Receiving | Total Wealth

Are You a Financial Martyr?

Kate Phillips — Tue, 21 Sep 2010 07:49:25 +0000

A friend of mine, who happens to be a successful, self-employed business owner, was the victim of financial fraud. Not from a stranger, but from someone he knew very well. When his daughter suddenly requested more money for college expenses, he suggested a later time to discuss her request. However, his daughter’s mother – his ex-wife – had a more immediate solution to his daughter’s cash flow needs. After all, she knew her ex’s social security number and could imitate his signature. When my friend discovered what had happened, he did not lay down like a doormat as the ex had hoped. He took legal action. It was complicated (for everyone), embarrassing (for her), and frankly, the only self-respecting option he had. More than happy to discuss and provide for his childrens’ real needs, he was not about to be taken to the bank in such an underhanded way. He stood up for himself, and righted the wrong, removing the item from his financial record, and placing the responsibility with the person who had signed the fraudulent loan papers. Shortly after hearing this story, I met someone else, a middle-aged woman. She was exhausted, working three jobs. As I inquired about her circumstances, she revealed that she was paying off a number of credit cards – that she had not opened or authorized herself. Her own ex had hijacked her social security number and forged her signature, obtaining credit cards against her knowledge. She discovered the situation when angry creditors started calling. The cards were maxed out and late, and her credit was ruined. “Why are YOU paying them off!?” I asked incredulously. “You realize, that’s FRAUD!?” “I know, but I didn’t want to sue him or get lawyers involved,” she answered with a tired sigh. “But… but… you shouldn’t…

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The Price is Right

Kate Phillips — Tue, 30 Jun 2009 17:07:25 +0000

Are you undercharging your clients? Prevent regret and resentment by pricing strategically, not out of fear and scarcity.

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Autumn Contemplations, Financial Chaos, and Spring

Kate Phillips — Wed, 15 Oct 2008 13:19:05 +0000

The chaos in our financial markets seems to stand in contrast to the serenity of a beautiful fall day, with many-colored leaves on display and the gentlest of breezes giving them breath. But look closely… I often find that my life tends to mirror and follow the season, both in exterior patterns and interior rhythms. And perhaps the financial markets, which at a glance appear to be such a contrast to this autumn beauty, are doing the same. Leaves die and fall to the ground in preparation of winter. It is “Fall,” literally, the season of falling leaves. The trees shed their leaves in preparation for winter. They anticipate the coming season of longer nights, less sun, and cooler temperatures. As fall becomes winter, visible growth comes to a stop, although the roots continue to burrow into the soil in preparation of spring. I believe we are witnessing the “Fall” of the financial markets. Literally. (I don’t mean their demise or their destruction – I’m not that dramatic or pessimistic.) It’s Autumn in the banking industries and the stock market. The crazy growth of spring seems to be an illusion. Inflated profits, inflated prices, inflated expectations…. And while much attention has been focused on the excesses of Wall Street, there has been plenty of over-reaching on Main Street too. The average American saves 1% of their income, but spends up to $104% of their income. How is that even possible!? The average American is more in debt each year than the last. I hear that Americans are more likely to declare bankruptcy than graduate from college, and now that we can’t refinance our homes due to ever-growing equity, we are up a creek without a paddle. We want, we buy. “Buy now, pay later!” “No interest for a year!” Credit is not a bad thing. Credit has…

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