Just like quilting, motherhood is multi-faceted.  It can be pain-staking at times and requires patience, precision, and a lot of care, but the payoff makes all the work worthwhile!
As a mother of four, I have spent plenty of time worrying and rejoicing about my children.  Quilting has been a constant in my life over the years.  The quilts I’ve made remind me of the good times, and the tough times, our family has shared over the years.

Motherhood, like quilting, has those occasional days when we may not feel super glamorous…but, each time I present a keepsake quilt to one of my kids, I feel like a STAR!  Did you know; there are MANY famous women who find comfort in the art of quilting?

• Marie Osmond – Singer
• Sally Field – Film Star
• Phyllis George – 1971 MissAmericaand TV Personality
• Edith Nesbit – Author
• Vanna White – Wheel of Fortune Co-host
• Reba McEntire – Singer and Actress

All of these working women are quilters AND mothers too!  Aren’t we in good company?  We may not be defined as “celebrities” in the traditional sense of the word, but when we quilt, we are stars in the eyes of our friends and families!

Here’s a little tip:  Each time I give a quilt away, I include a handwritten card that notes the quilt design name, the year and occasion for which it was made along with my favorite little saying…“A blanket may warm the body, but a quilt warms the soul.”

Happy Mother’s Day from one mother to another!

Ellen Greenway

Equipment Leasing Reduces Business Risks

Like most financial consultants, American Financial Partners works hard to keep our finger on the pulse of what is happening in the financial world.  We frequently scour publications for articles that provide new insights and wisdom.  And as every financial consultant MUST, we thrive on the opportunity to impart knowledge and share new ideas with our clients and readers.  

In that spirit, the majority of the content of the following article was found in the May/June 2011 Monitor Daily and authored by Jim Kelly. 

In August 2010, the Financial Accounting Standards Board (FASB) issued a proposal that would require leases for equipment, corporate aircraft and real estate to be recognized on a lessee’s balance sheet.  Although it is expected that the final standard won’t be released until later this year, it’s likely that companies’ financial performance metrics and ratios could be impacted.  Nevertheless, the core benefits of leasing remain intact:  better cash flow management, reduced asset-value and obsolescence risk, reduced utilization and demand risk, and greater financing flexibility.  In fact, many of those benefits apply to small- and mid-sized businesses as well as Fortune 500 companies, regardless of the type of product being considered.  For some products that become obsolete quickly, companies often time their lease to upgrade the equipment on a regular basis.   Although each company’s situation is unique, this article will outline some of the most important reasons for leasing versus buying.

Improve Cash Management and Flexibility

Leasing can help businesses improve their cash management and create flexibility.  Leasing frees up capital that would otherwise be tied up in a purchase while making payments predictable and affordable.  Consider a few examples:

• A golf course that is closed six months of the year uses a seasonal pay plan that defers equipment lease payments during the winter.
• A call center chooses a three-year lease instead of purchasing IT and office equipment.  The time value of money means that, instead of paying $1 million up front, the company will pay $850,000 over three years. 

By working with lenders that are accustomed to dealing with equipment leasing, managers can obtain leases that are structured to maximize cash benefits and create financial flexibility.  Structures to consider are:

• Fair market value leases, which pass on tax benefits while the lessee retains no residual risk.
• TRAC leases, which pass on the tax benefits, may include services to support fleet while the lessee retains some residual risk.

Mitigate Asset-Value Risks

In addition to cash management issues, leasing mitigates many types of asset-value risk. The advantages of leasing 20 out-of-the-box computers or a powerful new document management system are clear. After a three-year lease, the company can simply turn in those machines and upgrade the entire office — often without much change in monthly payments, given the steadily declining costs for these types of machines.

A second asset value risk connected to ownership is the cost of maintenance. Whether it’s a piece of food processing equipment or a plastic injection molding machine, it will be prone to problems as it ages no matter the cost and size. For example, business owners should take into account the time-consuming process of patching old data servers. This can be costly not only in terms of repairs, but also in terms of business interruption. Leasing ensures that your equipment stays new, meaning you can reduce the amount of time and money spent on maintenance.

