If you don’t have enough money at your hand, you’re going to have a difficult time running your business and fulfilling day-to-day tasks. This is especially important these days when companies worldwide are struggling to stay afloat. Let’s see how you can best obtain quick access to working capital such as a cash advance.
How to Make the Best Choice
Think of a merchant cash advance (MCA) as alternative financing, which isn’t a loan. MCA providers give you an upfront sum of cash in exchange for your future sales. There are certain factors to take into account when applying for a merchant cash advance. Let’s go through them:
Apply for a cash advance from a reputable alternative online lender.
Look for simple and flexible payment schedules. If the MCA provider asks you to provide requirements that are more than usually expected, consider applying to another one with a simpler process.
Make sure the interest rate is among the lowest in the industry.
As a rule, MCA providers automatically charge the amount you owe from the sales you make. However, there are MCA providing companies offering a different process. So, find out all the details and nuances about the payment form to make the right choice for your financial needs.
Make sure the provider doesn’t require any credit check or personal guarantee.
Find out whether there are restrictions on how you can use your funds.
Make sure there are no hidden fees or gimmicks.
Be aware that you can find an MCA provider that approves credit scores below 500 approved. So, if you have low scores, this can be the best option for you.
See whether you can get your funds as soon as possible, e.g. 72 hours from application.
Make sure no tax returns or financials are required.
How to Pick the Best MCA for Your Company
Unlike banks, MCA providers rely on financial technology when making funding decisions. Mostly, they work directly with a payment processor to figure out the amount of money that’s going in and out of your business account. There are some basic factors that you should take into consideration to choose the best MCA for your business.
Author Bio:Michael Hollis is a Detroit native who has helped hundreds of business owners with their cash advance solutions. He’s experimented with various occupations: computer programming, dog-training, accounting… But his favorite is the one he’s now doing — providing business funding for hard-working business owners across the country.
If you’re trying to get a banking and finance job, but you’ve never been skiing, know nothing about the Hamptons and think Gstaad is a kind of cheese, you may be at a disadvantage. Although banks are now doing their best to open recruitment to the broadest range of applicants possible, historically at least they had a well-documented tendency to hire from the upper middle classes, particularly for client facing roles. In London. 90{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of people in senior roles in finance still come from higher socieconomic backgrounds. – The hangover is real.
If you don’t have the advantage of an upper middle class upbringing, a new study from the University of Bergen in Norway identifies the soft skills that act as the selection criteria for getting hired and promoted into elite jobs. These are the skills that you need to both cultivate and to signal on your CV.
Soft skills play a “substantial role” in getting hired into an “upper-class” job, says Lisa M. B. Sølvberg, a professor of sociology at the Norwegian University of Bergen. “Hard skills’ do not suffice to achieve an upper-class position,” she adds, noting that as university attendance has increased, so soft skills have become an increasingly important differentiator – and that many of the soft skills required overlap with the behavioral traits of the upper middle classes.
Sølvberg analyzed the language used in 150 job advertisements in three key sectors and extracted the skills that tacitly determine whether you’ll get the role. She looked at the cultural sector (Eg. editors, managers of cultural institutions, film, higher education), she looked at the professional sector (eg. doctors, dentists, lawyers), and she looked at the “economic” sector (Eg. CFOs, vice presidents, compliance officers, COOs).
In the economic sector, a few key skills stood out.
Soft skills for economics and finance:
Companies in the economic sector prioritize authoritative traits, says Sølvberg. Yes, candidates need the right education and professional experience, but they also need the following more nebulous faculties. –
Goal oriented and results driven. – Unlike other sectors, jobs in the economic space are all about tangibles, and you’ll need to show this on your résumé, says Sølvberg. You’ll also need to show that you can “improve and develop”, both a team and yourself.
High energy. – Recruiters for economic jobs want “go-getters.” You need to demonstrate that you’re, “ambitious, an achiever, driven, on the offensive and innovative.”
