Bobbi Rebell:
Big cities have a lot to offer- but can be expensive. Co-host Grant Sabatier, creator of Millennnial Money and author of the new book “Financial Freedom. A Proven Path to All the Money You Will Ever Need” recently moved to New York City despite the costs. He shares his three biggest tips to making it work for your financial grownup money goals, and still live life to the fullest.
Here are 3 tips for expensive city living
How you can plan for the big fixed expenses
Why you should balance the convenience of prepped vs non-prepped items
The importance of getting out of the city
Episode Links:
Blinkist - The app I’m loving right now. Please use our link to support the show and get a free trial.
Grant's book - Financial Freedom: A Proven Path to All the Money You Will Ever Need
Check out the book trailer here
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.
Startup guru Courtney Reum credits family dinners and the lessons served with helping to create the foundation of his business success. Along with his brother, he has not only built and sold his own venture (Veev) and written a best seller “Shortcut Your Startup”, but is now also mentoring and supporting a new generation of entrepreneurs and brands.
In Courtney’s money story you will learn:
-The importance of family dinners in forming Courtney’s values
-The financial values Courtney and his brother learned from their parents
-Courtney’s confession about his teenage self
-How it helped Courtney learn about financial priorities and resource allocation
-Why Courtney references Jane Fonda and Jazzercise when talking about nutrition
-Courtney’s love of Sushi on Sundays
In Courtney’s money lesson you will learn:
-How his parents shared meals in order to stretch their dinners out budget
-The one key thing Courtney’s dad did when the bill came that can save you money
-Advice on how to figure out the right amount to tip when eating out
-The importance of sticking to old fashioned values even though technology dominates
-Little known facts about how phone numbers were created
In Courtney’s every day money tip you will learn:
-Courtney’s advice about carrying cash in a digital world
-Why $100 is the magic number for his emergency stash when traveling
Bobbi and Courtney also talk about
-How M13 began after the brothers sold Veev
-Why Courtney believes we are living in the golden age of creating brands
-Courtney’s angel investments and his take on consumer tech brands
-Why he believes all brands need to be media and tech companies
-What the M13 playbook is and how it works
-Courtney’s book with his brother, “Shortcut your Startup”
-The importance of realizing “Time is the new Money"
In My Take you will learn
-How eating together as a family has been shown to increase the odds of success for kids
-Why checking the bill at restaurants often leads to corrections- in your favor
EPISODE LINKS:
Follow Courtney!!
Instagram @CourtneyReum And his insta with his brother Carter @ReumBrothers
Twitter @courtneyreum @M13company
Linkedin Courtney Reum
Learn more about M13 at m13.co
Read Courtney’s book “Shortcut your Startup” !
Learn more about the spirits brand they built and sold: Veev !
Learn more about the companies Courtney and M13.co are working with:
Classpass
Lyft
Casper
Kevita
Bonobos
Warby Parker
Learn more about the success that comes from eating together as a family:
https://www.washingtonpost.com/posteverything/wp/2015/01/12/the-most-important-thing-you-can-do-with-your-kids-eat-dinner-with-them/?utm_term=.94cf3514f57c
Transcription
Courtney Reum:
They certainly tried to show us and explain that there's some nutrition here. Back then it was like I call the Jane Fonda Jazzercise, so it was they were like, "This is not too much fat, not too much calories. It's good, heres why," and so I equate the not too much fat, not too many calories to just the value of the meal, and so they were all about the value in things.
Bobbi Rebell:
You're listening to Financial Grownup, with me, certified financial planner, Bobbi 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:
Hey Financial Grownup friends, that was Courtney Reum talking about family dinners growing up, and this is on family. They eat together generally seven nights a week, and while, as you will hear in his story, it wasn't about the food, the food did provide a largely unspoken lesson about money allocation and priorities. I'm really excited to share this story, I think we're all going to find something that we can relate to here and put to work in our own lives.
Bobbi Rebell:
All right, first a quick welcome. We keep things short here, around 15 minutes. Flex time for our busy listeners because you can listen to one episode or you can listen to a few if you have more time. Make sure to subscribe if you haven't done so already, so you won't miss any upcoming episodes, and make sure when you do so, to go into settings and set you the auto-download. That way you never have to think about it again. If you have a free moment after that, leave a review. We see every one of them, we really appreciate it, and it is the best way for other people to hear about the show and for us to grow. Speaking of that, of course you can also tell a friend.
Bobbi Rebell:
All right, let's get to Courtney. There is something in this episode for everyone. Courtney Reum is not as famous as he should be, or as he will be. Pay attention to this guy, and his brother by the way, who's also his business partner, Carter. After stints at Goldman Sachs and success creating and then selling their popular spirits company, VeeV, the brothers are now helping nurture other success stories with their company M13. It's a disruptive brand development studio and venture capital firm. Their portfolio incudes investments in some names you may or may not have heard of, like Lyft, ClassPass, Pinterest, Bonobos, Warby Parker and more.
Bobbi Rebell:
By the way, in their spare time, they wrote a book for anyone who wants to rev up their brand, Shortcut Your Startup. Courtney also drops some random facts I never knew, and I bet you didn't either, so play close attention, here is Courtney Reum.
Bobbi Rebell:
Courtney Reum, you're a financial grownup, welcome to the podcast.
Courtney Reum:
Thanks so much for having me. Great to be here.
Bobbi Rebell:
I'm so excited to have you. Not only are you, and your brother I should say, the inventors of Veev, which a lot of people are fans of, you now have a new company which we'll talk more extensively about after your money story, but M13, which is a brand development company, you have investments in a lot of really cool companies, from ClassPass, to Casper, to Lyft. Tell us just briefly about it. What is M13? M13 has a really cool origin, the name right?
Courtney Reum:
Yeah. Well we wanted to have that mysterious MI6 kind of I don't know what they do, but it must be something cool sound to it. But the literal name, M13, is the brightest cluster of starts in the galaxy, whereby the sum of the whole shines greater than the individual parts. It's this idea of connecting the dots and pitting the pieces together, which is what we're really endeavoring to with M13.
Bobbi Rebell:
Cool. I should mention you also have a book.
Courtney Reum:
We do. What we're trying to do right now with M13 is build a company for building companies, so we're starting some of our own, we're working with other companies, and so we have a, I guess I'd call it a venture capital arm and then a brand development studio, and we're really trying to institutionalize the platform or the machinery of how you create brands. We decided to try to codify that and write a book called Shortcut Your Startup, that is a lot of the principals and things we're doing, because we believe it's the new age of creating consumer brands and things like that, so we wanted to share what we've learned and then hopefully continue to improve on it with what we're doing with M13.
Bobbi Rebell:
Love that. You also learned a lot from your parents growing up. I know your father unfortunately passed away a little more than a year ago, but there were a lot of lessons around the dinner table, about saving and splurging. Tell us your money story Courtney.
Courtney Reum:
I think one of my most vivid memories growing up is that my family was really big on the lost art of having family dinner, probably almost until the time we got to high school, we probably did it seven days a week just about, and even through high school, probably four or five, which I think is almost unheard of. But what stands out to me is my parents, who were very frugal even when they didn't have to be, but always very value oriented, we would probably, four nights a week, eat some kind of Stouffer's, Lean Cuisine, AKA TV dinner. The only real choice for the night would be are we going to have spaghetti tonight or are we going to have chicken and vegetables? Whatever it may be.
Bobbi Rebell:
Right. But your mom wasn't cooking spaghetti from scratch, these were heat-up meals for $5, $10, whatever they were going for at that time.
Courtney Reum:
Right, because I remember being teenager, and I was always a little bit of a smart you know what, and my mom would say, "Okay, I'm going to cook dinner," I'm like, "You call that cooking?" She's like, "You know what I mean, just pick which one you want." I think my family's a bunch of type A busy bees, people on the go, but we would have TV dinners three or four nights a weeks, and then Sunday would always be the day where my parents would say, "All right, we're going to go out for a nice dinner. Where do you guys want to go?" Nine out of 10 times, growing up in Chicago in the 90s we'll say, it would be sushi, and despite what people may think now, sushi was super exotic.
Bobbi Rebell:
Oh yeah.
Courtney Reum:
And rare back then, to the point that not one friend of mine ate sushi. My friends in high school, like on the football team and stuff, when I would walk somewhere with a cut roll of sushi, they would take it out and throw it back and forth like it was an egg toss because they were so wowed by what the heck sushi was. Anyways-
Bobbi Rebell:
And it was expensive.
Courtney Reum:
Yeah, and it was expensive. We certainly grew up having every opportunity, but having said that, I could not have gone out for sushi four nights a week, so it was a great lesson in all right, I'm going to have a TV dinner tonight, not realizing how some of those nitrates and processing and all that good stuff.
Bobbi Rebell:
It was a different time. Give your parents a break. We didn't know at the time. Now we're all eating clean.
Courtney Reum:
Yes, exactly, but I definitely was able to scoff down a few of those dinners, knowing that Sunday was around the corner and we were going to have our favorite sushi dinners.
Bobbi Rebell:
Did your parents ever talk to you about the financial decisions behind that?
Courtney Reum:
My parents didn't explicitly talk about it, but they certainly tried to show us and explain that, "Hey, we don't have time, nor can we go out for sushi every night, but this is still a really good meal. There's some nutrition here." Back then it was like I call the Jane Fonda Jazzercise, so it was they were like, "This is not too much fat, not too much calories. It's good, heres why," and so I equate the not too much fat, not too many calories to just the value of the meal, and so they were all about the value in things.
Bobbi Rebell:
For our listeners, what is the takeaway? How can people apply this lesson of saving and then splurging to their own lives?
Courtney Reum:
My parents are both highly disciplined people, and I would like to think that has trickled down to us. Even to keep it with food, since it's such a bonding occasion, my parents loved to tell stories of living in New York City right after they graduated college, and they would go out to dinner once a week because they felt like it was important to do right when they were newly weds, but they couldn't afford to really go out to dinner, so they would share one appetizer, one entree, one dessert and one coffee. The fact that they had the discipline to still find a way to enjoy and make the most of whatever they could do, but they had the discipline to realize we can't go out for a full-blown meal all the time, and that made a big impression on me.
Bobbi Rebell:
What's the most memorable financial lesson your dad taught you?
Courtney Reum:
My dad checked every bill from every restaurant. Whether we spent $7 or $70, he would check every bill. Still to this day, I do that, and I'm shocked how often there's a mistake on the bill, and most people, if you don't really check it closely, they don't catch it. They're like oh, they threw another drink on there, and maybe you don't care, but you might as well at least know. My dad would always joke, "It's funny how the restaurant very rarely makes an error in your favor." He just taught me to really dot your Ts and cross your Is, and my dad was one of those guys who could do incredible math in his head. None of this stuff where you just take the amount of the check and double it to do the tip or something like that, he would calculate whatever number was in his mind, 16%, 17%, without tax because he didn't believe you tipped on tax back then, and just do it in his head and write it down. Just having a facility with numbers and being in the details was something I really took from him.
Bobbi Rebell:
Right. He didn't have apps that would split things up and calculate everything for him.
Courtney Reum:
No calculators on his phone because there was and phones. He was like a human calculator, at least up to maybe two or three digits.
Bobbi Rebell:
For our listeners, what's the takeaway from that?
Courtney Reum:
I think there is that old fashioned way to do things, and we've got to make sure [inaudible 00:09:20] where we don't lose it in the world of talk to text or voice or you name it, because I always say to people, "Do you know why telephone numbers are seven digits, not including area code? Because seven digits is roughly the amount of digits that can stay in you short-term memory, depending on how you define that, 30 seconds to a minute, this can stay in your memory and you can remember it. Back in the day when phone numbers were created, you really needed to remember that thing, or even if you wrote to down, and so it was important that it stayed in your short-term memory." Now think how few numbers we actually know off the top of our head, so we have to make sure we just don't lose those skills.
Bobbi Rebell:
I love that. Speaking of skills, let's talk about your everyday money tip, because we were joking before we started taping, that you are ... I can't even keep track Courtney. I know you got off an overnight, but then it was delayed and you were on the tarmac. You travel a lot and you don't use a lot of cash, but cash is important in terms of this one everyday money tip that you're going to share.
Courtney Reum:
Yes. I always keep an emergency $100 bill, just for a rainy day, in my briefcase. My briefcase is more of a tech Tumi backpack, but I always keep it in there, try to always replenish it when I use it, and as silly as it sounds, obviously it takes up no room and there are so many times where I'm some place, I'm like, "I have no money," I'm like, "Wait. The emergency 100." I would encourage people, whether it's an emergency 20 or 50 or 100, whatever it is, always hide it from yourself so you don't use it too often, but then always have it available.
Bobbi Rebell:
Great advice, and something we all should definitely do. All right, let's talk a little bit more about M13. Where are you taking this company? Because this was basically formed after you sold Viiv, what's happening with it next and what should we look forward to hearing about?
Courtney Reum:
Yeah, as I alluded to, I think our whole thing when we sold Viiv, was we had started and operated some companies, we had been on the boards of a bunch of other companies and thankfully been successful. For example, there's a probiotic and kombucha line called KeVita, that Pepsi bought a couple of years ago. Basically, all consumer tech companies, we probably made, at that time, maybe three dozen angel investments, and we said, "You know," we tried to step back and do the proverbial lift your head up, see where the world's going, and we thought yeah, of course we could, we had plenty of ideas, we could start a new company, try to make it successful, sell it or not sell it.
Courtney Reum:
But we really think we're living in this golden age of creating brands, again, we focus on consumer tech brands, and by that I mean consumer brands that tend to be techable, so that can be anything like direct to consumer online brand, or even something like a Lyft that we're big investors in, or Pinterest.
Bobbi Rebell:
Right. Give us some more examples. Yeah, drop some names.
Courtney Reum:
Drop some names, okay. Let's see. Right now I'm wearing Bonobos pants, Warby Parker glasses, some of the mattress companies, so it's all things that we basically believe that every consumer brand needs to be saying to themselves, "How can it more of a media and tech company?" Because what's really changed is that this is the golden age of creating brands. I saw a funny meme the other day that was like I want to create a brand and someone says, "How should I do it?2 he goes, "Oh, it's really easy. You just get someone to give you a name, a logo, and then you make it in China and you sell some ads on Instagram." It obviously a joke, but there's some truth to it.
Courtney Reum:
What we're trying to do is institutionalize the process of brand building. Obviously nothing is one size fits all, but there are things that I get asked every single day like, "Hey, do you know a good digital marketing agency? Do you know someone who does that?" Rather than do the analog way of replying to every one of those, or thinking about who I know or who did I come across that week, we have actually taken all of our learnings and put it into what we call our M13 playbook, which is literally a digital repository of all our best practices and best resources. That's contacts, that distribution strategies, that's broker partners, those are relationships, and have actually put it in a format that we believe if we do this well, will help brands start faster, more time efficiently. Our book is all about time is the new money, so it's about trying to launch brands at scale so we can do it in a repeatable way and launch brands more quickly and more often than we previously would have been able to.
Bobbi Rebell:
Cool. Tell us more about where people can find out more about you and Shortcut Your Startup, which is your book, and all your social channels. I know you're a little bit shy about being too promotional on social, but people can at least see pictures of your adorable mom on your social right?
Courtney Reum:
Right, exactly. If nothing else, please read the first page of my book because it's dedicated to my dad, and please look at my social media to find my mom. My Instagram is really easy, it's just my first name and last, @courtneyreum. If you find another one of those, I would be shocked, so it should be easy to find me there. M13.co, not .com, .co because it's more trendy now.
Bobbi Rebell:
Oh, is it? Okay.
Courtney Reum:
Yes.
Bobbi Rebell:
I learn so much from you Courtney.
Courtney Reum:
Yeah. I don't do a ton with LinkedIn, but I think I've gotten about three or four requests since we've been sitting here, so that's the world we're living in, and our book, shortcutyourstartup.com, there's a website, and then of course, since the whole world is on Amazon Prime, you can certainly find us there too.
Bobbi Rebell:
Courtney, I'm so excited to see how much more you accomplish. You're so impressive. Congratulations on everything.
Courtney Reum:
Thank you so much for having me. It's been a lot of fun.
Bobbi Rebell:
Here's my take on Courtney's money story and what he had to say. Financial grownup tip number one. We focused primarily on the fact that Courtney's parents did spend a lot of time preparing or money on everyday meals, and left that to the once a week sushi splurge, but Courtney also said something very important, and that is that they ate together as a family pretty much every night. Research has shown that leads to high achievement in kids, specifically dinnertime conversation boosts vocabulary for young kids, and for school-age kids, regular mealtime is a powerful predictor of high achievement scores, more so than time spent in school, doing homework, playing sports and doing art.
Bobbi Rebell:
There's even more. Other research found that teenagers who ate family meals five to seven times a week were twice as likely to get As in school as those who ate two or fewer times a week with their families. Full disclosure here, I am aspiring to this, it is not happening yet, so I'm going to put that on my fall to do list. I will leave a link to the research in the show notes. If you want to learn more, you can find those show notes at bobbirebell.com/podcast/courtneyreum. C-O-U-R-T-N-E-Y-R-E-U-M.
Bobbi Rebell:
Financial grownup tip number two. Courtney talks about checking the bill, and how the mistakes are usually not in your favor. No matter how much money you have, check the bill. I'm not alone in having caught so many things on bills that just should not be there. It happens so much, and as for tipping, I do believe you still aren't expected to tip on the tax, even though tipping expectations have certainly gone up in recent years.
Bobbi Rebell:
By the way my friends, did you catch the random knowledge about phone numbers that Courtney shared? Rewind if you need to. I was fascinated. Maybe everyone knows that and I'm the only one. Anyway, Courtney crammed some amazing wisdom into this episode, raising the bar for my future guests, just saying. Keep an eye on this guy, and thanks Courtney, for helping us all get 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.
As a young woman in New York City, Randi Zuckerberg, author of “Pick Three: You Can Have It All (Just Not Every Day)" was struggling financially. Her mom, knowing the financial strain, came armed with… luxury goods. Think Jimmy Choo shoes. But as Randi explains, the designer duds were part of a very intentional lesson, that put Randi right on track to being a financial grownup.
In Randi’s money story you will learn:
-How Randi struggled to make ends meet on her first salary of just $28,000
-Why Randi’s mom would take her out and buy her luxury goods, but not help her with her every day expenses
-What Randi did when she literally could not afford to buy a metrocard for the NYC bus and subway
In Randi’s money lesson you will learn:
-How her mother’s strategy helped Randi find her path to financial independence
-If Randi still has all those shoes!
-The one thing Randi would change when she teachers her own children about money
In Randi’s money tip you will learn:
-Why she is paying attention to Bitcoin and Cryptocurrency
-How you can learn more about Bitcoin and Cryptocurrency
In My Take you will learn:
-How to manage social media envy
-The specific thing you can do with your own social media content to improve your experience and that of your friends
-Why and how you can learn more about bitcoin and cryptocurrency
Episode Links:
Learn more about Randi on her website Zuckerbergmedia.com
Get Randi’s book! Pick Three: You Can Have it All, Just Not Every Day
Learn about Cryptocurrency from Randi in this tutorial
Follow Randi!
Facebook Randi Zuckerberg
Instagram @RandiZuckerberg
Twitter @RandiZuckerberg
Also mentioned
Statement Event
Empower App
Transcription
Bobbi Rebell:
Support for Financial Grownup with Bobbi Rebell and the following message come from TransferWise, the cheaper way to send money internationally. TransferWise takes a machete to the hefty fees that come with sending money abroad. Test it out for free at transferwise.com/podcast or download the app.
Randi Zuckerber:
You know, I would turn to her and I would be like, "Mom, I love these Jimmy Choo shoes but I really could use help with my rent, or I could use help with food and things like that," and she was like, "Nope."
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. 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:
Hey everyone, my friend Randi Zuckerberg is known for a lot of things. It would take an entire podcast to name them all, so some highlights. She is a bestselling author of Dot Complicated, a Broadway actress and singer with a head star in Rock of Ages. She is the founder and CEO of Zuckerberg Media. Randi is also the force behind Sue's Tech Kitchen, she's got her weekly Sirius XM show, and oh, by the way, she created this little thing called Facebook Live. But her most recent project is Pick Three, which is a book about priorities, and with all that Randi has going on you bet she has had to get a handle on how to focus on what matters most, even if that changes every day. Here is Randi Zuckerberg.
Bobbi Rebell:
Randi Zuckerberg, you are a financial grownup, welcome to the podcast.
Randi Zuckerber:
Thanks so much Bobbi, it's great to be here.
Bobbi Rebell:
Major congratulations, another, in this case soon-to-be bestseller, your new book Pick Three: You Can Have It All (Just Not Every Day). We're going to talk more about that later on, but just high level, this is something you've had in your head basically for your whole adult life. Tell us briefly about the concept, and then we'll do more about the book later.
Randi Zuckerber:
Sure. Well, we're all juggling so many things. I know you and I, we both, we're entrepreneurs, we're moms, I feel like there's so much pressure on all of us to be perfect at everything we do. Especially you log onto Instagram and everyone's lives look so perfect and so amazing, and then it's easy to sit there and think, "Gosh, how come I don't have my act together? Why don't I have it all and have that perfect balance?" And what I've really started to feel over the years is that it's just, it's time for us to stop carrying so much guilt around. Nobody has it all. Nobody has perfect balance, no matter what their lives might look like on Instagram. And so when I thought about the times in my life I felt most proud of my accomplishments, it was not when I was balanced. It was when I gave myself permission to just prioritize and go for it in a few areas of my life, so that's what I'm writing about. It's called Pick Three, and it's work, sleep, family, friends, fitness - pick three.
Bobbi Rebell:
Awesome. And by the way, just to show how much I love this book and how obsessed I am, I actually made notes in the book already. You can learn more about Randy's philosophy on social media and how our lives always look better online, page 211. That was one of the things that I flagged. So that's how good her book is, I have a book full of little post-it notes. Okay, we're going to go back to the book, but I want to talk about your money story, because it's something that I actually related to, because something very similar happened when I was a young adult, in my case also in New York City. Tell us your money story, because it has to do with the way that your mother taught you to earn your own money, but yet still was supporting you in different ways.
Randi Zuckerber:
Totally. And it's funny, because I didn't really learn the lesson of this story until many years later. In the moment, it felt kind of random, and now I'm so thankful to my mom for that. So in the book I go a bit deeper into the story, but when I was right out of college I landed a job at an ad agency. I was making I think $28,000.00 a year, which to live in Manhattan, that just doesn't work. I was in this apartment that was probably supposed to be a one-bedroom but there were four of us that were living in it, and my part of the apartment was a fake wall partitioning off a corner of the living room.
Bobbi Rebell:
Probably illegal, too.
Randi Zuckerber:
Yeah.
Bobbi Rebell:
We know all about those.
Randi Zuckerber:
Yes, I'm sure it was illegal, and it was taking up an entire paycheck every month. And my mom lived about an hour outside of the city. We've always been such close friends, my mom and I, and she would come into the city to take me out for dinner because I definitely couldn't afford to go to a restaurant on my own. And then she would be like, "Let me help you out," and she would take me shopping, and she would buy me fancy shoes. Like Jimmy Choo. Like the fancy-
Bobbi Rebell:
Where were you going in the Jimmy Choos?
Randi Zuckerber:
I know. And I would be like, "Mom, that's so nice of you to buy me Jimmy Choo shoes, but can you help me pay my rent? That's where I really need help."
Bobbi Rebell:
At one point you couldn't buy a Metro Card, right?
Randi Zuckerber:
That's right. There was one month that I had to walk everywhere because I didn't budget well, and I couldn't afford the $120.00 or whatever it was at that time for a monthly Metro Card. And so I walked everywhere in Manhattan for a month. That's kind of the state of how I was living.
Bobbi Rebell:
Were you walking everywhere in the Jimmy Choos, though?
Randi Zuckerber:
I know, right? Luckily I had fancy shoes to walk in, so you know, good for that. But I would turn to her and I'd be like, "Mom, I love these Jimmy Choo shoes but I really could use help with my rent, or I could use help with food and things like that," and she was like, "Nope." She was like, "You know, it's really important that you make it on your own, you're a professional woman. It's really important that you cover the basics of your life on your own." She's like, "But I'm here to show you what to aspire to."
Bobbi Rebell:
Wow.
Randi Zuckerber:
"The reason that you're working hard and to show you that it's okay when you do make that money later in life to treat yourself, and just spend a little bit of that money on yourself."
Bobbi Rebell:
Nice. So for our listeners, what is the lesson from that? What is the takeaway? How can they apply it to their own lives?
Randi Zuckerber:
For me at the time, it definitely felt a little frustrating. It was frustrating that I could barely afford a Metro Card but I had this closet full of beautiful designer shoes. But at the end, when I do look back now on those periods of my life, I'm proud of myself for supporting myself. Even though it was hard. Even though I was barely making any money at all, I look back on those years with pride that I took care of all my own living expenses, that I made it on my own. And I actually still have those Jimmy Choo shoes in my closet as a reminder, the first big girl items that I really ever owned, and they always serve as a reminder to me that the reason that we work so hard in life is not just to accumulate wealth or status. It's so we can treat ourselves and we can treat the people we love, and we can really enjoy our lives and our money.
Bobbi Rebell:
And so would you do the same lesson with your own children, knowing what you know now?
Randi Zuckerber:
Maybe I would keep the receipt in the box in case they needed to return it to help pay their rent. My mom used to take-
Bobbi Rebell:
So wait, did you ever try to return the shoes?
Randi Zuckerber:
No, she purposely would take the receipts home with her so I couldn't, and in those days there wasn't eBay to sell them on or things like that. But honestly, if my kids were motivated and ambitious and driven enough to think of ways to resell them, then that's great, that's teaching them an entrepreneurial lesson.
Bobbi Rebell:
All right, let's talk about your money tip, because it's something we haven't talked about here on Financial Grownup, in part because I don't know a lot about it, and that's kind of your point. What is your money tip?
Randi Zuckerber:
So my money tip is to make sure that you're not just focusing all of your effort on learning about the systems that are already in place. Make sure that you're spending some time thinking about the new financial trends that are going to be coming out in the next few years. Specifically I think the biggest trend that's going to hit this industry is cryptocurrency and blockchain. I know I've personally spent a lot of time over the past two years learning about this space and educating myself, and I think it's so important for women especially to learn about this space, because right now only about 2% of cryptocurrency is owned and traded by women. And ladies, what's the use of catching up with our financial knowledge over here if we're then just going to be completely left behind in ten years on the next new thing that's making all of these new millionaires? I don't know about you guys, I don't want to be left out of the next thing that's making all these millionaires, so I think it's really important, even if you're not investing in this space, to at least understand it enough to be able to participate.
Bobbi Rebell:
Where is the best place people can learn more about it?
Randi Zuckerber:
I love listening to a lot of podcasts. I actually am so passionate about educating women that I literally just sat in my closet with a microphone this week and recorded a two-hour introduction to Bitcoin and Blockchain that I'm about to release. So I'll definitely give you more information on that, and it's specifically designed to teach women the basics of crypto.
Bobbi Rebell:
Perfect. So now we have where we can go, I will make sure to put the link into the show notes for everyone. So that's your gift to our listeners, thank you so much, Randi. This is great. Okay, so now we get back to what I really want to talk about. So I've got this book here with all of these ... I almost ran out of post-it notes, because I have so many post-it notes in the book, and we have to keep it short because this is a short podcast. But it's basically about being lopsided and being okay with that. And that's almost how you got into college, was just saying, "I'm not going to apologize for not being balanced."
Randi Zuckerber:
Totally, well I think, and I'm sure, Bobbi, when you think about the things in your life you're most proud of, the things you hope we're alive to tell our great-grandkids about, each of us have three or four things on that list that we're super proud of. It's probably not times in your life that you were super well-balanced. For me, that list right now is completing a marathon, singing on Broadway, being part of Facebook, and having my two children, and not one of those four things happened when I had balance in my life.
Bobbi Rebell:
Wow.
Randi Zuckerber:
All of those things happened when I really allowed myself to just go for it and be super lopsided and prioritize a few areas in my life at one time. And so I want to give especially women out there permission to pick three. Pick a few things in your life that you want to prioritize, because there will be other times and other phases to pick other things and round out your life. But just give yourself the permission to go for it and be excellent in whatever you want to do without the guilt.
Bobbi Rebell:
I love it. One of my favorite areas was when you talk about quick fixes if you're feeling exhausted, and I say that because this book is also very practical, because people feel overwhelmed and there are very specific solutions in the book. Even at the end there's worksheets so that people can make it applicable to their own lives and really make it specific and actionable.
Randi Zuckerber:
Thank you, well you know, I live in the real world. In an ideal world we'd all be getting a lot of sleep every night, and going to the gym, and spending time with our children every day, and doing all of these things, but at the end of the day we all live in the real world, and I know that there's some days that you just cannot pick sleep. Your kids are sick, you have a deadline at work, there's something going on, you have an early plane to catch, so I tried to also, while encouraging people to pick different areas, also tried to give some hacks to actually get around it and still function in your life if you can't pick that one area.
Bobbi Rebell:
So it's three, and the five things that you're picking three from are sleep, work, friends, family and fitness, and the great thing about the book is you break down each one.
Randi Zuckerber:
Yes. I try to break it down, and I also really tried to interview a mixture of people across all ages and walks of life. Because if you're in the position that you can pick which areas of your life you want to prioritize then you're in a real state of privilege, that everything in your life is going so well that you can choose. There are a lot of people out there who have life circumstances where they just can't choose what they want to focus on. Life picks for them. And so I wanted to make sure that all different people are represented.
Bobbi Rebell:
Randi, where can people find you and learn more about everything you're up to, including Pick Three?
Randi Zuckerber:
Thank you so much, I have been known to be available on a few social media channels.
Bobbi Rebell:
A few.
Randi Zuckerber:
Yup, [inaudible 00:13:14] Facebook, and one's owned by Facebook. But yes, you can find me on Facebook, on Instagram and Twitter, I'm @randizuckerberg, and then Pick Three is available on Amazon or any of your favorite bookstores. I love indie bookstores and promoting them, so go pick it up at a cool indie bookstore near you.
Bobbi Rebell:
Congratulations on all, and keep in touch.
Randi Zuckerber:
Thank you so much Bobbi, this is awesome, love your podcast.
Bobbi Rebell:
Hey friends, I think we all have a good sense of how Randi stays so grounded despite literally being on the go all the time. I have been personal witness to that. Prioritize and keep perspective.
Bobbi Rebell:
Financial Grownup tip number one: You may have noticed that one area of Randi's book really hit me. All of our lives look like so much fun online. So many of us, myself included, have felt a little wistful when we see photos and videos of friends who always seem to be vacationing while in the perfect outfit, and going to a fantastic concert where of course they get to see Beyonce and hang out with her and Jay-Z backstage. Just kidding, but only about part of that. But we are all actually usually happy that they're having fun, it's not necessarily competitive, but still. Remember, it is a curated version of their life. Real life can't be edited, and filters don't work outside of the digital world. Randi's advice that really resonates with me? Flip that back to what you can control, and be a little more intentional about what you post, about the image that you put out there to other people. Don't just post your own perfect moments, try to be more authentic with your social media, and maybe we'll all get the hint and be a little more real.
