Author Barbara Huson joins the Financial Grownup podcast to share her research and insights on a new way to approach learning about money and wealth, as well as preview her latest book Rewire for Wealth: Three Steps Any Woman Can Take to Program Her Brain for Financial Success

Get Barbara’s new book, Rewire for Wealth here.

Get all of Barbara’s books along with other books by Financial Grownups here.

Barbara’s Steps to Rewire Your Brain for Wealth

Step #1 -

Start observing those negative or unhealthy or maladaptive thoughts that go through your mind. Observe these thoughts with curiosity. Not judgment, not negativity. Separate yourself from the thought.

Step #2-

The second step is reframing your negative thoughts to see it differently. It could be as simple as looking at the opposite of that thought.

Step #3-

The third step is you respond differently. The key is to respond differently over and over and over again. Each time you respond differently, you weaken the neural pathway that says there's never enough to build a new neural pathway that says there's more than enough.

Episode Links:

• Barbara’s website - https://www.barbara-huson.com

Follow Barbara!

• Instagram - @thebarbarahuson

• Twitter - @thebarbarahuson

• LinkedIn - https://www.linkedin.com/in/barbarahuson/

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

FULL EPISODE TRANSCRIPT-

Bobbi Rebell:

Part of being a financial grownup is making sure you have a plan for how you spend your money and how you pay your bills. Now, we have a new tool for that. It is called Splitit. It will take a lot of the stress away from those big purchases and really allow you to plan ahead. Here's how it works. You shop online, and when you're ready to pay, you just choose Splitit at the checkout to split your payment on your credit card and pay over time. There's no interest, no application, no fees. It is fast and easy. So, if you buy something for $500, you can split it into five smaller payments of $100 a month without any interest or fees, much more manageable and you're in control of your costs. By turning your payments into smaller installments over time with no interest, Splitit gives you more spending power. I know I don't like to have to pay interest if I can avoid it, and I also don't want to always be opening new lines of credit. Split your payments and live big with the credit cards you already have. Go to splitit.com today. That's splitit.com.

Bobbi Rebell:

Three ways to rewire your brain for financial success with Rewire for Wealth author Barbara Huson. 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, everyone. Hope you guys are well despite all the chaos going on in the world. It's pretty hard to just keep functioning in daily life, but that's what a lot of us have to kind of find a way to keep doing. I've been continuing to work on my book, tentatively called Launching Financial Grownups, and I'm really taking some time to focus, to refocus, I should say, more on this podcast, which I love doing this podcast for you guys. Some of you know I made a big decision coming into this new year to take a sabbatical from my other podcast, Money with Friends with Joe Saul-Sehy. There was literally no way I was going to get my book done anywhere near the spring deadline, so I needed a jolt and this is what I had to do.

Bobbi Rebell:

Coming into the new year, I think a lot of us can benefit from a jolt and just kind of waking up and seeing things maybe a little differently. We've been dealing with a lot of the same old, same old. A lot of us have gotten into ruts, not surprising given everything going on, but look, we've been quarantining and sometimes this can be a good time for a change in mindset, even though yeah, the new year is sort of an artificial way of marking it. But I think there's something about coming into a new year that can motivate us to change our mindset. So on that note, this week's guest is really perfect for all of that. You guys that want to join me in changing your mindset and getting remotivated, Barbara Huson is an author. She has written seven books. The best one is probably, the one that's really best-known, I should say, is Prince Charming is Not Coming. By the way, it was written not under her current married name, it was written under Barbara Stanny.

Bobbi Rebell:

She now is coming out with her number eight book, Rewire for Wealth: Three Steps Any Woman Can Take to Program Her Brain for Financial Success. When I first heard the title, I was a bit skeptical, but her team sent me an advanced copy, and not too far into it I was on board. That's why I'm so excited that she made the time to come on the podcast and talk about the themes in the book and how we can all integrate them into our lives. And by the way, even though the book is technically aimed at women, I really believe these strategies are truly for any gender. Before I roll the interview, I'm doing big things this year that I want to make sure to keep you guys informed about, because I'm hoping they can really help you reach a lot of your grownup goals this year.

Bobbi Rebell:

The first thing is I'm going to really be upping the ante with The Grownup List. It's been coming out... well, I've been trying to do it once a month. That hasn't really happened, so we're going to, first of all, try to have it actually come out once a month. We're going to have some big giveaways that I'm really excited about, starting with the one that's going to come out soon in January. So please get on the list. It is free. You just go to my website, BobbiRebell.com to sign up. Please also follow me on Instagram @BobbiRebell1. If you go there, just send me a DM just to say hi so I know that you're there and you've heard this on the podcast. And by the way, apologies in this interview for any audio glitches. Barbara was coming to us from an area with really weak signals, wifi, whatever you want to call it. So the audio is not ideal, but the interview is well worth it. Here is Barbara Huson.

Bobbi Rebell:

Barbara Huson, welcome to Financial Grownup. We're so glad to have you here and we're so excited to hear more about your new book, Rewire for Wealth: Three Steps Any Woman Can Take to Program Her Brain for Financial Success. Welcome.

Barbara Huson:
Thank you, and thank you for having me.

Bobbi Rebell:

Before we get into that, I want people to know a little bit about your background, because it is one of a kind. You come from a very unique perspective in your approach to wealth and basically how we should be thinking about it.

Barbara Huson:

I grew up in a wealthy family. My father was the R of H&R Block. The only advice he ever gave me about money was, "Don't worry," which I thought was great advice. I didn't understand money. I just wanted to spend it.

Bobbi Rebell:
I don't want to worry about money. I would love to just spend it. Sounds good to me, Barbara.

Barbara Huson:

Yeah. It sounded great to me until I found out very early in my marriage that my husband, who was a stockbroker, was a compulsive gambler. Over the course of our marriage, he lost a fortune of my inheritance. Here's the insane part, I continued to let him manage the money because that's how terrified and intimidated I was by anything to do with money. After our divorce, I decided I didn't want to deal with money, it's not my thing. Well, I have learned that if you don't deal with your money, your money will deal with you. Then the next year, I got tax bills for over a million dollars for back taxes my ex didn't pay for illegal deals he got us in. My signature was on everything. I hired lawyers, I got the tax bill down. I sold what was left in my trust. I was left with nothing. I had a few properties. I had a few properties…and so if I lived frugally, I'd be fine. I had three daughters. I was not going to raise them on the street. I was determined to get smart.

Bobbi Rebell:

Yeah. That's what we call a financial grownup moment, is having your husband gamble away your fortune and having to figure it out with young children. For sure. So you have a lot to teach us. I know that from that moment, you went on this mission. For years, you've really dedicated your life to educating women, to coaching women about wealth. You now have seven books out. Your eighth one is coming out and now you're here talking to us, which I'm so grateful for. You brought us three tips to rewire your brain for financial success. First, talk a little bit before we get to that about the whole concept of that, because this is a whole different way to think about money, starting with how our brains work.

Barbara Huson:

About six years ago, I stumbled on an article about neuroscience. If I could integrate neuroscience, the principles of neuroscience, of rewiring your brain into the work that I was doing with finances, helping women become financially empowered, that can expedite the learning curve and get them past the resistance in a very short time.

Bobbi Rebell:
Give us an overview of the three tips, and then we can talk about what each one is.

Barbara Huson:

So the three steps are simply recognize, reframe and respond differently. Recognize, reframe, and respond differently. I'll explain these steps in a minute, but you must do these over and over and over and over again, because the key to rewiring your brain, to changing the habits, is repetition. So the first step, recognize. What that means is you start observing those negative or unhealthy or maladaptive thoughts that go through your mind. Start observing them. "Oh, I'm having a thought about not having enough. Oh, I'm having a thought about I have to have those shoes. I have to have that designer handbag," or whatever. Or, "I'm not enough." But you start observing, and you observe these thoughts with curiosity. Not judgment, not negativity. "Oh, isn't that interesting? I'm having a thought," because by doing that, you separate yourself from the thought.

Barbara Huson:

The second step is taking that thought, "There's never enough," and reframing it, seeing it differently. It could be as simple as looking at the opposite of that thought, "Oh, there's enough. There's enough," or maybe it's, "oh, here's an opportunity to rewire that thought." The third step is you respond differently. You [inaudible 00:09:24] do. What you do want to do, which doesn't feel right, which doesn't come naturally. In that case, there's never enough and you could go into fear and not want to open your bills and not want to look at your checkbook. Therefore, the thing to do is open at least one bill or start looking at your checkbook. The key is to respond differently over and over and over again. Each time you respond differently, you weaken the neural pathway that says there's never enough to build a new neural pathway that says there's more than enough.

Bobbi Rebell:

What do you say to people that maybe have people around them that are counter-effective? I don't know if that's quite the right word. They're not supportive of this rewiring idea. That are filling people with the wrong kinds of thoughts. How do you do that? Especially, we're in quarantine, sometimes we don't have much choice with who we're with.

Barbara Huson:

It's really, really important that you, at least while you are rewiring, while you want to shift from being one way to being another way, it's really important to surround yourself with people who are supporting you and not trying to rain on your parade. And that may mean if your husband is being a naysayer, simply not listening, walking out of the room. But it's really important, it's a really good point you made, because you become who you're with. There is a tendency to become who you're with. It's very important to distance yourself emotionally, if not physically, from the people who are not there supporting you.

Bobbi Rebell:

That is such good advice. Tell us more about... The book is coming out in January. Tell us more about where people can find out more about the book and about you and be in touch with you.

Barbara Huson:

Well, you can go to my website, which is Barbara-Huson, H-U-S-O-N, .com. Barbara-Huson.com. The book is actually for presale now. I know it's on Amazon and Barnes & Noble, but yes, you can come to my website. There's just lots of stuff on there, and I have wonderful offerings on there. I invite anyone to come.

Bobbi Rebell:

Well, thank you so much for joining us. I love the book. In fact, I endorsed it, so that's truly something that I don't do very often, but this book really struck me as something very important that we should all be embracing in the way that we approach money. I think a lot of people can benefit from this different way of thinking about wealth and our money. So thank you so much for being here and thank you so much for this newest book.

Barbara Huson:
Thank you so much for having me.

Bobbi Rebell:

So, are you guys ready to rewire for wealth? Let me know how you like the book and what other authors you'd like for me to invite on the Financial Grownup podcast. We actually have a lot of big author interviews coming up this winter, and most of them are going to be donating books to be given away to those of you on The Grownup List. We're also giving away branded merchandise as a sneak peek to what we're going to be fully launching a little bit later on, probably early spring. And you can enter and win only if you are on The Grownup List. Super easy to join. Go to my website, BobbiRebell.com, and just sign up. See you guys there. Big thanks, of course, to Barbara Huson, for helping us rewire for wealth and be financial grownups. Financial Grownup with Bobbi Rebell is edited and produced by Steve Stewart and is a BRK Media production.

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

 

Clever Girl Finance’s Bola Sokunbi is famous for saving $100k on a $54k salary in about 3 years. But then she started dropping $3,000 on a massive collection of luxury handbags, most of which she never even used. 

In Bola’s money story you will learn:

-How she saved more than $100,000 on a salary of just $54,000 in three and a half years

-The side hustle that helped her reach that goal

-How after she reached that goal, she made a very unexpected spending splurge

-The fascinating reason, looking back, that she went down that path and kept going!

-The moment she woke up and realized she had to make a change

-Exactly what she did to get back on track and make a profit in the process

-The regret she had despite making money on her debacle

-Why she thinks so much about Amazon stock

In Bola’s money lesson you will learn:

-Why keeping her handbags in top condition was the key in getting a solid return when she went to sell them

-Other ways to maintain the value of resale able luxury goods like handbags

-Her take on investing in goods like handbags compared to the stock market and corporations

In Bola’s money tip you will learn:

-Ways to get luxury goods like handbags for less money without compromising quality

-Bola’s favorite pre-owned goods resources

-How friends can trade or sell handbags to each other

-Bola’s new strategy for buying expensive handbags

In my take you will learn:

-Why I compare Bola’s handbag venture to winning the lottery

-The difference between saving money and building wealth

-How to sell luxury goods like handbags, as well as other things you can sell, like baby strollers

-Why I do not promote buying fake goods as a cheaper option

Episode links

Bola’s website: CleverGirlFinance.com

Bola’s podcast: Clever Girls Know

Follow Bola!

Twitter Clever Girl Finance

Instagram Clever Girl Finance

Facebook Clever Girl Finance

LinkedIn Bola Sokunbi

 

Also mentioned in the show:

Vestiare Collective

Fashionphile

Rent the Runway

---

Transcription

Bobbi Rebell:
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Bola Sokumbi:
I've always been a handbag junkie. It's just something about leather. Like the smell of fine leather that just ... I don't know.

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

Bobbi Rebell:
Hey, friends. This is one of those, "She did not do that," episodes. My guest was a champ at saving money on a very low income, but once she had that money, things took in unexpected turn and then there was yet another unexpected twist to the story. Bola Sokumbi is a certified financial education instructor and the force behind the very popular, Clever Girl Finance, a website and podcast that empowers and educates women to make the best financial decisions for them. Here is Bola Sokumbi.

Bobbi Rebell:
Bola Sokumbi, you're a financial grownup. Welcome to the podcast.

Bola Sokumbi:
Thank you for having me. I'm excited to be here.

Bobbi Rebell:
I am such a fan of yours. First of all, in addition to being a money expert, you are the force behind Clever Girl Finance, which is a website and a podcast. It started after you. I don't even know how you did this. You saved $100,000 in three and a half years on a salary of, I want to say, about $50,000?

Bola Sokumbi:
Yeah. I was making $54,000 before taxes.

Bobbi Rebell:
Wow. Give us just the high level. How you did that.

Bola Sokumbi:
I basically got lean and mean with, probably, my finances. I contributed to my retirement fund from my employer because I knew they were offering a match and that was a way for me to get some free money. I kept my expenses super low. I avoided my friends and stayed home. I wasn't going out to eat very much. I wasn't buying alcohol. I was the-

Bobbi Rebell:
Temporarily, right?

Bola Sokumbi:
Temporarily.

Bobbi Rebell:
Right.

Bola Sokumbi:
I was in a steady ramen noodles and coke diet. I focused on saving 40 to 50% of my paycheck and anything extra.

Bobbi Rebell:
Wow.

Bola Sokumbi:
I save my tax returns, my bonuses. I try to save as much as possible. I also started a side hustle. I started a wedding photography business, which really helped to increase the amount of money I was bringing in. That helped contribute to me being able to save that amount of money. Finally, I avoided credit cards as best I could. I, instead, used a charge card that require me to pay my balance in full every month. That kept me really mindful about my spending, but overall, it was really just setting the intention that I wanted to save and I wanted to challenge myself to save six figures. I put my mind to it. I gone to that focus and three and a half years later, I was able to save that $100,000.

Bobbi Rebell:
So smart. In full details, if anyone wants, go to Clever Girl Finance. I want to talk about your money story that you brought because Bola, this is like an incredible story given what you just said.

Bola Sokumbi:
Yeah.

Bobbi Rebell:
Here you are. You got $100,000. You're hustling with a side hustle. You're eating ramen noodles. You're doing everything intentionally, maxing out your retirement account to get the max. What do you do? You start buying $3,000 handbags. Tell us what, what.

Bola Sokumbi:
Holla.

Bobbi Rebell:
What?

Bola Sokumbi:
Let me break it down. Basically, I got to this point where I had saved a ton of money. I had a lot of money in the bank. Actually, at the end of the four years, I had about $150,000 saved. I was making more money. I had my business. I gone raising at my job. I was earning, now, well over six figures at this point. I was like "Wow, I have all this money. I maxed out my retirement savings. I'm still meeting my savings obligations. I just have to treat myself." I've always been a handbag junkie. It's just something about leather, like the smell of fine leather that just ... I don't know.

