Author Archives: Darold Hogan

The mental game

The pandemic has caused more stress levels about work, health, money, relationships, and other parts of life. The economy and world events and constant inflow of information on social media are causing a never-ending flood of stimulation. All of these factors and other underlying situations we find ourselves in will cause us to feel drained mentally, physically, spiritually, emotionally and this can cause us to be off-center in whatever it is we do in life. Unlike a cold or flu, one cannot always detect when we’re in need of a mental break, and keeping a strong mind is paramount in today’s times.

In the world of customer service and sales, there is constant switching of gears and situations that our minds must figure out in order to get through the day. I personally have my own ways to help me stay on top of my mental game for what I do for a living.  There are numerous ways to keep your mind functioning in tip-top shape but I will highlight some of my favorite methods in hope that you can see how they work for you or find some of your own.

Method 1: Physical exercise

I am a firm believer in having a healthy body. Gym or no gym I have a workout plan I utilized that yielded me good results. It is scientifically proven that exercise has numerous benefits such as benefits to bone health, energy levels and gets the blood flowing to wake you up more before you head to the shop, office, or wherever you work. Utilize various workouts from cardio, plyometrics, yoga, powerlifting, etc. no matter what keep moving and work that heart rate up. Your body will thank you for it.

Method 2: Remembering your why and positive self-talk

Goals are achieved by remembering what got you there and sticking to them. Maybe your goal is to close a million dollars in sales deals, win a sports competition, build a business. Whatever that goal is, remember to keep in mind WHY you are doing it. Is it to make a better life for yourself and your family? Is it to put your name in a record book for athletics? Is it to be the top salesman for your company to eventually become a sales manager? Keep your why in front of you and you will be able to keep onto your motivation to keep pressing forward. In conjunction with this, positive self-talk will help encourage you to keep up the great work. I recall a time in my childhood when my father would have me stand in the mirror and proclaim that “I am somebody, I am successful, I am capable” I would do this daily (and I still do to this day) and it would reinforce that no matter what I have what it takes to be successful in whatever I put my hand towards. These help with shaping confidence and instilling it deep within you. Even when you make a mistake treat it as a learning opportunity to improve, failure is fuel for eventual success.

Method 3: dealing with opposition (aka haters and doubters) are secret fans and blocking out excess noise

Focus is important in keeping your mental game in optimum efficiency. In life, you will have opposition and people who may prove to be naysayers and detractors. In life, there will be a constant conversation one any and everything and sometimes you might be the topic of conversation. It is important to block out the distractions that will take you off your path to achieving your goal (destructive habits/behaviors, associating with the wrong crowd, etc.) and forge ahead. There will be those that talk about you in the pursuit of your goals, give them something to talk about once you accomplish the goal you set out to accomplish. I am a believer that hecklers and naysayers are secretly a fan deep down somewhere inside and if you have some feel free to rejoice. To quote Winston Churchill “You’ve made enemies? Good. That means you’ve stood up for something sometime in your life.”

Method 4: knowing when to take a break and when to ask for help

It is important to be able to take a break as I have highlighted once before. I have learned that you cannot be switched to “on” 24/7 because our minds are like our bodies, there is a need for rest. Without taking a break (via a few minutes away from the work, taking that lunch break, going on vacation, or taking a day off) there is a risk of burnout. When burnout happens, it can hit like a truck and derail your ambitions to accomplish your goals. I believe in taking at least one personal day per month if I already don’t have a vacation planned out to give myself time to take care of myself and other matters of business if needed. Take time out to get a massage, cook a home-cooked meal, spend time with your loved ones or just read or spend time outdoors. It is also important to know if you get overwhelmed it is fine to ask for help. In our culture, we tend to neglect our vacation and sick time to take care of ourselves and we are prone not to ask for help and just try to take it all on alone. No man is an island, no one individual can make a car or even a pencil. It is fine to ask for help at work, with loved ones, or if needed professional help via a therapist.  It is ok to recognize that you need a break and need a second to breathe o need a little help. To continue to perform at high levels athletes need trainers to keep them sharp and recovery methods to keep their bodies in top form, the same applies for us as individuals.