Bobbi Rebell:
Financial Grownup tip number two: Let's all go out and learn about Bitcoin. I said learn, not invest, though you can if it's right for you. The truth is, as Randi said, we may be missing a big opportunity. I always think of famous investors like Warren Buffett who say they don't invest in anything they don't understand. So let's understand and make a decision from a point of understanding and information. I was recently at a retreat called Statement Event, it was women thought leaders, a very small group of us, about 17. We had dinner with a CEO of a company called Empower, and he asked this group of all women how many of us talked about Bitcoin as an investment option for our followers or listeners. The room got silent. He asked, had we really investigated? Nope. I'm going to check out Randi's tutorial, and I will leave the link for you guys as well. Let me know what you think. Make sure to pick up your copy of her new book, Pick Three: You Can Have It All (Just Not Every Day) and write a review for Randi. Authors love reviews.
Bobbi Rebell:
Thank you all for your support. The show has been growing, so please keep sharing on social media, writing reviews on iTunes aka Apple Podcast, and subscribing if you have not already so you don't miss any upcoming episodes.
Bobbi Rebell:
Do you have a money story that you want to share? Maybe a great money tip? We are starting to have listeners as guests once a month, so to be considered email us at info@financialgrownup and just tell us what money story and money tip you would share if you are chosen.
Bobbi Rebell:
To learn more about the show, go to bobbirebell.com/financialgrownuppodcast. Follow me on Twitter @bobbirebell, Instagram @bobbirebell1, Facebook I am at Bobbi Rebell. Randi Zuckerberg really nailed it in this episode, helping us all get 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.
Consultant Julie Finn loved her her consumer products strategy career and says her employer, Deloitte, did everything possible to accommodate her lifestyle needs as a mom. So no one was more surprised than she was when she opted for an early exit strategy.
In Julie’s money story you will learn:
-How Julie left two major jobs but each one was a completely different exit strategy
-Julie’s strategy of applying the same financial criteria to job choices as wel do to other major financial choices like buying a home.
-How Julie’s employer, Deloitte, was family friendly and did what they could to accommodate her needs.
-Why the decision to leave was not an obvious one
-The advice she received from mentors that led her to her life changing decision
In Julie’s money lesson you will learn:
-As well-intentioned as an employer may be- the job may not be a fit forever
-Age should not hold you back from leaving a job that is no longer the right fit for your goals and needs
-The importance of structure and planning in making a major career shift- and how to get it
In Julie’s everyday money tip you will learn:
-The importance of continuing to learn even as you progress through your career
-The value of online courses as well as coaching
-How to save money on skill building education
-Not to try to go it alone- reach and and get the right help
-How to make decisions about priorities when it comes to investing in further career education
Bobbi and Julie also talk about:
-The Working Mothers Mentor Podcast
-Julie’s career coaching for executive women
-How side hustles can help in the decision making process
-How listeners can support working moms, especially who don’t know where to get the help they need
In My Take you will learn:
-The importance of a gracious exit from a company
-Why it is important strategically to stay in touch and on good terms with co-workers and supervisors even after you leave the job
-Ways to get discounts on online education courses
Episode Links
Learn more about Julie Finn and The Working Mother’s Mentor:
Theworkingmothersmentor
Follow Julie!
Twitter @mothersmentor
Instagram @theworkingmothersmentor
Facebook The Working Mothers Mentor + join her community!
IRS info on education deductions
https://www.irs.gov/taxtopics/tc513
This is a quick way to determine if you can get an education credit
https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit
Udemy https://www.udemy.com/
Coursera https://www.coursera.org/
Teachable www.teachable.com
Transcription
Julie Finn:
You know when I took a job, in my head it was my forever job. It was, "I'm going to retire from this company." Because I had the structure, because I had the support, I had a very clear plan and I had very clear strategy in place and that made all the difference.
Bobbi Rebell:
You're listening to Financial Grown Up. With me, financial planner, Bobbi Rebell, author of How to be a Financial Grownup. You know what? Being a grown up 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:
Hey Financial Grownup friends. I remember my first day at my first post college job as what was called a news associate at CNBC and thinking, and this is true, "This is literally the best job on the planet. I can't believe I got the job. There's money associated. It comes every two weeks. I would literally be happy doing this job forever." I wanted it to be my forever job. I hope you guys have all had that feeling, the excitement and optimism of working somewhere you hope you can stay forever.
Bobbi Rebell:
That was Julie Finn at Deloit. She climbed her way up in the consumer product strategy field and had finally made it. They were super family friendly there. Whatever she needed, they were going to work with her to make it happen. But then, something changed. We'll get to that in a sec.
Bobbi Rebell:
But just quickly, welcome to our new listeners. So excited the show continues to be discovered and thank you to all of you regulars for sharing it. Please keep telling your friends. Word of mouth is everything. It is the best way for people to find out about our program. It matters a lot. We keep it short, as you guys know, around 15 minutes, but a lot of our listeners like to stack a few together. Think of it like flex time for podcasts.
Bobbi Rebell:
Let's get to Julie. She is a business coach and host of the Working Mother's Mentor Podcast, but it was not long ago that she was in what she thought was her forever job, until we now know, it wasn't. The story gets really interesting. Here is Julie Finn.
Bobbi Rebell:
Hey, Julie Finn. You're a Financial Grownup. Welcome to the podcast.
Julie Finn:
Bobbi, thank you so much. I'm excited to be here.
Bobbi Rebell:
And I'm excited to learn so much from you because you are a business coach and you host the Working Mother Mentors Podcast, which is very popular. I hear you have some great guests on there.
Julie Finn:
Like you.
Bobbi Rebell:
You've actually turned a lot of your life experience into things that you are teaching so many others so that's great. Congratulations on all your success.
Julie Finn:
Thank you. I really appreciate it. It's been quite a journey. It's so fulfilling to be able to do work that you love and to know that you're serving others and empowering and inspiring others so it's been fantastic.
Bobbi Rebell:
And you brought a money story with you that has to do with something that can be very delicate and really has to be handled the right way in order to have the right financial future, financial exit, I should say and that is my not so sophisticated way of saying that you're going to talk about exit strategies and the different ways that you've handled them at different points in your career. Go for it.
Julie Finn:
Yes. That's exactly right and that's funny because when you sit down and think about it, career choices, the choices to take a job or to leave a job, are really some of the most important financial decisions that we make, but we often don't frame them that way. We frame buying a house or making an investment as a financial decision, but oftentimes when we think about career, we don't think about it that way. Particularly for those of us who have made decisions around leaving jobs later in our careers. I have two big leaps. One in my 30s and one in my 40s and those are massive decisions. When I look back over those choices that I've made, it's interesting to see how I've matured and I approached it very differently when I was in my 40s than I did when I was in my 30s.
Bobbi Rebell:
So let's get specific. Tell us what happened.
Julie Finn:
So when I was in my 30s, when I was making the decision to leave a job, it was really based on the fact that I'd just had my first child. I wanted to go part-time. I wasn't able to do that. I felt backed into a corner. It wasn't a positive, happy, leave. It wasn't a leave that was planned in advance. It wasn't strategized. It was more of a leap versus fast forward about ten years. I really worked hard with the company, and it was Deloit and they were super family friendly. They tried very hard to accommodate what I needed at that stage.
Julie Finn:
What I found is that dropping to part-time, which is what my intermediate solution was, wasn't the silver bullet that I envisioned it to be. I think for a lot of working moms, we think, "Wouldn't it be great if we could have a big corporate job with full benefits and work part-time and work from home?" That for me was the holy grail. It's what I had written down on a piece of paper that's what I wanted. That's what Deloit provided for me.
Julie Finn:
The decision to leave was not an obviously one. It was a really difficult one because I had a "good job". I knew that if I was going to make a leap from a job like that, it had to be based on something really compelling pulling me, and it had to be based on a really logical strategy.
Julie Finn:
What I did this time in making that decision, is I got support. I worked with coaches. I took online courses. I went to conferences. I made sure that I surrounded myself with others who made similar decisions. I sought out support from my mentors. It made the decision a positive one and it made the transition a successful one.
Julie Finn:
I found that even though I loved my company and I had a great time, I wasn't passionate about the work and I knew there was other work I wanted to be doing. Historically, I did consumer product strategy which is great training and I got to work with a lot of great clients and great people, but what I'm passionate about is inspiring and supporting women, particularly professional women in living the big life that they are here on earth to live, to overcome the fears and the doubts, to stand in their power.
Julie Finn:
I got frustrated working with so many really smart women who would doubt themselves and who often were making trade offs when children came into the mix and they didn't really know how to handle it. That's part of the reason why I started the Working Mothers Mentor, first as the podcast, to give people inspiring stories behind the scenes of really successful people to show you not only how they juggle everything but how they made career decisions, how they built their business, and to show you the messiness, not just the shiny, glossy stuff that you often see. Then also providing actual support through programs and coaching.
Julie Finn:
So the transition from Deloit has been a really positive one.
Bobbi Rebell:
And part of the takeaway of that is as good willed and as well intentioned as the company may be, that does not mean it is your forever job.
Julie Finn:
That's exactly right and that's part of the reason why it was such a hard decision because I was already over 40. When I took a job, in my head it was my forever job. It was, "I'm going to retire from this company." So making that decision to leap into entrepreneurship in my mid 40s, for a lot of people, it's a very scary time to make any kind of massive career change.
Julie Finn:
For me, part of my tip for people, is make sure if you're making any kind of pivot or massive change that you don't try to do it unsupported and you don't try to do it unguided.
Bobbi Rebell:
So what is the lesson for our listeners from your story of leaving Deloit for your own entrepreneurial adventure?
Julie Finn:
The real lesson is don't make any big leap of any big decision unsupported and unguided. I think when I look back over the different decisions I've made in my career, early in my career I often felt like I was winging it whereas with this leap, because I had the structure, because I had the support, I had a very clear plan and I had very clear strategy in place and that made all the difference.
Bobbi Rebell:
Let's talk about your every day money tip because that also goes along this theme but let's get very specific. What is it? What could people do?
Julie Finn:
I think it's very important for us all, all professionals whatever level you are, to continue to invest in yourself in terms of your education and your access to expertise. What I mean by that is in addition to reading books and having mentors, think about online courses, think about investing in a coach, think about going to conferences. I think for a lot of us, particularly when the busyness of family life and trying to keep our career on track, when that comes in development seems to disappear. We might do something in our company. They'll have professional development but I'm talking about you personally, things that are important for you.
Julie Finn:
For me, like I said, part of what made the decision easier is the fact that I invested. I took online courses to improve the skills where I needed. I invested in coaches to give me the confidence where I needed it, to give me the push where I needed it, to give me the guidance where I needed. The important lesson here is don't try to go it alone. Make sure that you continue to invest in yourself and that way when you are making these big decisions you're completely educated around them.
Bobbi Rebell:
Now are the ways that people who maybe tight on money can better afford these things because it can get expensive and where is the balance there? Because you're struggling to pay your bills, you want to build up things like and emergency fund so you maybe can take the leap to be an entrepreneur. How do you know how much is the right amount to spend in time and money.
Julie Finn:
That's a really great question. In terms of time, I think for a lot of us, we would say we don't have enough time. So it is about making the decision to prioritize. I think when you take a step back and look, you can certainly find maybe it's two hours a week, maybe it's for a season, maybe it's a weekend conference. It's about the prioritization, making the time.
Julie Finn:
In terms of money, we should all start to work on having a development part of our budget. Again, if you take a look at your budget and if you look at things that maybe you're spending money on, getting your nails done, or getting your hair done, or something that feels maybe a little bit less necessarily. If you took some of those resources and invested in attending a conference or working with a coach or if you can't afford a coach one on one, investing in a group coaching program. That's often a way to have access to a very seasoned, experienced coach but without having to pay the fee that you would pay for one on one attention.
Julie Finn:
I think the other thing is there are a lot of great platforms where you can access online platforms that are less expensive like Udemy, Teachable. So you can find courses for as little as $69. Some of the more sophisticated courses obviously can cost you a thousand, two thousand dollars, but you can get started with any budget.
Bobbi Rebell:
Thank you so much. So tell us more about what's going on with you, because I know you offer some of this.
Julie Finn:
Yeah. We're having a great time over at the Working Mothers Mentors. In addition to the podcast, we have a group coaching program that's launching soon. That's really designed to support women who are considering leaving their corporate jobs in order to start a business either as what a lot of people affectionately call a side hustle or to fully replace their full time income. We also offer group coaching and one on one coaching programs. The idea is really to support working moms who often feel like they're juggling so much and they don't really know where to go for support. That's really our mission.
Bobbi Rebell:
Where were you a few years ago? I needed you so much. I'm so happy that you're here now though doing all this for so many people that will really benefit from it.
Julie Finn:
Thank you so much. That's exactly why I do it. I needed me ten years ago and I needed me again three years ago and I couldn't find me and so I decided to become me. So thank you.
Bobbi Rebell:
Before I let you go, tell us all the social channels and where people can find you.
Julie Finn:
Our website is theworkingmothersmentor.com and that's a great hub to find out more about our coaching programs, to find out more about the podcast. The podcast also called the Working Mother's Mentor. You can certainly access on any platform where you currently listen to podcasts like your podcast. On social, you can find you on Facebook and Instagram @theworkingmothersmentor. Twitter @mothersmentor and me personally, Julie Finn, on LinkedIn.
Bobbi Rebell:
You're the best, Julie.
Julie Finn:
Thank you, Bobbi.
Bobbi Rebell:
Hey friends. So companies have a long way to go towards keeping more women in the workplace, but Julie's story at least shows real progress at some. No hard feelings, it just didn't work out.
Bobbi Rebell:
Financial Grownup Tip #1: If and when you leave a company, take a we from Julie and be gracious. As great as Julie's story is, sometimes we don't have the best feelings when we leave a job, and it is really tempting to let them have it, but the truth is, those former coworkers and bosses could well become the best assets you have in your future business ventures.
Bobbi Rebell:
Financial Grownup Tip #2: Julie mentioned the importance of investing in continuing education throughout your career. You know I'm a big fan of this. Many online courses are actually free and those that are not often go on sale. Sometimes your employer will pay for your classes. Make sure that you know if there are any requirements like getting a certain grade. If your employer does not pay, you can also often deduct education from your taxes if it meets certain criteria.
Bobbi Rebell:
I'm going to leave some links in the show notes bobbirebell.com/podcast/JuliFinn. I was also leave links to some popular online course websites like Udemy, which often has sales as I mentioned, classes can be under $10 there, and Coursera which has partnerships with universities including my alma mater, Penn.
Bobbi Rebell:
Thanks to Julie for candidly sharing her amicable breakup. It is one thing to storm out of a job you hate. It's another to just well not be that into it anymore and leave in search of finding your true love in terms of your career.
Bobbi Rebell:
So thank you to Julie for helping us realize sometimes life isn't so clear cut and getting us 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.
Philip Taylor, aka PT Money was too cool to do any research, or any real negotiation when buying his first car. But the crushing payments, and having to call his dad for help, quickly brought him back to reality.
In PT’s money story you will learn:
-Why PT felt guilty and went into a panic after buying his first car
-How he determined what car to buy and the budget
-The exact steps he used to buy his first car
-What his costs were relative to his financial resources
-His negotiation strategy
-What happened when he got home and made a huge decision
-How he tried to correct the mistake himself
-Why he reached out to his father for help, and how the situation was resolved
In PT’s money lesson you will learn:
-How to know what to pay for a car and how to negotiate it in advance
-The specific steps PT now uses to buy cars
-The best ways to finance a car purchase
-How you can avoid the pitfalls PT experienced
-The exact resources PT uses when buying a car
-Other skills PT now has to be a financial grownup
In PT’s everyday money tip you will learn:
-How PT and his wife have streamlined their grocery shopping
-How to balance saving money with saving time
-How to avoid buying things you don’t need when food shopping
-Strategies to get grocery shopping done with kids in tow
-When to pay fees for grocery related services
In My Take you will learn:
-Don’t let your pride get in the way of correcting a mistake
-When free is not the best value
-What to look for in a business where you are paying a fee for service to determine if it is worth paying the extra money
Episode Links:
PT’s website https://ptmoney.com/
Come to Fincon! Learn more here.
Follow PT and Fincon!
Twitter: @PTMoney @Fincon
Instagram @PTMoney @finconexpo
Facebook PTMoneyblog Finconexpo
Car resources PT mentioned
Edmunds
TrueCar
KellyBluebook
Craigslist
Grocery resources PT mentioned
WalMart
Kroger
Target
This episode was taped at Podcast Movement
Transcription
Philip Taylor:
I all of a sudden felt a rush of severe guilt and severe panic that I think I've actually put myself in a big hole here. I felt embarrassed that I couldn't have gone into the dealership and made us smarter choice. And I tried to call the dealership up and say, "Hey, would you guys take this car back?" And I think they got laughed at me over the phone.
Bobbi Rebell:
You're listening to Financial Grownup with me Certified Financial Planner, Bobbi Rebell. Author of How to Be a Financial Grownup. But you know what, being a grown up 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:
Hello my Financial Grownup friends. Making your first really big purchase, is a really exciting. But it's also a reality check. That is what you are hearing in the voice of Philip Taylor, known to many of his fans, as PT money. He later went on to start a huge money content conference called FinCon, which we'll talk about later. Welcome to the podcast to everyone. We keep it to about 15 minutes because you're busy. We're focused and intentional in bringing you a mini story and a lesson from that mini story, and then we'll always give you what I call an everyday money tip and specific ways that you can put it all to work in your life. All right, so let's get to PT's story. It is about buying his first car. But as you will hear, it is also about learning that even if you are legally an adult, you sometimes have to be humble and make that call to your dad. I was able to connect with PT at Podcast Movement in July. So you're going to hear a little bit of that in the background. Here is PT.
Bobbi Rebell:
Hey Philip Taylor, aka PT aka PT Money. You're a Financial Grownup. Welcome to the podcast.
Philip Taylor:
Thanks for having me on Bobbi. It's great to be here.
Bobbi Rebell:
This is an honor for me because we are approaching year three for me of your venture FinCon, which is a big conference for money people. Tell us quickly about it, and then we're going to get your money story.
Philip Taylor:
Yeah. It's a digital marketing conference for people who talk to people about money. So if they're out there, whether they're the Dave Ramsey type or the Suze Orman type, they're reaching people with a financial message. We'd like to have them at the event and show them how to do it better.
Bobbi Rebell:
And you're going to show us how to do buying a car better. Tell us your money story.
Philip Taylor:
Yeah, my money story is this. When I was, let's see, 22, 23 left college. Thought it was a big time college graduate with my new career.
Bobbi Rebell:
What was your new career?
Philip Taylor:
In accounting. So I was going to go work for one of the big financial firms, big accounting firms. My salary was 33,000. And through college, my parents had most have helped me out with a lot of the financial expenses. I had took out some student loans to help me out with some of the college. So, for the most part, I hadn't really managed my own money yet.
Bobbi Rebell:
But you were in accounting just to be clear.
Philip Taylor:
But I was in accounting. Yeah.
Bobbi Rebell:
Okay.
Philip Taylor:
And I knew some of the high finance stuff at that point. But I didn't know really how to handle my own money. And I was kind of naturally a spender. So, left for the new job that I had this big paycheck coming in, and the world was mine, right?
Bobbi Rebell:
And what were your other ... were you paying rent? What else was going on financially with you in terms of your overhead? Were you living with mom and dad?
Philip Taylor:
No, I moved into an apartment with some buddies. I was at least splitting I guess rent with some friends. But it was the nicest apartment in town because here we were big time college grads now, we could afford it all, right? And the next thing I wanted to do is run out and buy a brand new car, like a brand new SUV. I think it was the Mitsubishi Montero Sport had just come out. And it was this brand new SUV and it was 1999. So that dates me a bit. But it was like this beautiful vehicle that I thought now I had earned the right to go by.
Bobbi Rebell:
Okay.
Philip Taylor:
And so I kind of just blindly went down to the dealership.
Bobbi Rebell:
Now did you bring your buddies? Did you bring a family member? Anyone?
Philip Taylor:
No. The ego was there and I was like, I'm an accountant. My dad's a CPA. I can go figure this thing out.
Bobbi Rebell:
So you did the research that you knew what car you wanted, but anything on pricing financing anything? [crosstalk 00:04:05] my young accountant.
Philip Taylor:
No. I did None of that. I literally went down to the dealership thinking, I'll just work it out when I get there. I think my buddies and I were going to go on a trip the next weekend. And so it was in my mind that I would have this SUV by the time we went on this trip. I left my old car there for whatever they were going to give me for.
Bobbi Rebell:
Did you negotiate that?
Philip Taylor:
I didn't even negotiate, no.
Bobbi Rebell:
So you negotiated nothing?
Philip Taylor:
No. I took what they were giving me on that. I took the interest rate that they were going to give me.
Bobbi Rebell:
Which was?
Philip Taylor:
Somewhere between 9% and 12%. So it was ridiculous. Yeah.
Bobbi Rebell:
Okay.
Philip Taylor:
I was being taken to the cleaners totally.
Bobbi Rebell:
And what was the price of the car?
Philip Taylor:
I don't remember that. I think it was somewhere around 32,000. Something like that.
Bobbi Rebell:
So, your yearly salary, which you do remember-
Philip Taylor:
Yeah.
Bobbi Rebell:
Was 33,000. You went out and bought a $32,000 car, brand new. You don't really remember the actual price of the car. You don't remember the actual interest rate. You didn't negotiate anything. But you had a fancy car and you were in the nicest apartment in town.
Philip Taylor:
That's it. That's it.
Bobbi Rebell:
That's good. All right. And you're going on a trip?
Philip Taylor:
That's right.
Bobbi Rebell:
Continue.
Philip Taylor:
Yes. So I get home and I we're getting ready for a trip. And then I start realizing what insurance is going to be for me. And because I was a young guy, I guess and not married yet or not a homeowner yet, insurance on this new Montero Sport was going to be just absolutely through the roof. And so when I started putting it all together, the car payment, the insurance-
Bobbi Rebell:
Well, what's the car payment?
Philip Taylor:
It was somewhere around $400 I think. $400, $500.
Bobbi Rebell:
What was your monthly take home pay?
Philip Taylor:
33,000 divided by 12, whatever that is. I don't know. It was not much.
Bobbi Rebell:
I hope you paid taxes too. So it wasn't [inaudible 00:05:36].
Philip Taylor:
Exactly. Yeah. So all in all-
Bobbi Rebell:
Yeah.
Philip Taylor:
I was going to be probably spending close to at least a third of my take home pay on this whole car experience, if not more. So, overburdening myself for sure.
Bobbi Rebell:
How did you feel?
Philip Taylor:
I all of a sudden felt a rush of severe guilt and severe panic that, "Okay, I think I've actually put myself in a big hole here." I felt embarrassed that I couldn't have gone into the dealership and made a smarter choice and negotiated it a little better. And so, yeah, I felt, I guess a sense of the immediacy of owning this thing was now fading. And I was feeling bad.
Bobbi Rebell:
So what did you do?
Philip Taylor:
At that point, I tried to call the dealership up and say, "Hey, would you guys take this car back?" And I think the guy laughed at me over the phone. And I didn't even then attempt to go down there. I was like, "Well, what can I do now? Can't really afford this thing. So should I try to sell it on the secondary market? And that would be foolish." I knew enough to know that. And so I just felt, I was at the end of my rope. So I called my dad.
Philip Taylor:
And here I am this 22 year old, big ego, new college grad, at the end of the day calling dad for a bailout. And I said, "Dad, what do I do in this situation?" And luckily, dad is able to call up the dealership and somehow spin his magic and convince them to take the car back from me. I do remember one thing about this is that it was $1,000 down payment that I put down because that's pretty much what I lost in this whole process. So they took the car back and I didn't owe any payments anymore, but I did lose my $1,000. And they gave me my old Saturn back that was paid for. And I drove my Saturn for the next five years, proudly. I swore going forward that I would own my financial life going forward. And I wouldn't ever rely on someone else to kind of help me out.
Philip Taylor:
But then I also studied up on actually how to buy a car. And I actually learned how to do it right. And so the next one I bought, I used some smarter tactics there.
Bobbi Rebell:
So, give us a lesson for our listeners, what is the takeaway from that?
Philip Taylor:
Yeah, number one, you need to absolutely have the price of the car pretty much nailed down before you even walk into the dealership.
Bobbi Rebell:
The retail price of the price that you are willing to pay?
Philip Taylor:
The price that you are willing to pay.
Bobbi Rebell:
Okay.
Philip Taylor:
And what other people are buying that car for. So we have all kinds of tools out there these days that will let you research that. Whether it's in edmunds.com or truecar.com. Those services will allow you to kind of research what people are actually buying cars for on the public market. And so you really need to kind of nail that down before you go to a dealership.
Philip Taylor:
The second thing I like to do is to actually take a step further and start communicating with dealerships about a potential offer and saying, "This is what I'm looking for. What's kind of your best offer to get me down there?" And so I have these conversations over email with these dealerships to let them put their best foot forward. Dealerships are used to this now. They are very used to consumers who want to just communicate beforehand. And so nail down that price as much as possible before you walk into the dealership. With financing, go to other sources. Go to your bank go to other vendors who could provide a good rate for you and have that loan secured before you walk into that dealership.
Philip Taylor:
Secondly, know what your car's worth. Look it up on Blue Book. Understand what your trade in value is going to be. At the end of the day, we're going to take this to Craigslist with and sell it on the open market. So know those numbers. And then once you're going in, and once you go to the actual dealership, bring someone with you. So I made that mistake the first time. And this is a chance for you to rely on someone else. Negotiate each of those factors separately. So start with the price get that nailed down. They're going to want to talk to you about payments. They're going to want to talk to you about interest rates.
Bobbi Rebell:
Well, let's talk about why they want. They want to talk about payments, because most people just think, can I afford the payment rather ... And that's a way for them to charge a higher price because you can manipulate the payments.
Philip Taylor:
Yeah.
Bobbi Rebell:
All right. Let's talk about your everyday money tip. Because this is one that is near and dear to my heart as a busy mom and someone that doesn't want to get suckered into buying stuff that I don't want. Do tell.
Philip Taylor:
Yeah, so my wife's the frugal one. Mrs. PT is super frugal. I'm the spender. So, she's got all the cool money saving ideas. And so one of the things she does is buy her groceries every week or every other week. And in the past it's always been good advice to make a grocery list before you go the grocery store, right? Because that way you won't pick up anything extra, you'll get exactly what you need. You'll be able to maybe even price some things out beforehand. That's good advice.
Philip Taylor:
But I find that through the years, it's like we made the event in January for a couple weeks, and then it kind of falls off, right? You're less diligent about that. So you end up just buying sort of random things at the grocery store every time you go. So one of the things we started doing is taking advantage of grocery pickup, right? So many folks are familiar with this. But this allows us to beforehand, before we go the grocery store, use the online portals of Walmart, of Target, of Kroger, whoever, and pre select our items we want to buy. Walmart is free for this service. Some other grocery stores will charge you these days. It's a small fee, though. And to me, it's worth it because you're selecting beforehand, before you're hungry before you're walking the aisle, seeing the tempting things. You're seeing exactly what you need.
Philip Taylor:
And then you pop in your car. At the scheduled time you show up, and you don't even have to go in the store keep your kids in the car, which is really cool for my wife, we have three kids. And then you pay your fee if you're going to the one of the places that pay a fee, or you go to Walmart, you pick it up free, and then you head home knowing that you didn't buy anything extra that you didn't need. And you saved some time because you're not wandering the stores picking random things.
Bobbi Rebell:
Tell me more about FinCon because this is your how much?
Philip Taylor:
This is our eighth one.
Bobbi Rebell:
Eighth one. Wow.
Philip Taylor:
Yeah. And so it's an annual event and community. And our event will be this September 26 to 29 in Orlando, Florida. Be 2,000 money nerds like us sitting around talking about money but also how we talk about money. So talking shop. Whether it's how to create better content, promote it better or make money on our efforts.
Bobbi Rebell:
How has the business evolved, because you've really grown. You've got a big ... we're here by the way, recording a Podcast Movement. You've got a lot of people here on your team which is really impressive.
Philip Taylor:
About the third year I decided I wanted to take it a little more seriously. And so I started looking for ways to add value to the attendees. Things I'd held off on before because I wanted to keep the pricing low on the tickets. So, I just said, "Well, I can still have a low ticket but then now I can have a premium ticket. And I even have a premium above that." So I look for ways to add value for attendees that we could kind of build some margin in and charge a higher price for.
Philip Taylor:
Secondly, was to create more of a true marketplace at the event where people were coming together to do business and to do deals. And so for the ROI of the experience being face to face. You for instance, meeting with brands at the event can turn into a podcast sponsorship. And so, that's kind of what we want to create. A marketplace for that to happen at the event. And so the more we leaned into our expo hall experience, which we call FinCon Central now, to make that a bigger part of the event. The more value that sponsors and exhibitors saw and being a part of it.
Bobbi Rebell:
Where can people find you and learn more about FinCon and about you. Because you also have your own stuff going on.
Philip Taylor:
Sure. We're on the socials @FinCon or @FinConExpo. And then our website is finconexpo.com. And then me personally, I have my own blog and some podcasts I've done in the past. All at ptmoney.com.
Bobbi Rebell:
Awesome. Thank you PT.
Philip Taylor:
Thanks Bobbi.
Bobbi Rebell:
There is a lot in what PT had to share with us. So much that we can all relate to. Financial grownup tip number one. If you get into a bad situation, do not let your pride get in the way of fixing it. PT could have just accepted defeat and been under a mess of payments for years. But he did the hard thing and called his dad, and his dad was there for him.
Bobbi Rebell:
Financial grownup tip number two. You may have noticed that in PT's money tip, some of the grocery services were free and some had a payment. There are times when free is not the best value. Not saying it isn't in that case. But a well run business is profitable. So they must make money somewhere. Give your business to the stores that work the best for your life. The store that executes better. That has delivery done on time for example and correctly. May cost more, but be worth it. That cost may be in a fee or it may be in slightly higher prices. But look at the total picture.
Bobbi Rebell:
A quick word about PT's business, FinCon, it is happening in Orlando on September 26th to the 29th. If you are interested in coming, please come hear me speak on Wednesday at 1:30. I will be doing a joint presentation with my editor and producer, Steve Stewart. We'll be sharing the behind the scenes look into what went on when we launched the Financial Grownup podcast and where we have come from those first episodes back in February of 2018. And we'll also have a lot of information about how you can get started podcasting if that is something that interests you.
Bobbi Rebell:
Make sure to let me know if you are coming so that we can connect in person. I'm going to leave a link to sign up for FinCon and learn more about it in the show notes. Those show notes are at bobbirebell.com calm/podcast/ptmoney. Or you can just DM me on any of the social media channel and I will make sure that you get the right information. On Instagram, I am @BobbiRebell1 and on Twitter @BobbiRebell and thank you to PT for helping us all get one step closer to being financial grown ups.
Bobbi Rebell:
Financial Grownup with Bobbi Rebell is edited and produced by Steve Stewart and is a BRK Media production.
TV and theater producer Jenna Segal had a dramatic financial shock as a child. Now as a financial grownup, Jenna takes her cue from that experience to make sure the creative ambition of her productions is in line with financial realities.
