If you’ve just become engaged, it might seem that finding the right person to share your life was the hard part. Now look at the costs of your wedding. If you haven’t already seen the national average for wedding expenses, read ‘em and weep:

Is it any wonder wedding loans are so popular? (Are you still with me? Or have you already clicked onto Expedia to begin plans for eloping in Jamaica? Take a deep breath and read on.)

Give a little thought to what you want for your wedding. Do a little internet research. Make a few phone calls. Draw up a rough estimate of what your wedding might cost.

This is probably a good place to address the urban legend surrounding who pays for what. Traditionally, the bride’s parents paid for nearly everything. No doubt many fathers-of-the-bride took out a wedding loan to do it. The groom’s family paid for the rehearsal dinner, the bride’s bouquet and the honeymoon. Though that might sound pretty terrific, what you have to remember is the people writing the checks decide how their money will get spent. But that’s all history anyhow.

These days, most couples are older (him: 28; her: 26) and paying for 77 percent of the wedding expenses. You and your intended may or may not have a nest egg of your own, but at that age you probably have some pretty clear ideas about what kind of wedding, reception and honeymoon you want. And if you want your wedding day to bear any semblance to those ideas, you will come up with the money – even if it means taking out a wedding loan. (Advice for grooms: If you’ve ever taken out a loan for a boat, motorcycle, pool table or home theater system, this is no time to balk if your bride suggests a wedding loan. Believe me, she hasn’t forgotten about your boat, motorcycle, pool table or home theater system.)

So, what if the wedding of your dreams is way, way out of your price range? Pick out the elements that mean the most to you. Call this your “I’ll Tell You What I Want, What I Really, Really Want” list. Will you be disappointed without that fabulous gown? Put it on your ITYWIWWIRRW list. If it’s important to be able to invite all of your friends and family to the reception, put it on the list. How about your honeymoon? If you’ve both been dreaming of honeymooning in Europe despite the lousy exchange rate, this should go on your ITYWIWWIRRW list. For these things, it may be worth taking out a wedding loan.

Now what are the things you don’t care so much about? The flowers? The invitations? The engagement ring? If the parents have offered to help with the wedding expenses, these things go on the “We Can Live with Almost Anything You Decide” list. If you’re totally on your own, the items on your WCLWAAYD list are the things you’ll scale back on or ax completely. These are definitely not the things that are worth a wedding loan. Now go back to the internet for more research and pricing.

Now compare your initial estimated expenses with the latest revision. Feeling better yet? Or are your numbers still too high?

Take one more look at the ITYWIWWIRRW list. Now close your eyes. Can you picture your wedding day without the dress? Would you feel cheated in Toronto instead of Paris?

Okay, allow me to plead guilty right from the start.

When it comes to last minute shoppers, I'm first in line. Christmas, Valentine's Day, family birthdays -- you name it and I'm the one in line the day before - - and often the day of -- the big event.

Turns out that could be a big mistake, money-wise. A new study by three university researchers: Jennifer Aaker, the Xerox Distinguished Professorship in Knowledge at the University of California, Berkeley's Haas School of Business; Cassie Theriault, a marketing Ph.D. candidate at Stanford University's Graduate School of Business; and Ginger Pennington, an assistant professor of marketing at the University of Chicago Graduate School of Business, says that last-minute shoppers pay more and get less than their more time-savvy counterparts.

"Last-minute shoppers on a tight deadline will pay more for a product advertised as a means to prevent a negative outcome (such as disappointing their spouse) than for a product advertised as a means to promote a positive outcome (such as thrilling their spouse with the perfect gift)," Aaker explains.
After conducting a series of experiments with hundreds of college students, Aaker, Theriault, and Pennington found that the time before deciding to make a purchase is a critical factor in a consumers' decision making.

One study involved a group of students facing midterm examinations who either perceived the exams as “soon, only a week away” or “still a full week away.” These students received sales pitches from a fictitious tutoring service that were presented either as a way to avoid failure – highlighted with the marketing slogan, “Don’t do poorly in any class!” – or, more ambitiously as a way to achieve success, with the catchphrase, “Ace every class!”

The research group says that their experiments found that consumers caught in a bind of having to buy something as soon as possible worry about failing their goal. This concern leads them to settle for products advertised as having the bare minimum features needed, as in the case of the tutorial service pitch claiming to help students to “not do poorly in class.”

