David Auten:
Retire Inspired’s Chris Hogan had a taste for expensive food at the grocery store- and it was was thinning out his bank account. But when he saw the true cost of his weekly habit he quickly hit the brakes and kept the change.
In Chris’ money story you will learn
-How Chris Hogan had money wake up call
-Why his spending was spiraling out of control
-How he curbed his grocery spending bill from $1500 a month to close to nothing
-How routine and habit was hurting his wallet
-The specific strategy Chris and his wife used to get back on track with their spending
-The crazy meals the Hogans had while cleaning out their food stash!
In Chris’ lesson you will learn
-Chris’s strategy to avoid mixing up wants and needs
-The importance of being intentional with how you spend your money
-How to curb spending even when you think you can afford it
-Chris’ saying: interest you pay is a penalty but interest you earn is a reward
-How to get debt out of your life
In Chris’ money tip you will learn
-Why he believes cash is the best tool to control spending
-How electronic payments can confuse you and cause you to spend more than you intend
In my take you will learn:
-While eating out can be a budget killer, eating at home can be expensive as well
-Be deliberate at the grocery store- have a list and don’t buy those impulse items!
-Don’t shop hungry
-Use apps like Grocery IQ and Grocery pal to help stay on track in the store and to plan better
-Avoid routine spends. But on purpose, and with purpose!
EPISODE LINKS
Chris Hogan’s website https://www.chrishogan360.com/
Chris Hogan’s book Retire Inspired
Chris Hogan’s podcast Retire inspired https://www.chrishogan360.com/podcast/
Chris Hogan’s Retirement calculator https://www.chrishogan360.com/riq/
Follow Chris!
Instagram @ChrisHogan360
Twitter @ChrisHogan360
Facebook https://www.facebook.com/chrishogan360/
Grocery apps to check out:
Grocery IQ
Grocery Pal
Here are some stories about Grocery apps:
8 apps that will save you real Money on Food- from Money
http://time.com/money/5095326/8-apps-that-will-save-you-real-money-on-food/
10 Best apps to save money on groceries 2018 from Frugal for Less
https://www.frugalforless.com/apps-to-save-money-on-groceries/
Best Grocery List apps article from best products;
https://www.bestproducts.com/eats/food/g1505/grocery-shopping-list-apps/
6 best grocery shopping list apps for iphone and ipad 2018 from appsdose
http://www.appsdose.com/2015/04/6-best-grocery-shopping-list-apps-for-iphone-ipad.html
7 Grocery List apps for iPhone and Android for best shopping experience
https://mashtips.com/best-grocery-list-app-iphone-android/
Transcription
Chris Hogan:
You would have thought I was getting ready for Y2K. I had food in the cupboards, the freezers. I had food everywhere, but yet I was still every Saturday morning going to the grocery store.
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. We talk a lot these days in our society about being mindful. I'm working hard about bringing that into my life in a consistent and intentional way, but we also need to talk about mindlessness especially when it comes to our every day spending. I love the story that Retire Inspired author and podcast Chris Hogan is about to share with us because of its brilliant simplicity. We need to hear this stuff and know that even the people we look up to when it comes to money have not always been the role models for money mindfulness. He became aware, and once he saw the numbers, change came. Chris Hogan, you are a financial grownup. Welcome to the podcast.
Chris Hogan:
Thank you. It's a pleasure to be with you.
Bobbi Rebell:
It's an honor to have you. I am such a fan of all that you do for people from Retire Inspired, the book, to your podcast, to all of your good teachings and advice. It is truly a privilege, and we thank you.
Chris Hogan:
Thank you. It's a pleasure to be with you.
Bobbi Rebell:
You have brought with you a money story about spending and the grocery store, which is something that people don't always realize what's going on there. Do tell.
Chris Hogan:
Bobbi, I had an issue. I wasn't being a grownup at this time.
Bobbi Rebell:
Oh no.
Chris Hogan:
This is back before I had kids. I'm now the proud father of three boys, but no kids, double income household. We were just getting started getting serious about where we were financially and what we were doing. I sat down and was looking at bank statements. I wanted to add up, I wanted to know where was my money going? Where was our money heading? I started adding up the different categories, the eating out, but the grocery bill. This was one that was jumping out at me. I thought, this can't be correct. I went another month back, and yeah, $1,200 a month on groceries, a family of two.
Bobbi Rebell:
What were you buying?