In Jenna’s money story you will learn:
-How Jenna had to adjust her life growing up when her parents financial situation experienced a big change
-The impact big changes in the U.S. economy and the fashion industry had on her family
-How Jenna managed multiple income streams and side hustles as a teen
-Why the happy birthday song at Bennigans shares a special place in Jenna’s heart
-The specific strategies Jenna used to balance her schoolwork with her many jobs and internships
-How Jenna leveraged her background watching the numbers to move into her career as a broadway, tv and film producer
-The factors Jenna takes into consideration when putting together a production to balance creativity with financial responsibility
-Why we are talking about my cousin Robin and coding
In Jenna’s money lesson you will learn:
-How to take life experiences and translate them into skills for your career
-How to balance desire for creativity in any project, with the financial realities
-How to actually use creativity on projects as a solution to budget challenges
In Jenna’s every day money tip you will learn:
-Why Jenna always has $2,000 available for emergencies
-The strategy she used to manage living paycheck to paycheck in one of her first jobs
In my take you will learn:
-The difference between an emergency fund and a get out of town fund
-What to do if you do not have the resources the fund an emergency fund in the near term
Episode Links
Look for new information coming soon about Jenna’s projects including the plan she is producing fall 2018 at her website SegalNYC.com
Learn about Jenna’s new content projects aimed at women- and get on the newsletter at gatherertv.com
Read more about Jenna Segal!
Wall Street Journal: https://www.wsj.com/articles/gigi-back-on-broadway-thanks-to-jenna-segal-a-rookie-producer-1426785748
Playbill: http://www.playbill.com/person/jenna-segal-vault-0000125916
Follow Jenna!!
Twitter @JennaKatzSegal
Instagram @JennaSegal
Facebook: JKSegal
Transcription
Jenna Segal:
She'd throw me the codes for the budgets and I would be able to look at each bill and really get to understand what it was costing for the networks to do what they were doing. That's what gave me the ability to do the job that I wound up getting at MTV, because I understood the cost of production and how to move money around, how to budget, figure out how to make a projection work on the amount of money that we had to work with.
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.
Bobbi Rebell:
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:
Hey friends, that was film, TV and theater producer, Jenna Segal talking show business number crunching. Welcome everyone to the show, if you have not already, please hit that subscribe button so you don't miss any upcoming episodes.
Bobbi Rebell:
If you are new to the show, great to have you. As our returning listeners know, we keep the episodes short because we know you're busy. About 15 minutes, just give you a story, little context, something to think about, a take away, and an everyday money tip.
Bobbi Rebell:
Of course, if you have more time, listen to a few episodes. All right, let's get back to today's money story. Jenna Segal's long list of productions include, Gigi on Broadway starring Vanessa Hudgens, the recent revival of Les Liaisons Dangereuses, hope I said that correctly, as well as the off Broadway show, What We're Up Against.
Bobbi Rebell:
She has also had stints at Viacom including MTV and Nickelodeon, as well as in news. Places like CNN and CNBC, whereas you will here, she worked for my cousin Robin. Hey Robin.
Bobbi Rebell:
Also, no matter how fabulous this show is, you're going to learn from Jenna, there is still math and a lot of people that have to get paid. If you can't crunch the numbers, the show does not go on. Jenna Segal got her ambition early on and it amped up, when as a teen her family had some big financial drama.
Bobbi Rebell:
Now her career, still has drama just also comedy, mystery, love stories and all that showbiz stuff. Here is Jenna Segal.
Bobbi Rebell:
Hey Jenna Segal, you're our financial grownup, welcome to the podcast.
Jenna Segal:
Hey Bobbi, how are you? It's so exciting to be on.
Bobbi Rebell:
I am excited to have you because you have so many interesting projects. You are the head of Segal NYC which is Broadway Production company, you're also a TV producer and you've got a number of projects going on right now. I have convinced you to give us a little sneak peak on one project, tell us a little about that very famous person you're working on a project about.
Jenna Segal:
Yes, I'm so excited. I am working with Daryl Roth on a brand new play called Gloria. Which is about the one and only Gloria Steinem. It is going to be at the Daryl Roth theater downtown in New York City in the fall.
Bobbi Rebell:
Very cool. I want to hear more about some other projects you're working on but first let's do your money story. It is something that unfortunately many people can relate to and that is when a parent loses a job. You were just 16, tell us what happened.
Jenna Segal:
When I was 16, I grew up in New Jersey and just kind of a regular existence. My dad had a great job working in the fashion industry and the whole industry, much like today, went through a major transition. The entire industry of the middle man started falling apart because Target and Walmart were doing networking, going directly to factories all around the world to find people to manufacture their goods.
Jenna Segal:
Financially for our family it was just a major, major change.
Bobbi Rebell:
So what did that mean for you? What was the changes for you?
Jenna Segal:
Well it just meant that money wasn't coming easily anymore. And at a certain point, it also meant that my college education wasn't as secure as I had thought. I wasn't getting a car when I turned 17, I was sharing a car with my dad where I would drop him off so he could go into New York City. And I would pick him up at the end of the day.
Jenna Segal:
But it especially meant that I went out and I had always loved working but started, instead of doing you know one job that was babysitting after school, I went out and got three jobs. So I worked on the weekends at the local bagel store where I'd get there at five o'clock in the morning and Saturdays and Sundays I would talk to the first people in at five and make their bagels and go through the soccer lines and everything else.
Jenna Segal:
Making sure everyone got what they needed and then I would hostess at night at Finnegan's which was a-
Bobbi Rebell:
I loved Finnegan's.
Jenna Segal:
Of course. I still know the Happy Birthday song.
Bobbi Rebell:
I also grew up in New Jersey of course though.
Jenna Segal:
Yes totally. And I was able to do obvioulsy similar things there. And I also worked at Little Ceaser's when it first opened until I just couldn't take it anymore because I smelled so much like pizza. And I was a nanny after school for a single mother, not my Freshman year of college but starting my Sophomore year of college, I continued really doing that as well.
Jenna Segal:
Trying to take all of my classes in two days and then I started working at CNN five days a week. At first for an unpaid internship and then hostessing at night. But it really was a wonderful experience because it changed how I viewed being able to support myself.
Bobbi Rebell:
So now you're a Broadway producer. Having this background with the needing to earn money in that kind of situation, do you look at budget items differently, would you spend differently?
Jenna Segal:
Oh totally. When I look at Broadway, every single aspect of what you're doing has to relate to the return. And then it has to relate to the artistic integrity of the piece that you're doing. I would say even at MTV, where I started in the 90s in Los Angeles, it was always about taking whatever the budget was, being able to respect the artistic integrity of the director or the writer. And make sure to get them what they wanted visually but how to do that within the parameters of what financially needed to be achieved.
Jenna Segal:
And that's always a really huge challenge I think for many people who get out of film school and budgeting is generally not significantly taught there. And I have always felt that for creative people, having that ability to understand the parameters around a budget, especially for large corporations who have real risk assessment needs.
Jenna Segal:
And cannot just go out and shoot without permits and know that they're not going to majorly get in trouble or use music that hasn't been cleared. And just take the risk that they're not going to pay for it or have somebody come in and not have insurance for those people to make sure that if they get hurt, they don't take the risk and have that actor or that camera person or the audio person not have backup. So that if they get hurt, you're able to financially take care of them and not wind up getting sued and having it put you into major financial jeopardy as an independent producer.
Jenna Segal:
All of those things are what I'm thinking about all the time.
Bobbi Rebell:
There's a lot of economics behind the scenes, I mean pun intended.
Jenna Segal:
Yes, 100 percent. I started in political talk shows in Washington D.C. with actually, I completely forgot about this, your cousin Robin [inaudible 00:08:06].
Bobbi Rebell:
Yes, hey Robin.
Jenna Segal:
The absolute best producers I have ever worked with, incredibly smart. But Robin loved the creative and she hated the financial piece. And the best thing that Robin ever did for me and my production career and I credit her for this all the time. Is that Robin threw the bills at me. And she said, "You deal with this. You code it."
Jenna Segal:
And coding is, in the networks or really in any company that you work for, it's a way of accounting for each individual expenditure you have so that when they put it through the massively gigantic books in the big picture, they're able to understand what they're spending on everything.
Jenna Segal:
And so she'd throw me the codes for the budgets and I would be able to look at each bill and really get to understand what it was costing for the networks to do what they were doing. That's what gave me to the ability to do the job that I wound up getting at MTV in its heyday.
Jenna Segal:
Because I understood the costs of production and how to move money around, how to budget, how to figure out how to make a production work on the amount of money that we had to work with.
Jenna Segal:
(Music)
Bobbi Rebell:
What is the lesson for our listeners from this?
Jenna Segal:
I think the most important lesson is to make sure to key into where you're real financial acumen is. And that could come from any kind of experience in your life. See why that moment resonated for you and how you can move that moment forward for what you're doing at work or what you're doing in your home.
Jenna Segal:
Look at your finances and figure out how you can make happen what you want to make happen, even if you have a minimal amount of money to do it.
Bobbi Rebell:
And even if you're in a creative field, I mean one thing that I notice is that you know, even the creative people need to understand the economics behind that creation.
Jenna Segal:
Oh 100 percent. And what I like to say is that I, what my real skill set wound being is that I am an excellent translator. Through my experiences, I was able to understand financial people and understand what they were getting at and why they were getting at why you could or couldn't spend money on something.
Jenna Segal:
And I was able to talk to creative people and explain to them why we did or didn't have the money to do what they wanted to do but how we could creatively come up with a solution for how to get what they wanted in a different way within the money that we had. And I think that lacking often creates the best creativity for how to find creative ways out of a situation.
Bobbi Rebell:
All right so Jenna, what is your money tip?
Jenna Segal:
Pick a number and create an emergency fund. When I was leaving Washington or decided I wanted to leave for Washington to move out to LA to begin working outside of political talk shows, I worked in a job where I only got paid once a month. And it really taught me how to budget wisely over the course of the month because of course I was living paycheck to paycheck.
Jenna Segal:
Knowing that I was going to get money at the end of the month, it made me think about how I could save to get to the 2000 dollars that I thought that I needed to get out to LA. And ever since then, I always make sure to have 2000 dollars in the bank at all times as my getaway car so to speak.
Jenna Segal:
Because I always feel that as long as I have that 2000 dollars in the bank, I can just change and-
Bobbi Rebell:
Get somewhere, right. So it's not a traditional emergency fund where if you lost your income source, you would have six months to live on. It's a get out-of-town fund, basically.
Jenna Segal:
It's a get out, yes exactly. Which is why I call it an emergency fund. It's not-
Bobbi Rebell:
Exactly, but it's not, I don't want our regular listeners to be confused with these same kind of emergency fund that's like for if you're in dire straights, this is your get out of town.
Jenna Segal:
Yes.
Bobbi Rebell:
Like yeah. Literally like quick cash fund.
Jenna Segal:
Literally I need to change my life tomorrow, I have this money.
Bobbi Rebell:
Awesome. Well you have a great life right now because you have so many amazing projects going on. Tell us what's going on with Segal NYC and you have another big thing that's happening the fall of 2018, I think.
Jenna Segal:
Yes. With Segal NYC, we're going to be producing the fall, Gloria as I mentioned. And then other projects that are brewing in the background and then I have also started with a partner, Gatherer Entertainment which is going to be a digital network for women. And we have a really fun newsletter at Gatherer TV dot com. If you're interested.
Jenna Segal:
But it's all really exciting and there is not-
Bobbi Rebell:
What kinds of projects are you going to have?
Jenna Segal:
On Gatherer, it's going to be everything from unscripted shows to scripted but all in the original stuff that we're going to be doing is all going to be in shorter form. And we're working with really talented writers, some with names you know and some who don't. Focusing on women, the world that women live in right now.
Jenna Segal:
And really things that are going to be instrumental to them in their lives that aren't necessarily being talked about.
Bobbi Rebell:
That sounds mysterious. All right I can't wait.
Jenna Segal:
I think it's unveiling the mysteries.
Bobbi Rebell:
That was a good tease, Jenna, good job. All right, where can people learn more about you and about Segal NYC and Gatherer and so on?
Jenna Segal:
Sure so Segal NYC, it is Segal NYC dot com, Gatherer is Gatherer TV dot com. And then I am on Twitter at JennaKatzSegal and Facebook and Instagram. Although I don't use Instagram as much. I know I really have to get on it but I just haven't gotten there yet.
Bobbi Rebell:
Well I think you'll get there and you have great things happening and coming so thank you Jenna Segal.
Jenna Segal:
Thank you so much. It was so good talking to you.
Bobbi Rebell:
(Music)
Bobbi Rebell:
Such a fun interview, can't wait to go see Jenna and Daryl Roth's Gloria production in the fall.
Bobbi Rebell:
Financial Grownup tip number one, Jenna worked as a teen in multiple jobs because she had to. But it's also often a great learning experience for teens to work just because they get exposed to the universal basics of being an employee. Show up on time, be reliable, follow directions, all that stuff.
Bobbi Rebell:
It can also motivate teens not just to work hard, but also smart. And to have the best career that they can. I know having to memorize the price of every baked good at the Wycoff Bakery in New Jersey as a teen definitely motivated me. And I know my future in food service.
Bobbi Rebell:
Financial Grownup tip number two, emergency fund. So Jenna talked about having 2000 dollars as an emergency fund. We then, renamed it the get out-of-town fund. She basically was talking about money to buy a plane ticket and have a little spending money if you got to go. But as we also mentioned, everyone actually also needs what we traditionally call an emergency fund in case your income stops for some reason.
Bobbi Rebell:
So in a perfect world, it would be about six months, more or less depending on if you are a single person, then you might need a little more. If you have double income, you might need less because the odds of losing both incomes at once are lower.
Bobbi Rebell:
Now if that is not a reality right now and it's not for a lot of people, let's be honest about it, if you don't have it, here is a plan B. See if you can at least get a line of credit that could be available to you. The catch is, you need to get the line of the credit ahead of time, as in now when you don't need it. If you're not using it and you don't take money out, you're not paying any interest so it's okay.
Bobbi Rebell:
But then you have it so you can tap into that money if you do have an emergency at much lower rates than say a credit card. And that's really important because right now we are in a rising rate environment.
Bobbi Rebell:
Thanks to everyone for joining us for another great Financial Grownup Podcast episode. To stay up to date on episodes and also catch our fun promo videos, follow me on social media. At bobbierebell on Twitter, at bobbirebell1 on Instagram, my page on Facebook is Bobbi Rebell. And I'm also working on that YouTube page so check it out and please subscribe, I would love your support.
Bobbi Rebell:
Jenna's start continues to rise in large part because she keeps a nice balance between the show and the business, so thank you Jenna for sharing with us and helping us all get one step closer to being financial grownups.
Bobbi Rebell:
(Music)
Bobbi Rebell:
Financial Grownup with Bobbi Rebell is edited and produced by Steve Stewart and is a BRK Media Production.
When journalist Vera Gibbons launched nonpoliticalnews.com she had lots of former colleagues and friends telling her she needed to spend money on all kinds of costs, but after making a few missteps, the entrepreneur learned to prioritize and keep her costs in check while she built a strong foundation.
In Vera’s money story you will learn:
-What inspired Vera to start her website and newsletter nonpoliticalnews.com
-How she was approached about hiring many people to help her, but at a cost, despite the fact that her business was not yet earning money
-Vera’s choices about where to spend her resources in the early days of her venture
-Where she regretted spending money, and where she felt her money was best allocated.
-Vera’s revenue model
In Vera’s money lesson you will learn:
-How to evaluate what expenses to take on in the startup phase of a business
-How to prioritize your business needs versus wants
-The legal issues you need to pay attention to when starting a business
In Vera’s every day money tip you will learn:
-Why we all need to be paying close attention to interest rates
-How to identify the interest rates in your life that could be going up
-How to negotiate to get your rates lower
In my take you will learn:
-How to put your friends “advice’ in context when starting any new venture
-How the upward movement in interest rates can be both a positive and a negative.
Episode Links
Vera’s website: nonpoliticalnews.com
Twitter @nopodaily
Facebook Non political News
Instagram @nonpoliticalnews
Resources to learn more about interest rates and why they are going up:
The Fed: https://www.federalreserve.gov/
Investopedia: https://www.investopedia.com/terms/i/interestrate.asp
Business Insider: http://www.businessinsider.com/how-the-fed-raises-interest-rates-2017-12
Kiplinger https://www.kiplinger.com/article/business/T019-C000-S010-interest-rate-forecast.html
Marketwatch: https://www.marketwatch.com/story/rising-interest-rates-give-retirees-good-news-and-bad-news-2018-06-20
To win one of the promo video’s you see- be sure to share them on social media when you see them on my feeds!
Twitter @bobbirebell
Instagram @bobbirebell1
Facebook: Bobbi Rebell
Want to share your money story? Write to us and tell us about it at info@financialgrownup.com
Transcription
Vera Gibbons:
They said "We'll do 20 videos for $20,000. You should do a podcast, your website needs to be revised, I'll do it for $15,000." I'm a startup, and I have no income, and I have no revenue, how am I going to pay for any of this?
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. 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:
Hey, friends. We talk a lot about living within our means, and ideally below our means, when we talk about personal finance. But the truth is, that also applies in business, especially with startup businesses that are as they say pre-revenue. Before we get to our guest, I just want to welcome our new listeners, and of course welcome back our regulars, we keep the show on the shorter side around 15 minutes, so you can fit it into your busy day. But of course, feel free to binge on a few episodes if you've got half an hour, two episodes, and so on. The idea is that we share money stories that are going to give us something to think about that may relay to our personal lives, maybe our careers and business lives, which these days are blending together more and more. We also do everyday money tips, because we want you to have more money.
Bobbi Rebell:
On that note, I guess Vera Gibbons spent years as a Consumer Journalist before starting her website, Non Political News, aka NoPo. When she did, everybody wanted to help her out and have their hand out. Here is Vera Gibbons. Hey, Vera Gibbons, you're a financial grownup, welcome to the podcast.
Vera Gibbons:
Thank you so much for having me. I'm honored to be your guest.
Bobbi Rebell:
Congratulations on your new website, Non Political News, something we all need a little bit of.
Vera Gibbons:
It is a labor of love. I started it a couple of years ago, and it's really been growing like gangbusters. All the news is non political, and then we have some fun stuff and some stuff that is just frivolous and interesting. It's resonating, people really seem to like it.
Bobbi Rebell:
I want to hear more about it, but first I want to get to your money story, because it has to do with being an entrepreneur and starting a business, and the fact that sometimes we take on costs that we should not. Tell us more.
Vera Gibbons:
That is a big problem. All my life, as you know, I've been bouncing around on different TV shows, doing personal financing consumer segments. Then I started NonPoliticalNews.com, so the big money story is it's expensive to be your own boss. This is probably why people don't do it. There are legal costs, there are marketing costs, and they add up, and they add up very, very quickly, as I quickly found.
Bobbi Rebell:
People tell you that you need to do this, you need to do that.
Vera Gibbons:
It never ends. When I first started NonPoliticalNews.com I had people approach me from NBC, where I used to work, and they we're saying "Oh, do you want me to do some videos for you?" They said "We'll do 20 videos for $20,000. You should do a podcast. Your website needs to be revised. I'll do it for $15,000." I mean-
Bobbi Rebell:
Those are big numbers.
Vera Gibbons:
Big.
Bobbi Rebell:
Because your revenue was what at this point?
Vera Gibbons:
Zip.
Bobbi Rebell:
Zero. Zero revenue and these people are hitting you up.
Vera Gibbons:
They wanted to do all sorts of stuff and they weren't taking me and my personal situation under consideration at all. I'm like "Hey, I'm a startup, I have no income. I have no revenue. How am I going to pay for any of this?" People were telling me "You should bring on people to work for you. You should hire someone to do the marketing." I hired one person to help me with email problems, with the delivery of our email. We use MailChimp, as everybody does, because I'm a newsletter business pretty much. The email goes out every single morning at 7:00 into your inbox. Occasionally, some people weren't getting the email, or it was showing up late, or it was bouncing back. So I had to bring in somebody to help me with that. But at the time I was thinking "I just got to make sure this email gets out to my subscribers every single morning, and it's consistent in the delivery." So that was a priority.
Vera Gibbons:
Now we had another priority that literally landed on my desk, which was we had a trademark problem, I had trademarked NonPoliticalNews.com, and somebody was infringing on our trademark. That was a big legal cost that I had to undertake for obvious reasons, we couldn't have this happen. We had to do a cease and desist, and [inaudible 00:04:42] people out, and then we ended up buying their domain. It was a big ordeal. It also held up the marketing side of things too, because I was like "Well, I can't really continue with using the name Non Political News or NoPo News as call it if somebody else has that name." People are confused with where they're going, and they're being miscorrected. That was a big unfortunate legal battle that we had to undertake, and that was an expensive one.
Bobbi Rebell:
How did this all evolve to where you are now in terms of your ongoing expenses, your payroll basically?
Vera Gibbons:
I did make a compromise with videos. They had wanted me to do like 20 videos for $20,000. I worked out a deal with them where I did a couple just to test the waters for a couple thousand dollars. In the end, that was a financial mistake actually, because the videos did not do all that well, they weren't generating the kind of traffic or interest we wanted. I had actually found a couple of typos in one of the videos before it went out. I'm like "What am I paying for all this for?" That was a mistake. Thankfully it wasn't that big of financial a mistake, it was just a couple thousand dollars, the cost of doing business.
Vera Gibbons:
I also had a lot of people who approached me and wanted to help me with the social media. That's still a work in progress, because I'm not very good at social media, and I don't really like it. But at some point, I'm probably going to have to hire somebody to do that, because I know now that in order to get your product out there, and to get the word out there about your product, you need to have someone pretty aggressively promoting it on Instagram, and Twitter, and Facebook. I've been not very good about that quite honestly. The bulk of the money has gone toward my website guy, he redid the website, it looks pretty good now, it's a little flashier, it's a little more user friendly. My marketing, he's just a part-time marketing guy, he's on a retainer. He does help me with Facebook promotions, and a little bit of social media. We occasionally do free giveaways via NonPoliticalNews.com, where we partner up with various entities, and we provide something for our subscribers. He's been helping me with some of those promotions.
Vera Gibbons:
Those can be costly too depending on how you market them on Facebook. Facebook has changed all the algorithms now, so it's a little trickier than it used to be perhaps, but that has been primarily where I've been spending the money.
Bobbi Rebell:
What's the revenue model?
Vera Gibbons:
The revenue model is, at some point we're going to be doing sponsored segments. We do have, the way it's organized now is we have different categories. We have consumer/personal finance, health and wellness, fashion/beauty and fitness and diet. Every day into the night, and early morning, I curate the news within those categories. At some point soon, we're going to partner up with influential people within each of the respective categories, and we're going to tap into their followers and see if it ... to catch on with Non Political News.
Bobbi Rebell:
Vera, what is your money lesson from that story? Taking on all of those expenses, some you didn't take on, some you did and regret.
Vera Gibbons:
I guess the lesson is, do what is absolutely necessary at the time, and hold off on the other things until that becomes a complete necessity. For me, the necessity is we're dealing with email delivery problems, obviously you want to make sure-
Bobbi Rebell:
Right, because if people aren't getting their daily emails, you have no business.
Vera Gibbons:
Exactly. That was a hot fire I had to put up immediately. Then the other issue was this legal issue, we had someone infringing on our trademark, and that was another hot issue that had to be taken care of immediately. The other stuff could wait, and some of it is still waiting. It's just been a work in a progress.
Bobbi Rebell:
All right, let's talk about an everyday money tip, because you're in the news business, you know what's going on, and that gave you an idea for something people need to be paying a lot of attention to, maybe more than they think.
Vera Gibbons:
Check your interest rates, guys. A lot of people do not even know what their interest rate actually is. We are in a rising interest rate environment, you really need to know where you stand on that front, because your costs are going to get more expensive, you probably, maybe, perhaps have noticed things are going up on your credit card.
Bobbi Rebell:
Yeah. What are the different interest rates that people should be checking that could change, that aren't usually fixed?
Vera Gibbons:
That would be your variable rate loans, your credit cards are variable rate loans. If you had an adjustable rate mortgage, that's a variable rate loan. These are the types of things that people really need to check, especially that credit card rate, because when Fed raises their rates, your credit card rate goes up in sync, pretty much immediately. 25 Basis Point hike may not sound like a lot, but we've had a couple, and we're potentially going to get three or four hikes for the total of 2018. That credit card debt you carry months to months, to months over, you revolve your debt, is going to be more expensive.
Bobbi Rebell:
Let's say you have a credit card, and you know it's not being paid off any time soon, what can you do?
Vera Gibbons:
If you have good credit, in the 700 range, you could always call up your credit card company and see if they'll actually lower your rate. That strategy continues to work today. If you have been paying your bills on time, if you've shown them that you're reliable, that you do pay everything off, and you're responsible, they may actually be willing to give you a bit of a break. That has been true for years and years and years, but a lot of people don't bother actually taking that step. If you notice your credit card rate has gone up, and it probably has over the course of the last six months, you could always pick up the phone and ask the credit card company to lower that rate, or to bring it down to the rate it once was a couple of months ago.
Bobbi Rebell:
All right. Tell us a little bit more about Non Political News and where people can find it, where people can learn more about it, and more about you.
Vera Gibbons:
Non Political News, you can find it on NonPoliticalNews.com, once you sign on to subscribe, you will get a link to confirm your subscription, and then every day in your inbox, 7:00 a.m., you get a nice [inaudible 00:10:54] of Non Political News in consumer/personal finance, health and wellness, fashion/beauty, fitness and diet. Then on Friday, we run guest posts. We've had Jean Chatzky, we have had Peter Greenberg, we've had a bunch of CNBC people up from Bill Griffeth to Ron Insana up to Guy Adami do them.
Bobbi Rebell:
I know you're not a huge social media fan, but people would probably really enjoy following you, where can they?
Vera Gibbons:
Thanks, Bobbi. Yeah. We do have an Instagram account nonpoliticalnews. Like you said, I'm not very good about putting updates on there, but I promise to get better. On Facebook, we're Nonpoliticalnews. Twitter, we're NoPoDaily.
Bobbi Rebell:
NoPoDaily, like it.
Vera Gibbons:
Yeah.
Bobbi Rebell:
Vera Gibbons, thank you so much. This was wonderful.
Vera Gibbons:
Thank you, it's been a pleasure.
Bobbi Rebell:
So my friends, Vera learned some very big lessons very quickly. Financial Grownup tip number one, tune out the advice from well-meaning friends, who want you to take on costs before your business mission and priorities are well defined. Frankly, before you can afford them. Vera still has no clear path to revenue, so she's right to limit her expenses to only the most essential, making sure her emails go out without a hitch and paying her legal bills. She knows that if she adds people on, as she does on occasion, she keeps it freelance, and project-based, so flexibility is still there for you.
Bobbi Rebell:
Financial Grownup tip number two, if you aren't already, start paying attention to the news regarding the Fed and interest rates. It is going to get personal real fast. If you have any kind of loans, this is important to be paying attention to. But here's the good news, there is an upside, low rates have also meant very low returns for those on fixed incomes or those that just invest in fixed income instruments. Rates for things that you might want to invest in, like CDs, are going to go up. Glass half full my friends. I will leave some links in the show notes of places you can get some great information and stay up to speed on what matters.
Bobbi Rebell:
If you are not already, please hit that subscribe button. If you are listening on Apple podcast, or iTunes, please rate the podcast or leave a review. Also, if you liked the show, just tell a friend. Ask them to check it out as well. If you are enjoying the promos, and want one for yourself or for your business, follow me on social media and share them. I will be choosing a winner soon and it could be you. I am on Twitter, @bobbirebell, Instagram @bobbirebell1, and Facebook @bobbirebell. DM me your thoughts on the show, and what guests you would like to hear from.
Bobbi Rebell:
Loved how candid Vera Gibbons was with us about the challenges of starting and growing a business. Lots of lessons in hindsight already. So thank you, Vera, for bringing us all one step closer to being financial grownups. Financial Grownup with Bobbi Rebell is edited and produced by Steve Stewart and is a BRK Media production.
When Skillcrush founder and CEO Adda Birnir got laid off from her job at a digital ad agency, she decided to follow the money and discovered a lucrative business she did not even know existed. Her ability to leverage events like South by Southwest and understand how to make tech education appeal to women have driven the phenomenal growth of her startup.
In Adda’s money story you will learn:
-The big “aha” moment she had after being laid off, and seeing that the tech jobs were a lot more secure
-How a side project called Digital Divas, evolved into Skillcrush
-How a chance meeting led to a pivotal business partnership
-How Adda validated the Skillcrush concept
-The key risks and challenges in the early days of Skillcrush
-How they grew the company after a big test at South By Southwest
-The role that an incubator, and those resources played in the success of Skillcrush
-How they raised money from investors
In Adda’s money lesson you will learn:
-The importance of listening to your potential customers and their problem- before trying to sell a solution
-How to find the best way to appeal to potential customers
-The way Skillcrush overcomes stereotypes about women and coding
In Adda’s every day money tip you will learn:
-How Adda and her business partner set up a system to make sure to fund the company, while paying themselves a salary
-The best way that can apply to your personal life (or your business!)
-Strategies for freelancers to streamline unsteady income
In my take you will learn:
-How to get over being intimidated by new things, like coding
-Why everyone should learn basic coding and web skills
-How creating virtual buckets can help your personal finances, and your business
Episode Links:
Learn more about Skillcrush! skillcrush.com
Try SkillCrush’s 10-day bootcamp! https://learn.skillcrush.com/skillcrush-10-day-bootcamp/
Follow Skillcrush and Adda!
Twitter: @skillcrush @addbjork
Instagram @skillcrush @addabjork
Facebook Skillcrush addabjork
To win one of the promo video’s you see- be sure to share them on social media when you see them on my feeds!
Twitter @bobbirebell
Instagram @bobbirebell1
Facebook: Bobbi Rebell
Want to share your money story? Write to us and tell us about it at info@financialgrownup.com
Transcription
Adda Birnir:
What we learned very quickly is that women are not going out and searching, "I want to learn to code." Their motivation is not to learn to code, their motivation is to change their careers, and to make more money, and to have more creativity and flexibility.
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, 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 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, that was Adda Birnir. She is CEO of Skillcrush, which is a big and growing online tech education company. She's talking about a big revelation that they had, when they were trying to figure out, how to better appeal to women, something very few tech companies were even trying to do, and this was way back in 2012.
Bobbi Rebell:
More on that in a sec, but first, just a quick welcome to all of our new listeners, if you're joining us for the first time, welcome. And if you're returning, welcome back. We try to keep the shows short, because we value your time. But you can also, of course, binge and listen to a few of them, if you're commuting. Or, if you have more time, you can listen to more episodes, all in a row.
Bobbi Rebell:
The goal is to deliver a valuable money story that you can learn from, hopefully be entertained by, and a money tip, that you can put into action pretty much right away, and weave into your life. If you enjoy the show, please consider taking a minute, and leaving a review on Apple Podcasts, and thank you so much, to all of you that have already done so.
Bobbi Rebell:
Okay, back to Adda, and her story. After being laid off from a digital ad agency, where she was an associate producer, she noticed that the technical people all had jobs. She wanted that security, and of course, who doesn't want the money that goes with that security?
