Carrie Schwab-Pomerantz may be a Financial Grownup but that doesn’t mean all her friends have been able to grow up. Listen to how she works to get them on track. Plus- the president of the Charles Schwab foundation also shares an everyday money tip about making it easier to give to causes you care about. 

In Carrie's money story you will learn:

-How talking about money with your friend can keep you both on track

-The 3 craziest ways someone has tried to make quick cash

-What Carrie's number one priority is when it comes to saving, and how she follows through with it

-Hear why Carrie believes participating in the market is the key to saving for retirement

In Carrie’s money lesson you will learn:

-The one thing every financial professional does to save money and keep themselves on track. 

-The easiest way to be a good financial friend - and a successful financial grownup

In Carrie's everyday money tip you will learn:

-The ultimate tax smart way give to charity this holiday season 

In My Take you will learn:

-Carrie's friend from her money story was making some crazy financial decisions, here's how you can be the best financial friend possible without damaging your relationship

-Suggesting financial help to your friends could be the best gift you give this holiday season

Bobbi and Carrie also talk about:

-Carrie helped her friend's daughter pick out a broad-based index funds retirement plan, check out if that could also be right savings plan for you

-Mutual funds, index funds, and retirement plans are something to start thinking about as early as in your twenties. 

EPISODE LINKS

For all of your financial planning questions check out Ask Carrie Columns on Schwabmoneywise.com

Follow Carrie!

Twitter: @CarrieSchwab

Facebook: @CarrieSchwabPomerantz

Some of the links in this post are affiliate links. This means if you click on the link and purchase the item, I will receive an affiliate commission at no extra cost to you. All opinions remain my own.

Transcription

CARRIE SCHWAB:
Her daughter's about to go off to college, she panics, so what does she do? She signs up to drive for Instacart in her red, snazzy car, dropping off groceries at people's homes.

BOBBI REBELL:
You're listening to Financial Grownup, with me, certified Financial Planner, Bobbi Rebell. Author of How to Be a Financial Grownup, and you know what? Being a grownup is really hard, especially when it comes to money, but it's okay. We're going to get there together.

BOBBI REBELL:
I'm going to bring you one money store from a financial grownup, one lesson, and then my take on how you can make it your own. We got this.

BOBBI REBELL:
Hey, friends. Let's talk about being friends. Are you on track with your goals, but see a train wreck coming with someone you care about? What do you? Carrie Schwab-Pomerantz knows all about it, and has solutions.

BOBBI REBELL:
First, a quick welcome to everyone. If you are just joining us, you are new to the show, so glad you are here. We keep the shows short because you're busy, but if you are commuting or have a little more time, we fully encourage the binge listen.

BOBBI REBELL:
Got a question? We are putting together some upcoming episodes to answer them, so DM us at bobbirebell1 on Instagram, bobbirebell on Twitter, or email us, hello@financialgrownup.com. That is hello@financialgrownup.com.

BOBBI REBELL:
All right, let's get to Carrie Schwab-Pomerantz. I feel like she is the friend we all need in our back pocket. Yes, she is the daughter of Charles Schwab, and she grew up watching her dad build the business through ups and downs; but she is also, as you'll hear, a fantastic role model and financial expert in her own right.

BOBBI REBELL:
And, her story is one that we'll all be able to relate to. Here is Carrie Schwab-Pomerantz.

BOBBI REBELL:
Hey, Carrie Schwab-Pomerantz. You're a financial grownup. Welcome to the podcast.

CARRIE SCHWAB:
Thanks, Bobbi, so glad to be here.

BOBBI REBELL:
I am so honored to have you, because you are so accomplished in your own right, even though you get talked about a lot as the daughter of Charles Schwab. We're not going to talk about him.

CARRIE SCHWAB:
No.

BOBBI REBELL:
We're only going to talk about you. You are President of the Charles Schwab Foundation, and this is what really we bonded over, is that we are both certified Financial Planners, so you know your stuff.

BOBBI REBELL:
You got a lot of other letters after your name, but that's the one that is most special to me, so-

CARRIE SCHWAB:
I think so, too. We worked hard, didn't we, Bobbi?

BOBBI REBELL:
We did. That is one hard test, so-

CARRIE SCHWAB:
Yeah, yeah.

BOBBI REBELL:
Big pats on the back to us, and kudos to all the CFPs out there who are doing a lot to support people's financial goals, and to act as fiduciaries, which is a really important thing, as well.

CARRIE SCHWAB:
Yeah, and you know, Bobbi, this is how, again, you bring it up. Here we are, two women, and we need so many more women in our field, and I don't think people realize that this is not a field of match, or stem, or whatever.

