college students, especially those majoring in business. You shouldn’t just go to college: you should be at the top of your class and get as much education as you can. Mediocrity should not be on your agenda.

    2) You have to supplement the MBA with work experience: Just having the degree doesn’t mean that companies are going to come banging down your door. You have to do internships and find other valuable experience which will help you convince your employer that you can add to the bottom line. All the credentials in the world are not nearly as valuable to a company as a person who knows how to “make it rain” financially.

    3) The MBA is expensive: Many schools simply sell MBAs, meaning that if you pay a massive amount of tuition, you are probably going to get the degree. The average price of an MBA has spiraled to over $100,000 and now serves as a major money maker for most business schools. So, if you make this investment, make sure you are getting what you expect on the back end: more job opportunities and a salary high enough to pay off your student loans. If the investment pays off, then this can be a solid career move.

    4) Make sure your school helps you to find a job: The quality of the career placement center is incredibly important. If the school can’t place its graduates into high salary positions, then you may find yourself disgruntled.

    5) Don’t leave your fate in anyone else’s hands: The National Black MBA Association and other organizations hold networking conferences which can allow you to find opportunities for yourself. Do not be afraid to use these resources. You have to pound the pavement and create your own luck. Don’t let anyone take control of your future.

    6) Consider owning your own ship: Remember that the key to financial, social and psychological freedom is to own something. Black entrepreneurship is incredibly important to our community and your corporate experience can be a good foundation for you to own your own business. So, as you build your career in corporate America, don’t be afraid to create your own job via entrepreneurship. It might be the most rewarding decision you ever make.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Dr. Boyce Money: What Chris Brown Can Learn From R Kelly

    I spoke about Chris Brown on CNN not too long ago, and I am sure I’ll be talking about him now. Given his shocking 5-year probationary smackdown by a judge, I am sure that Chris has been humbled beyond belief. Even I was surprised to see him get this kind of punishment. But the truth is that when we make personal decisions, there is a piper to be paid, and sometimes that piper wants more compensation than we wish to deliver.

    But Chris Brown is far from finished, and I expect him to be back on top in no time. The Chris Brown brand is still worth hundreds of millions of dollars, since corporate America is very good at working around the emotional to secure the logical value of their financial assets. Here are some things to keep in mind as Chris tries to rebuild his damaged career.

    If R. Kelly can make a comeback, anybody can. I confess that R. Kelly honestly sickens me. I hate to say it this way, but the idea of a man doing what he is alleged to have done to that little girl makes me as angry as you can ever possibly imagine (and yes, I do believe that was him in that video). What disturbs me even more is that the American public let the entire issue go as soon as Kelly released another hit song. This sends a horrible message to young black women, reflecting the fact that our culture does not value their well-being as much as we value a hit song about going to the club, getting drunk and having irresponsible sex at the end of the night. Sorry homeboy, but you can’t serenade your way into my good graces or that of any other conscientious African American. There are simply some lines entertainers cannot cross and being found “not guilty” is not the same as being found innocent.

    In spite of the obvious critique one can thrust on R. Kelly, the oddest thing is that R. Kelly’s model of career recovery can serve as an instruction manual for Chris Brown. The first segment of that lesson came during R. Kelly’s first BET interview after the child pornography allegations were made. During the interview, I noticed that the singer kept repeating the phrase, “Just focus on my music.” He repeated the phrase several times, as if his business manager had coached him to do so. Upon processing things later, the translation here was simple: If you are focused on his music, you will forgive him for the fact that he’d been accused of doing nasty things to someone’s 13-year old daughter. Yes it’s sick. Yes, it bothers me. But yes, it’s the truth and it has worked quite well for R. Kelly and his business model (notice that it took him a while to release his latest album after the trial – the public typically cools off and forgets almost anything you’ve done if enough time passes).

    Similar to the R. Kelly situation, I’ve noticed that many female music fans really don’t care that Chris Brown is a man who seems to believe that it’s O.K.to use a woman’s face as a punching bag. The report that he used the big ring on his finger to inflict even more damage to Rihanna reminds you of the late Ike Turner. I hope he takes his domestic violence counseling seriously, since he can’t go on living like this.

    In the music industry, fans are quick to accept eccentric behavior from celebrities. The public took no issue with Michael Jackson’s problematic relationships with children and there are many other scenarios in which a hit record is enough to take value judgments off the radar screen. Personally, I find myself in constant shock at the kind of language Lil Wayne’s female fans allow him to use to consistently disrespect them. It almost seems that a polite Lil Wayne would not sell nearly as many records as the drunken, outlandish rapper who appears to have a serious drug problem.

    Value systems aside and with the focus back on business, a black entertainer can rebuild his career after an arrest by doing the following things:

    1) Just say that Jesus healed you. People always buy that one. It worked for R. Kelly. References to God, even when insincere and blatantly hypocritical, invoke deeply entrenched sensibilities within African Americans. Personally, I need proof that you’ve really changed, not just your statement that Jesus came to you in a dream.

    2) Sincerely apologize. People always love a good apology.

    3) Make a really hot song. If people are dancing to your music, they usually forget that you might want to punch out their daughter or think that she’s a garden tool. Unfortunate, but true.

    4) Remember the truth: People really don’t care that much about the celeb’s personal life and are looking for an excuse to forgive him anyway. I recall speaking to someone who works for a major network, and I was in awe over how nonchalant she was about the R. Kelly situation. All she kept saying was, “Well, he ISSSS talented,” as if his talent forgives him for any sin committed in the present, past or future. I bumped into a radio exec at a major station in Chicago and listened to him essentially say the same thing when explaining why his station adjusted its policy against playing R. Kelly music shortly after the allegations. The fact is that people just don’t care.

    Chris Brown’s brand will remain strong in the music industry. From a business standpoint, it is also ironic that being arrested may actually be a “coming out” party for him, reinventing him for the world as the tough, borderline thug that many women seem to love (remember when Lauren London said she had a crush on Ol Dog from Menace to Society – a man known for being the craziest gang banger in entertainment history?). These coming out parties are common, as you typically see young actresses do sexy magazine covers on their 18th birthday (i.e. when “Simply Raven” became “Sexy Raven” and when Rudy Huxtable played a prostitute in her latest film), or male entertainers trying to look mean and “tatted up” to break away from their good boy image (i.e. Lil Bow Wow….I mean, Bow Wow). It’s all about branding. The craziest thing about the Chris Brown situation is that being arrested for beating a woman could actually work to his advantage. So, our adoration for Chris Brown (actually, other people’s adoration, since I don’t respect any man who would do that to a woman) is a reflection of our society and a nasty look in the mirror for all of us. I should say, however, that I consider Chris Brown to be far different from R. Kelly: He is still a very young man who makes mistakes and could possibly become a decent adult with guidance and significant intervention – which spoiled celebrities seldom receive.

    Don’t be surprised to see Chris hanging out with more rappers, where it’s actually a good thing to be arrested. He’s going to have a few more tattoos, a meaner “mug” on his next album and present a brand that embraces the hardcore image, yet not so hardcore that you won’t believe him when he sincerely apologizes and says that Jesus saved him. The new Chris Brown will be interesting.