I have shared some of the different ways that you can stay on top of your mental game and keep yourself in top form when getting to where you want to be in life. There is no one way to achieve having a better warranty on your mental health and these methods (and others) may vary in terms of your results. I encourage you to find ways that work for you if one doesn’t work for you. I hope that you can take what I have brought forth and use it to better your own mental state to stay sharp. Until next time dear readers, excelsior.

A little surprise

I am a firm believer in moving in silence. I keep my best work close to the chest. I have been working on a small project of mine for a little while and I have been waiting for the right time to share what I have been up to: I am officially a published author!

This is a short read but I am a believer in quality over quantity. I wanted to highlight some of my own life experiences during my initial foray into the corporate world. I elected to highlight my post college search for my first full time position and the lessons I have learned during that time. Originally, this was wrote in a journal format as I went along with my search. I had to make some modifications to the formatting to make it less like a journal and more like a guide with lessons Iearned during this point of my life.

I was quite nervous when the time came to publish but when I got the initial proofs I couldn’t help but to smile like a proud parent. This is the first work I’ve completed and I have more to come in the future. I have attached a link to find my work on Amazon here for those who would wish to see my latest work.. In the meantime, stay tuned for my next posting. Until the next time my friends, excelsior!

The wonderful world of refinancing

In the current landscape, refinancing is a useful tool for one’s financial journey. People refinance for a variety of reasons.  Many things such as home loans, car loans, student and personal loans can be refinanced. Let us look at what all goes into a refinance.

A refinance, or “refi” for short, refers to the process of revising and replacing the terms of an existing credit agreement, usually as it relates to a loan or mortgage. When a business or an individual decides to refinance a credit obligation, they effectively seek to make favorable changes to their interest rate, payment schedule, and/or other terms outlined in their contract. If approved, the borrower gets a new contract that takes the place of the original agreement. Borrowers often choose to refinance when the interest-rate environment changes substantially, causing potential savings on debt payments from a new agreement.

Consumers generally seek to refinance certain debt obligations in order to obtain more favorable borrowing terms, often in response to shifting economic conditions. Common goals from refinancing are to lower one’s fixed interest rate to reduce payments over the life of the loan, to change the duration of the loan, or to switch from a fixed-rate mortgage to an adjustable-rate mortgage (ARM) or vice versa (in regard to mortgages in particular). Note that during a refinance of a consumer loan (auto, personal, etc.) there are typically no closing costs associated with the refinance process unlike most mortgage loans

Borrowers may also refinance because their credit profile has improved, because of changes made to their long-term financial plans, or to pay off their existing debts by consolidating them into one low-priced loan. Changing interest rates in the economy are moving factors that people look for when shopping around for places to refinance. There must be a new or existing loan for there to be a refinance.

There are several types of refinancing one could take advantage of for their financial situation. One such refinance is a rate/term refinance for a better rate and a more advantageous term for repayment. Another is a cash-out refinance when your auto has more value (commonly referred to as loan to value or LTV) to pull a certain amount of funding against the worth of the vehicle. Another is a cash-in refinance where an individual can place money down to get to their ideal payment, rate, or term. Lastly, one could go for a debt consolidation refinance to help put their payments under one roof and one easy payment.

There are many benefits to a refinance such as lower payments, rates, and terms. Additionally, there is the convenience of consolidation of payments and an influx of cash for cash-out refinancing requests. There are some drawbacks to a refinance. One such drawback is if there is a movement back to the original term there is more interest to be paid during the life of the loan, shortened terms may increase payment potentially as well. If interest rates drop, you won’t get the benefit with a fixed-rate mortgage unless you refinance again and you could lose equity in your home depending on the mortgage refinance.

Refinancing is a powerful tool that can benefit you in the long run if done correctly. During my time in finance, I have seen many practical applications of refinancing that people use to their advantage. Until the next time dear readers, excelsior!

How sufficient is your credit?

A message on a credit report that can pop up is “insufficient credit”. This is a message commonly found for those who are young, operated primarily with buying things cash, or perhaps haven’t taken out a form of credit in a very long time. This isn’t necessarily a good or bad thing, but rather a good launching point towards developing health credit.

When applying for credit, lenders are only allowed to use a specific set of criteria to evaluate an application. Insufficient credit history indicates that the applicant doesn’t have enough accounts with a long enough payment history to approve an application. Banks, cell phone companies, and utility companies also look at this information when you set up a new account. As an applicant applies for bigger loans, lenders want to see that an applicant can handle multiple accounts responsibly. If someone only has a single credit card or too few accounts overall this could be a reason for rejection on a credit application.