Bobbi Rebell:
So she decided, also, because she talks about the fact that she had a lot of free time, that she would learn to code. And it turned out, it wasn't actually that hard. So fast forward to a side hustle, doing coding projects with a friend, and then, to a business venture that actually didn't work out, but it led to one that did, because of basically a chance meeting. Isn't it always that way? That's just the way it happens sometimes.
Bobbi Rebell:
Get ready for some drama here. This is a good story. Here is Skillcrush CEO Adda Birnir.
Bobbi Rebell:
Hey, Adda Birnir, you're a financial grownup. Welcome to the podcast.
Adda Birnir:
Thank you for having me.
Bobbi Rebell:
Congratulations on all of your success. You are the founder and CEO of Skillcrush, which is the country's largest online tech education company. Your mission, of course, to help women and minorities learning digital skills, and you've been touted in the media as, so, for all of these accomplishments, 20 Women To Watch In Media, by Columbia Journalism School. You're one of the 30 Most Important Women In Tech, by Business Insider.
Bobbi Rebell:
We could basically spend the whole podcast going over that stuff, but I'm just happy to have you here, and get a little bit of your time in your busy day, running your growing empire. So thank you for being here.
Adda Birnir:
Yeah, thanks for having me.
Bobbi Rebell:
The money story that you're going to share with us has a lot to do with how Skillcrush was born.
Adda Birnir:
Yeah, so, this is 2012 now. This is kind of the heyday of the incubator. I mean, they still exist, but they were really big then, and we were interested in exploring, trying to create some sort of software product ourselves.We had been playing around with a couple different ideas, and like I said, Skillcrush, which was called something totally different at the time, it was called Digital Divas, was totally, just like, a fun side product.
Adda Birnir:
We had this Tablet publishing software, so it was basically, like, our goal was to make it easy for online publishers to publish to iPads. That was kind of the thing we thought was like an actual business.
Bobbi Rebell:
So it was a total business pivot.
Adda Birnir:
It wasn't even like, a pivot. It was like, an isolated example. We just threw one out, and we're like, "Oh, people think we're interested in this one." It was good. I mean, it was one of those examples that the market tells you what they're interested in. And basically, no one gave two bleeps about the Tablet publishing, and everyone was super interested in the Digital Diva thing.
Adda Birnir:
Then, at the same time, fortuitously, I did this program at CUNY, on the Journalism School. And there, I met a woman named Jennifer McFadden, who went on to become my cofounder at Skillcrush, and she had done a lot of research about the online education space.
Adda Birnir:
So it was sort of, one of those, sort of total kismet moments, where I had this education product, that I didn't have any sense for the business proposition, or the business opportunity, and she had all this deep knowledge about the education space. So that was what really started it.
Adda Birnir:
I will say, though, because we'd had this failed attempt at this Tablet publishing software, I was very, very cautious with Skillcrush. I didn't want to invest in it without validating the idea on some product.
Bobbi Rebell:
So what did you do? What are the steps you took to validate it?
Adda Birnir:
Basically, when you go through this process, what you want to do is, you want to figure out, what is your riskiest assumption? For us, because, at the time, there weren't as many online education players. But there was lynda.com. So we felt like, it's that aspect of it, will people pay for education online, was validated.
Adda Birnir:
That, to us, was not the riskiest assumption. The riskiest assumption for Skillcrush was whether women would pay for, or would be interested in, a technology learning platform. So we designed this experiment, which is that we started a newsletter, and basically, what the sort of offer was, that the newsletter offered, was, we would define a technical term, and find an interesting way. And we'd done a day for 30 days.
Adda Birnir:
We went to South By Southwest, and figured, what we'll do is, we'll pitch this to women at South By Southwest, and they will buy it, with their e-mail address. We considered that sort of like, a transaction, and we figured, if we can't convince women at South By Southwest to purchase this, with their e-mail address for free, obviously, then there's no hope for us.
Bobbi Rebell:
So what happens?
Adda Birnir:
So, I think we had set, fill that goal of having 2,000 signups, and we did not get that, because we were doing direct sales. But our hit rate was 90% of them. I mean, everyone we spoke to, we got to sign up for it, so that was kind of our first positive signal. Then we actually, through that process, happened to pitch a woman who happened to work for Mother Jones. So then, she wrote us up, and then, that gave us another 600 signups, or something.
Bobbi Rebell:
Wow!
Adda Birnir:
That basically ended up with about 1,000 people.
Bobbi Rebell:
So then, what happened from there?
Adda Birnir:
So, from there, we started doing the Term a Day newsletter, and it started to build momentum, and I think we probably signed up, like, 3,000 people. Which, again, just to put this in perspective, this is shortly after Code Academy had gone live, and they had gotten 200,000 people to sign up over a 24-hour period. So I was completely bereft and disappointed by the 2,000. We had applied for the start of incubator, and we got in, and that gave us $25,000 of funding.
Adda Birnir:
The thing that I guess I think about it, like, at the time, I really needed that validation. Looking back on it, I think what I got out of it, more than the $25,000 ... because, honestly, the $25,000 just paid for incorporation. I didn't really have a lot of money, but it really was validation from an external source, that this is a cool idea, and you should keep working on it, and I think at that moment, I really needed that. But I don't think, the money itself, do you know what I'm saying?
Bobbi Rebell:
Yes.
Adda Birnir:
I think about this a lot, and looking back on it, I didn't need that validation, and that validation really didn't mean anything. Because they weren't my target audience, right? They didn't know.
Bobbi Rebell:
But at the time ...
Adda Birnir:
But at the time ...
Bobbi Rebell:
At the time, that mattered. Yeah.
Adda Birnir:
Exactly. But I just think about that, when I hear about women saying, "You know, I can't get funded," and I'm like, "Well, just remember, you don't need that validation from something." The only person, the only people that you need to validate your business are your customers, and often, it's easier to get them to validate it, than it is to get a venture capitalist to validate it.
Adda Birnir:
But we did, also from that, we did get another $50,000 as a convertible note from my other investors. That did give us some money, and that sort of about paid us, probably for the next four months, to build out Version 0.2, or whatever, of the product.
Bobbi Rebell:
So what is the lesson for our listeners from this?
Adda Birnir:
A lot of people get very attached to what is their solution, and there's kind of a thing in the startup community, which is that you got a solution in search of a problem. I think the most important thing that I can say to people is, you really have to start from the opposite end, right? You have to start with a problem, and then, come up with a solution for it.
Adda Birnir:
So I would just really encourage everyone, that if you have a business idea, chances are, you're onto something. But, before you kind of go all in on building out what you think is the best solution to this problem that you perceive, is to really talk to the people who are going to be paying for this solution, and really make sure that you understand their problem, and more deeply.
Adda Birnir:
That's sort of the case with Skillcrush. We had a lot of bumps in the road, especially in that first year and a half, and a lot of that was because it wasn't that we hadn't identified a legitimate problem. Because we had.
Adda Birnir:
There were women who could benefit from technical skills, but I will tell you, what we learned very quickly is that women are not going out and searching, "I want to learn to code." Their motivation is not to learn to code, their motivation is to change their careers, and to make more money, and to have more creativity and flexibility.
Adda Birnir:
They have some interest, in the sense that technical skills could be helpful. The big insight for us was like, you can't sell women the jobs report. That's not how they purchase that, right? They are looking at, "What is this gonna do for me? What changes will I be able to see in my life?"
Adda Birnir:
That was a fundamental insight that I really didn't have, until I started talking to my customers, and really understanding what their pain points were, and their problems were, and making sure that the solution I was providing really aligned with what problem they were trying to solve.
Bobbi Rebell:
So let's get to your every day money tip, because it's actually a business lesson that applies equally to our personal financial levels.
Adda Birnir:
Yes. One of the biggest kind of "Aha" moments for me with my first business, which I was running with my friend, and we were both freelancers. I remember, we got this big check. I think it was for $10,000, or something, and her impulse was that we should just split it, 50/50. My thought, "Why don't we just set our salaries? We're each going to get $4,000 a month, or something."
Adda Birnir:
I don't remember what it was, these are hypothetical numbers, but I was like, "How about, instead of just splitting every check that comes in 50/50, why don't we put the money in a bank, and take salary, and create the sort of situation you would have, in a normal situation, where you are getting paid, like, a steady salary, even if your actual income is kind of lumpy?
Adda Birnir:
It was really interesting, because this obviously was really helpful for us, just from a perspective of, when you're a freelancer, it's really hard, because your salary and your income is unpredictable. So we sort of artificially created this predictability for us, but it turned out to be a really, really important shift in perspective, in terms of thinking about the business as a third entity, and not sort of seeing it as something, where we were just like, 50/50, but it was like being ... we were like an entity unto itself, that we wanted to grow, and build up.
Adda Birnir:
I think that, in a lot of ways, this is something that is really applicable to anyone who's running a freelance business, even if they're just a one-person freelance shop ... That, to really to start think about your freelancing career as a business, and you want to grow that business, and make sure that business has a really solid foundation.
Bobbi Rebell:
Let's talk about Skillcrush. So much going on. Tell me the latest for summer of 2018.
Adda Birnir:
We are in the process of launching a couple of new blueprints, so when you come to Skllcrsuh, you have two options, in terms of how you want to learn. You can either take our sort of, shorter, more specific skill focus, Blueprints.
Adda Birnir:
Or you can sign up for what we call a Breaking Detect Blueprint, which is our all-inclusive program. You get access to everything that we have, and a lot of personalization. We work with you to set your career goals, and all those things, but we have a couple of new blueprints coming out, where it's going to be launching: a Web developer blueprint, we have a UX Designer blueprint coming out, which is really exciting.
Bobbi Rebell:
And where people can learn more about you, and Skillcrush, and follow you on social media, and all that good stuff?
Adda Birnir:
You just got to skillcrush.com, and sign up for our 10-day boot camp. It's the best way to get started. It's totally free, and you can follow us on Twitter. Just add skillcrush, and on Instagram, at skillcrush. I'm out of Bork on all the platforms, although I'm not the best at this, that you can get ...
Bobbi Rebell:
Wait. Spell that out, then.
Adda Birnir:
Oh. A-D-D-A, B-J-O-R-K. It's just, like Bjork the singer, but it also happens to be my middle name, so ...
Bobbi Rebell:
Love it, because you're from Iceland. Which is a cool, random fact.
Adda Birnir:
Yes, definitely.
Bobbi Rebell:
How old were you when you came to this country? You were like a baby, right?
Adda Birnir:
I was a tiny little baby, yeah, and I speak Icelandic, and ...
Bobbi Rebell:
Oh, my gosh. Say something.
Adda Birnir:
[foreign language 00:13:01]?
Bobbi Rebell:
What does that mean?
Adda Birnir:
Just, "This really nice letter today."
Bobbi Rebell:
All right, on that note, we'll leave it there, thank you so much.
Adda Birnir:
Thanks for just having me.
Bobbi Rebell:
Hey, everyone. So here's my take. When Adda and I were talking before the interview, she confessed that she had been so intimidated, just by the concept of coding beforehand, that she was resisting it, until, of course, she learned about them money thing, and all that.
Bobbi Rebell:
But then, when she focused, and tried it, she found out, it actually wasn't that hard.
Bobbi Rebell:
Financial Grownup Tip Number One: don't be intimidated by coding, or any skill that can benefit your career. It's basically a language. It can be challenging, she says, but it will open opportunities, and is becoming a basic thing that we all need to know a little bit about, at least, the basic level.
Bobbi Rebell:
Even if you're not directly coding, you may be supervising someone who is coding, or have somebody on your team, or at your company, or a peer. Understanding the basics of what they're doing, is going to help you figure out and understand workflow and project management.
Bobbi Rebell:
For example, I learned even just basic HTML years ago, and I built a website, literally typing in the codee that's now generally automatically generated for you, I was actually typing in the different codes.
Bobbi Rebell:
So, pre-Wordpress, pre-Squares-based, the whole thing. Skillcrush does have a free 10-day boot camp. So you can do that. I'm going to leave a link in the notes. It's pretty much risk-free, and worth checking out.
Bobbi Rebell:
Financial Grownup Tip Number Two: the every day money tip that she was talking about was basically about creating buckets for different needs with your money. So that can be really useful in your personal finances, even though she did really for business.
Bobbi Rebell:
Paying yourself the same amount each, especially if you have a variable income, is really useful. And then, you can put everything extra, in a different bucket, for a specific purpose. It's a great way, if you have a big goal, especially a goal that's intimidating, like, saving for a house down payment or something. Put it in a separate bucket. It'll start to add up. You won't even noticing it, and it works.
Bobbi Rebell:
Thank you all for your support of the show. If you like it, please, just tell a friend. Be sure to follow us on social media, and share the promo video, if you like them. You can win one for your business, or even just for yourself. Share them. Whoever the most this month, I'm going to pick someone, and I will make them a promotional video for themselves, or their business.
Bobbi Rebell:
On Twitter, you can follow me @bobbirebell, on Instagram, @obbirebell1. On Facebook, my page is Bobbi Rebell, and to learn more about the show, go to bobbirebell.com/financial grown-up podcasts.
Bobbi Rebell:
All right, [Ada Bernier 00:15:47] learned to move out of a career that left her financially vulnerable. She built a business instead focusing on helping others follow the money. Always a good philosophy when it comes to business and career. So thank you, Adda, for sharing your story, and for getting us one step closer to being financial grownups.
Announcer:
Financial Grownup With Bobbi Rebell is edited and produced by Steve [Stuart 00:16:20], and is a BRK media production.
After an early divorce set Kayla Sloan on an emotional spending binge and into debt, she discovered she could help herself, by working behind the scenes helping a growing market of entrepreneurs- and then becoming one herself.
In Kayla’s money story you will learn:
-How her marriage, at age 19, had on her financial behavior
-The way Kayla’s desire to spend, contrasted with her husband’s push to save money, and the conflicts that resulted from those differences.
-Kayla’s emotional spending after the marriage ended after less than a year
-How Kayla managed the cash flow challenges once she was divorced
-The moment she realized she had hit rock bottom, with $10,000 in credit card debt and just $3 in her banking account
-How her total debt moved into six figures by age 21
-The solution she found, that has morphed into a successful entrepreneurial venture
-What virtual assistants do, and how entrepreneurs can tap into that resource
In Kayla’s lesson you will learn:
-How simply filling up her time with an exciting new venture was enough of a distraction to stop the emotional spending
-How Kayla came up with specific ideas for slashing her debt, and what were the most effective techniques
-Why Kayla also prioritized increasing her income, so she would still be able to enjoy responsible spending
In Kayla’s money tip you will learn:
-Why you should not save your fancy stuff (if you have it) for special occasions
-How she made the most of all the fancy wedding presents she did not use during her marriage, including appliances
-How to avoid buying new things, when you already have things in your home that can get the job done, even if they are not what is conventionally expected
-How to tell if you need a virtual assistant, and how to get yourself ready to onboard a VA.
In My Take you will learn:
-How to learn the value of your time, and decide if you should outsource aspects of your business
-Where to get fancy stuff to use if you did not get it as a gift for a wedding or special occassion like Kayla.
Episode links:
kaylasloan.com
Twitter @kaylarsloan
Instagram @kaylarsloan
Facebook @krsloan
Kayla's course on How to be a Virtual Assistant and Make $10k a Month
You can buy vintage dinnerware, crystal, silver and other collectables at places like Replacements.com, Chairish.com and even TheRealReal.com
After an early divorce set Kayla Sloan on an emotional spending binge and into debt, she discovered she could help herself, by working behind the scenes helping a growing market of entrepreneurs- and then becoming one herself. In this Financial Grownup podcast episode you'll learn how you can tell when you need a virtual assistant. #Entrepreneur #VirtualAssistant #Debt
Transcription
Announcer:
Support for Financial Grownup with Bobbi Rebell and the following message come from TransferWise, the cheaper way to send money internationally. TransferWise takes a machete to the hefty fees that come with sending money abroad. Test it out for free at transferwise.com/podcast or download the app.
Kayla Sloan:
I went into total rebellion mode. I adopted a pet kitten. I went to the mall during every spare moment I had when I wasn't working or in class, and racked up about $10,000 in credit card debt and had only about $3 in my bank account.
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. 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:
What to know more about how those super successful entrepreneurs pull off their busy schedules? Well, there's usually someone called a virtual assistant behind the scenes keeping everything going. Stay tuned to learn more about how our guest tapped into that need to pull herself out of an emotional spending cycle.
Bobbi Rebell:
First, a couple of announcements. We are having a little competition here. It is about the video promos that you see on social media letting everyone know about the episodes. We've gotten amazing feedback about them and people asking how can they get one. So if you want one for your business or just for yourself, share them, retweet them, repost them between now and July 1st. Whoever does it the most, we will declare you the winner and we will make you a promo for your business or just for you.
Bobbi Rebell:
Also, we want to welcome the new listeners here and thank returning listeners. So glad you are joining us. We keep the podcast short, usually around 15 minutes. The idea is that we're all really busy and sometimes we only have little bursts where we can listen to a podcast, maybe we're running a quick errand, so we want to make it easy for you. And then, of course, if you have more time -- if you commute or you're running around town and want to listen to podcasts while you're doing other things throughout the day -- you can binge listen to three, four, five episodes for an hour or so and enjoy it that way. So whatever works for you, we're all about being flexible and fitting into your lifestyle.
Bobbi Rebell:
Now to our fantastic guest. She is tapping into a growing market need, entrepreneurs who need just the right amount of help but without the commitment of hiring someone -- usually in-person, full-time, where they have to get office space for and so on -- because the growing class of often solo entrepreneurs just need a little help sometimes for a project, sometimes a little longer. Kayla Sloan discovered she had a unique talent for tapping into this demand when she found herself with just $3 in her bank account and growing pile of debt, and needed to find a way out. Here is Kayla Sloan. Hey, Kayla Sloan. You're a Financial Grownup. Welcome to the podcast.
Kayla Sloan:
Thanks for having me.
Bobbi Rebell:
I am excited to have you on because you have tapped into a niche that is so cool in this ever-emerging gig economy because you help entrepreneurs.
Kayla Sloan:
Yes, I am a consultant in the virtual assistant space, and not only do I train people who want to become virtual assistants, but I also work with business owners who are in need of a virtual assistant. So I help them identify what they can outsource so they can up-level their businesses and find a great virtual assistant that can help them get there.
Bobbi Rebell:
Genius. All right, so let's talk about your money story. Sadly, it is something so many of us can relate to, and that is going through things like a divorce, broken relationships, and the financial impact that they can have. In your case, you had $3 in the bank. You basically started emotionally shopping, but that was in reaction to what was going on in the marriage. Tell us more.
Kayla Sloan:
So this story really started when I was about 19-years old. I got married very young and went off to college. I was attending school and he was working, so I wasn't really earning very much money at that time. I had a student internship that paid about $10 an hour is all. And so since he was earning the majority of the money, it really felt like I needed to ask permission whenever I wanted to spend money on anything. Since he was a saver and I was a spender, there was always a lot of conflict around money in our relationship. At the time, I really felt as if I couldn't purchase anything without asking permission, which is never a fun feeling, especially if you are a spender. So fast forward a few months and we actually ended up getting divorced.
Bobbi Rebell:
The marriage was less than a year, right?
Kayla Sloan:
Yes, just under a year. And we had no kids or property to split up, thank goodness, because that would have made it much more difficult I'm sure. I've talked to a lot of friends who've been in that situation. Anyway, we split up and luckily I was able to take the assets with me that I had brought into the marriage; it's just my vehicle, household belongings, things like that. And even my retirement account was intact.
Bobbi Rebell:
So this is interesting. So you were actually in okay financial shape when the marriage actually split up.
Kayla Sloan:
Yes. I really didn't end up that bad off. I was kind of struggling to pay the bills with an immediate cashflow because of only working part-time and suddenly having to pay the rent by myself.
Bobbi Rebell:
But then the trouble came with this emotional shopping, which was really ... This is interesting. It was reactive to the fact that he was so controlling with your finances during the marriage, so then you went the other way.
Kayla Sloan:
Yes, I went the absolute other way. I went into total rebellion mode. I adopted a pet kitten. I went to the mall during every spare moment I had when I wasn't working or in class, and racked up about $10,000 in credit card debt and had only about $3 in my bank account.
Bobbi Rebell:
Oh, my goodness. And of course, then comes graduation time and there's even more debt, correct?
Kayla Sloan:
Yes. Graduation brings on more debt for most people. As you and I both know, student loans are a huge problem. I was lucky in only having about $8,000 of student loans when I graduated, making a total of $18,000. But then I turned right around at age 21, right after graduating, and bought a house for $120,000, so I really was feeling that financial pinch after I graduated.
Bobbi Rebell:
So total debt ... I'm trying to do the math here. $140,000?
Kayla Sloan:
Yeah, pretty close. Pretty close.
Bobbi Rebell:
At age 21, with income of about 10 bucks an hour still?
Kayla Sloan:
At that time, I did land a full-time job after graduation, so my take home salary was probably about $25,000 plus benefits.
Bobbi Rebell:
What I like about this story is that you turned things around basically by starting to think like an entrepreneur. So tell us, fill us in on the rest of what happened.
Kayla Sloan:
Yeah. So I started looking for ways to earn extra income and stumbled upon the world of freelance writing and virtual assistant work. And virtual assistants are basically people who work behind the scenes and help entrepreneurs grow and maintain their businesses. And so I started doing this because I love organizing things and helping people create systems, and really working through some of those problems that entrepreneurs typically struggle with. And after doing it on the side for about 12 months, I was earning the same amount from my part-time business as I was making at my full-time job. So I actually quit my job.
Bobbi Rebell:
Love that. And now you are growing that into a full-blown consulting firm, which is amazing and something that so many entrepreneurs really need these days.
Kayla Sloan:
Yes. I am so excited about this. So I started training people who wanted to be virtual assistants, but then I realized there was a need on the other side for connecting entrepreneurs with those virtual assistants. I find that a lot of business owners struggle with finding someone they can trust, someone who's already trained and knows how to step in and get to work, and so that's where I try to fill that void.
Bobbi Rebell:
Let's talk about what the lesson is for our listeners from this story because you basically were able to stop the emotional spending and then turn that into your motivation to start your own business and basically control your income flow. So what is the lesson for our listeners? And especially, how do you stop that emotional shopping?
Kayla Sloan:
Oh my gosh, stopping the emotional shopping can be so, so hard. But for me it was really about finding something else to fill up my free time, which ended up being my business.
Bobbi Rebell:
So it all came together. So for listeners, what can they do? After shopping, shopping, shopping, how do you come up with something? Do you have a technique? Is it just surfing the internet? What was it that got you this idea?
Kayla Sloan:
Yeah. My first ideas did come from surfing the internet. I did some of those classic things like cutting up the credit cards and putting the rest on ice and all of those kinds of things. And they sound crazy, but they work.
Bobbi Rebell:
So you did those things, and then you just decided that you had to up your income?
Kayla Sloan:
You know, you can only be so frugal. There's only so many things you can cut from your budget, especially if you start to feel deprived. And as a spender, I liked to spend money. I liked my lifestyle, so I decided that I also had to find a way to increase my income because I didn't want to cut anything else from my budget.
Bobbi Rebell:
So your money tip has to do actually with kind of a splurge with things that you already have, which actually is very relatable for many people who get divorced and have a lot of wedding presents that maybe are still unopened, not that I would know anything about that kind of thing. But a lot of times, we get fancy stuff for our weddings or graduations or all kinds of special occasions, and then it just sits there because there's never an occasion that's good enough for this stuff.
Kayla Sloan:
Exactly. That's exactly what I found was, I was going through my divorce, I had all these beautiful that I had received for my wedding, and since I was super broke I didn't have any money to spend. So my tip and the way I that I decided to treat myself, rather than spending is that I started using things I already had. So instead of saving my nice dishes that I got for my wedding and using cheap ones every day, I decided I was going to just use the pretty ones. They make me feel happy.
Bobbi Rebell:
And why not? We're all so busy saving for these magical events that are going to happen, and then we don't ever use all this stuff that we have.
Kayla Sloan:
Exactly. And it just sits there and collects dust, and there's no point in that.
Bobbi Rebell:
So what are some other examples of things that you used that people can relate to?
Kayla Sloan:
I said my nice dishes, and then I also used all of those kitchen appliances that never get brought out. And I decided I was going to make some of my favorite meals instead of saving them for a special occasion or saving them when I had guests over and things like that. I'm a big foodie, so those are probably two of the biggest things for me.
Bobbi Rebell:
Let me ask you just quickly, how do people know if they need a virtual assistant? Because I think that's something that confuses people, is where is the tipping point where you're at the point where you need somebody, and are there certain things to look for?
Kayla Sloan:
Yes. So the first sign that you need a virtual assistant is that things start slipping through the cracks. If you find yourself as an entrepreneur or business owner with more things to do than time to do them, then you definitely need to bring someone on. For entrepreneurs, it can be difficult because you don't want to bring someone on and get stuck paying them if you have busy seasons and slow seasons, so a virtual assistant can really help fill that void because you can kind of pay as you go; pay for a certain number of hours per month, and then if you have extra work, you can buy some more. So it's a lot easier than hiring an employee for a set number of hours no matter what.
Bobbi Rebell:
And what are some specific things that people can outsource to a VA?
Kayla Sloan:
A lot of people start with social media because they find that social media is something that takes up a lot of their time and can easily be outsourced to a virtual assistant. I know a lot of other things are blog post research; sometimes they'll bring on someone to do outlines and things like that. And then also a lot of people who have podcasts use virtual assistants, hint hint.
Bobbi Rebell:
For what kinds of things?
Kayla Sloan:
They will help with show note creation, transcription. They can help with, again, social media when it comes to your podcast as well, so a lot of different things.
Bobbi Rebell:
And what do VAs typically run? What's the range that people would expect to pay?
Kayla Sloan:
For a U.S.-based virtual assistant -- which I think is important to make that clarification -- you're probably going to be looking at as little as $15, but probably as much as $40 or more if you have someone who's very experienced.
Bobbi Rebell:
Tell us more about where people can find you and the kind of things that you are doing, and how people can use your services.
Kayla Sloan:
Sure. My main website is at kaylasloan.com, and that is where you can find out more information about how to work with me to get connected with a virtual assistant. Or if you're wanting to be a virtual assistant, we can connect there as well. And I'm also all over social media.
Bobbi Rebell:
And your handles?
Kayla Sloan:
Are all the same: @kayla-r-sloan.
Bobbi Rebell:
Kayla R. Sloan, very important. Well, thank you so much, Kayla Sloan. This has been absolutely wonderful, and congratulations on your growing business.
Kayla Sloan:
Thank you so much. I hope you have a great day.
Bobbi Rebell:
Hey friends, so here's my take. I love what Kayla is doing for entrepreneurs and for the virtual assistants that are so important to their success. Financial Grownup tip number one: consider outsourcing. Whether or not you are an entrepreneur, think about the value of your time. If you're running a business, maybe you're running a household, consider the best use of your time. Outsourcing may be hiring a babysitter if you're a parent trying to grow a business from home, or if you're an entrepreneur trying to do everything. Sometimes you're better off doubling down on your strength, say sales, or anything that directly has to do with your clients, and it may make sense to have a VA do things that are more administrative in nature, like the billing. Weigh the cost. The great thing about a VA is that you can often hire them on a project basis, so you're not locked in the way you would be if you hired a full-time assistant.
Bobbi Rebell:
Financial Grownup tip number two: I love Kayla's money tip to use what you have, even if it's super fancy. But here's my tip if you don't have all that fancy stuff but want to have the fancy stuff and maybe don't have the budget or want to spend the money to go and buy it in the store. You see all that fancy wedding gifts like China and crystal, well a lot of people don't really want it, or they inherited it and they want to sell it, they get rid of it, they just don't use it. So you can often get great stuff, fancy stuff, far less than the everyday stuff if you know where to look. Who doesn't like to feel fancy, right?
Bobbi Rebell:
So some sites to check out: Replacements.com -- they sell vintage and current dinnerware, crystal, silver, and other collectables. Also take a look at Chairish, like sitting on a chair, chairish.com. You can find vintage dinnerware at really amazing prices. They sell a ton of other stuff, including chairs, but also other furniture and vintage stuff; really nice stuff. I spotted a vintage Hermes dinner plate set that retailed for $2,000 and it was down to just 950 bucks. The Real Real, which is known for selling designer handbags and clothing, they also -- a lot of people don't realize this -- they also have things like dishes and serving stuff; high-end names like George Jensen, Tiffany, Vernadeau, all at massive discounts. So check those out if you like the higher end stuff instead of going for the everyday stuff that you may see in, whatever, the mall stores. I don't want to name names, but the everyday stores. You guys know what I'm talking about.
Bobbi Rebell:
Thanks to all of you for being part of our growing Financial Grownup community. If you're enjoying the show, consider leaving a rating and even a review on Apple podcasts. I know it seems like it's going to be really difficult, but it only takes a couple of minutes and it is really appreciated, and makes a big difference in helping other people discover the show. And of course, hit that subscribe button to make sure you don't miss any upcoming episodes.
Bobbi Rebell:
Please follow me on Twitter @bobbirebell, on Instagram @bobbirebell1; you can also DM me there. And then don't forget, if you want a custom video like the promos that we do for the show, join the competition. Share the videos when you see them. You can even see them now on the YouTube channel that we have set up, so just search for Financial Grownup with Bobbi Rebell, that channel on YouTube, and you can see the promos there and check them out that way.
Bobbi Rebell:
We have our first listener episode coming up in June. If you want to be on the show and have a great money story to share, email us info@financialgrownup.com. Tell us what money story you would share, and what everyday money tip you would like to share with our audience, and we will be in touch if you are chosen.
Bobbi Rebell:
Thank you to Kayla Sloan for sharing her story. We'll be watching how her business grows along with all the entrepreneurs that she is working with. So thank you, Kayla, for helping us all get one step closer to being Financial Grownup.
Announcer:
Financial Grownup with Bobbi Rebell is edited and produced by Steve Stewart, and is a BRK Media production.
When Brandless Co-Founder and CEO Tina Sharkey turned 30, she didn’t want a birthday party- she just wanted the cake. Specifically a photograph of a walking birthday cake with legs that was by artist Laurie Simmons. Little did she know the significant role that work would play in her life.
In Tina’s money story you will learn:
-How Tina was able to re-direct her mom's budget for a birthday party to a work of art she had been eyeing
-Why the art meant so much to Tina
-The reason art is both a passion and an investment for Tina
-How she applies her art-buying philosophy to her entrepreneurial ventures
-What inspired Tina to start collecting art as a teenager
-How the art now has multi-generational significance
In Tina’s money lesson you will learn:
-The importance of commemorating milestones in life
-Creative ways to marking important moments including crowdsourcing
-Why she believes investing in significant items will have long term impact
In Tina’s money tip you will learn:
-Her grandmothers strategy for getting discounts, when things are not on sale
-The specific things tina’s grandmother would say
-Tina’s philosophy of never being afraid to ask
-How to get online discounts, even when you are in a store
-The new way Brandless is offering free credits to it’s consumers
In my take you will learn:
-Techniques to re-direct sincere, well intentioned gifts that miss the mark just like Tina did
-What to do if you are giving a gift and don’t know what to get someone
-The value of giving a memorable gift that will hold the test of time
-Why we should re-think the value of the brands we buy
EPISODE LINKS:
Learn more about Brandless on their website: Brandless.com
Follow Tina and Brandless!