Sociable cooperation. Being authoritative doesn’t mean being aggressive. To succeed in an elite economic role you’ll also need to demonstrate good networking skills, to be “enthusiastic and energetic, social and sociable, and to have cooperation skills and communication skills.”
Structured hard work. Sølvberg found that elite economic jobs also require candidates to demonstrate an appetite for structured hard work. You need to display a high capacity for work, excellent time management and strong analytical skills.
Soft skills in other sectors
Sølvberg highlights the contrast between the soft skills required for economic jobs and the soft skills required elsewhere.
In the professional sector, for example, the emphasis is instead on being dedicated, self-sufficient, responsible, and having a high level of personal aptitude. In the cultural sector there’s more emphasis on coaching employees to achieve a common goal (alongside being hardworking, analytical, vigorous, independent and having a high level of personal aptitude again).
Sølvberg notes that gender disparities tend to be reinforced by the different job descriptions. – “Personal aptitude” is far more highly valued in the female-dominated sectors, whereas male dominated sectors like finance are more likely to value commercial understanding, strategic thinking, analysis, innovation, vigor, ambition and confidence.
Sølvberg is in the business of making observations rather than recommendations, but if you’re applying for a job in finance, it might be worthwhile considering how your application reflects her findings. – Do you demonstrate the skills shown in the bullet points above? Even if they’re not explicitly required in the job description, it may be worth incorporating them into your CV.
You might also want to talk about exercise. In a previous study, Sølvberg found that male members of elite classes were very physically active and displayed “negative attitudes” towards people who didn’t exercise. They didn’t display these negative attitudes initially, but they emerged within 15 minutes of chatting to them.
Contact: sbutcher@efinancialcareers.com in the first instance. Whatsapp/Signal/Telegram also available (Telegram: @SarahButcher)
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They say 30 is the new 20. Considering how undisciplined many of us are with money in our 20’s, that’s probably a good thing — because that also means it’s not too late to learn some good habits and steady the ship. Whether you’re five years from 40 or you managed to stumble across this article with a decade to spare, here are 6 key personal finance moves you can make right now that could help make life easier on your future self.
1. Build a Budget
You’ve probably heard this one a hundred times before — but that’s because it’s a really good idea. That’s why it’s our top tip here. Your financial goals may remain out of sight if you can’t build (and stick to) a budget.
When it comes to divvying up your income, consider the 50/30/20 rule:
50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for essentials: Think rent, groceries, bills, etc.
30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for wants: Maybe it’s a new gadget or you’re saving for a vacation.
20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for savings and debt: savings or investment accounts, paying off credit cards or student loans, etc. And don’t forget to include a pad of emergency funds within your savings account (or somewhere that’s easily accessible).
2. Tackle Your Debt
If you’ve got debt, you’re not alone. In fact, the average American has $52,940 in debt, according to Business Insider. And that can be a hindrance, especially if you’re still establishing yourself as an adult, and want to work towards financial goals like homeownership.
One strategy you could consider is debt consolidation. Jennifer McDermott, a Consumer Advocate with finder.com, often recommends “consolidating all debts into one place.” You can sometimes take advantage of introductory offers with low interest rates, and having one singular payment may feel easier to manage than juggling several monthly bills.
Then there’s the “good debt vs bad debt” debate. A credit card, for example, could be considered “bad debt” by some, because of the interest rate you may be charged to carry a balance. Drew Parker, who created the Complete Retirement Planner, says “Paying $200 per month on a $5,000 balance can take almost three years to pay off with a high interest rate (18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} or more), and it will add more than $1,300 in interest charges.”
Parker adds, “If you were to instead invest that $200 per month, you could “have $10,000 in hand in the same amount of time (with a 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} return).”
3. Save, Save, Save
It’s never too late to start saving. Once you’ve got a plan to get any debt under control, saving — even a few dollars a week — can really go a long way.
