Have you keyed into the financial information bounty that is Tip’d?

Tip’d is a community for financial news, ideas and tips. It operates as a social media platform, meaning the community (you) decides which news stories and investing tips should be published on our homepage. Tip’d users vote on stories they like by clicking the ‘Tip it’ button that appears next to each story, and then can comment by pressing the ‘Discuss’ link below the story.

Tip’d is a repository of interesting posts and articles in 10 different categories. You may submit your own blog posts.

Tip’d is like Technorati and Digg in that you decide what finance or investing article is informative and should be Tip’d. It’s a great place to do research or quickly scan the latest financial articles. It’s a great resource.

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The Hairy Armpit Gang (HAG) works for their own best interests. Don’t get blinded by their alleged pedigree — education, supposed knowledge, or white collar persona. The Hairy Armpit Gang is made up of crooks. They are predators. You need to protect yourself to not become a next victim. You must take a leaf from their operating philosophy and work for your own best interests.

The HAG is another reason why you want to learn more about money. Why you must understand more, ask questions until you understand the issue, and feel confident enough to take care of your money. Then you can begin to trust. And verify (the information received, your account balance) often. No one will do it for you.

Financial Fraud Is UnAmerican

Financial fraud is bad. It hurts people and screws up our economy. The fraudsters do not care who gets caught in their trap. Financial fraud is fundamental disrespect for all of us.

If the fallout of the $700 Billion financial bailout package has not been made clear to you, let me share my thoughts. My mini rant. Listen up.

We are bailing out people and corporations who knowingly traded worthless securities around the globe. They HAD to know the value of packaged sub-prime securities was decreasing, and would continue to do so. They HAD to know the significant risk inherent in this class of securities. They HAD to know that some banks, investment houses and others would be left holding a bag of worthless paper.

What’s UP with that? How do you deliberately make decisions that will hurt the economy in your own country? What manner of privilege allows one to think he or she has the right to screw the people and the country? I don’t get it. Maybe I can’t get it because I’m not a member of this privileged American minority group. However, this reminds me of the insensitive arrogance of the corporate boards of directors that decided outsourcing American jobs was a viable way to grow their businesses. Whose best interests were they maximizing? What were they thinking?

What makes us think we can trust a bunch of self-serving, highly-privileged guys without regulatory oversight of their actions? What victim mentality allows us to delude ourselves into believing our monies are safe with these people? What naive part of us would have assumed they would “do the right thing?” Puhleese.

As the economy weakens, the unmasking of financial fraudsters will grow. There will be more like Bernard Madoff, “The Most Hated Man in New York.” Madoff was charged with one count of fraud last week, having confessed to creating a huge Ponzi scheme with estimated losses of $50 billion.

My Mom always said, “God bless the child that’s got her own.” I add, God bless the woman who knows how to manage her own.

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Your money talks. Make sure you are listening.

As you move further into holiday shopping, cover your ass(ets) by keeping these simple money management tips in mind. They will help to infuse your buying behavior with knowledge, caution and confidence.

• Assets make you money. Examples of assets are investments in profitable real estate, businesses, and appreciating stocks.

• Liabilities cost you money. Liabilities include the mortgage on your home and the lease on your car. Don’t get confused. Your home is an asset on the mortgage holder’s balance sheet. Until it’s paid for, your home is a liability on your balance sheet.

• Doodads are impulse purchases that decrease your cash flow. Doodads are eye candy that you think will make you happy, healthy, sexy and confident. They don’t. Doodads provide momentary pleasure while depleting your cash. Leave them in the store. You have bigger dreams to realize.

It was playing Robert Kiyosaki’s Ca$hflow game that helped me *get* these financial facts. If you haven’t played it, I recommend that you do. Play it often. I agree with Rich Dad’s claim — ‘The more you play this game, the richer you become.”

Ca$hflow would be a wonderful gift for your family and friends. It’s a gift that keeps on giving you knowledge, investing experience, and exposure to the world of finance. It teaches you how to get out of the Rat Race — where you’re a paycheck or contract away from big time money troubles. This knowledge is especially important in these times of economic uncertainty.

• Free is good. Market Watch’s Free is Priceless includes specials in finance, entertainment, books and guides that are well worth checking out.

What sites have you found to reduce your holiday expense? Do you know other personal finance and wealth building games? Share the links with us. Thanks!

Let’s thrive!

Judith

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Image by bradipo via Flickr

You can learn more about personal finance, investing, budgeting, and spending consciously by reading personal finance blogs online. It’s been an enjoyable way to brush up on topics I am familiar with, and an easy way to  learn new subjects I hadn’t considered.