Bobbi Rebell:
I personally would've bought a pint of Haagen-Dazs if I wanted to treat myself but okay. $3,000 handbags.

Bola Sokumbi:
I went all the way, yes. I got my first designer handbag like "Oh my God, this is amazing. It's beautiful. I bought this in cash. I love it."

Bobbi Rebell:
What was it? Describe it.

Bola Sokumbi:
It was a Channel Jumbo in black caviar leather with gold hardware, classic, beautiful.

Bobbi Rebell:
Okay. I wouldn't know.

Bola Sokumbi:
I got the one. Should've been enough, but then I was like well, few months later, I have all the spare money. I'm still saving. I didn't know what to do. I want to invest, but I don't need to invest that much. I'm going to buy another designer handbag. I got to the point where I was buying several handbags for maybe three or four years. To me, it was fine because I was still saving. I was still meeting my obligation.

Bobbi Rebell:
How much do you think you spent in total, Bola, on the handbags?

Bola Sokumbi:
Oh my goodness. I don't know. If we were to have an Instagram competition on who could grab their handbags steady for the next 30 to 60 days, I would win, every time.

Bobbi Rebell:
Wait. Wait. You're going to have a different handbag every day for 30 to 60 days?

Bola Sokumbi:
Yeah, I could. Yes.

Bobbi Rebell:
Oh my gosh.

Bola Sokumbi:
I could've. I have a lot of handbags. I had them in different colors-

Bobbi Rebell:
Were they just sitting in the closet? Were you taking them to work? What was going on with the handbags?

Bola Sokumbi:
That's the sucky part. I maybe use like two or three. Well, I was exaggerated. I didn't have 60. Exaggerating. About a month. Let's say, a month. I didn't really use them. That was a disappointing factor. I'm one of those people that believe that if there's something that you like and it's something that you're going to use, go for it as long as you plan it out financial, but I wasn't using them. They did not make financial sense for me. I was using like one or two of them, and then maybe the others, I would look at or wear to a baby shower for 25 minutes and it goes right back into the closet. It did not make any financial sense. Fortunately, for me, at the time that I purchase them, for those of you who are into handbags, knew that there have been a flurry of price increases especially with the higher end luxury brands.

Bola Sokumbi:
At the time I bought the handbags, I bought them before the crazy price increases started. I got to a point where I was like "Okay, this doesn't make any sense." I will look in my closet and all I would see would be dollar bills stacked up. My husband is like "You need to let these go. You don't even use them. It doesn't make sense. You feel so guilty about having them because you're not using them." I took it upon myself to sell almost every one of them. I still have a few. The ones I use. It was really hard to sell them because I felt like I was selling my children. It's crazy. When I think about it, it's ridiculous, but I sold them. Luckily, for me, because of the price increases, I was able to sell them for a lot more than I purchase. That very first Channel handbag, the black jumbo I just described with caviar hardware, I paid $2,900 for it and I sold it for $5,500.

Bobbi Rebell:
Oh my goodness. Only you, Bola, would actually turn a cringeworthy shopping habit into a positive investment experience.

Bola Sokumbi:
However, Bobbi, to the point you asked me before we started recording was, I made money but when I think about it, I really didn't make that much money because one of the things that trigger me to start selling those handbags was Amazon stock. I realized that if I had spent all that money I spent on those handbags on Amazon Stock, I would've had times 100 of what I had spent on handbags. Not just doubling my money. I would've like times 100 it, right?

Bobbi Rebell:
If you had actually bought Amazon Stock, but truthfully, how much do you think ... do you think you spent $90,000 on handbags?

Bola Sokumbi:
Oh, I don't know. Over a three to four year period, I spent a lot of money.

Bobbi Rebell:
Okay. You bought 30 handbags at $3,000 each.

Bola Sokumbi:
Yeah. I had about 30. They were not all the same price.

Bobbi Rebell:
Okay.

Bola Sokumbi:
They were not all $3,000 handbags.

Bobbi Rebell:
What was the most expensive one?

Bola Sokumbi:
The Channel handbags I had. They were about in the $3,000, $3,500 range at that time. Now, they're not anymore. They're about 6 to $7,000 now.

Bobbi Rebell:
Wow.

Bola Sokumbi:
I don't own any more handbags by the way.

Bobbi Rebell:
What is the lesson from this beyond the fact that there was a time in life when investing in handbag was actually an appreciable asset? Still, they probably know. I don't know the market, but anyway, beyond the fact that it actually turned on to be a good investment.

Bola Sokumbi:
I wouldn't even describe as an appreciable handbag because for me, it was just purely for the fact that I was not using them. No one is going to pay you top dollar for a handbag that has been worn and beat up. If you're buying something, I believe that you should be using it. Lesson for this is cost per wear. You can have 100 Channel handbags if you want to have them and if you can afford them and you're paying for them in cash and it's not taking off your financial goals, but what is your cost per wear. How often are you using them? Are you getting your money's worth? If you buy a handbag for $3,000 and you wear it once, then that one time you wore it cost you $3,000 and that makes no sense. If you buy this handbag and you wear it 3,000 times over four years, then that handbag cost you $1 or maybe it comes down to cents and pennies and that starts to make more sense because as opposed to buying $25 handbags over that three-year period and use that one handbag over that time and you get your cost per wear.

Bola Sokumbi:
To me, cost per wear is really important. That's how I plan out my wardrobe. I still buy fancy things, but I have to be using them. I have to get my cost per wear down to pennies for it to make sense. I know when I see something if I'm going to use it or not. Understand your cost per wear. People may think, "Oh, buying handbags is crazy," but people spend their money on different things. For me, it was the handbag thing. Some people spend their money on electronics, on cars, on things that they don't necessarily use like having a second car in your garage that you drive on Saturday is not good to drive per wear.

Bobbi Rebell:
The handbags make you feel good.

Bola Sokumbi:
Yeah. I would pick a handbag over a lot of things. That was me. That was a lesson I learned. I put the money right back into my investment accounts. I was better for it.

Bobbi Rebell:
Let's stick with the handbag thing. What is your money tip, your everyday money tip for everyone?

Bola Sokumbi:
I would say that if you are a handbag girl like me, no shay, no judgment, find ways to get the handbags that you like at a cheaper cost or without putting out so much money. For instance, Bobbi, you and I talked about Rent the Runway. You really like that. If you want to actually own them, you can think about getting them preowned from sties like Fashion File or Vestiaire Collective. There's a bunch of different ones that are reputable that sell authentic products or even local consignment stores in New York. There's a ton of them. Or buying them off of friends who are trying to let go of their handbags or trying to recycle their wardrobe. Those are great ways that you can get luxury at a lower cost. You can also wait until some of these handbags go into the sale and purchase them that way.

Bobbi Rebell:
Right. Because a lot of them are really classic.

Bola Sokumbi:
Yes. It's all about buying something that you know you're going to use for a long time. I tend to avoid any trend pieces because I don't want to be out of fashion next year after spending all this money on it. I buy bags that I can carry forever. That's what I do. Every purchase I make right now, I carry that bag to shreds, basically.

Bobbi Rebell:
Definitely. Get that cost per wear down. Where can people find you and learn more about Clever Girl Finance?

Bola Sokumbi:
Yeah. You can find me on my website at clevergirlfinance.com, on Instagram at Clever Girl Finance, on Facebook, Clever Girl Finance. I also have a podcast called, Clever Girls Know. You can search for it on iTunes, Stitcher, Sound Cloud. You'll find it there as well.

Bobbi Rebell:
I think everyone should definitely check all of that out. I am a big fan. Thank you so much, Bola.

Bola Sokumbi:
Thank you for having me, Bobbi.

Bobbi Rebell:
Hey, friends. Except for the fact that she was ironically able to sell the handbags at a profit, this whole thing reminds me of what happens when people inherit a ton of money or they win the lottery and then they just don't know what to do, so they go shopping. Financial Grownup tip number one, Bola was great at accumulating money but she was selling herself short when it came to building wealth. She was meeting her goals in terms of saving and investing and all that, but that doesn't mean she couldn't move the goal post given the resource that she had and make even more ambitious goals. Not a problem to buy a bag that you can afford, but she wasn't even using most of them. Bola is very specific that, well, they ironically went up in value if she had invested the money. In her case, she talks about Amazon Stock, she would've made a lot more money. Of course, you could lose money in the stock market. There's no guarantee of that. It's just something to consider.

Bobbi Rebell:
Financial Grownup tip number two, if you do buy luxury goods and you aren't using them, it is easier than ever to sell them, so many resources online. You may not make as big a profit as Bola did, you may lose money but you're still going to get some cash. I have sold some bags on the real wheel. I've been happy to have the cash even though it went for less than I paid. You can also buy slightly used bags there at a discount if you want them. As I've said before, you can rent them at Rent the Runway or other similar websites. I will leave some links in the show notes for you guys. Given these resources, I would also urge you to stay away from the fakes. It undermines the economy and the business of the companies that produce the real thing. Don't buy fake bags. Also, it is illegal.

Bobbi Rebell:
We want you to be a financial grownup. Send us an email to info@financialgrownup.com if you want to be considered for one of our monthly listener episodes. Just tell us what the money story is that you want to share and your everyday money tip. If you have not already, please rate and review the podcast on iTunes, Apple Podcast. That helps others discover us and grow the community. It is truly appreciated. Make sure to subscribe so you don't miss any upcoming episodes and follow me at Bobbi Rebell on Twitter @ bobbirebell1 on Instagram and on Facebook, I am at Bobbi Rebell. Bola is the best. I am so appreciative that she was brave enough to get really candid. She definitely got us all one step closer to being financial grownups.

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

Fran Hauser became a financial grownup very young, helping her immigrant parents build their businesses by doing the books and serving as a liaison to clients as early as 1st grade. The author of “The Myth of the Nice Girl, Achieving a Career You Love Without Becoming a Person You Hate” now applies those early life lessons to her search for  startup investment opportunities.   

 

Fran’s money story:

Fran Hauser:
Yes. So my parents are Italian immigrants who moved to Mount Kisco, as you said, and like many immigrants it took a lot of courage to make this move. They were uneducated, they didn't speak the language, and they were moving to a place that was completely foreign to them. What each of my parents did have though, was a skill. So my father was a stonemason, my mother was really good at sewing, so they both started small businesses. My dad a stonemeasonry business, and my mom opened up a tailoring shop with her best friend. Being the oldest of four, they needed my help, especially when it came to communication. So when I was in first grade I was preparing all of my dad's invoices. One memory that I have is I could only add at that point in time, I couldn't multiply yet, so my aunt actually created a sales tax chart for me, so that if the monthly maintenance was $300, I could see exactly what the sales tax was, and then just add the two numbers together.

Fran Hauser:
So that was first grade, and then even in middle school I was helping my mother with marketing. So helping her come up with a logo, and getting different marketing and sales materials printed. So I got exposed to business at a very young age, and even understanding things like revenue, and expense, cashflow, you know seeing that when more cash comes in than goes out, decisions that need to be made around what to do with that extra money. It was really interested watching my dad because he took some calculated risks and invested in both commercial and residential real estate, which proved to be fruitful. I would say at a very, very, very young age I played this role of bookkeeper/marketer/general manager.

Fran Hauser:
Another vivid memory I have that I'll just share with you is when my father was asked to go look at a job, a potential client, and give them an estimate, he wasn't able to understand the directions to actually get to the house. So I would listen in on another phone and write down the directions, and then I would go in the car with him and we would actually drive to the residence together, and then I would get out and I would basically be the translator for him. So that was my childhood, pretty unconventional.

Bobbi Rebell:
Wow. Very unconventional. How did you assume this role? Were there specific deliberate conversations, or did it just evolve organically as you grew up in the household?

Fran Hauser:
It really evolved organically, because I was the oldest. Really, these things just fell on me. It made sense, if something was broken, even in the house, and needed to be repaired, I would be the one to call the plumber or the contractor, and at the time it felt really hard. It was frustrating, for sure, at times because I just felt so different from all of my "American" friends, who were doing sleepovers and play dates, and I had so much more responsibility. Obviously, looking back, it was actually such an incredible experience, because I learned so much, not just about business but also about risk taking. Watching my parents, who had so much going against them, they were at such a disadvantage, but they were still able to take these risks. Whether it was building these businesses, or investing in real estate, and if you look at my career, I've taken many risks in my career. I've reinvented myself several times. I left Coca-Cola and the late nineties to go to an early stage internet company, Movie Phone. Or five years ago, I left a really comfortable job at Time Inc. to move into startup investing.

Fran Hauser:
So I haven't been afraid to take risks, and I think a lot of that comes from seeing how disadvantaged my parents were, and feeling like if they could take risks, I should be able to.

Bobbi Rebell:
I wanted to ask you, so you mentioned, and I was going to bring this up, that you now are a startup investor. How did this background in business and understanding risks, and understanding strategy and marketing, and even just the basic economics of business, how does that inform your approach as an investor now?

Fran Hauser:
So I think in a lot of ways. For starters, when I'm evaluating the entrepreneurs I'm looking at them and I'm saying, "Do they have the capacity to take risks? Will they jump in with both feet?" And I'm also looking at what kind of mindset do they have? Are they optimistic? I always felt like my parents approached every single venture with such optimism, and with an abundance mindset, and treating people kindly and with respect. So those are things that I really look for in an entrepreneur, and then the other side of it is the brass tactics operational side, which is I feel like I'm really good at looking at financials and understanding what the risks are, really getting nitpicky when it comes to the assumptions that are being used. So I feel like I can look at a PnL pretty quickly, and projected cashflows, and all that good stuff, and I'm just co comfortable. I'm so comfortable with numbers, and I'm so comfortable with looking at forecasts and really trying to make sense of it, and also understanding is there a there there?

Fran Hauser:
The other part too, I would say, is just understanding markets, understanding consumers. I think that also comes from just having spent so much time with my parents clients. So it's impacted me as an investor in so many different ways.

Fran’s Money Lesson:

I would say the lesson is to not be afraid to take risks, and when you do so, really approach it with a mindset of abundance and optimism, and don't be afraid. Don't be afraid to go all in and to jump in with both feet, and then also the last thing I would say, which really ties back to the book, is to treat people with kindness and respect, because I think you look at my parents who barely spoke a word of english, and they were still able to communicate through a lot of nonverbal cues, and a lot of that had to do with being charming, and being kind, and that will take you far.

Bobbi Rebell:
Yeah, because the book is really all about being nice, but in a strategic and smart way.

Fran Hauser:
Yes, being nice in a way where you're not a pushover, and you're not veering into people pleasing territory. It's really about how you can be both nice and strong. Those two things are not mutually exclusive, and that you bring both of those into virtually any situation at work.

Fran’s Everyday Money Tip:

Yeah, I love this. So what we do in my house is, instead of a normal piggy bank, we collect coins in a five gallon water jug. The kids love it because it's so much bigger than a piggy bank, and it's clear, so you can see the progress. The last time we cashed it in the coins were worth $4000, and it took us several years to fill it up, but it's just a really fun way to teach your kids about saving and about goals.

Bobbi Rebell:
Where do you cash it in, what's that experience like? Is it one of the machines, or do you bring it to a bank?

Fran Hauser:
It's actually hysterical because it's so heavy, so what you have to do is we put duct tape over the top of it to close it, and then we literally roll it-

Financial Grownup tip number one

one thing that Fran talks about in The Myth of the Nice Girl is the importance of how things are presented, the tone that you use in your voice. So you can be firm, and not be a pushover, and still be nice. Think about the way that you say things.