If you get paid through direct despot, consider routing some of that to a savings account automatically. Out of sight, out of mind, and earning interest.
Lou Haverty, a CFA at Financial Analyst Insider, recommends saving at least the equivalent of 1x your annual salary by the time you’re 35. “If you’re not at that level yet, and a lot of people aren’t, it can serve as a good reminder that you should consider increasing your savings rate to get closer to that 1x mark.”
4. Invest in Yourself (You’ll Be Glad You Did)
For some people, the word “invest” brings to mind fancy financial maneuvers not meant for the average person — but that’s not really the case. There are simple, smart ways to invest at an early age that, with the help of compound interest, could help bolster retirement savings down the line.
You’ve probably heard of one of the most popular examples, a 401(k) account. Contributions to your 401(k) are made with pre-tax dollars. They then accumulate (tax-free) until age 70 ½ , when you start receiving regular distributions. If your employer matches a percentage of your 401(k) contributions, you should consider a regular contribution of at least that much. Another way to think about an employer contribution is “free money.” Sounds nice, right?
If you change jobs, you can roll over your 401(k) to a Roth IRA. As of 2021, the annual contribution limit to a Roth IRA was $6,000. With compound interest, that can really add up over time.
Take Advantage of Compound Interest!
Compound interest is your friend. Put simply, the more you put away now (so, the longer you save) the larger your account is likely to grow over time.
Richard Best, a writer for dontpayfull.com, agrees: “There’s a real cost of waiting to save for your retirement.” He gives the following example:
“Vince contributes $20,000 starting at age 25 and then stops making contributions at age 45.
Ally waits until she’s 45 to start contributing $20,000 per year until age 65.
They’ve both invested the same amount of money. However, assuming a 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} average annual return, Vincent would have $2.5 million by age 65, while Ally would have just $790,000.”
That’s a difference of over $1.7 million. Go ahead and read that last sentence again.
5. Keep an Updated Will
A will is a form of estate planning that can help protect your assets and your family’s future financial well-being should you pass away. It’s worth considering if you’ve recently tied the knot, had kids, or are otherwise wading into the waters of positive net worth.
While you can write your own will, it might be wise to at least meet with a professional first. If you became incapacitated without plans in place, someone may have to go to court to gain conservatorship over your finances.
If you’ve already put together a plan, it’s always a good idea to regularly check and update your beneficiaries.
6. Consider Life Insurance
If you think life insurance is something to put off until you’re older, you might want to think again.
The truth is, the rate you pay for your life insurance is usually determined in part by your health and other factors at the time of your application. So if you’re young and healthy, you’re more likely to pay a lower premium than if you waited until you were older.
And unless you’ve amassed serious assets already, a product like term life insurance could be an affordable way to help ensure some financial stability for your loved ones if you passed away.
While everyone’s financial situation is unique to them, following and implementing these six money moves by the time you’re 35 could help give you a great financial foundation to build on.
We receive a referral fee from Bestow Agency, LLC dba Bestow Insurance Services in CA, who is the licensed agent.
The information provided is not intended to offer any tax, legal or financial advice. It is always a good idea to consult your tax, legal and financial advisors regarding your specific situation. Furthermore, this article does not ensure your eligibility for any specific product.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. The content was purely for informational purposes only and not intended to be investing advice.
The holidays can push budgets past their limit as people do more entertaining, attend more events, dine out and participate in gift exchanges. Whether you’re gathering in person or celebrating at a distance this year, it will be tempting to overspend. Here are some tips to help you plan for a less financially hectic 2021 holiday season.
Create a holiday budget
The last month of the year offers many opportunities to splurge. Prevent unfettered spending by setting a “do-not-exceed” dollar amount for holiday-related expenses. Include all purchases tied to the season, from gift giving to refreshing your holiday wardrobe, buying decorations, entertaining and more.
Track your expenses
A budget is only useful when you track your expenses against it. Keep receipts for purchases and tally expenses at the end of each shopping excursion. Check your totals to make sure you’re not exceeding your budget — and are prepared to make returns if you have.