CARRIE SCHWAB:
It's about helping people achieve financial security, and I think that we absolutely need more women in the industry to help people achieve that.

BOBBI REBELL:
Absolutely, and it's also important to be helping our friends, but that's not always an easy thing to do, which brings us to the money story that you're going to share.

BOBBI REBELL:
This is one of the most compelling stories that I have heard yet, because it really goes to the heart of what challenges us when it comes to money, and that is the human side.

BOBBI REBELL:
Tell us your money story, Carrie.

CARRIE SCHWAB:
Well, this one's a hard one to share. One of my oldest childhood friends, who I love, she's like a sister to me. She's always struggled with money, always worked, and so forth; so I really respect her financial independence, but she didn't always make good decisions.

CARRIE SCHWAB:
You know? She's not always prioritizing how to spend her earnings. She's a lawyer, by the way, and the one story that just confused me a little bit is ... She has a daughter that went on to college, and she was ... She had been saving for her daughter's college education, but I guess she didn't quite have enough money, and she panicked.

CARRIE SCHWAB:
My girlfriend had been driving a Tesla, much to my chagrin.

BOBBI REBELL:
For those that don't know, what do Teslas go for about? Are they over $100000?

CARRIE SCHWAB:
I think they're about $90000. Yeah, I imagine ... Definitely not in my budget. And so, she's driving these $90000, her daughter's about to go off to college, she panics, so what does she do? She signs up to drive for Instacart in her red, snazzy car, dropping off groceries at people's homes.

CARRIE SCHWAB:
I had to think to myself, “What's with this?” You know? “Tesla and driving for Instacart? Where are our priorities?”

BOBBI REBELL:
What do you do as a friend when you see a friend making what in your mind are irrational money decisions?

CARRIE SCHWAB:
You know, that's a hard conversation to have, I have to tell you. And, she has had this tendency ... I'll tell you another little story about her. She would buy tickets, like the Rolling Stones would come to town, buy expensive tickets in hopes that she could sell them for a profit.

CARRIE SCHWAB:
And, guess what? She can't sell them, so she comes to me and my sister in hopes we'll buy them.

BOBBI REBELL:
Oh, my goodness.

CARRIE SCHWAB:
Yeah, so I just finally ... I had to have some words and some tough love conversations with her, but, you know, the Tesla one, the most recent one ... she kind of knows how I feel. I just have to smile, and grin, and bear it.

CARRIE SCHWAB:
You know, “Why didn't you just get a Prius?” Because she wanted to go across the bridge, I guess you couldn't go through the fast lane, and so forth; but I would not say there's an easy conversation.

CARRIE SCHWAB:
I would say I have little conversations along the way, about the importance of having your priorities straight, and really making number one priority, saving and investing for your retirement.

BOBBI REBELL:
I'm curious, do people come to you, your friends, informally for advice all the time? Kind of like the doctor that goes to parties and everyone says, “Oh, I've got this little bark here, can you tell me what it is?” Do you get that a lot?

CARRIE SCHWAB:
I get it a lot, and to be honest with you, I so appreciate it. A girlfriend of mine, her daughter just got her first job in an investment bank, and I asked right away ... Specially for a young woman, I would say, “Have you started saving in your 401k?” And she said, “No, just because I don't know what to do.”

CARRIE SCHWAB:
She's in New York, and I'm in San Francisco, and I said, “Email me your options at your 401k,” so I took a look at them. I even consulted with one of our Financial Consultants who looks at this stuff every day, and we both agreed that she should be invested in a broad-based index fund that was offered within her plan.

CARRIE SCHWAB:
To me, it's all about participating in the market, specially for young people. When you're talking about retirement, you're talking about up to 40 years, potentially.

BOBBI REBELL:
Yes, we live a long time now.

CARRIE SCHWAB:
We live a long time, and put even more than 40 years, so it's so important to invest in a diversified portfolio of stocks, like a mutual fund, or an index fund. It's about participating in the market, it's not about picking the hot stock, or the hot mutual fund.

BOBBI REBELL:
Totally agree, so what is your advice, your takeaway in terms of being a financial friend? Admit it, you've had mixed success at. What is your advice for our listeners when they do see friends doing things that they know are not in their best financial interest?

CARRIE SCHWAB:
Steer your friends towards professional help; and I would also say there's no shame in getting help. I tell people all the time that even I have a registered Investment Advisor, and even the professionals get help, because it takes the emotion out of it, it makes you accountable. Right?

CARRIE SCHWAB:
Because, you know, you're showing up, you're meeting with your representative, and you learn, and you get better results. Give them somebody you totally trust, and then you can take it out and not sort of saturate yourself from the situation.