Financial Grownup tip number two

don't say sorry so much. Try replacing it with "Thank you." Fran points out that many women apologize of things that not only were not their fault, but also they aren't really sorry about. For example, not being able to attend an event. She would often apologize for declining an invitation, instead, she advises to simply say, "Thank you for the invitation." And say that you will not be able to attend.

Episode Links:

• Fran’s website - Franhauser.com

• Fran’s book - The Myth of the Nice Girl

 

Follow Fran!

• instagram - @fran_hauser

• twitter - @fran_hauser

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

Ambition Redefined author Kathryn Sollmann’s childhood took an unexpected financial detour when her father had a career setback. But becoming a financial grownup at a young age gave her the foundation to redefine ambition. 

In Kathryn's money story you will learn:

-Why she started working at a young age

-How her financially stressful childhood prepared her for success

-The way she wished her parents talked about money when she was growing up

In Kathryn’s money lesson you will learn:

-How to have honest conversations about money with a significant other

-Why Kathryn suggests women should always have a way to make money

-Her tips on how to balance work and family life

In Kathryn's everyday money tip you will learn:

-How to categorize your savings account

-Ways prioritize saving money while staying out of debt

In My Take you will learn:

-Financial grownups don't judge, every financial plan is unique to each family or individual but making smart decisions are what make plans successful

-Family time and work time don't have to be separate, hear what Bobbi and Kathryn have to say about blending a schedule in order to balance it

EPISODE LINKS

Read Kathryn's new book Ambition Redefined here

Check out Kathryn's website for more information here

Follow Kathryn!

Instagram: @KathrynSollmann

Twitter: @KathrynSollmann

Linked In: @KathrynSollmann

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

Transcription

KATHRYN SOLLMAN:
The financial situation at home got so tenuous that my father, a couple of times, took my little part-time afterschool paychecks to pay a few bills while he was waiting for some things to come in and that had just a profound impact on me.

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, financial grownup friends. I like to joke that it is never too young to grow up financially, but I'm rethinking that a bit, and that is because my guest, Ambition Redefined author, Kathryn Sollman, got a rude awakening when her comfortable upper middle class suburban life was interrupted by the harsh financial reality of a change in her family's financial situation. More on that in just a minute.

BOBBI REBELL:
First, a quick welcome to everyone. If you are new, so glad you found us. Please hit the subscribe button so you don't miss any upcoming episodes and go into custom settings and set to auto download. While you are there, it will make our day if you leave a quick review. Now to Kathryn Sollman. Love her book, Ambition Redefined, but I will warn you, she makes him controversial arguments. And while I do see her point, and she does a lot of research, there's a lot of data to backup everything she says, there is a lot of discussion about her perspective. And stay to the end. We will be giving away a signed copy of Ambition Redefined. Here is Kathryn Sollman.

BOBBI REBELL:
Kathryn Sollman, you are a financial grownup. Welcome to the podcast.

KATHRYN SOLLMAN:
Oh, thanks for having me. It's great to be here.

BOBBI REBELL:
I love your new book. Congratulations on it. It is Ambition Redefined: Why The Corner Office Doesn't Work For Every Woman And What To Do Instead. It's like you read my mind, Kathryn.

KATHRYN SOLLMAN:
Yeah. We're in an era of women's empowerment, which is great, and we need to have a woman president, and we need to have more women running corporations, but that's very small percentage of women overall who want those kinds of jobs.

BOBBI REBELL:
Absolutely, and I do want to just mention that this is very important for men as well because men are huge stakeholders in this issue because they have so much at stake when it comes to not only whether they're women partners, their sisters, their mothers, their daughters work, but also the income that they generate because that can be a big factor when things don't go as planned, which brings us to your money story, which does have to do with your father and what happened and the impact on the rest of the family and the role that your mother had to play then in the family finances. Tell us your money story, Kathryn.

KATHRYN SOLLMAN:
I grew up in a very affluent community. My father was working in a big executive job in New York City. When I was in middle school, he lost that big job and he never fully recovered professionally. This then sent my mother, who was a former teacher, back to work and she hadn't worked in more than 20 years.

BOBBI REBELL:
Wow.

KATHRYN SOLLMAN:
So she had some fits and starts, but over time was able to reinvent herself to be an English as a second language teacher, but that wasn't really enough to keep the household going. So there was a tremendous amount of financial stress in the household. The financial situation at home got so tenuous that my father, a couple of times, took my little part-time afterschool paychecks to pay a few bills while he was waiting for some things to come in, and that had just a profound impact on me.

BOBBI REBELL:
What was your job?

KATHRYN SOLLMAN:
It was a company called the Danbury Mint. I guess I was a like an administrative assistant.

BOBBI REBELL:
And what kind of conversations did you have with your father or with your parents at this time?

KATHRYN SOLLMAN:
You know, it was a difficult environment because I felt like everything was always on pins and needles. I was young and it's not like I could have given my father advice. I was just kind of a victim.

BOBBI REBELL:
Well, what about your mother? How did she feel? Did you talk to her? Did she have regrets about having left the workforce? At the time, as you say, it was a different time. Did she feel she even had options not to leave the workforce?

KATHRYN SOLLMAN:
She felt a little powerless and she said that to me. She said, "Make sure that you always work because money is power." Not only in a relationship can money be power, but she said it's important that you have that power to support yourself and your family. I remember when she got one of her first big paychecks, she was very excited about being back to work and she bought herself a watch. I remember my father was very, very upset that she had bought that watch for herself because he felt like he should have bought it for her.

BOBBI REBELL:
What is the takeaway from your story for our listeners?

KATHRYN SOLLMAN:
You know, women really need to be sure that they're not delegating their financial security to a partner because even when things seem like they're going so well, you've got to realize that no job has a lifetime guarantee. The second thing is that women should always find a way to work in a flexible way, which in some circles, is very controversial. Women live longer than men. They typically earn and save less and it's very difficult to return to the workforce and recoup lost earnings when you've been out of the workforce for many years and women are out for an average of 12 years.

KATHRYN SOLLMAN:
If you feel like you have a moral obligation to be with your children 24/7, you've got to realize that if you ran out of money late in life, you would then, in fact, burden those very same children, which is basically what happened to me when my father took a couple of my paychecks. Fast forward, that's the same man who is not prepared for retirement and still alive at 89. At some point, he is going to run out of money and it's going to be my problem.

BOBBI REBELL:
All right, let's move on to the everyday money tip, which is also very important for women to have a sense of the contribution that they are making because, in some cases, many cases, they are not the primary breadwinner, but it is important to really understand that there is a significant contribution being made financially and you have a way to do that.

KATHRYN SOLLMAN:
What I always say is look at how much money you're bringing in each year and attach it to something. It could be two family vacations, it could be 50 percent or 100 percent of a college tuition bill, a child's braces, whatever it is, so that you can then say, "Okay, well I covered that. My money went to that." If you just put it all in the pot, it seems like your money is going to nothing or nothing significant.

BOBBI REBELL:
Right.

KATHRYN SOLLMAN:
And that's the way to make yourself feel better but also to, as my mother was saying, to exert a little power into the relationship and say, "I'm contributing too. This isn't just your ballgame."

BOBBI REBELL:
Which is very important because it makes it a lot more tangible. Let's talk about Ambition Redefined. I love this book. It's so relatable and there's a lot of truths in this that are not always spoken about, one of which is the fact that just because you were working flexible hours and sometimes part time hours does not mean you are earning less money or that you should settle for less money if you have the earning power in the market to earn more money.

KATHRYN SOLLMAN:
Yeah, it's absolutely true. A large percentage of freelancers earn more money than they were making in their full time jobs within a year. I was just speaking to a woman who had a full-time job with absolutely no flexibility. She needed more flexibility. She left and she found another job where she is working three days a week and she's working closer to home. She got rid of the commute and she's making 60 percent more than she was in the full-time job.

BOBBI REBELL:
So it's a question of finding the right job that values your skills. You also talk about something called a Type E, and this is important because I know a lot of our listeners are very interested in having their own business and being entrepreneurs. But it's important to make sure that's the right fit for you.

KATHRYN SOLLMAN:
That's right. When you're thinking about flexibility, what could be more flexible than being your own boss? So I find that lots of women think about, have these Walter Mitty dreams of starting this business or that business. The fact is that you have to be the entrepreneurial profile and the entrepreneurial profile is working 24/7 because there's nobody else to make this business work other than you, especially in the early stages before you might hire people. The other thing is that you have to wear so many hats.

KATHRYN SOLLMAN:
So if you have a dream to be a marketing consultant and you really love marketing, well, you might love that marketing discipline, but you probably or you may not love sales. Any job, any business that you develop, you've got to be a salesperson. And lots of people thinking about having their own business will tell me, "Well, I don't like sales. I never wanted to be a salesperson."

BOBBI REBELL:
Everything is sales though, right?

KATHRYN SOLLMAN:
Everything is sales. You've got to be selling yourself, your product, your service constantly. So you can't say you don't like sales and you can't say that you don't like financial stuff and numbers because you've got to work the numbers for your business. You've got to figure out how you're going to fund your business, even if it's a very small business.

BOBBI REBELL:
Tell us more about where people can find out more information about you, your book, and all your social channels so we can follow you.

KATHRYN SOLLMAN:
You can read more about my book on my website, kathrynsollman.com, and Facebook, Twitter, LinkedIn, and Instagram can all be found under @kathrynsollman.

BOBBI REBELL:
Wonderful. Thank you, Kathryn.

KATHRYN SOLLMAN:
Thank you. So great to be with you.

BOBBI REBELL:
Hey everyone. As I mentioned at the top, Katherine is very tough in her stance on the fact that women must always earn money. And that comes from personal experience, but still, financial grownup tip number one, no judging. Kathryn makes her point very well. She did her homework. It's a really well researched book and I live by most of her advice already in my own life, but part of being a financial grownup is understanding that there is a human element to money and an emotional element to the decisions that we make and all the decisions that go around our financial lives.

BOBBI REBELL:
Everyone faces different situations and there may be many seasons in one's life when a regular paycheck or earning power is just not as important as other things. Don't get me wrong, we must all be vigilant about financial security, but let's not judge if someone makes a decision that, from the outside, doesn't look good. Sometimes, by the way, it may look like somebody's choosing not to work or not to earn money, but in fact, they may be trying and just not have been that successful. Be a friend.

BOBBI REBELL:
Financial gonna tip number two. One idea in Kathryn's book that I loved was not to worry so much about work life balance, but to focus on blending. Maybe don't put pressure on yourself to turn off communication with work the minute you get home. It may work for some people, but it's okay if you give her child a bath, for example, and then you take a work call, and then you do story time. And maybe your kids stays up a little later than you wanted or whatever. Do what works for you to maintain your career path.

BOBBI REBELL:
And by the way, it is more than okay for your kids to know that you have other responsibilities and that paying attention to those other responsibilities may help pay, literally, for the fun things that you do together like your next vacation. Put them on your team, include them. Let them know that their good behavior and understanding when you have to do some work, even when it's supposed to be their time, helps the whole family.

BOBBI REBELL:
Katherine very generously sent along a signed copy of her book, Ambition Redefined: Why The Corner Office Doesn't Work For Every Woman And What To Do Instead for one lucky listener. To win, all you have to do is DM me with your takeaway from the episode. You can do it on Instagram @bobbirebell1, on Twitter @bobbirebell, or you can even email us at hello@financialgrownup.com. That is hello@financialgrownup.com.

BOBBI REBELL:
I love talking to Kathryn. She has so much value to add to this conversation. I hope everyone checks out her book, Ambition Redefined, and thank you, Kathryn, for helping us all get 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.

After 148 rejections in the first funding round, Kathryn Minshew co-founder and CEO of the Muse took note of what she did wrong and upped her game when she went looking for new financing. Minshew scored close to $30 million thanks to the new approach. 

 

In Kathryn’s money story you will learn

-How Kathryn and the Muse team re-vamped their strategy the second time they raised money

-How Kathryn rebounded from the 148 rejections in the seed round of financing

-How The Muse raised $30 million from investors

-How they were able to ask for less money and come out with more than the original targets

-The way Kathryn structured her process when pitching investors

-How they organized their pitches and research to be more effective

-Kathryn’s investor prioritization strategy

-The specific thing Kathryn said to investors to get them to the table faster- and with more interest in her company

-How a second round of financing is different- and should be approached differently from a seed round

In Kathryn’s lesson you will learn:

-The advice Kathryn found most helpful from her networks and mentors

-How she got help from other entrepreneurs

-How to tell if the investors are wrong not to invest- or if your idea and pitch is missing the mark

-How to figure out who your end users are- and why it is important

-Strategies and specific things to ask in order to get honest input about your company

In Kathryn’s money tip you will learn:

-Negotiations can be about more than just cash

-How to ask for signing bonuses, signing bonuses, flextime, vacation time, better titles.

-Why budgets for professional training are essential and how to negotiate for them

In my take you will learn:

-How to learn lessons from rejection, and incorporate them in your next venture

-The importance of taking the time to throughtfully plan and customize presentations and pitches

-How to level the playing field even when the other party is clearly more powerful. 

Episode links:

TheMuse.com

Kathryn’s book with Muse co-founder Alexandra Cavoulacos The New Rules of Work

Follow Kathryn and The Muse!

Instagram @kminshew @themuse

Twitter: @Kmin and @TheMuse and @TheNewRules

Facebook  https://www.facebook.com/thedailymuse

https://www.facebook.com/minshew

---

Transcription

Kathryn Minshew:
If you tell someone you're the founder of a company and ask for their input, they are more likely to give you positive impact because they don't want to hurt your feelings. If you tell them that you're a consultant helping a company understand how its market positioning lands, or helping a company better understand what it's doing well and what it's not, people are much more likely to give you totally unfiltered feedback for the series A because I was running a process.

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

Bobbi Rebell:
Hey, everybody. This is an episode about rejection, and what you would do differently the second time around. How to tell were they wrong to reject you? Maybe your message could be a little bit more on point. The Muse founder and CEO, Kathryn Minshew has told the story many times of how she and her colleagues were rejected 148 times when they when to raise money for their startup, The Muse. Once the company got off the ground, it has been a massive success, and many people would say, "Well, those 148 people, they must be so sorry that they rejected it." And of course, that is true to some extent. But also, Kathryn looks back and realizes she had a lot that she would do differently the next time. And in fact, she did do it differently when she went back for the next round of financing, and that's what we talked about. Here is Kathryn Minshew.

Bobbi Rebell:
Kathryn Minshew, you are a financial grownup. Welcome to the program.

Kathryn Minshew:
Thank you so much. I'm so excited to be here.

Bobbi Rebell:
And you are well known as the founder and CEO of The Muse, the amazing job site, and also well known for being rejected when you went to raise money. Tell me how many, 140 something times?

Kathryn Minshew:
148 times. It was like rejection for breakfast, lunch, and dinner, with a few meetings and noes inbetween for fun.

Bobbi Rebell:
And you are the queen of resilience, and one thing that you talk about in your book, "The New Rules of Work", which I should have mentioned to everybody. She is the author of a fabulous career book called "The New Rules of Work".

Bobbi Rebell:
You talk about your personal brand, and how important it is to define it. That fundraising and the lack of it for so long became your personal brand. So you brought with you a money story that has to do with what happened next, after you finally did get the initial funding and you went back for me. Tell us.

Kathryn Minshew:
Absolutely. Well, first of all, I'll say it's much easier as we all know to talk about failure once you've moved past it. So it became much easier to tell the story of the 148 noes after we had already successfully raised our series A and B rounds. So we've raised almost $30 million in venture capital so far for The Muse.

Bobbi Rebell:
Amazing.