I started reading personal finance blogs after I started writing this blog. The personal finance niche appears to be a low-key group of bloggers. But any niche compared to the Internet Marketing niche, with which I’m more familiar, is low key. The personal finance niche doesn’t seem to promote themselves as broadly. At any rate, I wasn’t reading these blogs. Big mistake! I should have.

Now I subscribe by email to these blogs. I subscribe to the email feeder so the posts don’t get lost in the clutter of my RSS reader.

Click, read, learn more and enjoy the process. You’ll be amazed at how much more you understand about money, and how quickly you’ll become very knowledgeable. You might as well become your own expert money adviser.

Tough Money Love

It’s too bad no one had earlier explained to the Jones that “living within your means” is a function of income and outgo, not asset appreciation and outgo.  It’s also too bad that financial writers in the Times and other media outlets didn’t jump on this issue two or more years ago, when the real estate bubble was still growing instead of blowing up.

I Will Teach You To Be Rich

Today’s tip is to never pay retail prices for clothes again using some sites you’ve heard of, and a bunch of sites I bet you haven’t.

My Money Blog

Dilbert’s One-Page Guide to Everything Financial

Get Rich Slowly

But what happens when you add children to the mix? How do you plan for them and for yourself at the same time?

Taxes Made Simple

Filling out a W-9 is pretty easy. On the first line, simply enter your legal name (if a sole proprietorship) or the legal name of your business (if an LLC, corporation, or partnership).

I’m impressed with the quality of the content shared by the wise people who write these personal finance blogs. I believe you will be too. Let me know what you found most informative. Your comments are welcome and appreciated.

My favorite finance-related blogs are coming soon. Share your favorites too. Thank you!

Warmly,

Judith

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Join me Friday, December 12 on Blog Talk Radio’s The Passion Project with host Katherine Reschke. We will discuss how to prepare your 2009 Income Plan.

Katherine and I will also talk about how to stay open to abundance and prosperity during a widely-reported economic downturn.

The show airs live at noon EST (11am CST, 10am MST, 9am PST and 5pm GMT) on Friday at BTR’s The Passion Project.

I’d love it if you can join us in the chat room for the live show. If your schedule does not allow that, please click to replay the show at your convenience.

Let me know what you think about our discussion. Share with us in a comment how your planning is coming along, and what tips you use to prepare your Income Plan. Thanks!

Warmly,

Judith

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It is a good idea to use insurance as a hedge against assuming significant financial risk. Do you know what the most important types of insurance coverage that you need? Are you adequately covered? How can you insulate yourself from excessive risk during these times of financial stress?

Kevin Gear, The Money Hawk, has written an interesting post on Five Insurance Policies You Must Carry To Avoid Financial Disaster. Learn what coverage you need to maintain, especially if you’re thinking about letting any of your policies expire because of the cost. Thanks Kevin for sharing this information.

Are there different policies you think should be on the “must have” list? Let me know what your experiences suggest. Thanks!

Warmly,

Judith

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Insurance giant American Insurance Group (AIG) is Back! Begging. Well, not really begging. Playing its Mo Money cards.

As predicted here less than a month ago, AIG is asking for another government handout. Or is it a hand up?

The ante up amount is $40 Billion more. The government is hedging this questionable move with it’s an equity infusion. We the American public are going to buy shares in this corporation. Doesn’t everyone in their right mind want to buy stock in what is apparently a poorly-managed and inefficiently-run corporation. A corporation that will need more emergency funding in the near future.

Total Expected Handouts to AIG to date = $150 Billion. Wow.

Are we enabling incompetence? Hmm.

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Image by lyyyl via Flickr

On our continuing journey to learn more about money, let’s talk about price discounts.

When selling products, prices are regularly discounted with an On Sale or 25% off sign. Sales are initiated for many reasons - overstock, slow sales, going out of business, and the need for more cash flow. Sales are viewed as a boon to the consumer. Some sales are regularly scheduled and planned, like the annual white sales. A key factor is that the products on sale are not perceived of as lesser value than they were at full retail price.

Many people discount shop, with the goal of paying less for the quality brands and products they want. The percentage discounted for products is widely advertised to bring in traffic. The perceived quality of the discounted products remains unaffected by the sale price. Businesses view this as a way to cash out on merchandise previously purchased. Customers see it as a windfall, a shopping bonanza.

I have several purses I wouldn’t have had they not been on sale. What about you? What’s in your home or office due to a sale? If On Sale affects your product buying decisions, does its equivalent, a discounted fee, motivate you to buy the service - life coaching, interior decorating, and financial consulting - you wanted but couldn’t afford, or couldn’t justify buying at its full price?

When discounting fees for services provided, business owners and customer perceptions appear to be different. As one respondent stated, “discounts feel cheap” sharing why he doesn’t discount.