With more time to make a decision, however, consumers become more confident that they can reach “higher goals” in their purchase, so a product that is “good” will likely appeal more than a product that is merely “not bad," according to Aaker. Moreover, Aaker found through her experiments that consumers are willing to pay more for items that sellers present as having desirable features, or products that are “promotion-framed,” sold under such sales slogans as “You desire the very best!”

For consumers, the research poses important questions on how they make decisions. Should we worry that our standards decline when time is running out? And if we have more time to decide, should we think about setting overambitious goals, and perhaps even ask ourselves: “Would I really buy this if I had to make the decision tomorrow?”
With a little planning - - and a well-placed calendar -- time management doesn't have to be so pressure-packed. Now excuse me while I go off to do some early Christmas shopping.

Your money is in jeopardy and you may not even know it. Study after study demonstrates that scam artists who prey on unwary Americans and fleecing them of their savings are on the rise and more successful than ever. Credit card fraud alone cost Americans $2 billion in 2007, according to Celent Communications.

What can you do? Fight back by knowing what to look for and learning to anticipate the tricks of the trade used by unscrupulous hucksters and con artists.

Here are some good tips from the folks at ClearPoint Financial Solutions, a finance company that focuses on consumer fraud:

Telemarketing Scams

According to the Alliance Against Fraud in Telemarketing (AAFT) Americans lose nearly $40 billion a year due to telemarketing fraud. Top phone scams include: free prize offers, charitable solicitations, travel offers, investment fraud, “900” numbers and advance-fee loan scams. This is not to say that all telemarketing solicitations are fraudulent, as many are perfectly legitimate. To be safe though, consumers should consider the following when dealing with a telemarketing call:

Be wary of free prize offers. If something sounds too good to be true, it usually is! Declining the offer and ending the call is your best defense.

Check your charities. You should never make a monetary donation over the telephone. Instead, if a charitable organization contacts you over the telephone for a donation, ask that they send you literature in the mail instead. Nearly all organizations would be happy to accept a check in the mail. That way, you can determine that you are sending money to the correct charity, rather than giving your credit card information to a potential thief over the phone.

Investigate investments. Never discuss investment opportunities with a solicitor. You should only conduct this type of business with a company that you  have selected based upon doing your homework. Don’t give in to high-pressure sales tactics or anything that makes you feel uncomfortable. When in doubt, just hang up!

Unsubscribe. To eliminate telemarketing calls altogether, consumers have the option to sign up with the National Do Not Call Registry. To do so, consumers can visit www.donotcall.gov.

Phishing and Vishing Scams

Phishing occurs when scam artists send emails that appear to be from a bank or e-commerce organization. Typically the message warns the consumer that their account has been compromised, and that immediate action and response is necessary to fix the problem. Consumers are advised to click on links within the email to start the process. Vishing occurs in the same manner, however the recipient is directed to call a number to correct the problem, and is then prompted to give their account information over the phone. Avoid these types of scams by:

Stay away from links. Never click on a link that is included in a suspicious email. Not only does it legitimize your email address, it can direct you to a fraudulent site that can 
capture your account information. Never follow prompts to enter your personal information online. Again, if you’re concerned about fraudulent account activity, check your account statements and notify your bank.

Exercise caution. Suspicious emails are just that –  suspicious. Be extra cautious if you see an email from your bank that’s asking for your account information. Since your bank already has your account numbers on file, they will never ask for it in an email. Simply delete the email and move on. If you are concerned about your account, be sure to call your bank, using the telephone number that’s printed on your bank statement, not the number that’s in the email.

Report spam. Want to stop the spam from hitting your inbox? According to the Anti-Phishing Working Group, you can report phishing or spoofed emails to the Federal Trade Commission the Internet Crime Complaint Center and to the company that is being spoofed.

ATM Scams

It may sound more like a new dance move, but the Lebanese Loop is actually an ATM scam. Scam artists will insert a plastic sleeve into the ATM and then wait for bank visitors to insert their card to access their account. When someone inserts their card into the machine and enters their PIN, the machine is unable to read the card and recognize the number. The person then assumes that the machine ate their card and walks away. The scam artist is then able to retrieve the plastic sleeve out of the ATM along with the person’s card.