Kathryn Minshew:
It's been a totally wild ride. So my financial story involves what I set out to do, or rather what I did in the series A to ensure that we had an outcome that was very different than the seed round. Because, obviously, I knew how important it was for that next round, to get it right from the go-ahead. And so to try and condense the story into something very quick, we wanted to go out and initially we were thinking about raising six to $7 million. But actually given the advice that I got while preparing for a fundraise, we were actually told to start out saying we were thinking five to six or five to seven, and then slowly let the demand build. So instead of us going out for a big number and being less sure if the market would respond, start out with a smaller number. And then, if the market is really excited about our business, let the negotiations and the demand push it up, which ended up working really well for us because we ended up raising 10 million after we had overwhelming demand.

Kathryn Minshew:
I also was incredibly structured about the process probably because I was a little bit paranoid after having such a difficult time with our seed round. So ahead of time, I really worked the story, got all of our metrics out there. I thought about how best to position them, which numbers to lead with, what to put first so that we could really grab people's attention. We were obviously lucky in that we had really great revenue growth and a lot of very strong metrics.

Kathryn Minshew:
And then, I actually created a spreadsheet. I took all of the investors that I was even remotely interested in talking to. I put them in a spreadsheet. Divided it up by location, so that when I was in New York, San Francisco, Boston, Chicago, DC, et cetera, I could meet with people who were there. Then, I included information about whether they had invested in any similar companies, any competitors. Any companies that might give them a better understanding into what we did at The Muse. I would include notes from different meetings. I actually would also rank how excited I was after each meeting to continue conversations, so I could prioritize the ones that I was most excited about. I would say that really helped to keep me on track, and so we were also able to run a pretty tight process, where we pinned all of our first meetings with investors to the same two-and-a-half or three-week period.

Kathryn Minshew:
It was really interesting because in the seed round, we had a lot of trouble with investors saying, "Oh, I'm busy, right now. But how about in a month?" I wasn't confident enough in the business, so we would just take whatever we could get for the series A because I was running a process. I would write back to people and be like, "You know I'd love to talk, but unfortunately, I need to get all of our first meetings done by X date. So I can push it a few days, but let me know if you're going to be able to make it work. And if not, I'm totally fine. We'll keep in touch and maybe there'll be another round that you can participate in." And what was fascinating is a lot of people would say, "Oh, let me move around my schedule. Absolutely, I can make it work." And suddenly, we were negotiating from a more even position. And the ones that weren't able to or the ones that said, "No, sorry. I can't do it," they probably would have never backed the company to begin with.

Bobbi Rebell:
True. Do you think looking back, obviously when you were going for the most money, the second round, you were a stronger situation to begin with. But had you used the techniques that you were now using that you just talked about, would you have had more success the first time?

Kathryn Minshew:
You know, maybe. It's so hard to know because the seed round for a startup is really different than later rounds because people aren't necessarily looking at your metrics. They are to some extent, but they're really betting on you. And I think the fact that it was my first proper company that I was fairly young at the time, this was six-and-a-half years ago, so it was very early in my career. And I think that plus the lack of knowledge or understanding about what we were trying to do in the business were some of the biggest concerns. So I do think we could have had a better time and controlled the process a bit more, but I also think there were just some fundamental and structural things that we had to get through and really prove on very limited capital before we could really go out and successfully fundraise from bigger investors.

Bobbi Rebell:
So now, what is your advice to listeners and especially want-to-be entrepreneurs that are looking to raise money, start businesses, and especially to young women?

Kathryn Minshew:
I would say, firstly, you can't understate the importance of perseverance because it is so hard in the early days. But I think that doesn't mean that you just keep doing the same thing without adjusting your tactics and thinking about how you could be more strategic. I found it to be so invaluable to get the advice from others, especially other female entrepreneurs. Because sometimes we have a lot of great friends who are entrepreneurs, who are men, but sometimes the tactics or the approaches or behaviors that would work for them, didn't work the same when I did them because of unintentional or unconscious bias or other things. And so I found that it was really helpful to surround myself with a network of entrepreneurs of both genders to get a lot of advice, to test out different approaches to see what felt natural and normal to me. Because if it feels too unnatural to you, investors will probably pick up on that, and it won't help you communicate that confidence that you are looking for when you're starting to talk to investors about your business.

Bobbi Rebell:
So one last question about this for our listeners, how do you know the difference between maybe your idea just isn't that good, and that's why you're not getting funding and you should stop, or you should persevere as you did because your idea just isn't hitting the right people at the right time with the right message?

Kathryn Minshew:
Absolutely. So you've just gotten to the crux of what makes this so hard, which is that there is no silver bullet, and you will never have 100% confidence or certainty either way, which is incredibly difficult. However, I think there are a few things you can use to help you directionally get that sense of whether your business is likely to be successful. The first, and I think the most important is to figure out who are your end users and do as much as possible to get unfiltered feedback from them.

Kathryn Minshew:
For example, if you tell someone you're the founder of a company and ask for their input, they're more likely to give you positive input because they don't want to hurt your feelings. If you tell them that you're a consultant helping a company understand how its marketing positioning lands or helping a company better understand what its doing well and what it's not, people are much more likely to give you totally unfiltered feedback, and you need that unfiltered feedback when you're trying to ascertain if you really need to keep pushing forward on your business.

Kathryn Minshew:
So in my case, even though we were getting rejection, after rejection, after rejection from a lot of investors, we were hearing things from our users and from people who were signing up to use The Muse that indicated we had tapped a nerve and we were on a path that people love. They wanted us to use the product. They'd say I love The Muse, but can you do these five things? Make it better here. Change this. That's all positive feedback because that shows you that there is a need. You just have to keep getting better, and I think that is what gave me the oomph to keep going. But I will just call out it's not like I knew the whole time, oh my gosh, this is a great idea. I just have to keep going. I definitely struggled with whether I should accept that these people that were much more experienced than I, that were successful investors, maybe they knew something I didn't, and I just had hubris.

Bobbi Rebell:
All right. Let's do a money tip. You are the career guru, and you have so many amazing ideas and tips in your book. I wanted to pull some out of there and get maybe your favorite tips that people can use in their careers, and their ventures that they could maybe put to work ASAP at their next job interview or their next negotiation, what have it.

Kathryn Minshew:
I thought through a lot of different things I could share here, and the one I came up with that I wanted to talk about today is the fact that when you negotiate, it is not just all about cash and I think it can be really empowering to realize that because so many of us have anxiety about negotiating a salary, negotiating a raise. Whether it's at the beginning of a job search, or when you're getting a promotion. But I would encourage people, remember that there are a lot of other things you can negotiate for.

Kathryn Minshew:
So obviously, base salary is the thing that people talk about most. But what about signing bonuses, performance bonuses if you achieve certain things? You can also negotiate for flex time, for vacation time, for a better title that might help you in your career. One of the most creative things that I've heard is people negotiating for a budget for professional development and training.

Bobbi Rebell:
Specific money. In other words, not just saying, "Will you send me," in theory. It's very specific.

Kathryn Minshew:
Oh, very specific. In fact, there was someone at an organization that had mandatory salary bans that the leadership wasn't able to go beyond, and so she said great. Why don't you dedicate ... I think it was five or $10,000 towards training development conference that will include my travel, and that will help level me up to be a better employee for you, to let me do my job better, and it won't invalidate the salary cap. This will just be another way that you're investing in my growth, and they said yes, and I think that is such a great example of creativity when it comes to negotiation.

Bobbi Rebell:
Amazing. That's such great advice. Thank you so much. Tell us quickly before we wrap up, what are you guys up to at The Muse these day, and where can people find you?

Kathryn Minshew:
Absolutely. So people can find me at The Muse or @kmin on Twitter. As a company, we are doing a lot right now, but we have been really focusing on we rolled out a new feature called Discussions on TheMuse.com, where people can ask and answer each other's questions. So if you have a career question or you want to learn more about negotiating a raise, we've got a way now to get advice from our community and hear other people's stories. And then, I'm also just kind of fascinated down the road by continuing to explore this idea of how people make the best career decisions, how they find the right fits, and how we help companies tell their stories in a more genuine and authentic way that isn't about just come work here, we're great, but really shares the information people need to know to decide do I want to be part of that organization, or be part of that company?

Bobbi Rebell:
Hey, friends. Here's my take on what Kathryn had to say.

Bobbi Rebell:
Financial grownup tip, number one. Like she did, do your homework, including learning what went wrong the first time. Even if you think the companies or whomever you were pitching to were wrong to reject your idea, we all have room for improvement. Kathryn went out and asked for advice, for example, about how much money to ask for. She actually went for a smaller number based on the advice as a strategy, and ended up raising more money, so it worked. She was also much more organized and structured in her preparations the second time around. She was specific to each company, and deliberate in her presentation. She planned geographically, so she could be efficient with her time. Kathryn even ranked how excited she was about prospects, so she could prioritize and focus on her resources and the best alow there.

Bobbi Rebell:
Financial grownup tip, number two. Stand up for yourself, even if you need them more than they need you. In Kathryn's second round, when prospects said they didn't have the time to meet with her any time soon, she pushed back and was not only able to get them to the table faster when they were interested, but also to level the playing field for a stronger negotiating position.

Bobbi Rebell:
Thank you for listening to this episode of financial grownup. Please subscribe if you have not already. Reviews are great if you have just a few minutes. You can follow me @bobbirebell on Twitter, @bobbirebell1 on Instagram, and learn more about the show at BobbiRebell.com/FinancialGrownupPodcast. I hope that you all enjoyed this episode of "Financial Grownups" with The Muse's Kathryn Minshew, and that we all got one step closer to being financial grownups.

Bobbi Rebell:
"Financial Grownup" with Bobbi Rebell is edited and produced by Steve Stuart, and is a BRK Media production.

Fran Hauser became a financial grownup very young, helping her immigrant parents build their businesses by doing the books and serving as a liaison to clients as early as 1st grade. The author of “The Myth of the Nice Girl, Achieving a Career You Love Without Becoming a Person You Hate” now applies those early life lessons to her search for  startup investment opportunities.   

 

In Fran’s money story you will learn:

-How growing up as the english speaking daughter of Italian immigrants impacted her path to being a financial grownup

-What it was like to be preparing invoices for her parents businesses starting in 1st grade

-What she learned about risk and investment from observing her father’s strategies

-How her parents took risks despite their disadvantages, and the impact that had on her current risk tolerance

-How she integrates those skills when she considers startup investors in her current role as an early stage investor

-The specific characteristics she looks for when evaluating startups

In Fran’s money lesson you will learn:

-How to conquer fear of mistakes

-The importance of integrating kindness and respect

In Fran’s everyday money tip you will learn:

-How Fran teachers her children about money using a 5 gallon water jug

-How much they saved

-How they spent the money!

In My Take you will learn:

-The impact of saying Thank You instead of Sorry

-How the correct tone in which a message is delivered can make it more effective

Bobbi and Fran also talk about:

-Her new book The Myth of the Nice Girl: Achieving a Career You Love Without Becoming a Person You Hate

-What inspired Fran to write the book after more than a decade of planning

-The unique scripts that are in the book that readers can use to execute the strategies Fran teaches

-What the Nice Girl Army is, and how you can laern more about it

-Fran’s plans now that the book has been a best seller!

Episode Links:

Learn more about Fran at her website Franhauser.com

 

Buy Fran’s book! http://www.franhauser.com/nicegirl/

 

Follow Fran!

instagram fran_hauser

twitter @fran_hauser

  

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Transcription

Fran Hauser:
When my father was asked to go look at a job, a potential client, and give them an estimate, he wasn't able to understand the directions to actually get to the house. So I would listen in on another phone and write down the directions, and then I would go in the car to the residence, and then I would get out and I basically be the translator.

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, that was author, Fran Hauser. Now, this is a very big interview for me because she is very much in demand after her book, The Myth of the Nice Girl: Achieving a Career You Love Without Becoming a Person You Hate, became a huge hit this summer. It has many of us rethinking the things that women thought we had to do to succeed. No more mean girls, and there's a lot in there for men as well. So stay with me everyone, this is not just for women listeners. Special welcome to our new listeners, if you are returning, thank you as well for your support. We keep the shows to about 15 minutes so you can easily fit it into your busy schedule, but we also release three episodes a week. So feel free to binge if you're commuting, just make sure to select auto download after you subscribe so that they'll be in your feed automatically. It's all about making it easy.

Bobbi Rebell:
Let's get to Fran. After a long career in media, which included being the president of digital at Time, she is now an investor in startups, and she got a lot of the training for that from her upbringing being a very active part of her parents businesses. Here is Fran Hauser.

Bobbi Rebell:
Hey, Fran Hauser, you are a financial grownup, welcome to the podcast.

Fran Hauser:
Hi Bobbi, great to be here.

Bobbi Rebell:
Congratulations on the incredible success of your book, The Myth of the Nice Girl: Achieving a Career You Love, circled in a bright red circle, Without Becoming a Person You Hate, big X over the 'Hate' of course. Since the book's come out it's been named so many different things, including an Amazon Best Business Book of 2018, best new book by People magazine and Refinery 29, most anticipated title of April by Bustle, I mean I could just basically go on. Congratulations on all of that, Fran.

Fran Hauser:
Oh thank you. It's really been amazing, I feel so grateful.

Bobbi Rebell:
You came to us with a story that's really meaningful, because it has to do with your whole family and the money experiences that you learned growing up from your parents, in the town where my sister now lives, Mount Kisco, and you were their bookkeeper in their businesses in first grade, tell us about that.

Fran Hauser:
Yes. So my parents are Italian immigrants who moved to Mount Kisco, as you said, and like many immigrants it took a lot of courage to make this move. They were uneducated, they didn't speak the language, and they were moving to a place that was completely foreign to them. What each of my parents did have though, was a skill. So my father was a stonemason, my mother was really good at sewing, so they both started small businesses. My dad a stonemeasonry business, and my mom opened up a tailoring shop with her best friend. Being the oldest of four, they needed my help, especially when it came to communication. So when I was in first grade I was preparing all of my dad's invoices. One memory that I have is I could only add at that point in time, I couldn't multiply yet, so my aunt actually created a sales tax chart for me, so that if the monthly maintenance was $300, I could see exactly what the sales tax was, and then just add the two numbers together.

Fran Hauser:
So that was first grade, and then even in middle school I was helping my mother with marketing. So helping her come up with a logo, and getting different marketing and sales materials printed. So I got exposed to business at a very young age, and even understanding things like revenue, and expense, cashflow, you know seeing that when more cash comes in than goes out, decisions that need to be made around what to do with that extra money. It was really interested watching my dad because he took some calculated risks and invested in both commercial and residential real estate, which proved to be fruitful. I would say at a very, very, very young age I played this role of bookkeeper/marketer/general manager.

Fran Hauser:
Another vivid memory I have that I'll just share with you is when my father was asked to go look at a job, a potential client, and give them an estimate, he wasn't able to understand the directions to actually get to the house. So I would listen in on another phone and write down the directions, and then I would go in the car with him and we would actually drive to the residence together, and then I would get out and I would basically be the translator for him. So that was my childhood, pretty unconventional.

Bobbi Rebell:
Wow. Very unconventional. How did you assume this role? Were there specific deliberate conversations, or did it just evolve organically as you grew up in the household?

Fran Hauser:
It really evolved organically, because I was the oldest. Really, these things just fell on me. It made sense, if something was broken, even in the house, and needed to be repaired, I would be the one to call the plumber or the contractor, and at the time it felt really hard. It was frustrating, for sure, at times because I just felt so different from all of my "American" friends, who were doing sleepovers and play dates, and I had so much more responsibility. Obviously, looking back, it was actually such an incredible experience, because I learned so much, not just about business but also about risk taking. Watching my parents, who had so much going against them, they were at such a disadvantage, but they were still able to take these risks. Whether it was building these businesses, or investing in real estate, and if you look at my career, I've taken many risks in my career. I've reinvented myself several times. I left Coca-Cola and the late nineties to go to an early stage internet company, Movie Phone. Or five years ago, I left a really comfortable job at Time Inc. to move into startup investing.

