The Other 8 Hours

Marriage and Credit: Join Lives, but Keep Credit Separate

admin — Wed, 28 Jul 2010 21:19:14 +0000

Guest blogger Philip Tirone explains four considerations of marriage and credit.

For some couples, the choice about marriage and credit seems obvious: open all marital accounts jointly. A husband and wife share all of life’s joys and triumphs, as well as its challenges and obstacles. Why shouldn’t they share credit cards, debt, and loans?

Though this might make sense on the surface, a different approach toward managing credit will help you position your marriage to prosper and, at the same time, allow you and your spouse to achieve your dreams.

First, let’s talk about how credit-scoring systems treat marriage and credit. Since you and your spouse are sharing a life together, you might think the credit-scoring bureaus will merge your credit histories. This is not the case. The credit-scoring bureaus will keep your individual credit reports open and separate. Joint accounts, or those accounts in which a spouse is listed as an authorized user, will show up on each of your individual credit reports. Accounts that list you as the sole owner will appear on your credit report only. In other words, the credit-scoring systems will treat you the same as they did before you were married.

This means that you have a choice as to whether you hold joint accounts or individual accounts. Following are several considerations you should keep in mind when determining your approach to marriage and credit.

Marriage and Credit Consideration #1: Joint Credit Cards

Though many couples are tempted to open joint credit card accounts, resisting this temptation has benefits. In the case of financial crisis, consider what would happen to each of your credit histories should you stop making payments on a joint account: both will be tarnished.

But if you keep all accounts separate, you can be strategic about forthcoming financial disasters.

Let’s say your spouse loses a job, and you know you can only afford to pay the bills for a couple of months. Before either of you becomes delinquent on your bills, you can transfer all of your credit card debt into your spouse’s name. Hopefully, your spouse can find another job quickly, at which point your spouse will transfer your debt back into your name. But if not, you are positioned to protect your credit.

It works like this. While you and your spouse can afford to pay the bills on time, you do. At some point, you and your spouse might need to make delinquent payments on your spouse’s credit cards.

Unfortunately, your spouse’s credit will suffer. Yours, however, will be protected. This means that you can continue applying for credit cards and loans while your spouse learns how to build credit after a financial disaster.

Though this might seem like you are hanging your spouse out to dry, this is not the case. If you have a high credit score, your spouse can lean on you temporarily, and this will strengthen your financial position and protect your marriage. And consider the alternative: if you have all accounts as joint accounts, or if you make delinquent payments on your credit cards as well as your spouse’s credit cards, both your credit score’s suffer.

Marriage and Credit Consideration #2: Who Holds the Credit?

Sometimes a couple may make the mistake of creating all the credit cards in one spouse’s name. In this case, the couple may be in for problems, especially if they apply for a mortgage together. If you hold all credit in your name, your spouse has no credit. And no credit is just the same as bad credit. Without a history of credit, your spouse will have a low credit card score because the credit-scoring bureaus will have no way of knowing whether your spouse can handle credit. Your spouse’s bad score could endanger the loan or force you to sign a loan with a high interest rate, even if you have a superb credit score. For couples that want to put both of their names on the title deed, this can be problematic and expensive.

The solution to this marriage and credit dilemma? Make sure you both learn how to build credit.

Marriage and Credit Consideration #3: A Wise Approach to Mortgages

With this in mind, I do often suggest applying for mortgages as a couple. In two-income households, this allows the couple to qualify for a much larger loan. That said, keep in mind that this can wreak havoc if the couple separates or divorces. Though you might not want to think about divorce, be sure you understand the implications of purchasing a home jointly, and what you will need to do should you ever divorce.

Marriage and Credit Consideration #4: Leverage Your Spouse’s Credit Score

In addition, spouses can leverage each other’s credit score to improve their own credit score. For example, a spouse with a subprime credit score can transfer some debt to the card of a spouse with good credit. At a later date, when the first spouse sees his or her credit improve, s/he can ask for a higher limit and a lower interest rate, and then transfer debt back to the appropriate spouse.

Considering these approaches toward marriage and credit will help you not only preserve your credit score but also position your marriage for smart financial decisions.

Authorized Users on Credit Cards: A Silver Bullet

admin — Wed, 21 Jul 2010 21:18:14 +0000

Guest blogger Philip Tirone explains the power behind authorized users on credit cards.