Be aware of your surroundings. Before approaching an ATM machine, take a quick scan to see if there are any suspicious persons nearby. Always make sure you are using an ATM that’s in a well-lit area, and, if it can be avoided, never use an ATM after dark. Trust your instincts. If the area does not feel safe, try to locate another ATM.

Check the ATM. Before inserting your card into the ATM, check the machine to see if anything looks out of place or broken. If you feel the machine has been tampered with, use another ATM or go inside the bank to withdrawal your funds

Act quickly. If your card gets stuck inside the machine, immediately notify the bank or your credit card company and have them cancel the card. If it’s during business hours, ask if a bank representative can access the machine to retrieve your card.

Let's face it, times are tough enough without having some scam artists pout the hook on your wallet, credit card, or bank account. In this case, an ounce of prevention is really worth a pound of cure.

They say a happy employee is a productive employee.

But this summer, with gasoline prices inching up toward $4 per gallon, cash-strapped employees don't have much to smile about.

Here's some proof. According to Wayne Hochwarter, a professor of management at Florida State University's College of Business, Americans' work attitudes have been negatively impacted by the rising price of oil and gas.

In a FSU study of 1,000 workers across the U.S., 60% of employees say that the price of gas has significantly reduced the amount of money they have to spend on other things, while 45 percent reported the need to pay off debts more slowly or not at all. Additionally, 26 percent indicated that the cost of gas has necessitated going without basics such as heat or air conditioning, or even cutting back on food purchases, over the past few months.

What's more, Hochwarter reports that those most affected by gas prices tended to experience stress both on and off the job. Such stress include: negative views of work and the company, sluggishness, antagonistic behavior, feeling overwhelmed and sadness.

"Most of these effects can be attributed directly to distraction while at work," Hochwarter said. "Those I've talked to spent a significant amount of time worrying about their financial situation."

Hochwarter also asked whether employees felt alone in their sacrifices or if their company had to tighten its belt as well.

"Certainly, only a handful of employees noted that their company changed plans or had to go without because of the price of gas — even companies that rely heavily on fuel for their operations," he said.

That could spell trouble for small businesses. The FSU study reports that those employees most affected by gas prices who did not see the company sacrificing were less committed to getting things done while at work. Compared to those who felt that their company was doing without, those who felt alone in their sacrifice:

• Were 15 percent less committed to the company.
• Had job performance levels that were 12 percent lower.
• Were 20 percent less willing to stay late or work extra if needed.
• Were 25 percent less likely to give "maximum effort."

"The price of gas has contributed to the perceptions of many that they are simply never going to get ahead," Hochwarter said.

Not a good report for small businesses. From what Hochwarter found,  when employees feel they can't get a fair shake in the consumer marketplace, their work tends to suffer. That could make your bottom line suffer, as well.

Think about it -- your life insurance policy is your financial life preserver. Without it, your entire financial assets are in jeopardy if something were to go awry.

Most people know this, but still allow their life insurance policies to expire.

It's simply not enough to buy a life insurance policy once and forget it. As your life changes, you need to re-evaluate your insurance coverage to make sure it continues to meet your needs. You can do that by working with a qualified agent or financial planner, and asking and answering the following questions -- as often as necessary:

- How long ago did you buy your life insurance? Were your family circumstances different? Was the policy different?
- Have there been changes in your family's income, savings, debt or financial goals that could impact your needs with regard to coverage?
- If you have term coverage—which costs less than other types of insurance but remains in effect only for a specific term of years with no built-in savings—how long is the term? Will it be long enough to   provide protection until your children are through college? Will it help protect your spouse's (if you have one) retirement assets? Do you anticipate any significant changes in your financial situation?
- Have you reviewed your insurance in light of your long-term savings goals?
- Who is your beneficiary? Is this who you want to get the proceeds today? Can this beneficiary manage the cash provided by the life insurance?

As you consider the questions I've listed above, take time today to review your present life insurance coverage. Talk to your financial professional about reviewing your existing coverage to determine if
it's adequate to help assure a sound financial future for you and your family.

Remember, your financial lifeline is at stake.

