It’s income tax season. Hardly wealthy families love this time of year, as they anticipate in advance a ton of things to spend with it. This song capture’s the backwards thought process beautifully:

The video showcases lots of money flowing around and fancy cars. We’ve seen it all before. While some hip-hop artists are making big money, it seems to be all about how quickly they can spend it. Sure, it could just be a mirage. But in the case of Cash Money artists Baby Birdman Williams and Lil Wayne, they aren’t exaggerating when they boast that they have “money to blow” because they literally blow their money away. Whether they should be doing it or not, is another question.

In the latest hit single “Money to Blow”, the chorus notes the following:

Since I got famous but b-tch, I got money to blow
Im gettin it in, letting these bills fall
All over your skin
Got money to blow oh oh oh oh

Blowing Money

•    Both Birdman and Lil Wayne have six figure grills. Lil Wayne’s grill cost $150,000, and Birdman’s grill cost $500,000.
•    At one point owned over 50 cars and 200 rims.

•    Bodies are covered in tattoos, which must add up
•    Overpriced diamond, gold, and platinum jewelry

As of recently, we haven’t heard of too many outrageous purchases from Lil Wayne and his cohorts. Let’s hope that the man has gained wisdom from the many years of being in the industry. OK, scratch that. After thinking about how many children he’s fathered over the past two years, we take back what we said, considering he’ll be forking over child support to three different women for 18 years.

Lesson to Learn:

Spending money is not empowerment. Ownership that accrues wealth over time is powerful. Wealth begets wealth. Spending begets becoming broke. Viewing an exchange of money for goods is the greatest deception of all time. It’s the one thing hardly wealthy families MUST hang onto more, but they don’t. So, the next time you think about blowing your money, don’t.

Greece is only one piece of the broken chain within the EU nations. So, once shouldn’t sigh with relief once Greece’s problems blow over. Once their situation is resolved, all attention will refocus itself onto those other problematic countries. There has been a lot of speculation, and let’s just say that things aren’t looking well for the Euro.

Hedge Fund Trouble

Big institutional traders are looming in the background like a vulture waiting for its prey to fall. The subjects of all the scrutiny belong to PIIGS: Portugal, Italy, Ireland, Greece, and Spain. This well spread-out debt crisis may reveal that the Euro is indeed overvalued. Hedge funds and big traders see it as an opportunity to short the Euro.

In fact, the wager against the Euro has gone beyond just talk. The Globe and Mail reports that many banks, institutions, and hedge funds might have already made moves against the Euro and the British Pound. The moves have become so controversial that the US Justice Department have asked four hedge funds to turn in their trading reports. They aren’t just your average hedge fund either. They are THE hedge funds of the hedge fund world: Greenlight Capital, SAC Capitol Advisors, Paulson & Co. and Soros Fund Management. Soros Fund Management is operated by George Soros himself, the man who single-handedly brought down the British Pound and earned $1 billion dollars in one day. It’s safe to say that there’s a lot for these indebted European countries to worry over.

Possible Rescue?

Stronger European countries like Germany and France are hoping to soften the impact by taking on the debt for these five countries. Their contribution could result in a stronger political and economic role within these countries. However, Greece currently holds a debt of 6.3% of its GDP and France holds 7.5%. The question becomes, can they really afford this debt?

In Conclusion

Bigger scrutiny should be put on the situations that got these countries in this predicament in the first place, which we speculate greedy institutions and politicians. Otherwise, a bailout will be pointless if the money goes into these same hands. The US bailout of big institutions reveal that money remains in the hands of the elite, while the average citizen suffers. Perhaps these countries just need to face the music and let the markets correct themselves.

Opportunity: In the oncoming months, the dollar could be closer to the value to the Euro and British Pound. That spells an opportunity for travel, sales, importing, exporting, etc. For seasoned investors, it could also mean an opportunity to profit from the Euro’s potential devaluation. Furthermore, it could also present a buying opportunity once the Euro sinks to a lower value.  So, there just may be a silver lining in this European cloud afterall.

The 2010 Winter Vancouver Olympics are just downright inspiring. It’s a concentration of dreams, dedication, focus, and drive. It showcases the glory of those who have mastered their craft. It rewards their hard work. Beneath it all, there lies universal principles that we can all learn from.