It stands to reason that credit scores fall in tandem with a struggling economy. In fact, more and more people are asking me to teach them how to build credit after a financial disaster.

The facts of bankruptcy, foreclosure, and repossession are clear: Unless you embark on a strategic plan to build your credit, you will pay higher interest rates on future loans. With more and more employers conducting credit checks, you might be turned down for a job. In some states, you might even pay higher insurance premiums.

I always tell people who have suffered a severe financial crisis that one of the first strategies they can use is to become authorized users on credit cards. In some ways, authorized users are a lot like joint users. Authorized users on credit cards can make charges. Like joint users, authorized users are often reported to the credit bureaus.

But unlike joint users, authorized users on credit cards do not need to qualify for a credit card. If your wife has a Visa card, you can become an authorized user simply by having your wife call the credit card company and ask to add you as an authorized user. The credit card company will then add your name to the account, even if your credit score is dismal.

Becoming an authorized user will quickly raise your credit score by allowing you to “borrow” the account holder’s clean credit history. Your score will increase so long as the account stays in good standing. The flipside, of course, is that your score will drop if the account holder makes a late payment.

To most effectively use this strategy, keep three things in mind:

Not all authorized users on credit cards are reported to the credit bureaus.
Choose the account carefully.
Shelter the account holder.

Authorized Users and the Credit Bureaus

In years’ past, some shysters preyed on people with poor credit by selling them authorized user status. The account holder and authorized user might be complete strategies who came together for mutual benefit. The account holder got compensated with money; the authorized user saw his or her score increase.

You might guess that the credit-scoring bureaus didn’t like this arrangement, as it was not an accurate method of determining whether a person is creditworthy. They changed the rules so that only authorized users on credit cards who are related to the account holders will see their credit scores change due to an authorized user account.

Therefore, be sure you choose an account holder who is also a relative. Try to choose someone with the same last name and address. Otherwise, the credit-scoring bureaus might not recognize your status as an authorized user, and your credit score might not improve.

To make sure that the credit card company is reporting your status as an authorized user, call them and ask. You can also check your credit report to see if the account is appearing. If not, choose another account holder.

Choosing the Account Carefully

If you become an authorized user on an account that becomes delinquent, guess what happens? Your score will drop. As such, be sure to pick an account with a clean history of payments. Be sure, too, that the balance on the card stays low—preferably about 30 percent of the limit. If the balance exceeds 30 percent, or if the account holder makes a late payment, you should immediately remove your name as an authorized user so the negative information does not hurt your credit score.

Sheltering the account holder.

Fearful that you will rack up huge charges you cannot or will not repay, your family members might not want to add you as an authorized user. To stop this from happening, let the account holder know that she or he can be protected from such behavior by making sure that you cannot use the account.

First, the account holder should shred the credit card that arrives for you.
Second, the account holder should refuse to give you access to the account by shielding the account number and credit card expiration date.

In this way, your credit score will increase while still protecting the account holder from any irresponsible behavior on your part.

The good news is that authorized users on credit cards usually see a quick jump in their score. After twelve or eighteen months, you might be able to remove yourself from the account and qualify for loans on your own.

Get the Best Car Loan: A How-To Guide

admin — Mon, 12 Jul 2010 19:53:53 +0000

Guest Blogger Philip Tirone

I have a lot of embarrassing credit-related stories. A landlord revealed one of his tenant’s low credit score right in front of her boyfriend. A bank teller once told me I was turned down for overdraft protection because of my low credit score—in fact, this was the impetus for becoming a credit expert!

Recently, a new client told me about an embarrassing experience at a dealership. She spent a couple of weeks searching for the right car, and kept visiting the same car salesman over and over. When she finally decided on a car, she applied for financing from the dealer, hoping to get the best car loan.

The dealer offered her a terrible loan package because her credit score was subprime. She was mortified. We met because she wanted to build her credit so that this sort of thing would never happen again.

She came to my teleseminar and shared her story with me, which got me thinking that, though credit is certainly a critical component of securing the best car loan, even people with great credit should know a few things about shopping for car loans.

First, the dealer might tell you that you have bad credit, even if you do not. For the record, anything about 720 is a great credit score. Anything above 700 is still considered terrific, but you might pay a little more in interest than the person with a score of 720. 660 to 700 is considered fair to good, and 620 to 659 is considered weak. Anything below 620 is subprime. In today’s strict market, you will probably need a co-signer if your score is not strong.