Manage your expectations
The COVID-19 pandemic continues to affect global supply chains, causing disruptions in many different and surprising product categories. Merchants of all sizes will have product shortages and may offer less merchandise choice overall. Prices will be higher too, driven by increased demand, inventory shortages and higher than normal inflation. And don’t expect fire sales as we get closer to the holidays. Retailers will be unlikely to discount product that’s flying off the shelves.
Shop early
More than ever, this year you’ll want to give yourself plenty of time to do your holiday shopping. Both brick and mortar and online stores will be affected by the supply chain challenges. Be flexible. You might have to spend more time looking for what you want. You may need to switch gears if you can’t fulfill your initial wish list. And if you need to ship your gifts, keep in mind that the holidays always cause shipping delays, but this season the slowdown is predicted to be greater than usual.
Plan for increased shipping costs
In addition to inflated prices on general merchandise, shipping costs are spiking upward as well. The U.S. Postal Service has announced price hikes, and other major shipping carriers are also raising their prices to counteract higher oil prices and staffing shortages.
Give differently
If the gifts you want to buy are in short supply or “things” aren’t your thing, consider ticking off your gift list by giving experiences. Local restaurants are eager to make up for months of lost business. Likewise, theaters and sporting events are finally opening up and need to fill seats that have been empty too long. You could also consider giving financial gifts to your loved ones such as a partially funded savings account, Roth IRA, savings bond or an appointment with a financial advisor. And finally, charitable donations are becoming more popular as holiday gifts, particularly if the non-profit is meaningful to the recipient.
Bronwyn Martin is a financial advisor and chartered financial consultant with Martin’s Financial Consulting Group, a financial wealth advisory practice of Ameriprise Financial Services, LLC. in Kennett Square, and Havre de Grace, Md. She specializes in two fee-based financial planning and asset management strategies and has been in practice for more than 21 years. To contact her visit www.ameripriseadvisors.com/bronwyn.x.martin
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There’s no shortage of great personal finance advice out there. The problem is figuring out whether or not it applies to you.
“Personal finance is personal before it’s financial,” Talaat McNeely told me during an interview earlier this year. McNeely is the co-founder of the site His and Her Money, which he runs with his wife, Tai. I’ve found this idea to be a helpful way to think about your finances and life in general.
There is no single tip or money hack that will instantly change your life. But some principles and concepts can put you on the path to achieving your goals. You’ll just need to figure out a way to apply them to your unique situation.
Here are the most impactful lessons I’ve learned during my time as a personal finance reporter, and how I’ve applied them to my life. These tools and concepts helped my wife and me set aside over $20,000 to pay off student loans (once interest resumes next year), build our emergency fund, and feel less stressed about our financial future.
A good budget should manage not only your expenses but also your emotional relationship with money.
5 Things I Learned as a Personal Finance Reporter
Since launching NextAdvisor in the middle of the pandemic, our biggest priority has been sharing actionable advice readers can use right away in their daily lives. In the course of fulfilling this mission, we’ve learned quite a lot about ourselves.
Here are four personal finance concepts my wife and I have incorporated into our everyday approach to finances, plus one strategy we plan to use when we are ready to buy a house.
1. Budgeting Is About More Than Just Managing Money
For years my budget was a homemade spreadsheet I updated sporadically in hopes of becoming a young Warren Buffet. It rarely worked as well as I wanted. In theory, my budget should have turned me into the ultimate saver. But what frequently happened was: I’d update it once a month only to find out I’d overspent on eating out. And it wasn’t helping me feel any less stressed about money.
One of the first stories I wrote for NextAdvisor was about creating a budget, and that is where I discovered zero-based budgeting (ZBB). Once my wife and I started using the zero-based budgeting method, we didn’t just start saving more but also began to feel less worried about money. In my experience, a good budget should manage not only your expenses but also your emotional relationship with money.