BOBBI REBELL:
So, Carrie, for your everyday money tip, it is almost holiday season, time to be thinking ... Hopefully we think about it all year-round, but time to be thinking, maybe a little more focused on giving to charity; and there is a way to do this where you often get more bang for your buck, as does the charity. Tell us more.

CARRIE SCHWAB:
The secret is a donor-advised fund. Most financial institutions have them. Schwab has one, I'm Chair of the Board, and basically you can open one up for as little as $5000. The way to make it tax smart is donate appreciated stock, that way you're not paying taxes, and you have more money going to the charity, and then ...

CARRIE SCHWAB:
Whatever amount it is, let's just say $10000, you get to deduct that from your taxes for that particular year. Then, you can take your time on what charities you want to choose from.

CARRIE SCHWAB:
Basically there's a search button. We probably have almost all of the non-profits in the system, you point and click, put how much money you want, press “Send,” and we do all the leg work to get that check out to charity.

CARRIE SCHWAB:
And, what we find, is that 90% of our users say they give more to charity, because of the donor advise fund.

BOBBI REBELL:
Wonderful. Tell us more about how people can learn more about you, your work at Schwab. I love your personal Twitter feed, it's awesome. You really have great, inspiring-

CARRIE SCHWAB:
Oh, thank you.

BOBBI REBELL:
Messages on there. Where can people find out more?

CARRIE SCHWAB:
Well, you can follow me @carrieschwab, and you can also follow on Carrie Schwab-Pomerantz on Facebook, and I have a lot of my content, my Ask Carrie columns, personal finance columns.

CARRIE SCHWAB:
Or, if you want an educational site, I highly recommend schwabmoneywise.com. It does have my Ask Carrie columns, but it has lots of tools, and calculators, and information about every aspect about personal finance; and it's for all levels of knowledge around finance.

BOBBI REBELL:
Yes. I have been on the site many times. It is very well done, highly recommend, and highly recommend listening to you more. Thank you so much, Carrie, this has been wonderful.

CARRIE SCHWAB:
Oh, so much fun working with you, Bobbi.

BOBBI REBELL:
Hey, everyone. Love how much you can tell that despite her frustration, Carrie really cares about her friends. Let's get to my tips.

BOBBI REBELL:
Financial grownup tip number one. Carrie held back from saying what I would have said to her friend, which is, “Sell the car already!” I know that cars depreciate in value, and so it's hard because you kind of feel like you're losing money, but really, if she needed the cash, why not just downgrade to that less expensive electric car right now?

BOBBI REBELL:
And, while her friend was at it, maybe there are other things that she can sell that she truly isn't using to pay for her daughter's tuition, rather than be delivering groceries in fancy, red, sports cars.

BOBBI REBELL:
Financial grownup tip number two. Adding to Carrie's advice, to bring in a third party for financial advice. Very often, the best way to help a friend is often to only be a friend. Bring in professionals to help with, maybe not only the financial stuff, but also when it comes to relationship issues or other major life crises.

BOBBI REBELL:
Not that you can't listen and be supportive. Of course you should, as a friend, but pushing them to make a decision that is obvious to you, and usually the world, could also backfire on your friendship and have long-term ramifications; because the truth is, as much as I think Carrie should have been even more blunt with her friend, and tell her to sell that Tesla already, every time the friend missed her Tesla she could potentially resent Carrie.

BOBBI REBELL:
And, it would take a big toll on their friendship, so it's really a delicate thing. I think Carrie had great advice.

BOBBI REBELL:
Thanks to all of you for supporting the show. One way to do that is to leave a review on Apple Podcasts, aka iTunes, or wherever you listen to Financial Grownup. I read every one, and they are truly appreciated.

BOBBI REBELL:
Also appreciated, Carrie Schwab-Pomerantz, whose great story of friendship and money really helped bring us all one step closer to being financial grownups.

BOBBI REBELL:
Financial Grownup with Bobbi Rebell is edited and produced by Steve Stewart, and is a BRK Media production.

In Frazer’s money story you will learn:

-How to calculate how much money to save before quitting a job 

-How to know whether you should to tell your employer about a side hustle

In Frazer’s money lesson you will learn:

-What are the factors that determine how much time and money goes into building a business

-Different ways to to save money before investing full-time in a personal company

In Frazer’s everyday money tip you will learn:

-Examples of creative ways to teach kids about giving to their community

-Specific ways, including games, that encourage cooperation between kids on money decisions

In My Take you will learn:

-Why it's ok to keep secrets at work

-Ways to consistently give to charity

Bobbi and Frazer also talk about:

-How to find out what it actually costs to live your life.

EPISODE LINKS:

Buy Frazer's book Wealth Actually

Check out the Wealth Actually podcast here!