Fran Hauser:
So I haven't been afraid to take risks, and I think a lot of that comes from seeing how disadvantaged my parents were, and feeling like if they could take risks, I should be able to.

Bobbi Rebell:
I wanted to ask you, so you mentioned, and I was going to bring this up, that you now are a startup investor. How did this background in business and understanding risks, and understanding strategy and marketing, and even just the basic economics of business, how does that inform your approach as an investor now?

Fran Hauser:
So I think in a lot of ways. For starters, when I'm evaluating the entrepreneurs I'm looking at them and I'm saying, "Do they have the capacity to take risks? Will they jump in with both feet?" And I'm also looking at what kind of mindset do they have? Are they optimistic? I always felt like my parents approached every single venture with such optimism, and with an abundance mindset, and treating people kindly and with respect. So those are things that I really look for in an entrepreneur, and then the other side of it is the brass tactics operational side, which is I feel like I'm really good at looking at financials and understanding what the risks are, really getting nitpicky when it comes to the assumptions that are being used. So I feel like I can look at a PnL pretty quickly, and projected cashflows, and all that good stuff, and I'm just co comfortable. I'm so comfortable with numbers, and I'm so comfortable with looking at forecasts and really trying to make sense of it, and also understanding is there a there there?

Fran Hauser:
The other part too, I would say, is just understanding markets, understanding consumers. I think that also comes from just having spent so much time with my parents clients. So it's impacted me as an investor in so many different ways.

Bobbi Rebell:
So what is the lesson then, for our listeners from this, that they can apply to their businesses, and to some degree, to their lives?

Fran Hauser:
I would say the lesson is to not be afraid to take risks, and when you do so, really approach it with a mindset of abundance and optimism, and don't be afraid. Don't be afraid to go all in and to jump in with both feet, and then also the last thing I would say, which really ties back to the book, is to treat people with kindness and respect, because I think you look at my parents who barely spoke a word of english, and they were still able to communicate through a lot of nonverbal cues, and a lot of that had to do with being charming, and being kind, and that will take you far.

Bobbi Rebell:
Yeah, because the book is really all about being nice, but in a strategic and smart way.

Fran Hauser:
Yes, being nice in a way where you're not a pushover, and you're not veering into people pleasing territory. It's really about how you can be both nice and strong. Those two things are not mutually exclusive, and that you bring both of those into virtually any situation at work.

Bobbi Rebell:
Alright, let's talk about your everyday money tip, because one thing that I love about this is it's very specific, and tangible, and something we can all do pretty much right away.

Fran Hauser:
Yeah, I love this. So what we do in my house is, instead of a normal piggy bank, we collect coins in a five gallon water jug. The kids love it because it's so much bigger than a piggy bank, and it's clear, so you can see the progress. The last time we cashed it in the coins were worth $4000, and it took us several years to fill it up, but it's just a really fun way to teach your kids about saving and about goals.

Bobbi Rebell:
Where do you cash it in, what's that experience like? Is it one of the machines, or do you bring it to a bank?

Fran Hauser:
It's actually hysterical because it's so heavy, so what you have to do is we put duct tape over the top of it to close it, and then we literally roll it-

Bobbi Rebell:
Oh my God.

Fran Hauser:
We have to roll it down the-

Bobbi Rebell:
You could get a smaller container, Fran, you know that?

Fran Hauser:
I know, but it's part of the experience, I guess. So much fun, and then we literally bring it into the bank. The teller always has so much fun with it, because it's not something that they usually see.

Bobbi Rebell:
So what did you do with the $4000 then?

Fran Hauser:
The first time we did it my husband and I, it was actually pre-kids, so we ended up spending it on a really great spa vacation, which was great. Just the two of us.

Bobbi Rebell:
That works.

Fran Hauser:
That works, right? And now with the kids we're just starting to talk to them about, "Okay, what do we want to spend it on?" And that's also really fun, because it allows you to bat around ideas and then have something that you're really excited about, you have something to look forward to.

Bobbi Rebell:
Alright. We'll have to get an update and put it in the show notes as to where the money goes. I want to spend just a couple of minutes talking about your book, because it's had so much impact.

Fran Hauser:
Yes. The book is really my response to a question that I get asked all the time, which is, "How can you be so nice, and still be successful?" It's just a topic that I've found myself talking about quite a bit, and it's something that I really believe. Being nice, and being empathetic, and collaborative, and having an abundance mindset. All of those things have really served me well in my career. If I think about some of the bigger promotions that I received, or if I was asked to work on a really high profile project, a lot of that came back to my ability to build relationships and earn trust, and a lot of that goes back to being nice.

Fran Hauser:
So the book is really actual, I mean it's inspiring, but I think what makes it special is I am such an operator at heart that I really wanted to make sure that we filled it with tips, and techniques, and scripts. There are so many scripts for navigating sticky situations.

Bobbi Rebell:
Yes, there are very specific things, because people think, "Well, this happens to me, what do I ..." they literally don't have the words. Like when someone takes credit for an idea that you had, you go into exactly what to do, which is important.

Fran Hauser:
Yes, and I have to tell you one really cool thing, just over the past week I've had three different women tell me that they all got really big raises using my advice in the book.

Bobbi Rebell:
Fantastic. And now, you're now working on this Nice Girl Army, right? That's your saying on social media, and you bring together all these different stories that relate to that.

Fran Hauser:
Yes. My Nice Girl Army is actually a group of ambassadors that I put together, probably about six to nine months ago. A lot of them are former mentees, or current mentees, they really love the message in the book, and they've really gotten behind the book. It's basically a Google group I've created where we all communicate with one another, and they've all been so helpful in promoting the book, and I think from a hashtag perspective, it's taken on this bigger movement feel to it. It's just been really fun to see women who I don't know reading the book and using that hashtag, and saying how much they love the book, and how much it's helped them.

Fran Hauser:
So I think in terms of what I'm thinking about next, it's really how do I take all of this great content that's in the book, and what else can I do with that content? So I'm just starting to think about some product extensions from the book, which is really exciting, and then still doing my day job, which is investing and advising, which is something that I've put on pause a little bit over the last few months as I've been working on the book tour. So I'm really excited to get back into that as well.

Bobbi Rebell:
Cool. Well, I want to make sure everyone can, first of all get the book if they haven't gotten it yet, but more importantly, also know where to find you and follow to get updates on all of these different projects.

Fran Hauser:
Yes, definitely. So my website is FranHauser, H-A-U-S-E-R, .com, and you can get all the information about the book and where to buy the book there. My Instagram and Twitter handle is the same, it's Fran_Hauser, and of course you can always connect with me on Linkedin as well.

Bobbi Rebell:
Wonderful. Well, thank you so much, Fran. I love the book, and if there's anyone out there who hasn't read it yet, please pick it up, it's wonderful, well worth investing the time. Thank you Fran.

Fran Hauser:
Thank you Bobbi.

Bobbi Rebell:
Hey everyone, so Fran and I really just scratched the surface in that interview, here's a little bit more wisdom from her book. Financial Grownup tip number one; one thing that Fran talks about in The Myth of the Nice Girl is the importance of how things are presented, the tone that you use in your voice. So you can be firm, and not be a pushover, and still be nice. Think about the way that you say things.

Bobbi Rebell:
Financial Grownup tip number two; don't say sorry so much. Try replacing it with "Thank you." Fran points out that many women apologize of things that not only were not their fault, but also they aren't really sorry about. For example, not being able to attend an event. She would often apologize for declining an invitation, instead, she advises to simply say, "Thank you for the invitation." And say that you will not be able to attend.

Bobbi Rebell:
If you have not already, please hit that subscribe button and be in touch on Twitter, @BobbiRebell, on Instagram @BobbiRebell1, and on Facebook I am @BobbiRebell. And learn more about the show at bobbirebell.com/financialgrownuppodcast. And thank you to the wonderful Fran Hauser for helping us all get one step closer to being Financial Grownups.

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

Carol Roth’s father left a priceless gift when he passed. Now, she is using that to help others map out their plans for everything from their social media accounts, to their cryptocurrency and bitcoin assets, using her innovative FutureFile system. 

 

In Carol’s money story you will learn:

-How losing close members of her family and loved ones impacted her outlook on life, and on finances

-How she got a credit card at the age of 10!

-Why her dad was so concerned about preparing his children for his eventual death

-How her dad created a filing system and what it included

In Carol’s money lesson you will learn: 

-How Carol and her siblings used the file her dad created

-Exactly how much money it saved her and her family, both in actual money but also in the time they did not have to spend on estate related issues

-The mental relief the family had because of the system their dad had put in place

In Carol’s every day money tip you will learn:

-Why Carol believes no one should own depreciating assets

-How we can enjoy things like private jets without having to own them (JK)

-What kinds of investments we should be making instead of in things like cars and boats and planes

-The best use of our transportation dollars

Carol also talks about her business Futurefile.com

-Why she created it

-What it contains including not just places for wills and basic estate planning but also places to put cryptocurrency keys if you have bitcoin, and how to manage social media

In my take you will learn:

-The importance of making a plan, any plan, for when you are ill or pass away

-My experience knowing my mom’s wishes when she passed

-My take on whether you should own a car, and why I don’t fully agree with Carol

-Alternatives ways to save money if you do choose to have a car

 

EPISODE LINKS

Learn more about Carol Roth at https://www.carolroth.com/

Learn more about FutureFile at FutureFile.com

 

Follow Carol!!

Twitter @Caroljsroth

Facebook CarolJSRoth

 

Carol recommended not buying a private plane and instead using

NETJETS.com

More about Carol!

Carol Roth is the creator of the Future File® legacy planning system, “recovering” investment banker, billion-dollar dealmaker, investor, entrepreneur, business advisor, national media personality and author of the New York Times bestselling book, The Entrepreneur Equation.

Carol “plays herself on TV” weekly, having been a reality TV show judge (Mark Burnett’s America’s Greatest Makers on TBS), media contributor to outlets ranging from CNBC to Fox Business, and host of Microsoft’s Office Small Business Academy. She’s recognized internationally as a business expert and has worked with startups to the biggest companies and brands in the world on everything from strategy to content creation and marketing to billions of dollars in capital raising and transactional work.

Carol is dedicated to helping families prepare for and save time, cost and grief that comes with aging, medical issues and passing life events through her Future File products. She is a also former public company director and is a noted small business advocate. She invests in early and mid-stage companies as well.

Carol counts among her “accomplishments” having an action figure made in her own likeness, getting a standing ovation from Richard Branson and having the NFL follow her on Twitter.

 

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Transcription

Carol Roth:
He was very clear. Do not buy me the Cadillac of caskets, which I can tell you, if he had not told me that, there is no way I would have gypped out on dad in that moment. Knowing that he likes black and gold and things like that. I would have spent the money.

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, that was business expert, Carol Roth. She is author of the bestseller, "The Entrepreneur Equation." You may have also caught her as a judge on the reality TV show, "America's Greatest Makers" on TBS. She's also seen a lot on TV: CNBC, Fox Business. You probably caught her. Her latest venture is called Future File. It's an idea that grew out of her own personal experiences with losing loved ones.

Bobbi Rebell:
Before we get to Carol's interview, a quick welcome to everyone. As our regulars know, we try to keep the shows short to match your busy life. But if you're traveling, commuting and have more time, feel free to binge. You can learn more about Financial Grownup at bobbirebell.com/financialgrownuppodcast where you can also sign up for our newsletter.

Bobbi Rebell:
All right, let's get to Carol because this interview was a real wake-up call for me on a lot of things that I just don't want to deal with, but Carol is a force to be reckoned with. Here is Carol Roth. Hey, Carol Roth, you're a financial grownup. Welcome to the podcast.

Carol Roth:
Bobbi, it is so great to be here and to be all grown up with you.

Bobbi Rebell:
Oh, thank you. It is a process for all of us, let me tell you. Many people already know you but, for those who don't, you are a big personality on TV. You are an author of the bestselling book "The Entrepreneur Equation," and you also have a business which is really an important business. We're going to talk about it a little bit more in-depth later in the show. But, it also ties into your money story because your money story led to it. Tell us your money story, Carol Roth.

Carol Roth:
This started when I was a senior in college. So I'm mourning the loss of somebody I had been in a relationship for a year and a half. I go off. I start my career, and my mom was diagnosed with leukemia. A year after that she passed, the day after her 51st birthday. So then I'm mourning these two losses. Then my stepmother, a few years later, is diagnosed with lung cancer, and she passes away at age 55. So at this point in time, my father, who despite not having a formal education, was very financially savvy. My dad was a union electrician. It was amazing. He couldn't spell banana. He spelled it bana, but he was the type of guy, he opened up a credit card for me somewhere around age 10 to establish my credit history.

Bobbi Rebell:
Wait. You got a credit card at age 10? First of all, they let you have that?

Carol Roth:
They did. Back in the day with a cosigner, as long as he co-signed on it, they didn't care, right? After we endure all these losses he says, “If something were to happen to me, and you and your sister have been through this now multiple times, if something were to happen to me, you guys wouldn't necessarily be prepared. So I'm gonna help you prepare.” Dad kept giving us pieces of paper, and the pieces of paper were, "I don't want you to spend this much money on a casket, I just want this. I don't want you to have two services. I just want a graveside service. Here's my insurance policy for this, and here's my wishes on this." Every time he'd give us a piece of paper, he'd say, "Stick it in the file."

Carol Roth:
So we had this running joke that we had this death file. We go okay, dad, whatever. We just continually collected information. As I said, my dad wasn't formally educated. So, low and behold, five years ago in May, my sister calls me on the phone and is like, "Carol, you know that file that dad has? Grab it and meet me at the hospital. He has been in a freak accident."

Bobbi Rebell:
Oh, wow. This is just a paper file. This is not in any kind of cloud storage, on the computer, nothing?

Carol Roth:
No, this is literally a hard copy, accordion file folder with backs of envelopes, paper plates, envelopes, policies, wishes, this kind of amalgamation of information. Oh, and also keys, we had keys to his car, keys to security-

Bobbi Rebell:
So he made copies of the keys for everything?

Carol Roth:
Yes, everything.

Bobbi Rebell:
Okay.

Carol Roth:
Copies of everything, hard copies. So I literally, physically grabbed this file, Bobbi, and I run to the hospital. He had been in this horrible accident, and he was completely out of it, bleeding on the brain. They said, "Do you want us to operate?" We went through, said, "Okay, what does Dad say about this? Okay, Dad says that yes, he wants you to operate." So they went ahead and operated. When he came out, he just never recovered. He was just basically brain dead and being kept alive by machines. So we pull out the piece of paper, including the power-of-attorney that said that we have the authorization to make these decisions. Then we pull out the wishes that Dad had. Dad had said if we've gone through a relevant number of tests and we've gotten a few opinions and everybody's come to the same conclusion that the machines are keeping him alive, to pull the plug. We followed Dad's instructions, and obviously he did not make it. Then we had to go through laying the body to rest within a few days, all of the services and wrapping up his personal affairs.

Bobbi Rebell:
So what are the lessons for our listeners from your story?

Carol Roth:
The benefits that we got that you can get if you preplan is that we saved a lifetime of burden, which is priceless. I don't have to walk around shouldering did I make the right decision in this particular scenario? Should I have gotten another opinion? Because my dad had talked through it, he had written it down, I knew what his wishes were, You can't put a financial price on that. That is priceless.