Chris Hogan:
Anything and everything, meats, cheeses, anything and everything at any time. Again, we had the money. We weren't hurting anybody. I went back a third month and added it up. It was like $1,500. I was like, "Okay, let's go back to the $1,200," and it was just too much. Then I started realizing something. I was making the grocery store rich, instead of me building my own wealth. That became my financial wake up call, so to speak. Literally, looking at this, we got intentional. We got on a budget, and we set up a dollar amount that we were going to spend on groceries. That was the taking control. I'll never forget, we looked at all the food that I stockpiled. You would have thought I was getting ready for Y2K. I had food in the cupboards, the freezers. I had food everywhere, but yet I was still every Saturday morning going to the grocery store. I realized something. I was shopping out of habit, not out of necessity.
Bobbi Rebell:
It sounds like it was part of your routine. That was your weekend routine.
Chris Hogan:
That's exactly right. It was the routine. Regardless if we needed anything or not, I was going and buying things because I could. Stepping back and really looking at that, we put some parameters in place. We set up a dollar amount that we were going to spend on groceries, but before we did that we ate the food that we had. I'll never forget, that was a grownup moment for us, really starting to take a stand because the $1,200 to $1,500 that was normally being spent in that month, we didn't spend it that month. We actually sent it toward our debt.
Bobbi Rebell:
The entire amount?
Chris Hogan:
The entire amount. We had $100 for groceries. We built the milk, and eggs, and things like that. The other stuff, we ate the things that we had. Now I'm not going to lie to you, Bobbi, we had some interesting meals. It was interesting. Ramen noodles with corn. We did some stuff, but we made a stand at that point financially that we were going to be in charge, and our habits weren't going to take charge of us.
Bobbi Rebell:
I want to ask you something. Earlier you said you could afford it, but then you said you were putting that money towards debt. You could afford it in terms of cash flow, but yet maybe you should not have been spending that, clearly, because you could have put it towards debt, so your perception of afford has changed.
Chris Hogan:
Absolutely, it did, because my math changed. Looking at debt, it was one of those things that at that time we rationalized it, because why? Everybody had credit card debt, everybody had a car payment. As you start to look at it, and you start to run the numbers, you understand interest that you pay is a penalty. Interest that you earn is a reward. When you start to learn real math, as I call it, you start to see debt for what it is. It's a threat, and it's a thief. You want to get it out of your life.
Bobbi Rebell:
What is the lesson from this for our listeners?
Chris Hogan:
I'd say, "Be intentional." It's the lesson of wants versus needs, and we can get confused. We can want something so bad that we feel like we need it, but I want us to be clear. Set spending limits for yourself. Understand what you normally spend, but let's put some dollar amounts on there of hey, here's what we're going to spend on groceries. This is what we're going to spend eating out. Now you start to construct that budget. It puts you in control, and then you don't have to feel regret.
Bobbi Rebell:
Let's move on to your money tip because this is one, I know what you're going to say. It's so brilliantly simple.
Chris Hogan:
Yes.
Bobbi Rebell:
What is your money tip for everyone that they can use right away?
Chris Hogan:
Right away, my money tip is this. Use cash. I know it sounds crazy, but I'm telling you, when you have cash, and you go into the grocery store with that dollar amount, it helps you stay aware, and it helps you stay in control. Now when they say the total amount is $85, and you count out $85 you are feeling the spending of the money as you're counting out those bills as opposed to with a debit card, the swipe, we don't feel the pain there. It's just this swipe. Now there's a chip, and all these things going on. It doesn't become spending until you balance your checking account. Use cash in those areas that you struggle in, whether it's eating out. Get an envelope, write eating out on it. Put a dollar amount in there each and every pay period. When the money is gone, you're done. It's this great reminder, and it keeps us aware of where we stand financially.
Bobbi Rebell:
All right, Chris. Thank you so much. I want to hear more quickly about what is going on with you, and what you are working on at Dave Ramsey Solutions and at Retire Inspired. Do tell.
Chris Hogan:
Yes. We launched Retire Inspired in 2016. I'm working on my second book that we're going to have ready and available for the public in 2019, but I'm traveling all over the country doing smart money events where we walk people through the baby steps. I'm also doing corporate events where I'm talking about money and leadership. They can go check me out at ChrisHogan360.com, look at the events page, and they can find out where I'm at and where I'm going to be.
Bobbi Rebell:
One my favorite things about what you do in your books, and I hope you have this in your next book, is that you really as you travel you get so many unique stories that are relatable, or sometimes hopefully they won't be relatable because some of them can be pretty scary, but I look forward to hearing more of those stories. In terms of social media, always Chris Hogan 360?
