WolfBridge Financial Blog

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If you haven’t heard about the recent demise of Kris Humpheries and Kim Kardashian after just 72 days of marriage from a multi-million dollar wedding, I don’t know where you’ve been.

In the reality show, “Keeping Up with the Kardashian’s,” it was very obvious that Kris and Kim’s relationship was doomed from the start due to Kim being used to her own space and Kris being used to spending the majority of his time training in Minnesota, rather than galavanting around LA and New York. However, I would argue that the biggest issue they had came down to their backgrounds. Kris came from a modest background in Minnesota and found success in his basketball talent. Kim has always grown up filthy rich and never had to work for anything.

Because of Kris’ upbringing, he lives modestly despite his multi-million dollar NBA contract. Kim just wasn’t having it. In one episode, Kim made it clear that if she moved to New York with Kris, so that they could be closer to Kris’ hometown and family and Kim could keep up her modeling career, that she could not live a lesser lifestyle than she does in LA. In another episode, Kris playfully throws Kim in the ocean at Bora Bora, and she comes out cursing and crying because she lost her $75,000 diamond earrings. In that same episode, Kim throws a fit about the Presidential villa right in front of their private butler who put the room together.

Kris could not make sense of Kim’s obsession with expensive taste and her never ending complaining, even though she had everything she wanted. I believe that this is what really drove them apart. It tells us that even to the rich and the famous, it’s so important for couples to sit down and talk about finances. Ask your significant other questions about their beliefs. What should we focus on when spending money? What is most important to save for? Do you value money, or spend it frivolously? Do you think it’s important to donate money? Do you have a budget? Should we create a budget? Can we stick to a budget? Do you have financial goals? If you wanted a big ticket item, such as a $1,000 55” TV or a brand new car, would you just go buy it or would we discuss it first? It doesn’t matter if you make $30,000 per year or $30,000,000 per year, financial issues are going to be prominent in your relationship.

If you do end up having this conversation with your significant other and you can’t seem to agree on certain financial problems, that doesn’t necessarily mean that your relationship is doomed. At WolfBridge Financial, we can sit down with you and discuss the disagreements you are having. We will create a financial solution, customized specifically to your lifestyle and needs. No matter what your income level is, or what your financial goals are, we are here to help. It’s much more rewarding for us to be able to create a plan that will keep a couple together, rather than have to create plans for couples who are splitting because they were unaware that the services were available. Furthermore, your life will likely be more fulfilling if you can save your relationship rather than end up in turmoil. Now that’s a story for the newsstands.

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Viviana and her group have reached their goal of raising $1,600, of which we funded $25, so that they are able to purchase bean seeds, compost, and other farming supplies for their agricultural business. We hope that this credit will allow the group to increase productivity and sustain profits, so that their children will remain in school. The group will start paying back their loan in February, 2012, and we will receive payments each month for six months until our loan is paid back in full. Then, we will be able to re-loan the money to another entrepreneur in a developing country.

We have enough money in our Kiva account to make one more loan before we start receiving re-payments. I will make this loan in December. So far, we have contributed to groups of women in Pakistan, Senegal, and Ecuador. These small “microloans” can do so much for people who have no other way to obtain credit. Kiva gift cards are great gifts for family and friends this season! When you purchase a gift card for $25, you give someone the chance to lend the money to an individual or group that speaks to them the most. Then when the money is repaid to their account, they can re-lend the money, or cash it out. Of course, the idea is that they will re-lend the money and hopefully add to the account themselves. You can make gift card purchases online at www.kiva.org.

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Today we contributed $25 to a group of two women and two men (led by one of the women) in Ibarra, Ecuador. Viviana, the group leader, works with her husband and the other group members in the agricultural field, such as growing beans, corn, and other crops. She requested a $1,600 loan to help them buy seeds, compost, fungicides, and various supplies to sustain their farms. She has a nine-year-old son, and she hopes he will be able to attend school regularly throughout his life.

One aspect of this group that drew me in was that they were asking for compost instead of fertilizer. Compost is a compilation of nutritious plant feed that will not harm the soil or water source in this area. Although the fungicides are chemicals, the crops will likely fail without them. This is a needed chemical, unlike the need for fertilizer which causes unnecessary damage.

This is the second time we have disbursed a loan to a group, instead of an individual. Remember that group loans work a little differently than individual loans. They ask for a large sum of money that is divided between them according to their business needs. The chair person of the group requests the loan, but each person is responsible for paying back their portion. Every now and then, the group gets together and discusses how their business situation is going. If one person is struggling to pay their loan back, the other members step up and cover it for them so they will be able to keep a high repayment rate and request more loans in the future.

Ibarra, Ecuador is located in the northern part of the country, near the border of Ecuador and Colombia in South America. The average annual income per capita is $4,776 USD. The microfinance institution administering the loan is charging 24.08% interest. Remember the interest is paid to the institution, not to the loaner. We only receive our principal amounts in small payments over a period of time (usually around $2 for 12-13 months).

So far, the loan is 32% funded. The group still needs $1,075 in order to reach their requested amount of $1,600. By the end of the day, the loan will likely be raised to the full amount.

We still have enough money in our account to make one more microloan of $25 to a group of women in a developing country. Our borrowers from Pakistan and Senegal are in the process of repaying their loans, and we will be able to redistribute the money to a new set of entrepreneurs in a few months.

By the way, WolfBridge Financial was recently featured in Boom! Magazine, a local retirement publication, for our Kiva loans. If you missed it, you can find an issue at one of these distribution centers. Click Here for Distribution List. We are located in the Chatter section on the inside front cover. Hurry to pick it up! The December issue will probably come out later this week.