In addition to properly maintaining equipment, businesses that purchase equipment outright are responsible for ensuring that it complies with appropriate regulations. For example, upgrading to new equipment can alleviate the need to continuously retrofit vehicles to keep pace with evolving regulations. This can be extremely costly in terms of parts and labor, not to mention the threats to a company’s reputation in the event of an accidental breach.

Another responsibility associated with ownership is determining what to do with the used equipment. In most cases, you can’t just put it in the trash and few companies have the resources to accurately price, market and resell it. Electronics, including PCs and office imaging products, should be properly wiped of all proprietary data before a business disposes of them. Leasing the equipment enables business owners to return units at the end of the lease period and walk away hassle-free.

Manage Utilization Risk
Along with asset value risk, companies that own equipment must also consider utilization risk. Businesses often downsize, expand and move offices, so their equipment needs are always changing. One way to manage this is to match the term of the equipment lease to the term of the office lease.

In the construction industry, it’s common for contractors to take on projects requiring expensive and highly specialized equipment, but the cost of a month-to-month rental can be prohibitive. On the other hand, buying a new piece for a project that’s expected to last only two years seems inefficient if it won’t be needed after that initial period. Leasing allows a builder to match the use of specific equipment with a project’s end date — and then bundle that cost into its bid.

Diversify Financial Relationships
Finally, leasing is a way to diversify financial relationships. By expanding from local or regional banks to financing companies, businesses gain more than alternative sources of funding. They gain a trusted financial advisor and valuable ally that understands their business and can suggest additional scenarios that may offer improved capitalization strategies over the long term.

Before committing to any large purchases, executives should carefully consider the consequences of and alternatives to ownership. Many risks of ownership can seem far down the road at purchase. Leasing offers compelling cash management and risk benefits over ownership — advantages that are too often overlooked. However, before committing to a large purchase, executives should carefully consider the consequences, as well as the alternatives.     Jim Kelly ~ Monitor Daily ~ May/June 2011

At American Financial Partners, we are committed to the ongoing pursuit of the American dream.  We are driven by the opportunity to provide endless possibilities for our clients. Whether you are a new client with aspirations for your first business, or one of our many repeat clients who partner with AFP to accomplish your financial goals, we welcome your vision.  Together, we can achieve anything!

Contact us today at  www.financewithafp.com!

Being part of a woman-owned business and having only women on our payroll, we love to share strategies with other business savvy women that share our goals of long-term career success. 

Over the last few decades, there has been a dramatic change in the correlation between working professional women and higher education. According to the U.S. Department of Labor, the number of women earning college degrees has nearly tripled since 1970. However, when examining women’s wages, the strides have not been as significant. According to the National Center for Education Statistics (NCES), women earned about 80% of their male counterparts’ salaries in 2008.

The good news? There are strategies women can employ to ensure they’re not left behind when it comes to career success. Here are some tactics to try that may help you start your career, move up the proverbial career ladder or simply stay employed in the current challenging economic climate. 

#1 – Do You Have the “Right” Credentials?

Having a robust education can pay off when it comes to long-term career success. The “right” credentials will not only help you qualify for more jobs, but can open the door to greater earning potential and an overall higher quality of life.   According to a 2010 U.S. Department of Education report that compared average incomes for high school and college graduates, women with a bachelor’s degree earned 53% more than high school graduates that did not go to college.  It is important to have the “right” education.  If your goal is to break into the finance industry, having a bachelor’s degree in finance or accounting will be much more powerful on your resume than a degree in history or social work.

#2 – Determine the Best Career Path for You

It is imperative to choose a career that is a good fit for you in the long-run. Research what is happening currently in your field(s) of interest as well as future trends for that industry.  Some important points to consider are: job growth, compensation, flexibility and long-term stability. Be certain your chosen career field is something you truly enjoy.  Career burn-out is much more rapid in people who dread going to work every day.  Happy, positive employees have proven to be more productive at work which leads to higher pay and more job advancement opportunities.  