Chris Hogan:
Always, everything, on Facebook as well as Twitter, Instagram. @chrishogan360 is where I'm at.
Bobbi Rebell:
Okay, there was a lot there that I could relate to and have definitely been guilty of. This is a case where I am right in it with you guys. Financial Grownup Tip Number 1: We think of eating out in restaurants as a big expense that has to be watched, and it does, but you can also buy quite expensive items at the grocery store, and have some very pricey home cooked meals, or even worse as in the case of the Hogan household, some expensive food just sitting in the pantry and the freezer. You have to watch that bill. It seems so simple, but make a list when you go shopping and stick to it.
Bobbi Rebell:
You've heard this before, but I'm going to remind you. Don't shop hungry. It happens, I do it. I always buy more than I should and fall for the impulse items. I'm working on it, and you should too. There are a ton of apps that can help you to be more organized and save money when you shop for groceries. I'm going to put links to a few articles with suggestions in the show notes, but a couple to check out just here, Grocery IQ and Grocery Pal. You make your list, and the app will sort out and show you discounts including those for other brands of the same item. While it may seem like it's okay if you can afford it to spend that extra money at the grocery store, it's not always as okay as it seems. For example, in the Hogan's case, they realized that they could be using that money to pay down debt. They thought that they could afford it, but maybe not so much. If you don't have debt, wouldn't it be more fun to do something else with the money, or more smarter, to invest the money? Savings is a good thing.
Bobbi Rebell:
Financial Grownup Tip Number 2: Ditch the bad money habits that are just there because they're routine. Chris Hogan was shopping at the grocery every Saturday because it was Saturday. He did not need the food. In fact, he probably didn't have room for it at a certain point. This comes back to things like lattes. If you want one because you want one, and you can afford it, that's fine, but if you're just buying one every morning because that's your routine, think about it. Maybe you want to do something else some days.
Bobbi Rebell:
I want to thank all of you for your ratings and reviews on iTunes. It is making a huge difference in helping others discover our new podcast. I also want to thank Forbes for naming Financial Grownup one of the five podcasts that is getting it right. It was amazing to be getting that kind of recognition less than two months after we started this project. Keep spreading the word, friends, and keep in touch. I am on Twitter, @bobbirebell and on Instagram at bobbirebell1, on Facebook. Check me out under Bobbi Rebell and learn more about the show at, you're getting the theme here, bobbirebell.com/financialgrownuppodcast.
Bobbi Rebell:
Chris Hogan is pretty much as grown up as it gets. I loved his episode, and I hope you did too, and that it got us all one step closer to being financial grownups. Financial Grownup is edited and produced by Steve Stewart and is a BRK Media production.
The popular podcast host fesses up to having been a cheapskate fashion victim early in his career- and how learning to dress better, literally made him wealthier.
In Joe’s money story you will learn:
-Joe’s penny pinching philosophy- and how it backfired
-The impact of getting a gig on local tv
-Joe’s off-base take on how to develop trust in clients
In Joe’s lesson you will learn:
-The true cost of plastic shoes
-Why your co-workers may not tell you the truth
-How to avoid some of Joe’s mistakes
-How Joe invested in fixing his image problem, and increased his wealth
-Ways to get feedback on not just your career but also other aspects of your life
In Joe’s money tip you will learn:
-How to delegate one person to be the lead family financial manager
-What Joe refers to as ‘fantasyland'
-The one thing Joe does that avoids fighting about money in his family
-How to spot mistakes in your bills
In my take you will learn:
-The value of investing in your personal appearance
-What Kevin O’Leary had to say about investing in quality clothing and accessories
-How I have been burned by low quality purchases as fast fashion stores
-Why renting clothing can be a viable option that may work for your budget
-The importance of constantly upgrading your skills through education including online courses.
Episode links:
Mint
Clarity Money
Moneylion
Udemy
Rent the Runway
Follow Joe Saul-Sehy!
Joe’s course How to legally cheat on your taxes
Joe’s money in the mornings show on facebook
Joe’s Facebook group
Money in the Morning podcast
Stacking Benjamins podcast
Twitter: @averagejoemoney
Facebook: Facebook.com/stackingbenjamins
The popular podcast host fesses up to having been a cheapskate fashion victim early in his career- and how learning to dress better, literally made him wealthier.
Transcription
Joe Saul-Sehy:
That changed my entire career. My career went from growing at an okay rate, to all the sudden growing by leaps and bounds because I looked the part.