I was talking with a mortgage banker today about possibly refinancing out of my own mortgage loan if rates go down. After we ran through that, he told me a story about a friend of his who thought he had his estate planning all worked out. Turns out there was a snag, and one worth mentioning.

First, you know I'm big on having a will.  A will is the first step towards creating a plan for the benefit of your heirs. A will can accomplish some important goals:

•     Naming your personal representative – someone to guide your estate through the probate process when you pass
•     Naming a guardian to watch over your minor children
•     Distributing your personal property according to your wishes

With a will, you make these important decisions. Without a will, the state makes these decisions for you.

But you need to plan it right. My mortgage friend told me the following story to prove that point:

Unhappy with his past investment performance - and skeptical of his adviser's intentions -- "John Doe" moved his accounts to a new adviser.

That's all well and good, But did John Doe take the time to also check his will?

In my friend's story, John Doe didn't do that. That led to the realization that, although the guy's investment accounts were reinvested to his satisfaction, the prior (ineffective) adviser would still take over management when John Doe  passed away.

That would have left his heirs with an untrusted adviser who he thinks made unethical, commission-driven investment choices," my friend said. "The lesson to be learned is to review and update your will regularly."

A wise point, and a good one.

Any business owner worth his or her salt knows that time is as much a commodity as widgets or washing machines.

So when an opportunity arises to save some time -- and maybe some money -- a lot of small business owners will sit up and take notice.

The tax season may give them just such an opportunity.

According to the Conference Board, more people are electing to file their taxes online, apparently with speed and transparency trumping any security concerns on the part of filers. The Board interviewed 10,000
Internet users for its study.

The Conference Board reports that in 2007, about 39 percent of tax filers will file their 2006 federal taxes online. That's up from 28 percent in 2004. Make no mistake, filing one's taxes online is big and  getting bigger. About 65% of taxpayers elected to file their tax forms online for three or more consecutive years. Almost 50% of taxpayers have been filing online for more than five years, says the Conference Board.

"Speed, convenience and choice are compelling an increasing number of consumers to toss their pencils and papers and file their federal taxes electronically," says Lynn Franco, director of the Conference Board  Consumer Research Center. "Whether using professional tax services or do-it-yourself software, electronic filing continues to grow year after year. And, by far, direct deposit is the preferred refund method. This  year's ability to split refunds among up to three accounts is yet another choice that should broaden the appeal of electronic filing."

Just because more Americans are filing their taxes online doesn't mean  that they're not getting professional help to do so. The study reports that among online filers consumers, about 40% plan to use a professional tax service. The Board also reports that the amount of online filers using IRS e-file has declined since 2004, "as the pool of  eligible filers has likely shrunk due to increased complexity in returns and as more alternatives become available."

What really interests me about the study is the fact that Americans are finally getting over their security fears in using the web for personal  financial issues. The study reports that Americans are less concerned abou  security when filing taxes online. Today only 43 percent of Internet users are "extremely" concerned about filing taxes online, down from 52 percent in 2004.

Getting money back faster seems to be a big issue, too. In 2006, 70 percent of online tax filers elected to snag their refund by direct deposit while 18 percent opted for the proverbial check-in-the-mail. What was the main reason for those opting not to file online? Reason number one is that most taxpayers do not do their own taxes (34 percent). Coming in second (23 percent) were concerns about personal information on the World Wide Web.

We've spent some time on this blog talking about generating financing for your business. But what do the decision-makers - - the banks, the credit lenders, the Small Business Administration, and other financial organizations -- look for when deciding whether or not to lend you their money?

Actually, it's not all that complicated. The information below will give you a heads up on what more traditional financial institutions will ask for when you apply for lines of credit or loans through the Small Business Administration (SBA.). The SBA, by the way, has an excellent checklist of documents needed for its loan process.

For both types of common loans (short-term and long-term), your business (or business-to-be) requires the following documentation before your loan request can be evaluated:

• A business profile. This is a written statement.  A document describing the type of business you own, and includes details, such as annual sales, number of employees, length of time in business and specifics of ownership.
• Loan request. This is a description of how you want the loan funds to be used. This statement should include purpose, amount and type of loan.
• Collateral. This gives the lender a description of the collateral you’re offering to secure the loan, including equity in the business, borrowed funds and available cash.
• Business financial statements. These are complete financial statements for the past three years as well as well as current interim financial statements.
• Personal financial statements. These are statements of all the owners, partners, officers and stockholders who owning 20 percent or more of the business.