Should Your Company Have a Discount Policy?

I took an informal survey among my 800+ followers on Twitter. I asked if they discounted their fees. The responses were mixed.

Discounts are private, not widely-publicized. Many solopreneurs and small business managers appear not to feel *good* about discounting fees. Are discounts good business, and good for your business?

Findings

What did I find? The men who participated in the survey indicated they didn’t discount fees. Several women said they sometimes discounted. An attorney indicated that she discounts “for multiple services; discounts for non-profits. She feels it’s “good strategy for building client loyalty.” I thought the differences might come down along gender lines. While it did, my sample size is too small to consider such differences meaningful.

As one Twitter responder said, “discounting is not ideal.” Yep. But what is? He went on to make a great suggestion. He advised, “Adding more value is better, or having a less expensive package with less value.” He’s right. If you discount your fees, decrease the features/benefits you provide for the discounted fee.

Reasons to Discount Your Fees

• To move a price sensitive prospect to say Yes
• To fill the last two seats in a class
• As an offer to new prospects
• To find out how price sensitive your products are
• To close more salesNow

Some Dos. Some Don’ts

There is nothing magical about pricing and prices. It isn’t the scientific formula some would like us to believe. In some instances, prices are largely arbitrary. Like the financial industry CEO and executive bonuses, prices are pretty much set at what the market will bear.

Do not automatically offer a discount. Don’t assume price is a barrier until it presents itself. Listen to the client’s cues that price is a deterrent. Only then think about offering a discount.

What if discounting fees adds more revenue to your bottom line? What if it represents revenue you would not have received without the “sale” price? What if your services add value and position the client to pay your full rate the next time? Are these then wise, or stoopid (uh, not so smart) business moves?

I think wise. Pragmatic. Possibly shrew.

Supply and Demand Revisited

When demand for your services is greater than your ability to supply those services, it’s time to increase your fees. I think the opposite may be equally true. Don’t let excess capacity (when prospects are currently unwilling or unable to buy at your prevailing price) intimidate or frighten you. Offer a discount to seriously interested prospects when you believe your fees are the stumbling block. Make the new offer based upon immediate acceptance of the deal. He says yes now, or the discount is withdrawn.

Money, Money, Money

So what’s this got to do with money? Everything! Most of my clients are small businesses owners. Cash flow (and the lack of it) determines their company’s viability. If periodically discounting your services helps you weather the ebb and flow of business cycles and sell more, I recommend that you discount. And feel good about your decision.

If you’re able to share your expertise with more people because you discounted your fees, you made a good decision. Pat yourself on the back. You cannot pay your mortgage, outsource work, or increase your investments without increasing revenue. Discounting, like selling, is a tactic designed to keep cash flowing and grow your base of satisfied customers. As Martha Stewart says, “it’s a good thing.” Martha knows business.

What do you think? Do you offer discounts? Why? Do you remember to provide fewer results for less fee? Tell me what your experiences have been in this area. I’ll share mine in return. Thank you.

Warmly,
Judith

PS  VOTE today! As a former Chicagoan, I want to say Vote Early and Often. But perhaps not. Vote your best-interests. Thanks.

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Question: “I am constantly helping others and never receiving any payment for it. No one even thinks to ASK if I charge and I’m not sure how to tell them that I do.”

It is not the prospect’s job to ask if you charge. It’s your job to tell prospects and potential prospects about your services, describe the benefits clients receive from using your services, and to state the fees for those services. If you want to be paid, you must ask for the sale.

Sales and Selling

Selling involves a set of skills that can be learned. To the extent that you decide to learn and respect the sales process, you’re more likely to sell. It’s a mindset that is virtually impossible to do successfully until you change the way you think about it. Business owners who want to earn more will learn more about sales and selling.

People who are uncomfortable asking for the sale tend to be uninformed about selling. I know I was. I had no clue. The thought of selling used to scare me big time. I didn’t know how to ask a person to buy from me. And as a business consultant, I found selling my services personal, as if I was selling me and not just my expertise. It was painful. And not selling was expensive. I decided to learn.

Don’t limit your perception of sales to high pressure tactics or unethical manipulation, for that completely misses the point. How you sell is up to you. However, the bottom line is we all have to sell. No sales means no revenue. Your cash flow — the money you have available to spend on and invest in your business — is a function of your willingness to market and sell. The only way for an entrepreneur to sustain her business is by becoming skilled at selling.