Instagram: @tinasharkey @brandlesslife
Twitter @Tinasharkey @brandless
Facebook: Tina Sharkey Brandlesslife
Here is a link to the fabulous birthday cake photo Tina bought!
Learn more about Laurie Simmons http://www.lauriesimmons.net/
As Tina mentioned, her art hangs at museums including Moma
Transcription
Bobbi Rebell:
Support for Financial Grownup with Bobbi Rebell. The following message come from TransferWise, the cheaper way to send money abroad built by the brands behind Skype, TransferWise takes a machete to the hefty fees that come with sending money abroad, so don't get stung by a bad exchange rate or sneaky fees, join the 2 million people who are already saving with TransferWise. Test it out for free at TransferWise.com/podcast, or download the app, it is the wise way to send money.
Tina Sharkey:
That piece of art has since appreciated tremendously in value, probably 100 times, in fact, I even found out that that photograph is now hanging in MoMA. All the art that I've ever bought have been appreciated tremendously in value, and I've only bought things that I thought were real investment pieces.
Bobbi Rebell:
You're listening to Financial Grownup with me, certified financial planner Bobbi 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:
That was Brandless CEO Tina Sharkey talking about a piece of art that has been very meaningful in her life and not just because its financial value has literally skyrocketed as in it's in museums, people. But first some quick housekeeping notes before we get to Tina's interview. First, welcome if you're joining us for the first time, and welcome back if you are returning. If you enjoy this show, please share with someone in your life that you think would also enjoy the podcast. For those of you who have spotted our video promos, want to win a custom one? Pretty easy. We are having a little experimental competition from now until July 1st, if you see them, share them on social media, share on Facebook, retweet, repost, all that good stuff. The winner of the competition will get a free custom video that could be for your business, for yourself. We're going to look at who is the most active in sharing those videos.
Bobbi Rebell:
By the way, this a very special episode, we are at episode 50, time flies. I'm so excited about this guest for this milestone show. Tina Sharkey, she heads up one of the most buzzed about brands out there, Brandless. So named because they take out what they call the brand tax sale, so sell everything for just $3. $3, you heard me right, they're pulling it off major retail disruption happening. Not such a surprise though, when you hear a little bit about their co-founder and CEO Tine Sharkey. She also co-founded the women's media site, iVillage. She headed up BabyCenter, so much more. Here is Tina Sharkey.
Bobbi Rebell:
Hey, Tina Sharkey, you're a financial grownup. Welcome to the podcast.
Tina Sharkey:
I'm so psyched to be here. Thank you for having me.
Bobbi Rebell:
You are the head of one of my favorite new companies, Brandless named. You have so many accolades. Ad Age startup of the year, Fast Company Most Innovative Company of the Year, I mean, we could basically spend the whole podcast talking about how loved your new company is. Tell us a little bit about what makes Brandless so special.
Tina Sharkey:
I think it probably, just starting with the name. I think the name definitely catches people off guard because they think "Wait, are you anti-brand? Are you not a brand?" I'm like "Wait a second, we are unapologetically a brand." We're just reimagining what it means to be one, one that's built in total collaboration with the community that we serve. One that its core belief system is about scaling kindness. One that's all about truce and trust and transparency, and most importantly, we're hoping people will live more and brand less. At Brandless, everything that we make at Brandless.com is non-GMO food, mostly organic, vegan, gluten free, clean beauty, EPA Safer Choice certified cleaning. Everything that we sell at Brandless is $3, even in our first 10 months of life, we feel like we're really making a dent in democratizing access to better stuff at fair prices, and we live by the belief system that who says better needs to cost more? We want to make better everything for everyone. That's what we do at Brandless.com, and we're having a great time doing it.
Bobbi Rebell:
I can't believe it's only been 10 months, I feel like it's already changed our culture so much. All right. Speaking of culture, art, let's talk about art, because that has to do with your money story.
Tina Sharkey:
It does. I am not an artist, but I definitely see the world in pictures. There's an expression in French called [foreign language 00:04:37], and [foreign language 00:04:39] means struck by lightning, but the French interpretation of that is like love at first sight. When you say to someone in French, like "I had a [foreign language 00:04:47]," it means you feel in love with someone at first sight. That's how I've always admired art, and loved art, and found art, was that, I admire a lot of art, but there's times when it's like a [foreign language 00:04:58], where I feel like "Oh my goodness, that is like needs to be in my life." Because, at the end of the day, we don't ever really own art, you just take care of it while you get to have it, because it should withstand the test of time. I've been collecting art with every saved penny, nickel and dime since I'm a teenager.
Bobbi Rebell:
You wanted to share the story of your first big piece of art, which you got because you were actually, your mom was going to throw a party for you, tell us the story.
Tina Sharkey:
Yeah, yeah. When I was turning 30, my mom wanted to make a special party for me. I said "You know what, mom? That's so kind and generous of you. I love that. But what I really want is I have my eye on this piece of art, and there's no way I can afford it. If you wouldn't mind, maybe we could just do a small like family dinner or something, whatever budget that you were going to spend on the party, if you would help me towards this piece of art, then it would be something that I could have forever." It was actually a photograph of a walking birthday cake, it's like that giant, giant birthday cake on legs, by the artist Laurie Simmons. It's like a birthday present, because I'll have my birthday every day by looking at this photograph.
Bobbi Rebell:
Oh, my gosh. I love it.
Tina Sharkey:
That was many years ago. That piece of art has since probably 100 times in value. In fact, I even found out that that photograph is now hanging in MoMA.
Bobbi Rebell:
Wow. It's something that you love, and it ended up being an investment as well.
Tina Sharkey:
Yes. All the art that I've ever bought, not that I've sold any. Actually, that's not true, I think I've sold two pieces. But all the art that I've ever bought have been appreciated tremendously in value. I've only bought things that I thought were real investment pieces.
Bobbi Rebell:
Do you approach art as an investment first or purely from love? Or do they naturally go hand-in-hand with you?
Tina Sharkey:
I think it's that [foreign language 00:06:51]. It's like first it's about love, and really, really feeling like "Oh my goodness. I can't sleep." Like art you don't buy like shoes or clothes, it's not something you just make an instant decision on, it's something that's considered, because you have to live with it for the rest of your life, or you know, that's the idea. When I first see it, and then I think about it, I think about how I would live with it, how would it be part of my own family legacy, my own family history. That particular one, the story is even deeper in that my son was late in his verbal skills, he was sort of a running toddler before he was really forming sentences. But the only two words that he had were happy birthday.
Tina Sharkey:
Happy birthday meant everything at that time. This photograph has so much meaning to me, because it was a picture of a birthday cake. Charlie was saying happy birthday all the time, and my mom gave me the money that she was going to spend on my birthday party, and I put this photograph in my will to give to my son, because it always reminded me that his first two words were happy birthday.
Bobbi Rebell:
What is the takeaway for the listeners. How can they apply this to their own lives?
Tina Sharkey:
I think the way to apply to your own life, not everybody loves art, not everybody wants to invest in art, not everybody has the home, or the walls, or wants to be in that way, but thinking about when there is a milestone in your life that you want commemorate, how can you use that milestone to really do something that either is an experience, or something that you can both love and express your joy, but also have something that can withstand the test of time. Not just be like if you're going to have that great bottle of champagne or whatever it is. Do you really want that or would you like something that you can have forever, for a longer period of time? Thinking about milestones and passion, but also investments and time, because those things can withstand the test of time.
Tina Sharkey:
Taking that longer term view and commemorating those milestones with savings, or with opportunities, or with crowdsourcing a gift rather than having everybody get you something small, maybe you put it in a pool together to invest in something that's really going to be something that you're going to have for a long, long time to come.
Bobbi Rebell:
What a great idea. You also have a great idea that I totally buy into for your money tip that you're going to share.
Tina Sharkey:
This is great. My grandmother, we called her the goddess of goodness, and she was seriously the nicest person you ever met in your whole life. But, she did not believe in paying retail. Wherever she went, it didn't matter whether it was the finest boutique on Madison Avenue, or TJ Maxx, or Target, she would always say "Is this in line for reduction?" I swear to you, nine out of 10 times, she would always get like a 10% discount, or they said "Oh, we have a sale coming up, why don't we'll give you the sale price now." Or "We'll let you know when this goes on sale." Or "You know what? We're happy to get that, given that you're buying two things, we'll give you the second one at a discount."
Tina Sharkey:
The money tip there is never be afraid to ask. There is no harm in asking. Likely, there is a discount to be had. One of the tips that my grandmother didn't know that I now use, which is very much in line with that, is that many physical retail stores also have catalogs or also have websites. Often, when you sign up at their websites, they'll say "If you sign up and give us your email address, we'll give you 10% off," or something like that. You can say to them in the retail store "Do you offer that discount upon signing up for your email on your website?" If they say yes, then you can often say "Would you mind applying that discount if I do that here, right now?" They often will give you that right there at the retail store.
Bobbi Rebell:
So smart. Another way to save money is something happening at Brandless right now. You have exciting stuff coming up, tell us.
Tina Sharkey:
We do. We do. Just less than a year into our life, we are just recently rolling out our referral program. If you have an account on Brandless, which costs nothing to set up, and you share Brandless with friends and the discrete code that you can get in your account page, you can give a friend a $6-credit towards building their Brandless box. When they use it, you get a $6-credit to building your next Brandless box. That referral, when you think about all the people in your network, and the fact that everyone deserves to have better and everyone deserves to have better fair prices, you can give them a running start, and for every friend that uses it, that gives you more Brandless dollars to use towards your Brandless box.
Bobbi Rebell:
Basically, free money. Thank you, Tina. Tell us more about where people can find out more about you and of course about Brandless.com, but also you.
Tina Sharkey:
If you want to find out about me, you can follow me on Twitter @TinaSharkey, you can follow me on Instagram @tinasharkey, you can follow me on Facebook, but I would say the most important thing, because it's not about me, is really go to Brandless.com and tell us about you, join our communities at Brandless on Facebook, join our community and follow us @Brandlesslife on Instagram, because it's not about us, it's really about you, and we want to highlight and spotlight and share the incredible stories of the awesome people in our community. If you have recipes you want to share, if you have stories you want to share, if there's a favorite Brandless product that you love, or if there's a product you'd like to see that you think should be Brandless, let us know.
Bobbi Rebell:
Great. I cannot recommend the website highly enough, it's very interactive, there's so much great content there. You will end up enjoying yourself spending lots of time there, and time well spent. Thank you so much, Tina Sharkey, this has been wonderful.
Tina Sharkey:
Thanks, Bobbi, have the best day.
Bobbi Rebell:
Okay, friends. That interview let me feeling pretty empowered as a consumer, and excited about the changes happening in the retail landscape. But here's my take on what Tina had to say about her experiences. Financial Grownup tip number one, we all have so many well-intentioned gifts, they're the things we just don't want, the gift-giver was really sincere, and we don't want to return them, or we give them for of course a lot of reasons, mainly you just feel bad about it, if you feel ungrateful, but you don't want it, and then it sits in your house forever. The truth is, when I give a gift, and I think when most people give gifts, they want it to be something that the receiver really wants. We don't want to miss the mark.
Bobbi Rebell:
Sometimes, it pays to be a little bit creative. This is just one idea, it can be tricky, but something to think about. One of my favorite presents ever is a very special Judith Ripka ring that my husband got for me when we were first dating. He was the one that picked it out, he went to the store, he made the choice, it was on him. However, that was after one of my friends discretely let him know the kinds of things that I would really like. He had some guidance. Because of that, he was able to get something that I just absolutely love and it's just perfect.
Bobbi Rebell:
Tina's mom was going to spend a whole lot of money on a party that frankly Tina just wasn't that into, what a waste of money that would've been. Thankfully, Tina spoke up. In the end, she was able to get a piece of art that she loved. It reminds her of her mother, it reminds her of that birthday, it has wonderful associations, it even is multi-generational now because of the way that her son has interacted with it. Even though she doesn't plan to sell it, the reality is she could, and she says it's gone up maybe 100 times in value. It was also a good investment. Of course, had she had the party, the money would've gone poof for something, again, she didn't really want.
Bobbi Rebell:
Financial Grownup tip number two. Rethink how much you're paying just to buy brand names. Tina of course does have an interest in pointing this out, it is totally true, and we're talking about that many of us mindlessly buy brand names. Think of things like medication where we have reservations about buying the generic version, which by law, literally has to have the same ingredients, and yet we, myself included, find ourselves often paying up for brand names, especially everyday household goods. We love our brands. But, just like Tina redirected her birthday party money, maybe think about it this way, if you redirect the money that you would save by avoiding paying the brand tax, and add that all up, think about what you could now afford. Just a reminder, I will always tell you if I have any affiliation, any ties to a company. I have no financial affiliation or ties to Brandless, I'm just a fan.
Bobbi Rebell:
Also, sticking to the birthday theme, I feel like we're celebrating a birthday here, the show turning 50 episodes. I can't begin to thank all of you for your support. Time goes so fast. Anyway, to learn more about the show, go to BobbiRebell.com/financialgrownuppodcast. You can also sign up for our newsletter, we don't send it out very often. I believe there's just too much email out there, so I try to be careful with it. But when we do send it, we make it meaningful. Hopefully you believe it's worth your time and enjoy it.
Bobbi Rebell:
Continue to keep in touch. I am on Twitter @bobbirebell, on Instagram @bobbirebell1, you can also DM me there, feedback, suggestions for the show, all that good stuff. On Facebook, my page is Bobbi Rebell. If you like the show, please take a moment to rate and review on Apple Podcast. Tina Sharkey is a total boss. I don't know about you, but I feel like I'm going to see little legs behind birthday cakes for a little while. Imagining it, I can't get the image out of my head. She emailed me a copy of the photo, so I'm going to try to paste that into the show notes. I don't know if it'll work, but I'm going to try ... I think it'll work. I'm going to try. You will get a kick out of the picture, if not, I'll certainly find a way to send a link so that you guys can see the image that she is talking about. Thank you, Tina Sharkey from Brandless for helping us all get 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.
An unexpected instagram connection helped New York City artist Kristin Simmons pivot from her start in advertising to a full-time, award-winning, and profitable art career. Her provocative work is informed by the excessive, materialistic cultures of Wall Street and New York City.
In Kristin’s money story you will learn:
-How she made her first art sale while working in advertising
-The hashtags she used to attract a buyer to her work
-The price of the first piece of art she sold
-Why so much of Kristin’s work is tied to money and consumerism
-Her take on millennials attitudes about money and materialism
-Kristin’s background and how it led her to her career as an artist
-How the art world works when artists use galleries, versus when they self-promote on social media
-How you can buy art that is affordable
In Kristin’s money lesson you will learn:
-Her advice on how to follow your dreams, and still pay your bills
-Ways to use social media to leverage your skills and the content you create
-Pricing strategies for art
In Kristin’s money tip you will learn:
-How having the right basic ingredients at home will help you make more meals at home, and save money
-Kristin’s favorite 5 foods to have on hand
-Where Kristin goes for her recipes
In My Take you will learn:
-How to buy art as an investment
-When to use a gallery and when to seek out an artist directly
-How to use social media to research and find art to buy
-Why insurance needs should always be considered when you buy art
You will also learn how you can win a promotional video, like the ones for financial grownup for your own business- or just for yourself.
EPISODE LINKS
Kristin Simmons website: https://www.kristinsimmonsart.com/
The name of the arts gala she is performing at on June 7th is ChaShaMa: https://www.chashama.org/event/gala2018
This summer Kristin’s art can be seen at Galerie Mourlot (https://mourloteditions.com/) as part of the Hamptons art fair (http://artmarkethamptons.com/) in early July.
Research and buy art on some of Kristin’s favorite sites:
Mourlot editions
Wide Walls
Art Space
Paddle8.com
Also mentioned: RealSimple.com
Follow Kristin!
Instagram https://www.instagram.com/kristinsimmonsart/?hl=en
Facebook https://www.facebook.com/kristinsimmonsart/?ref=bookmarks
Twitter https://twitter.com/Kristins_Art
LinkedIn https://www.linkedin.com/in/kristin-simmons-07596031/
An unexpected instagram connection helped New York City artist Kristin Simmons pivot from her start in advertising to a full-time, award-winning, and profitable art career. Her provocative work is informed by the excessive, materialistic cultures of Wall Street and New York City. In this Financial Grownup podcast episode you'll learn which hashtags to use to attract buyers on instagram and how you can follow your dreams while still paying the bills. #MoneyTips #Hashtags #Instagram #AttractBuyers
An unexpected instagram connection helped New York City artist Kristin Simmons pivot from her start in advertising to a full-time, award-winning, and profitable art career. Her provocative work is informed by the excessive, materialistic cultures of Wall Street and New York City. In this Financial Grownup podcast episode you'll learn which hashtags to use to attract buyers on instagram and how you can follow your dreams while still paying the bills. #MoneyTips #Hashtags #Instagram #AttractBuyers
Transcription
Bobbi Rebell:
... simpler for financial grownup with Bobbi Rebell and the following message come from TransferWise, the cheaper way to send money internationally. TransferWise takes a machete to the hefty fees that come with sending money abroad. Test it out for free at transferwise.com/podcast or download the app.
Kristin Simmons:
I do these pieces of old stock certificates, which is ironic because it's basically dead money, and I started drawing these Mad Men characters on them with these Lichtensteinesque bubbles and stock quotes coming out of their heads, and I posted one on Instagram, and I hashtagged the name of a company, and someone reached out to me and said, "Hey, my dad used to own that company. Can I buy that piece of art from you?"
Bobbi Rebell:
You're listening to Financial Grownup with me, certified financial planner, Bobbi Rebell, author of How to Be a Financial Grownup, but 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:
Hey, everyone, before I tell you about this week's guest, I want to let you know I have a big announcement coming up after the interview, and it has to do with something that you're all asking me about, the video promos that we put out with each episode, and how you can get them for you or your business, so stay tuned for that.
Bobbi Rebell:
Now to our guest. You heard her talking about her first sale. Want to know how much that first piece of art sold for? Well, stay with us here. The number surprised me. Artist Kristin Simmons incorporates themes of money and consumerism into her work in thought provoking and frankly sometimes polarizing ways, but she doesn't moralize. She's won a number of awards, including the National Endowment of the Arts award. Kristin grew up in New York, and her work has been informed by the city's culture, which can be a bit over the top when it comes to money here in New York City. She actually started her postcard career working in advertising doing art as her side hustle. She was able to have a studio area in her apartment, in part because of her early decision to buy an apartment at the age of 23. Being realistic, she did not see it as something that she could do for a living, especially in New York, that is, being a full-time artist. That is, until her Instagram feed prompted her very first sale. Here is artist Kristin Simmons.
Bobbi Rebell:
Hey, Kristin Simmons. You're a financial grownup. Welcome to the podcast.
Kristin Simmons:
Thanks very much, Bobbi. I'm so happy to be here today and talk with you.
Bobbi Rebell:
I recruited you because you are a rising star artist, and you focus so much on money and finance related iconography and themes, a little bit polarizing sometimes. Tell us briefly about your art.
Kristin Simmons:
Definitely. So, my art is very much focused on consumerism and the idea of what money can do for us, both its privileges and its dangers that it has.
Bobbi Rebell:
What inspired you? Can you tell us a little bit more about it?
Kristin Simmons:
My art is really inspired by the time I grew up in the late 80s, early 90s, when Reaganomics was really in full swing, and the market was booming, and I think a lot of millennials have certain mindsets or proclivities about spending and money because of how we were raised from a subconscious age.
Bobbi Rebell:
And you were raised to be very aware of money. Tell us your money story.
Kristin Simmons:
Sure. I do these pieces of old stock certificates, which is ironic because it's basically dead money. These are stocks that people were issued pre-Quotron machine in the 60s and 70s, and I started drawing these Mad Men characters on them with these Lichtensteinesque bubbles and stock quotes coming out of their heads, and I posted one on Instagram, and I hashtagged the name of a company, and someone reached out to me and said, "Hey, my dad used to own that company. Can I buy that piece of art from you?"
Bobbi Rebell:
That's crazy.
Kristin Simmons:
Yeah.
Bobbi Rebell:
Can you tell us how much you sold that first piece for?
Kristin Simmons:
The first piece I sold for $750.
Bobbi Rebell:
That's nice.
Kristin Simmons:
Yeah, it's great, and it was a unique work, so now the work has escalated to a greater price, but my prints still go for around that. I'm a big believer in trying to make original art at a price where people who are saving can afford it and also can compound over time if an artist does well in their career, but it was an amazing moment, and it really spurred me to think, okay, how can I hedge my marketing experience and maybe I'm onto an idea here that other people are interested in.
Bobbi Rebell:
That's so interesting. How much of your art sales are tied to social media, as opposed to people discovering it, because I do know you do have showings in traditional art galleries.
Kristin Simmons:
At the beginning, they were almost all tied to social media. Now I'd probably say about 30 percent.
Bobbi Rebell:
That's so interesting. So, your Instagram and social media basically is disrupting, I mean, not just yours but Instagram in general and social media is disrupting the art world in a way that I don't it is being talked about that much. It's fascinating.
Kristin Simmons:
Yeah. And it has been for a while, and other websites, too, that are more run by artists or artist run galleries, where they don't take as big of a commission. It's still a very okay market, the art world, and I don't even profess to know that much about it. I learn more every day, but I also kind of find it interesting because of that aspect and because of it's so involving and there are no set rules quote-unquote.
Bobbi Rebell:
What would be the lesson for people, you got noticed simply by being proactive on social media, and being compelling. I mean, your Instagram is really good.
Kristin Simmons:
Thank you. I would say everyone has something to share. Everyone has a story to share or something that's unique or special about them, and don't be afraid to have that voice. Yeah, you may get criticized for it. There will always be people who don't like what you're saying or think that your work or your voice is crap, but that's just one of the evils of the web, so again, I would just say be confident, and just start creating content or posting things or looking into things that interest you and be vocal about that.
Bobbi Rebell:
And if you're approached about selling something, how do you even know where to begin with the pricing?
Kristin Simmons:
For sure, sure. So that's a question I get all the time, and there's a simple answer and a not simple answer. The simple answer is what's my time, my hourly rate into making something, what are the material costs, and what is the idea worth. That's kind of a simple formula, and how you figure out what an idea is worth is a little more complicated obviously. Pricing for artists is very much set by themselves. It's a market that they set based on what the value they think their work is. For me, it's slightly gone up over time because I've had option results, I've had museum shows, and yeah, I kind of started at, again, that formula of idea, time, plus materials, and now once you gain additional credentials, you are then advised by galleries to adjust the numbers accordingly.
Bobbi Rebell:
And, of course, the galleries take 50 percent. Have to remember that.
Kristin Simmons:
Exactly.
Bobbi Rebell:
I want to talk about the money tip that you have brought with you because it's something that so many of us can benefit from, and it has to do with saving money by cooking, and you talk about the five ingredients. What do we need? Help us, Kristin. Help us.
Kristin Simmons:
Oh, my God, definitely. I mean, cooking's a great way to save money, and since I work from home, I cook all the time. Five ingredients. There are a bunch of different combinations, but the ones I like are eggs, spinach, rice, avocado and olive oil.
Bobbi Rebell:
Why those, and what do you make with those?
Kristin Simmons:
So, they're full of anti-oxidants and omega threes, most of those ingredients, and what I typically make is, I'll make like a kimchi bowl, Korean style, with rice, and I'll put an egg on top of it, and then you just throw some vegetables in it and some olive oil. It's a really healthy meal. It's very low cost to buy those ingredients, and it keeps you full for most of the day and kind of keeps your brain working and your body feeling good.
Bobbi Rebell:
Where do you get the recipes? Do you have any websites you recommend?
Kristin Simmons:
Yeah, Real Simple has actually a great cookbook. I think theirs is like 30 ingredients or something under 30 dollars that you can buy. I sometimes get recipes, I sign up for the self.com newsletter, even though I don't read their magazine. They often have good recipes, but yeah, Real Simple is probably the first place I would look. I really like their recipes.
Bobbi Rebell:
Excellent. All right, let's talk more about your art, what inspires you, where you're going to be showing this summer, where people can see it, and all that good stuff.
Kristin Simmons:
Thanks so much, Bobbi, again for having me, and in terms of the summer and what I'm doing, I am going to be part of an art gala on June 7th in New York called [Shamacha 00:08:48]. I'm hoping I'm getting the name right, or the Shamana Gallery.
Bobbi Rebell:
We'll put a link in the show notes.
Kristin Simmons:
It's a benefit hosted by the Durst organization, who gives a lot of money to the arts every year, and I'm going to be kind of doing an interactive performance piece in an office [inaudible 00:09:03] space there, and that'll be the first time I'm doing interactive performance work, so I'm looking forward to that, and then I will also be showing at the Hampton's Art Fair, which is on July 5th, because the 4th falls on a Wednesday, so there's that long weekend that comes back. July 5th to the 8th, the summer with Gallery Mourlot. That's kind of one of the biggest galleries I show with. I'm going to be showing new work there, which I'm really excited about.
Bobbi Rebell:
And where can people find you on social? Especially your Insta, but everywhere.
Kristin Simmons:
Sure. So, it's my name. It's KristinSimmonsArt, so K-R-I-S-T-I-N. Not E-N. S-I-M-M-O-N-S-A-R-T. That's my Instagram, and that's my website, too.
Bobbi Rebell:
Wonderful. Thank you so much.
Kristin Simmons:
Thank you so much, Bobbi.
Bobbi Rebell:
Hey, everyone. I love that Kristin advocates cooking at home. It's an easy and usually painless way to save money. It's also usually healthier, and she's right. Have five key ingredients at home. Yours might be different from hers, but that is definitely a way to save money. I want to focus on the idea though of buying art as an investment, or maybe just because you like it and want to own some art. So, Financial Grownup tip number one, Kristin pointed out kind of an open secret in the art world. Galleries take 50 percent. So, if an artist is selling work through a gallery, the gallery has costs and plays an important role, and they should get paid, so you got to take that into consideration if you go that route. However, as a buyer, if you know of an artist and you are interested in work that has not been seen at a gallery, you can go to the artist directly and have a lot more flexibility on the price.
Bobbi Rebell:
Thanks to social media, that is easier than ever, and as Kristin mentioned, well, 750 bucks, which is what she got for her first sale is a lot of money for many people. It's also a realistic price point for many people looking to start an art collection. If you're interested in actual places to go to discover artists, I did reach out to Kristin after we taped, and she sent along a few resources. I'll put them in the show notes as well, but she mentions Morlot Editions, I hope I said that correctly, Wide Walls and Art Space for original art. She also says Paddle8 is a great resource where you can even sign up for a payment plan. Prices there range from as little as 75 dollars to 15,000 dollars for most contemporary work. So, 75 bucks, you could do that.
Bobbi Rebell:
Financial Grownup tip number two. When you do buy art, depending on the value, make sure that you insure it. Art can often be insured just within your home owner's policy or your renter's insurance, but read that policy. You may need to add a floater as a supplement to the policy, and get the work appraised. It's also a good idea to make sure there are photographs of the art, so if something does happen, there are documents to support your claim.
Bobbi Rebell:
Okay, onto the big announcement. I'm really excited about this. As I said at the top of the show, I keep being asked video promos for the show. Where do I get them made? How can you get one? All that stuff. The secret is I actually make them myself. Even though I was primarily a television anchor and financial journalist in my previous ventures, previous career, I also learned a lot of skills that I now use for things like that. I love making the videos, and I have a lot of fun being creative, and sometimes a little bit silly. So, I've been asked how much I would charge to make them for people, and where someone can hire me, but the truth is I'm not getting into that business. They're not for sale. I've got a lot on my plate with Financial Grownup, and my speaking engagements, and brands that I work with, so that is not going to be my next side hustle, even though a lot of you guys have asked for it.
Bobbi Rebell:
But, I have decided to try an experiment. I am going to give one away to a listener, so here's all you have to do. Between now and let's say July, every time you see me post a video, a promo video on social media, share it, and I will choose the winner based on whoever shared the most videos between now and when I pick the first winner, which again, will be in July. [inaudible 00:13:09] I will make a custom video just for you, or one that you can use promoting your business. We'll work it out. It'll be a lot of fun. I'm really excited.
Bobbi Rebell:
So, all right, thank you all for supporting Financial Grownup, always. Please share this episode, and then the others that you enjoy with your friends on social media, and also, if you have not already, please subscribe so you don't miss any episodes, and this is the big ask. I know they don't make it easy, but it really helps the show get discovered if you rate and review the podcast.
Bobbi Rebell:
More listener involvement, we have just selected our first listener to be a guest. That episode will be coming up in June. I'm excited to share it with you guys. If you want to be considered for the next one, just email us at info@financialgrownup.com. Include the money story and the money tip that you would share if you were selected.
Bobbi Rebell:
To learn more about Financial Grownup, go to bobbirebell.com/financialgrownuppodcast. Follow me on Twitter at bobbirebell. On Instagram at bobbirebell1. On Facebook at Bobbi Rebell. Thanks to Kristin Simmons for inspiring us and showing us all that art can be a profitable side hustle and even your main job, and helping us get 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.
Clever Girl Finance’s Bola Sokunbi is famous for saving $100k on a $54k salary in about 3 years. But then she started dropping $3,000 on a massive collection of luxury handbags, most of which she never even used.
In Bola’s money story you will learn:
-How she saved more than $100,000 on a salary of just $54,000 in three and a half years
-The side hustle that helped her reach that goal
-How after she reached that goal, she made a very unexpected spending splurge
-The fascinating reason, looking back, that she went down that path and kept going!
-The moment she woke up and realized she had to make a change
-Exactly what she did to get back on track and make a profit in the process
-The regret she had despite making money on her debacle
-Why she thinks so much about Amazon stock
In Bola’s money lesson you will learn:
-Why keeping her handbags in top condition was the key in getting a solid return when she went to sell them
-Other ways to maintain the value of resale able luxury goods like handbags
-Her take on investing in goods like handbags compared to the stock market and corporations
In Bola’s money tip you will learn:
-Ways to get luxury goods like handbags for less money without compromising quality
-Bola’s favorite pre-owned goods resources
-How friends can trade or sell handbags to each other
-Bola’s new strategy for buying expensive handbags
In my take you will learn:
-Why I compare Bola’s handbag venture to winning the lottery
-The difference between saving money and building wealth
-How to sell luxury goods like handbags, as well as other things you can sell, like baby strollers
-Why I do not promote buying fake goods as a cheaper option
Episode links
Bola’s website: CleverGirlFinance.com
Bola’s podcast: Clever Girls Know
Follow Bola!
Twitter Clever Girl Finance
Instagram Clever Girl Finance
Facebook Clever Girl Finance
LinkedIn Bola Sokunbi
Also mentioned in the show:
Vestiare Collective
Fashionphile
Rent the Runway
Transcription
Bobbi Rebell:
Support for Financial Grownup with Bobbi Rebell and the following message come from TransferWise, the cheaper way to send money internationally. TransferWise takes a machete to the hefty fees that come with sending money abroad. Test it out for free at transferwise.com/podcast or download the app.