Be sure that your financial statements are carefully prepared and up-to-date! The strength and accuracy of your financial statements will be the primary basis for the lending decision to go in your favor, so be sure that yours are carefully prepared and up-to-date. 

The most important documents in your financial statements are:

• Balance sheets from the last three fiscal year-ends.
• Income statements revealing your business profits or losses for the last three years.
• Cash flow projections indicating how much cash you expect to generate to repay the loan.
• Accounts receivable and “payable aging,” breaking your receivables and payables in to 30-, 60-, 90- and past 90-day old categories.
• Your personal financial statements from you along with statements from your business partners listing all personal assets, liabilities and monthly payments, as well as your personal tax returns for the past three years.

What to include a loan proposal…in a nutshell:

• Business name and address
• Names of principals and their social security numbers
• Purpose of the loan---be as specific as possible about what it will be used for? (salaries, equipment, etc.)
• Amount of money you need: EXACTLY

Business description:

What kinds of business?

History?

How many employees and current business assets do you have?

Management:

Offer a short description on each principal…including background and education, experience, skills and accomplishments.
Market:  Demonstrate knowledge over your product(s) and where it fits in the market(s). Competition and role in the overall marketplace
Sketch customer profile and how you business can fulfill customer needs.

How banks will review your loan proposal (in a nutshell)?

1. First and foremost, they want to see PROOF they will be repaid
2. That means they'll investigate your credit
3. Outside sources of funding (at least 25-50%) will strengthen your case
4. Sufficient experience to pursue business enterprise
5. Suitable cash flow for business to run

The key? Be prepared and have both your documents and financial story in order. If so, the road to solid financing is wide open.

Unless you're independently wealthy, you'll probably face the most common (though hardly unsolvable) problem when you start up your business. That is securing a reliable cash flow and obtaining financing sources. Big questions and daunting procedures, such as "how do I apply for a loan?" or "what is a credit line?" or "what if I'm a victim of discrimination?" could discourage and frustrate the most enthusiastic of new business owners. But, they don't have to hold you back.

If you do your homework and are prepared for the inevitable difficulties of this complicated process, you'll be well ahead of your competitors. That's a good thing - - after all, there is only so much money to go around.

Where should you start?

A good rule of thumb here is to discount nothing (and no-one) in the preliminary brainstorming stages. Financing can come from a vast number of people and institutions, including your family and friends. However, in all cases, you should strive to make the process wholly professional and for obvious reasons always respect the money (and time) of others.

Helpful hint: It's best to pursue parallel funding from several sources, including your own savings, family and friends, potential investors and bank loans. So it makes sense to hire an attorney to help you with payback terms, or you can draft your own terms of agreement to re-pay any loans.   One thing is certain: Disputes over money can make or break a relationship!  So you'll also want to look as professional (re: prepared!) as possible, and an attorney can help you there.

Here are some more specific suggestions about where to start looking for the money:

• Personal Savings: Use your own savings to finance many up front costs. Saving up over the years can give you a head start and if available, is obviously the best option when looking for funding sources.
• Family members and friends. Here's a group of your most staunch supporters and loyal allies. These familiar individuals are far more likely to loan you money without interest and/or at a far lower rate than a bank. (You'd be surprised how many companies started with help from personal friends or family.) However, there also the same people who might take you a little less seriously, maybe they even knew you when you were in grade school. That's all the more reason to present them with a re-payment plan that's satisfactory along with a neatly organized business plan. You don't want to lose their friendship and loyalty.   It's best to approach your family and friends with a list of funding options. Don't play with anyone's money, including loans from your mother or father.
• Angel investors or Venture capital firms: Be forewarned. These investors are usually more inclined toward large experienced businesses, but that doesn't mean they won't sometimes take a calculated risk on a Really Good Idea and an impressive new business owner.
• Finance Companies: According to the Small Business Association, finance companies are consistent backers of new small-sized companies.  Benefits of using a finance company include their flexibility and longer-lease times. They can also provide you with funding more quickly. On the other hand, finance companies charge much higher rates.
• Banks and credit unions: This route requires you to write an effective loan proposal. It's helpful to remember exactly what banks are looking for, so you don't waste time and you know what to emphasize in your application for loans.

