Archive for Just For Fun
What Does Illinois Governor Rod Blagojevich Have To Teach Us About Ethics?
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By now, we’ve all heard about the governor of Illinois, Rod Blagojevich, trying to auction of President-elect Obama’s vacated senate seat. This type of unethical behavior in pursuit of profits is particularly abominable when we see it practiced in politics and by people in a fiduciary position of trust and power. What’s happened to our country that we have elected officials who think this is OK, and a number of people in the media willing to just say "Oh, that’s Illinois politics for you," and kind of laugh it off?
It’s troubling to see this type of corruption in our politics. But I don’t believe Blagojevich’s case is isolated, or that this is just a problem in politics. I am afraid unethical behavior in pursuit of personal gain is more common than I previously realized.
Other Investors and Business People Have Noticed The Sliding Ethical Scales…
I went for a walk yesterday with a former student, now a friend, who is a fellow entrepreneur and stay-at-home Dad here in Seattle. Michael told me about some of his recent investments and some private lending he’s been doing. Passive investments like these are a great way to generate income once you have built your wealth to a level of "critical mass" where you can live off the INCOME from your savings, and not have to eat into the principle.
He’s having some trouble with one of his partners though, so we eventually ended up talking a bit about business ethics and the prevalent lack thereof in many cases. Sometimes we stay awake at night wondering if what people are telling us is real or whether it’s just what they feel needs to be said to "get the deal done."
We’ve seen examples of this type of honesty in sales, in brokerage, in investment opportunities, and it’s frustrating at upsetting. My inner-Pollyanna tends to be very trusting, and I’m coming to realize that I need to be a little more cynical and self-protective when it comes to working with people I don’t know well.
How Far Over The Line Will People Go In Search Of Profits?
I got upset on Tuesday night when I was reading a marketing course that taught out-and-out deceptive practices in the name of sales. The author promoted a tactic of "fabricating" first-hand-accounts and personal testimonials on a sales page in order to sell a product he or his students had little-to-no experience with. The author justified this approach saying he was using a pen name and he had a disclaimer page which mentioned that the story might not be 100% accurate.
In my book, there’s a difference between a dramatization and an outright lie, and this approach crosses the line.
When queried about the approach on his discussion board, the author replied by saying that the people who write TV commercials are just writing a script, they’re not actually sharing their first-hand knowledge with the product. Then actors, who have also not used the product, also deliver the lines. Are they lying? His case was that he was just "doing marketing" and that’s the way it’s done.
I can see the parallel, but ethically, I have some major concerns with following that approach. Does anyone else think it’s weird that a 40-something guy is writing sales pages on the Internet using the voice of a teenage girl? Something about that just seems a little creepy to me.
At The End of The Day, You Have To Be Able to Look Yourself In The Mirror
I think the lesson Governor Blagojevich teaches us is that it’s not wise to do or say things that you wouldn’t want made public. If your actions are not in line with your core beliefs, you have to re-evaluate what you’re doing. Some people are willing to do *almost anything* for the money. I’ve certainly felt that pressure before, myself, and it’s 
a lot easier to take the high moral ground when you have the financial resources to meet your daily needs.
To avoid getting caught up in the moment, I often think of folks who have been a moral compass to me – my parents, my grandparents, business partners and ask, "If so-and-so found out about this, would I be embarrassed? What would he/she think of me or say to me about this?"
Now that I’m a parent, I can also use the example of my son, Blake – "Would I want Blake doing this behavior?" "How would I justify this to my child if he caught me at it?"
Let’s Each Commit to High Ethical Standards and Change The Country One Person At A Time
There’s a lot of shady stuff on there, especially on the Internet, I think, where it’s so easy to be anonymous, it seems like we can re-invent ourselves time and time again.
Plus, the habit of dishonesty is catching. It’s a slippery slope to go from embellishing a story to make a point, to starting to make up parts of stories, and then just completely lying. If we see others engaging in this type of behavior, we can start to justify to ourselves that "that’s how things get done" and it makes it a little easier the next time we want to bend the rules ourselves.
I would like to put a notice out to marketers and business people everywhere, that this type of behavior is no longer acceptable. Lead the field in your circle of influence by maintaining the high moral ground and privately discussing your concerns with others if you see them stretching their ethical boundaries.
This type of accountability is the only way to uphold the American values that have made our country strong, our businesses prosper and our society thrive. I hope to see business ethics become stronger than ever in the face of the public scandal surrounding Governor Blagojevich.
Popularity: 7% [?]
The Recession’s Here, Let’s Cheer Up and Look at the Bright Side
Posted by: | CommentsEven though they changed the definition of "recession" – the word is out – it’s official – we are in a recession and have been since December 2007.
