Jane King:
Deborah Owens, aka America’s Wealth Coach and creator of WealthyU literally drove down the value of her car, and actually owed money at the end of her lease. She admits she didn’t even know the difference between owning and leasing a car.
In Deborah’s money story you will learn:
-How Deborah found out she owed money on her car at the end of her lease
-Why Deborah made the decision to lease a car based solely on one piece of information
-The questions Deborah wished she had asked when she got the car
In Deborah’s money lesson you will learn:
-How she has applied the lessons from the first car she had to every future car she has owned or leased
-How she pays for and how long she now drives cars- and her advice for others
-What she learned about where it is best to finance a car
-Her car buying negotiation tips
In Deborah’s Money tip you will learn:
-How to assess big purchases like cars
-What to look for and what to ask when making those decisions
-Why car buyers need to look at more than the monthly payments
-The price of extended lease and loan terms
In my take you will learn:
-Why you need to read not just the fine print but all the print.
-Specific techniques others will use to get you to sign something without reading it first.
-The importance of paying attention to how long a loan is, and how you can save money with a shorter loan
Episode Links
Follow Deborah Owens!
Instagram @iamdeborahowens
Twitter @deborahowens
Facebook @deborahowenspage
YouTube Owens Media Worldwide
Deborah Owens website https://deborahowens.com/
WealthyU
Loan calculator links
Bankrate
NerdWallet
Dave Ramsey
Transcription
Deborah Owens:
I went over the mileage and then when I turned it in, they ding me on the mileage, they ding me on the wear and tear, and so I ended up owing them money and then I didn't have a car.
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, this is a story about learning to read. As in read what you are signing and understand what is in the document. Sounds pretty basic but I think if we get a little honest here, we're all going to admit that we don't read everything we sign. I mean, good for you if you do. I own a condo, for example, I admit at the closing we sat there for hours signing endless documents, I did not read them all, I trusted my attorney so I'm guilty on that one, hopefully everything is fine, seems okay for now. Deborah Owens is known as America's Wealth Coach and she is the creator of WealthyU. She is also someone that we are going to learn a lot from. Here is Deborah Owens. Deborah Owens you're a Financial Grownup, welcome to the program.
Deborah Owens:
It's such a pleasure to be here Bobbi.
Bobbi Rebell:
And I am so glad to have you here. First of all, your moment that you're going to talk about is a good one and a dilemma that so many people have these days, but before we get to that, I want to ask you to tell us a little bit more about your new project. Because we met when you were doing a radio show but now you are focused fully 100% on WealthyU.
Deborah Owens:
Yes, I am. My journey has been quite the journey in that I really started out in the financial services industry as an advisor and then went on to be in management. And I was previously with a very large company, Fidelity Investments but it is through that experience that I really found what I was really good at. And that was demystifying the financial markets and making it easy to understand for the layman.
Bobbi Rebell:
Right. So tell us about WealthyU.
Deborah Owens:
So, WealthyU is an extension of that. It was really taking what I loved to do and that was educate people and give them insight around investing and now WealthyU allows me to scale that competency.
Bobbi Rebell:
Tell us about your money story that you brought with you because it has to do with a very common decision that so many of us make when it comes to how we're going to get where we're going, our cars.
Deborah Owens:
Yes. Well, as I reflected on this, I believe that the worst financial decision I ever made was to lease a car. Like many people, I was young and I wanted to get off of that. I had this really kind of hootie Mustang that one of my cousins was so angry for me buying because it was a stick shift and when you're learning that's the worst thing you can buy. But long story short, I had a friend he worked at a dealership and he said, you can get this great-
Bobbi Rebell:
Oh no, it's an old friend's story. Okay, go on. Sorry.
Deborah Owens:
That great car for a little bit of money that you can afford. I fell in love with this wonderful little 200 in excess and it had a computer in it and it talked and it had everything you could possibly imagine. And then two years later when I turned that car in-
Bobbi Rebell:
Wait. Did that you were releasing it, not buying it? Did you fully understand?
Deborah Owens:
All I loved about-
Bobbi Rebell:
You just knew the monthly payments?
Deborah Owens:
Yeah, I loved the monthly payments. I mean, all I was focused on was could I afford this each month, which is how most of us are sold cars that way or even our mortgages are sold that way. So, I could afford it, so I didn't really care. I didn't really think about what would happen when I wanted the next car. And so of course I decided two-year lease and I went over the mileage and then when I turned it in, they ding me on the mileage, they ding me on the wear and tear and so I ended up owing them money and then I didn't have a car. And so I was right where I started before I got the car. And that taught me a very good lesson.
Bobbi Rebell:
Wait. So, just to be clear, so not only did you not have a car at the end of the two years. I think a lot of people don't realize. They think if you lease a car, yes you lose out on owning the car at the end of the lease but you actually owed money to the dealer. Can you just explain how that worked?
Deborah Owens:
So, when you lease a car, you have to stay within a certain number of miles each year.
Bobbi Rebell:
So that is something in the contract that you didn't know to look for and therefore didn't read. So, people if you're going to lease the car, you need to look for it and know what it is, right?
Deborah Owens:
Yes. And make sure ... Of course, when they ask me what the estimated mileage that I would have per year, I didn't know what to tell them. I said, "Well what's the minimum amount?"
Bobbi Rebell:
Looking back, what is the lesson that you want to share with our listeners about this money story?
Deborah Owens:
Well, the moral to the story was, if it sounds too good to be true, it usually is. The lesson I learned from that really was A, I really wanted to minimize car payments and I wanted to own that car when I was finished with it. So, since then every car that I have purchased has not been brand new, I've either paid for it in cash or put a large down payment on it and I have driven my cars a minimum of 10 years.
Bobbi Rebell:
Okay, good. And you read the contracts too now.
Deborah Owens:
Absolutely. Know what you're getting into. And the other lesson that I learned, rarely do I finance a car through a dealership. Typically, I'm going in, I've already called my credit union to figure out what is the best loan terms I can get and I go in. I don't tell them I'm not going to finance through them but once I've gotten the price that I feel I want, then I tell them thanks I'll have my credit union call you and we'll seal the deal.
Bobbi Rebell:
I'm sure they're thrilled.
Deborah Owens:
Well, the less they know the better.
Bobbi Rebell:
I want to get a personal finance tip from you Deborah Owens.
Deborah Owens:
The tip that I have for anyone is when you make any kind of financial decision, really look at the long-term impact of that decision. And so the example that I would give, if we were to look at that car, don't just look at what your monthly payments are going to be, look at the total terms of the loan and based on the information that they're giving you, what is the overall cost of the car? What are you paying to own it. I think so often, we're sold things based on the monthly payment and we don't really recognize the overall cost of that financial decision.
Bobbi Rebell:
So always actually run the numbers and think about whether it fits into your long-term goals.