In the next small business blog, we'll go into more detail on what banks and lenders look for when deciding to fund a new business venture -- or not.

There is no law that says Americans HAVE to spend their returns -- but too many of us act like we do.

There is a better use for that money, as two tax specialists point out.

Margaret Van Brunt, assistant dean of the Rohrer College of Business at Rowan University, and Rick Marmon, associate professor of accounting and finance, both certified public accountants, estimate that 75 percent of taxpayers get a refund, which in 2005 averaged more than $2,000. “A cash windfall like this, of course, has Americans across the country struggling with tough decisions, like whether they should buy the plasma TV or book that last-minute cruise. As tempting as it may be, consumers would be far better off resisting the temptation,” Van Brunt says.

Van Brunt and Marmon have a better idea on what to do with your tax refund -- actually, they have five of them:

1) Avoid the refund-anticipation loan. Don’t borrow against your expected refund. Despite numerous warnings by consumer-watchdog groups and reams of bad press, refund-anticipation loans — which allow taxpayers to borrow against their expected refund — continue to be a popular waste of money. The appeal of these loans is that they deliver cash in a day or two, via a tax preparer, who's repaid when the real refund arrives. The problem with these loans is that they don't come cheap. Typically, borrowers pay about $30 to $165 (costs vary, in part, by the loan amount) for what typically turns out to be roughly a 10-day loan. The cost usually includes administrative fees as well as interest charges, which can be downright usurious. That's not the only problem. If, for some reason, the refund is held up or denied by the IRS, you still owe on the loan.

”We advise not to shrink refunds before they even arrive. For those with a real need for fast cash, a better option is simply to file electronically and have the refund deposited directly into a checking or savings account. Opting for this faster treatment has no cost and should deliver the refund in about 10 business days, rather than the four to six weeks it takes via snail mail,” says Marmon.

Some people take out a refund-anticipation loan as a means of paying for their tax preparation. The tax preparers encourage this by allowing the taxpayer to deduct the cost of preparation from their refund-anticipation loan. (In other words, the loan includes the cost of the tax preparation, which is then covered when the refund arrives.) But these days, just about anyone can file his or her tax returns for free online through the IRS Web site.

2) Save your refund. Everyone should have a bit of extra cushion in his or her budget in case of the unexpected, such a job loss, illness or injury. A tax refund can help build that cushion. An emergency fund should consist of three to six months' worth of living expenses held in a cash account like a money-market fund. Unfortunately, with interest rates so low, people earn next to nothing on their money. But just knowing it's there can be a source of comfort when times get tough.

3) Contribute to an IRA. If you invested a refund in a tax-deferred account earning 8 percent annually, you could double your money in less than 10 years. 

And an IRA — particularly a Roth IRA — is a great way to do it. With a Roth, there isn't any sort of upfront tax break (like there is with a tax-deductible IRA), but qualified withdrawals taken after age 59 1/2 are completely tax free. Van Brunt and Marmon recommend giving up the deduction and going for the Roth — which is all yours for the rest of your life. You don't have to share it with anybody. And remember: There's still time to make a 2006 contribution (the deadline is April 17), as well as one for 2007.

4) Pay off debt. These days, the average household with at least one credit card is carrying more than $9,200 in credit-card debt, according to CardWeb.com. Tackling high-interest credit-card debt is one of the smartest ways to use a tax refund, and doing so provides an immediate return on investment. (And most likely at rates that would be difficult to duplicate in today's stock market.)

5) Consider your children. If college costs continue to rise at their current pace, four years at a private college 18 years from now could cost more than $320,000. Needless to say, people with children need to start saving early. Using a refund to contribute to a 529 College Savings Plan or a Coverdell Education Savings Account is a great way to do it.

Both of these accounts offer tax-free withdrawals for qualified college costs. With a Coverdell Education Savings Account, annual contributions are limited to $2,000 (per beneficiary), and income limits do apply. The beauty of a Coverdell Education Savings Account, however, is that, like an IRA, you can invest funds any way you like.

Good ideas all -- and certainly better than buying that racing boat or that Aspen time share you've had your eye on.