Understandably, this can be depressing news – especially around the holidays.
Lighten the economic mood in your house with these sunny ideas:
- It’s time to start saving money, again! After years of living beyond their means, many Americans are looking at this recession as an opportunity to tighten their belts and start living within their means! This takes frugality and self-discipline, but it’s a doctrine I’ve been preaching for years. Wouldn’t it be funny if the national savings rate went up during this period when everyone feels they have less?
- We can focus more on people and experiences, and less on things! This is especially true during the holidays. This Christmas, I’m putting a real focus on looking for fun EXPERIENCES, rather than pricey presents. Instead of spending my weekends stuffed into the shopping mall, battling crowds and circling in search of parking, I’m heading out to festive holiday activities.
Here are some ways to enjoy Christmas without spending a lot of money
- Christmas caroling in friendly neighborhoods or at other events that draw people – this is a great one to do with friends.
- Hand-making gifts or baking to share warm feelings with friends and family
- Going out to see the "Christmas Ships" – sailboats that put lights on their masts and sail around Lake Union and Lake Washington, here in Seattle
- Attending or hosting an Advent Dinner, like my Grandmother’s traditional "Second Sunday in Advent" candle-light dinner. She makes a great "candle" salad for dessert… a piece of lettuce on the plate, with a ring of pineapple on it, then a half banana sitting vertically on the pineapple, like a candle. She tops it with a dollop of whipped cream and half a cherry – for the flame.
- Having my son participate (for the first time!) in the church’s Christmas Pageant. If you don’t have kids, go watch someone else’s perform!
- Driving around to see the Christmas lights at night – our newspaper publishes a list of well-decorated neighborhoods to visit.
- Writing people meaningful cards/letters rather than sending gifts
- Remembering our abundance and donating time or money to help those less fortunate – giving gifts to a family in need, helping out at a soup kitchen, etc.
- Giving the gift of time with a gift certificate under the tree from us. We like to give "play dates" in my family – we’ll take you out hiking, invite you over for dinner, rent a kayak and spend a day paddling, or other fun activities, rather than giving a lot of "stuff." We also enjoy getting "coupons" for things like free babysitting, a car wash, pressure washing the driveway, weeding the garden, or other things we don’t enjoy doing ourselves.
- Getting together for movie night! Cider and popcorn are great companions for some classic holiday films!
- Spend time with someone who is alone for the holidays – enjoy A Cup of Christmas Tea!
- Go see the a display of gingerbread houses or make some yourself!
- Listen to some holiday music albums while you decorate your Christmas tree. I like the old-fashioned religious music, not the pop Christmas tunes on the radio.
- I just heard about The Cinnamon Bear – a great old Christmas radio show you can listen to with your kids.
- Nail down great investment opportunities. When everyone is looking the other way (watching out for chunks of sky falling, probably!) you can scoop up great bargains – the stock market and real estate market are where I’m focusing, but there are lots of great deals on cars and computers right now, too.
- Go Green! Even though I’m kind of against the whole environmental movement (I’ll save that for another post… but I’m not convinced a) that there is global climate change, b) if there is change that human’s caused it and c) that we can do anything about it to make it better if we are the culprits, and d) that we can avoid spending WAY too much money on TRYING to fix it…), I am an environmentalist to the extent that I am a frugal waste-not kind of lady. Whether your motives are "Green" for the environment, or for the color of money, tighter budgets are a good reminder to turn down the thermostat when you’re away from home and drive less.
- Some businesses are up — Find Them. There are plenty of people that do well in recessions. Charles Atlas built his fitness empire during the recession. My uncle who is an attorney who works in collections and bankruptcy is doing well. Folks who clean up REO houses before the banks sell them probably have more business. My dad knows a guy who sells an information-product on Bankruptcy… he’s making a killing. (I’m trying to set up an interview with him, so stay tuned for more information…) If you’re concerned about money or your job security, consider what industries may be doing well right now, and decide how you can become a part of them.
Popularity: 8% [?]
Working at Home as a New Mom!
Posted by: | CommentsHi there,
I apologize for being out of touch for a few weeks – you’ll have to forgive me, I just had a baby! 
Baby Blake is very healthy and happy… he hardly cries and all and really makes things easy on his parents – we are very grateful!
Never the less, working from home with a new baby is not as easy as I first thought it would be. There are feedings, fussy periods (that always surprise me when I’m trying to talk business on the phone), sleep deprivation, diaper changes and more! Lots of little interruptions throughout the day, not to mention the times when he is awake, smiling and wants to be interactive! (I try to squeeze in the work without being distracted by gazing at the little faces he makes while he’s asleep!)