On the other side of the coin, one wouldn’t want to go opening too many new accounts in a short time to build credit. On average it takes a minimum of 6 months for a new trade to make progress on an individual’s credit rating. Opening too many would be classified as an escalation of new debt. This could also be a reason to deny an applicant on a credit application. On another note, if there isn’t an update in activity (such as a credit limit increase or a new line of credit) for a substantial period, an individual’s credit could become stale and outdated causing it to be insufficient again. Keep in mind that the age of active credit lines also helps in building a score over time. These trades could be a line of credit or a credit card primarily.

Updating the personal information in one’s credit history is relatively easy. Building up one’s credit history takes more time and credit experts emphasize that there is no quick fix to a credit score. Experts typically recommend a few ways to help keep things in a positive light for one’s credit: 1) pay all bills on time to avoid them going into a collection action 2) opening a secured credit card or secure loan of some sort to start a history 3) reporting non-debt obligations If your lender uses a scoring system that counts that among other ways. Some lenders will overlook an insufficient credit history if the applicant is strong in other areas such as in debt-to-income ratios and stable proof of income to show how one could make payments.

Keep in mind that another common misconception is that checking accounts, debit cards and credit union accounts do not build credit. The checking account is designated for expenses and the debit card can be run as “credit” but is not truly linked to a credit line. Credit union accounts give you access to the credit union and all its services such as lending and credit building programs.   

Having insufficient credit can be difficult and confusing at times, but it doesn’t have to be. Feel free to reach out to your local financial experts at your financial institution and ask for ways to help establish a credit history for yourself. It will take time but the result of a healthy score and better rates are worth it. Until the next time dear readers, excelsior!

Debt vs income part 2: the less secure edition

Last time we discussed what the debt to income ratio was and how it effects one’s overall financial picture. This time we will discuss another ratio that effects your financial picture. The unsecured debt to income ratio is another important piece to understand your financial situation.

Unsecured debt is different from a secured debt as the debt isn’t tied to a piece of collateral such as a car or house. Types of unsecured debt would be credit cards, personal loans, lines of credit, etc. As such these debts are typically assessed higher interest rates than secured debt because of the risks associated with them in the event of a default of payment from a borrower or bankruptcy risk if the borrower ventured into this route.

The unsecured debt ratio (UDTI) equals the total of unsecured debt divided by the total annual income, multiplied by 100, which converts it to a percentage. For example, say Sarah carries $8,000 of credit card debt, $12,000 in personal loans and her annual income is $80,000. Divide the total unsecured debt of $20,000 by $80,000 to get 0.25. Then, multiply 0.25 by 100 to find that Sarah has an unsecured ratio is 25 percent. If Sarah increases her unsecured debt load her and her income remains the same her UDTI will increase. In the opposite scenario if Sarah’s income increases or her unsecured debt is paid down more her UDTI decreases.

Lenders don’t like to make additional unsecured loans to people with high existing unsecured ratios because that’s tacking on additional debt to someone who’s already overextended. Financial institutions often see unsecured ratios of above about 20% as potentially dangerous. When someone gets above 20 percent, the prospective lender might lower the amount it will lend or require the borrower to put up collateral. If the borrower exceeds 30 percent, they will likely encounter trouble just getting an unsecured loan, because lenders are concerned with the ability to repay and there is more risk associated with lending unsecured vs secured. It is ideal to be in a range that is reasonable for a borrowers existing debt and income level and to go beyond that could indicated many factors such as living off of credit cards and unsecured debt to a point where eventually it leads to an eventual endpoint of defaults, garnishments or legal actions to recoup losses from a borrower or even bankruptcy filled by a borrower who is unable to pay. None of which are a desirable outcome for the institution or the borrow to end up.

The unsecured debt to income ratio is an important snapshot of one’s financial picture in the eyes of a lender. It is important to know how it can help or hurt your overall credit and financial situation. I have included a link to assist in calculating your unsecured debt to income ratio as well. Please uses these tools to help with understanding where you are with your own debts to gain a firm grasp on what was covered today. Until the next time dear reader. Excelsior!