Deborah Owens:
Absolutely. Count the cost is the point I'm making. If you count the overall cost, it's going to cause you to really think about that decision. For example, if you're buying a $20,000 car and let's say you're financing it even at 4%. And what we're seeing is that the way people are qualifying for more expensive and luxury cars is they're extending the payments. The average term used to be four years, now the average term of a car has gone up to six or seven years and some people are paying upwards of 7 or $800 a month. The cost of extending a loan from four to seven years is huge and you're paying thousands of dollars. And the tip there is typically, if you have to extend the term of a loan beyond four years on a car, you probably can't afford it.
Bobbi Rebell:
Truth spoken. All right, and we'll all keep looking out for WealthyU and that app coming and you can check it out on Kickstarter.
Deborah Owens:
Thank you so much Bobbi.
Bobbi Rebell:
I liked this topic because it related not only to one of our biggest budget items, at least for many of us, which is a car or some mode of transportation, but also to anything that involves signing on the dotted line. Financial Grownup tip number one. We always hear, read the fine print. But Deborah admits not only did she not read the fine print, she didn't read any of the print. You also have to read the big print guys. Deborah wasn't even clear on whether she was buying or leasing, she was just all about those monthly payments and it does matter. We all think that way, can we afford the monthly payments. But it also pays to take a step back and think about what you're paying in total.
Bobbi Rebell:
For example, she didn't even know whether she would be keeping the car at the end of the lease. She seems to think that she would have the car at the end of the lease and she was certainly taken aback by the fact that she owed money. She didn't really understand what she had signed up for and if she had, maybe she would not have gone over the mileage limit or she might have made sure that she paid a little more upfront and had a higher mileage limit. She would have had more leeway. Really, Deborah just wanted to get in the car, she wanted the keys and she was going to sign it.
Bobbi Rebell:
So, anything you are signing, read it. Don't let someone rush you into signing something that you haven't read or aren't aware of what is in the document. So, for example, one phrase to look out for that someone might say to you is, it's all standard, it's what everyone signs, it's the same thing. But you know what? You're the one on the hook. So, especially in this case when you're buying a car, go through and take the time to read it, make them wait a moment, patience is key, it'll all be good but know what you've locked yourself into. And make sure that you're okay with it.
Bobbi Rebell:
Financial Grownup tip number two. Think carefully about the length of a loan, how much time it involves. So Deborah talked about how car leases are getting longer. For homes, this is also happening. This standard has always kind of been 30 years, now some people even are getting 40-year loans. But as many financial experts will point out, if you can swing something like a 15-year loan, which will have bigger payments, you can not only cut the time you are making payments, so you'll feel good, you'll have no overhead of that big mortgage payment, you're also going to cut the total amount that you pay in interest and that ultimately will make the house or whatever it is that you bought cost you less. It brings down the total cost and it's a good thing if you can swing it.
Bobbi Rebell:
I'm going to leave some links to loan calculators in the show notes and you guys can play around with the numbers that apply to your situation and figure out what would work for you. Friends, if you have not already hit that subscribe button so you don't miss any upcoming shows, please do so. Also continue to spread the word, tell your friends, share our posts on social media, share this episode on social media if you enjoyed it or other episodes. I'm loving the DMs that you guys are sending me and don't forget you can suggest future guests if there's someone you want to hear from, I'll try to get them.
Bobbi Rebell:
And follow me on Twitter @bobbirebell, Instagram @bobbirebell1, my author page on Facebook is Bobbi Rebell. And to learn more about the show and get on our newsletter, visit my website bobbirebell.com/financialgrownuppodcast. I hope you guys feel ready to make that big purchase with your eyes open after hearing Deborah Owens great story and that we all got 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.
Stefanie O’Connell had stars in her eyes but no cash in her bank account. So she pivoted her passion for drama into a more profitable profession.
In Stefanie’s story you will learn:
-The challenges of her seven years as a professional actress
-How the recession left her unemployed half way around the world
-The harsh financial realities of the entertainment business
-The creative ways Stefanie handled her finances, including roommates, while she traveled as an actress
-Her advice on balancing passion with paying for the life you want
-Why she pivoted to become a personal finance expert
-The tools she uses to manager her own money
-How to build a lifestyle you love while still following your passion
-The two big fairytales she says millennials need to get over
-Her take on how the financial challenges millennials face are different from previous generations
In Stefanie’s lesson you will learn:
-How to own your income potential
-Ways to build your skill sets and find new market opportunities
-How to maximize income growth
-How to transition your passion skill set into one that is also profitable
In Stefanie’s money tip you will learn:
-Her online shopping strategy
-How she uses online cash back portals like ebates
-The savings you can get from browser extensions like Honey that automatically search for coupons and promo codes
-Ways to stack your savings using cash back credit cards
In my take you will learn:
-Why I believe passions should usually not be connected to income
-The benefits of taking the pressure off earning money from your passion
-The danger of having unrealistic expectations from side hustles
-Strategies to own your future by going beyond your credentials like academic accomplishments
Episode links:
Stefanie’s book The Broke and the Beautiful Life
Ebates
Honey
You can find Stefanie at:
Stefanie O’Connell.com
Get Stefanie’s free Cash Confidence challenge
Sign up for Stefanie’s All In DIY class!
Stefanie’s facebook group: https://www.facebook.com/groups/661192974055824/
Stefanie’s book The Broke and the Beautiful Life
Instagram @stefanieoconnell
Twitter @stefanieoconnell
Facebook: Stefanie OConnell
Stefanie O’Connell had stars in her eyes but no cash in her bank account. So she pivoted her passion for drama into a more profitable profession. In this Financial Grownup podcast episode you'll learn about Stefanie's challenges of her seven years as a professional actress, her advice on balancing passion with paying for the life you want, and how to maximize income growth. #Income #LifeLessons #Author
Transcription
Stefanie OC:
The reality hit me that this pursuit of my "passion" that everyone says, that isn't always the case because there's more to your life than just what you do for a living.
Bobbi Rebell:
You're listening to Financial Grown Up with me, certified financial planner, Bobbi Rebell, author of How to be Financial Grown Up. 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 grown up, one lesson, and then, my take on how you can make it your own. We got this.
Bobbi Rebell:
Hey, friends. How many of you have been told, "Follow your dreams. The money will come. Just trust in yourself?" In most cases, you were lied to. Former struggling actress turned millennial finance expert Stefanie O'Connell is here to set you straight. She is also the author of The Broke and The Beautiful book, and she also has a thriving community over at her website, stefanieoconnell.com. I love her story because it will put you on a path to prosperity and, hopefully, more happiness doing what you really are passionate about when you're not earning money. Here is Stefanie O'Connell.
Bobbi Rebell:
Stephanie O'Connell, author of The Broke and Beautiful Life and millennial money expert, you're a financial grown up and welcome to the program.
Stefanie OC:
Thank you for having me, Bobbi.
Bobbi Rebell:
I want to congratulate you on your new venture, All In. Tell us about it.
Stefanie OC:
Oh, it is a course specifically designed for millennial women who want to feel as confident with their money, as they do in the rest of their lives. I know too many women who are really successful in their careers, really successful in their personal relationships, and all these different facets of their lifestyle, but when it comes to their money, they feel really out of control, so I built this 10-module step-by-step blueprint to help those ambitious women match their cash competence with their lifestyle ambitions.