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've got this.
Bobbi Rebell:
Hey friends. This episode is all about investing in yourself. Whether it comes to your wardrobe or your education as you hear and will hear more from our guest Joe Saul-Sehy is the host of the crazy popular award winning Stacking Benjamins podcast. I don't have time to list all of the awards it has won but they include Best Business Podcast from the Academy of Podcasters, and Best Finance Podcast by Kiplinger. They also win a lot of these Plutus Awards among others.
Bobbi Rebell:
You're going to really like Joe's story. If you're a good dresser you're going to feel validated for spending all that time, effort and money. If you're not such a good dresser, I hope you're going to get motivated. Here is Joe Saul-Sehy. Joe Saul-Sehy, you are a financial grownup. Welcome to the podcast.
Joe Saul-Sehy:
I can't believe I made it here. I must be a grownup if I made it here.
Bobbi Rebell:
You must, and you're up early these days. We're going to talk more about it later, but congratulations on the launch of Money In The Morning. It's awesome, and I love the music.
Joe Saul-Sehy:
Thank you. We picked it out just for you Bobbi. That's our whole thing, if we can win with Bobbi we win with everybody, so there we go.
Bobbi Rebell:
It's happy music.
Joe Saul-Sehy:
It is happy music, and I need happy music with coffee in the morning.
Bobbi Rebell:
You've evolved a lot in your grownup life, but there was a time, and we're leading into your money story here Joe, when you were a bit of a cheapskate. It wasn't just affecting you, it was really affecting your whole universe. Do tell.
Joe Saul-Sehy:
I was a financial planner for 16 years. During that time I was teaching people how to pinch pennies and cut corners where they could. I thought, "You know, I really should take my own advice." I learned a valuable lesson here because people come to see you and they expect a certain type of person, but at the time I didn't think about that. I thought, "You know what? I'm in my office all day. I'm never out of my office." When I am, I started doing a television gig in Detroit at WXYZ Channel Seven, go Detroit. Even when I did that, people didn't see my shoes. So I went from really nice shoes-
Bobbi Rebell:
Well people that were watching you on camera did not see your shoes.
Joe Saul-Sehy:
Right, right.
Bobbi Rebell:
To be clear.
Joe Saul-Sehy:
People watching me on television didn't see my shoes. People that I interfaced with on a daily basis, they did, and my clients did. So I went from these really nice shoes that I had to these plastic shoes. You know, the shoes that buy at-
Bobbi Rebell:
I don't know about plastic shoes Joe.
Joe Saul-Sehy:
Of course you don't. Like a Payless shoes. I would go there and I'd find these shoes that looked nice, but they looked like they were polished but they really were just plastic-y. For about a year, I for those. I dumbed down my suits, I wore cheaper ties. I thought, "People trust me, they like me. I don't need to spend a lot of money on this stuff." And then I realized that everything that I was doing was wrong one day, when I finally bought some new shoes and I went to my mentor's office, and the very first thing he said Bobbi, I walk in he said, "It's about time you got rid of those cheap shoes."
Joe Saul-Sehy:
I said, "What are you talking about? I've had those for a year. How come you didn't tell me?" He goes, "Well, I just thought you'd find out sooner or later by yourself." So I realized then that everyone notices. Then when I hired a firm to help me look better on TV, because I also-
Bobbi Rebell:
You hired someone.
Joe Saul-Sehy:
I had to.
Bobbi Rebell:
So now you're really investing.
Joe Saul-Sehy:
Yes. Yes, because I realized from the shoes, I realized I kind of have to invest in my career, and then I realized how bad everything was. The very first thing that the firm said that I hired, they said, "Well, we need to give you a big boy haircut." Because I was still wearing this haircut that I had from college, this is back when I had hair. They changed my look to be a more sophisticated haircut, to be shorter, to be more conservative, to look the part.
Joe Saul-Sehy:
They went with me shopping for clothes to show me how I could still spend less money on clothes, but I had to dress much more smart. I had to be trust ... and it's funny how that changed my entire career. My career went from growing at an okay rate, to all the sudden growing by leaps and bounds because I looked the part. I don't know about you Bobbi, I don't trust people who look too good, people that are dressed to the nines. For whatever reason I don't trust them, but that doesn't give you an excuse to not dress appropriately, and I guess even to widen it, to take responsibility for your career. We have to take responsibility for this thing that we call a career and make it our own?
Bobbi Rebell:
Expending on that, what is the lesson for our listeners from the story?
