Girl About Business

I'm listening to the radio this morning (HOT 102.7), and heard something about the Detroit Public School system. Being a student of DPS for 11 of my 13 years of public schooling, I wanted to hear what was going on. I mean, if you know anything about DPS, you'd know that they've been shutting down schools left and right. The drop out rate is 75%... yes, that's the DROP OUT RATE! Which means that the graduation rate is only 25%! How ridiculous!

Anywho, to the point of this blog. So the district has an Emergency Financial Manager, Robert Bob (Bob Bob, eh?) who has been disclosing discrepancies in the DPS budget since he was appointed.


Here are some of the new things that he recently discovered:


The district has been spending money that could have been used to keep some of the schools running. The total amount of unnecessary expenses totals about $2.1 million each year.

• This $2.1 million has been spent on health insurance for ineligible dependents, 160 Blackberry phones, 11 unused motorcycles, 97 two-way phones, inappropriate loans to school officials, and a whopping $1.7 million paid to the City of Detroit for taxes when the district is tax-exempt!

More bad light shone upon the city of Detroit. But my philosophy is 'better now than never'. Robert Bob is doing a great job!

I know everyone has been in a bit of a pickle. Low on cash, bills are due, gas prices are rising, etc. And those paycheck advance places sound quite appealing... you know, "we'll give you money and you can pay us when you get paid"!

I won't lie; I've thought about stopping by one of those places. Here are a few times when it crossed my mind: about 3 months ago I had to deplete my entire savings to pay for a car repair. Another instance is when my employer somehow missed me when doing payroll. Then, I didn't have much in my savings, so I could barely live for those 2 weeks that it took to issue another check :-( So yes, the thought definitely crossed my mind!

An old friend of mine used to go to one of these places, and it didn't seem too bad. Kinda like a very short-term loan. He'd take out $500, and would pay back around $530 when he got paid again.

Being the accountant that I am, and now taking a finance class, it has come up in my textbook. Let me explain to you why I will NEVER go to a cash advance establishment. Hopefully this steers you away as well (I'm not trying to put anyone out of business, but come on!)

First off, you need to understand the 'time value of money'. So let me give you a brief synopsis. A dollar today is not the same as a dollar in the future; you know, inflation and all of that blah! Hence, we need to use the 'time value of money' to value what some future payments are worth today, or what some present amounts of money will be worth in the future. Here's the equation (sorry for getting mathematical with you all, but you'll see where I'm going soon!) for the future value of money:

FV = PV x (1 + r)^t

Now here's the problem: you walk into one of these cash advance places, and you want to take out $150 for incidental expenses; just to hold you over until the next pay period. In exchange for this $150, you write the establishment a check for $180. The agreement is that you'll pay back the $180 in 15 days, and this doesn't seem like a large amount of cash to repay. I mean, it's only $30! But at what rate are you paying for this money? How much interest are you paying? We'll use our equation:

So, the FV is the amount you're repaying which is $180, PV is the amount you're getting today which is $150, t is equal to 1. Let's plug and chug:

$180 = $150 (1 + r)^1 ----> divide both sides by $150
1.20 = 1 + r ----> subtract 1 from both sides
.20 = r or 20%

20% doesn't seem so bad, does it??? But remember this is for borrowing the money for only 15 days! What does this mean??? That the annual percentage rate (APR) is RIDUNCULOUS!!!

APR = .20 x 365/15
APR = 486.66%

Yes, you read right! That measly 20% for 15 days equates to 486.66% a year!

So, let's see: you borrow that same $150 on January 1st, 2010. If you don't make any payment until December 31, 2010, this is what you'll be paying:

PV = FV/(1 + r)^t
$150 = FV/(5.86666)^1
FV = $879.90

Yes, that's right, you'll be paying back nearly $900 just for borrowing $150!!!

That makes me think twice about credit cards too, and no... I won't be stopping by any of their convenient locations. $900 just about covers one class at my university. NO THANKS!

Over the past 6 or so months, I've realized that I have a niche for event planning. It wasn't until last night that I was able to actually see the results of my wonderful efforts.

I spent the last 4 months planning our sorority's annual Amethyst Ball, which is always a lot of fun. But this event definitely tested my willpower as an emerging Event Planning Specialist. I decided to take on the title of Special Events Coordinator with the chapter during the beginning of the school year, and my duties include planning the Founder's Day Brunch, Talent Show, Semi-Formal, Alumnae Ceremony, Formal and the annual Retreat. Who would have thought that Formal would be so daunting???