Bobbi Rebell:
Perfect, and we will put a link to where you can find that more in the show notes. I want to get right to your story because it's so relatable and it's something that is so relevant to young people figuring out where they want to put their energy and where they want to earn their money. Tell us your money story, Ms. Stefanie.
Stefanie OC:
Okay. I'm going to try to keep it concise here. It's been a bit of a journey. But, essentially, it started in college when I decided I was going to pursue acting professionally. Now, I did get a degree in psychology as well as like backup plan, my responsible, quote unquote backup plan, but the plan was to be a professional actress and, believe it or not, I was. I actually was for seven years a professional actress, but it was extremely difficult, primarily because I worked in theater, not film, so the paydays are not the same.
Stefanie OC:
I also graduated in 2008, which was the year of the recession. So even though I got a great job right out of school on like a dream tour of Asia, understudying one of my professional musical theater idols, the producers flew out about halfway through the tour, and there were, like, "Oh, you know, there was a global recession. We're going to send you all home." [inaudible 00:03:22]-
Bobbi Rebell:
Just like that?
Stefanie OC:
Yeah just like that, so my bubble just got-
Bobbi Rebell:
So you basically got laid off in the middle of the world, in the middle of nowhere.
Stefanie OC:
As a actress, which is the most ... it's the first thing to go, right? Entertainment budget, especially for something like live theater that's really expensive is the first thing people cut out. So the industry was really in bad shape and the first job offer I got after was to play three leading roles in three musicals for $225 a week. And I was like, "Okay, that is not sustainable. Yeah. This is my profession it is how I support myself." So I had to turn it down. And for the next five or six years after that I kept coming up against this reality of okay, I'm doing what I love, but it's not paying the bills. It's not sustainable, it's not consistent, when I do get work it's a huge win if I'm making $500 a week, I live in New York city. That is not enough money to sustain even a very basic lifestyle.
Bobbi Rebell:
Yeah, how were you living? Did you have roommates? What was going on there?
Stefanie OC:
Oh yeah. So I've always had roommates. I've never not had roommates, so I'm 31 years old.
Bobbi Rebell:
Including now.
Stefanie OC:
Including now. I live my boyfriend now, so it's a little different.
Bobbi Rebell:
That's a good kind of roommate.
Stefanie OC:
Yeah it's a better kind of roommate situation. And then I also sublet my apartment a lot. So one of the things about being an actor is I was on the road a lot, so I was able to sublet my apartment so I didn't have the expense of rent which was a savior for me. And so even if I wasn't making a ton of money, maybe two, three hundred dollars a week, if I didn't have a $1500 a month cost of rent that made it a lot more sustainable to pursue it. That said, I would come home at the end of my contracts and still need to pay rent.
Stefanie OC:
So it just didn't work. The numbers didn't add up. And so what happened for me was there was just this huge sense of frustration and the reality hit me that this pursuit of my passion, quote unquote, that everyone says if you do that everything will work itself out, just that isn't always the case when it comes to your money. Because there's more to your life than just what you do for a living. There are other goals you have, there are the trips you want to take, there are the weddings you want to have, there are the children and family you want to start, there's the house you want to buy. And that costs money. And I had this realization that if I continued doing what I was doing I was never going to create enough capital through acting, through this pursuit of my passion to do all these things that I cared about in the rest of my life.
Stefanie OC:
And so I really started digging into personal finance because I wanted to understand, okay, how do I take the little money I have and maximize it and then step two, how do I bring more in? So that I have more to maximize and that really set me on this journey of personal transformation to owning my own cash confidence, as I like to call it, through tracking my spending, through earning more, through learning to invest, through saving and tracking that all on my blog at stefanieoconnell.com and then finding a community of other people in similar situations, millennials working through the recession who were really taught do what they love and are facing this reality of, well what if that doesn't pay the bills? And how do I still build a lifestyle I love, even if it's not necessarily the way I thought it was going to look like?
Bobbi Rebell:
Do you feel that you and lot of millennials were sold this fairytale that if you follow your passion the money will come?
Stefanie OC:
Absolutely. I think there are two big fairytales. That one and then the second one is if you get a college degree you're set for life. Because I think you know, for my parents for example, they graduated college, they did get their MBAs, but from there it was smooth sailing right from graduation to retirement. There was great salaries, there were income increases, there was healthcare, there was retirement benefits. I've never had any of those things. I've never had employer sponsored health care, I've never had a 401K plan. So it's so much more, even if you're not necessarily pursuing your passion, even if you're just trying to make a living, for so many young people today there isn't that inbuilt infrastructure that takes your hand and paves the way for you from graduation to retirement.
Stefanie OC:
So much of the onus now is on the individual, and that's why I really started writing about this stuff, because I found that so much of the personal space was like, "Contribute to your 401K." And meanwhile, I'm surrounded by people who've never even had the opportunity to have access to a 401K. So that's why I write about what I write about.
Bobbi Rebell:
All right so you are 31 years old now. What is the lesson from that journey, for our listeners?
Stefanie OC:
Yeah, so for me the biggest lesson is that you are the primary driver of your own income potential. I think we have this idea that our degree or our experience or our skills or our lack of any of those things is what dictates what opportunities are available to us, but the reality is it's us. It's our willingness to continue putting ourselves out there, building our skillsets, finding new market opportunities and really putting ourselves in the drivers seat of our own earning potential that really leads to maximal income growth. And I think that it's so important because we too often make excuses for ourselves for why a six figure salary is not available to us or why a one million dollar net worth is not available to us.
Stefanie OC:
And we have to [inaudible 00:09:04] ownership of those things, before we can start making progress to actually achieving them.
Bobbi Rebell:
And it may not be in the glam career that you envision, that may be a side thing.
Stefanie OC:
Yeah. And the other thing is I think there's this all or nothing mentality that's really destructive. I'm not professionally acting anymore, but I love what I do. And one of the big things I do is I give talks, I go on camera a lot, I do a lot of media appearances and I feel like I get to use that skillset from acting that I so enjoyed [inaudible 00:09:36] performance all the time, but now I get paid ten, 20, 30 times what I used to make. But the fact is I would have never found this outlet if I had never pivoted temporarily to something a little less glamorous like freelance writing and blogging about money. Right?
Stefanie OC:
So we have to remember that it's not like you're abandoning this thing forever, it's just about trying a new approach so that you can have a lifestyle you love and not just a career you love.
Bobbi Rebell:
Give us a money tip, something specific and actionable that everyone can do right now.
Stefanie OC:
Okay, so this one is a little bit more simple, a really quick win that you [crosstalk 00:10:15]-
Bobbi Rebell:
We love simple.
Stefanie OC:
Can start with right now.
Stefanie OC:
There's a lot of shopping online, I personally do most of my shopping online because anytime I walk into a retail environment it's a 20 minute wait, it drives me crazy. So one of the ways I save, I have different ways of doing my shopping. So I will sometimes go through an online cash back portal, like an Ebates, where if you go through their portal first and then select the retailer you can get one or two or three or four percent cashback on all of your purchases. And then also downloading a browser extension like Honey that automatically searches for coupons and promo codes for you. And applies them to your order without you even having to go open up 20 tabs and search for promo codes.