Joe Saul-Sehy:
I think the big lesson is don't wait for somebody else to give you this feedback about your career. Look in the mirror, and not just in the physical aspects like I was, but look in the mirror when it comes to your relationships with your family, with your relationship with money, with your relationship with your job. It's far easier, everybody wants to pinch pennies, it's far easier to go make a lot more money that it is to pinch pennies. It's funny, we might be able to save 50 cents or a dollar, but we could make $100 this week if we just looked outside ourself and went looking. I mean, there are so many job opportunities online, there are so many things to do. Look in the mirror and take responsibility for yourself was something that I learned that day that I try to teach other people now.
Bobbi Rebell:
And grow the top line.
Joe Saul-Sehy:
Grow the top line, amen.
Bobbi Rebell:
So give us a money tip, something personal that you and your family do that people can maybe make their own and do right away.
Joe Saul-Sehy:
I just said, focus on the top line Bobbi, but I also look at the bottom line. Because if we can stretch the difference between the two of those, then that's where we experience growth. In a lot of families what I noticed is that one person in the family, like you have a budgeting partner, a spouse, a significant other, one person usually knows where every dollar is, every dime is. The other person's in a place I refer to as fantasy land. They think they know, they have this general feeling, but they also know the other person's taking care of it.
Joe Saul-Sehy:
That's when fights begin. That's when bad things happen in a relationship, it's because the person in fantasy land all the sudden realizes the fantasy doesn't look the way they thought that it should have, so there ends up being friction. To avoid friction, something that Cheryl my spouse, and I implemented and that I like to teach people how to do, is just have a quick weekly meeting. Maybe 15 minutes over breakfast, or I prefer over wine.
Bobbi Rebell:
In the evening, not wine at breakfast.
Joe Saul-Sehy:
It's wine, iHop, you're probably [crosstalk 00:07:10]
Bobbi Rebell:
I mean, I'm not judging but you know.
Joe Saul-Sehy:
That's right, good for somebody but maybe not me. The thing I like about this weekly meeting though is it's quick, it's actually fun. We look through ... I use an app called Clarity Money but you can Mint, you can use MoneyLion. There's lots of apps out there. You could even just use a spreadsheet or look through, go to your bank website and take a look at what expenses you had. It's very easy, here's the way we do it. We look through all the upcoming expenses. What are we going to spend money on in the next week? We talk through that. Then the second thing we do is we look at the previous week's expenses and we see if there were any mistakes on any of our bills. What's funny is, we find so many mistakes. It's horrifying how many-
Bobbi Rebell:
And they're never in your favor.
Joe Saul-Sehy:
They never ever ... It's amazing that none of them ... Yeah, isn't that shocking. Yeah, business is always taking from me. And then also look for recurring expenses that you don't need anymore. I found just a couple weeks ago that there's been a recurring meeting, because we miss meetings from time to time and I must have missed it the last two years in a row. There's a Norton subscription that I've had for the last two years that I don't have hooked up to anything. That's a $100 a year for this subscription. It was really ... Luckily I caught it. I was able to get back this year, I can't go back and get the year before that, but have that money refunded to me.
Bobbi Rebell:
That's a good thing.
Joe Saul-Sehy:
Yeah, which also is cool. But the best thing is, Cheryl and I now go through the week and we know where the dollars are going to be spent. If things change we've got this open line of communication. I've got to tell you, it's so fun. The weekly meeting is so fun.
Bobbi Rebell:
Good. And you know what's really fun? Is spending less on your taxes. I have a CFP, but I have to tell you, especially because I got the CFP before the new tax law was passed. I find it a little bit overwhelming, but you have out that can help a little bit.
Joe Saul-Sehy:
Yeah. Thanks for mentioning this, because we were going to call this, Bobbi, we were going to call it Understanding The Tax Form, but that sounds so boring. It just sounds so-
Bobbi Rebell:
I would want that. I would do that one, but maybe not other people.
Joe Saul-Sehy:
[crosstalk 00:09:10] Yeah, you and I are money nerds so that's great. But here's what somebody did with me, this is the genesis of the course. I thought taxes were kind of mystical and I would ask people, "Can I write this off? Is this something that maybe I can take advantage of? Is this taxable? Is this not taxable? How does it all work?" Somebody sat down with me and walk through the 1040 and how the 1040 works, and then the itemized deductions page and how that works.