#3 – Be Positive and Proactive

“Choose your attitude.” This is one of the most powerful points found in the “Fish Philosophy”. (www.charthouse.com)  The Fish Program’s goal is to fulfill the most basic needs of human beings who, in turn, fulfill the needs of the organization which results in more connected teams, better communication, extraordinary service and higher retention. Be positive and be proactive. It is easy to get overwhelmed with everything on our plates in today’s world. Focus on one task at a time and devote your whole attention to it. When you are at work, focus on work. When you are at home, out with family or friends, or taking part in any activity that is important to you, focus on that alone.  If you do everything well, you will see a higher level of quality and greater accomplishment.  Surround yourself with good people.  Put an end to the negativity in your life.  Engage in more proactive, positive behaviors. 

#4 – Go the Extra Mile

To stand out at work, bring more to the table than performing the basic tasks you are assigned to do.  Think about your customers, co-workers, managers. Strategize about how you can make them look better in their positions. Find a way to improve something within your workplace. Take the initiative to find solutions for problems that are beyond your job description.  Demonstrate to others your determination to improve the company as a whole and not just your department or position. Initiative and drive will get you noticed and help you standout.

#5 – Get Noticed for the Right Reasons

What are the top priorities of your organization? When you are considering opportunities to do something extraordinary, focus on what is most important to your company.  For example, if customer satisfaction is a top priority, consider new ways in which you could go the extra mile to satisfy a customer.  Discover strengths that make you stand out.  Make sure your supervisors are aware of your accomplishments.  If you don’t tell anyone, they will never know!  Toot your own horn to the right people and you will end up in the front of the line for the next promotion.

Visit us on Linkedin:  http://www.linkedin.com/financewithafp

Good question, isn’t it?  What do you bring to the table?  Well, of course, we all know the proper answer isn’t “the silverware” or “cherries jubilee,” right?     

This is one of those philosophical questions that could be applied to many areas of our lives. What do I bring to my professional table?  How about my relationship table?  My child’s table?  Friendships? And on, and on, and on…

An easy answer may not be instantly available to many of us. It may require deep thought and introspection, especially for sensitive areas like relationships and children. 

For the sake of this blog, let’s focus on the professional area. There is an interesting website resource called “Rich Dad” (www.richdad.com).  The founder tells the story of how he grew up with two dads – a rich dad and a poor dad.  He learned valuable lessons from both. But ultimately, he chose to follow the advice of his rich dad who only had an 8^th grade education. His website is focused on financial education and enlightenment for those of us having the “poor dad” mentality. 

At a recent event, “Rich Dad” and one of his partners discussed four key elements of a successful financial transaction. The attendees were asked to decide which of the following items was most important to the success of the transaction:

• The project itself
• The financing for the transaction
• The partners you work with
• The management team

Surely the answer should be “all four elements” right?  Well, “Rich Dad” agreed, but, he felt the partners and management team outweighed the other elements. That led to the question “What do you bring to the table”?

Think about your current job or your business.  There are likely thousands of great people out there that have proven themselves in the same position as you have or a similar business to yours.  Today, the people you service truly have unlimited options. They can go to another shop or choose another service provider. Ask yourself:

What skills and experience do I have that will
make someone want to work with me?

What makes your business stand out above all the others?  Do you and your staff have the education required to be a good partner?  Are you a dynamic manager with the tools to grow your talent and your business?  Why should patrons choose you?  What do you bring to the table?

Visit us on Facebook at:  http://www.facebook.com/financewithafp

Times are tough, no doubt about it. The following article gives some practical advice on how to keep your credit healthy.   Enjoy!

How to Make or Break Your Credit Score

by Zack O’Malley Greenburg

A few simple steps can put you on the path to creditworthiness — or prevent you from falling off.

Five years ago Mikaal Bates was about to pool his money with some friends and make his first real estate investment. He didn’t expect any trouble on the credit score front, as he’d always paid all his bills in full and on time. But when Bates received the credit report he needed to get the loan and seal the deal, he found a nasty surprise: Thousands of dollars in unpaid phone bills racked up by someone who’d stolen his identity.

“I had bartended at a few less-than-reputable establishments, and someone had gotten hold of my social security number,” says Bates, an actor, now 31. “I ended up with an unpaid $2,000 bill for calls from the U.S. to the Dominican Republic. Took me close to a year before I got everything straightened out and had everything expunged.”