Debts vs income

From a credit perspective any things can be weighed in to determine how a lender can look at to determine eligibility for a loan. One such variable is what is called the debt-to-income ratio. This ratio is something that can determine your inflow vs outflow of money that you use for paying any debtor.

The debt-to-income ratio (commonly referred to as DTI ratio for short) is the percentage of your gross monthly income that goes to paying your monthly debt payments and is used by lenders to determine your borrowing risk. A low DTI ratio demonstrates a good balance between debt and income, while a higher ratio determines there is more going on behind the scenes.  The maximum DTI ratio varies from lender to lender. However, the lower the debt-to-income ratio, the better the chances that the borrower will be approved, or at least considered, for the credit application.  An ideal formula for determining DTI would be to divide the number of the total monthly debt payments (credit cards, loans, mortgages, rent etc.) over the total of gross monthly income (your income before tax and deductions). For example, if john owes $1200 in his monthly bills and his gross income is $2700 per month his overall DTI would be $1200/2700=0.44 or 44%. John has a more moderate debt to income ratio based on these figures.

Calculate Your Debt-to-Income Ratio – Wells Fargo

One can lower their debt-to-income ratio by reducing their monthly recurring debt or increasing their gross monthly income. Using the above example, if John has the same recurring monthly debt of $2,000 but his gross monthly income increases to $8,000, his DTI ratio calculation will change to $2,000/$8,000 for a debt-to-income ratio of 0.25 or 25%. Similarly, if John’s income stays the same at $6,000, but he can pay off his car loan, his monthly recurring debt payments would fall to $1,500 since the car payment was $500 per month. John’s DTI ratio would be calculated as $1,500/$6,000 = 0.25 or 25%. If John can both reduce his monthly debt payments to $1,500 and increase his gross monthly income to $8,000, his DTI ratio would be calculated as $1,500/$8,000, which equals 0.1875 or 18.75%. Ideally renegotiating interest rates, aggressive payment schedules including principal payments and generating more income through a second job or a side gig for other active or passive income are some ways that people have taken to rapidly clear up debt and improve their ratios

The DTI calculation in assessing the risk that a borrower poses to a lender in terms of their ability to repay. The lower their ratio (such as 35% or less as noted by an average between different lending companies and financial institutions) can be considered more favorable. Meanwhile a DTI of 36-49% leaves room for improvement and can be steered into a more manageable direction with proper education and action plans. For a DTI above 50% it is generally considered difficult for a borrower or spend or save as their money for unforeseen circumstances. The higher the DTI the more likely a borrower could be inversely impacted by any major financial event and presents more of a risk of default to a lender. The ideal situation for a customer and a lender is to be at a point where any new debt ought not to put the borrower or the organization doing the lending in an adverse situation that would harm the institution with a loss or damage an individual’s credit.

The Debt-to-income ratio is a commonly questioned concept for credit building and lending by consumers. I hope my summary of what DTI is and how it affects you will give you more insight to how to further gain more perspective on your own credit journey. For your convenience I have also included a link for a DTI calculator for you to plug and play with figures to see how your own DTI is faring. Until the next time dear readers. Excelsior!

Credit utilization

A common tactic utilized to build a credit history is typically acquiring a credit card of some sort. this along with other credit building programs begins one’s journey for getting into a more favorable credit range. Credit card usage is a factor that helps with establishing a score, but there are things about the usage that one must know.

A credit card is a revolving tradeline (a trade line that when it is used and repaid you acquire a certain amount of the credit back). Credit cards have a capacity of use that displays how much of the overall limit has been used in a specific period. Credit utilization measures the balances you owe on your credit cards relative to the cards’ credit limits. If you never use your credit cards and there’s no balance on them, your credit utilization would be zero. If you typically carry a balance on one or more cards, you are ‘utilizing’ some of your available credit and credit score providers will take note. Credit utilization is a key piece of your credit score puzzle. Both FICO and Vantage, two big credit scoring agencies, list credit utilization as the second highest factor they consider when determining credit score. If your utilization ratio is high, it indicates that you may be overspending and that can negatively impact your score. This utilization ratio, as a rule of thumb, is recommended to be around 30 percent or less and is calculated by the total amount of card balances vs the amount of available credit. This means not maxing out existing credit cards. This utilization ratio can be improved by a variety of methods including, but not limited to; paying down current debt past the minimum payment, consolidation of credit card debts, getting another credit card, getting a credit limit increase, or leaving open existing cards once they’re paid amongst other methods.