Carol Roth:
The second thing, from a financial standpoint, is we saved more than 10000 tangible dollars, Bobbi. I'm not even joking. End-of-life costs, what people don't realize, are so incredibly expensive. Average just funeral and burial is $8500. Cremation with a funeral service is close to $7000. So just by going through this, we saved more than $10000, and then the five figures that we did end up spending on all of these sort of end-of-life things, he had put end-of-life insurance in place. So it's something that we didn't have to come up with that money or go into his estate and try and figure that out. So there's a tangible dollar savings.

Bobbi Rebell:
What's the money that you did not spend? Did you not have a funeral that he didn't want? What money did you save because of knowing his wishes?

Carol Roth:
So we saved money on the casket. If you go with a Cadillac of caskets, it could be 6500. It could be $9500. You can get one at Costco for $600. So he was very clear. Do not buy me the Cadillac of caskets, which I can tell you, if he had not told me that, there is no way I would have gypped out on dad in that moment. Knowing that he likes black and gold and things like that, I would have spent the money. So he told us not to do that. He told us to only have a graveside service. So instead of going into the funeral home and having the whole spiel there and then moving everybody to graveside and having a second spiel there, he didn't want that. He said just do the graveside. He didn't want flowers. He didn't want accoutrements. He didn't want programs.

Carol Roth:
Then I'm Jewish, so we do something called sitting shiva, which is similar to sort of visitation in the Christian religion. For that, he said, "Go to our clubhouse. Do it just the day of. Just have this and that and the other thing." By the instructions that he put out, we saved money there. So when we added it all up, it was well into the five figures. Then, as I said, we ended up spending five figures on stuff on top of that, but just the five figures of savings was incredible.

Carol Roth:
Then the other cost that is an indirect cost but was so incredibly valuable is he saved me hundreds of hours of time. If you look at how much I make in an hour, that's tangibly multiple six figures. So 200 at least, maybe 300, hours in trying to track down all of his accounts, all of his policies, making sure that we had everything, trying to find things like that safety deposit box key, making sure that he didn't have a treasure hunt for us somewhere where there was money hidden that we didn't know about. That's real money. I know people don't think of it that way. Sometimes people don't think of their time as money, but there is a true, tangible money cost associated with it.

Bobbi Rebell:
All right. You also brought with you a money tip. Awkwardly switching topics, but this has to do with depreciating assets, not investing in things that are going to go down in value.

Carol Roth:
Right. So basically, if it drives, floats or flies, you don't want to own it.

Bobbi Rebell:
Wait. So I shouldn't aspire to get my private jet?

Carol Roth:
No, buy a NetJet card because when you have an asset, something that quote, unquote "invest in," that decreases in value every time you use it, that's not the kind of investment that you want to be making. But if you have a car and you're living in the city or you're living somewhere else and you don't drive that often, or maybe you're a multiple car household and you have an extra car that you really can do without, sell it. Because the amount of money that you have tied up in that car plus ongoing maintenance plus the cost of gas plus the cost of insurance, you have to license it every year, and some places you have to pay for parking, it's a huge amount of wasted money. We have so many options for transportation now. You have these on-demand services like Uber and Lyft. Obviously, taxis are becoming more competitive because of that. If you do need to go somewhere for a couple of days, you have rental car agencies that will actually deliver the car to you.

Carol Roth:
So if you go through and you write down how much it's going to cost you to take those couple of Ubers and maybe to rent the car a couple of times a year and you add all that up versus how much money that you're spending invested in that car and all of these other maintenance items and you compare the two, I guarantee you there will be no comparison.

Bobbi Rebell:
All right. I do want to talk about your latest project because it came from these experiences with loved ones. It's called Future File, and it's genius. So please tell us a little bit about it.

Carol Roth:
When we told people our story, the feedback was so often, "I need to do that for my parents or grandparents." Or "I need to do that for my spouse." Or "I need to do that for myself. I don't know what's going on in the household." Or "We've got kids." So we took this prototype that our dad created for us, and we created a full kit called Future File at futurefile.com. It's basically a roadmap that walks you through everything you need to organize all of your wishes and information for either aging, passing or other family emergencies. So if somebody has a stroke or your house is burning down or whatever it is, it's one location that literally has access to everything you could possibly need. It helps you organize your wills and your powers-of-attorney. Also, your social media wishes, the budgeting that we talked about for long-term care, aging care, end of life. Even a place to put your cryptocurrency keys if you have bitcoin.

Bobbi Rebell:
Oh, wow. I know because you could have that, and then no one can get to it.

Carol Roth:
Well, that's the thing.

Bobbi Rebell:
They have to know.

Carol Roth:
Literally, it's not like a bank account that eventually, after hours and hours and hours and showing death certificates and going through probate, that you can access. If somebody doesn't have those keys, it's lost forever. So we didn't want to create any barriers to people doing this, so there's no subscription model. It's one-time. It's just under a hundred bucks.

Bobbi Rebell:
Oh, wow, that's it? That's amazing.

Carol Roth:
Yeah, if you listen to the story and you understand those burdens, it makes sense. So do it. Prepare yourself, prepare your family, and you'll help us give that gift that our father gave to us to you and your family.

Bobbi Rebell:
Where can people find out more about you and Future File?

Carol Roth:
Yes. So Future File, go to futurefile.com. Tons of information there. The best place to find me, especially if you have a little bit of an odd and off-color sense of humor, is on Twitter at caroljsroth.

Bobbi Rebell:
Love it. Thank you, Carol.

Carol Roth:
Thanks so much, Bobbi.

Bobbi Rebell:
So that was pretty heavy stuff but important to hear. I personally would prefer to just live in denial, but if we're going to be grownups, it's going to catch up to us sooner or later.

Bobbi Rebell:
Financial Grownup tip number one. I think Carol did a great job getting her point across. No plan is actually a burden on your survivors. So make a plan. Include traditional assets, but also, if you can, leave instructions for the less tangible things. Try to envision the kind of decisions that will be made if you would pass or if you were very ill. If you don't want to decide for them, empower them to make the decision that they think is best without worrying about what you would think. When my mom passed, she was very specific about a few things for my dad and for me and for my siblings, and that gave us all comfort and the freedom to know she was okay with our choices.

Bobbi Rebell:
Financial Grownup tip number two. Carol talked a lot about getting rid of cars. So here's the thing. She may be right financially, but let's face it, for some people, it's just part of their lifestyle. It's like asking someone whose only joy is that latte to give up their latte. They need to cut something different. You can find a workaround. So in this case, maybe cut expenses that are related to the car or the asset that is depreciating. One option, renegotiate your insurance. Shop around. Consolidating your insurance can also be a way to lower the cost. Also, if you park in a garage, maybe you can park on the street. Can you renegotiate the garage fee? Is there a tax break associated with the garage if you are resident? We get that here in New York City. If you park at work, can your company reimburse or subsidize the parking? For those of us who have private jets, for example, we know fuel is getting more expensive. One way to pare back costs ... okay, I was just kidding about the whole private jet thing. Anyway, moving on.

Bobbi Rebell:
Thanks to all of you for supporting the show. Hit subscribe if you can, and we'd love reviews and feedback. So thank you in advance if you can squeeze that into your day. Let's all try to find time soon to make a future file. Thank you, Carol Roth, for helping us all get one step closer to being financial grownups.

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

Broadway Roulette founder and CEO Liz Durand Streisand literally gave birth to her child just as her business came to life. Having that dual focus on the baby and Broadway Roulette created the perspective and balance to keep push past challenges and grow them both. 

Celebrity journalist turned CEO creating a new marketplace model to buy and sell event tickets. After a decade in the trenches of New York's entertainment scene, Liz saw the opportunity to pair expiring inventory to cultural events with consumers who were being bombarded by choice overload -- and Broadway Roulette was born. Broadway Roulette's key investors include Jesse Draper of Halogen Ventures and Randi Zuckerberg of Zuckerberg media. In 2018, Broadway Roulette was accepted to Morgan Stanley's Multicultural Innovation Lab, an accelerator focused on female and minority-led companies positioned to disrupt industries.

In Liz’s money story you will learn: 

-About Liz’s background as an entertainment and lifestyle journalist journalist covering celebrities like the Kardashians

-How she and her co-founder husband came up with the idea for affordable tickets to ALL Broadway shows

-Why the business morphed from a hobby to a business

-How they launched the business at the same time he was making a career change and their child was born, and the challenges that came with it

-How being a busy mom impacted the business- as a positive

In Liz’s money lesson you will learn:

-The importance of choosing a life partner that really sees you as a true life partner

-How Liz breaks down big projects into smaller and more manageable tasks

In Liz’s every day money tip you will learn:

-Why Liz feels hiring a stylist is worth the money

-How it will save you money

-Specific ways to find the stylist that is right for you and your budget

In my take you will learn:

-How to get tickets to Broadway shows and other live events at deep discounts

-Ways to find free tickets to events and shows

Episode Links

Learn more about Broadway Roulette at Broadwayroulette.com

Instagram: https://www.instagram.com/missdurand/

Instagram: https://www.instagram.com/broadwayroulette/

Twitter: https://twitter.com/missdurandnyc?lang=en

Twitter: https://twitter.com/BWayRoulette?lang=en

  

Here are some options for discount and free Broadway tickets:

http://www.playbill.com/article/broadway-rush-lottery-and-standing-room-only-policies-com-116003

https://www.nytix.com/Links/Broadway/lotteryschedule.html

 

Great article in the penny hoarder on getting free and discount theater tickets!

https://www.thepennyhoarder.com/smart-money/discount-theatre-tickets/

 

Seat fillers!

https://seatfillersandmore.com/

https://www.theaterextras.com/about.aspx

 

You could even go to the Oscars!!

https://www.refinery29.com/2018/01/189571/oscars-seat-filler-academy-awards-interview

---

Transcription

Liz Durand:
One day I was at the box office in labor, but didn't know it, buying tickets at the box office. Two days later I was back at the box office with no baby, buying tickets again. And the box office manager, there's two that are women, the one who was at the window that moment looked at me and was like, what just happened? Where is your baby?

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

Bobbi Rebell:
Hey friends, it is summer time to get out and do some fun things, oh but that budget. Well, this show is for you wherever you live. I hope this inspires you to go to live theater or go to a concert or whatever you enjoy. Just get out because it can be affordable in part because there are more and more disruptors in the entertainment business, like our guest who heads up Broadway Roulette. Welcome everyone. Thanks for joining us. If you have not already, please subscribe to the podcast, we try to keep it to about 15 minutes to fit easily into your schedule. If you have more time, you can binge on, more episodes, especially if you're in a long car ride, going somewhere to visit friends. Maybe you're visiting some friends in New York. Our guests, Liz Durand Streisand knows all about that. Before she and her husband became parents, they had a lot of friends staying with them in their New York City apartment because they had something you don't hear about very often here in New York City, a spare bedroom. So their friends would come and they would want to see shows, but the big Broadway shows, the ones that they had heard of, we're always either sold out or ridiculously expensive. Fast forward, Liz and her husband came up with a way to disrupt the old Broadway discount model. Let's spend a money story with Broadway Roulette's Liz Durand Streisand.

Bobbi Rebell:
Liz Durand Streisand you're a financial grownup welcome to the podcast.

Liz Durand:
Thank you for having me, so excited to be here.

Bobbi Rebell:
And I'm excited to learn more about Broadway Roulette. What is Broadway Roulette?

Liz Durand:
Broadway Roulette, it's basically price Priceline for Broadway with only two levels of bids. So you go onto the site and tell us when you want to go and how many tickets you're looking for and set some basic criteria about the type of show you want to see or don't want to see. And then the morning of the show you get an email that's like, surprise this is the show you're seeing and all the tickets are a flat price, so you don't have to like negotiate with your friends or look for discounts are stand in lines.

Bobbi Rebell:
Love that. We're going to talk more about that in a minute, but I want to talk about your money story because it ties into Broadway roulette. This happens all the time I feel, people are going through major life changes in their personal life. They're having babies, they're getting married, they're moving. All these things are happening and that is exactly when the greatest business opportunity ever just drops in their lap. Tell us your money story.

Liz Durand:
So I liked to be very orderly and very type A, which made me a good New Yorker for many years and I wanted to do things in the order that made sense and I saved 10% of my paycheck every month and did all that good stuff. I had a career as a journalist. I've been doing it for about a decade. I was very settled. It was very steady.

Bobbi Rebell:
And you're being modest, you were a very top entertainment journalist.

Liz Durand:
Yeah I was probably like the most prolific entertainment journalist in New York City for a decade. I wrote for every major publication that anyone has read on their phone, on the subway, on the way to work, hoping no one is seeing the story they're reading about the Kardashians. That was me.

Bobbi Rebell:
But they loved it.

Liz Durand:
But They loved to, and I actually really enjoyed it. And I would married. And then I finally was able to have a baby, which was very exciting, but at the same time that that happened HIS business that we had started kind of, not like as a joke, but as a hobby. It was sort of a side project just to see if anything would happen. And you know, two days after I gave birth, we landed this major contract with our first Broadway show and it was time to decide like go big or go home. He was actually in a very cushy family office job and it was about six weeks after I had the baby that he decided that would be a great time for him to leave that job and go basically be what I call a financial, a cowboy, to strike out on his own.

Bobbi Rebell:
And also in that time period this financing comes through.

Liz Durand:
Yeah, it was right around the same time. We had been sort of casually talking to friends and family about, hey, would you want to give us money for this weird thing we built in our living room? And that none of us know really that much about. And it turned out that the answer was yes. We met with two, they were technically venture firms but they were friends and they both said yes within a few hours of meeting us and that kind of, the tide turned and all the checks came in and all of a sudden it was just time to go for it. And you know, the timing was terrible in the sense that it's like I was nursing every three hours. I had just had a baby, my husband had just left his job, but the timing was also the timing. That's when it was. So it was the perfect timing because that was the only time if I didn't say yes to that money then, they weren't going to come back in six months and say, "Oh, can I give you money now?" They're giving the money now. So now is the time.

Bobbi Rebell:
Wow. So what happened next?

Liz Durand:
So what happened next is I briefly lost my mind. I was working around the clock literally, plus not sleeping because I was taking care of the baby. So I was running out to buy Broadway tickets in the two hour pocket-

Bobbi Rebell:
So you were, just to be clear, you're literally, it looks like you've got this massive company going on. You, Liz are going out and literally procuring these tickets.

Liz Durand:
Yes. So like one day at the box office and I was in labor but didn't know it buying tickets at the box office. Two days later I was back at the box office with no baby buying tickets again and the box office manager, there's two that are women in Broadway and the one who was at the window that moment was a woman and she looked at me and was like, "What just happened? Where, where is your baby?"

Bobbi Rebell:
Oh my God.

Liz Durand:
But I think that's just ... on one hand I was very out of sorts because there's just all the drama that you just had a baby. But on the other hand was actually really nice for me to have something that was like the anchor and a goal that was unrelated to becoming a mother. That was, I have this business that is growing that needs my attention and the act of like leaving my apartment and running around in 95 degree weather and buying tickets at the theaters and begging people to hold them for me, actually was something that was very familiar at that point. And it gave me a sense of stability during a time that felt like it could have been just like spiraling out of control. In a weird way it was actually nice to do something over and over that wasn't that enjoyable, but that I knew how to do.

Bobbi Rebell:
When you look back, what is your takeaway for the listeners? If they experience something like that? And a lot of people do. Not that situation, but the convergence of different parts of their lives at the same time.

Liz Durand:
I think there's two things. I think it's important that you pick a life partner who truly sees you as a partner. Whether you want to pursue business or you just want to, do something else with your time. You want to work on charity, you want to take care of your kids. Having someone who's going to back you and they're going to back you, not because they necessarily agree with everything you want to do, but because they agree that you should be allowed to do whatever you want to do and you should use the corded is the number one thing. The second thing is just breaking big projects down into small manageable tasks. Like when you're sitting there and you're trying to nurse and the baby's not latching on and you haven't slept in like eight hours. It feels like that's never going to end and your life is never, this is going to be your future forever and I think it's important to break down that bigger thing into a smaller task like all I have to do right now is try for 10 more minutes and then I'm going to put the baby down and I'm going to go buy these Broadway tickets and when I get back I'll try again.