Bates’ situation is the product of illegal acts committed by malicious strangers, but plenty of people unwittingly do comparable damage to their own credit scores. Careless acts can eat into your credit score — and you may only discover the damage when there’s a car loan, mortgage or business loan on the line.

Fortunately there are a number of steps you can take to preserve and improve your credit score. The most important ones are matters of common sense, yet they’re too often ignored. First and foremost: timeliness, both with credit cards and other bills.

“With any kind of credit obligation it’s really critical to always pay on time,” says Ben Woolsey, director of marketing and consumer research for CreditCards. “Don’t ignore any obligations like student loans or utility bills or cellphone bills. Lenders are starting to scrutinize those sorts of things.”

Paying bills on time is just one of many steps savvy consumers should take. Another is to carefully manage your debt levels and the percentage of your credit lines you use. It’s never a good idea to carry a balance on your credit card; though the balance itself doesn’t directly affect your score, interest can cause the total to pile up quickly. And raising your debt-to-credit ratio (also known as utilization rate) does affect your score, says Jake Gibson of credit card research site Nerd Wallet.

Say you’re carrying a $4,000 balance on a credit card that allows you to charge up to $5,000. That high 80% utilization rate will damage your credit score more than a $4,000 balance on a card with, say, a $12,000 limit.

Paying off debt can help get your creditworthiness back on track. But think carefully about where to start.

“Get any revolving credit paid off,” recommends Steve Juetten, a financial planner in Bellevue, Wash. “Start with the card with the lowest balance and strive to have that one paid off first. Once it’s done, move to the one with the lowest balance and so on.”

Other rules of thumb include requesting an increase to your credit limits and using different forms of credit. But don’t overdo it — holding more than four credit cards can start to damage your score. It can also hurt if the total of your available credit lines begins to exceed your household income. Even if you have always paid your bills on time, having $80,000 of available credit when you make $60,000 per year means you have the potential to spend yourself into debt, and that might make the next lender wary.

Above all, remember that building a good credit score isn’t something that can be done overnight.

“The biggest misconception about improving credit scores is that it’s something that can be done quickly,” says Juetten. “It’s not. It takes time.”

How to Make or Break Your Credit Score

Keep your credit cards paid off. Though simply carrying a balance won’t damage your score, it will if your debt utilization rate (the ratio of debt level to credit available) starts to climb above 50%. Pay your balance in full every cycle if possible.

Pay your bills on time.  With any kind of credit obligation it’s really critical to always pay on time, even if you can’t pay in full. Late payments will hurt your credit score.

Use different forms of credit. Holding a variety of lines — car loan, installment loan, mortgage, store card, credit card — can improve your credit score, as long as you’re mindful of the first two steps.

Develop a history of credit. Maintaining responsible payment habits over time will increase your score.

For more information on credit scores, visit some of our previous blogs:

What’s In A Number?

What Is Your Credit Score?

Answers to Your Credit Bureau Questions

Showcasing your equipment or the projects over which you have labored for hours to create at a tradeshow venue can be stressful and exciting at the same time.  Tradeshows can attract business people and craftspeople with similar talents from across the country and around the world. 

Presentation is everything, right?  We adapted a nifty article to help you put your best foot forward at the next tradeshow event.  Enjoy!

11 Ways To Stand Out At A Trade Show by Heather Allard

Attending trade shows is an incredible way to gain exposure, get publicity and even find sales reps for your company and products. But let’s face it—hundreds or thousands of companies attend the same trade shows, so you’ll need a way to stand out. Here’s how.

1.  Present a pristine product. Shiny and new. Don’t forget to bring more than one. Not only do you need enough to make a presentation in your booth, but also replacement product in the event you sell one of your creations. While customers may be sympathetic, you only have one shot to make an impression. 

2.  Pick a card, any card.  You’d be surprised how many trade show attendees forget to bring their business cards. Your business card should include all the ways people can contact you: phone, fax, e-mail, website, Twitter, Facebook and LinkedIn. Most importantly, include your name.