How Does Credit Utilization Work?

Now that you know how to improve your credit utilization, it’s important to keep track of your progress. Check your credit card balances monthly and keep tabs on your utilization ratios. Many card issuers offer balance alerts via text or email, making it even easier to prevent your utilization ratio from creeping up. Monitoring your credit score can also provide motivation to keep your utilization in check. This was a short lesson, but vital nonetheless. Until the next time dear reader. Excelsior!

Inquiring minds would like to know

The Difference Between Hard and Soft Credit Inquiries - Rich Money

Credit is a topic that has several different facets that make it up. One factor that makes up a credit score (as much as 10 percent) is an inquiry. An inquiry is the beginning stage of beginning a new line of credit and shows how one is looking to seek a new line of credit.

A credit inquiry is a request by an institution for credit report information from a credit-reporting agency. Credit inquiries can be from all types of entities for various reasons, but they are typically made by financial institutions. They are classified as either a hard inquiry or a soft inquiry. Hard inquiries are a key part of the underwriting process for all types of credit. Soft inquiries help credit companies to market their products and can be used to help consumers and are good for reviewing with customers/clients.

Hard inquiries are requested from a credit bureau whenever a borrower completes a new credit application. They are retrieved using a customer’s Social Security number and are required for the credit underwriting process. Hard inquiries provide a creditor with a full credit report on a borrower. This report will include a borrower’s credit and details on their credit history. These are typically displayed on a credit report for approximately 24 months before falling off. Hard inquiries can be harmful to a borrower’s credit score. Each hard inquiry usually causes a small credit score to decrease for a borrower. Hard inquiries remain on one’s credit report for two years. Generally, a high number of hard credit inquiries in a short period of time can be interpreted as an attempt to substantially expand available credit, which creates higher risks for a lender. Hard inquiries can be harmful to a borrower’s credit score. Each hard inquiry usually causes a small credit score to decrease for a borrower. Hard inquiries remain on one’s credit report for two years. Generally, a high number of hard credit inquiries in a short period of time can be interpreted as an attempt to substantially expand available credit, which creates higher risks for a lender, usually within a window of 14-45 days. For those unable or unwilling to wait two years and who are comfortable paying a small fee, one of the best credit repair companies might be able to get the hard inquiries removed from a credit report sooner. In some instances, hard inquiries also may be used for situations other than a credit application. An employment background check and a lease rental application are two instances in which a hard inquiry also may be required. In some instances, hard inquiries also may be used for situations other than a credit application. An employment background check and a lease rental application are two instances in which a hard inquiry also may be required.

Soft inquiries are not included in a credit report. These inquiries can be requested for a variety of reasons. Credit companies have relationships with credit bureaus for soft inquiries that result in marketing lists for potential customers. These soft inquiries are customized by the credit company to identify borrowers who meet some of their underwriting characteristics for a loan. Credit-aggregating services also use soft inquiries to help borrowers find a loan. These platforms require information about a borrower, including their Social Security number, which allows for soft inquiries and prequalification offers. Many lenders also will provide a borrower with quotes through a soft inquiry request that can help them understand potential loan terms. Personal credit reports are also obtained through soft inquiries. Individuals have a right to obtain free annual credit reports from credit reporting agencies that detail their credit information. Individuals can also sign up for free credit scores through their credit card companies. These credit scores are reported to borrowers each month and are obtained by the credit card company through a soft inquiry.

Inquiries are an indicator of what makes up a credit score as well as seeking out new credit. The small components that make up something that most people shy away from are an integral part of your overall credit score. Given this new information may you have a better understanding of how this helps in shaping your credit history for future purchases. Until the next time dear reader. Excelsior!

Challenges of the young professional

The workplace can be a difficult terrain to navigate for any and everyone. It does not matter if it is a blue collar construction job or a white collar administrator role. Every position and environment has their own challenges. Throw in a new batch of college or high school graduates into the mix and you have an interesting mix of dynamics in the work place. Being a young professional in the workplace myself, here are some first and second hand illustrations of potential challenges and how to get through them.