Joe Saul-Sehy:
Once I knew that, and what's cool is it's only three pages, once we walked through that I totally then could see what I could write off, what I couldn't write off, where my opportunities might be, how my retirement plan fit into the big picture, what the downsides might be in the future, what tax problems I might have in the future. We call the course How To Legally Cheat On Your Taxes, and it is a lot of fun. It's a do at your own pace course. It teaches you how taxes work. You can do two things. Number one, put Humpty Dumpty together, like right now during tax season.
Bobbi Rebell:
Yes, it's coming.
Joe Saul-Sehy:
Put things together- Yeah, put things together in a way that helps. But that's not where the magic is. I think the real magic is doing things through the year so that when you're trying to put Humpty Dumpty together next year, you're able to do that much, much better because you knew how taxes worked going in. I think that the powerful thing. That's the reason we created it, was to try to get people that same leg up that I got.
Bobbi Rebell:
I love that. Where can people find that? And where can people find you? I know Facebook in the morning, it's fascinating people. You can him do Money In The Mornings on Facebook and you can see how everything is made.
Joe Saul-Sehy:
It's so-
Bobbi Rebell:
Including the bloopers.
Joe Saul-Sehy:
Yeah. I was going to say, it's so uncomfortable because ... and I did it live on Facebook to try to force myself to do ... We talked earlier about taking responsibility for your career. One thing I do, I'm a natural stutterer, and do try to get around stuttering-
Bobbi Rebell:
What?
Joe Saul-Sehy:
Yes, and to make myself more natural on camera and try to get used to that. I started doing these daily Facebook Lives and say, "You know what, we're going to do this show without a net." So Money In The Morning is without a net, five days a week, wherever you're listening to this show. We just do two quick headlines. It's live, and man sometimes bad stuff happens. Which I think some people listen to it just to hear the car wreck.
Bobbi Rebell:
That's the best part.
Joe Saul-Sehy:
Right, right. Just to hear some of the bad stuff that sometimes happens, because you can't take it back if it's live.
Bobbi Rebell:
I know. All right, so where can people find you and the course and everything?
Joe Saul-Sehy:
Yeah, yeah. That's wherever you listen to this podcast, is where you can find Money In The Morning or Stacking Benjamins, our main show. The course is at learn.stackingbenjamins.com, that course, and we have a couple others, Save 50% Of Your Income and a quick hit course on your benefits package, so when you are going through open enrollment every year. Just a very quick, like, "What do I need to remember while I'm doing my open enrollment?"
Bobbi Rebell:
Cool. Where can people find you social media before we go?
Joe Saul-Sehy:
I am @AverageJoeMoney on Twitter, stop by and say hi. On Facebook it's facebook.com/istackbenjamins.
Bobbi Rebell:
Joe Saul-Sehy, thank you so much.
Joe Saul-Sehy:
Thanks Bobbi. This was so fun. I'm so happy that I'm finally a grownup.
Bobbi Rebell:
You are. Congratulations Joe. Here is my take on what Joe had to say. Financial Grownup tip number one, wear quality clothing. This is something that previous guests Kevin O'Leary touched on as well with respect especially to his mother. Not only is it important to look your best in business, but you often come out financially ahead.
Bobbi Rebell:
I get tempted like everyone by the fast fashion places. I always get burned. I buy a sweater for 20 bucks, it looks identical to the one for 200 in the department store, so I think I'm really smart. But then, after a couple of wearings, it's trash. I'm going to let you guys in on an open secret. Notice that I said wear quality clothing. I did not say buy. If you come see me speak, I am often wearing a very expensive designer dress that I don't own. It's rented. The designer handbag I'm carrying, you got it, probably rented. That way I get the benefits of always showing up in a well made dress without having to constantly invest in buying expensive clothing.
Bobbi Rebell:
Financial Grownup tip number two, always keep learning. Joe talked about education, so whatever interests you or will further your career, get better at it. If you work for a big company, always find out what they will pay for. My first employer, CNBC, paid for my CFP classes. There are also incredible online resources from LinkedIn to Udemy, even Investopedia has great online classes. In fact many top universities are putting their classes online and you can often audit them for free. Make yourself smarter, it will probably pay off for you financially, but you'll also probably enjoy it.
Bobbi Rebell:
Thank you all for your support and feedback. I truly appreciate everyone who has subscribed, rated, reviewed and shared the podcast. It's amazing. Please, follow me on social media @BobbiRebell on Twitter, @BobbiRebell1 on Instagram. Go to my website, sign up for my newsletter so I can keep everyone posted on everything going on with the show. I hope you enjoyed Joe's story 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 00:14:28] 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
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.