Visit Frazer Rice’s website.

Follow Frazer

Instagram: @Frazer.Rice

Twitter: @FrazerRice

Linked In @Frazer Rice

Some of the links in this post are affiliate links. This means if you click on the link and purchase the item, I will receive an affiliate commission at no extra cost to you. All opinions remain my own.

Transcription

Frazier:
I did not tell my employer because I didn't feel like they were going to be very supportive of me thinking about the name on the back of the jersey as opposed to the name on the front.

Bobbi:
You're listening to Financial Grown-up with me, certified Financial Planner, Bobbi Rebell, author of How to Be A Financial Grown-up. And you know what, being a grown-up is really hard especially when it comes to money, but it's okay. We're gonna get there together. I'm gonna bring you one money story from a financial grown-up, one lesson and then my take on how you can make it your own. We got this.

Bobbi:
Hey financial grown-up friends. Have you ever kept a secret from your boss? Like maybe you were about to quit? More on how our guest pulled that off in just a minute but first just a quick welcome to everyone. As our regulars know, we keep the podcast short, around 15 minutes, because you're busy but if you have a little more time of course, feel free to binge a little, flex time for podcasts, and I need to ask this, please. This podcast is free. We've done over a hundred episodes. The only payment that we ask is that you help us grow the show and the way you do that is by telling friends and encouraging them to listen and maybe even show them how to listen to a podcast. Don't assume that they even know. And of course bonus points if you can leave a review and a rating with Apple Podcasts or wherever you listen.

Bobbi:
Alright let's get to our guest now. Wealth Actually author, Frazer Rice is a wealth manager, who just wasn't that into wealth management but he kept his other ambitions a secret from his bosses while he worked on gearing up his new business. The big challenge? Figuring out how much he, meaning how much Frazier cost? And he's going to help us figure out how much we cost. We're going to do the math on ourselves as well. Here is Wealth Actually author Frazier Rice.

Bobbi:
Hey Frazier Rice, you are a financial grown-up. I'm so excited you're on the podcast.

Frazier:
Bobbi, thanks for having me on. This is a real treat.

Bobbi:
Congratulations on your book Wealth Actually. Now this is the subtitle: Intelligent Decision Making for the 1%. And before anyone gets the rolling eyes or anything, this is an important book. Because we talk a lot on this show about making money and paying off debt and all those things to get there. But once you're there, you wanna stay and you wanna grow. That's why I was so excited to get you on. So welcome and congratulations.

Frazier:
Well thank you and it's one of those things where the subtitle with the 1% part I wrote about what I knew. It was my day job to help people.

Bobbi:
Because you're a wealth advisor.

Frazier:
That's right. Make financial transitions and I think a lot of the lessons that are applicable to them, apply to other people as well.

Bobbi:
Absolutely and it's also really important from a family perspective because, and we'll talk more about the book after your money story, but a lot of wealth disappears after three generations. And if you're out there working your heart out to build a financially stable future for your family and your kids, the last thing you want is for it not to last.

Frazier:
And not only that, one of the things people really worry about and are concerned about is leaving a legacy. And what I tried to do with the book is take a look at a lot of a different issues that can attack that and that can frustrate people and the legacy they want to leave. Not only that but sort of helping them raise kids in a way they think will be productive going forward.

Bobbi:
Exactly. So let's talk about you first. Because you brought with you a money story that is happening right now.

Frazier:
It sure is.

Bobbi:
This book and by the way your podcast, which is being rebranded as Wealth Actually, is part of it and so much more. But it hasn't been, we joked just before we started recording that overnight successes, you know, take years to build. That's kind of what's happening to you. You've put a lot into this. Tell us your money story.

Frazier:
No question about it. So I was wealth manager for Wilmington Trust for almost 16 years and so what I did was take care of clients, and go out and find new ones. I came to the conclusion probably about two years ago, where I said, you know I want to be doing something different, I wanted to build more equity in my own brand, and I wanted to have something that was mine in a sense, I'm age 45 now, I wanted to look back when I'm 55, 65, etc. and say this is something I built and that I own.

Frazier:
One of the areas I'm particularly interested in is certainly in the media side of things. I had a radio show in high school and a TV show in college and I do a lot of different writing on the side, screen plays and I have a graphic novel coming out hopefully at the end of the year.

Bobbi:
You're busy, Frazier.