If your dealer tells you that your 710 credit score is poor, this is an outright scam. He is simply using a sale tactic to get you to sign on the dotted line and accept a poor financing offer.

The dealer is hoping that you think: I guess I can’t get the best car loan with my shoddy credit. I might as well accept this expensive financing package.

The number one way to avoid this unnecessary situation in the first place and get the best car loan is to already have the financing nailed down before you walk into the dealership. Dealers almost never offer the best loan packages, so it is almost always better to avoid bundling the purchase of the car with the financing, warranty, and trade-in of your old vehicle. Shop around for financing ahead of time, using banks, credit unions, and online auto lenders.

Then the dealer can make you a loan offer if he wants, but he knows you are going to compare it to other, probably better, offers. Even if you truly do have poor credit, there are far better sources of sub-prime auto loans than the dealership.

If for some reason you still want to find out what kind of financing the dealer can offer you, then the second important step—after applying for financing from other lenders—is to create something called “The Folder.” Simply create a folder that contains your credit reports, your credit scores, and some monthly payment calculations based on the target purchase price, interest rate, and loan term. Store your financing offers from the other lenders inside the folder, as well as information about the price other sellers of your desired vehicle will accept.

Be sure you check online to see how much other dealers from across the country are asking for the vehicle, and include this information in the folder. It is perfectly acceptable, and often less costly, to purchase vehicles online these days. Once your local dealership knows that you know this, it will be easier to negotiate.

Creating a folder with all this information puts you in charge of negotiations. If you want to get the best car loan, never enter the dealership without it.

The third important method to get the best car loan is simply this: get up and leave several times before agreeing to a deal. If the sales tactics are too heavy-handed—if the dealer is asking for your credit information even though you are not sure you want to apply for financing, if the numbers they are offering do not make sense, if it just feels like you are not going to get the best car loan—get up and leave. Shake the salesperson’s hand and tell him or her you will be in touch. Then walk out. If they tell you their offer is only good for a day, reply calmly and confidently that you are willing to take your chances, and then go.

Only once the dealer understands that you are knowledgeable, educated, prepared and willing to walk away will you start hearing their best offer. Have confidence and do not get emotional. You have financing from other sources, “The Folder,” and numerous other sources from which you can buy your chosen automobile and get the best car loan available.

Christina Perri: How to Become Famous Overnight

admin — Sun, 11 Jul 2010 21:37:42 +0000

This is how Christina Perri, singer of the (amazing) smash song Jar of Hearts, and my friend Barrett Yeretsian became famous overnight and what you can learn from their success.

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I recently wrote a column titled “The Secret to Success for Artists and Creatives” where I revealed that true financial and personal success comes from creating. That is, if you are an actor, musician, writer, director, sculptor, graphic designer, or what I simply call an artist, the only way to succeed is to stop aspiring — talking, hoping, wishing, and dreaming — and start creating.

Last week I received a call at 10:30 at night that reminded me just how important using the other 8 hours to create really is. “Rob, you’re not going to believe this…” is how the call started. Was I his one phone call? Did he need bail money? No and no. Turns out he was becoming famous overnight…

The call was from Barrett Yeretsian — a friend of mine for several years. I’ve been a huge fan of his for a long time. He’s an amazing musician, drummer, song writer, and producer. He’s an artist with a head for business. He was one of the first people to read a draft copy of my book The Other 8 Hours: Maximize Your Free Time to Create New Wealth & Purpose. In fact, his insights into the business of music helped me write the Music Cre8tor Channel in the book. He’s someone who has exploited (in a good way) his other 8 hours to create.

Over the past three months, Barrett has been working with Christina Perri, an unsigned singer-songwriter who has been serving coffee at a small café in Los Angeles and consistently creating and posting videos of herself on YouTube. She’s been struggling for the past four years to make a name for herself, but all that changed suddenly last week. After hours, Barrett, his writing partner, and Christina have been tweaking and producing a rough version of a song Christina originally wrote.

Christina has a friend who has a friend who works for the show, So You Think You Can Dance. This friend liked the original version of Christina’s song, Jar of Hearts, but it wasn’t quite ready. Now that Barrett, his writing partner, and Christina got Jar of Hearts where it needed to be, she took it back to So You Think You Can Dance. They loved it and decided to play it during last week’s episode. That’s when things got interesting for Barrett and Christina.