I was lucky that my husband was able to take 3 weeks off work to help take care of me and the baby right after he was born. Now he’s back at work, and my biggest complaint is that it’s hard to get out for networking meetings with a baby in tow – I still haven’t figured out a good daycare/babysitter solution, yet.
Anyway, that’s the update, I hope to be back posting regularly now that Blake is 6 weeks old and I’m falling into a routine a little more. Here are a few pictures of Blake, and for real fans, you can tune in to his blog: Blake.Cressey.org for more pictures, videos and updates!
Popularity: 15% [?]
Am I Too Soft On Collections?
Posted by: | CommentsIf you have had tenants or worked with people who are in perilous financial straights, you might have heard some real fish stories in your day about why people can’t pay their bills.
Recently, I have been working with a family who bought a home from me (exercising their lease option) and I had the pleasure of financing their closing costs for them – about $6,000 owed to me.
This was an unsecured note (as required by the lender) based on the sellers’ good name and intentions. Although I knew it was risky, I needed to front the cash to get the closing to go through. I thought I had a decent chance of repayment due to their excellent on-time rental payment history.
To buckle them in a little tighter on the note, though, I also secured the note against their two vehicles. These cars were junkers to be sure and already had notes on them (probably for more than they were worth) but I wanted these buyers to FEEL like I had a little more leverage on them.
After about a year of paying their $100/month obligation, payments started to get spotty. I kept in touch with the debtors over time trying to work out payment plans (going down to $25/month instead of $100), but they plead off citing medical bills, the teenage pregnancy of one of their children, the retirement of their two oldest family members (it’s a multi-generational family living in the house) and a number of other financial woes.
I left them alone for a while and recently got in touch again because I thought it might be tax refund time and they would probably be getting some money back from the government which they could send on to me.
Here are some of their replies…. Now as you read ask yourself, "What are the attitudes these people are displaying?" "What would you estimate their level of wealth to be currently and in the future?"
EMILY’S ORIGINAL COLLECTION LETTER:
Hi Carol and Karen,
Happy Spring! We haven’t talked in a while, but I wanted to see where you were with your financials right now. I don’t think I’ve gotten a payment from you for over a year. You last asked for a little extra time to get back on your feet. I thought with the tax return season upon us, I should check to see if we can get back on track with payments on your $6,000 note.
Obviously, the longer it goes, the more interest accrues. If you could give me an update, that would be great!
Emily
DEBTOR REPLY #1:
(Note – This is not edited/truncated in anyway)
the amount owed is $3400 not $6000, you cannot accrue interest on this contract the solution was
that you hold the title on the chevy venture. The total amount to be paid back to you is $3400 which will be paid in increments of $25.00 a month beginning on the 16th of the month. This is within keeping the original agreement which is null & void with the submission of the title.
OK – I don’t understand a few things in this letter…
- How she got the balance down to $3400
- Why she thinks that the $25/month payment was in keeping with the original agreement.
- Why I can’t accrue interest, etc.
Clearly there is confusion, so I tried to clear it up, and still be nice. I’m not coming down too hard on these people because I don’t want to file a judgement against them because I don’t think they have any assets. I think the only way they will pay is if they WANT to pay me, which is why I’m trying to be nice.
Emily’s Reply #1:
Hi guys,
Sounds like there was some confusion on both ends here.
I have attached a copy of the note so we can both refer to the terms we agreed on 3 years ago… I know it was a long time ago.
You’re right, the principal at that time was not $6,000 it was $5233 and you have made $1330 in payments toward the principal. The monthly payments are supposed to be $99.29.
However, you have not made a payment since August of 2007 and late fees and interest continue to accrue even though your vehicles as well as your personal promise are operating as security for the note.
I am willing to forgive some of these charges if we can get the payments coming in on track again.
Let me know what you’d like to work out. 
Thanks,
Emily
DEBTOR REPLY #2:
Hi Emily,
You say there seems to be some confusion of what is owed on the loan. There is on your end.
Originally when you loaned the money it was $5233.00. The first month after the house was purchased You were charging us rent and your were no longer owed rent due to the purchase of the home. You in turn stated you would subtract the amount of rent from the loan which was$1086 dollars. and making the first due date of the loan 1/15/06 in the amount of $100.00. Adding this Amount subtracted $1600.00 for 1 year four months and the partial payment of $25.00 in August 2007 comes to $2522. !
