Become the Boss of Your Finances

If you're on your way to college this year, or you have children attending universities, then this year could be the start of something new -- like starting a business!

Instead of becoming someone else's employee upon graduation, they could become their own boss, says Randal Pinkett, the winner of Donald Trump's fourth season of "The Apprentice," and author of the new book: "Campus CEO: The Student Entrepreneur's Guide to Launching a Multimillion-Dollar Business" (Kaplan Publishing, $16.95), which was the August Color of Money Book Club selection.

Be sure to stop by my online discussion today at noon, where Pinkett will join me in answering questions about embarking on a road to entrepreneurship or any other personal finance topics that's on your mind. If you miss the chat, read the transcript to see if anyone asked a question that was on your mind.

Beware of More Schemes

I wrote in last Sunday's column that as people are desperately looking for better returns they become enticed by pyramid and multilevel marketing schemes. My friends, you must stay skeptical of any money-making proposition promising easy earnings or extraordinary investment returns.

I wrote about a presentation I attended for Financial Independence Group LLC that left me with more questions than answers -- typically a huge red flag. My report comes on the heels of real estate columnist Elizabeth Razzi's two reports on Metropolitan Dream Homes that's now under investigation.

If you've attended a Financial Independence group presentation recently or one like it in your own home town, write to me. I want to hear your thougths on such business and investment promotions. Send comments to colorofmoney@washpost.com.

In yet another report about an alleged mortgage scheme, we see how one business couple spent their money: Joy Jenise Jackson invited 360 guests and spent nearly $800,000 for a fairy tale day. But now she's being investigated for using her clients money from an elaborate foreclosure rescue business to finance the overpriced day (which included giving "thank you" gifts to their attendants that included a Porsche and a house). Homeowners who used her mortgage services say they have lost roughly $60 million and have filed a lawsuit. Read the rest of the story: "Prince George's Fairy Tale Unravels For Woman at Center of Fraud Probe," (Aug. 26).

In today's column I follow-up with my opinion about the advice that was given at the presentation I attended. I just can't believe the folks who have fallen for the notion that they should never pay off their mortgage. Yes, why don't we all take this debt to our grave -- along with our credit card and car payments. Sure, I know the argument for keeping a mortgage. Invest the difference between what you would pay down on the mortgage and become rich. But the fact is, life gets in the way of that plan. People lose their jobs, get divorced or ace an illness that derails their financial strategies. Paying down your mortgage or paying it off early minimizes that risk. Read more of my advice in: "A Mortgage Is For Paying Off".

So How Do You Buy a House Today?

In the midst of mortgage meltdown, is it smart to put your home on the market? Well, according to real estate columnist Elizabeth Razzi, it depends on where you live. Sellers who put their house for sale in a market like this often have no other options. If you're a buyer there are some things you can do to make sure your home purchase goes through, such as maintaining a good credit score, have at least a 5 percent down payment, and proof of income. Read more advice in the column, "As Usual, It All Comes Down to Where" (Aug. 26).

Buying Psychology

People buy, buy, buy because they're afraid that the old model of whatever gizmo they're purchasing will become obsolete, according to a report by The Post's Shankar Vedantam. Most of the electronic items we upgrade because they have a new feature, we actually never learn to operate. So why do we do this? It's all in our heads, Vedantam says in his Department of Human Behavior column this week: "Because features introduced more recently feel as though they are less likely to become obsolete, consumers who buy them experience less anxiety. The money they pay is really not for the feature but for the psychological solace it purchases." Read more: "Spending More for a Little Solace," (Aug. 27).

You are welcome to e-mail comments and questions to singletarym@washpost.com. Please include your name and hometown; your comments may be used in a future column or newsletter unless otherwise requested.