First, the song is amazing. It’s raw, riveting, and emotional. She has an incredible voice and the production is haunting. After just a two minute version of the song airs, the internet lights up. People love the song. Jar of Hearts rockets into the top 20 songs on iTunes and becomes a top 10 download on Amazon. She has become one of the most searched for terms on Google. Christina Perri has since performed Jar of Hearts live on the CBS Early Show and is scheduled to perform live on So You Think You Can Dance. Barrett has been flooded with requests and is talking to several of the largest labels and publishing companies.

It took years of hard work and long hours in order for Christina and Barrett to experience those life-changing two minutes. They both had other jobs and commitments. They both made time to focus on their passion. They both stopped talking, dreaming, hoping, wanting, wishing, and aspiring. They both created.

Becoming famous overnight takes hard work. It takes talent. It takes perfecting your passion. It takes sacrifice. It takes saying no to things that might be fun right now to focus on things that might not pay off for years. It takes creating something unique and special. Becoming famous overnight takes time. When you get your two minutes will you be prepared?

How to Become Unemployed in 7 Easy Steps

admin — Mon, 28 Jun 2010 20:24:41 +0000

If your job is getting in the way of your life, now is the perfect time to get laid off. First, there’s no stigma attached to not working since so many are unemployed. The unemployment rate is almost 10% and the underemployment rate — adding in those who gave up looking for a job and those who took part-time jobs even though they want full-time work — is close to 20%. You’ll be part of a select, albeit growing, group.

Second, many states offer generous unemployment packages and the federal government may extend benefits because of the weak economy. And third, if you’re anything like me, this recession has caused me to relax a little too much. Gone are the days of worry and anxiety. A few bounced checks and calls from creditors may be just what you need to add some spark to your life.

I tend to leave work-related advice to others, but since I see so many people toiling away their days working, I felt it was my mission to give you a few solid tips on how to stop giving up your day just because you need to pay rent and buy food. Carpe diem!

Here’s how to become unemployed in seven easy steps:

1. Be dumb. Even if you’re really smart, you can still nail this step because it has nothing to do with your intelligence and everything to do with your attitude. Make sure you have a the-company’s-going-down-and-I’ll-probably-be-fired mentality so you won’t work as hard and care as much.

2. Don’t learn anything new. You’re a know-it-all already, right? So whatever you do, be sure not to take a computer class or graphic design workshop. Do not earn your degree or get that designation you’ve been putting off. And certainly do not become more valuable to your current employer and more appealing to a new employer by using a few of your other 8 hours to boost your skills.

3. Stick to your job description. If your employer wants you to learn something new, they should pay you more. If they can’t afford it, stick to your job description and don’t spend any time learning how to do more than that. If there are layoffs at your company, fewer people will need to be able to handle more work. Ensure that you are a one-trick pony to almost guarantee you will get laid off so your cubicle neighbor can take over several of your tasks on day one.

4. Say “no” to everything. Boss asks you to head-up a new project. “No sir” is the answer. Boss wants you to pitch in on a new account. “I’d rather not” is the answer. The less engrained you are in the company and the less involved you are in various projects, the easier it will be to get rid of you. Added bonus . . . when things turn in the economy, you won’t get those annoying job offers or promotions.

5. Become invisible. Don’t write memos. Don’t bring your boss creative cost-cutting ideas. Don’t give workshops. Whatever you do, hide as much as possible and never show your face. This is especially true in a larger company. The fewer people who know you and like you the better.

6. Be negative. Don’t even think about being positive. The economy sucks and life is not fair. You shouldn’t have to do three people’s jobs. Make sure you are vocal about all of your problems. Bring your bad attitude to work, so you won’t have a work to go to.

7. Work fewer hours. Tough times are tough, so you deserve to work a little less. Don’t even think about using some of your other 8 hours to get in earlier or to stay a little later. Find out if your boss (or even better, your boss’ boss) is going to be in on the weekend. If so, be sure to brag to them on Monday morning about how you laid around the house all weekend.

There are millions of hardworking folks who sacrificed long hours to their jobs who got laid off. If you follow these seven simple steps, you too will be unemployed in no time!

