Dear Neighbor:

There are certain incidences in our life and our history where it seems like time freezes and we have a mental “snapshot” of where we were, what we were doing, who we were with when witnessed or heard of this event. For many, the recent tragedy of September 11 was such an event. By contrast, witnessing President-Elect Barack Obama win the General Election to become the 44th President of the United States of America represents one of those “freeze moments” that will remain an indelible impression forever in our minds. It was an event of tremendous anticipation, joy and excitement.

President-elect Obama has inspired a “hope movement” and will be a great leader for this country as our next president. However, if we are going to make our democracy relevant and our communities vital, it is going to require ongoing, community effort. So my hope, my prayer and my request is that, here in the local community, we continue to create an environment where we can identify our priorities and solve the problems of our communities. Obama’s declaration that “we are the change that we’ve been looking for” and that “change is from the bottom up not the top down” should be a clarion call for all, particularly those who live in urban communities such as the great neighborhoods of Crown Heights, Prospect-Lefferts Garden, and Flatbush.

While the challenges ahead of us may seem daunting, the possibilities of what we can achieve together are limitless.

I am anxious to hear from you as to how we can start creating change from the bottom up in our local community. Please email me with your thoughts at CamaraK@assembly.state.ny.us.

The recession of 2000- 2003 and the recession started in 2008 both could have been avoided. If the people would have been educated about the right time to invest in stocks they would have avoided being hurt by the internet bubble bursting or not diversified in company stock (such as the employees of Enron who lost the majority of their retirement savings because they were heavily invested in their company stock).  As stated previously, the best defense against predatory lending is an educated consumer.  We have limited control over the actions of the government outside of voting and petitions.  We have even less control over the private sector.  We have complete control over the knowledge that we seek and apply within our lives.  This is the solution to our economic success as individuals…knowledge and the application of knowledge.

2008 was a year that many of us would choose to forget financially.  However, we would be foolish to not remember to learn from those mistakes and apply this new knowledge in 2009.

Many are excited that we have a new President in Barack Obama.  Let’s celebrate by applying his message of a “bottom-up” approach to bringing back the greatness in this country. Greatness defined in part by financial prosperity for all.  This can be done if we each do our part to prepare the finances in our households.  If each of us is disciplined enough save more we spend, consume less than we produce, and research thoroughly before we invest we will see our economic futures take a turn for the better once again.

Pre-Paid Debit Cards – These are the biggest scams in the book! Why do you have to pay so many fees to have access to YOUR money!? These are NOT a suitable replacement for opening your own bank account where you can have a FREE debit card. If you cannot open a bank account then you need to fix problem that is causing you to not be able to open an account…not seek out an expensive/wasteful alternative!

Check Cashing Facilities – Why don’t you have your own bank account where you can cash your check without paying excessive fees just to get YOUR money?

Suggestion: If you cannot open a bank account, join a local credit union with a credit program that will allow you to re-establish your credit and work on correcting the bad habits causing you to tarnish your banking record (bouncing checks, overdraft, etc.).

Rent-to-Own Furniture and Appliance Stores – Ownership is power. Owning a home is a commendable goal, but not owning your own furniture is a disgrace! If you cannot afford to purchase an item that is sold at rent-to-own furniture and appliance stores -- SAVE UP! DO NOT purchase an item on credit where you will end up paying more money because of interest! Excessive consumption is bad, but paying interest on excessive consumption is destructive!

Suggestion: If the item is not a necessity, save up your money until you have enough to purchase the item. Saving is not easy but where there is a stream of money, there is an ability to live beneath our means to provide for your household and savings. Set up a household budget and provide more oversight to your household cash flow.

Cash Advances – These are legalized loan sharks! They provide the highest and most volatile interest rates available. If used through your credit card or through a provider you will have to pay a hefty premium for those funds. Do not use them…period!

Suggestion: You should never wait for it to rain before purchasing an umbrella, purchase a smoke alarm after the fire hits, or consider saving extra money when the need arises. Think proactively by opening a high-yield savings account today. In this account you can begin a project to save at least three to six months of living expenses in case of an emergency.

ATM Withdrawals – Since when did it become okay to make someone else rich because we cannot walk or drive a few extra blocks? Pennies add up to dollars and we need to treat our hard earned money with more respect. We clinch our pockets when we see a homeless person asking for a quarter but we gladly give away $2.00 to $5.00 to a bank because we refuse to search for our own ATM where we pay no fee…what does that say about our values in this society?

Suggestion: If ATM accessibility is an issue to you, open an account that has plenty of ATM machines in your area. Go online to become familiar with all your banks ATM locations in your area and plan ahead by having enough cash on your hands when going out

Mortgage Lenders – In this capitalistic society we have seen much greed and despicable actions in the quest of a dollar. Why is it that we are so surprised when we find out that there are mortgage lenders that exist who care more about a dollar then about your financial well being?

Suggestion: Predatory lending is a detestable act and should not be condoned. However, ignorance should not be condoned either. For many in this nation the home is the largest investment in their life, do not do it without proper education. Hire a good real estate attorney to assist you to explain fully the documents before you sign. Hire a good financial planner to assist you in putting together a home budget because the bank pre-approval system will not do as good of a job as you in discerning your lifestyle and true level of affordability. If you don’t have the money for a planner, talk it through with a good friend or an unbiased party who has also gone through the process. Don’t rush the decision!

Fast Food Places – It has been said that you can find out what one values by looking at his checkbook. You can see how much one values their life by looking at their diet. Just because food is convenient, does not mean it is good!

Suggestion: With high blood pressure, hypertension, and diabetes becoming an increasing problem, it is paramount that we watch what we eat. This is a key financial literacy issue because the largest cause of bankruptcy is medical bills. Talk to a nutritionist to prescribe a diet that is fit for you, exercise regularly, and make sure that you take care of your body…you only get one!