Liz Durand:
And I'm going to give myself permission right now to not think that because this one moment didn't work that the rest of my life isn't going to work.

Bobbi Rebell:
You also have an everyday money tip that I had not really thought of. I've resisted doing this, but you made me think about it very differently and I'm really excited to kind of consider this.

Liz Durand:
My money is if you are a woman with limited time, hire a stylist immediately. Unless you love shopping as an actual recreational pastime and it's something you do socially or you find it relaxing, cut it out. You don't need to be doing it. Hire someone the money you pay that person to accrue all the clothes for you, will be paid out in spades because they will number one, find things that are $25 that look like $200 or $2000. And number two, all that time that you would have spent trying things on at the store feeling bad about yourself, you can instead spend on something that is more valuable to you, like an extra hour at the park with your child or sending three extra emails that wouldn't have gotten done because you just wasted an hour at Bloomingdale's staring at 300 pairs of shoes and bought nothing.

Bobbi Rebell:
I know my hesitation is, oh, it feels so frivolous to spend money paying someone to shop for me, and then what if they make me buy things are too expensive. I don't want to spend that much money. I feel like there's a lot of reasons people resist that kind of thing.

Liz Durand:
Well you need to find one who you're comfortable with who you can say to them, "I don't like this, I'm not buying it." But if you find the right one, it saves you so much time and so much money because you get an entire wardrobe that's like $25 dresses and then you have one handbag that goes with all those dresses that was a splurge, and now everything looks like it was a splurge. And I just think the emotional toll and the energy toll of shopping if you don't enjoy it, is so high. There's something to be said for outsourcing things so that you have time to work on things that add value. Like if you're not standing at Bloomingdale's, being miserable, finding things you don't like, that time can be spent on finding new clients. That time can be spent on something that generates revenue, that pays for the stylists, plus stylists are frankly not that expensive. They can shop in an hour, what it takes you, takes me four hours to find a dress that I don't really like, but I've finally given up because my friend's wedding is tomorrow and I need something. That's my shopping experience. My stylist in one hour, she's got me a wardrobe for the next six months.

Bobbi Rebell:
So where can people find a stylist?

Liz Durand:
I think Instagram is a great place to go. As much as I have a love hate relationship with social media, I think if you find someone who's page you like who has style that looks like yours, that's a great place to go and find someone. It's also great to ask your friends because any of your friends that have really good style like that, I'd bet ne of them is using a stylist. A lot of people [inaudible 00:10:47] tell you unless you ask. It's like a dirty little secret.

Bobbi Rebell:
Whoa. Alright, let's talk a little bit more about Broadway Roulette. One of the many things that impresses me is that if I go to one of the traditional ticket booths to buy a discount ticket, the shows that I see on the board are often the shows that are having a lot of trouble filling seats. When I go to Broadway Roulette, the shows are the ones we all want those tickets for. How does that happen?

Liz Durand:
Well, to be fully transparent, every Broadway show, except for the top like five average, have about 25% of their seats empty on any given night. There's very, very few shows that are actually sold out all the time consistently. The ones on the board in Times Square, which I affectionately call the wall of shame. It doesn't mean that they're terrible shows and it doesn't mean that you don't want to see it or that they have tons of empty etas, it means that the people that are behind that show have done the math and figured out that they'd rather have these seats sell at whatever price they're offering it there than have them go empty. There's other shows that decide they'd rather just not do that and not have their name up there and not have the seats all sell. So it is actually more of a management question then like a quality of the show question, but the way that our system works, we work directly with the Broadway shows. One of our big sales pitches to the show partners is, it's not an advertised discount or customers don't know what they're buying and so it protects your brand in a way that's very unique compared to like a big slash through it that says 80% off.

Liz Durand:
And because our brand partners to us as a company that is sort of based on the concept of rising tide lifts all boats versus race to the bottom, we're able to broker better seats at cheaper rates than you can find on public discount. And the second part of that is that we make a conscious effort to include, we literally send people to every single show on Broadway regularly. And that's a marketing expense for us. And the reason we do that is that we're not primarily a discounter where a discovery platform. So there's tickets to Hamilton and Dear Evan Hansen and Hello Dolly and all the shows that you won't be able to see if you go to the TKTS booth, though I do think there's a time and place for that and no shade to TKTS. If you're not beholden to a particular show, this is a great way to see everything. And our customers do use our service over and over and over and we eliminate every show that you've ever seen through us every time you spin. So you can go 30 times and see 30 different shows.

Bobbi Rebell:
Which is also a great business model because it promotes loyalty.

Liz Durand:
Yes it encourages repeat business. The thing I like about that part of the model especially, I mean really and truly is let's say we have a customer that we send to Miss Saigon that show's closed now, but let's say we send them to Miss Saigon. They have a great experience. That then prompts them to buy another ticket through Broadway Roulette. We then send them to, let's say, Phantom. We've now basically the experience that Miss Saigon has helped sell a ticket for Phantom. So our argument is that all the shows that work with us are helping each other versus competing for the consumer business.

Bobbi Rebell:
Perfect. Liz, where can people learn more about Broadway Roulette and about you?

Liz Durand:
Well, you can learn about Broadway Roulette on our site, it's just broadwayroulette.com. It's simple fun and easy, which is sort of our sales pitch. And the best place to follow me is just my Instagram account, which is just Miss Durand.

Bobbi Rebell:
Love that.

Liz Durand:
Lot's of cute pictures, if don't want to see cute pictures of the child don't follow my Instagram.

Bobbi Rebell:
Cool. Well thank you so much.

Liz Durand:
Yeah, thanks for having me.

Bobbi Rebell:
So Liz's story resonates on so many levels, but let's start with the one that's the most fun, which is getting tickets for what you want for less money. Financial Grownup tip number one, just because you don't have a big budget doesn't mean you can't see big shows. First of all, Broadway Roulette, as we discussed, is a game changer. But I'm also going to give you some other options, all of which have pros and cons. Obviously with Broadway Roulette you can see the best shows for less, but you do give up some control. Personally, I think that for as little as 49 bucks a ticket, that is part of the fun, but okay, maybe you're just in town for one night and you want to see a very specific show. You want another option. Most Broadway and off Broadway shows sell rush tickets and they also have lotteries.

Bobbi Rebell:
Some are online and some you do have to go in person. They can run for as little as $10 as is the case of Hamilton. Most are around 40 bucks, but yes, you can see Hamilton for as little as 10 bucks. You've got to be really lucky though, but it's there. Broadway shows also have standing room tickets. They are often under 30 bucks. Also look for student and active military discounts. Links that will tell you all the details for each show are going to be in the show notes. Financial Grownup tip number two, better than discount is free. Free entertainment this summer, there's also free theater in many cities. For example, right here in New York City where I live, we have free Shakespeare in the park. So you can wait in line, got to get up early, but you can also enter the online lottery. So if you've got to be at work, it's okay. Just remember to do this. I've always been able to get tickets at least once per summer. You may have to try a bunch of times, but you know what? Just set a reminder on your phone to enter each day and you're good to go wherever you live there are opportunities.

Bobbi Rebell:
One option, for example, get social. Follow the venue on social media of what you want to see. Sometimes if a theater isn't full, they will actually offer free or heavily discounted tickets to followers. You can also see things for free if you're willing to volunteer at a theater, maybe ushering or doing various other jobs to support the production. One thing I've yet to do but I hear about and I'm so curious about is being a seat filler. I'll leave links in the show notes, but basically you attend show tapings or live musicals or plays so they don't have empty seats and the stigma that goes with them.

Bobbi Rebell:
Alright. Thank you all for spending your time with us. It means a lot as do the social media DM's and shares that we've been getting. Please be in touch. I am at Bobbi Rebell on Twitter. And Bobbyrebell1 on Instagram. And if you're coming to New York, try Broadway Roulette. You can book up to three months in advance and if you follow them on social, they do freebie giveaways. Just saying. Thanks Liz for sharing the story of the birth of your business and your baby and for helping us get 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.

Jessi Fearon lives her Real Life on a Budget- but getting her husband in line when he saw a great sale on Fireworks was still a challenge. Plus her tips on how she got her book buying obsession under control!

 

In Jessi’s money story you will learn: 

-Why her husband blew the budget on fireworks!

-How he tried to avoid telling her about the splurge

-How she reacted when she found out he spent more on fireworks than on their wedding

-What her husband’s buddies had to say about the situation

-What else the Fearon’s could have bought with the money he spent on the fireworks

-The upside of the incident: they had their first big money talk as a couple

-The mindset that allowed Jessi to forgive her husband, and give him a roadmap for handing future temptations

 

In Jessi’s money lesson you will learn:

-Tools to put in play if you are a saver married to a spender

-How to better understand and manage the mindset of an unintentional spender

-Specific ways Jessi and her husband set and execute financial priorities

-Exactly how much money Jessi now gives her husband when he goes shopping for fireworks

 

In Jessi’s every day money tip you will learn:

-How Jessi spent over $250 in one year on books on Amazon.com

-How she was tempted to spend more than she realized

-How Jessi rediscovered the library

 

In my take you will learn:

-Why approaching well-intentioned overspenders in a non-judgemental way can be effective in helping them to adjust their behavour

-Specific pitfalls that trigger us into spending more than we planned, and how to counteract them

-How to understand the mindset of consumers who fall into the trap of spending more than they planned because of well-designed targeted sales tactics

-The benefits of having intentional discussions with anyone with whom you have shared finances. 

 

Episode Links:

Learn more about Jessi’s blog jessifearon.com

Get Jessi’s new free five-day money challenge

 

Follow Jessi!

Instagram @jessifearon

Twitter @Jessifearon

Facebook @JessiFearon

---

Transcription

Jessi Fearon:
They were having to buy two, get two free. And so he just kept buying stuff, and he said, “I didn't even pay attention when I checked out how much it was”. They looked at the receipt, and his buddy was like, “dude, you seriously spent $700 on fireworks”.

Bobbi Rebell:
You're listening to Financial Grownup with me, certified financial planner, Bobbi Rebell, author of How to be a Financial Grownup. But you know what? Being a grown up is really hard, especially when it comes to money. But it's okay. We're gonna 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:
Happy 4th of July, my friends, we have a special just for Independence Day money story. Thanks to our friend Jessi Fearon from Real Life on a Budget. Hopefully you are relaxing and not at work today. If you're joining us for the first time, welcome. Glad to have our returning folks as well, and thank you all for the DMs and the social sharing that's been going on. It's been so fun watching the show continue to gain traction, and we have you guys to thank. So, thank you. Hopefully, like I said, you're getting some time off this holiday week. For mom, Jessi Fearon, who is also an accountant, by the way. She celebrates every 4th of July with her husband, her family, and her friends in Georgia. And her husband is in her words, a total pyro. He loves his fireworks. So much so that he blew the budget, literally, which is not going to fly when your wife runs a blog called Real Life on a Budget. Here is Jessi Fearon.

Bobbi Rebell:
Hey Jessi Fearon, you're a financial grownup. Welcome to the podcast.

Jessi Fearon:
Well, thank you Bobbi, I appreciate you having me.

Bobbi Rebell:
And I am a huge fan of your blog, Real Life on a Budget, because you get very real. So, congratulations on the success of all that.

Jessi Fearon:
Thank you.

Bobbi Rebell:
And you manage it down in Georgia with three kids, which is pretty cool.

Jessi Fearon:
Yes. Yes. My sweet three children that can drive me crazy sometimes, but are such a blessing at the same time.

Bobbi Rebell:
And not to be forgotten, your husband, who ... This is ... Okay, little bit of trivia here, so your wedding, for fans of your blog, they already know this. Your wedding cost all of $500.

Jessi Fearon:
Yes.

Bobbi Rebell:
But, your husband spent even more, more than ... Your husband spent more than your entire wedding budget on fireworks. So this is an episode that we're going to drop in honor of July 4th. You have the ultimate July 4th money story. Go for it, Jessi.

Jessi Fearon:
Okay, well, a real quick little just background. It was our first year as a married couple. So we decided that we were going to celebrate the 4th of July with a good old American barbecue. And at the time our state, Georgia. You couldn't buy fireworks in the state of Georgia. You had to go outside the state. And so my husband and his buddies, they load up the truck, and they take the two hour trek over to Alabama. They buy fireworks, and they come back. And I'll never forget it. Me and my girlfriends were watching the truck pull in, and it literally looked like the Clampetts coming down the road. There were so many fireworks in the bed of this truck, it was insane. I mean, I even commented to one of the friends, I was like, "oh my goodness, it looks like they just bought fireworks enough for town hall to shoot off tonight". And so as I'm walking up to the truck, my husband's friends had this look on their face.

Bobbi Rebell:
Oh, oh. Like this guilty look?

Jessi Fearon:
Yeah. It's like they didn't want to talk to me, they didn't wanna look at me. It was almost like they were afraid they were gonna witness a murder or something, like they just didn't want to talk to me. And I was like, okay. And so I kind of made a joke to one of them. I said, "good mighty, how much did y'all spend"? And the one friend goes, "oh no, it wasn't us". "It was not y'all, it was your husband". What? I look over at my husband, I'm like, "honey, how much did you spend"? And so he starts going to this big deal about how they had this great sale, that it was like, buy two, get two free, and blah blah blah. And I'm like, "okay honey, how much did you spend"? And he was like, "oh, we'll talk about it later". So in my mind I'm thinking, okay, he spent a lot of money. He spent probably like $200. I'm thinking that's an insane amount of money. How could you spent $200 on fireworks, right?

Bobbi Rebell:
So you're guessing he splurged and spent about $200.

Jessi Fearon:
Yeah.

Bobbi Rebell:
What happens next?

Jessi Fearon:
I cornered my husband and I finally got him to tell me how much she spent. But he spent $702.48 on fireworks. And I literally couldn't believe it. I thought he was joking. I kept looking at him like, what? No you did not. That's our rent money. How could you spend $700 on fireworks? And I was so mad, and so upset, I didn't scream and yell, but it was one of those things where you could just tell that I was really upset about this. I couldn't talk to anybody anymore. I was like, how could you spend $700 on fireworks?

Bobbi Rebell:
Right, and to put that in context too, you do disclose some of your budgeting and your expenses online, but give us a high level, what would $700 buy in the Fearon household in a typical month?

Jessi Fearon:
That would have bought groceries for about three months at that time, because it was just the two of us. So that would have bought groceries for about three months. That would have paid the one car payment that we had for two months. It would have definitely covered utilities probably for about six months, at the time. And it was in fact our rent money. So it was quite the expense. It definitely was not planned. I really did not think my husband was going to spend that much money. To say that my husband's a pyro is a little bit of an understatement. He likes to blow stuff up.

Bobbi Rebell:
So what happened next? You have this talk.