Stefanie OC:
And then you can stack your savings even further by using a cash back credit card. So you know, get one percent or [inaudible 00:11:10] percent cash back on all purchases on your credit card, plus the promo code, plus the cash back from shopping through something like Ebates, you're really stacking your savings for immediate wins on all your purchases.
Bobbi Rebell:
Excellent advice, Stefanie O'Connell, millennial money expert, thank you so much.
Stefanie OC:
Thank you Bobbi.
Bobbi Rebell:
Okay friends, here is my take on what Stefanie had to say. Financial grown up tip number one, detach your passion from your income. We all spend a lot of time at our paying jobs and businesses so obviously you don't want to pick something that you don't like and you can't stand. You want to be happy, you're putting a lot of time in there, but that may not be your passion. Focus on earning the income you need to be happy in life and maybe pursue that passion on the side. It could be a side hustle, it could just be a hobby. Take the pressure off trying to earn a living at your passion. You may actually find yourself enjoying it more without the pressure to create income from that passion.
Bobbi Rebell:
Financial grown up tip number two, don't sit on your laurels just because you got a college degree. It matters a lot, but for the most part after your first job it's going to come down to you and how hard and how smart you work. As Stefanie said so well, you have to have ownership of your own future. Don't just show up at your job, really show up. Be present, try hard, do extra things that are beyond the exact job duties. Impress your boss, learn new skills. A degree is only one piece of the puzzle, you have to fill in the rest by earning it.
Bobbi Rebell:
All right thank you all for your support of the podcast, I love hearing your feedback and I truly appreciate everyone who has subscribed, rated, reviewed and shared the podcast. Please also follow me on social media. I'm @bobbirebell on Twitter, @bobbirebell1 on Instagram and of course, go to my website, sign up for my newsletter so I can keep you posted on everything going on with the show.
Bobbi Rebell:
I hope you enjoyed Stefanie O'Connell's story and her advice. I think she's terrific. Check out her website, as I said, stefanieoconnell.com, and I hope 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.
Emma Johnson, Author of The Kickass Single Mom: Be Financially Independent, Discover Your Sexiest Self and Raise Fabulous Happy Children and the force behind the Wealthy Single Mommy website shares the dramatic story of how a tragic accident led to the end of her marriage.
Then, after a total financial collapse with two children in tow, she turned it all around while building a multi-six figure self-driven business.
In Emma’s money story you will learn:
-How her so-called perfect life came unraveled with one phone call
-How Emma became financially independent after her divorce
-Emma’s money strategy for single parents
-How to find your inner strength as a single parent
-How Emma changed her mental focus and made $100,000 freelance writing
In Emma’s lesson you will learn:
-Her inspiring advice for single parents
-How to balance commitment to marriage and financial independence
-The importance of supporting other single parents
In Emma’s money tip you will learn:
-How to value all that you have
-How gratitude can help you be financially secure
-Balancing need and wants using gratitude
In my take you will learn:
-The importance of having a backup plan for life
-The best things you can do to support the single parents in your life
-Why hiring single parents can be a great business strategy
Episode Links
The Kickass Single Mom book
NY Post article on Emma Johnson
The Doctors featuring Emma Johnson
Fox and Friends
Emma’s Like a Mother podcast
Emma’s blog WealthySingleMommy.com
Follow Emma Johnson!
Twitter @johnsonemma
Facebook: WealthySingleMommy
Instagram @WealthySingleMommy
Emma Johnson, Author of The Kickass Single Mom: Be Financially Independent, Discover Your Sexiest Self and Raise Fabulous Happy Children and the force behind the Wealthy Single Mommy website shares the dramatic story of how a tragic accident led to the end of her marriage. In this Financial Grownup podcast episode Emma shares how she became financially independent after her divorce. #FinancialIndependence #FinancialFreedom #Author
Transcription
Emma Johnson:
He fell off of a cliff on a tiny island where they had no medical service and suffered a traumatic brain injury, and he was like, "You need to get on the next plane to Athens," and I had a nursing baby and I was on the plane. It was like real life. That set off the next ten years of my life.
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 gonna get there together. I'm gonna 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. Before we start this episode, I just want to thank all of you who have been sending in good wishes and supporting the show by subscribing and rating and reviewing on iTunes. It truly means so much to me, and all your help spreading the word is amazing. Okay, let's talk about today's guest. We all think that it is just not gonna happen to us because we work hard, we put together the perfect life, but then sometimes something out of our control happens and our life changes forever, sometimes in an instant. In the case of my guest, it was her husband literally falling off a cliff that put her perfect life into a tailspin.
Bobbi Rebell:
Her story will at first shock you and then inspire you. Emma Johnson is the author of the best-selling book, The Kickass Single Mom: Be Financially Independent, Discover Your Sexiest Self, and Raise Fabulous, Happy Children. I love the book so much. You can even see my endorsement right on the back cover of the book, so check it out. You may also know her website, wealthysinglemommy.com. Now, I am not a single mom, but I have to tell you, her advice is truly universal. It is about owning your decisions and being financially self-sufficient. That's for everyone. True story: when I needed career advice, Emma was at the top of my list. She gets it done. She knows what she's talking about. Here is Emma Johnson. Emma Johnson, financial grownup, welcome to the show.
Emma Johnson:
Hey, hey, Bobbi. Glad to be here.
Bobbi Rebell:
So, what is up for 2018, my dear?
Emma Johnson:
Oh, my gosh. Well, I had came off of 2017 where I watched my book, The Kickass Single Mom-
Bobbi Rebell:
Best seller, by the way.
Emma Johnson:
Best seller, and it was named by the New York Post as a must-read, and I was on The Doctors and I was on Fox & Friends and it was all really exciting. It was a very, very, very exciting year.
Bobbi Rebell:
Did you lose count of media hits? You were everywhere.
Emma Johnson:
Yeah, we did close to 200. That's pretty awesome.
Bobbi Rebell:
Oh, my gosh.
Emma Johnson:
So, it was very fun. It was very exciting and glamorous. I will not lie. And now I'm still pushing out the book, but it's onto new things. I'm actually talking to my agent this week about next book deal and pushing out what I do, which is really kind of grounded in my blog, Wealthy Single Mommy, where, as you know Bobbi, I talk about money, career, dating, sex and parenting for single moms.
Bobbi Rebell:
Which brings us to the money story that you have brought to share. It's a doozy.
Emma Johnson:
Yeah, it is. I always tell the kind of skeleton version because it is still so painful. For all practical purposes, I was a stay-at-home mom. I've always been a writer, journalist. I did a little freelance writing when I had my baby, and I was married. I was married to a nice person, and he made good money, and I was like, oh, this is the dream. I've got the nice guy and got the nice money. I got the nice apartment. I got the beautiful kid. And compared to growing up with a broke single mom myself, I was like, oh, I did it. I won. I won life.
Bobbi Rebell:
It'll never happen to you.