3.  Have a mobile office. Your trade show space will be your office away from home. Be sure to bring all the office supplies you need to conduct business. Some suggestions:

• Sales brochures.
• 2-part order forms (a copy for the customer and a copy for you).
• Credit card forms
• Stapler, calculator, pens, paper clips, push pins, straight pins.
• Masking tape, gorilla tape, packing tape (seal boxes at show’s end)
• Tide-To-Go pen.
• A pressed table cloth in case the table is not draped…this finishes your booth and provides storage space underneath.
• Extra light bulbs, extension cords, and a power strip.
• A sign with your company’s name.
• Plenty of business cards.

4. Make follow-up easy. Bring an expandable file for orders and business cards. You will have all of your post-show work in one neat handy place. Be sure to write details on the back of the customer’s business card. Things like, “took catalog,” “ordered,” “call in two weeks”—any information to prompt follow-up after the show.

5. Wear comfortable shoes.  You can’t stand out if you can’t stand up. Get shoes that are comfy and stylish. Sneakers are a no-no unless you have a medical condition that requires them.

6. Be prepared with an elevator pitch: (an insightful story you can tell a complete stranger within a brief elevator ride to give them an understanding of who you are and what your business does.)  Have a story about your product, what inspired it and what it does. Talk about features and benefits.  Is a similar product on the market? Be able to articulate the difference between yours and the competition’s without “negative selling.” Point out the positive differences about your product without mentioning the negatives of your competitor’s. For instance, if you’ve heard that your competitor has back-order issues, let buyers know that your product is in stock and ready to ship.

7. Create foreshadowing.  Do an e-mail blast and postcard mailing a few weeks before the show. Always include “Come see us at XYZ show” with the dates and booth number.

8. Show proof of promotion.  Buyers love to see you support your product with strong advertising. Be sure to feature any editorial placements and upcoming advertisements prominently on your trade show display.

9. Lure them in with a sweet treat. Place wrapped candy in a dish.  Chocolate will slow them down every time. They may not buy, but they stopped and looked.

10. Mind your manners. Etiquette goes a long way, even at trade show.

• Show up on time. Don’t leave your booth early.
• Keep your booth neat and clean.
• Have plenty of brochures and catalogs on the table so a buyer may just take the literature if they choose not to stop for the sales pitch.
• Keep banners and display materials within the booth limits.
• Greet buyers when they stop at your booth.
• Always thank buyers for stopping in.
• Work on your hand shake. A firm handshake exudes confidence.
• Get a manicure.  Your personality, enthusiasm, and hands are sales tools.
• Be friendly and have fun!

11. Most importantly, be open and inviting. Say “hi” to everyone that comes your way. If you look like you’re enjoying yourself, you are more approachable and interesting.

Follow us on Twitter:  http://twitter.com/financewithafp

Do the words “tax season” make you break out in a cold sweat?  When you glance at the calendar and see that red circle around April 15, does your heart palpitate? 

Fear not, fellow taxpayers!  To ease seasonal pain caused by flurries of tax forms and the occasional eraser fatigue, we offer a few basic tax strategies for small business owners.  Some are new credit deductions and others that have been around for a long time. 

Keep a tally of paid health care costs.

Last year, the Obama administration rolled out several policies as part of the new health care reform.  The Small Employers Health Care Tax Credit is a tax relief opportunity applicable for tax years 2010 through 2013.  The credit targets businesses with fewer than 25 employees and equals 35% of health care premiums paid by the company.   Annually, the small business owner can expect to bear the burden of health care premiums equaling of $5,000 – $6,000 per employee. Consider being able to credit 35% of that $5,000.  That’s a credit of $1,750 per employee which will reduce your taxes dollar for dollar. 

Who did you hire last year?

In March of 2010, the Hiring Incentives to Restore Employment (HIRE) Act was passed. Employers hiring previously unemployed workers became eligible for the HIRE retention credit.  To qualify, the new-hire must stay on the payroll for a year after which the company can apply for a credit of 6.2% of the wages up to $1,000. 

Document recently acquired assets.

Did you purchase a work related asset between September 8, 2010 and January 1, 2011? If so, you are in luck! The Small Business Job Act provides the opportunity to write off 100% of the investment as a bonus depreciation.  Depreciation laws will differ from state to state, so do some research. Another option is the Section 179 deduction for 2011 which allows business owners to deduct up to $500,000 on new or used equipment. For information on the Section 179 deduction, contact AFP at 877-237-7287 or visit our website at www.financewithafp.com.  Go to “Resources” to review the Section 179 flier.