Frazier:
Yeah, no rocks gather moss with me I guess. But anyway I came to the conclusion at one point, I said, you know what, I think I've got something here. I started writing a book about my wealth management experiences and the way I think about it. And I started that in the beginning of 2017 and it was ready to go at the end of 2017. And my money story I guess, is I was looking forward. I said, you know what, I need to build some padding, or some bandwidth around my financial situation so I can really give this a go. I did not tell my employer because I didn't feel like they were going to be very supportive of me thinking about the name on the back of jersey as opposed to the name on the front. And also the idea of conveying media and marketing that I don't think trust companies or banks understand very well.

Frazier:
With that in mind, I said okay, I'm probably going to have to leave and walk out the door and be on my own fairly abruptly. I basically took a year of income as my goal and just said I'm going to be spending money on doing lots of other things to try to get the book ramped up, to try to get the podcast ramped up and a variety of other projects. So take a year of income, take a quarter off of that and that's nine months of expenses and that's probably a pretty good way of going about it.

Bobbi:
And where was the money going to go specifically to do those things? What's involved in launching something like this?

Frazier:
Sure. So from a book perspective, I basically set aside 40,000 dollars to get the book written and for marketing costs. From a podcast perspective I would say it's probably about 12,000 dollars a year in terms of getting the thing produced and also marketing it accordingly.

Bobbi:
How are you marketing it? What marketing costs specifically?

Frazier:
Well the marketing costs essentially are me both from a public relations standpoint, getting it out and having articles written and so on but also me going to conferences and getting the word out that way. I haven't really delved too deeply into direct marketing as it relates to you know maybe Facebook ads or something like that [crosstalk 00:06:30].

Bobbi:
What conferences do you attend?

Frazier:
Well the latest one that's interesting is ThinCon, but also Trust in the States conferences, financial services conferences, investing conferences, that type of thing, which I think lends well to the book, which targets not only the wealthy people or you know people who aspire to be wealthy or have various issues that they'd like to deal with but also the advisors around them. So when I wrote the book I kind of had in mind the idea of targeting not only the people who had money but also the people who advise around it, on the theory that if they liked it, maybe they have 12 people that they'd like to buy it and give it to.

Bobbi:
That's so smart because the idea of educating yourself about money is really becoming much more mainstream and a lot of attention goes to young people paying off student debt, as it should, but more attention I think as millennials grow up and get older is going to and as the other generations obviously also get older, is going to go the management of wealth because you do get past a point we hope where you're focused more on offense rather than just digging out of the hole. And that's a great thing because people need this kind of book.

Frazier:
No question about it. And one of the things I heard from a different advisor which I didn't really speak to in the book too closely but that I really believe in is the idea of funding your retirement as much as possible ahead of time. Because it's something you will do. You will be out of the work force at some point later in your life and you need to fund those years from age 65 or 70 on and if you don't do it early and use the power of compounding in your favor, you're not going to have as nice a retirement as you would have liked.

Bobbi:
So what is your takeaway for the listeners from your money story? From building this business?

Frazier:
I think the big takeaway is pre fund as many expenses as possible and be prepared for the idea that it takes time to build a business. It takes time to build a brand. You're going to have setbacks and to the extent that you can save up and have that at hand, I sleep better at night knowing that I'm not quite sure you know, if I don't know necessarily what my career's going to turn as out as a result of these moves, at the very least I'm not dipping into savings to fund current daily expenses.

Bobbi:
Let's talk about your every day money tip. You have a lot of exercises that people can do and this is one that I think is really valuable because as people start to become more successful financially they do want to be able to give to philanthropy.

Frazier:
If you had three kids and four dollars to give away, I would suggest that each of the kids be able to give a dollar away in the manner in which they choose. This is interesting for a couple of reasons. The first one, is you know it sort of gives them the idea that you know there's a good reason to be giving money away and it helps to further social causes. But from a parent's perspective I think one thing that's nice is that you get to see what is important to kids. And it's a nice data point that you can look at as you're raising your kids and you can see how they think about things.

Frazier:
The second part of that, I said you had four dollars and you know three of it is given away. That fourth dollar I think an interesting exercise is to have the three kids decide amongst themselves how to give away that fourth dollar. And I think that's interesting and a good exercise for one major reason, is that it gets them to be making decisions together. One of the things that I preach in the book is there are a lot of different threats to wealth, one of which is that family members very often their first experience dealing with wealth is when one of, either the mother or the father dies and they're making decisions about big money late in the game and a lot of emotion can come into play.

Frazier:
By using this shared philanthropy experience you get kids making decisions about money and learning about what's important to each other, ultimately going forward. And it's a very small thing, it can be done with very small dollars and it can be done by anybody, not just the 1%. But I think it's a nice little communication tool that transfers values but also builds communication skills and also allows kids to understand what they're strengths and weaknesses are before they have to settle on the state.