Emma Johnson:
Yeah. I was like 31 years old, like it's all good. Check, life. I did it. And (bleep) happens, and (bleep) totally happened to my family. My husband was working in Greece, and he literally fell off of a cliff. He fell off of a cliff on a tiny island where they had no medical service and suffered a traumatic brain injury. I got a call from his boss, and he was like, "You need to get on the next plane to Athens," and I had a nursing baby and I was on the plane. It was like real life. That set off the next ten years of my life now ... well, eight years. He miraculously survived. And fast forward to today, I can tell you that it was a success story. I mean, he's still struggling, but back to work. He's a full time dad. But it immediately completely destabilized our marriage.
Emma Johnson:
Next thing you know I'm pregnant again. I own that one. I own that pregnancy. And I had a baby, a completely destabilized husband, and I was totally financially dependent on him. I could just see it. I could see the whole thing. I didn't know what was happening. It was this time of complete lack of control and turmoil, but I'm like, okay, this is gonna be on me. I'm gonna have to run this whole show by myself. I just knew that. What ended up happening, we split up, and now two tiny babies. And I had gotten some nice house support for about a year. But the whole time I'm like, okay, I'm gonna take this while it's coming, but I know it's not gonna last.
Emma Johnson:
Looking back, I don't know. You know what? There's ... whether it's a higher being or an inner strength, but people have it, women definitely have it, and moms 100% have that thing, that killer instinct where it's like, "I'm making this (bleep) work." I did, and I just started making money, and I paid my bills. I took care of my kids. I put them in childcare full time, and I still spent time with them. I was like I am not missing out on this amazing time with these babies. I remember the year before I had my daughter, the second year into my freelance writing business, I was like I'm gonna make $100,000 this year. This was ten years ago, and I did it. I was making-
Bobbi Rebell:
That's a lot of money, freelance writing.
Emma Johnson:
It was, and it was just my second year in business, and then I was like, oh, wow. I started to realize how I had chosen, unconsciously, unconsciously, to hold myself back professionally and financially during my marriage because my husband ... he's progressive, liberal, feminist person, change-all-the-diapers, get in the ... He was that guy, but he was also the other guy. He's southern European and he's macho. He pulled out the chair for me at the restaurant. He was a macho dude in a lot of ways that I liked a lot. I chose that, and he chose that, and we had this unconscious, unspoken agreement between us, which was he was gonna be the man, and I was going to be the woman, and that part of that agreement meant that I would always earn less.
Emma Johnson:
When I started making more money, and it wasn't so hard and it wasn't so long, and he was saying those things about how he liked the idea of me being dependent on him, and I was like you know what? I had held myself back, and (bleep) that. I am blowing this out of the water. It was very humbling to me because I thought I knew myself, I thought I knew him, I thought I was aware. And I was ... Remember, I was making goof money. It wasn't like I was a fully dependent stay-at-home wife from the minute I met him. It was all these very subtle ways that women, I had come to understand, do hold ourselves back because it's hard. We want to be married, and we want to be engaged with men and in love and committed, but we also want to be successful and live our full selves, and that's painful. It's hard, and we're working that out. We are working that out.
Bobbi Rebell:
So, Emma, what is the lesson that you want to share?
Emma Johnson:
Just go for it because you will never be your full self until you are financially independent, and that doesn't mean you can't be in a partnership and that you have collective investments and a collective life, but knowing that you can always leave, knowing that you can always take care of yourself and your babies without anybody else, without your parents, without a man, without the government. That you can do it on your own is power that you will never experience any other way. If you're there, own it and love it and pull other women up with you. Maybe you're not quite there yet, but recognize in yourself that that is important.
Bobbi Rebell:
So, give us a money tip, something that you use in your everyday life, something very specific that everyone can incorporate in their lives right now.
Emma Johnson:
Gratitude. Make it part of the fabric of your life. You're eating something; people don't have something to eat. Your apartment is warm when it's freezing outside. You have babies that you can hug and cuddle when other people are dying to have a baby and they can't. You are so blessed and grateful, and if you are constantly feeling that and recognizing it, it's almost impossible to buy frivolous things or overspend or take for granted your money because you are so grateful and a really responsible steward of your money.
Bobbi Rebell:
That's really good advice because we all tend to focus, I know I'm certainly guilty of this, of what we want, what we feel we need, and need is very discretionary. What we perceive as a need ... We really have first world problems here. We don't need to go to Whole Foods for another grocery shopping trip or whatever. We're good. I have heat in my apartment. My children are healthy. My husband's healthy. We're all good, so we all have to have a little more gratitude. Thank you so much.
Emma Johnson:
Thank you. This is wonderful.
Bobbi Rebell:
Okay, friends, here's my take on what Emma had to say. Financial grownup tip number one: have a life plan B. We all have visions of whatever we think we want. In Emma's case, it was a traditional family where the man makes more money and the women earn less. But life is, as we know, super messy. We listen to stories like Emma's and we sympathize. But I'm telling you, very few newlyweds out there think this could happen to them. Whatever they perceive as their ideal, we all believe we're gonna get there and hopefully we all will, but unexpected things happen, not just a divorce, but even a spouse losing a job. Things happen. You suddenly have to be the one driving the family income when you don't expect it, and, again, that could even be gender neutral, so important to be paying attention. You should not spend your life, of course, dwelling on that. You should live your life, but it can happen.
Bobbi Rebell:
I remember I was engaged in my twenties hearing that a friend of a friend was getting divorced. She'd only been married a couple of years, and I could thought, oh, that can never happen to me. And then you know what? It did. I was divorced by age 30. I didn't have kids, but it was still pretty unexpected and pretty complicated. It changed my whole view on the fact that I now needed to know that even if I wasn't always the primary breadwinner, it was something that could happen and I needed to have a plan. Now, that plan can be a step up in your earnings. It can also be being able to know that you can downsize or shift resources, maybe move to a less expensive area, whatever. But don't believe that it will never happen to you. It can happen. Live your life, though. Don't obsess.
Bobbi Rebell:
Financial grownup tip number two: reach out to your single mom or dad friends and offer to help in some way. Maybe babysit their kids while they're going on a job interview, or need to get some work done for a client or for their job, or just so they could have a little break. You could set them up on a date, maybe treat them to a day out, whether it's a spa day, going to a show, or a basketball game. Whatever they're into, whatever you're into. Just reach out. Include them in a dinner party, even if everyone else is a couple, or just call and ask how they are, how you can help them out. If you are an employer, consider hiring a single mom or dad. They are going to be incredibly efficient and hard working employees. You will get amazing value by having them on your team. We are all in this together.
Bobbi Rebell:
And single moms, if you are one of the few that have not already read Emma's book, please check it out. Kickass Single Mom. It is amazing; complete with my blurb on the back cover. And, of course, check out her website, wealthysinglemommy.com. She also has a Facebook group that is flourishing and a tremendous resource. Thank you all for listening to this latest episode of the Financial Grownup Podcast. The support we have been getting has been the best. I am so excited to keep bringing you stories and lessons from my financial grownup guests. If you like the show, please subscribe, take a moment to rate and review the show. Anywhere is good, but the best place for people to discover us is through Apple Podcasts or iTunes ratings and reviews. Those really help. And please consider telling your friends and sharing on social media as well. I always love hearing Emma's advice. I hope you did too, and that we all got 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.