Don’t forget the simple deductions.

Don’t wait until April 14^th to begin sifting through the mountain of receipts for last year’s day-to-day business purchases.  Organize the information and it will be easy to itemize these expenses when tax time rolls around. Remember to retain receipts for every business purchases, including supplies and grocery store items. Other oft-forgotten deductions include: insurance, rent, utilities, travel and payroll costs.

So, there you have it.  Tuck away the hankies, put the child-proof cap back on the nitroglycerine pills, sharpen your #2 pencil and dive confidently into your tax forms!   You can do it!!

Visit our website at www.financewithafp.com to access the Section 179 flier.

Email is the primary communication tool used in business today. For business owners, it may not be uncommon to receive and send hundreds of emails in a day.  With all of those emails coming in and going out, everyone has the potential to screw one up at some point.  Simple email mistakes can be disastrous and could cost a customer, a sale, a promotion or even a job.  Here are some of the most serious mistakes and some tips on how to avoid finding yourself in an uncomfortable email situation.

1. Sending prematurely:  Wait to enter the recipient’s email address until the communication is complete and ready to send. This should help reduce the risk of an embarrassing misfire, such as sending an important email to the wrong person or emailing a half-written note.

2. Attachment amnesia: Upload the email attachment BEFORE composing your message. This will eliminate the embarrassing mistake of realizing you hit SEND and then sending another email saying you forgot to attach the document on the first one you sent. 

3. Did you get my email?? Never send an email and, 30 seconds later, show up at the recipient’s desk later asking, “Did you get my email?” They did. They will answer at their convenience. That’s the point of email.

4. Forwarding for fun:  Major faux pas. Have you received even ONE non-business related, forwarded email at work that was beneficial? Whether it’s a silly joke or a heartwarming charity, sending during work time through the work email is never acceptable.

5. Out of Office:  When you return to the office after a few days away, review all new emails before firing off responses. It might be hard to fathom, but odds are, things did march on without you. Replying on a topic that has already been handled by a co-worker only creates extra communication. That leads to confusion, errors, and wasted time for everyone involved.

6. Replying to all: Unless there’s an important reason to omit an individual from a communication, avoid arbitrarily leaving someone off of a response if they were included on the original message.

7. Don’t include your email signature again and again and again:  Scrolling past the clutter of automatic signatures to find a previous message gets annoying, don’t you agree?   If your email program is set to automatically generate a signature with each new message or reply, take a second to delete it when communicating with someone who knows you.  However, it is always wise to include your phone number. 

8. Composing too quickly:  Don’t be careless. Write each email as if it will be read on national television by the President of the United States. Be respectful with your words and take pride in your communication.

9. Violating company email policies:  Today, most companies have aggressive spam filters that scan for key words and phrases like choice “four-letter words” and terms such as “job search.”  Avoid an embarrassing meeting with Human Resources. Use restraint in your communications and save personal searches for your home computer.

10. Failing to include greetings:  Say “Hello” at the start of your message and “Thank you” at the end. Always use the recipient’s name and keep your message succinct.

11. Emailing in anger:  Never, ever, send angry communications. Sending a business email tainted by emotion can be a catastrophic mistake. The “tone of voice” is very difficult to interpret in an email and what you write may be interpreted differently than you intended.  Recall buttons are far from perfect. It sounds cliche, but sleep on it. Save a draft of your message and revisit it the next morning. You may be glad you did.

12. Underestimating the importance of the subject line: The subject line is your headline and should indicate the topic of your email.  Having a meaningful subject increases the odds of getting the recipient’s attention. Email inboxes are cluttered. You must be direct to help your recipient cut through the noise of other less important communications.

13. Incorrect subject lines: Change the subject line if you change the topic of conversation. Better yet, start a new email thread.

14. Sending the wrong attachment: Always double-check an attachment before sending. Are you sending the correct, most recently updated version?  Check to be sure.  Then check again. 