Bobbi:
Great idea. I think that's something everyone can implement at any level. I want to talk quickly about your book as well. It really hit a lot of marks with me because it does hone in on so many themes that are universal, no matter what your income. The chapter that stood out most to me is where you talk about what do you cost? And I think that's important at any income level, any wealth level, because we often cost more than we realize.

Frazier:
Oh no question about it. Basically you know when I was talking about writing the book with my publisher, one of the things I talked about was there are people who come from one strata of wealth or one differens type of wealth, meaning maybe they had a business or real estate. And then they're going to another one, they're selling something or they have liquidity or more cash than they were used to having. Or they're coming from a high paying job and then they're going into retirement and hopefully they're funding their income needs via assets. The biggest thing I preach to people is if you've won the lottery or you've become a first round draft pick or you've sold a business or something like that, understand not only what you cost currently and how that was funded but also what you're going to cost. And I've tried to do it in a fun way in the book.

Bobbi:
Oh you go there. You talk about plastic surgery, you talk about private jets. It's a little bit out of most people's leagues, the kinds of things you talk about but it kinda shows how you can have that lifestyle creep so easily the minute you start to feel a little more comfortable in your wealth.

Frazier:
Not only that, people very often just don't have a sense of the numbers around different things and I try to just crack the whip as much as I can to say look this is what things cost and there is a big different between flying coach and flying first class and then going net jets and then owning your own jet. Those costs are geometric and if it's your assets that have to generate the income to support it, you may have fun for a couple of years or you could have a real problem going forward. And if the market tanks or something bad happens to your business or there's litigations or something like that, one of the threats to wealth comes to fore, you could really set yourself up for a life style pull back.

Bobbi:
Tell us more about where people can find out more about you, your book, your podcast and all the things.

Frazier:
Sure. So the book is called Wealth Actually. You can find it at wealthactually.com. It's on Amazon, so you're able to find it that way. The podcast is on wealthactually.com as well. And then more about me is on my website, frazierrice.com. I'm on Twitter, Facebook, Instagram, all the major social media platforms, so between that and Google, I'm pretty easily findable.

Bobbi:
Thank you Frazier.

Frazier:
Oh yeah, I appreciate it. Thanks so much for having me on.

Bobbi:
Hey everyone, so excited to watch Frazier soar in his new ventures. Here's my take on what he had to say. Financial grown-up tip number one: he had a big secret at work and you know what? It's okay to keep secrets at work. As excited as you are about whatever side hustles or new ventures you've got going on, if the bosses think you have one foot out the door, you may not get considered for certain projects or even a promotion and of course forget about a raise. Why should they invest in you when they think you're going to leave? Don't do anything related to it on your employer's time obviously and don't do anything unethical. But it is definitely okay to be discreet and by the way that promotion that you could be considered for, because they see how committed you are to your job, when you are there, that actually maybe good enough to keep you at your job and maybe you don't start your own business or maybe you have other opportunities that you might not have seen at the company.

Bobbi:
Financial grown up tip number two: Frazier talked about strategically giving to charity. Here's a little more. When you're giving to charity think about your ability to sustain the level of giving for the long run. So for example, you may have had a great year and you want to boost your gift to a new level at a cause you really care about. And you know they could use the money. But then next year the expectation is going to be that you are going to maintain that level or you're going to raise it. Something you may or may not be able to do or want to do. So here's the strategy. You keep your regular annual donations relatively steady or climbing slowly and then if you have that really good year, and you can and want to give more that year, strategically give it in a way that is clearly for a one time specific project, like a capital campaign.

Bobbi:
Alright, thank you all for your support including supporting the show by leaving reviews. I said it before but I'm repeating it cause it's so important, we really do need them my friend. Also, be in touch on the socials. I love hearing from you guys. On Instagram I am @bobbirebell1 and on Twitter @bobbirebell and thanks to Wealth Actually author Frazier Rice for bringing us all one step closer to being financial grown-ups.

Bobbi:
Financial Grown-Up with Bobbi Rebell is edited and produced by Steve Stewart and is a BRK Media Production.

MSNBC Your Business host JJ Ramberg didn’t just love Ben & Jerry’s ice cream growing up.

She loved their mission. That led not only to her career interviewing entrepreneurs on television but to her own socially responsible ventures including Goodshop and The Startup Club. 