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
Transcription
JJ Ramberg:
The most socially responsible thing you could do is make sure your employees have a job tomorrow and treat them well, whatever that takes.
Bobbi Rebell:
You're listening to Financial Grownup with me, certified financial planner Bobby Rebell, author of How to be a Financial Grownup. You know what? Being a grownup is really hard especially when it comes to money, but it's okay. We're going to get there together. I'm going to bring you one money story from a financial grownup, one lesson and then my take on how you can make it your own. We got this.
Bobbi Rebell:
Wise words from this episode's financial grownup. She is JJ Ramberg, host of Your Business on MSNBC. JJ has been talking to small business entrepreneurs for more than a dozen years. JJ also hosts the Been There, Built That podcast, and she has a few pretty significant side hustles that she herself has been building including a fantastic plug-in app called Goodshop and a young adult book project with her sister that she will tell us about. Here is JJ Ramberg. JJ Ramberg, welcome. You are a financial grownup. Great to have you.
JJ Ramberg:
So happy to talk to you, Bobbi.
Bobbi Rebell:
You have your own new podcast and a new book to talk about. Tell us more.
JJ Ramberg:
I do. There's a lot going on. We've recently a few months ago launched our podcast Been There, Built That. Basically, I've had this show on MSNBC for 12 years called Your Business.
Bobbi Rebell:
Longest running show, right? Is that the longest running show on business?
JJ Ramberg:
It's the second longest running show after Chris Matthews, after Hardball. I know.
Bobbi Rebell:
That's the longest business show.
JJ Ramberg:
Yeah, for sure. It's crazy. I think it's the second longest running female anchor.
Bobbi Rebell:
Awesome.
JJ Ramberg:
Maybe first female, I don't know.
Bobbi Rebell:
Let's just go with first. Let someone correct us.
JJ Ramberg:
Exactly. I've had this show on MSNBC for 12 years about growing businesses. We just launched the podcast because on this show I get three minutes to talk to people. I always get to talk to them much longer in the green room and at coffee. The podcast is my chance to now get those conversations out to our audience too.
Bobbi Rebell:
You also have The Startup Club.
JJ Ramberg:
The Startup Club was my side passion project that I did with my sister. It's a fiction book for kids about kids who start businesses. It's a typical book for grade school kids, like two best friends start a business. The mean girl in school copies them. They get in a fight. The brother gets involved, all this stuff. Through it, they learn what's the difference between profit and revenue, and what is marketing, and all kinds of business things, which tap into kids' general interest at this age anyhow.
Bobbi Rebell:
Kids are curious. My son is very curious. I have a ten-a-half-year-old. He is very curious about business. I am definitely going to check that out with him. You also, speaking of kids, when you were a kid, you loved ice cream. It was memories of Ben & Jerry's that inspired your money story that you're going to share with us.
JJ Ramberg:
It was. When I was growing up I was really taken by the idea of socially responsible businesses. In those days it was Ben & Jerry's, all the good that they were doing, and The Body Shop when it first started, and Patagonia. I thought when I'm older, even just as a kid, I thought I want to do something that is business because I come from a family of business owners and incorporates doing good. Cut ahead many, many, many years, and my brother and I came up with this idea called Goodshop, which was we partnered with thousands of stores. You'd shop just like you normally would. We'd get you all the best coupons and deals for those stores, but you can select your favorite cause no matter what it was. A percentage of what you spend goes back to that cause.
Bobbi Rebell:
That's awesome. Now there are extensions.
JJ Ramberg:
Now we have the Gumdrop extension. You don't even have to worry about putting the coupon in or choosing your cause every time. You just go to getgumdrop.com and add the extension. It automatically puts the best coupon in at checkout. If you select a cause, a percentage of what you spend will go back to that cause. We've raised nearly $13 million for causes so far.
Bobbi Rebell:
Amazing. What is your lesson for want to be entrepreneurs who also want to be doing good? How do you actually execute this? This is an 11-year overnight success.
JJ Ramberg:
Twelve, actually.
Bobbi Rebell:
Yes, 12. Oh my gosh, 12.
JJ Ramberg:
Yeah. It's interesting. I get this question a lot from people. As you can imagine, because of the show, I meet so many founders and people who want to start companies. Because my company is socially responsible, I get the question. My thought is Goodshop was born originally on this premise of let's give away our revenue when people choose causes. It was baked into what we were doing. That's why we launched it in the beginning, but not every company is like that, and not every company needs to be. You got to think of social responsibility not just about giving money away. It can be about treating your employees really well. The best thing, I think, the most socially responsible thing you could do is make sure your employees have a job tomorrow and treat them well, whatever that takes. Yes, if you can take time off to volunteer, or if you can donate part of your profit, that's fantastic, but I don't think you need to feel the great pressure of that right when you're starting up, if you don't have time.
Bobbi Rebell:
I feel like there is pressure for people to say, "I'm giving this percentage to charity." In fact, by employing people, you are helping.
JJ Ramberg:
Yeah, and look, when you're starting out, you know this, you don't necessarily have money to spare to give away. That money needs to go back into building your business.
Bobbi Rebell:
Solvency is important.
JJ Ramberg:
You have to think about what makes sense for your company at this particular time. Look, it's changeable. As you grow, things can change. I think treating people well and keeping your doors open, you can think of that as socially responsible.
Bobbi Rebell:
Give me a money tip, something that you and your family do that our listeners can implement right now.
JJ Ramberg:
I have recently started categorizing all of what I spend, which I think is so fun. I know some people think that is so horrifying.
Bobbi Rebell:
That's fun? That's not fun.
JJ Ramberg:
I know. It's so funny. To most people, that sounds awful. To me, I take such great pleasure in seeing exactly where my money is going. My money tip, if it at all sounds fun to you, go ahead and do it also. There are all kinds of systems online.
Bobbi Rebell:
Are you using an app?
JJ Ramberg:
I use a proprietary one, but there are lots of them out there that will help you do this.
Bobbi Rebell:
Thank you, JJ.
JJ Ramberg:
Good to talk to you, Bobbi.
Bobbi Rebell:
Here is my take on what JJ had to say. It has a lot to do with her refreshing and realistic on business and being socially responsible while you build a business. Financial grownup tip number one, as JJ says so well, when starting a venture don't get caught up in making sure that you give, for example, a certain percentage of profits to charity, or give employees days off to volunteer. If it works for your business plan, that's great. The truth is if your business provides a service that is helpful to your clients, providing value for them and also can provide a solid and stable job for your employees to support their families, that is good too. A solvent, profitable business should be your priority.
Bobbi Rebell:
Financial grownup tip number two. From the consumer perspective, for things that you are already buying, see if there's a way that you can buy things that you're already buying, and have a percentage of what you are already paying go to a cause that you care about. For example, you can start with Goodshop's new Gumdrop extension. You could also, for example, shop with retailers that donate a percentage to charity like Amazon Smile, which has the same products as Amazon, but donates half of one percent of your purchase to the charity of your choice.