1.    Don’t Get too Greedy: The Koreans had a good thing going in the 1500 m speed skating competition with three Korean skaters positioned for all three medals… that is until one started to get too aggressive. Then it all caught up to them right before the finish line when Ho-Suk Lee fell, taking his comrade Si-Bak Sung with him.
2.    Have Patience: Chinese skating pairs couple Zhao Hongbo and Shen Xue made Olympic history by becoming the first Chinese couple to win Gold. However, this victory did not come overnight for the married duo. They had retired in 2007 but decided to come out of it to give the dreams of gold once last try. And the rest is history. Their victory took eighteen years, surgery, and separation from family before it surfaced. It’s the stuff that dreams are made of.
3.    Adversity Can Lead to Best Results: This story was told time and time again at the Vancouver Olympics, but the story that stood out the most was that of Lindsey Vonn who skied her way through a sprained shin to gold. The athlete had injured herself only 10 days before the event. With a sport that can have you flying at speeds of 60 mph+ and using a lot of footwork, it certainly didn’t look good. Instead of lying in agony, she decided to make it work and go for her dreams full force. Her victory is another testament to how setbacks can actually lead you to another level of greatness.
4.    Small Can Make a Big Impact: As small of a country as South Korea is, they made a huge impact in the men’s speed skating events. Instead of spreading themselves out to participate in every event at the Olympics, they focused on a select few with intricate detail that led to them being a powerful force to reckon with in the various skating events. For a country with the population of about 48 million people, they scored fifth in earning the most gold medals, right under Canada, Germany, US, and Norway. Not bad at all!

5.    Prepare for the Worst: It was devastating for the Olympics when it was discovered that Georgian luger Nodar Kumaritashvili had passed away from a practice run on the track. It was in further poor taste for officials to comment that poor Nodar was too inexperienced for use of the track. However, they realized that there were many safety precautions that hadn’t been addressed and quickly moved to put them in place in less than a day. It’s so unfortunate that it took the life of someone to learn that lesson. However, we can learn to take proper precautions and make back-up plans should a catastrophe affect us.

*Images courtesy of UK Eurosport, ESPN, Amy Sancetta, and NJ.

It’s a week into the new laws being passed against banks and credit agencies. It’s still too early to decide just how much the CARD Act will hinder banks’ sneaky ways. However, we’ll focus on the much needed improvements and how they’ll serve credit card and banking consumers. It’s one step forward for the moment, and Main Street needed to feel something added legally in their favor for once by Congress.

We’re most excited about the fees banks will occur if they breach the new act. They’ll have to pay anywhere between $500-5000 per illegal occurrence. Talk about returning the favor! So, if you notice any breaches from your credit or banking service, report it!

Outlining the Details of the CARD Act:

1. Rates & Fees: Those random excuses to raise credit fees in the name of “just because”…Yeah, bye-bye…for now. Now there are set rules in place that indicate the reasons for an increase in your interest rate, which are:
- Signing an agreement that states your interest rate is/was variable rate
- Signing an agreement that had or has a promo/teaser rate
- The minimum payment hasn’t been paid in 60 days.
- You cannot be charged an over-the-limit fee unless you opt-in.
2. Statements: They must be sent out at least 21 days before payment is due.
3. Payments: Three great things:
-  Have a consistent due date each month
-  Must count as paid on-time if paid before 5 PM.
- Allow payments to count within due date if sent the next business day after a holiday
4. Age Restrictions: All individuals under 21 will not be allowed to sign up for a credit card unless:
-  They have a co-signer
-  They can verify that they receive enough income to maintain credit
5. Prepaid & Gift Cards: Gift cards, gift certificates, prepaid cards, or store gift cards cannot be charged additional fees, with the exception of a initial issuance fee.

Check out this chart from Bill Shrink.com for a visual:

Find the best credit cards at BillShrink.com

While African-Americans may only make-up 13% of the population, they have made significant contributions that have impacted the entire nation. It’s remarkable to look back on these accomplishments and see the miracles that occurred as a result of adversity, less money, and less resources. If examples of minority fortune occurred centuries ago, it goes to show that it’s definitely possible today. Therefore, we’ve presented a few extraordinary examples of the past as inspiration!

William Randolph Hudgins (1907-2007): He was an African American entrepreneur who founded the Carver Federal Savings and Loan Association in 1948. It was the first bank founded with the purpose to serve the black community. Entrepreneur Magazine notes that it was started with $250,000 in assets and $14,000 in cash. The rest was contributed from the community. For seven years, he worked without a salary in order to invest in his dreams. As of today, it still remains the largest black financial institution.

After serving as the president of Carver Bank for eighteen years, he resigned to aid in establishing another bank, Freedom National Bank. He was a pioneer and a leader in providing financial services to the African American community. While he passed away at the age of 100 in 2007, his legacy will continue to live on.

George Washington Carver (1864-1943): Carver was a remarkable black inventor and agricultural chemist. He forever changed history with his 300+ uses for peanuts and 100+ uses for soybeans, sweet potatoes, and pecans. About reports that he also invented the crop-rotation method which enabled the South to grow beyond its primary soil-depleting cotton crops to soil-enriching crops such as pecans, sweet potatoes, peas, peanuts, and soybeans. He also produced over 500 shades of dye and discovered a way to make paints from soybeans.