15. Correct context: Even if you were talking to someone an hour ago, remind them why you are writing within the subject line and within the email. Even the sharpest minds have trouble remembering from time to time, especially when we are all multi-tasking.

16. Over-using BCC: Use BCC (blind carbon copy) sparingly. Even though BCC indicates confidentiality, rarely is that a reality. Forwarding email is also an easy way to damage credibility. When people send something confidentially, they don’t expect you will pass it on to other co-workers. The email might make its way back to the sender, who will see that their original message was shared. They might not call you out on it, but they’ll make a mental note that you can’t be trusted.

17. Relying on email: News flash! No one is sitting around staring at their inbox waiting for your email. If something is urgent, use another means of communication. A red “rush” exclamation point doesn’t compare to hearing your voice over the phone or getting up from your desk and conducting business in person.

18. Hitting “reply all” unintentionally: This is a biggie. It’s not just embarrassing; depending on what you wrote in that email, it can ruin your relationship with a co-worker or boss. Take extra care whenever you respond so you don’t hit this fatal button.

It’s time to fess up…Are you guilty of any of these common work email mistakes?   Let this serve as a gentle reminder to everyone in this age of technology!

 Visit us on Linkedin:  http://www.linkedin.com/financewithafp

Your credit scores is a statistical calculation used to determine personal credit-worthiness. Many of us wonder…how do they determine this number?  Who does it? And what does it REALLY mean in the larger spectrum?   Here you go!!

The most common credit score is the FICO score. This acronym was generated from software developer Fair Isaac and Corporation.  Three major credit reporting agencies, Experian, Trans Union and Equifax, provide FICO scores to lenders to help them assess “risk” when a potential customer applies for financing.

While many people strive to achieve the highest credit score possible, few will earn a perfect score of 850. A person’s credit score affects their ability to qualify for various types of credit and also determines the interest rates tied to those types of credit. For example, based on national averages in December 2010, a homeowner applying for a $200,000, 30-year fixed mortgage with a credit score between 760 and 850, may receive a 4.353% Annual Percentage Rate (APR), resulting in monthly payments of $996. However, the same loan for a person with a lower credit score, say between 620 and 639, would result in a 5.942% APR, or $1,192 per month. Over the life of the loan, the person with the higher credit score would save approximately $70,000 in interest.

Credit Score Calculations
Credit scores range from 300 to 850. According to MyFICO.com, approximately 13% of FICO credit scores exceed 800. Only 1% of consumers achieve a perfect score of 850. In general, the higher the score, the lower the risk to a potential lender.  Five factors are included and weighted in calculating a person’s credit score:

* 35% is based on your Payment History.
* 30% is based on Credit Utilization.
* 15% is based on the Length of Credit History.
* 10% is based on New Credit.
* 10% is based on Types of Credit Used.

The One Percent
Many people have excellent credit scores, but a perfect score of 850 is difficult to earn. So, what are 1% of Americans doing differently than the other 99%? Those individuals who achieve the 850 score are often actively and consciously trying to do so. Here are some tips to help you improve your credit rating FICO score:

• Pay bills on time.  Paying every bill on time is important to maintaining a high credit score. From credit cards to mortgages to medical bills, even one late payment can impact your credit score dramatically.
  Typically, a perfect credit score will reflect zero late payments in the last seven years.
• Use only a fraction of your available credit.  In general, the less credit you are using, the better. Ideally, aim to use only 10-20% or less of your available credit each month. Thirty percent of your credit score is based on credit use, the ratio of your debt to your credit limit. The higher the number, the lower the credit score. People with perfect scores usually have a low utilization rate of less than 10%. To help maintain a higher available balance, do not close credit cards you don’t use. Keep them open so that balance shows as available.
• Review your own credit report.  Looking at your personal credit report will not negatively impact your credit score. Consumers are entitled to at least one free credit report each year from one of the three major credit bureaus. It is wise to review the report for any errors. Look for incorrect credit limits and delinquencies which could be reconciled.
• Manage your credit card “quiver”.  Having a large number of credit cards makes you appear desperate for credit. You can be penalized for having multiple large balances. It is much better to have only a few credit cards
  with the bulk of spending placed on one card. Many credit issuers will automatically close inactive credit cards. It is a good idea to make small charges every few months on the lesser-used card(s) to keep the account open.
• Diversify your credit.  Having multiple types of credit is a plus when it comes to your credit score. A consumer having a variety of debt types may be considered financially responsible, assuming the payments are being made on time. Credit cards, mortgages, automobile loans and retail accounts in good standing can increase your credit score. But, having too many credit accounts can also detract from your score. How many accounts
  does the perfect credit holder possess? Typically, SIX accounts.
• Wait for it.  It takes time to build credit and even more time to get a perfect credit score. Ten years of positive account history is generally needed to score above 800. Generally, people achieving perfect scores opened their first accounts 20 years earlier.