Bobbi Rebell:
Also, keep an eye out for themed promotions at places you already shop where they will give a certain percentage to charity for that time period. Separately, you can go directly to charities and even schools and ask if they have any partnerships with retailers. Very often you can put a code in and, for example, enter through a website portal with retailers. Then that organization will get a cut of what you spend. I also like to shop at school auctions where I can buy things that I probably would have bought anyway, and you can support the school or the cause. The website I use for that is called biddingforgood. You can bid on items for any school or organization there. You don't have to be affiliated with that organization or school. I've bought everything from kids' classes to theater tickets, even a yoga mat, all through bidding for good often at lower than retail prices, in fact. Even though you're bidding, it's not always a higher price. Sometimes you actually get a good deal for yourself. Of course, the money goes to the school or the organization, so it's all good.
Bobbi Rebell:
Thank you so much for listening to this episode of the Financial Grownup podcast. If you like the show and want to hear more, please help support us by subscribing and then rating or reviewing on iTunes or Apple Podcast. That is the way more people can hear about us. Also, please share on social media or just tell a friend. I hope you enjoyed hearing JJ's story and advice and that we all got one step closer to being financial grownups. Financial Grownup with Bobbi Rebell is edited and produced by Steve Stuart and is BRK Media Production.
In this episode, millennial financial literacy advocate David Grasso, of Gen FKD and Bold Business shares the story of his Cuban immigrant mother and how at age 9 she found herself in charge of the family finances after an unexpected accidental death in the family.
In David’s story you will learn:
-How David’s heritage as the child of Cuban immigrants shaped his focus on finances
-David’s strategy for not just making money, but keeping more of it
-The strategies David learned from his mother, who took over her family finances at age 9
-How talking about money at the dinner table can instill children with financial values
In David’s lesson you will learn:
-Why getting a raise is not the solution to your financial problems
-David’s savings plan strategies
-How to be a defensive consumer
-The dangers of automatic bill payments
In David’s Money Tip you will learn:
-Why he focuses on the bigger purchases in his life
-How to be a defensive consumer
-How David uses the Trim app
In my take you will learn:
-How to fight for your price.
-The true story of how I paid $25 for a prescription where one quote I got was for $354!
-How to use online coupons for prescriptions
-Why the price you pay through insurance is not always the lowest
-When to pay attention to big expenditures vs when to acknowledge that little things like latte’s do add up and become big things over time
Links from this episode
Gen FKD @genfkd
Bold Global @boldglobalmedia
BoldTV
Bold Business
Bookstr
David Bach
Trim app
Check out David Grasso’s articles GenFKD here: http://www.genfkd.org/author/david-grasso
Find David’s Bold Media page at http://bold.global/david-grasso
David is also a content creator @purehouselab
You can follow David
Twitter: @grassroots
Instagram: @grassoroots
Facebook: David Grasso-Ortega
In this Financial Grownup podcast episode, millennial financial literacy advocate David Grasso, of Gen FKD and Bold Business shares the story of his Cuban immigrant mother and how at age 9 she found herself in charge of the family finances after an unexpected accidental death in the family. We also discuss why getting a raise is not the solution to your financial problems and the dangers of automatic bill payments. #Money #MoneyTips #MoneyGoals
In this Financial Grownup podcast episode, millennial financial literacy advocate David Grasso, of Gen FKD and Bold Business shares the story of his Cuban immigrant mother and how at age 9 she found herself in charge of the family finances after an unexpected accidental death in the family. We also discuss why getting a raise is not the solution to your financial problems and the dangers of automatic bill payments. #Money #MoneyTips #MoneyGoals
Transcription
David Grasso:
"Oh, if I only got a raise I would have more money. Oh, if I only made this much more I would be stable." It never works that way.
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. 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 grown up, one lesson and then my take on how you can make it your own. We got this.
Bobbi Rebell:
So I think we've all had that feeling where if we just had that one little raise or that one more client, we would feel less stressed out financially. I know I've of course felt that way, and so has my friend David Grasso. He's a millennial financial literacy advocate. He's also the editor at non-profit GenFKD. And the anchor of Bold Business where I have had the pleasure of co-hosting with him.
Bobbi Rebell:
David is also the child of Cuban immigrants who came here just after the revolution, their experiences really shaped his focus on not just making money but also on keeping it. He grew up first in a little Havana area of Miami. And fun fact, he later moved to the Disney inspired town of celebration, Florida. Here is David Grasso.
Bobbi Rebell:
David Grasso, you are a financial grown up. Welcome to the podcast.
David Grasso:
I hope I'm a financial grown up by now. I'm a spokesperson for a financial literacy non-profit, Bobbi.
Bobbi Rebell:
You are. So tell me what is new with GenFKD and both business, and of course campus fellows for 2018
David Grasso:
You know, we've expanded our reach, GenFKD is a non-profit dedicated to helping millennials succeed in the new economy. We have a presence on over 30 college campuses. And one of our biggest news items right now is that we jut completed our first four credit class at SUNY Purchase, so that's a state university of New York Campus right outside of New York City.
David Grasso:
On my front, we continue to have the Bold Business Show on BoldTV every week, as well as Bookstr business on one of our partner organizations Facebook page, Bookstr where I interview authors who write about entrepreneurship.
Bobbi Rebell:
And they are super interactive. So everyone should try to watch them live on Facebook. You are on Tuesdays at 9:00 AM correct? With Bold Business.
David Grasso:
Yes. And Thursdays 1:00 PM for Bookstr business.
Bobbi Rebell:
And you can always catch them after. But LIVE is always a lot of fun 'cause then you can literally interact directly with the host. And I've even gotten to be a guest host on the show. So definitely check it out and-
David Grasso:
And we'll have to be back soon Bobbi, we're ready to have you back already.
Bobbi Rebell:
Yes, any time. So David, you brought with you a really compelling money story that has to do with your family's immigration to America from Cuba.
David Grasso:
Yeah. You know my family unfortunately after the Cuban revolution was on the wrong side of things. So they made their way to New Jersey right here outside of New York City. They quickly learned that this was the land of opportunity and that they could get ahead really fast. Unfortunately my mother had to grow up very fast because my grandfather died in a factory accident. And one of my mom's most profound memories from her childhood was having to go ask landlord how much the rent was.
Bobbi Rebell:
How old was your mother?
David Grasso:
My mother was about nine years old.
Bobbi Rebell:
She was nine years old when her father passed away and she was taking charge of the family finances?
David Grasso:
Yeah. And if you know anything about my mother, she's a financial wizard. And she's the type that she constantly talks to us about money. And really the most profound lesson that she passed on that came from her father and our ancestors who came to Cuba penniless from Spain and Italy was that making money was never going to be hard. It was hard to hold on to but ... And I can't tell you how often at the dinner table we talk about how we're going to maintain our family's wealth. And how we can save and how we can be defensive consumers to make sure that money isn't coming out of our bank account that shouldn't be going out.
Bobbi Rebell:
So what is your lesson then to our listeners? How can they apply this to their own lives?