Carver received numerous awards for his work. Booker T. Washington invited him to serve as the Director of Agriculture at the Tuskegee Normal and Industrial Institute for Negroes in 1897. He served there until he passed away in 1943. After his passing, he was honored by President Roosevelt with a national monument. A park in his childhood hometown in Diamond Grove, Missouri was named after him, making it the first national monument awarded to an African American.

Carver did all of his extensive work with a philanthropic train of thought. Out of all his remarkable accomplishments, he only applied for three patents for one of his inventions. His logic was that “God gave them to me. How can I sell them to someone else?” He even declined an offer for a $100,000 salary (about a million in today’s terms) to work for a firm. He was a man with worth that couldn’t be defined by dollars, and we’re forever grateful for it.

*Images courtesy of Educational Synthesis and Meyer Liebowitz.

Katt Williams was a promising urban comedian who had captured worldwide attention after his appearances on Friday After Next and Nick Cannon’s Wildin’ Out show. And indeed he was making his own way in Hollywood. His last performance tour grossed over $50 million. It seemed as if he would soon be gracing the Forbe’s hip-hop list at any given moment. That was until…

In November of 2009, Katt Williams was arrested for allegedly breaking and entering into a home. Later it was discovered that he had permission to stay in the home, but questions soon arose over the comedian’s mental health. Not soon after, another arrest followed concerning an alleged battery over a debt owed. Williams issued a video and defended his sanity and financial solvency, stating that he still had a $1 million dollar check he hadn’t cashed and had held for a year. Another story shortly followed that he wasn’t allowed to stay at the Four Seasons in Atlanta, despite the fact that he had enough cash to cover his stay. Something just wasn’t adding up.

Apparently that $1 million dollar check isn’t cutting it. What seemed like frantic, psychotic behavior is now mirroring the same predicament as Nicholas Cage. Black Voices reports that his Rolls Royce has been repossessed. It seems to only be the beginning of money problems for the comedian. His Californian mansion that was noted as a “small city” by Kathy Griffin is going into foreclosure. It’s also noted that Katt has a small fleet of exotic vehicles that also may suffer an uneventful fate. Worst of all, he seems to be tarnishing his reputation in Hollywood by violating his contractual obligations whilst holding on to the advance money.

*Image courtesy of The Shaka Show

Greece has been getting a lot of attention lately due to their steep debt woes. With their debt being 130% higher than their GDP and being in risk of defaulting, it’s enough to have the whole world paying attention. If a solution isn’t reached soon, it could result in a falling euro and the beginning of other major international defaults. Simply put, debt is not attractive.

Meanwhile, most of the countries on-looking the calamity occurring in Greece and other countries must pay heed to their own impending problems. This economic crisis is shining light on fiscal irresponsibility, and it could happen to anyone that’s not in control of their spending. To be frank, Greece’s problems are being practiced in various scales around the world. We’re all at the most only six degrees separated from the same predicament as Greece.

There’s always hope for a recovery in the midst of financial disaster. However, it’s a pain to deal with. It is wiser to avoid it. In order to avoid the situation of Greece in our personal lives, we can be mindful of a few things:

1. Cash Flow: Greece was spending more money than its GDP could produce. We should spend less than the amount that we bring in to yield a positive cash flow. Otherwise, you’re writing a check that you won’t be able to cash one day.
2. Honesty: It’s a tough job to keep up with the lies that you tell in regards to your financial situation. Greece has done a number on its reputation by cooking its books and avoiding the truth in regards to their situation. They may have never been this deep in hot water had they been transparent from the beginning. Don’t “cook your books” (manipulate the numbers) in order to impress anyone. Once you’ve been labeled as deceptive, you’ll have to work twice as hard to gain reputation and trust back.
3. Focus: Sure it’s tempting to poke your nose in everyone’s business. However, it will make you no more productive on your own personal/financial issues. In order to avoid having the spotlight on your own bad judgments, it’s better to anticipate and work on them. Staring and commenting on Greece’s situation doesn’t get you any closer to solving your own.

You Answer: Are there any other lessons that can be learned from this situation? Do share in the comment section!

*Image courtesy of Scott E Barbour.

Plaxico Burress, the former Giants football player, is paying for his lack of common sense to the tune of two years in prison for playing around with an illegal handgun in his pants that went off and hit him in the leg. If only he could use his time to additionally pay for the home that is in risk of going into foreclosure. By the time he’s possibly released, which could be as early as June 2011, he may not even have a home.

The home was purchased in 2005 for $4 million dollars. According to the NY Post, the value has now dropped to $2.3 million dollars in value. Records reveal that he’s now $250,000 behind in his mortgage payments.

The sad thing is that Plaxico had once proven himself to be valuable to the Giants. It was in 2008 that he was awarded a $35 million dollar contract for five years after helping the team win the 2007 Super Bowl. However, he moved forward to make himself dispensable after shooting himself in the leg only two months later. Now he’s out of a contract, freedom, and possibly a career. While he hopes to rejoin a team after he gets out, we all know that it won’t be easy for him.