Is Being Perfect Worth The Effort?
So, is striving to achieve a perfect credit score of 850 really worth it? In general, no. Consumers with perfect scores will not have access to better loan rates than those with scores in the upper 700s to low 800s. In fact, when it comes to mortgage rates, the best APRs are awarded to those in the 760 to 850 range. So, in reality, there may be little financial reward for reaching 850.

The Bottom Line
You may be wondering if a perfect score of 850 is even possible to achieve. For most people, the answer is probably not. Those who do earn an 850 are committed to the cause. They actively evaluate and control all aspects of their finances. A more realistic credit score in the high 700s will likely land consumers the same advantages as the perfect score of 850. What a relief since making reaching that 1% is a pretty daunting task!

 Visit us on Facebook at:  http://www.facebook.com/financewithafp

Your friends at American Financial Partners wish for you a year filled with good health and prosperity!  We hope you might take a moment from your busy day to consider a few inspirational thoughts and “life guides” for 2011.   Enjoy!

Health:

• Drink plenty of water.
• Eat breakfast like a king, lunch like a prince, and dinner like a pauper.
• Eat more foods grown on trees and plants and less that is manufactured IN plants.
• Live with the 3 E’s – Energy, Enthusiasm, & Empathy
• Make time for spiritual introspect.
• Play more games. Feed the Birds. Plant flowers and vegetables.
• Read more books than you did last year.
• Enjoy silence for a few minutes each day.
• Sleep for 7 hours each night.
• Walk for 10-30 minutes daily. While you walk, smile and notice your surroundings. Listen to the birds and bask in the glory of nature!

Personality:

• Don’t compare your life to others…you have no idea what their journey is all about.  Each person has their place in the scheme of life.
• Avoid negative thoughts about things you can’t control.  Invest your energy in the positive, present moments and do what you can to improve the world around you.
• Don’t “over do” – stay within your limits physically, spiritually, financially, and emotionally.  Be humble.
• Don’t take yourself too seriously…no one else does.
• Don’t waste precious energy on gossip.
• Dream more while you are awake.
• Envy is a waste of time.  You already have all you need.
• Make a choice to be happy.

Happiness:

• Life is too short to be critical of others. Instead, search for the “positives” in every person you meet.
• Make peace with your past so it won’t spoil the present. 
• No one is in charge of your happiness except YOU! Only you can decide if you will be happy or miserable, angry or joyful, frustrated or accepting.
• Realize that life is a school and  you are here to learn. Problems are part of the curriculum that appear and fade like an algebra class. But, the lessons you learn will last a lifetime.
• Smile and laugh more.

Society:

• Call your family often.
• Each day, give something good to others.
• Forgive everyone for everything.
• Spend more time with people over the age of 70 and under the age of 6.
• Try to make at least 3 people smile each day.
• What other people think of you is none of your business.
• Your job won’t take care of you when you are sick. Your friends will. Stay in touch.

Life:

• Do the right thing!
• Get rid of anything that isn’t useful, beautiful, or joyful.
• However good or bad a situation is, it will change.
• No matter how you feel, get up, dress up and show up.
• The best is yet to come.

Last but not least:

• Consider each day to be an opportunity that should be celebrated. 
• Live your life to the fullest. 
• Decide to be joyful and thoughtful to those around you. 
• Find grace and forgiveness within yourself.    
• Uplift others every chance you get! 
• Yesterday is gone and you only have a limited number of tomorrows.

Follow us on Twitter:  http://twitter.com/financewithafp