In JJ’s money story you will learn:

-How Ben and Jerry’s Ice cream inspired JJ’s business with her brother called Goodshop

-How her business supports non-profit causes

-How to use GetGumdrop to support causes you care about

-How her ventures have raised nearly $13 million dollars for non-profit causes

 

In JJ’s lesson you will learn:

-How to balance being socially responsible business with profitability

-Why JJ believes corporate sustainability starts with focusing on secure jobs for employees

-When NOT to give directly to charity

 

In JJ’s money tip you will learn:

-How JJ’s new spending categorization strategy is helping her save money

 

In my take you will learn:

-How to balance supporting your business with supporting causes you believe in

-No-cost ways to support charities you believe in

 

Episode Links

Learn more about

JJ Ramberg on MSNBC

Been There Built That podcast

Your Business with JJ Ramberg on MSNBC

The Startup Club book

Goodshop

GetGumDrop

Ben & Jerry’s Ice Cream

The Body Shop

Patagonia

Amazon Smile

Bidding for Good

 

Follow JJ Ramberg!

Linkedin

Twitter @jjramberg

Instagram @jj.ramberg

Facebook JJRamberg

MSNBC Your Business host JJ Ramberg didn’t just love Ben & Jerry’s ice cream growing up. She loved their mission. That led not only to her career interviewing entrepreneurs on television but to her own socially responsible ventures. In this Financial Grownup podcast episode we also discuss no-cost ways you can support charities. #CharityIdeas #GiveBack

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Transcription

JJ Ramberg:
The most socially responsible thing you could do is make sure your employees have a job tomorrow and treat them well, whatever that takes.

Bobbi Rebell:
You're listening to Financial Grownup with me, certified financial planner Bobby Rebell, author of How to be a Financial Grownup. You know what? Being a grownup is really hard especially when it comes to money, but it's okay. We're going to get there together. I'm going to bring you one money story from a financial grownup, one lesson and then my take on how you can make it your own. We got this.

Bobbi Rebell:
Wise words from this episode's financial grownup. She is JJ Ramberg, host of Your Business on MSNBC. JJ has been talking to small business entrepreneurs for more than a dozen years. JJ also hosts the Been There, Built That podcast, and she has a few pretty significant side hustles that she herself has been building including a fantastic plug-in app called Goodshop and a young adult book project with her sister that she will tell us about. Here is JJ Ramberg. JJ Ramberg, welcome. You are a financial grownup. Great to have you.

JJ Ramberg:
So happy to talk to you, Bobbi.

Bobbi Rebell:
You have your own new podcast and a new book to talk about. Tell us more.

JJ Ramberg:
I do. There's a lot going on. We've recently a few months ago launched our podcast Been There, Built That. Basically, I've had this show on MSNBC for 12 years called Your Business.

Bobbi Rebell:
Longest running show, right? Is that the longest running show on business?

JJ Ramberg:
It's the second longest running show after Chris Matthews, after Hardball. I know.

Bobbi Rebell:
That's the longest business show.

JJ Ramberg:
Yeah, for sure. It's crazy. I think it's the second longest running female anchor.

Bobbi Rebell:
Awesome.

JJ Ramberg:
Maybe first female, I don't know.

Bobbi Rebell:
Let's just go with first. Let someone correct us.

JJ Ramberg:
Exactly. I've had this show on MSNBC for 12 years about growing businesses. We just launched the podcast because on this show I get three minutes to talk to people. I always get to talk to them much longer in the green room and at coffee. The podcast is my chance to now get those conversations out to our audience too.

Bobbi Rebell:
You also have The Startup Club.

JJ Ramberg:
The Startup Club was my side passion project that I did with my sister. It's a fiction book for kids about kids who start businesses. It's a typical book for grade school kids, like two best friends start a business. The mean girl in school copies them. They get in a fight. The brother gets involved, all this stuff. Through it, they learn what's the difference between profit and revenue, and what is marketing, and all kinds of business things, which tap into kids' general interest at this age anyhow.

Bobbi Rebell:
Kids are curious. My son is very curious. I have a ten-a-half-year-old. He is very curious about business. I am definitely going to check that out with him. You also, speaking of kids, when you were a kid, you loved ice cream. It was memories of Ben & Jerry's that inspired your money story that you're going to share with us.

JJ Ramberg:
It was. When I was growing up I was really taken by the idea of socially responsible businesses. In those days it was Ben & Jerry's, all the good that they were doing, and The Body Shop when it first started, and Patagonia. I thought when I'm older, even just as a kid, I thought I want to do something that is business because I come from a family of business owners and incorporates doing good. Cut ahead many, many, many years, and my brother and I came up with this idea called Goodshop, which was we partnered with thousands of stores. You'd shop just like you normally would. We'd get you all the best coupons and deals for those stores, but you can select your favorite cause no matter what it was. A percentage of what you spend goes back to that cause.

Bobbi Rebell:
That's awesome. Now there are extensions.

JJ Ramberg:
Now we have the Gumdrop extension. You don't even have to worry about putting the coupon in or choosing your cause every time. You just go to getgumdrop.com and add the extension. It automatically puts the best coupon in at checkout. If you select a cause, a percentage of what you spend will go back to that cause. We've raised nearly $13 million for causes so far.