Learn to Sell

The more I sell, the better I do, and the easier it becomes. Now I enjoy selling. I like meeting new people, listening to their stories, hearing their wants and needs, asking questions, probing, and discovering how we may be able to help each other. I enjoy assessing if my services will benefit the prospect, thinking of who I can introduce or refer them to, looking for the win-win while appreciating the fact that I’m building relationships that are as important as the sale. And I frequently get both - the sale and the relationship. How cool is that!

Sales is a mindset that once developed will put dollars in your pocket and confidence in your heart. You can network with thousands, but if you’re unable or unwilling to initiate and close the sale, your business will fail.

Read books on selling. Zig Ziglar has several popular titles. Subscribe to newsletters by online sales professionals Tom Hopkins and Jim Meisenheimer. Build your knowledge base. Discover different sales closing techniques. Find a role model or join a mastermind group to learn and be inspired.

Ask for the Sale

Develop a written script if it helps you think through your presentation. Then practice your sales talk or presentation until it’s committed to memory. And commit to continuous improvement.

Some examples: “I would love the opportunity to work with you. One of the services I offer is XXX. Some of the benefits my clients receive as a result of my services are …”

“The fee for what we’ve discussed is $XX per hour, or $XY for Phase 1 of the project. When did you want to start working on this? Shall I email you a project schedule (or whatever)?”

“Did you have a chance to visit my website? Would you like me to send you more information on my services? When would you like me to follow up with you? What’s a good time for you? Great, let’s schedule that time.”

Sales Is A Numbers Game

Some percent of the people exposed to your service will buy from you. Your plan should be to expose more people to your product or service, and close more of those exposed. Then you won’t get bummed when one prospect doesn’t sign on to your services.

Give more people the opportunity to get to know you and what you offer. And, of course, the opportunity to buy it.

Follow Up!

Follow up is crucial. People usually don’t buy the first time they hear about a product or service. We need multiple exposures before we buy. You will want to contact your prospects and express your desire to work with them. Look for opportunities to interact, to keep your brand at the top of the prospect’s awareness.

I loved the comments shared in part one of this series.Tell me what you think. How do you ease into your sales talk? Have you practiced your presentation in front of a mirror? Have you ever used a script to prep for sales phone calls? In what ways are you honing your sales skills?

Warmly,
Judith

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Your questions help me focus and address issues that are relevant to you. Here’s a good one.

Question: I am constantly helping others and never receiving any payment for it. No one even thinks to ASK if I charge and I’m not sure how to tell them that I do.

As business owners, pricing and selling your products and services determine the viability of your business, and the quality of your financial life. Making money starts with your ability to price your services, and ASK for the sale.

Free or For a Fee?

In an attempt to be helpful, do you give potential clients mixed signals about whether your services are free or for a fee? Is it a business or a hobby? Do you want to be paid for the services you provide? These are questions you’ll want to clarify for yourself.

Next consider if it is time to shift from a giving model to one of allowing yourself to receive. Do you often eschew money, downplaying its significance? Do you applaud *service* as more noble than business? What messages about money do you tell yourself and others? Are you ready to accept that you are worthy of earning more? If you want to attract more money in your life, you’ll need to change the ways in which you think and speak about money.

Don’t Prejudge Ability to Pay

A friend mentioned a woman who called about her services. She liked the prospect and felt she would enjoy working with her. Yet she doubted the prospect could afford her services.

I suggest you not prejudge another person’s ability to pay your fees. It’s amazing how people pay for what they want. Let the universe help them. You just state your fee, and then be quiet. No apologies, no equivocations. Hold a positive expectation. It’s absolutely counterproductive to hold a negative one. Expect what YOU want. Expect for others what is in their best interests, and as a service provider, what’s in your best interest too.

Keep in mind … Some will. Some won’t. So what. Next!

No Free Lunches

How many times have you tried to share freely your knowledge or expertise? How often have you been disappointed by how your offer was received? People tend to undervalue free. They also tend to commit less time and effort in implementing free advice. I wonder if they think, “If you know so much why are you working for free?”

It’s difficult to help others for free. Too often it doesn’t work. In order for many people to listen to you, they need to be financially engaged.

Limit the amount of pro bono work you do. Don’t consistently talk yourself into free labor with ego-defeating self-talk like “it’s good exposure,” or “I may meet someone important,” or other fairy tales. The probability is that it won’t be good exposure and you won’t meet anyone important. Smile and state your fee.

Discounting your fees can be a sound business decision. However, there are NO free lunches. A habit of free relationships usually costs you time and frustration, not to mention cash flow. Discount your fees only when necessary, or when you really want to work with a particular individual.

Honor yourself by charging for your services.

Have you had difficulty charging for your work? What did you do to resolve the matter? Do you have suggestions or recommendations for us? Share your thoughts in a comment below.

Warmly,
Judith

See Part 2, Ask For the Sale, on Monday.

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