This episode with Her Money podcast host and Today Show financial editor Jean Chatzky is about getting the most value for your work.
In Jean’s money story you will learn
the impact her divorce had on her financial strategy
how the loss of her dad changed her perspective on money
the loss of her job and the career change that followed
how to assess your financial needs, especially your savings goals
how focusing on her money created emotional and psychological security
her post-divorce college savings plan pivot
In Jean’s lesson you will learn:
how to evaluate your financial needs at different life stages
which professional advisors she has used at key points in her life
how to know what to charge clients for your professional services or products
why and how she shares information about pricing
In her money tip you will learn:
the power of automatic savings
mental accounting and why it works for her
using different pools of money for different goals
guilt free spending
In my take you will learn:
my advice on knowing your worth in the market
why socializing and making friends in person and online is key to growing your business
Why you must choose clients that value your work
How to deal with clients that lowball you on price
How to grow low paying clients into higher paying ones
Links related to this episode
The Today Show
Jean Chatzky
Her Money with Jean Chatzky
Stacy Tisdale
Transcription
Jean Chatzky:
We were talking about how much we charge for speeches and creating content for various people and various companies. In the last year, I've become much more conscious of sharing these kinds of numbers with people in my circle, because this is the way we are all going to get paid more.
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've got this.
Bobbi Rebell:
That was NBC today show financial editor Jean Chatzky, host of the Her Money podcast, and author of countless bestselling books, most recently Age Proof. The clip is part of the lesson that she will share with us, in just a few minutes, about getting paid more. But first, we are going to start with her money story, which has to do with a rocky time in Jean's life, and how she found financial security. Here is Jean Chatzky.
Bobbi Rebell:
Jean Chatzky, financial grownup, welcome to the program.
Jean Chatzky:
Thank you Bobbi, so happy to be here.
Bobbi Rebell:
Yes, and happy 2018, and happy almost 100 episodes of Her Money. Congratulations.
Jean Chatzky:
Thank you, and congratulations on the launch of this podcast, I think it's so much fun.
Bobbi Rebell:
Thank you, it's been quite a year. I remember I think my second time ever as a guest was on Her Money, so it holds a very special place in my heart, and it's really just wonderful content that you're bringing to people, so thank you for that.
Jean Chatzky:
Sure.
Bobbi Rebell:
And everyone of course should check out Her Money.
Bobbi Rebell:
But you have brought with you a really important and compelling money story. Do tell.
Jean Chatzky:
I feel like I was thrust into the real world of financial grownups when I got divorced.
Bobbi Rebell:
And how old were you?
Jean Chatzky:
I was about 40. I mean that's when it hit, and it hit at a time when a lot of things hit. I lost my dad, who had been sick for a while. I got fired from Money Magazine, I mean they didn't actually say fired, but that's what happens when you get laid off. I had to take a whole new look at my life, knowing that I was going to be doing it on my own, knowing that I was going to be a freelancer rather than an employee, starting a business, maybe hiring my own employees.
Bobbi Rebell:
Which you have now.
Jean Chatzky:
Which I have now. And all of it caused me to really take a hard look at the inflows and outflows of money, at what I really needed. And most importantly, at what I needed to meet my savings goals, because when I got divorced, I started saving money like crazy, because nothing else made me feel as safe, and I was not feeling particularly safe in the world at that point.
Jean Chatzky:
And so it took the form of doing everything from buying a smaller house than I could really afford, and just shoving more money every single month into savings, to starting new college accounts for my kids, because the plan that my ex-husband and I had about how we were going to pay off the mortgage and then use that money to pay for college had gone out the window, to really taking a closer look at all of the bills every single month, and seeing what was not necessary.
Bobbi Rebell:
And you weren't doing that before?
Jean Chatzky:
I was doing it, but I wasn't doing it in such a diligent and type A way. I was saving up to the guidelines that I give people, but I just wanted to do more. That's what made me feel safe, was not shoes in the closet, it was just money in the bank.
Jean Chatzky:
So my lesson is a little bit different from that story, but no matter what stage you're at in life, we all need help. And I think asking for help, which I did during that period in my life, from financial advisors, from lawyers, from estate planners, from friends who had been through it before me. We've got to ask for help to figure out how to chart the right course at the right time.
Jean Chatzky:
And I thought about this lesson because I had lunch yesterday with Stacey Tisdale, who is another financial expert/journalist/colleague, who you should absolutely have on this show.
Bobbi Rebell:
Absolutely.