Piper after his surgery. He hated the cone of shame, so we put him in a baby onesie.Jason Stauffer/Getty Images
With ZBB, every dollar that comes in is given a purpose. We assign funds to pay for rent, cellphone, and other expenses. But we also assign money for more than just our current bills. This strategy helped us pay off student loans sooner than we expected.
ZBB also helped us build an emergency fund for the first time in my life. When the cat needed a $2,000 emergency surgery this past summer, we already had that money set aside. If we hadn’t had an emergency fund, this surprise cost would have been a setback for other goals. Since this money was already set aside, it didn’t negatively affect our other financial obligations.
We’ve been using the zero-based budgeting app You Need a Budget (YNAB) for almost a year and a half, and we absolutely love it. This app has effectively turned our credit cards into debit cards, which is important because I’m a full-blown travel credit card junkie. When I enter a credit card purchase into the YNAB app, the funds are immediately assigned to pay off that card. So even though I won’t actually pay the credit card bill for up to 30 days, the budget tells me that money is no longer available to spend.
How to Find a Budgeting Strategy That Works for You
If you want to try zero-based budgeting for yourself, I think YNAB is a great place to start. It’s important to note that it’s not free. But there are plenty of free or cheap ZBB templates available. And ZBB isn’t the only budgeting method that works. As you explore different approaches to budgeting, zero in on why you want a budget in the first place. A budget can help reduce financial stress, and get you closer to your goals without turning you into Ebenezer Scrooge.
2. Prioritize Income Over Expenses
There is a limited number of Starbucks lattes you can cut from your budget—but an unlimited number of ways to make money.
I’ve talked with people who’ve paid off their mortgage in under six years and conquered six-figure sums of debt. One common thread from these success stories is they find ways to make more money. They start side hustles, businesses, or find better paying jobs. Having a budget that works for you is still the first step. But if you don’t net enough income after expenses, then saving for anything else will be a struggle.
My wife and I are expecting our first child in 2022, and for us, it’s as important as ever to increase our household income. My wife is considering a move from freelance to full-time work, which would provide a more stable income. From there, we might explore other freelance or side hustle opportunities.
How to Increase Your Income
Starting a side hustle might not be as challenging as you think. Chances are you already have interests and talents you could use or develop to boost your income. One great bit of advice Marc Russell shared with me was to repurpose the skills from your current job into a side hustle. Russell is the creator of the personal finance Instagram account Betterwallet. “As long as there’s no conflict of interest with your current job, you can go off and create your own thing on the side and get paid for it,” he said in a previous NextAdvisor story.
3. Negotiating Can Be As Simple As Asking
The thought of negotiating has always terrified me. My idea of a good negotiator has always been a former Navy SEAL or pro athlete, someone who’s in control, confident, and used to winning. In reality, negotiating is often as simple as asking for what you want. Crafting a good offer sometimes includes offering something of value in return.
I’ve never asked for much of anything, much less a discount on my housing costs. Recently, I was looking to move into a new apartment on a short-term 3-month lease. I emailed my current property managers to ask about two units downstairs I knew were vacant. I asked if either unit would be available for a short-term lease and I gave them valuable information, reminding them the one apartment had been vacant for over a year. Then I offered to pay all three months upfront if they would reduce the rent.
Now I’m paying over $150 less a month and my landlord has $4,000 more than before I asked for what I wanted.
How to Negotiate More Frequently
Any negotiation is better than no negotiation. Find an approach that could help you ease into it and be more comfortable. Try making an indirect request and see if that’s easier for you. Instead of coming out and saying you want a pay raise, ask your manager something along the lines of, “what have people in my position done in the past to help increase their pay?” At the very least, it gets the conversation started. You’ll never get something if you don’t ask for it in the first place.
4. Be Patient and Consistent. Change Takes Time
Changing the trajectory of your finances takes time.