And you are not a financial institution. This amount will be paid and no more than the amount originally owed. You are not a bank and either are we. We never were well off if we were we would not have needed your assistance to begin with. We will make the attempt to pay this balance of $2522 and no more than this amount owed. YOU WERE SENT THE TITLES TO THE SAID VEHICLES .You can add on as much as you like but you will only recieved what is owed. I have other bills and just like you or maybe you are in a better position to pay yours. Maybe money is not object to you but its a survival on our end. Maybe you are hard up for extra cash and harrassing us is a way to scare us into paying you more than you are entitled? Nothing has changed from last year I still work and my parents are retired and we try to maintain a home for the childern. We offered a payment arrangement and its up to you to except it or not… Its up to you?
Karen
Emily’s Notes:
- I have no recollection of verbally crediting them for a month’s payment of $1000+ toward this note. My records do not reflect it, but she is ADAMANT about it, so I may eventually forgive it to keep the peace. However, that’s not our only issue here.
- She notes that neither of us is a bank. Perfectly true, perfectly irrelevant.
- She notes that we have title to the car. Yes – but that’s not turning into cash for me, is it?
- She suggests that I am harassing her for funds. 2 emails in 1 year is not what I would consider harassment. Especially when I was trying to be very nice in the emails.
Let’s see how the saga continues…
Emily’s Reply #2:
Hi Karen,
I would love to speak to you on the phone about this. Please give me a call at xxx-xxx-xxx between 12-8PM Eastern Time. Or I’d be happy to call you if you’d give me a good time and number to reach you. I’m also happy to talk with your whole family if you’d like. It seems like I am making you upset and that is not at all my intention.
I don’t remember the $1086 being credited to you, but I am willing to be convinced…. According to my records your last rent payment was $1045 on 10/3/2007 and the sale of the home took place on 11/22/2005. The payments I added up to total $1300 do include the $25 payment made on 8/3/2007, but don’t include the late fees that were included with the money you sent because those aren’t credited toward paying off the principal, under the terms of the note. So starting amount of $5233 – $1300 paid so far = $3933 still owing, plus interest and late fees. I am willing to discuss waiving the interest and late fees if we can get the payments back on track, here. Let’s figure out where we are and how we need to move forward to work this out! I am not trying to scare you or intimidate you. In fact, I am trying to be very nice, and working from my understanding after reading the documents we signed and looking at my records. I just thought that it would be good to touch base since we hadn’t talked in a while. Looking forward to catching up! Thanks! I am confident that we can come to an agreement we’re all happy with. My best to you and your family.
Emily Cressey
DEBTOR REPLY #3:
Hi Again Emily,
Just wanted to let you know I did receive your email and still its not accurate. The selling of the home took place on 11/10/05. The completed process was 11/16/05. You charged us for rent for november the amount was $1045.00 and you in turn told my mother you would apply this amount to the loan…. And now you are in denial …how is this working this issue out? I WORK DAYS AND I GO TO SCHOOL SO I AM NOT AVAILABLE TO TALK…I GET HOME LATE. I OFFERED A SOLUTION AND TALKING TO YOU ON THE PHONE WILL NOT MAKE THE DIFFERENCE BECAUSE IT SEEMS YOU BELIEVE YOU ARE RIGHT AND WE ARE WRONG.ITS UP TO YOU TO TAKE THE $25.00 PER MONTH ITS WHAT WE CAN AFFORD AND MY WALLET WILL NOT GROW EITHER WAY…..!
KAREN
Emily’s Reply #3:
Hi Karen,
Yes, that would be great if you could get back on track with the $25/month payments I would really appreciate it. Thanks and good luck with your classes!
Emily
Emily’s Notes:
At this point, she has refused to talk with me on the phone, and has offered to start making $25/month payments again. That’s more than I’ve been getting, so I’m trying to snap that offer up without arguing/confirming my position on the debt owed. Even if she only does pay $2500 more, that would be a lot more than I have collected thus far and more than I’m likely to see any time soon if I apply for and receive a judgement.
I’m probably being too soft on them, but my primary objective is to get more of what I’m owed, even if it’s not all.
This is the last email from our correspondence so far, so we’ll see if the $25/month payments resume on the 16th of the month, as she suggested….
How do you handle collections? Am I too hard, too soft or just right here?
Even with a judgement, I don’t know if I would be able to garnish wages or attach to an asset, so I’m willing to continue trying to work with them and bide my time. It’s a learning experience….
Emily
Popularity: 14% [?]
Sandy and Danny – Dog Dancing Superstars!
Posted by: | CommentsDo you like "dog dancing"? Neither do I, but apparently there are enough people that do like it, that they host competitions for this activity and field some talented contestants.
Since I have had the experience of training a guide dog puppy, I know that it takes some considerable practice to develop discipline, timing and skill in your dog, as developed by this pair. Check out their dance routine, and see if you don’t get a laugh, or at least wonder… "How’d she get him to do that?"
Popularity: 15% [?]
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