Jean Chatzky:
And we were talking about how much we charge for speeches and creating content for various people and various companies. In the last year, I've become much more conscious of sharing these kinds of numbers with people in my circle, because this is the way we are all going to get paid more. And doing this feels to me like we are really helping each other.
Bobbi Rebell:
Give me a money tip, something that you are using yourself, with your family, that is really making a difference, that people can implement right now.
Jean Chatzky:
Going back to what I told you about saving like a crazy person around the time of my divorce, I save automatically for every goal, even the small ones.
Bobbi Rebell:
Do you separate different accounts you mean?
Jean Chatzky:
I separate. I am a huge believer in mental accounting for which Richard Thaler just won a Nobel prize. I find when you have different pools of money for different things, it's easier to reach your goals. I've got a big trip coming up, I've got that money isolated. I'm saving ahead of time, and it means I will not be looking at big credit card bills that I don't have money to pay off, after that trip happens.
Bobbi Rebell:
And it also takes away the guilt of feeling like maybe I shouldn't treat myself to this trip, because the money is there for that.
Jean Chatzky:
Absolutely. And it doesn't matter if it's a trip, or a handbag, or a spa weekend, or college. Just knowing this is the job that this money has been set aside to do is really, really helpful.
Bobbi Rebell:
Great advice, thank you Jean Chatzky.
Jean Chatzky:
Sure.
Bobbi Rebell:
I love that advice about pricing. Information is power when it comes to pricing your services, especially as we seem to move more and more into the gig economy, not to mention side hustles.
Bobbi Rebell:
So I'm going to just expand on Jean's great advice about knowing what you're worth in the market and getting it. Financial grownup tip number one, get social. Think of others in your field not as the competition, but as your teammates, your allies. Spend time with your people. This can be in person, like Jean does, or even online. There are countless groups these days, especially for example on Facebook, where you can ask people specifically what do they charge?
Bobbi Rebell:
They may not say it publicly in the App itself, but a lot of people are willing to DM you with some actual numbers and helpful tips about what you can and should be charging.
Bobbi Rebell:
Financial grownup tip number two, do not work with clients that don't value your work, aka don't pay you enough. Good clients want you to stay in business, that can't happen if you are in a race to the bottom with price. If someone does not want to pay the right price to work with you, odds are this is not the last argument you're going to have with them. If they truly have a budget that is still too small, see if you can limit the scope of what you're doing. If you believe they're going to grow into a client that can eventually afford you, make a judgment call. But make it clear that you are working below rate, and that the numbers are unsustainable and need to grow when their business grows.
Bobbi Rebell:
If it really can't work, consider referring them out to someone who does work with people with smaller budgets. They will appreciate it.
Bobbi Rebell:
Thank you all for listening to this episode of Financial Grownup. We are loving all the amazing feedback. Please subscribe, share, rate, review. It matters, and is truly appreciated.
Bobbi Rebell:
Financial Grownup with Bobbi Rebell is a BRK media production.
Shark Tank’s Kevin O’Leary shares a story about his mother and a secret he learned about after she passed away. The Entrepreneur, who is also behind O’Shares and O’Leary Ventures reveals in the story how his mothers choices informed his investing style, which is heavily focused on dividends.
He goes on to discuss the two types of investments his mother chose, including her thinking and mindset in making those choices.
O'Leary also talks about the importance of the tax changes and why that is something that will benefit investors who follow his strategy.
In his money tip Kevin explains how people who can’t save can find the money to get on track. He also reveals another lesson from his mother that was a bit surprise. O'Leary also shares his 90 day money test that he does with his wealthy friends to help them stay rich.
O'Leary talks about an app that he launched called Beanstox that allows investors to buy small dollar amounts of ETF’s and market-leading stocks. It gets people into investing without having to commit large amounts of capital up-front.
Links to things mentioned in this episode
Kevin O’Leary’s financial literacy books the Cold Hard Truth series can be found here.
His app to start investing can be found at Beanstox
To learn more about the companies he backs as well as his wine business and more, go to O’LEARY VENTURES
Kevin also talked about his ETF business O'Shares
In his story about his mom he spoke about Chanel and Gucci
Books I recommended in the episode:
The Opposite of Spoiled by Ron Lieber
Smart Money Smart Kids, Raising the next generation to win with money by Dave Ramsey and Rachel Cruz
Make your Kid a Money Genius even if you are not by Beth Kobliner
Money A-Z Scott Alan Turner
Steve Jobs, The man who thought different by Karen Blumenthal