You can download several free resources (assessment, poster, audio interview, video, and more) at www.other8hours.com and learn more about my new book, The Other 8 Hours: Maximize Your Free Time to Create New Wealth & Purpose.

www.yourother8hours.com

Conquer Your Inner Shopaholic With These Six Money Tips

admin — Mon, 28 Jun 2010 20:19:18 +0000

Last year I wrote a free 75 page ebook about how to survive the financial crisis. The financial tips in the ebook are for anyone who is struggling to make ends meet and wants to radically improve their finances. It has some great money tips, but I’ve had to develop new strategies to work with this woman who is driving her finances into the ground because of overspending. Think financial makeover on steroids.

Here are six financial tips you can implement today that will help you conquer your inner shopaholic and give you more financial peace of mind:

1. Don’t budget, PERK instead. Budgets work, but nobody likes them because they are hard to create and even harder to stick to. Fortunately, there’s a quick and easy solution I developed called PERK that takes about 15 minutes and can save you $250 to $1,000+ a month. First, list all of your expenses — everything. Then, next to each expense write a P, E, R, or K. For those expenses you can “Postpone” put a P. For those expenses you can “Eliminate” put an E. For those expenses you can “Reduce” put an R. For those expenses you must “Keep” put a K. Don’t let the simplicity throw you. It’s easy but incredibly effective.

2. Stop leaking money. We spend money on stuff that we don’t need or even realize. Things like cable channels we don’t watch, subscriptions we don’t read, and organizations we don’t care about. Take a close look at where your money is going by using a free online program such as Mint.com to track expenses easily. Cancel all expenses you don’t use or don’t need.

3. Create a buying buffer zone. The goal is to create a buying buffer zone of at least 30 days between the moment you want to buy something (usually in the heat of the moment at the store) and when you actually buy it. If you force yourself to wait 30 days you’ll find that most of the time you won’t want it anymore. If you still do, it means you really do want it. So instead of whipping out your credit card, whip out your camera. Take a photo of whatever you want to buy and post it on your “buyer board.” Write the date, the amount, and a short reason why you want it and how it will improve your life. After waiting the 30 days see if you still can’t live without it.

4. Get real. Fill in the blank: “The three most important things in my life are _______, _______, and _______.” Usually stuff doesn’t make the list. It’s important to get clear and conscious about what you value. Print this list, or even better, find photos that represent the three things you value (e.g., photo of kids) and put these photos in your wallet/purse. To make sure you look at them, put them in front of your credit cards. If you really want to get fancy, create a credit card condom. This is where you make a sleeve for each of your credit cards with a photo of what’s really important to you — this ensures you have to see your values before you spend money (especially on stuff that doesn’t match your values).

5. Volunteer. Get the focus off yourself, what you want, and what new thing you just can’t live without, and on to others who are in real need. This is great therapy and it doesn’t cost you a dime.

6. Boost your income. One of my irritations with traditional financial planning is the near-exclusive focus on cutting expenses. You need to live within your means, but let’s not forget about the other side of the equation — income! Use the other 8 hours to create — write a book, invent, start a side business, etc.

Changing your finances (and life!) starts by changing your mindset and behavior. Buy into the belief that you can improve your finances — just be careful what else you buy…

www.yourother8hours.com

What You Can Learn About Success From Apple’s Steve Jobs

admin — Mon, 28 Jun 2010 20:13:58 +0000

Love Apple‘s CEO Steve Jobs or hate him, he said something at the D8 Conference last week that resonated with me. It’s a lesson that can have a profound impact on how you use the other 8 hours to create a better life.

First, a bit of background. The iPhone and iPad cannot display Adobe Flash. This might not mean anything to you, but Adobe Flash is a technology used for many websites and currently a good deal of online video. If you have an iPhone or iPad there are many videos and websites you cannot view.

Some would argue it’s like buying a TV and not being able to watch ABC, NBC, or dare I say, CBS. Doesn’t sound like such a smart business decision, does it? In the long run, it may turn out to be a bad move on Apple’s part, but keep in mind Apple’s market cap has recently exceeded Microsoft‘s and there have been over 2 million iPads sold within the last two months. The folks in Cupertino have clearly been doing something right.

So, why in the world would Apple make such a dumb decision? Maybe it’s not so dumb after all. Here’s what Steve Jobs had to say:

“Apple is a company that doesn’t have the most resources of everybody in the world. The way we have succeeded is by choosing which horses to ride very carefully.”