Bola Sokumbi:
I've always been a handbag junkie. It's just something about leather. Like the smell of fine leather that just ... I don't know.
Bobbi Rebell:
You're listening to Financial Grownup with me, certified financial planner, Bobbi 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:
Hey, friends. This is one of those, "She did not do that," episodes. My guest was a champ at saving money on a very low income, but once she had that money, things took in unexpected turn and then there was yet another unexpected twist to the story. Bola Sokumbi is a certified financial education instructor and the force behind the very popular, Clever Girl Finance, a website and podcast that empowers and educates women to make the best financial decisions for them. Here is Bola Sokumbi.
Bobbi Rebell:
Bola Sokumbi, you're a financial grownup. Welcome to the podcast.
Bola Sokumbi:
Thank you for having me. I'm excited to be here.
Bobbi Rebell:
I am such a fan of yours. First of all, in addition to being a money expert, you are the force behind Clever Girl Finance, which is a website and a podcast. It started after you. I don't even know how you did this. You saved $100,000 in three and a half years on a salary of, I want to say, about $50,000?
Bola Sokumbi:
Yeah. I was making $54,000 before taxes.
Bobbi Rebell:
Wow. Give us just the high level. How you did that.
Bola Sokumbi:
I basically got lean and mean with, probably, my finances. I contributed to my retirement fund from my employer because I knew they were offering a match and that was a way for me to get some free money. I kept my expenses super low. I avoided my friends and stayed home. I wasn't going out to eat very much. I wasn't buying alcohol. I was the-
Bobbi Rebell:
Temporarily, right?
Bola Sokumbi:
Temporarily.
Bobbi Rebell:
Right.
Bola Sokumbi:
I was in a steady ramen noodles and coke diet. I focused on saving 40 to 50% of my paycheck and anything extra.
Bobbi Rebell:
Wow.
Bola Sokumbi:
I save my tax returns, my bonuses. I try to save as much as possible. I also started a side hustle. I started a wedding photography business, which really helped to increase the amount of money I was bringing in. That helped contribute to me being able to save that amount of money. Finally, I avoided credit cards as best I could. I, instead, used a charge card that require me to pay my balance in full every month. That kept me really mindful about my spending, but overall, it was really just setting the intention that I wanted to save and I wanted to challenge myself to save six figures. I put my mind to it. I gone to that focus and three and a half years later, I was able to save that $100,000.
Bobbi Rebell:
So smart. In full details, if anyone wants, go to Clever Girl Finance. I want to talk about your money story that you brought because Bola, this is like an incredible story given what you just said.
Bola Sokumbi:
Yeah.
Bobbi Rebell:
Here you are. You got $100,000. You're hustling with a side hustle. You're eating ramen noodles. You're doing everything intentionally, maxing out your retirement account to get the max. What do you do? You start buying $3,000 handbags. Tell us what, what.
Bola Sokumbi:
Holla.
Bobbi Rebell:
What?
Bola Sokumbi:
Let me break it down. Basically, I got to this point where I had saved a ton of money. I had a lot of money in the bank. Actually, at the end of the four years, I had about $150,000 saved. I was making more money. I had my business. I gone raising at my job. I was earning, now, well over six figures at this point. I was like "Wow, I have all this money. I maxed out my retirement savings. I'm still meeting my savings obligations. I just have to treat myself." I've always been a handbag junkie. It's just something about leather, like the smell of fine leather that just ... I don't know.
Bobbi Rebell:
I personally would've bought a pint of Haagen-Dazs if I wanted to treat myself but okay. $3,000 handbags.
Bola Sokumbi:
I went all the way, yes. I got my first designer handbag like "Oh my God, this is amazing. It's beautiful. I bought this in cash. I love it."
Bobbi Rebell:
What was it? Describe it.
Bola Sokumbi:
It was a Channel Jumbo in black caviar leather with gold hardware, classic, beautiful.
Bobbi Rebell:
Okay. I wouldn't know.
Bola Sokumbi:
I got the one. Should've been enough, but then I was like well, few months later, I have all the spare money. I'm still saving. I didn't know what to do. I want to invest, but I don't need to invest that much. I'm going to buy another designer handbag. I got to the point where I was buying several handbags for maybe three or four years. To me, it was fine because I was still saving. I was still meeting my obligation.
Bobbi Rebell:
How much do you think you spent in total, Bola, on the handbags?
Bola Sokumbi:
Oh my goodness. I don't know. If we were to have an Instagram competition on who could grab their handbags steady for the next 30 to 60 days, I would win, every time.
Bobbi Rebell:
Wait. Wait. You're going to have a different handbag every day for 30 to 60 days?
Bola Sokumbi:
Yeah, I could. Yes.
Bobbi Rebell:
Oh my gosh.
Bola Sokumbi:
I could've. I have a lot of handbags. I had them in different colors-
Bobbi Rebell:
Were they just sitting in the closet? Were you taking them to work? What was going on with the handbags?
Bola Sokumbi:
That's the sucky part. I maybe use like two or three. Well, I was exaggerated. I didn't have 60. Exaggerating. About a month. Let's say, a month. I didn't really use them. That was a disappointing factor. I'm one of those people that believe that if there's something that you like and it's something that you're going to use, go for it as long as you plan it out financial, but I wasn't using them. They did not make financial sense for me. I was using like one or two of them, and then maybe the others, I would look at or wear to a baby shower for 25 minutes and it goes right back into the closet. It did not make any financial sense. Fortunately, for me, at the time that I purchase them, for those of you who are into handbags, knew that there have been a flurry of price increases especially with the higher end luxury brands.
Bola Sokumbi:
At the time I bought the handbags, I bought them before the crazy price increases started. I got to a point where I was like "Okay, this doesn't make any sense." I will look in my closet and all I would see would be dollar bills stacked up. My husband is like "You need to let these go. You don't even use them. It doesn't make sense. You feel so guilty about having them because you're not using them." I took it upon myself to sell almost every one of them. I still have a few. The ones I use. It was really hard to sell them because I felt like I was selling my children. It's crazy. When I think about it, it's ridiculous, but I sold them. Luckily, for me, because of the price increases, I was able to sell them for a lot more than I purchase. That very first Channel handbag, the black jumbo I just described with caviar hardware, I paid $2,900 for it and I sold it for $5,500.
Bobbi Rebell:
Oh my goodness. Only you, Bola, would actually turn a cringeworthy shopping habit into a positive investment experience.
Bola Sokumbi:
However, Bobbi, to the point you asked me before we started recording was, I made money but when I think about it, I really didn't make that much money because one of the things that trigger me to start selling those handbags was Amazon stock. I realized that if I had spent all that money I spent on those handbags on Amazon Stock, I would've had times 100 of what I had spent on handbags. Not just doubling my money. I would've like times 100 it, right?
Bobbi Rebell:
If you had actually bought Amazon Stock, but truthfully, how much do you think ... do you think you spent $90,000 on handbags?
Bola Sokumbi:
Oh, I don't know. Over a three to four year period, I spent a lot of money.
Bobbi Rebell:
Okay. You bought 30 handbags at $3,000 each.
Bola Sokumbi:
Yeah. I had about 30. They were not all the same price.
Bobbi Rebell:
Okay.
Bola Sokumbi:
They were not all $3,000 handbags.
Bobbi Rebell:
What was the most expensive one?
Bola Sokumbi:
The Channel handbags I had. They were about in the $3,000, $3,500 range at that time. Now, they're not anymore. They're about 6 to $7,000 now.
Bobbi Rebell:
Wow.
Bola Sokumbi:
I don't own any more handbags by the way.
Bobbi Rebell:
What is the lesson from this beyond the fact that there was a time in life when investing in handbag was actually an appreciable asset? Still, they probably know. I don't know the market, but anyway, beyond the fact that it actually turned on to be a good investment.
Bola Sokumbi:
I wouldn't even describe as an appreciable handbag because for me, it was just purely for the fact that I was not using them. No one is going to pay you top dollar for a handbag that has been worn and beat up. If you're buying something, I believe that you should be using it. Lesson for this is cost per wear. You can have 100 Channel handbags if you want to have them and if you can afford them and you're paying for them in cash and it's not taking off your financial goals, but what is your cost per wear. How often are you using them? Are you getting your money's worth? If you buy a handbag for $3,000 and you wear it once, then that one time you wore it cost you $3,000 and that makes no sense. If you buy this handbag and you wear it 3,000 times over four years, then that handbag cost you $1 or maybe it comes down to cents and pennies and that starts to make more sense because as opposed to buying $25 handbags over that three-year period and use that one handbag over that time and you get your cost per wear.
Bola Sokumbi:
To me, cost per wear is really important. That's how I plan out my wardrobe. I still buy fancy things, but I have to be using them. I have to get my cost per wear down to pennies for it to make sense. I know when I see something if I'm going to use it or not. Understand your cost per wear. People may think, "Oh, buying handbags is crazy," but people spend their money on different things. For me, it was the handbag thing. Some people spend their money on electronics, on cars, on things that they don't necessarily use like having a second car in your garage that you drive on Saturday is not good to drive per wear.
Bobbi Rebell:
The handbags make you feel good.
Bola Sokumbi:
Yeah. I would pick a handbag over a lot of things. That was me. That was a lesson I learned. I put the money right back into my investment accounts. I was better for it.
Bobbi Rebell:
Let's stick with the handbag thing. What is your money tip, your everyday money tip for everyone?
Bola Sokumbi:
I would say that if you are a handbag girl like me, no shay, no judgment, find ways to get the handbags that you like at a cheaper cost or without putting out so much money. For instance, Bobbi, you and I talked about Rent the Runway. You really like that. If you want to actually own them, you can think about getting them preowned from sties like Fashion File or Vestiaire Collective. There's a bunch of different ones that are reputable that sell authentic products or even local consignment stores in New York. There's a ton of them. Or buying them off of friends who are trying to let go of their handbags or trying to recycle their wardrobe. Those are great ways that you can get luxury at a lower cost. You can also wait until some of these handbags go into the sale and purchase them that way.
Bobbi Rebell:
Right. Because a lot of them are really classic.
Bola Sokumbi:
Yes. It's all about buying something that you know you're going to use for a long time. I tend to avoid any trend pieces because I don't want to be out of fashion next year after spending all this money on it. I buy bags that I can carry forever. That's what I do. Every purchase I make right now, I carry that bag to shreds, basically.
Bobbi Rebell:
Definitely. Get that cost per wear down. Where can people find you and learn more about Clever Girl Finance?
Bola Sokumbi:
Yeah. You can find me on my website at clevergirlfinance.com, on Instagram at Clever Girl Finance, on Facebook, Clever Girl Finance. I also have a podcast called, Clever Girls Know. You can search for it on iTunes, Stitcher, Sound Cloud. You'll find it there as well.
Bobbi Rebell:
I think everyone should definitely check all of that out. I am a big fan. Thank you so much, Bola.
Bola Sokumbi:
Thank you for having me, Bobbi.
Bobbi Rebell:
Hey, friends. Except for the fact that she was ironically able to sell the handbags at a profit, this whole thing reminds me of what happens when people inherit a ton of money or they win the lottery and then they just don't know what to do, so they go shopping. Financial Grownup tip number one, Bola was great at accumulating money but she was selling herself short when it came to building wealth. She was meeting her goals in terms of saving and investing and all that, but that doesn't mean she couldn't move the goal post given the resource that she had and make even more ambitious goals. Not a problem to buy a bag that you can afford, but she wasn't even using most of them. Bola is very specific that, well, they ironically went up in value if she had invested the money. In her case, she talks about Amazon Stock, she would've made a lot more money. Of course, you could lose money in the stock market. There's no guarantee of that. It's just something to consider.
Bobbi Rebell:
Financial Grownup tip number two, if you do buy luxury goods and you aren't using them, it is easier than ever to sell them, so many resources online. You may not make as big a profit as Bola did, you may lose money but you're still going to get some cash. I have sold some bags on the real wheel. I've been happy to have the cash even though it went for less than I paid. You can also buy slightly used bags there at a discount if you want them. As I've said before, you can rent them at Rent the Runway or other similar websites. I will leave some links in the show notes for you guys. Given these resources, I would also urge you to stay away from the fakes. It undermines the economy and the business of the companies that produce the real thing. Don't buy fake bags. Also, it is illegal.
Bobbi Rebell:
We want you to be a financial grownup. Send us an email to info@financialgrownup.com if you want to be considered for one of our monthly listener episodes. Just tell us what the money story is that you want to share and your everyday money tip. If you have not already, please rate and review the podcast on iTunes, Apple Podcast. That helps others discover us and grow the community. It is truly appreciated. Make sure to subscribe so you don't miss any upcoming episodes and follow me at Bobbi Rebell on Twitter @ bobbirebell1 on Instagram and on Facebook, I am at Bobbi Rebell. Bola is the best. I am so appreciative that she was brave enough to get really candid. She definitely got 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.
As a young woman in New York City, Randi Zuckerberg, author of “Pick Three: You Can Have It All (Just Not Every Day)" was struggling financially. Her mom, knowing the financial strain, came armed with… luxury goods. Think Jimmy Choo shoes. But as Randi explains, the designer duds were part of a very intentional lesson, that put Randi right on track to being a financial grownup.
In Randi’s money story you will learn:
-How Randi struggled to make ends meet on her first salary of just $28,000
-Why Randi’s mom would take her out and buy her luxury goods, but not help her with her every day expenses
-What Randi did when she literally could not afford to buy a metrocard for the NYC bus and subway
In Randi’s money lesson you will learn:
-How her mother’s strategy helped Randi find her path to financial independence
-If Randi still has all those shoes!
-The one thing Randi would change when she teachers her own children about money
In Randi’s money tip you will learn:
-Why she is paying attention to Bitcoin and Cryptocurrency
-How you can learn more about Bitcoin and Cryptocurrency
In My Take you will learn:
-How to manage social media envy
-The specific thing you can do with your own social media content to improve your experience and that of your friends
-Why and how you can learn more about bitcoin and cryptocurrency
Episode Links:
Learn more about Randi on her website Zuckerbergmedia.com
Get Randi’s book! Pick Three: You Can Have it All, Just Not Every Day
Learn about Cryptocurrency from Randi in this tutorial
Follow Randi!
Facebook Randi Zuckerberg
Instagram @RandiZuckerberg
Twitter @RandiZuckerberg
Also mentioned
Statement Event
Empower App
Transcription
Bobbi Rebell:
Support for Financial Grownup with Bobbi Rebell and the following message come from TransferWise, the cheaper way to send money internationally. TransferWise takes a machete to the hefty fees that come with sending money abroad. Test it out for free at transferwise.com/podcast or download the app.
Randi Zuckerber:
You know, I would turn to her and I would be like, "Mom, I love these Jimmy Choo shoes but I really could use help with my rent, or I could use help with food and things like that," and she was like, "Nope."
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. 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:
Hey everyone, my friend Randi Zuckerberg is known for a lot of things. It would take an entire podcast to name them all, so some highlights. She is a bestselling author of Dot Complicated, a Broadway actress and singer with a head star in Rock of Ages. She is the founder and CEO of Zuckerberg Media. Randi is also the force behind Sue's Tech Kitchen, she's got her weekly Sirius XM show, and oh, by the way, she created this little thing called Facebook Live. But her most recent project is Pick Three, which is a book about priorities, and with all that Randi has going on you bet she has had to get a handle on how to focus on what matters most, even if that changes every day. Here is Randi Zuckerberg.
Bobbi Rebell:
Randi Zuckerberg, you are a financial grownup, welcome to the podcast.
Randi Zuckerber:
Thanks so much Bobbi, it's great to be here.
Bobbi Rebell:
Major congratulations, another, in this case soon-to-be bestseller, your new book Pick Three: You Can Have It All (Just Not Every Day). We're going to talk more about that later on, but just high level, this is something you've had in your head basically for your whole adult life. Tell us briefly about the concept, and then we'll do more about the book later.
Randi Zuckerber:
Sure. Well, we're all juggling so many things. I know you and I, we both, we're entrepreneurs, we're moms, I feel like there's so much pressure on all of us to be perfect at everything we do. Especially you log onto Instagram and everyone's lives look so perfect and so amazing, and then it's easy to sit there and think, "Gosh, how come I don't have my act together? Why don't I have it all and have that perfect balance?" And what I've really started to feel over the years is that it's just, it's time for us to stop carrying so much guilt around. Nobody has it all. Nobody has perfect balance, no matter what their lives might look like on Instagram. And so when I thought about the times in my life I felt most proud of my accomplishments, it was not when I was balanced. It was when I gave myself permission to just prioritize and go for it in a few areas of my life, so that's what I'm writing about. It's called Pick Three, and it's work, sleep, family, friends, fitness - pick three.
Bobbi Rebell:
Awesome. And by the way, just to show how much I love this book and how obsessed I am, I actually made notes in the book already. You can learn more about Randy's philosophy on social media and how our lives always look better online, page 211. That was one of the things that I flagged. So that's how good her book is, I have a book full of little post-it notes. Okay, we're going to go back to the book, but I want to talk about your money story, because it's something that I actually related to, because something very similar happened when I was a young adult, in my case also in New York City. Tell us your money story, because it has to do with the way that your mother taught you to earn your own money, but yet still was supporting you in different ways.
Randi Zuckerber:
Totally. And it's funny, because I didn't really learn the lesson of this story until many years later. In the moment, it felt kind of random, and now I'm so thankful to my mom for that. So in the book I go a bit deeper into the story, but when I was right out of college I landed a job at an ad agency. I was making I think $28,000.00 a year, which to live in Manhattan, that just doesn't work. I was in this apartment that was probably supposed to be a one-bedroom but there were four of us that were living in it, and my part of the apartment was a fake wall partitioning off a corner of the living room.
Bobbi Rebell:
Probably illegal, too.
Randi Zuckerber:
Yeah.
Bobbi Rebell:
We know all about those.
Randi Zuckerber:
Yes, I'm sure it was illegal, and it was taking up an entire paycheck every month. And my mom lived about an hour outside of the city. We've always been such close friends, my mom and I, and she would come into the city to take me out for dinner because I definitely couldn't afford to go to a restaurant on my own. And then she would be like, "Let me help you out," and she would take me shopping, and she would buy me fancy shoes. Like Jimmy Choo. Like the fancy-
Bobbi Rebell:
Where were you going in the Jimmy Choos?
Randi Zuckerber:
I know. And I would be like, "Mom, that's so nice of you to buy me Jimmy Choo shoes, but can you help me pay my rent? That's where I really need help."
Bobbi Rebell:
At one point you couldn't buy a Metro Card, right?
Randi Zuckerber:
That's right. There was one month that I had to walk everywhere because I didn't budget well, and I couldn't afford the $120.00 or whatever it was at that time for a monthly Metro Card. And so I walked everywhere in Manhattan for a month. That's kind of the state of how I was living.
Bobbi Rebell:
Were you walking everywhere in the Jimmy Choos, though?
Randi Zuckerber:
I know, right? Luckily I had fancy shoes to walk in, so you know, good for that. But I would turn to her and I'd be like, "Mom, I love these Jimmy Choo shoes but I really could use help with my rent, or I could use help with food and things like that," and she was like, "Nope." She was like, "You know, it's really important that you make it on your own, you're a professional woman. It's really important that you cover the basics of your life on your own." She's like, "But I'm here to show you what to aspire to."
Bobbi Rebell:
Wow.
Randi Zuckerber:
"The reason that you're working hard and to show you that it's okay when you do make that money later in life to treat yourself, and just spend a little bit of that money on yourself."
Bobbi Rebell:
Nice. So for our listeners, what is the lesson from that? What is the takeaway? How can they apply it to their own lives?
Randi Zuckerber:
For me at the time, it definitely felt a little frustrating. It was frustrating that I could barely afford a Metro Card but I had this closet full of beautiful designer shoes. But at the end, when I do look back now on those periods of my life, I'm proud of myself for supporting myself. Even though it was hard. Even though I was barely making any money at all, I look back on those years with pride that I took care of all my own living expenses, that I made it on my own. And I actually still have those Jimmy Choo shoes in my closet as a reminder, the first big girl items that I really ever owned, and they always serve as a reminder to me that the reason that we work so hard in life is not just to accumulate wealth or status. It's so we can treat ourselves and we can treat the people we love, and we can really enjoy our lives and our money.
Bobbi Rebell:
And so would you do the same lesson with your own children, knowing what you know now?
Randi Zuckerber:
Maybe I would keep the receipt in the box in case they needed to return it to help pay their rent. My mom used to take-
Bobbi Rebell:
So wait, did you ever try to return the shoes?
Randi Zuckerber:
No, she purposely would take the receipts home with her so I couldn't, and in those days there wasn't eBay to sell them on or things like that. But honestly, if my kids were motivated and ambitious and driven enough to think of ways to resell them, then that's great, that's teaching them an entrepreneurial lesson.
Bobbi Rebell:
All right, let's talk about your money tip, because it's something we haven't talked about here on Financial Grownup, in part because I don't know a lot about it, and that's kind of your point. What is your money tip?
Randi Zuckerber:
So my money tip is to make sure that you're not just focusing all of your effort on learning about the systems that are already in place. Make sure that you're spending some time thinking about the new financial trends that are going to be coming out in the next few years. Specifically I think the biggest trend that's going to hit this industry is cryptocurrency and blockchain. I know I've personally spent a lot of time over the past two years learning about this space and educating myself, and I think it's so important for women especially to learn about this space, because right now only about 2% of cryptocurrency is owned and traded by women. And ladies, what's the use of catching up with our financial knowledge over here if we're then just going to be completely left behind in ten years on the next new thing that's making all of these new millionaires? I don't know about you guys, I don't want to be left out of the next thing that's making all these millionaires, so I think it's really important, even if you're not investing in this space, to at least understand it enough to be able to participate.
Bobbi Rebell:
Where is the best place people can learn more about it?
Randi Zuckerber:
I love listening to a lot of podcasts. I actually am so passionate about educating women that I literally just sat in my closet with a microphone this week and recorded a two-hour introduction to Bitcoin and Blockchain that I'm about to release. So I'll definitely give you more information on that, and it's specifically designed to teach women the basics of crypto.
Bobbi Rebell:
Perfect. So now we have where we can go, I will make sure to put the link into the show notes for everyone. So that's your gift to our listeners, thank you so much, Randi. This is great. Okay, so now we get back to what I really want to talk about. So I've got this book here with all of these ... I almost ran out of post-it notes, because I have so many post-it notes in the book, and we have to keep it short because this is a short podcast. But it's basically about being lopsided and being okay with that. And that's almost how you got into college, was just saying, "I'm not going to apologize for not being balanced."
Randi Zuckerber:
Totally, well I think, and I'm sure, Bobbi, when you think about the things in your life you're most proud of, the things you hope we're alive to tell our great-grandkids about, each of us have three or four things on that list that we're super proud of. It's probably not times in your life that you were super well-balanced. For me, that list right now is completing a marathon, singing on Broadway, being part of Facebook, and having my two children, and not one of those four things happened when I had balance in my life.
Bobbi Rebell:
Wow.
Randi Zuckerber:
All of those things happened when I really allowed myself to just go for it and be super lopsided and prioritize a few areas in my life at one time. And so I want to give especially women out there permission to pick three. Pick a few things in your life that you want to prioritize, because there will be other times and other phases to pick other things and round out your life. But just give yourself the permission to go for it and be excellent in whatever you want to do without the guilt.
Bobbi Rebell:
I love it. One of my favorite areas was when you talk about quick fixes if you're feeling exhausted, and I say that because this book is also very practical, because people feel overwhelmed and there are very specific solutions in the book. Even at the end there's worksheets so that people can make it applicable to their own lives and really make it specific and actionable.
Randi Zuckerber:
Thank you, well you know, I live in the real world. In an ideal world we'd all be getting a lot of sleep every night, and going to the gym, and spending time with our children every day, and doing all of these things, but at the end of the day we all live in the real world, and I know that there's some days that you just cannot pick sleep. Your kids are sick, you have a deadline at work, there's something going on, you have an early plane to catch, so I tried to also, while encouraging people to pick different areas, also tried to give some hacks to actually get around it and still function in your life if you can't pick that one area.
Bobbi Rebell:
So it's three, and the five things that you're picking three from are sleep, work, friends, family and fitness, and the great thing about the book is you break down each one.
Randi Zuckerber:
Yes. I try to break it down, and I also really tried to interview a mixture of people across all ages and walks of life. Because if you're in the position that you can pick which areas of your life you want to prioritize then you're in a real state of privilege, that everything in your life is going so well that you can choose. There are a lot of people out there who have life circumstances where they just can't choose what they want to focus on. Life picks for them. And so I wanted to make sure that all different people are represented.
Bobbi Rebell:
Randi, where can people find you and learn more about everything you're up to, including Pick Three?
Randi Zuckerber:
Thank you so much, I have been known to be available on a few social media channels.
Bobbi Rebell:
A few.
Randi Zuckerber:
Yup, [inaudible 00:13:14] Facebook, and one's owned by Facebook. But yes, you can find me on Facebook, on Instagram and Twitter, I'm @randizuckerberg, and then Pick Three is available on Amazon or any of your favorite bookstores. I love indie bookstores and promoting them, so go pick it up at a cool indie bookstore near you.
Bobbi Rebell:
Congratulations on all, and keep in touch.
Randi Zuckerber:
Thank you so much Bobbi, this is awesome, love your podcast.
Bobbi Rebell:
Hey friends, I think we all have a good sense of how Randi stays so grounded despite literally being on the go all the time. I have been personal witness to that. Prioritize and keep perspective.
Bobbi Rebell:
Financial Grownup tip number one: You may have noticed that one area of Randi's book really hit me. All of our lives look like so much fun online. So many of us, myself included, have felt a little wistful when we see photos and videos of friends who always seem to be vacationing while in the perfect outfit, and going to a fantastic concert where of course they get to see Beyonce and hang out with her and Jay-Z backstage. Just kidding, but only about part of that. But we are all actually usually happy that they're having fun, it's not necessarily competitive, but still. Remember, it is a curated version of their life. Real life can't be edited, and filters don't work outside of the digital world. Randi's advice that really resonates with me? Flip that back to what you can control, and be a little more intentional about what you post, about the image that you put out there to other people. Don't just post your own perfect moments, try to be more authentic with your social media, and maybe we'll all get the hint and be a little more real.
Bobbi Rebell:
Financial Grownup tip number two: Let's all go out and learn about Bitcoin. I said learn, not invest, though you can if it's right for you. The truth is, as Randi said, we may be missing a big opportunity. I always think of famous investors like Warren Buffett who say they don't invest in anything they don't understand. So let's understand and make a decision from a point of understanding and information. I was recently at a retreat called Statement Event, it was women thought leaders, a very small group of us, about 17. We had dinner with a CEO of a company called Empower, and he asked this group of all women how many of us talked about Bitcoin as an investment option for our followers or listeners. The room got silent. He asked, had we really investigated? Nope. I'm going to check out Randi's tutorial, and I will leave the link for you guys as well. Let me know what you think. Make sure to pick up your copy of her new book, Pick Three: You Can Have It All (Just Not Every Day) and write a review for Randi. Authors love reviews.
Bobbi Rebell:
Thank you all for your support. The show has been growing, so please keep sharing on social media, writing reviews on iTunes aka Apple Podcast, and subscribing if you have not already so you don't miss any upcoming episodes.
Bobbi Rebell:
Do you have a money story that you want to share? Maybe a great money tip? We are starting to have listeners as guests once a month, so to be considered email us at info@financialgrownup and just tell us what money story and money tip you would share if you are chosen.
Bobbi Rebell:
To learn more about the show, go to bobbirebell.com/financialgrownuppodcast. Follow me on Twitter @bobbirebell, Instagram @bobbirebell1, Facebook I am at Bobbi Rebell. Randi Zuckerberg really nailed it in this episode, helping us all get 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.
Whitney Johnson, author of "Disrupt Yourself” and her new book “Build an A Team” finds out from her financial planner that her overspending is impacting her ability to tithe 10 percent and support her church. She and her family plan a self-disruption, downsizing their life so they can deploy their money in a more intentional way.
In Whitney’s story you will learn
-How a phone call from Whitney’s financial planner got Whitney’s attention about her finances
-Why Whitney was not going to be able to reach her financial goals, despite a relatively high income
-The shifts that Whitney made in terms of her spending and savings habits
-How her ties to her church and her belief in God inspire her financial planning
-How she spends differently as an entrepreneur compared to her previous career working on Wall Street
-Her belief that money is meant to be a servant, not a master
-How she uses money to support her values
In Whitney’s lesson you will learn:
-Every tie you spend money you are voting on the kind of world you want
-The importance of modeling financial spending for your children
In Whitney’s money tip you will learn:
-Ways to teach kids about investing
-How to buy fractions of a share of stock
-Whitney recommends an app called Stockpile
-How Whitney looks to the theories of Peter Lynch and advocates buying what you know and use and value, and to couple your investing behavior with your consumer behavior.
In my take you will learn:
-How allowing your values to guide your financial life can be rewarding
-Why disrupting your life to better align it with your financial values is something people at any income level should consider
-How you can be pro-active in taking down barriers for your bosses, to create better odds of them giving a green light to your goals
-How I got my bosses to allow me to work a 4-day week for years, by removing barriers and creating solutions before I approached them.
Episode Links
Twitter - @johnsonwhitney
Facebook - facebook.com/johnsonwhitneyauthor
LinkedIn - https://www.linkedin.com/in/whitneyjohnson/
Get Whitney’s new book: Build an A Team: Play to Their Strengths and Lead Them Up the Learning Curve. Free chapter download available at https://whitneyjohnson.com/ateam
Stockpile
Transcription
Bobbi Rebell:
Support for Financial Grownup with Bobbi Rebell and the following message come from TransferWise, the cheaper way to send money internationally. TransferWise takes a machete to the hefty fees that come with sending money abroad. Test it out for free at transferwise.com/podcast, or download the app.
Whitney Johnson:
"I tithe, I pay 10% of our gross income to God, to our church," and he was just like, "Okay, you've got a problem here because this isn't going to happen in addition to some of your other financial goals that you have." That was a really important wake-up call for me.
Bobbi Rebell:
You're listening to Financial Grownup with me, certified financial planner Bobbi Rebell, author of How to Be a Financial Grownup, but 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:
Hey, friends. Well, despite the clip you heard at the top of this episode, today's podcast is not about religion, but it is about values, and leveraging your money and your financial resources to support what you and your family believe in. Whitney Johnson's new book is called Build an A-Team: Play to Their Strengths and Lead Them Up the Learning Curve. She is also the author of the bestseller Disrupt Yourself: Putting the Power of Disruptive Innovation to Work, and she hosts, you get the theme here, the Disrupt Yourself Podcast.
Bobbi Rebell:
In this case, the story that she's going to share, Whitney disrupted her entire family life, downsizing everything to get to her financial goals and to have the financial resources to support what she and her family value. She lives what she preaches. Here is Whitney Johnson. Whitney Johnson, you are a financial grownup. Welcome to the podcast.
Whitney Johnson:
Thank you for having me, Bobbi.
Bobbi Rebell:
First of all, I do want to congratulate you on your new book. It is Build an A-Team and we're going to talk more about that going forward, but just high level, what's it about?