Bobbi Rebell:
Amazing. What is your lesson for want to be entrepreneurs who also want to be doing good? How do you actually execute this? This is an 11-year overnight success.

JJ Ramberg:
Twelve, actually.

Bobbi Rebell:
Yes, 12. Oh my gosh, 12.

JJ Ramberg:
Yeah. It's interesting. I get this question a lot from people. As you can imagine, because of the show, I meet so many founders and people who want to start companies. Because my company is socially responsible, I get the question. My thought is Goodshop was born originally on this premise of let's give away our revenue when people choose causes. It was baked into what we were doing. That's why we launched it in the beginning, but not every company is like that, and not every company needs to be. You got to think of social responsibility not just about giving money away. It can be about treating your employees really well. The best thing, I think, the most socially responsible thing you could do is make sure your employees have a job tomorrow and treat them well, whatever that takes. Yes, if you can take time off to volunteer, or if you can donate part of your profit, that's fantastic, but I don't think you need to feel the great pressure of that right when you're starting up, if you don't have time.

Bobbi Rebell:
I feel like there is pressure for people to say, "I'm giving this percentage to charity." In fact, by employing people, you are helping.

JJ Ramberg:
Yeah, and look, when you're starting out, you know this, you don't necessarily have money to spare to give away. That money needs to go back into building your business.

Bobbi Rebell:
Solvency is important.

JJ Ramberg:
You have to think about what makes sense for your company at this particular time. Look, it's changeable. As you grow, things can change. I think treating people well and keeping your doors open, you can think of that as socially responsible.

Bobbi Rebell:
Give me a money tip, something that you and your family do that our listeners can implement right now.

JJ Ramberg:
I have recently started categorizing all of what I spend, which I think is so fun. I know some people think that is so horrifying.

Bobbi Rebell:
That's fun? That's not fun.

JJ Ramberg:
I know. It's so funny. To most people, that sounds awful. To me, I take such great pleasure in seeing exactly where my money is going. My money tip, if it at all sounds fun to you, go ahead and do it also. There are all kinds of systems online.

Bobbi Rebell:
Are you using an app?

JJ Ramberg:
I use a proprietary one, but there are lots of them out there that will help you do this.

Bobbi Rebell:
Thank you, JJ.

JJ Ramberg:
Good to talk to you, Bobbi.

Bobbi Rebell:
Here is my take on what JJ had to say. It has a lot to do with her refreshing and realistic on business and being socially responsible while you build a business. Financial grownup tip number one, as JJ says so well, when starting a venture don't get caught up in making sure that you give, for example, a certain percentage of profits to charity, or give employees days off to volunteer. If it works for your business plan, that's great. The truth is if your business provides a service that is helpful to your clients, providing value for them and also can provide a solid and stable job for your employees to support their families, that is good too. A solvent, profitable business should be your priority.

Bobbi Rebell:
Financial grownup tip number two. From the consumer perspective, for things that you are already buying, see if there's a way that you can buy things that you're already buying, and have a percentage of what you are already paying go to a cause that you care about. For example, you can start with Goodshop's new Gumdrop extension. You could also, for example, shop with retailers that donate a percentage to charity like Amazon Smile, which has the same products as Amazon, but donates half of one percent of your purchase to the charity of your choice.

Bobbi Rebell:
Also, keep an eye out for themed promotions at places you already shop where they will give a certain percentage to charity for that time period. Separately, you can go directly to charities and even schools and ask if they have any partnerships with retailers. Very often you can put a code in and, for example, enter through a website portal with retailers. Then that organization will get a cut of what you spend. I also like to shop at school auctions where I can buy things that I probably would have bought anyway, and you can support the school or the cause. The website I use for that is called biddingforgood. You can bid on items for any school or organization there. You don't have to be affiliated with that organization or school. I've bought everything from kids' classes to theater tickets, even a yoga mat, all through bidding for good often at lower than retail prices, in fact. Even though you're bidding, it's not always a higher price. Sometimes you actually get a good deal for yourself. Of course, the money goes to the school or the organization, so it's all good.

Bobbi Rebell:
Thank you so much for listening to this episode of the Financial Grownup podcast. If you like the show and want to hear more, please help support us by subscribing and then rating or reviewing on iTunes or Apple Podcast. That is the way more people can hear about us. Also, please share on social media or just tell a friend. I hope you enjoyed hearing JJ's story and advice and that we all got one step closer to being financial grownups. Financial Grownup with Bobbi Rebell is edited and produced by Steve Stuart and is BRK Media Production.