I'm going to lay out the steps that I had to go through, and any problems or glitches that occurred. For anyone seeking to go into event planning, this is for you.

Step 1: Come up with a budget. Figure out your assets, what you can afford, etc. Remember to keep a cushion for incidental expenses.

Step 2: Research and visit venues. Guesstimate your guest list. Compose a list of everyone that you plan to invite, and plan for the highest guest #. Therefore, if you're list is about 50 guests, plan for 50 even though you're certain that 50 won't show. Better safe than sorry.

Step 3: Narrow your search down to 2 locations. Decide on dinner details; will there be plated dinners or buffet-style? Will there be a cash bar or open bar? What brands of liquor will be served?

Step 4: Finalize all of the nitty-gritty details of your event: date, time, location, colors, theme, etc. If you are paying for the event, now is a good time to look at your budget. Are there any adjustments that you need to make? Will your budget actually accomodate your expenses? Are you working outside of your means? Will this event put you in the red when it's all said and done? These are all things to consider. Be sure to tell the event coordinator at the venue of your choice. They are usually great with working with budgets, and the last thing that they want is to lose business because they weren't flexible.

During step 4, you should also send out invitations to the people on your guest list. This will give you a better estimate of attendees. Add an RSVP date to the invite, and send out response cards with the invites as well. If you plan on having different dishes available for guests to choose from, you'd like to know this information ahead of time. Request payment and response cards at the same time.

Step 5: Collect funds from attendees (if event is being paid for by guests). Pay any deposits needed, and continuously consult your budget. Make sure you're not overspending for certain items. Have important dates ironed out: final payment due date, meal selection due date, head count due date, last day to add guests, etc. These are all vital to planning any event. Here's why: You're planning an event 3 months away, which requires a $500 non-refundable deposit 60 days prior to the event and the final payment 7 days before the event. However, many of your guest have yet to RSVP, which means that you haven't received their payment. This could cause you to lose your date, and even your deposit of $500. That's $500 down the drain because of improper planning... We definitely don't want that to happen.

Step 6: Make payments on time, and in the correct amounts.

Step 7: After your event, thank your guests and the venue for hosting your event.

At this point, your event should be smooth sailing... Post your event planning glitches here and I'll provide some insight/advice as to how to avoid these problems or ways to fix them!

I didn't want to give it all away in the little 'about me' section allotted on the side of the page, so I'll dish out more of who I am and what I do... HERE! I'll also let you ponder as to my identity, just for a minute before I reveal my picture to the blogosphere.

In three words, I'm a student-intern-girlfriend! Therefore my days consist of reading, working, and hanging out with my boyfriend. So, here's some history behind all three of these fascinating facets of my life.

I am a SUPER Senior :-O, yes... I've turned a 4-year degree into a 5-year degree... maybe a 5.5-year degree. I am majoring in Accounting, and I used to question that decision quite often. Don't get me wrong, I love the field and everything it has to offer. I love learning about EVERYTHING accounting related. But I think we all go through that phase where we wonder, "do I really want to do this for the rest of my life?" Well, I went through that phase last year, and to say the least I got over it.

I currently intern at AH (I won't disclose the proper name of the company), in the accounting department. I do a bunch of data entry, posting journal entries, filing, analyzing expenses, and such! It's a desk job, I LOVE DESK JOBS believe it or not. I've been there for a little over a month, and frankly I wouldn't mind if they asked me to stay full-time after the summer. That would make my LIFE! I sit in an office with no window... just a HUGE mirror to look at myself occasionally when I'm bored. I'd love a window though, even if it only looks at the parking lot!

As far as my relationship, I won't divulge too much. I've been with my boyfriend for almost 2 years, and things are going great. End of the story! You'll get the juice down the line... if you keep reading :-)

I've spent the last year of my life thinking of ways to make more money, move out on my own, and be a well-rounded woman that will be productive in society. So, I've started small. As far as my career goes, I've been teaching myself how to use a few programs that will add a little UMPH to my resume. I have also taken on a few volunteer opportunities. I was a part of the inaugural blogging class at my University, therefore I didn't have too much time to embark on my own blog. They also asked me to come back, so KUDOS to that! I have also been given the title of Volunteer Assistant Accountant with Reach One Teach One, and I'll be giving a little of my extra time to Looking For My Sister.

So what will I really be blogging about? A combination of everything that matters to me... issues with school, finding work, relationship drama (or lack thereof), fashion, friendship, fun, beauty... just about EVERYTHING! But mostly, I'll blog about my daily journey to becoming the woman that I want to be.

Stay tuned!