Whitney Johnson:
Build an A-Team is about helping you as a manager build a team that can manage through change, that can be innovative and high performing, and the key is to let your people learn. When you allow them to learn, leap, and repeat, they are engaged and therefore happy, they love coming to work, they're more productive, and they love working for you, so you become a great place to work and a boss people love.
Bobbi Rebell:
That's great. For your money story, though, we're going talk about you and your team, which includes your husband and includes your financial planner, and an incident that happened when you got a call from your financial planner. You weren't achieving a goal that was really important to you. Tell us your money story.
Whitney Johnson:
Yeah. This happened about 15 years ago. I got a call from my financial planner and he said to me, "You are spending way too much money." It was really a wake-up call for me, because I was having the conversation with him of like, "I tithe, I pay 10% of our gross income to God, to our church," and he was just like, "Okay, you've got a problem here because this isn't going to happen in addition to some of your other financial goals that you have." That was a really important wake-up call for me, that I really needed to think about, "Okay, it's really great that you can earn lots of money, but you have to also basically manage your money and not just think about what you're earning. You have to also think about what you're spending and spend less than you're actually earning." That was a really important lesson for me and really started to shift how I was thinking about money, not only what I was earning, but also what I was saving.
Bobbi Rebell:
What was important to you was that 10%. I want to pick up on that, because in your heart one of the things that you really prioritize is giving to causes that you believe in, to religious causes, to God, as you say. That was really your priority and you weren't able to accomplish that, or you would not have been able to continue to accomplish that if you didn't change your ways.
Whitney Johnson:
Absolutely. It's such a great point because when I was thinking about the fact that I wasn't managing my money, a lot of times it was exactly to causes or people or things that I cared about, so it's not like I was being profligate, and yet if I didn't manage my money, those things that were deeply important to me, education for my children, et cetera, were not going to be a possibility, and that was a very important wake-up call for me.
Bobbi Rebell:
Were there things that you could pull out that you were able to change? What did you do to pivot from there?
Whitney Johnson:
I had become an entrepreneur at this point and I was still spending like I wasn't an entrepreneur. I was still working on Wall Street, and so one of the things that we did is we made some really tough decisions. Over the next year, we decided to downsize and to sell our house, and to really pare back on how we were spending our money in that interim so that we could still buy the things that mattered to us, but then also undertake these entrepreneurial ventures that were also important to us.
Bobbi Rebell:
And maintain a culture and a family life and setting an example, for the rest of your family, of giving.
Whitney Johnson:
Absolutely, 100%, because that is a high, high priority for me and for my husband and for our entire family, is to be able to give to others.
Bobbi Rebell:
So what is the lesson for our listeners from that?
Whitney Johnson:
Most of us have a pretty ... not most, many, probably including myself, have a fairly froth relationship with money. We're like, "Is it good? Is it bad?" And it's not either, and so a couple of lessons that I've learned is that money is meant to be a servant, not a master, and that I, and this is a gradual lesson that I've been learning throughout my life, is to remember that that's the case. And that also the more money we're able to not only earn, but the more we extend our ability to do good beyond our physical presence, and so those are becoming mantras for me, but really guiding principles in terms of how I think about money saving tactically day-to-day, and spending, I should say, as well.
Bobbi Rebell:
And the importance of not only thinking about growing your business and buying things, but also the values that money can help you support.
Whitney Johnson:
Absolutely. I mean, one of the things, there was a quote that I remember reading probably about seven or eight years ago now, which is really, again, a bit of a watchword for me. It was Anna Lappé and she said that every time you spend money, you're voting on the kind of world that you want. That has been a really powerful thing for me. One, a dollar, $10, what kind of world am I saying I want with this money that I've just spent or allocated to whatever I allocated it to? That's just a really important thing to me and something that we're trying to instill in our children as well.
Bobbi Rebell:
You also have a wonderful money tip, and this is great especially when you talk about children. It's always hard to teach children to invest because sometimes stocks are really expensive and you can't always buy. I can think of Berkshire Hathaway, obviously as the most extreme example perhaps, but a lot of stocks, they don't split and they're very expensive to buy individual stocks. They just start buying 100 shares of a stock, so talk to me about your money tip, because it has to do with investing. It's something that is often applicable when children want to start learning about investing.
Whitney Johnson:
Yeah. One of the really wonderful boons of the last couple of years is you can buy fractional shares. You don't have to buy 100 shares. You don't even have to buy 10 shares. You can buy a half a share. There's something called Stockpile, stockpile.com, that you can go on there and say, "Okay, I want to spend $300," and so you can spend $300 on Apple or $300 on Tesla. Or just to other day for my son, for his birthday, he wanted to buy Spotify, and so I was like, "Okay, $300. We'll buy some Spotify stock." I don't actually know how much it costs, but you can buy a half a share, a quarter of a share, a tenth of a share, but it's just based on how much money you want to spend.
Whitney Johnson:
So it's a great way to start investing in the stock market and really building on an idea that Peter Lynch pioneered 20, 30 years ago now, which is to buy what it is you know and use and value, and couple your investing behavior with your consumer behavior, and fractional shares, and Stockpile specifically, allows you to do that.
Bobbi Rebell:
Wonderful. All right. Let's talk about your new book because it is coming out pretty much now. It's called Build an A-Team. It's a follow up to Disrupt Yourself, which was a huge, huge hit and relatable to so many people, especially myself, having disrupted myself in the last few years professionally. Tell me more about Build an A-Team.
Whitney Johnson:
Well, Build an A-Team came about because people had read Disrupt Yourself and said, "Okay. I get it. I got it. I'm willing to disrupt myself, but what about the people around me? How do I create an ecosystem that makes that possible?" So in Build an A-Team I make it possible for you to think about, "Okay, how do I create a workplace or an environment, a team where personal disruption is possible?" Then I flip it on its head and say, "Okay, so to you, the manager, you don't want just your people to be disputing themselves willy-nilly. What's in it for you?"
Whitney Johnson:
So I make the case that every single person is on a learning curve, including you, the manager, and you build that team that can innovate, that can manage through change by managing your team as a collection of S curves or learning curves, and optimize by having about 70% of your people in the middle at any given time, 15% at the low end, and 15% of your people at the high end. And when they get to the high of their learning curve, you allow them to disrupt themselves because by doing that, they start over that cycle of learn, leap, and repeat, and whenever people are learning, they're able to be innovative. When they're learning, they're innovative, and so you as a company can stay competitive, and because they're so happy at work, they love working for you as a boss, and so you become a talent magnet.
Bobbi Rebell:
Let me just ask you, if you are the employee, because a lot of our listeners are younger and starting out in their careers, if you are on the curve and you recognize that you're at the top of your curve, do you approach your manager and say, "I basically want a different job within the organization"? I mean, what do you do?
Whitney Johnson:
Obviously there are going to be risks in doing that. You've got to really suss out your boss. I think one of the ways that you can do that is, "Does it make sense for me to have this conversation with my boss?" What's that boss' track record? Do they have a history of people who have worked for them in the past, it's been possible for them to move on to other opportunities for which the boss advocated, that they've sponsored them into those opportunities? Then you can be pretty comfortable that having that conversation with them is a safe thing to do. You also, before you have that conversation, want to make sure that in fact you are ready to ... sometimes we overestimate our abilities. We all do it. We think we really want it, and so therefore it's time for us to have it.
Whitney Johnson:
So in having that conversation, what I would encourage you to do is go to your boss and say, "I've been in this role for about three years. It feels like I'm starting to peak and I've really hit my stride, and it's time for me to try something new, so here's what I would propose and here's the business case for why it makes sense for me to do it, because it's not just about me. It's going to help our organization be more innovative, and in the process I've identified this person over here that I think can really step into this role nicely, so you will not be left in the lurch. I will help train that successor so that they're able to continue to grow and develop. And at the same time I'm able to grow and develop as well as help our organization and our team be more innovative, and so that would be my suggestion to you."
Bobbi Rebell:
Anticipate what's going to go wrong and make sure you have a solution for every possible iteration. All right. Whitney Johnson, where can people find you?
Whitney Johnson:
You can find me at whitneyjohnson.com. If you want to email me, it's wj@whitneyjohnson.com. I would love to hear from you.
Bobbi Rebell:
And you have, by the way, a million, I heard a million LinkedIn followers.
Whitney Johnson:
I do, 1.2 million, actually, but I'm not counting.
Bobbi Rebell:
Oh my gosh. You are our hero, Whitney Johnson. I will leave all of your social media links in the show notes, but just so we have them here, Twitter, Instagram, all that stuff?
Whitney Johnson:
Yeah. Johnson Whitney, actually. It's Johnson Whitney.
Bobbi Rebell:
Okay. Good to know. Exactly. That's why we ask. All right. You're wonderful. Thank you so much, and congratulations on the new book.
Whitney Johnson:
Thank you, Bobbi, for having me.
Bobbi Rebell:
Hey, friends. Don't you feel so motivated by Whitney, like anything is possible if you know think it through and get really intentional?
Bobbi Rebell:
Financial grownup tip number one, let your values be a guide to how you want to not just spend your money, but spend your life. Whitney literally disrupted her entire life, her family downsized, and I don't have Whitney's personal financial info, but I'm guessing she does pretty well, so this is not really about income level. It's about allocation of your resources, whatever they are, to support the way you want to live your life and the role model you want to be for your family. In Whitney's case, it was about tithing to her church and other things that her family valued, like education and financial security and financial freedom.
Bobbi Rebell:
Financial grownup tip number two, get intentional about your career goals. You probably think you are, but be honest. Are you proactively doing something to remove barriers? Put yourself in your bosses' position and think about what they need to get you what you want. If you own a business, your clients are basically your bosses. Yeah, sorry, but kind of. Right? So come with solutions.
Bobbi Rebell:
When I wanted to work, for example, four days a week after having my son, I presented my bosses with the solution. My colleague, who was, fun fact, Manoush Zomorodi that many of you may know as the host of the Note to Self podcast, was also having her son. We gave birth, in fact, two days apart in the same hospital. Manoush agreed to be my Friday fill in. We presented a complete solution, and it was tough for the bosses to turn down something that was already good to go, especially with someone as wonderful as Manoush.
Bobbi Rebell:
Now Whitney is giving us the first chapter of her new book Build an A-Team: Play to Their Strengths and Lead Them Up the Learning Curve for free to download. Just go to whitneyjohnson.com/ateam and you can get that download, so start there for free and then go pick up a copy of the whole book ASAP. Build an A-Team has tons of specific examples in it that will give you a lot of aha moments of how bosses think and need to think, and it is well worth the time you will invest in reading it.
Bobbi Rebell:
Just a reminder, we are excited to start our once a month listener episode, so if you want to be a guest on Financial Grownup, email us with your money story and your money tip to info@financialgrownup.com. Make sure you are on our mailing list. Go to our website, bobbirebell.com/financialgrownuppodcast. You'll get a pop up and you can sign up. Be in touch on Twitter, @bobbirebell, and on Instagram, at bobbirebell1. Whitney Johnson gave us so much to think about. Here is to us all getting 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.
When Melanie Lockert and her business partner Emma Pattee launched the Lola Retreat in 2017, profits were at the bottom of their list. So low they did not even try to get sponsors until just a few weeks before the event. What happened then was shocking. Plus a money tip for the luxury lover.
In Melanie’s money story you will learn:
-The behind-the-scenes decisions that went into the launch of the Lola Retreat
-Why the creators of Lola prioritized content over profit
-How the last-minute decision to reach out for sponsorship took Lola from a money-losing venture into a profitable ongoing business
-Why they chose not to outsource as they were building the Lola Retreat
-The technique Melanie Lockert and her partner Emma Pattee used to attract sponsors to her first-ever Lola Retreat
In Melanie’s money lesson you will learn:
-The importance of actually asking for what you want
-How to leverage your reputation to build a new business
-How positive thinking even in tough times helped Melanie achieve her goals.
-Melanie’s new approach to negotiation
In Melanie’s money tip you will learn:
-Where to get luxury beauty services at a fraction of the cost
In my take you will learn:
-Why you should aim high when asking for money
-How smaller,niche events can offer great marketing value for even the largest companies
-Ways to save money on services by going to students in places like cooking schools and design schools, in addition to the beauty schools that Melanie discussed
Follow Melanie!
Twitter @deardebtblog @LolaRetreat
Instagram @deardebt @lolaretreat
Facebook Melanie Lockert
Melanie’s Dear Debt blog
Get Melanie’s book Dear Debt
Learn more about lolaretreat.com
Fidelity.com
FinancialGym.com
Kristin Wong is at TheWildWong.com
Erin Lowry/Broke Millennial is at https://brokemillennial.com/
Transcription
Melanie Lockert:
Something completely shocking happened. We actually did get several thousand dollars of sponsorships within three weeks of the event, and we even got our last sponsor three days before the event. It was just a crazy experience for me.
Bobbi Rebell:
You're listening to Financial Grown Up, with me, certified financial planner, Bobbi Rebell, author of How to Be a Financial Grown Up. You know what? Being a grown up 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 grown up, one lesson, and then my take on how you can make it your own. We got this.
Bobbi Rebell:
Hey, friends. You guys know that song, "Whatever Lola wants, Lola gets." Well, the reality is sometimes Lola has to actually ask for it. That is the irony of the story you are about to hear from Melanie Lockert. She is well-known from her blog and her book, Dear Debt, where she chronicled her feelings about the $81,000 of debt that she was saddled with. Melanie is also the co-founder of the Lola Retreat, and yes, the name was inspired by that song, because it is meant to be about women getting whatever they want. While the event is meant to teach attendees how to empower themselves financially, when planning her first conference, Melanie had to learn some lessons of her own in that regard. Here is Melanie Lockert.
Bobbi Rebell:
Melanie Lockert, you are a financial grown up. Welcome to the podcast.
Melanie Lockert:
Thank you so much for having me. I'm excited to be here.
Bobbi Rebell:
People know you from your Dear Debt blog, your Dear Debt book, and your newest project, which we will talk about more at the end of the podcast. Just briefly, what is Lola Retreat, because I know it's happening very soon.
Melanie Lockert:
Yeah. Lola Retreat is a women and money event, and it is a weekend full of education and workshop and panels to empower women to rock their finances.
Bobbi Rebell:
I wanted you to explain what it is because the money story that you're going to talk about has to do with it, and it has to do with year one, which was just last year, and how you've monetized the event and what you did right and what you maybe would do differently and are doing differently this time.
Melanie Lockert:
Yeah, totally. I had such a great money lesson last year. With the retreat, there was so much going on in regards to programming and attendees, and I was so focused on getting the content really wonderful and making sure that we got the venue right, the speakers and everything that sponsors were not really on my mind. I really just wanted to make sure that it was the best even possible, right?
Bobbi Rebell:
Well, and when you say sponsors, you were just funding it purely on the admission that you were charging people?
Melanie Lockert:
Our ticket sales were really getting invested back into the event, so we didn't really know if we were going to make money on this event or not. Three weeks before the event, Emma, my colleague, talked to me, and she was like, "Melanie, we're going to breakeven right now, so if you want to make some money on this event, either we're going to have to cut back or be happy with breaking even." I was like, "I don't like either of those answers. I don't want to cut back because this is our first event, and it needs to be super amazing, and I also want to make some money, even if it's just one dollar." I really needed just that symbolic metaphor that I made a profit, so I was like, "How am I going to do this?" I was like, "I'm going to approach sponsors. People sponsor events all the time. I don't know what I'm doing. I don't know how to approach sponsors, I don't know anything about it, but I'm going to go find some money." In the back of my mind, I thought, "Oh my goodness. It's three weeks before the event. I haven't contacted anybody about sponsorship money. It's too late."
Bobbi Rebell:
Had you guys discussed the concept of sponsors at all? Had it ever occurred to you before this?
Melanie Lockert:
We kind of did, but it was really at the bottom of our list. We really were just focused on making sure the programming was amazing and making sure all of the programmatic details were really in place.
Bobbi Rebell:
So just to be clear, it's not that you were trying and sponsors were rejecting, you just literally had not tried. Did you think about outsourcing it to somebody else, or it just slipped through the cracks?
Melanie Lockert:
It slipped through the cracks. It was something that we didn't really focus on at all. We didn't contact anyone about it until three weeks, and in the back of my mind, I was like, "Oh my goodness. It's three weeks before the event. There's no way anybody's going to give us any money at this point it's too late." But I wanted to do it anyways just so I could cross it off my list and say that I did it, and be like, "Okay, well, I tried to get money. It didn't happen, whatever," but something completely shocking happened. We actually did get several thousand dollars of sponsorships within three weeks of the event, and we even got our last sponsor three days before the event, and so it was just a crazy experience for me.
Bobbi Rebell:
Can you talk a little bit about how much money you got in sponsorships and maybe speculate what you think you may have left on the table had you tried earlier?
Melanie Lockert:
We did get several thousand dollars worth of sponsorships. I don't want to get into specifics, but I definitely know we did leave some money on the table.
Bobbi Rebell:
You made a profit of more than a dollar first of all, to be clear.
Melanie Lockert:
Yes, we did.
Bobbi Rebell:
That's excellent.
Melanie Lockert:
We did.
Bobbi Rebell:
You think you left money on the table?
Melanie Lockert:
I do think we left money on the table because, first of all, we did give sponsorships at a discount because it was so late, number one. Number two, there's only so much you can do in three weeks, so we didn't have really the time to foster that kind of outreach and sponsorship beforehand, and I think if we would've had more time to dedicate earlier on that we could've had more sponsorship money and really been able to fund the event in a better way.
Bobbi Rebell:
What did you do differently in year two?
Melanie Lockert:
This year we've definitely worked on approaching sponsors earlier. I'm happy to say that we're going to be working with Fidelity on a welcome reception for Lola Retreat year two. I'm super excited about that. They are a wonderful company, and they've always supported women and money. We're definitely working with a lot of scholarship sponsors this year. That makes me super happy because the scholarship sponsorship is near and dear to my heart. Essentially people sponsor a lovely lady to come to the event who wouldn't be able to otherwise come, so they get to read over the scholarship applications and they get to pick who they think would be a good fit to come to the event. It's really interactive, it's really an affordable sponsorship too, and at the end of the day it's one less ticket that I need to sell, so we've been focusing on that a lot as well, which is fun for me, and I really enjoy that part of it.
Melanie Lockert:
Yeah, I think this year we've had kind of more time to focus and more outreach, and then really focus on big partners. We've loved to work with Fidelity this year and continue working with sponsors that really align with our values.
Bobbi Rebell:
What is the lesson now? I know that we are still a couple weeks away from Lola Retreat. What is the lesson for our listeners about this? What's the takeaway?
Melanie Lockert:
The lesson is that you should always ask, and you should really check yourself if you think there's no way that you can do something because in my mind, I had already made up the fact that, "Oh, no one's going to give me money. It's too late. It's three weeks before the event. Why would anyone take me seriously?" Mind you, it was scary because in year one, this was before the event, we had nothing to show for it. We had no photos, we had no testimonials, we just had a website essentially. We had nothing.
Bobbi Rebell:
Well, you also had your reputation. You had a very strong reputation, as does your partner.
Melanie Lockert:
Yes.
Bobbi Rebell:
You did have that. That's a lot.
Melanie Lockert:
Yes, we did have that, which is definitely helpful, but from an event standpoint we had nothing necessarily to show, "Here are the testimonials, here are what people said, here are photos, here's impressions from the social media from that weekend." We had nothing concrete to show, and so in my mind it was like, "No one's going to take us seriously. No one's going to give us money," and I just had already made up my mind, but I was so shocked kind of how easy it was. I mean, it wasn't super easy, but it wasn't that difficult either.
Bobbi Rebell:
People said yes.
Melanie Lockert:
People said yes more than they said no actually.
Bobbi Rebell:
Wow.
Melanie Lockert:
I think I was just so passionate about women and money and doing this event, and I think people could see the grit and the passion in my words, and they can understand the idea. People were willing to invest in that idea, and those initial sponsors, I'm so grateful for because they really believed in us and our idea from the beginning when we had nothing to show. I'm really grateful for them, and then it just proved to me, like what other areas of my life am I convinced that, "Oh, this isn't going to work out, or this wouldn't happen," but if I just try, maybe it will. Actually, this is a reoccurring lesson for me. I actually when I was a non-profit employee before becoming self-employed, I had never asked for a raise once. Not once. I'm so ashamed that I've never negotiated my salary until becoming self-employed, because as a self-employed person, you have to learn to negotiate or you will not survive. This is kind of a reoccurring money lesson for me is that I have to know what I'm worth, and I have to negotiate, and I have to ask, and really at the end of the day, the worst thing people are going to say is no. No one's going to laugh at your idea and say you're stupid and call you ridiculous and think, "Wow, you think you're something else," or "you think you're a bigshot."
Melanie Lockert:
No one's going to say that. They're just going to say, "No, we can't do that." It's really okay. I'm really trying to push my boundaries and figure out other areas of my life that I can push and really kind of change the game a little bit.
Bobbi Rebell:
Let me just ask you before we get to your money tip. In terms of the money, you made a few thousand dollars in year one. In terms of how much more you're going to make this year, can you give me some idea of how the results changed when you were more purposeful in asking for sponsorships?
Melanie Lockert:
That's a good question. That's still TBD because we still have a lot of expenses that are going to be in the queue in the next coming weeks, but projecting right now it looks like hopefully double what we made last year, which would be really amazing, but like I said, we're not totally sure because there are a lot of last minute expenses that come up towards the end. We will see how everything shakes out, but I'm feeling pretty good about everything right now.
Bobbi Rebell:
I want to talk about your money tip because this one is brilliant, and I never thought of this. This is really original, and it's something that can let us all have our luxuries and indulgences, but within our budgets, or even just to save money for other things that we want to do even if we're not on a tight budget, so it's nice to spend a little bit less for luxuries in life. Do tell.
Melanie Lockert:
Totally. Yeah. My money tip is to go to a beauty school for haircuts, pedicures, manicures, or massages or facials. When I was paying off debt, I didn't really have extra money to do anything, but I still wanted to treat myself at least once a year to something, especially when I hit a big debt milestone, right? I found this beauty school in Portland, and the rates were so insanely cheap because all of them were students, and before you get scared, they do have kind of more professional level people there working alongside the students to make sure they don't mess up. I remember I paid like $35 for a pedicure, a manicure, and a facial.
Bobbi Rebell:
Total.
Melanie Lockert:
Total, and I'm pretty sure the school had a policy that you couldn't tip either because it was a school, so it was super affordable. It was really affordable. My money tip is to find a local beauty school in your area and see what services they offer. It could be much, much cheaper and at a fraction of a cost, and at least in my personal experience, it was wonderful. If you have a specific person that you love or specific things then maybe that's not necessarily the best tip for you, but for me, the services were completely comparable and totally worth it.
Bobbi Rebell:
I love that. Let's talk about the Lola Retreat. It is in my hometown, New York City, this year.
Melanie Lockert:
Yay, I'm so excited.
Bobbi Rebell:
Tell us more.
Melanie Lockert:
Yeah, it's going to be at the Financial Gym, so Shannon McLeigh, the CEO and founder of The Financial Gym is one of my best friends.
Bobbi Rebell:
And she was on the podcast last week.
Melanie Lockert:
Yes, she is amazing, and she has graciously agreed to host us in New York city, so Lola Retreat is at The Financial Gym April 27th through the 29th, and we are going to have sessions on how to pay off debt, how to get started with investing, how to level up your money with Kristin Wong. We also have Get Your Financial Life together with Erin Lowry. We also have some really interesting panels on how to prepare and deal with financial disaster as well as this concept of F Off Funds. I won't curse on the podcast, but it's especially important for women, especially right now for women to have a separate stash of cash to be able to say, "F you," in a situation that is not healthy, whether it's a workplace scenario, a relationship scenario. I think it's so important, so I'm really excited about the content that we have, and so excited to meet our lovely ladies. Yeah, I think it's going to be a wonderful weekend.
Bobbi Rebell:
Where should I send people to sign up for Lola and to be in touch with you?
Melanie Lockert:
People can go to LolaRetreat.com and check it out. People can also find me at DearDebt.com.
Bobbi Rebell:
All right. Melanie Lockert, Lola Retreat. Can't wait to get there. It's going to be amazing. Thank you so much.
Melanie Lockert:
Yes, thank you.
Bobbi Rebell:
Hey, friends. Loved hearing how far Melanie and her partner have come in just one year of the Lola Conference. Here's my take, Financial Grown Up tip number one. Aim high. In year one, Melanie didn't think she would get any sponsors. She was shy just about reaching out to anyone at all, but here we are, just year two, just a second year, and she has incredible brand. She has Fidelity, guys. Sensei, Shopkick, and of course The Financial Gym, so don't write off a large company assuming they will only sponsor large events. They will find, often, a lot of value in smaller, targeted, specific events that have engaged and invested audiences as is the case with Lola.
Bobbi Rebell:
Financial Grown Up tip number two, be creative when it comes to treating yourself. If you're feeling deprived financially because you never get to do anything, you are much more likely to cheat, just like on a food diet. Melanie talked about going to beauty schools for things like manicures, massages, facials, all that good spa stuff, but sticking to the theme of students, you can also, for example, have a great meal at a cooking school, or if you're redoing your home or redecorating one of the rooms but have a limited budget, consider getting a student from a local design school involved, and just think, you could be someone's final graduation project. You never know.
Bobbi Rebell:
All right, if you enjoyed Melanie's story, please hit the subscribe button, and if you have just a few minutes, leave a review on Apple podcast. They really do make a difference in getting the word out. I am also working on getting better at sending out my newsletters, so if you are not already on the list, get on the list. Just go to BobbiRebell.com. While you're there you can check out previous episodes by clicking on Financial Grown Up Podcast, and of course, be in touch. I'm on Twitter @BobbiRebell, Instagram @BobbiRebell1, and my author page on Facebook is Bobbi Rebell. I hope you guys all head out and treat yourselves to some affordable indulgences just like Melanie, and that we all got one step closer to being financial grown ups.
Bobbi Rebell:
Financial Grown Up with Bobbi Rebell is edited and produced by Steve Stewart, and is a BRK Media production.
Trade Bodge and her partners set out to build a business- that they knew was challenging before they even started. But they focused on funding, building a strong foundation, and learning from the past mistakes.
In Trae’s money story you will learn:
-The market opportunity Trae and her partners saw when they created ThreeCustom.com
-The challenges the new business faced, including the difficulty of scaling up
-The creative way they funded the business
-Why Trae left the business
In Trae’s lesson you will learn:
-The challenge in finding the balance between waiting until a business is “ready” and moving forward while there is the most excitement
-Why she believes entrepreneurs should pay as much attention to how time their launch, as how they spend their funds
-Specific ways to research markets ahead of time, and during the early stages of a business launch including trade shows and how to get competitor insights.
-How to use time to your advantage
In Trae’s money tip you will learn
-Where to find money, that is already yours, to fund your startup
-How they each saved $25,000 to put towards their business
-How to avoid feeling deprived when saving for a goal
In my take you will learn:
-The realities of start-up life
-What to do when you just aren’t that into your startup
-Tips to make sure you remain financially solvent even as an entrepreneur with a startup
Episode Links
Threecustom.com on Twitter: https://twitter.com/ThreeCustom
Traebodge.com
Follow Trae!
Twitter https://twitter.com/truetrae
Instagram https://www.instagram.com/traebodge/
Facebook https://www.facebook.com/Truetrae/
Transcription
Trae Bodge:
We had the best intentions. We wanted to get out there and start this business. We found out that customization is very difficult to scale, and so any business who has attempted to do bespoke or customized products can attest to this. It's very, very difficult to grow a business like that.
Bobbi Rebell:
You're listening to Financial Grownup with me, certified financial planner, Bobbi Rebell, author of How to Be a Financial Grownup, but 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:
Hey, everyone. This is an episode about starting something really big, being all-in, and then finding out maybe it's not for you and having the strength to, well, exit gracefully. My guest and her partners were off to the races with what seemed like a genius idea: blend customer colors to replace makeup products that were no longer available. But, while the business is still chugging along, Trae Bodge left and is now a smart shopping expert that you can see all over the media and with her column in Women's Day. Here is Trae Bodge.
Bobbi Rebell:
Trae Bodge, smart shopping expert, you are a financial grownup. Welcome.
Trae Bodge:
Thanks so much for having me.
Bobbi Rebell:
Congratulations, by the way, are in order for your new Women's Day column.
Trae Bodge:
Oh, thank you so much. I'm really excited to be partnering with Women's Day as their financial expert. I'm covering everything from best buys month-to-month, how to maximize your tax return, how to save on your Amazon purchases, all sorts of things that savvy shoppers need to know.
Bobbi Rebell:
Awesome. We will definitely put a link to it in the show notes. I'm excited to hear your money story because, first of all, it has to do with the beauty business, it has to do with being entrepreneur, and it has to do with how much money do you really need to start a business? Do tell.
Trae Bodge:
Many years ago, two friends and I thought that we wanted to start a beauty business that specialized in the reproduction of discontinued colors. This is something that one of my partners and I had done for another brand that came on to the scene, blew up really quickly, and then fizzled out really quickly. Because, we found out, is that customization is very difficult to scale, and so any business who has attempted to do bespoke or customized products can attest to this. It's very, very difficult to grow a business like that.
Trae Bodge:
But we had the best intentions. We wanted to get out there and start this business and custom-blend products for women, and men, of course, and makeup artists. We started, for the first couple of years, creating our plan, saving our tax returns, saving our bonuses very-
Bobbi Rebell:
Saving the refunds from the tax returns.
Trae Bodge:
Yes, yes. Saving our tax refunds, and planning along the way. What this business was about was really about answering a problem that many women had, which was when you have a favorite product, like your favorite eye shadow or your favorite lipstick, and then that product is continued, we set out to reproduce those products as close as we could to the original color and texture. Then we kept that formulation on file so you can reorder it any time. Now, I [crosstalk 00:03:33]-
Bobbi Rebell:
I love that.
Trae Bodge:
It's such a helpful process for so many people because you finally find that thing that works, and then suddenly, you can't get it anymore. Forgive me, I do sometimes speak about it in the past tense because I'm no longer with the business. The business is still alive and well. You can find it at threecustom.com. My two partners are still running the business, but about four years ago, I decided that I needed to move on and do new things, which is where I landed as a smart shopping expert.
Bobbi Rebell:
Tell me, what is the lesson from that story? What is the takeaway?
Trae Bodge:
For me, and in terms of being a financial grownup, when we set out to start our business, there's this excitement and energy about getting the business out there right away. My recommendation to all potential entrepreneurs out there is I know you want to get out there and you want to get out there now; however, the time that it takes to save the money or to crowd-fund, for instance, if you're going to do Kickstarter or Indiegogo, or if you're going to look for venture capital or money from family and friends, the time that it takes to gather that money is time that works for you. You need the time to do your market research, to attend trade shows, to interview people and really flush out what you want this business to be because there are so many brands out there. How are you going to differentiate and set yourselves apart from the competition?
Trae Bodge:
For me, I would say to people, just take your time. Don't get frustrated by how long it takes to start a business, and use that time to your advantage.
Bobbi Rebell:
Give us a money tip, something tangible that people can literally do today.
Trae Bodge:
This is a tip that I think can apply to many things, whether it's going to be starting a business or paying off your student loans or any other debt is to take money that may feel like a windfall, and rather than spending it and going on a luxurious trip or buying a fancy handbag or even doing a renovation in your apartment, save that money. Save that money towards your business.