That can be disheartening to read. Everywhere you look it’s one headline after another highlighting the youngest millionaire or someone who went from insurmountable debt to financial freedom in less time than it took to read their bestselling book.
Life is a marathon, but we only see the last few hundred yards of other people’s victories. Almost all financial achievements are preceded by a long period of learning and building momentum. Whether it’s learning to code before becoming a tech entrepreneur or saving up for a down payment on a house, meaningful changes take time.
If you can only take small steps, just keep taking small steps. It can be tough seeing how fast everyone else seems to be moving. What’s not obvious is how much time it took them to develop the speed you’re seeing. Understanding how much time is involved in making meaningful improvements is the foundation for positive financial decisions.
How to Use Time to Your Advantage
The best way to get time working for you is to start now. Start small, start slow, start without it being perfect. Then your job is to continue what you started, however slowly you’d like, and to learn and make adjustments along the way.
5. Prospective homeowners: Ask about a zero-cost mortgage
While reporting on mortgages, the most overlooked strategy I’ve come across for reducing your mortgage cost is to ask for lender credits in exchange for a higher interest rate. In this situation, the credits would be used to cover the loan fee portion of your closing costs. A zero-cost mortgage means you’d be paying a lot less out of pocket every time you buy a home or refinance.
Here’s why I plan to get a zero-cost loan:
By reducing the upfront cost I’ll have more liquidity.
What I would have spent on upfront closing costs can be used to pay down the mortgage balance, invest in a retirement fund, or set it aside for unplanned home repairs.
If I move or refinance a combined six times in the next 30 years, I’d pay closing costs (3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}-6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the loan) six times. So for me, taking the higher interest rate with a zero-cost loan is cheaper because our future plans aren’t set in stone.
When researching lenders, ask if they have a zero-cost loan option. Compare your options and see which one makes the most sense for you. In my experience, the zero-cost mortgage is not as common or widely advertised. Also, the zero-cost mortgage is different from a no-closing-cost mortgage. A no-closing cost mortgage is when the closing costs are rolled into the total loan balance.
How to Pick the Right Mortgage for You
Any time you take out a home loan, you’ll want to be sure that you understand all your options. Ask a lot of questions and work with a professional who will help you understand your options, rather than just someone who gives you “the answer.” In my experience, most borrowers are overly concerned with the mortgage rate and overlook the closing costs. Interest and closing costs can be easy to miss because they might be added to your loan balance, but you’re still paying even if you’re not paying out of pocket when you close.
Bottom Line
The above practices have given me the patience I needed to establish financial habits that will last a lifetime. They worked for me. But it doesn’t mean you should take the same approach. If nothing else, use these concepts to start thinking about how you can approach your finances differently or to start asking questions you hadn’t considered before.For more information, check out this library of resources on NextAdvisor’s savings page.
For former NFL player Adewale Ogunleye, seeing anyone, let alone athletes, struggle to manage money boils him to his core.
So, he is doing something about it.
Knowing that the average playing career in the NFL is less than four years, Ogunleye’s “light bulb” moment came in his second year in the league. That’s when he said a teammate who was a high selection in that year’s draft asked him for a loan.
“I’m looking at this guy thinking, ‘I’m undrafted.’ I only had a rookie minimum salary and you’re asking me for a loan? And I was actually in a position where I could give them a loan. And so that’s where I realized there’s a problem,” Ogunleye, who played 11 NFL seasons, told USA TODAY Sports.
Walter Stith, a financial adviser at Morgan Stanley’s Global Sports and Entertainment division, says there is a simple reason to see how wealth grows, and it’s based on the average time an athlete has to produce income in a chosen sport.
The average career length of athletes in each of the four North American major sports is less than four years.
“I wouldn’t necessarily say that it’s a temptation when it comes to wealth disappearing. I would say it’s more about obligation,” Stith, a former NFL and CFL player said. “Most of these athletes feel that they are obligated to help friends and family and it creates an issue. Financial literacy as a whole needs to be put as a priority in our educational system, especially in dealing with Black wealth and Black entrepreneurship.”