A common struggle is the matter of being discounted due to age. Everyone has a beginning and needs to learn but after a while, skills are obtained and innovations and insights are developed. For those who are young (or in some cases young looking) there is a need to take an extra step and work a little harder to establish credibility. You’re a seasoned, skilled professional with years of valuable experience under your belt. These tips can make sure all of those things shine through at work—even if your gray hair doesn’t.

Navigating the professional world can be a little tough so it is important to have a career plan and set yourself in the trajectory to reach your career goals via advocating for yourself and setting clear cut goals for yourself. Build your network and share your motivation with your manager/supervisor to help with crafting an action plan to get you where you want to be. Even if you’re starting your own business make sure to get connected and voice your aspirations with those who are and have been where you want to go.

Another important aspect in being a young professional is presenting yourself as such from your dress style, email and text etiquette, and how you communicate with others in a working capacity. That includes leaving the slang at the door during work hours because not everyone in the office is privy to the lexicon used on Instagram and other social media. Do not overconpensate by acting cocky but yet if you are skilled let it be on display in a way that doesn’t make you seem arrogant. And above all else be patient and humble and deliver constant results to show that despite your youthfulnes, you are a force to be reckoned with and the sky is the limit.

To the young and the young in heart I encourage you to use these principles and see how far they take you. Often times I hear “I’m/you’re too young/old” I am a believer that that is a crutch that is used to hold us back from your dreams. If a 20 year old can become a music producer and make over $160,000 a year, or a 80 year old pass the New York bar exam or start a business at 30 anything is possible. It all depends on the willingness to make things happen and the hunger to not stop until the goal is met and when the goal is reached they exceed it! Until next time readers. Excelsior!

Motivated May: The Vergil Workout

For those that know me personally, I am an avid gamer and a fan of working out and maintaining my physical abilities. I came across two websites called superherojacked.com and beagamecharacter.com which had many of workouts inspired by different characters and celebrities alike. I took on some of the different workout programs to much success and decided to attempt a custom program of my own inspired by a character of my choosing. For this series I will be drawing inspiration from Vergil from the devil may cry series. Vergil is an accomplished swordsman and has incredible superhuman strength and agility, I decided to craft my series based on this premise. I took the approach of using body weight exercises to make it more realistic for a wandering swordsman character such as Vergil. This is a six day program but go at a pace that will work for you and also remember to warm up beforehand!

Strength training (5 sets of 5-20 reps depending on experience follow up with low intensity cardio of your choice)

Workout 1

Step up lunges (5 x 5-20 each time)

Triceps dips (5 x 5-20, using a set of chairs work well for this)

Door rows (5 x 5-20 each side)

Plank (5x 30 sec-1 min or more)

Arm circles (5 x 5-20 both directions)

Workout 2

Pike shoulder press (5x 5-20)

Chin-ups (5 x5-20)

Good mornings (5 x 5-20)

Sit-ups (5 x 10-20)

Hindu squats (5 x 5-20)

Incline/ decline pushups (5 x 5-20, I switched from incline to decline to mix things up a bit)

Workout 3

Pullups (5 x 5-20)

Alternating width pushups (5 x 5-20, I switched from wide grip to closed grip pushups for this)

Shoulder touch (5 x 5-20 each side)

High knees (5 x 10-40)

Hanging leg raises (5 x 5-20)

Cardio

In conjunction to the strength training Vergil has a lot of endurance and cardio for fighting for extended periods of time. For cardio I suggest going with a HIIT approach with these (for those who do not know what that is, it is simply engaging in high periods of activity with resting intervals)

Cardio 1

Jog/run (one and one intervals for a 5k length or build up to it depending on your experience level) 30 min

Cardio 2

Shadowboxing (1 min work with 30 seconds of rest between sets) 30 min

Plyometrics

Vergil has explosive powerful movements with his fists and his sword, so it is only right to combine the two of them together. I also use a steel club to build on forearm strength and shoulder mobility. Check out my paid link for a good starter club.

Burpee (3 x to failure)

Plyo pushups (3 x to failure)

Medicine ball toss (3 x to failure)

Club/hammer swings (3 x to failure)

Club/ hammer abdominal twists (3 x to failure)

After giving this series a try I felt much stronger after the fact. Train well in preparation for the summer months and in general. Excelsior!

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