Trae Bodge:
What my partners and I did over the course of about two years is every tax refund we got, every bonus that we received, and then any extra money from if we inherited a little bit of money or anything extra like that, we did not take that money for ourselves. We put it in the bank. The three of us each saved over two years. We were in our early 20s at the time. We each saved $25,000. For the three of us, we were able to start our business with $75,000 after couple of years.
Trae Bodge:
That would be my money tip is that money that feels like something extra, instead of going to town with it and spending it, put it away towards your goal.
Bobbi Rebell:
But it's hard because you feel like it's found money.
Trae Bodge:
Yeah. It does. It is hard. It almost feels like you're on a diet. It's like you have that diet and you have the rules in front of you and everything you're supposed to eat and not eat, and you really, really, really want to eat that thing that you're not supposed to eat. To me, it's the similar feeling. You see that money, cross your hands, and you so want to go out and enjoy it and treat yourself because especially with, say, a bonus from work, it's like that's being given to you as a congratulations for work well done, and you want to enjoy that, but instead, put that away. You'll save money so much faster than you think you can.
Bobbi Rebell:
Trae Bodge, thank you so much. Wonderful story. Wonderful advice. We will all be checking out your column in Women's Day and visiting your website, which is traebodge.com, right?
Trae Bodge:
Yes, it's traebodge.com or truetrae.com, and definitely follow me on social. I'm truetrae or traebodge. I hope to see you all there as well.
Bobbi Rebell:
Wonderful. Thank you.
Trae Bodge:
Thank you.
Bobbi Rebell:
I loved Trae's story because it highlights the gray areas of startup life. Sometimes, a business is solid, but maybe not the future that you want. It's not a bad thing. It's just not your thing. Financial grownup tip number one: Leaving something that isn't right for you is like leaving a relationship with someone that you are just not that into. You could stay. It will probably be okay, but by staying with something that isn't for you, you're also not finding the business or career that is right for you. It's the missed opportunity cost. Don't get caught up in sticking something for fear people judging you or an idea that you are not a quitter. It's not about the exit. It's about what you find behind the door that you open as you leave.
Bobbi Rebell:
Financial grownup tip number two: As Trae says, whenever you start something new, don't rush in. Take the right amount of time to build yourself enough runway that you can be intentional when you do ramp up. You don't want to be scrambling for cash to fill an order. Be purposeful. Spend the time before you spend the money.
Bobbi Rebell:
Thank you all for your support. If you have not already, hit that subscribe button so you won't miss any episodes, and be in touch on Twitter @bobbirebell, Instagram @bobbirebell1, and of course, visit my website bobbirebell.com and sign up for our mailing list so we can keep you posted on what's going on at the show, and of course, spread the word. Tell a friend. Thank you also to Forbes for naming Financial Grownup as one of five podcasts that are getting it right. That was really cool. I hope you all enjoyed this episode with smart shopping expert Trae Bodge and that we all got 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.
After 148 rejections in the first funding round, Kathryn Minshew co-founder and CEO of the Muse took note of what she did wrong and upped her game when she went looking for new financing. Minshew scored close to $30 million thanks to the new approach.
In Kathryn’s money story you will learn
-How Kathryn and the Muse team re-vamped their strategy the second time they raised money
-How Kathryn rebounded from the 148 rejections in the seed round of financing
-How The Muse raised $30 million from investors
-How they were able to ask for less money and come out with more than the original targets
-The way Kathryn structured her process when pitching investors
-How they organized their pitches and research to be more effective
-Kathryn’s investor prioritization strategy
-The specific thing Kathryn said to investors to get them to the table faster- and with more interest in her company
-How a second round of financing is different- and should be approached differently from a seed round
In Kathryn’s lesson you will learn:
-The advice Kathryn found most helpful from her networks and mentors
-How she got help from other entrepreneurs
-How to tell if the investors are wrong not to invest- or if your idea and pitch is missing the mark
-How to figure out who your end users are- and why it is important
-Strategies and specific things to ask in order to get honest input about your company
In Kathryn’s money tip you will learn:
-Negotiations can be about more than just cash
-How to ask for signing bonuses, signing bonuses, flextime, vacation time, better titles.
-Why budgets for professional training are essential and how to negotiate for them
In my take you will learn:
-How to learn lessons from rejection, and incorporate them in your next venture
-The importance of taking the time to throughtfully plan and customize presentations and pitches
-How to level the playing field even when the other party is clearly more powerful.
Episode links:
TheMuse.com
Kathryn’s book with Muse co-founder Alexandra Cavoulacos The New Rules of Work
Follow Kathryn and The Muse!
Instagram @kminshew @themuse
Twitter: @Kmin and @TheMuse and @TheNewRules
Facebook https://www.facebook.com/thedailymuse
https://www.facebook.com/minshew
Transcription
Kathryn Minshew:
If you tell someone you're the founder of a company and ask for their input, they are more likely to give you positive impact because they don't want to hurt your feelings. If you tell them that you're a consultant helping a company understand how its market positioning lands, or helping a company better understand what it's doing well and what it's not, people are much more likely to give you totally unfiltered feedback for the series A because I was running a process.
Bobbi Rebell:
You're listening to "Financial Grownup" with me, Certified Financial Planner, Bobbi 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:
Hey, everybody. This is an episode about rejection, and what you would do differently the second time around. How to tell were they wrong to reject you? Maybe your message could be a little bit more on point. The Muse founder and CEO, Kathryn Minshew has told the story many times of how she and her colleagues were rejected 148 times when they when to raise money for their startup, The Muse. Once the company got off the ground, it has been a massive success, and many people would say, "Well, those 148 people, they must be so sorry that they rejected it." And of course, that is true to some extent. But also, Kathryn looks back and realizes she had a lot that she would do differently the next time. And in fact, she did do it differently when she went back for the next round of financing, and that's what we talked about. Here is Kathryn Minshew.
Bobbi Rebell:
Kathryn Minshew, you are a financial grownup. Welcome to the program.
Kathryn Minshew:
Thank you so much. I'm so excited to be here.
Bobbi Rebell:
And you are well known as the founder and CEO of The Muse, the amazing job site, and also well known for being rejected when you went to raise money. Tell me how many, 140 something times?
Kathryn Minshew:
148 times. It was like rejection for breakfast, lunch, and dinner, with a few meetings and noes inbetween for fun.
Bobbi Rebell:
And you are the queen of resilience, and one thing that you talk about in your book, "The New Rules of Work", which I should have mentioned to everybody. She is the author of a fabulous career book called "The New Rules of Work".
Bobbi Rebell:
You talk about your personal brand, and how important it is to define it. That fundraising and the lack of it for so long became your personal brand. So you brought with you a money story that has to do with what happened next, after you finally did get the initial funding and you went back for me. Tell us.
Kathryn Minshew:
Absolutely. Well, first of all, I'll say it's much easier as we all know to talk about failure once you've moved past it. So it became much easier to tell the story of the 148 noes after we had already successfully raised our series A and B rounds. So we've raised almost $30 million in venture capital so far for The Muse.
Bobbi Rebell:
Amazing.
Kathryn Minshew:
It's been a totally wild ride. So my financial story involves what I set out to do, or rather what I did in the series A to ensure that we had an outcome that was very different than the seed round. Because, obviously, I knew how important it was for that next round, to get it right from the go-ahead. And so to try and condense the story into something very quick, we wanted to go out and initially we were thinking about raising six to $7 million. But actually given the advice that I got while preparing for a fundraise, we were actually told to start out saying we were thinking five to six or five to seven, and then slowly let the demand build. So instead of us going out for a big number and being less sure if the market would respond, start out with a smaller number. And then, if the market is really excited about our business, let the negotiations and the demand push it up, which ended up working really well for us because we ended up raising 10 million after we had overwhelming demand.
Kathryn Minshew:
I also was incredibly structured about the process probably because I was a little bit paranoid after having such a difficult time with our seed round. So ahead of time, I really worked the story, got all of our metrics out there. I thought about how best to position them, which numbers to lead with, what to put first so that we could really grab people's attention. We were obviously lucky in that we had really great revenue growth and a lot of very strong metrics.
Kathryn Minshew:
And then, I actually created a spreadsheet. I took all of the investors that I was even remotely interested in talking to. I put them in a spreadsheet. Divided it up by location, so that when I was in New York, San Francisco, Boston, Chicago, DC, et cetera, I could meet with people who were there. Then, I included information about whether they had invested in any similar companies, any competitors. Any companies that might give them a better understanding into what we did at The Muse. I would include notes from different meetings. I actually would also rank how excited I was after each meeting to continue conversations, so I could prioritize the ones that I was most excited about. I would say that really helped to keep me on track, and so we were also able to run a pretty tight process, where we pinned all of our first meetings with investors to the same two-and-a-half or three-week period.
Kathryn Minshew:
It was really interesting because in the seed round, we had a lot of trouble with investors saying, "Oh, I'm busy, right now. But how about in a month?" I wasn't confident enough in the business, so we would just take whatever we could get for the series A because I was running a process. I would write back to people and be like, "You know I'd love to talk, but unfortunately, I need to get all of our first meetings done by X date. So I can push it a few days, but let me know if you're going to be able to make it work. And if not, I'm totally fine. We'll keep in touch and maybe there'll be another round that you can participate in." And what was fascinating is a lot of people would say, "Oh, let me move around my schedule. Absolutely, I can make it work." And suddenly, we were negotiating from a more even position. And the ones that weren't able to or the ones that said, "No, sorry. I can't do it," they probably would have never backed the company to begin with.
Bobbi Rebell:
True. Do you think looking back, obviously when you were going for the most money, the second round, you were a stronger situation to begin with. But had you used the techniques that you were now using that you just talked about, would you have had more success the first time?
Kathryn Minshew:
You know, maybe. It's so hard to know because the seed round for a startup is really different than later rounds because people aren't necessarily looking at your metrics. They are to some extent, but they're really betting on you. And I think the fact that it was my first proper company that I was fairly young at the time, this was six-and-a-half years ago, so it was very early in my career. And I think that plus the lack of knowledge or understanding about what we were trying to do in the business were some of the biggest concerns. So I do think we could have had a better time and controlled the process a bit more, but I also think there were just some fundamental and structural things that we had to get through and really prove on very limited capital before we could really go out and successfully fundraise from bigger investors.
Bobbi Rebell:
So now, what is your advice to listeners and especially want-to-be entrepreneurs that are looking to raise money, start businesses, and especially to young women?
Kathryn Minshew:
I would say, firstly, you can't understate the importance of perseverance because it is so hard in the early days. But I think that doesn't mean that you just keep doing the same thing without adjusting your tactics and thinking about how you could be more strategic. I found it to be so invaluable to get the advice from others, especially other female entrepreneurs. Because sometimes we have a lot of great friends who are entrepreneurs, who are men, but sometimes the tactics or the approaches or behaviors that would work for them, didn't work the same when I did them because of unintentional or unconscious bias or other things. And so I found that it was really helpful to surround myself with a network of entrepreneurs of both genders to get a lot of advice, to test out different approaches to see what felt natural and normal to me. Because if it feels too unnatural to you, investors will probably pick up on that, and it won't help you communicate that confidence that you are looking for when you're starting to talk to investors about your business.
Bobbi Rebell:
So one last question about this for our listeners, how do you know the difference between maybe your idea just isn't that good, and that's why you're not getting funding and you should stop, or you should persevere as you did because your idea just isn't hitting the right people at the right time with the right message?
Kathryn Minshew:
Absolutely. So you've just gotten to the crux of what makes this so hard, which is that there is no silver bullet, and you will never have 100% confidence or certainty either way, which is incredibly difficult. However, I think there are a few things you can use to help you directionally get that sense of whether your business is likely to be successful. The first, and I think the most important is to figure out who are your end users and do as much as possible to get unfiltered feedback from them.
Kathryn Minshew:
For example, if you tell someone you're the founder of a company and ask for their input, they're more likely to give you positive input because they don't want to hurt your feelings. If you tell them that you're a consultant helping a company understand how its marketing positioning lands or helping a company better understand what its doing well and what it's not, people are much more likely to give you totally unfiltered feedback, and you need that unfiltered feedback when you're trying to ascertain if you really need to keep pushing forward on your business.
Kathryn Minshew:
So in my case, even though we were getting rejection, after rejection, after rejection from a lot of investors, we were hearing things from our users and from people who were signing up to use The Muse that indicated we had tapped a nerve and we were on a path that people love. They wanted us to use the product. They'd say I love The Muse, but can you do these five things? Make it better here. Change this. That's all positive feedback because that shows you that there is a need. You just have to keep getting better, and I think that is what gave me the oomph to keep going. But I will just call out it's not like I knew the whole time, oh my gosh, this is a great idea. I just have to keep going. I definitely struggled with whether I should accept that these people that were much more experienced than I, that were successful investors, maybe they knew something I didn't, and I just had hubris.
Bobbi Rebell:
All right. Let's do a money tip. You are the career guru, and you have so many amazing ideas and tips in your book. I wanted to pull some out of there and get maybe your favorite tips that people can use in their careers, and their ventures that they could maybe put to work ASAP at their next job interview or their next negotiation, what have it.
Kathryn Minshew:
I thought through a lot of different things I could share here, and the one I came up with that I wanted to talk about today is the fact that when you negotiate, it is not just all about cash and I think it can be really empowering to realize that because so many of us have anxiety about negotiating a salary, negotiating a raise. Whether it's at the beginning of a job search, or when you're getting a promotion. But I would encourage people, remember that there are a lot of other things you can negotiate for.
Kathryn Minshew:
So obviously, base salary is the thing that people talk about most. But what about signing bonuses, performance bonuses if you achieve certain things? You can also negotiate for flex time, for vacation time, for a better title that might help you in your career. One of the most creative things that I've heard is people negotiating for a budget for professional development and training.
Bobbi Rebell:
Specific money. In other words, not just saying, "Will you send me," in theory. It's very specific.
Kathryn Minshew:
Oh, very specific. In fact, there was someone at an organization that had mandatory salary bans that the leadership wasn't able to go beyond, and so she said great. Why don't you dedicate ... I think it was five or $10,000 towards training development conference that will include my travel, and that will help level me up to be a better employee for you, to let me do my job better, and it won't invalidate the salary cap. This will just be another way that you're investing in my growth, and they said yes, and I think that is such a great example of creativity when it comes to negotiation.
Bobbi Rebell:
Amazing. That's such great advice. Thank you so much. Tell us quickly before we wrap up, what are you guys up to at The Muse these day, and where can people find you?
Kathryn Minshew:
Absolutely. So people can find me at The Muse or @kmin on Twitter. As a company, we are doing a lot right now, but we have been really focusing on we rolled out a new feature called Discussions on TheMuse.com, where people can ask and answer each other's questions. So if you have a career question or you want to learn more about negotiating a raise, we've got a way now to get advice from our community and hear other people's stories. And then, I'm also just kind of fascinated down the road by continuing to explore this idea of how people make the best career decisions, how they find the right fits, and how we help companies tell their stories in a more genuine and authentic way that isn't about just come work here, we're great, but really shares the information people need to know to decide do I want to be part of that organization, or be part of that company?
Bobbi Rebell:
Hey, friends. Here's my take on what Kathryn had to say.
Bobbi Rebell:
Financial grownup tip, number one. Like she did, do your homework, including learning what went wrong the first time. Even if you think the companies or whomever you were pitching to were wrong to reject your idea, we all have room for improvement. Kathryn went out and asked for advice, for example, about how much money to ask for. She actually went for a smaller number based on the advice as a strategy, and ended up raising more money, so it worked. She was also much more organized and structured in her preparations the second time around. She was specific to each company, and deliberate in her presentation. She planned geographically, so she could be efficient with her time. Kathryn even ranked how excited she was about prospects, so she could prioritize and focus on her resources and the best alow there.
Bobbi Rebell:
Financial grownup tip, number two. Stand up for yourself, even if you need them more than they need you. In Kathryn's second round, when prospects said they didn't have the time to meet with her any time soon, she pushed back and was not only able to get them to the table faster when they were interested, but also to level the playing field for a stronger negotiating position.
Bobbi Rebell:
Thank you for listening to this episode of financial grownup. Please subscribe if you have not already. Reviews are great if you have just a few minutes. You can follow me @bobbirebell on Twitter, @bobbirebell1 on Instagram, and learn more about the show at BobbiRebell.com/FinancialGrownupPodcast. I hope that you all enjoyed this episode of "Financial Grownups" with The Muse's Kathryn Minshew, and that we all got one step closer to being financial grownups.
Bobbi Rebell:
"Financial Grownup" with Bobbi Rebell is edited and produced by Steve Stuart, and is a BRK Media production.
Growing up with dad Tony Robbins taught Josh Robbins the value of the intentional and unapologetic splurge. Josh Robbins shares the no-regrets story of his 11-year old self blowing a huge sum of money on one of the most memorable days of his life.
In Josh’s money story you will learn:
-The lessons Josh learned being behind the scenes at his dad, Tony Robbins events
-How at age 11 Josh started his own business
-Josh’s sales strategy
-The unexpected way Josh spent his profits
In Josh’s lesson you will learn:
-Josh’s philosophy on material goods vs. experiences
-His thoughts on whether he should have invested his profits in the market
-Josh’s take on side-hustles
-Josh’s advice on how to find more time to accomplish your goals
-Josh’s warning about social media and Netflix
In Josh’s Money Tip you will learn:
-How to find out what fees your are paying in your 401(k)
-How the law concerning 401(k) fee disclosure has changed
-What level of fees is considered too high
-What to do if your plan is costing you too much
-The financial consequences of even a 1 percent increase in fees
In my take you will learn:
-Why I at first disagreed with Josh’s financial decision, and how he changed my perspective
-The value of shared experiences and the memories from them
-The financial impact of how you choose to spend you time, not just your money
-Strategies to invest in yourself
Episode links:
To check what you are paying in your 40 (k) go to showmethefees.com
To learn more about Josh Robbins and America’s Best 401 (k)
AB401k.com
Tony Robbins donates all of his book proceeds to Feeding America.
To learn more about Tony Robbins Feeding America: http://www.feedingamerica.org/
Follow Josh Jenkins-Robbins
Twitter @jenkinsrobbins
Facebook: Josh Jenkins-Robbins
Growing up with dad Tony Robbins taught Josh Robbins the value of the intentional and unapologetic splurge. Josh Robbins shares the no-regrets story of his 11-year old self blowing a huge sum of money on one of the most memorable days of his life. In this Financial Grownup podcast episode you'll learn how even a 1% increase in fees can have consequences and the ways you can invest in yourself. #InvestInYourself #Money
Transcription
Josh Robbins:
I would love to say I was really smart, and I saved it, and I stuck it in the market, and today, it's worth a million bucks. But I actually took it home, got about 10 of my friends, rounded them up, and we all went to the local fair that happened to be in town during that time in the summer. We had the most fun time ever. We spent all thousand dollars, walked in there with nothing.
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. 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:
Hey friends. Today's story is about living your life, not your bank account. I'm not talking about being irresponsible like blowing your child's college fund or not saving for retirement. I'm just saying it is okay to give yourself permission to enjoy what you earned. Create memories with your friends and family. Josh Robbins is the Chief Strategy Officer at America's Best 401K, which is a major disruptor in the retirement business, one that I actually talk about in my book, How to Be a Financial Grownup. Josh is also the proud son of Tony Robbins, whom I have had the pleasure of interviewing a number of times and who contributed both a story and the foreword to my book as well.
Bobbi Rebell:
Josh, of course, as you can imagine, had an unconventional childhood to say the least, and as an adult, he is truly living by his father's life philosophies. This was a great conversation for me, because it reminded me that we have to live our lives and create great experiences with those we love. I hope you enjoy it as much as I did. Here is Josh Robbins. Josh Robbins, you are at Financial Grownup. Welcome to the podcast.
Josh Robbins:
It's great to be here. Thanks for having me.
Bobbi Rebell:
I can't believe it's been almost a year since we met. We met at the Nasdaq. Your family was being honored because of your dad's charity, Feeding America, and how many millions of meals has that been?
Josh Robbins:
Gosh. You know what? It's already ... He donated the profits from both of his financial books Money: Master the Game and Unshakable. And so, now, it's over 300 million meals.
Bobbi Rebell:
Oh my gosh.
Josh Robbins:
And now, they're on track to do a hundred million meals a year for the next seven years. So they'll have done a billion meals just through the profits and through also, just through matching. So, at Feeding America, if anybody's listening, wants to make a donation, Tony will match it. I think it's feedingamerica.com/tonyrobbins. Really simple. So he's committed to making a difference.
Bobbi Rebell:
It's interesting because you grew up in a very interesting environment, where you would be backstage at your father's events. Tell me your money story. You were a little entrepreneur, at what age? 11?
Josh Robbins:
Yeah. I was always trying to figure out how to hustle and run around and make money. And so, Tony has these big seminars. And back then, they'd be like these marathon events like 10 days long. There was one, that I remember in particular, where there's about 5,000 people there. So every lunch and dinner, they'd go out to these big giant tents, these meal tents, where people were sitting down eating, and I pounced on that opportunity to work on my sales skills.
Bobbi Rebell:
What did you do, Josh?
Josh Robbins:
I ended up buying these key chains that were really inexpensive.
Bobbi Rebell:
Do you remember what your cost was?
Josh Robbins:
I think my cost was a buck, and I was selling them for like three to four.
Bobbi Rebell:
Nice. Big profit.
Josh Robbins:
Yeah. So, big profit margin, and everybody loved it, because I'd come to the table. I think everybody just loved the idea that an 11-year-old was kind of selling [crosstalk 00:03:29]-
Bobbi Rebell:
You were probably milking that cuteness, you know?
Josh Robbins:
Yeah, well, it's like girl scout cookies, like what? Are you going to say no? So, anyway, it was fun. I ended up raking in about a thousand bucks over the course of this event.
Bobbi Rebell:
Oh my gosh. Wait, so, $1,000, like, what's the math on that? $3 each. Oh my gosh. You were selling a lot of key chains.
Josh Robbins:
A lot of key chains. I think everybody in that event had those key chains at the end, and I'm sure they all felt super obligated to buy one too. So, it was great.
Bobbi Rebell:
But it was a high quality key chain, I'm sure.
Josh Robbins:
Oh it was incredible. I'm sure they're still around today.
Bobbi Rebell:
All right, so you walk away with a thousand bucks. So that, first of all, that's a great, great story because that's your entrepreneurial venture and you're learning. But then what happened to the money? You go home, then what?
Josh Robbins:
I would love to say I was really smart, and I saved it, and I stuck it in the market, and today, it's worth a million bucks. But I actually took it home, got about 10 of my friends, rounded them up, and we all went to the local fair that happened to be in town during that time in the summer, and we had the most fun time ever. We spent all thousand dollars, walked in there with nothing.
Bobbi Rebell:
In one day?
Josh Robbins:
In one day, played every game, wrote every ride, and just did every possible thing you could want to do at the fair, and my friends were ecstatic, and I was ecstatic. It was beautiful because I learned a really valuable lesson, in the sense that, money is just a tool, right?
Bobbi Rebell:
Right.
Josh Robbins:
And money can be used to create incredible experiences. Stuff is fun for a little while, but experiences are really what life's about. And so, that was such a beautiful lesson for me. Obviously, saving, you know, I learned how to do ... learned that later, but that was a really, really beautiful lesson for me to have.
Bobbi Rebell:
Yeah, so, what is the takeaway then for our listeners? And by the way, where were the parents when this was going on?
Josh Robbins:
Great question. It's like a little bit of the Lord of the Flies stuff going on there.
Bobbi Rebell:
I know. I mean, I don't know. I feel like this is a different era that there are all these 11-year olds running around, spending hundreds and hundreds of dollars each at this day. It's interesting, because millennials now, at least as a stereotype, are into experiences. So is that the lesson for our listeners? There's a line though, there's a fine line, because as you said, if you had invested that $1,000, we could be having a different discussion.
Josh Robbins:
You're absolutely right. Yeah, I think look, for me, I think the takeaway is twofold. One, we're living in the day and age of the side hustle. You know, as Gary Vee would say, I think everybody needs to figure out how to create that additional money that they're going to be able to sock away. So, if they can have it from their job, great. But if they just say, "Hey, you know what? I can't make ends meet," there's always time. What's the average amount of time people watch TV these days? It's crazy.
Bobbi Rebell:
And not to mention social media.
Josh Robbins:
Oh social media. I mean, everything's time drain. So when people say they have no time, I just don't buy it. So, to me, I think creating that opportunity for yourself, to have financial freedom is incredible. So that's got to become a priority, because they can't afford it, right? But you got to pay yourself first. So in other words, let's just say tomorrow, the government raise taxes 10%. We'd all whine and moan, but we'd all end up paying, right?
Bobbi Rebell:
Mm-hmm (affirmative).
Josh Robbins:
And you got to think about your future the same way. You got to pay your future self in the same way. So, you know, I'm going to tax my current self 10% no matter what or more, but I'm going to do it for my future self. And yeah, it might create some cutbacks in the short term, but if you don't have the cutbacks, go out and get a side hustle. Make it happen.
Bobbi Rebell:
I know one thing you love to focus on, and it's something that we all need to focus on more, is fees.
Josh Robbins:
Yeah, I think one of the most interesting things is ... Tony went out and interviewed 52 top financial minds in the world, and it kept coming back to fees as one of the main themes, if you will. What I mean by that is most people have no idea. In fact, I just read a study recently that said 96% of people know exactly how much they spend for their Netflix account, but 71% of Americans think they pay no 401k fees whatsoever. That obviously is a financial literacy challenge, right? And by the way, that's not unusual. So if you don't know how much you paying in 401k fees, it's purposeful, right? It's opaque at best.
Bobbi Rebell:
Yes.
Josh Robbins:
For the first 30 years of the 401k's existence — it started in 1983 — up until 2012, they didn't have to tell you how much they were charging, how much they were extracting from your accounts. It's crazy. There's no disclosure.
Bobbi Rebell:
Right, but now they do. So, how specifically can people find out what the fees are? And how do you know if it's the right amount? Because it's okay to pay a little bit. I mean, people that are running it should get paid, but how do you find it out, and how do you know if you are paying too much?
Josh Robbins:
Great question. So now, they issue this thing called fee disclosures. So the challenge is they're very long and kind of opaque. But you as a participant, if you're on a 401k plan, you should request a copy of your fee disclosure, from whoever your current provider is, and they have to provide it to you. And then I'd start to do a little bit of archeology and take a look at that and uncover those fees. Now, we do that as a free service, which we can talk about later. But the point here is that you've got to uncover the fees, and I would say that 0.75% or less as the all-in fee, okay?
Josh Robbins:
I'm talking about the cost of the funds, the cost of the administration, the cost of what they call record-keeping, all of those should be 0.75% or less, and unfortunately, they're more like one and a half or two and a half particularly for small business. Bobbi, you know this. You know the impact of these fees. People say, "Oh it's only 1% or a small percent." Let me give you an example. If you have two people, two neighbors, both contributing to the 401k the same amount, both get the exact same returns in the market. Okay, and both take out the exact same amount at retirement, all things being equal.
Josh Robbins:
If one has 1% in fees while the other has 2% in fees, the person with 2% in annual fees will run out of money 10 years sooner than the person with 1% fees.
Bobbi Rebell:
Oh my gosh.
Josh Robbins:
10 years. A full decade, they're going to run out of money.
Bobbi Rebell:
And we're living longer, which is a good thing, but we need our money that we worked so hard for. So you are the Chief Strategy Officer at America's Best 401k, which I also by the way talk about in my book, How to Be a Financial Grownup, and how you are disrupting the industry. So tell us specifically what you offer and how people could use that to get this information and maybe make the right decision for them.
Josh Robbins:
We just say, "Hey, look, we're going to eliminate all the middlemen, all the brokers, all the unnecessary middlemen. We're going to offer low-cost index funds only, and then we're going to add a very one transparent advisory fee." So our typical plan is like 0.6% or less, all-in for everything. So, that's what we do, and we have a website for people that don't want to go through that whole financial archeology on their own. Whether you're a business owner, or you're an employee, or you're an employee that wants the business owner to pay attention, you can go to showmethefees.com.
Josh Robbins:
Showmethefees.com is a fee checker, where we allow ... We kind of give you like a ... I'm going to call it an initial estimate, kind of like Zillow does its estimate. So we're going to do the same thing. We're going to give you an estimate in the ballpark. And then if you want to take it one step further, all you have to do is just send us that fee disclosure that you can just get from, you know, call the toll-free number of your current provider and just ask them to send it to you and then upload it to us, and we'll help you uncover those fees. What you have to understand is if you're an employee, your employer's on the hook with the Department of Labor with legal liability to make sure that the plan is set up for the sole benefit of the employee.
Josh Robbins:
So they need to look at fee savings and cost savings opportunities. Employers want to know this stuff. And you as the employee can look like the hero, if you bring them a great opportunity to save a significant amount of money, because with just like the 1% and 2% example, when you compound it out over time, these 401ks can be firing on all cylinders, and right now, most of them are kind of limping along in mud. So, there's a lot of work to be done out there. We've got a long road to climb.
Bobbi Rebell:
All right. Well good stuff, Josh Robbins. Where could people find you if they want to follow you? Social media, all that stuff.
Josh Robbins:
Yeah, I'm at jenkinsrobbins.com. J-E-N-K-I-N-S-R-O-B-B-I-N-S. And then our company is at AB401k. A-B-4-0-1-K.
Bobbi Rebell:
Awesome. Thank you so much for joining us.
Josh Robbins:
Yeah, thanks for having me. I appreciate it.
Bobbi Rebell:
Hey friends. Here's my take on the story that Josh shared with us. Financial Grownup tip number one. Josh gave me a great reminder. A responsible splurge can be a good thing. So when he first told me that he spent all of his earnings on one fantastic day with his friends, at first, I thought the lesson, from his perspective, would be one of regret, wishing he had saved and invested the money. But in fact, decades later, he still has such incredible memories of that day. He really doesn't have any regrets, so I realized my gut was wrong. Now, if you're an adult, you have financial responsibilities. You can't necessarily go blow money from your kid's college fund on a great day with your buddies.
Bobbi Rebell:
But let's put this in context. It was one day's earnings, and he was a kid. He was 11. No one was depending on him. Here it is decades later. The memories of the shared experiences are priceless. Financial Grownup tip number two. Josh talks about making time for opportunity. He has some great reminders to create time for yourself and set yourself up for financial freedom. He points out that he and his dad, Tony Robbins, often hear people say they just don't have the time. Well to Josh's point, maybe watch a little less TV. Spend less time on social media. Find the time to invest in yourself, if that's a priority.
Bobbi Rebell:
Thanks to everyone for your support. If you have not already, please subscribe. If you have a free moment, reviews, totally appreciated. I know you guys are super busy. That's one of the reasons I keep the shows short. Be in touch. I am on Twitter, @bobbirebell and on instagram, @bobbirebell1. And for sneak peeks into upcoming episodes and some behind-the-scenes info about the podcast and my guests, get my newsletter. Just sign up at bobbirebell.com. I hope you enjoyed Josh Robbins' story and that we all got a little bit 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.
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!
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