There is a reason this man is a billionaire. It is this kind of thinking you have to respect, and if you’re smart, copy. Apple is one of the largest companies in the world. Surely they have the money, personnel, and resources to do whatever they want, right? Wrong says Steve. He recognizes that time/money/energy spent over here means less time/money/energy spent over there, but what if over there has much greater potential than over here?

Lesson? Focus, focus, focus. Don’t try to do everything. Focus on just a handful of things that are meaningful. This will give you more resources to invest in what matters most. Your free time is precious. You don’t have eight hours of free time – nobody does. Between long work hours, family responsibilities, cleaning the house, and things like eating and bathing, you might have at best 30 minutes to a couple of hours a night that you can call your own. How should you invest this time?

Follow Steve’s advice . . . “we have succeeded by choosing which horses to ride very carefully.” He’ll be the first to tell you that Apple’s products don’t do everything. The lesson is that sometimes it’s not so much what you do, but what you don’t do that makes all the difference.

Which horses in your life should you dedicate more time and energy to ride? Play a round of golf with the guys or work on the prototype for your invention? Have drinks with the gals or get home to finish writing the chapter in your novel? Get rid of anything and everything that is pulling you from what’s most important — maybe even those things you think you’re supposed to do. Referencing earlier decisions to focus on less, Steve said “peopled called us crazy.” Crazy today can be genius tomorrow. The less you do the more you can achieve.

(Steve Jobs image by insidetwit, CC 2.0)

www.yourother8hours.com

5 Tips to Avoid Bad Decisions

admin — Mon, 28 Jun 2010 20:09:18 +0000

The holocaust never happened. The moon landing was staged. And Sex and the City 2 is a great movie. How do I know this? I did a Google search. No matter what your position, you can find support. The lesson? Be careful what you ask, or maybe more appropriately, be careful how you ask. In psychology, the term for this is confirmation bias and it can have damaging consequences for your finances and your life if you’re not careful.

Nobody likes to be wrong, so we’ll actively try to find support for our existing beliefs. We’ll scour the web to try to find anybody saying anything that remotely resembles our own beliefs. “Well, how can I be wrong when blogger ‘iheartcarrie’ clearly agrees with me?” we ask.

The problem with confirmation bias is that you selectively filter what information you choose to pay attention to and value. So not only will you actively look for evidence and seek experts that confirm your existing beliefs, but even more pernicious, you’ll hide from or discredit any information that contradicts your viewpoint. This can cause you to dump money into a failing business, time into a bad relationship, or even to stay in a stock too long.

For example, let’s say after watching the stock market go up and up and up over the past year, you decided to jump back in a month ago (woops). Now you’re fully invested and you’ve just seen the market drop 10%. If you’re suffering from confirmation bias, instead of rationally evaluating the long-term economic and financial outlook of the U.S. and global economy, you may selectively read just those blogs or columns that are bullish. If you come across an article that is bearish, you’ll dismiss it, or maybe not even read it.

Confirmation bias isn’t just a problem for investors. It’s a problem you need to be aware of when looking for a spouse, starting a business, interviewing for a new job, managing people, and any other situation where a supply of fresh information can help you make better decisions.

Confirmation bias is very difficult to recognize, but here are five tips you can use to help minimize this cognitive distortion:

Remove your ego. At its root, confirmation bias is an ego disease. We hate to be wrong and we’re desperate for others to validate our position. Seek the truth over being right, because if you disregard the truth long enough, you’ll eventually be proven wrong anyway.
Seek disagreement. Foster an environment where it is not only okay to disagree but encouraged. Asking friends, family, and employees “Am I right?” will likely get only those who agree with you to speak up. A better question is, “Why am I wrong?” At meetings, require everyone to play devil’s advocate. Early on it might be difficult to get this kind of feedback from others because they’re probably not used to thinking about why you’re wrong (well, at least verbalizing it), so turn it into a game and reward the best answers.
Ask better questions. One of the most worthless questions to ask a friend or co-worker is “How do you think I did?” It’s worthless because you’ll never get any constructive feedback. A much better question is “What could I have done differently to make it better?” By changing the question ever so slightly, you’ll be shocked at the honest advice you’ll hear.
Keep information channels open. Constantly seek alternative views and opinions in print, on TV, and in person. That might mean visiting websites, reading newspapers, and watching shows that you’ve previously avoided. Remember, seek the truth, not evidence that you’re right.
Google better. Don’t search what you want to prove, because with over 3 billion web pages, you’re bound to find one that agrees with you. Instead, use open-ended searches that aren’t biased.