David Grasso:
You know, a lot of people focus on making money. "Oh! If I only got a raise I would have more money. Oh! If I only made this much more I would be stable." It never works that way. The lesson I have for the listeners is no matter how much money you make, you can find a way to spend it. What you should really focus on is a savings plan at any level, because as your income goes up, your needs go up as well. So it's very important to put a certain amount aside and further more it's important to watch all moneys coming in and out of your bank account, and making sure that people aren't double charging you, or charging you more than you expected, et cetera. It's important to be a saving consumer as well as a defensive consumer.
Bobbi Rebell:
I like that, defensive. Can you give me an example of how you've been a defensive consumer, David?
David Grasso:
I'll give you an example. You know Time Warner Cable and you know, a lot of these companies, you know, they offer great services, but a lot of times they double dip into your account. Or suddenly your promo ends and then your price goes up two or three times the amount overnight.
David Grasso:
I constantly sit down and watch my credit cards, and watch all those automatic payments. You know, the automatic payments are so convenient, but they can bedevil you financially.
Bobbi Rebell:
Okay David, before I let you go, I want you to share with us a money tip. And I know the different podcast we had David Bock who is well known for talking about the latte factor, which is all about making sure you don't have your money kind of whittle away on the small things. He always keeps reminding me that it's a metaphor, that it's not literal, that people can have their coffee, but it's about the little things. You are not about the little things. You're about the big things when it comes to your money tip.
David Grasso:
Well, I mean I'm holding a latte in my hand right now, so you know, let's focus on the big things. I have an app called Trim. And it really focuses on the big stuff that's coming out of my account. You know, if I had to follow every latte that I spent money on, I would go crazy. So I use an app called Trim. And it shows me major money movements above $250 that come in and out of my account. That way I notice, if my paycheck wasn't deposited. It I didn't pay a bill on time et cetera. If there's too much money. There's never any mystery as to how much money I'm supposed to have in my account.
Bobbi Rebell:
David, thank you so much. That is awesome. I am going to check out Trim right away, and I'm going to definitely keep my eye on the big things in life. Thank you for joining us.
David Grasso:
Absolutely. From one defensive consumer to the other.
Bobbi Rebell:
All right. Here is my take on what David had to say. I was pretty struck by David's passion for being a defensive consumer. Making money is of course meaningless if it all goes flying out the window.
Bobbi Rebell:
So financial grown up tip number one is to fight for your price. Just this week I went to pick up a prescription at CVS. It was replacing a liquid prescription. This was in a tablet form because of manufacturing problems with the liquid form. So this was not my choice. We've been paying $25 a month. CVS rings up the new prescription. Get this guys, $161 and this is not a one time deal, this is monthly.
Bobbi Rebell:
So we called the insurance company, they basically said, "Well, tough luck. It's not on the formula list. So you're stuck. I was really frustrated because number one, it's not my choice. It was literally the same medicine just in a different form. And the doctor had told me the generics were not a good fit. So that wasn't really an option for me. So I was not going to give up.
Bobbi Rebell:
I looked online because I know there are sometimes coupons available for drugs. And I did find one that said up to 84% off. Literally it was 84% off if you qualify. So of course I had to wait on the line again. And I had them ring it up with a coupon this time. And guess what, no, I did not get a huge discount. Nothing. Not only did I not get a discount. They said you have to forego your insurance if you want us to ring it up this way. So I said, "Sure, how much worse could it get?" And you know what it came up as? $354. And by the way this is for 30 tablets, and it's going to be a monthly prescription.
Bobbi Rebell:
I was pretty upset. So I went to the drug company's website. I was thinking maybe I will write a complaint letter, I don't know. But I looked around there, and by the way this was Pfizer to their credit. They have a program where after you get into their system and fill out the proper paperwork and all that stuff you can actually get this medicine for $25 a month.
Bobbi Rebell:
So that is what I did. And after a grand total of almost two hours of waiting in line, calling lots of people, getting codes and so on, lots of back and forth with this pharmacy, another pharmacy, the drug company, the insurance company. It was a mess, bottom line I paid $25 when some people are paying as much as $354 for this same medicine. Fight for your price, please. Take the time and find out, can you get a lower price for something. And especially when it comes to medication these days there are so many changes going on in our healthcare system. Look for everything. And absolutely this was Pfizer, go to their website, see if they have a program for people to get drugs. It does not necessarily ... It's not income based as far as I know this one was not. Look for those opportunities to get the same medicine at a fraction of the price. It's worth it.
Bobbi Rebell:
Financial grown up tip number two. David talked about an app called Trim. Now it helps him with the big stuff. But what I would say to my latte sipping friend is that while you do need to focus on the big stuff to really move the needle in your finances, and to reach big goals like retirement and saving for a down payment and all that stuff, you also should watch the pattern of the little stuff. So, if you're going to have the latte that's fine. But think about the fact that if you are having a latte every singe day, then that does become a big thing. So just keep that in mind.
Bobbi Rebell:
Thank you all so much for taking a few minutes to listen to our show. The feedback and support, truly appreciate it. Love hearing from everyone. Take a moment please to rate and review us on Apple podcast. I keep bringing you these inspiring stories. I hope you enjoyed David Brasso's story 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 Stuart and is a BRK media production.
Bold CEO Carrie Sheffield inherited a small fortune. But when she tried to invest it wisely, advice from a well-meaning relative wreaked havoc on her financial ambitions- and nearly caused her to drop out of school.
In Carrie’s story you will learn:
-How Carrie’s childhood as a Mormon influenced her financial ambitions
-Carrie’s experience growing up in trailer parks and mobile homes
-How a lack of financial education hurt her ability to manage an unexpected inheritance
-Why she chose to invest it all in one thing
-How an investment nearly cost her MORE money than she even put in.
-What is a REIT
-What is a capital call
In Carrie’s lesson you will learn:
-Why Carrie thinks women can be more intimidated when they think about money
-How she advises women to control their financial future
-Where she believes the best resources to learn about money
In Carrie’s money tip you will learn:
-How Carrie plans for long term goals
-Why a timeline is essential
-How being an entrepreneur impacts her financial planning
In my take you will learn:
-Why diversification is essential when you invest
-How dollar cost averaging can fit into your investment strategy
Links from the episode:
Learn more about Bold at Bold.global/about-bold/
Follow Bold
Twitter: @boldglobalmedia
Facebook: https://www.facebook.com/boldtv
Instagram https://www.instagram.com/boldtv/
Pinterest https://www.pinterest.com/boldtv/
YouTube https://www.youtube.com/channel/UC8s1pwopdw--IwABuGMjW6Q
Follow Carrie Sheffield!
Twitter: @carriesheffield
Facebook https://www.facebook.com/carriesheffield/
Instagram: https://www.instagram.com/sheffieldcarrie
Bold CEO Carrie Sheffield inherited a small fortune. But when she tried to invest it wisely, advice from a well-meaning relative, wreaked havoc on her financial ambitions. In this Financial Grownup podcast episode you will learn the best resources to learn about money and how you can take control of your financial future. #FinancialPlanning #FinancialTips