That’s one of the reasons why Ogunleye teamed with UBS and its athletes and entertainers segment, which helps their peers and underserved communities become financially literate.
Its partnerships, for instance with the Southern Intercollegiate Athletic Conference, can help educate enrolled students at the 14 league schools.
UBS and SIAC have announced a virtual series, “ELEVATE! Creating and Preserving Black Wealth,” designed to introduce Black people to job opportunities in the financial industry while providing tools to become more proficient in managing money.
In those sessions, which will be led by Ogunleye, students who are enrolled at SIAC institutions can discuss with leading experts and ex-athletes ways of building wealth and passing it on to future generations.
Former NBA player Allan Houston and SIAC Commissioner Greg Moore are part of the discussions, which have three more sessions set for the spring semester.
Among the skills that will be taught include creating a strong financial base by developing smart habits, learning to build, maintain, and protect your credit score and preparing for life after college with courses on taxes, homeownership and investing in 401(k) plans.
Managing NFL wealth to a new career
Ogunleye, the son of Nigerians, grew up in the projects on Staten Island, New York, which he said provided the fuel for his NFL career.
In 2004, after totaling a career-high 15 sacks, he was traded from the Miami Dolphins to the Chicago Bears. Ogunleye signed a six-deal deal worth $34 million, and he pocketed $15 million in signing bonuses.
Taking lessons he learned from managing his NFL millions propelled him to a second career in the financial world, and now he is the head of sports and entertainment at UBS.
One of his first orders of business was to reach out to SIAC Commissioner Moore.
The SIAC, headquartered in Atlanta, is made up primarily of historically Black colleges and universities that compete in NCAA Division II, with campuses stretching from Ohio to Georgia.
“I personally believe that income inequality is an existential threat,” Moore said. “Some of our HBCUs are located in some of the most economically underserved, disconnected communities in the country.”
Some communities where those schools are based have poverty rates well above the national average, which is 11.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Tuskegee, Alabama (Tuskegee University) has a poverty rate of 28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}; Albany, Georgia (Albany State University) is at 31{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while Fort Valley, Georgia (Fort Valley State University) is among the worst, where 42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the population lives in poverty.
‘Tomorrow’s Talent’
One way SIAC is moving forward in financial literacy is through a program called Tomorrow’s Talent, aimed at helping students eventually gain summer internship opportunities and careers with UBS.
Moore also reached out to Houston, who retired in 2005 after playing 12 seasons, to gauge his interest in “ELEVATE,” which is the virtual event series aimed at delivering financial wellness literacy.
Moore thought it would be crucial to have Houston, now in a leadership role as the special assistant to the general manager of the New York Knicks, share his story and perspective on his career. He also wanted Houston to discuss his mindset as an entrepreneur and as someone making a social impact with his organization FISLL. (Faith, Integrity, Sacrifice, Leadership, & Legacy).
Houston said the idea of preparing for the next step financially was important to him as he learned about managing money from his father, who was an assistant coach at Louisville (and later the first Black head basketball coach at Tennessee), and his mother, a financial aid director at Louisville while simultaneously running a logistics and transportation company.
“When you can share these stories and let the students know, and can give them the right information, access and opportunity, they can really create a lot more than we can imagine,” said Houston, who signed nearly $120 million in NBA contracts. “It’s just they have to have the tools and the vision and the execution strategy.”
Ogunleye, Moore and Houston agree that there is a misconception around the term “financial literacy,” as they say having a lot of money is not a prerequisite of managing money.
Changing the face of the financial services industry, not only by greater diversity of those working in the field but creating and maintaining a talent pipeline, is one of the main goals of the partnership.
“You don’t just budget your money, you budget your lifestyle,” Houston said. “Fundamental financial literacy is just understanding and watching what you have versus what you actually need, in which you can save and start building a lifestyle habit.”
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