Keep these five tips in mind and you’ll avoid confirmation bias. Now if you could only avoid Sex and the City 2…

(Monkey image by johnsnape, CC 2.0)

www.yourother8hours.com

Are You Living in the Financial Danger Zone?

o Safe Zone

You have nearby family/friends who can provide support (e.g., childcare, housing).

If you have people who can help you if your car breaks down, if you need someone to watch your kids after school, or if you need a place to stay while you get back on your feet, you’re in the Safe Zone. If you don’t have this kind of support network you are much more vulnerable.

How to Score and Think About this Quiz

Two important points: First, just because you are in the Danger Zone on one or more of the questions doesn’t mean you are going to be out on the street. It just means that you have some serious potential problems that you need to recognize and address. Use your fear to motivate you, not paralyze you. Determine what you need to do to move into the Safe Zone and take action. There are plenty of free books and blogs such as those right here at CBS MoneyWatch as well as Get Rich Slowly, The Financial Samurai, The Simple Dollar, Bargaineering, and Man Vs. Debt with tips and advice.

Second, if most of your check-marks are in the Safe Zone, congratulations. Feel good about your situation but don’t be too smug. As we’ve seen, things can change quickly. “Safe” today can be a problem tomorrow. Spend some time building an even stronger foundation. Continue to create. Focus less on the headlines and more on how you can come out of this mess better and stronger.

www.yourother8hours.com

Start-Up Help: How to Go From Idea to Business

admin — Mon, 28 Jun 2010 19:54:21 +0000

My latest book has received endorsements from bestselling authors and thought leaders, as well as praise from readers. However, there are some who read The Other 8 Hours and get angry. Yes, angry. Some have said they are “furious.” They complain that they are too busy and it is too hard to start a business with very little money. While they are busy complaining, Jeanne Cygnus is busy ramping up her business…

Jeanne works full time and is a full time mom — she shuttles her kids to and from activities, makes dinner, and spends time with family. Not so long ago, she had an idea. Jeanne’s day job is a private practice counselor for new moms with lactation issues. She works with moms individually and also has group classes. She saw a need in the market that nobody was effectively addressing — what to do with moms going back to work who still want to breastfeed. The majority of companies don’t have programs available even though up to 80% of new moms return to work.

Jeanne started LactCorp, but faced three challenges. First, she had very little time to devote to the new venture. She said she “got good at finding spaces in my day to focus on the new business.” She said that while the other moms were chatting at kid’s events, she was going through paperwork and launching her business. She had to rearrange her schedule, limit computer time, go to bed a little later, and clump activities together. Bottom line, she said she “eliminated dead waiting time” from her day.

Second challenge Jeanne faced was not having enough money. As a Cre8tor, she had to get creative. Aside from the cost to form an LLC, she has invested less than $1,000 into the new business. She also has hired her two children. They represent Jeanne’s shipping department.

Her third challenge, and probably the most significant, is that she’s an expert on lactation but admits she is not a business person. Her knowledge and gumption got her so far, but when a big HR consortium came knocking, she knew she needed some help. Jeanne didn’t need a $5,000 business plan or a lot of expensive business theory. She needed specific questions answered efficiently and cost effectively.

So she turned to a unique service called LivePerson, which connects experts with those needing help. Jeanne was familiar with LivePerson and trusted the service because she is a LivePerson lactation expert herself. After looking through LivePerson’s small business expert database and reading reviews, she selected Clayton Gilman, a highly reviewed business coach that charges $2 per minute (LivePerson typically earns a 38% commission on live chats and 30% on email sessions for most topics).

Jeanne asked Clayton pointed questions about what she needed to do in order to partner with the HR consortium. Clayton, she says, was a huge help. She said she “would be lost” without Clayton’s guidance. Because she works her side business “after hours,” she loves that she can initiate a live chat with Clayton until the wee hours of the night and get answers she needs.

With very little time, money, or business acumen, Jeanne’s success is inspiring. She is signing the deal with the HR group and projects gross revenues of nearly $2 million this year. And because of her recent success, she has three different investors willing to cover any up-front costs her business will face as the HR partnership takes hold. Should she take the investor’s money? Sounds like a question for Clayton…