Jessi Fearon:
Yes. So the next morning, I remember I was still so mad. I could not believe it. And the thing is, that you can't return fireworks. It's a nonrefundable sale. So, it's not like we could take back any fireworks, because I mean, again, my husband bought so many fireworks, we couldn't even shoot them all off that one night. We had to shoot them off on Labor Day and then on New Year's Day, because there were so many still left. I remember we were cleaning up from the party and we were putting all the fireworks that were left over in the garage. I remember, I was so, so mad, and I kept thinking like, I just wanna scream, I just want to yell. But then the more and more I thought about it, I thought, okay, if I just scream and yell we're not going to get anywhere in this conversation. So why don't I just kind of calm down and take my emotions out of it, and talk to him about this, because I really need to know why he would spend $700. I was raised in a very frugal household, and you don't spend $700 on fireworks. Only people with yachts spend $700 on fireworks. Why would you do this? And so I remember I just kind of turned around to my husband and I was like, "this was a lot of fireworks". And he goes, "it kind of is, isn't it"? "I went a little overboard, didn't I"? And I was like, "yeah honey, you went a little overboard". "So you want to tell me about this because this was a lot of money you spent". This is the first time that I really got to see how, because I'm a saver, my husband's a spender. And so this is first time I got to see how kind of a spender, for him anyways, rationalized his purchase. And it was because of that really awesome sale they were having. They were having to buy two, get two free. And so he just kept buying stuff. And he said, "I didn't even pay attention when I checked out how much it was". He said, it wasn't until we were halfway home that one of his buddies had asked how much did you spend? And they looked at the receipt, and his buddy was like, "dude, you seriously spent $700 on fireworks". And my husband couldn't believe it. He didn't even think it was going to be that much money because he thought he was saving a whole bunch of money. So for us this was the first real money conversation that we actually had as a married couple. We had been married for almost a year. Our anniversary is July 24th. And so we had been married for almost a year at this point, and this is the first time that we really sat down and talked about money, because even though we knew one day we wanted to have kids, or one day we wanted to buy a house, we had no plans for any of that. And so, this situation kind of pushed us into actually having to sit down and have a conversation about money, and we started realizing, okay, if we don't come together and be a team on this, there's going to be more and more $700 expenses on random stuff that isn't important, because he certainly wasn't the only one spending money. He just happened to spend a lot of money at one time, versus where, our day to day lives, we were spending little increments of money here and there, without thinking about it. And I think that it really for us kind of showed us that it compounded on itself to this one big $700 purchase where we went into it with no plan to attack at all. So it was quite the interesting thing. And I forgave my husband, obviously, we've been married now for nine years. So I forgave him, and it's kind of become our epic story for our family, about my husband's $700 expense.

Bobbi Rebell:
So looking back, I guess it's about eight years later. What is the lesson for our listeners?

Jessi Fearon:
One, if you are married to a spender, always remember to give a grace, because a lot of times spenders don't recognize that they're spending so much money, because they believe that they're saving money because of the sale. And a lot times spenders are really good at finding the bargains. They really are great at that. And just like spenders always get upset with the saver, when they want to save a bunch of money and not spend it. And so for us it came down to finding that balancing act between being a saver and a spender, and having the honest money conversation where we decided together, okay, how much are we going to spend, how much are we going to save? What is the best of both worlds? And it came down to us writing down what our financial goals were, which was saving for a house, paying off debt, and saving an emergency fund. And all of that. So we were able to put those into the budget, but then we were also able to put in spending money for my husband to go and spend money because he still buys fireworks every 4th of July. And he still spends more than probably what most people would. But now it's a planned thing, and he just gets to carry cash. He has to leave the debit card at home, so he can't go crazy in the firework store anymore.

Bobbi Rebell:
So how much cash is he getting this year in 2018?

Jessi Fearon:
Like I said, it's still more than normal, what most people would spend, but it's $150 that he gets to buy whatever fireworks he wants. So then he can go blow them up all that he wants to.

Bobbi Rebell:
All right. Let's talk about your money tip, because you've gone over budget with things as well. Especially one of your pleasures, which is reading.

Jessi Fearon:
Yes. Oh my goodness. Yes. And like I said, my husband's definitely not the only one that's at fault. I had spent well over $250 in one year on Amazon buying books. And I kind of didn't even realize it because I think Prime makes it so easy. And so does Kindle, where your just buying books, and you see the deals, and you're like, oh my gosh, I wanted to read that book. So let me get that one. Oh, Amazon suggests this book. Okay. I like that one.

Bobbi Rebell:
But you were actually reading the books?

Jessi Fearon:
Yes.

Bobbi Rebell:
Because sometimes people buy and they don't read.

Jessi Fearon:
No, I was definitely reading them, because I love, love to read. I read on average of about four book a month, sometimes more, sometimes less. But I just love to read. And here I was just buying all these books and reading, and reading, and getting excited about it. And then when I finally, I usually do, my husband and I will sit down every year and we kind of do a big annual spending review, where we literally look at how much we spent in every single category. And what we spent it on. And when I kinda sat down and realized just how much I had spent in one year on books, I was like, oh. This is my fireworks story, isn't it? I'm like, okay. we got to do something, and so I rediscovered the library. And that has kept me in check this past year so far. So it's been wonderful. I've been able to feed my guilty pleasure without a completely wrecking our budget this time.

Bobbi Rebell:
Love it. All right. Tell us more about what you are up to. I know you've got some new courses on tap.

Jessi Fearon:
Yes. Right now I have a free five day money challenge. All about things that you can do for the next five days. It's only about 10 minutes, 10 minutes or less a day that you can do right now. These steps that will help you to be able to start managing your money better. It will get you started on the right path to taking control over your money, and to stop letting money control you, and start putting you at the helm of your finances.

Bobbi Rebell:
Excellent. And where can people find out more about you and your blog?

Jessi Fearon:
They can find me at jessifearon.com, and on Instagram, twitter, and Facebook at Jesse Fearon. I'm constantly on Instagram trying to just share all the little snippets of our real life and all of its imperfect details. Everything for my husband working his side hustle here recently to buy a new boat motor, and our [inaudible 00:12:03] vacation that we go on for the cheap.

Bobbi Rebell:
Awesome. Well, thank you so much and have a great 4th of July.

Jessi Fearon:
Well, thank you Bobbi. You too.

Bobbi Rebell:
Okay everyone, one thing that Jessi said really resonated when she talked about how a saver, like herself, can better understand a spender, and it has to do with the mindset of the spenders. Financial grownup tip number one. Jessi says, if you're married or in a relationship to a spender, always remember, give them grace. Many spenders are well intentioned, and go off track thinking in that moment when they're making the buying decision, that they're saving money. Seeing a two for one sale sets off a feeling of excitement. So many of us have fallen into buying more of an item than we intended because of the way the seller has priced it. They're smart, they know what they're doing. It sometimes is a better deal. In fact, never once did Jessi criticize the fact that the per firework price of what her husband bought wasn't a deal. He may have gotten good value. He just spent too much. She gets it. And I love her empathy and understanding. By figuring out the mindset of her husband, she was able to steer him on a healthier path and give him the tools. Okay, and also she gave him restricted cash on a budget this year, to resist the next great deal, rather than just screaming at him that he blew the budget.

Bobbi Rebell:
Financial grownup tip number two. Jessi also talks about the fact that this was the very first time the two of them had really sat down and intentionally talked about money. They didn't have kids yet, but they were newlyweds and they had no plan. So if you're in a relationship that involves shared financial resources, maybe have a little chat. If you are not already, please hit that subscribe button, and if you are listening on Apple Podcast or iTunes, please rate the podcast and leave a review. They really matter. Also, if you like the show, just tell a friend to check us out as well. And thanks to Jessi for giving us such a great Independence Day story. Let's all go out and celebrate with our friends and family. Maybe take Jessi's advice, and read a good book. Libraries are great. Also though, it's also nice to buy books on occasion, because we want to support our authors and value what they contribute as well. Authors need to make a living. So, it's a balance. Be sure to check out Real Life on a Budget and Jessi's great free course. I will leave links to both in the show notes. And thank you Jessi for helping us all get one step closer to being Financial Grownups. Financial Grownup with Bobbi Rebell is edited and produced by Steve Stewart, and is a BRK Media production.

When Skillcrush founder and CEO Adda Birnir got laid off from her job at a digital ad agency, she decided to follow the money and discovered a lucrative business she did not even know existed. Her ability to leverage events like South by Southwest and understand how to make tech education appeal to women have driven the phenomenal growth of her startup. 

 

In Adda’s money story you will learn:

-The big “aha” moment she had after being laid off, and seeing that the tech jobs were a lot more secure

-How a side project called Digital Divas, evolved into Skillcrush

-How a chance meeting led to a pivotal business partnership

-How Adda validated the Skillcrush concept

-The key risks and challenges in the early days of Skillcrush

-How they grew the company after a big test at South By Southwest

-The role that an incubator, and those resources played in the success of Skillcrush

-How they raised money from investors

In Adda’s money lesson you will learn:

-The importance of listening to your potential customers and their problem- before trying to sell a solution

-How to find the best way to appeal to potential customers

-The way Skillcrush overcomes stereotypes about women and coding

In Adda’s every day money tip you will learn:

-How Adda and her business partner set up a system to make sure to fund the company, while paying themselves a salary

-The best way that can apply to your personal life (or your business!) 

-Strategies for freelancers to streamline unsteady income

In my take you will learn:

-How to get over being intimidated by new things, like coding

-Why everyone should learn basic coding and web skills

-How creating virtual buckets can help your personal finances, and your business

Episode Links:

Learn more about Skillcrush! skillcrush.com

Try SkillCrush’s 10-day bootcamp! https://learn.skillcrush.com/skillcrush-10-day-bootcamp/

 

Follow Skillcrush and Adda!

Twitter: @skillcrush @addbjork

Instagram @skillcrush  @addabjork

Facebook Skillcrush addabjork

 

To win one of the promo video’s you see- be sure to share them on social media when you see them on my feeds!

Twitter @bobbirebell

Instagram @bobbirebell1

Facebook: Bobbi Rebell

Want to share your money story? Write to us and tell us about it at info@financialgrownup.com

---

Transcription

Adda Birnir:
What we learned very quickly is that women are not going out and searching, "I want to learn to code." Their motivation is not to learn to code, their motivation is to change their careers, and to make more money, and to have more creativity and flexibility.

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

Bobbi Rebell:
Hey, friends, that was Adda Birnir. She is CEO of Skillcrush, which is a big and growing online tech education company. She's talking about a big revelation that they had, when they were trying to figure out, how to better appeal to women, something very few tech companies were even trying to do, and this was way back in 2012.

Bobbi Rebell:
More on that in a sec, but first, just a quick welcome to all of our new listeners, if you're joining us for the first time, welcome. And if you're returning, welcome back. We try to keep the shows short, because we value your time. But you can also, of course, binge and listen to a few of them, if you're commuting. Or, if you have more time, you can listen to more episodes, all in a row.

Bobbi Rebell:
The goal is to deliver a valuable money story that you can learn from, hopefully be entertained by, and a money tip, that you can put into action pretty much right away, and weave into your life. If you enjoy the show, please consider taking a minute, and leaving a review on Apple Podcasts, and thank you so much, to all of you that have already done so.

Bobbi Rebell:
Okay, back to Adda, and her story. After being laid off from a digital ad agency, where she was an associate producer, she noticed that the technical people all had jobs. She wanted that security, and of course, who doesn't want the money that goes with that security?

Bobbi Rebell:
So she decided, also, because she talks about the fact that she had a lot of free time, that she would learn to code. And it turned out, it wasn't actually that hard. So fast forward to a side hustle, doing coding projects with a friend, and then, to a business venture that actually didn't work out, but it led to one that did, because of basically a chance meeting. Isn't it always that way? That's just the way it happens sometimes.

Bobbi Rebell:
Get ready for some drama here. This is a good story. Here is Skillcrush CEO Adda Birnir.

Bobbi Rebell:
Hey, Adda Birnir, you're a financial grownup. Welcome to the podcast.

Adda Birnir:
Thank you for having me.

Bobbi Rebell:
Congratulations on all of your success. You are the founder and CEO of Skillcrush, which is the country's largest online tech education company. Your mission, of course, to help women and minorities learning digital skills, and you've been touted in the media as, so, for all of these accomplishments, 20 Women To Watch In Media, by Columbia Journalism School. You're one of the 30 Most Important Women In Tech, by Business Insider.

Bobbi Rebell:
We could basically spend the whole podcast going over that stuff, but I'm just happy to have you here, and get a little bit of your time in your busy day, running your growing empire. So thank you for being here.

Adda Birnir:
Yeah, thanks for having me.

Bobbi Rebell:
The money story that you're going to share with us has a lot to do with how Skillcrush was born.

Adda Birnir:
Yeah, so, this is 2012 now. This is kind of the heyday of the incubator. I mean, they still exist, but they were really big then, and we were interested in exploring, trying to create some sort of software product ourselves.We had been playing around with a couple different ideas, and like I said, Skillcrush, which was called something totally different at the time, it was called Digital Divas, was totally, just like, a fun side product.

Adda Birnir:
We had this Tablet publishing software, so it was basically, like, our goal was to make it easy for online publishers to publish to iPads. That was kind of the thing we thought was like an actual business.

Bobbi Rebell:
So it was a total business pivot.

Adda Birnir:
It wasn't even like, a pivot. It was like, an isolated example. We just threw one out, and we're like, "Oh, people think we're interested in this one." It was good. I mean, it was one of those examples that the market tells you what they're interested in. And basically, no one gave two bleeps about the Tablet publishing, and everyone was super interested in the Digital Diva thing.

Adda Birnir:
Then, at the same time, fortuitously, I did this program at CUNY, on the Journalism School. And there, I met a woman named Jennifer McFadden, who went on to become my cofounder at Skillcrush, and she had done a lot of research about the online education space.

Adda Birnir:
So it was sort of, one of those, sort of total kismet moments, where I had this education product, that I didn't have any sense for the business proposition, or the business opportunity, and she had all this deep knowledge about the education space. So that was what really started it.

Adda Birnir:
I will say, though, because we'd had this failed attempt at this Tablet publishing software, I was very, very cautious with Skillcrush. I didn't want to invest in it without validating the idea on some product.

Bobbi Rebell:
So what did you do? What are the steps you took to validate it?

Adda Birnir:
Basically, when you go through this process, what you want to do is, you want to figure out, what is your riskiest assumption? For us, because, at the time, there weren't as many online education players. But there was lynda.com. So we felt like, it's that aspect of it, will people pay for education online, was validated.

Adda Birnir:
That, to us, was not the riskiest assumption. The riskiest assumption for Skillcrush was whether women would pay for, or would be interested in, a technology learning platform. So we designed this experiment, which is that we started a newsletter, and basically, what the sort of offer was, that the newsletter offered, was, we would define a technical term, and find an interesting way. And we'd done a day for 30 days.

Adda Birnir:
We went to South By Southwest, and figured, what we'll do is, we'll pitch this to women at South By Southwest, and they will buy it, with their e-mail address. We considered that sort of like, a transaction, and we figured, if we can't convince women at South By Southwest to purchase this, with their e-mail address for free, obviously, then there's no hope for us.

Bobbi Rebell:
So what happens?

Adda Birnir:
So, I think we had set, fill that goal of having 2,000 signups, and we did not get that, because we were doing direct sales. But our hit rate was 90% of them. I mean, everyone we spoke to, we got to sign up for it, so that was kind of our first positive signal. Then we actually, through that process, happened to pitch a woman who happened to work for Mother Jones. So then, she wrote us up, and then, that gave us another 600 signups, or something.

Bobbi Rebell:
Wow!

Adda Birnir:
That basically ended up with about 1,000 people.

Bobbi Rebell:
So then, what happened from there?

Adda Birnir:
So, from there, we started doing the Term a Day newsletter, and it started to build momentum, and I think we probably signed up, like, 3,000 people. Which, again, just to put this in perspective, this is shortly after Code Academy had gone live, and they had gotten 200,000 people to sign up over a 24-hour period. So I was completely bereft and disappointed by the 2,000. We had applied for the start of incubator, and we got in, and that gave us $25,000 of funding.

Adda Birnir:
The thing that I guess I think about it, like, at the time, I really needed that validation. Looking back on it, I think what I got out of it, more than the $25,000 ... because, honestly, the $25,000 just paid for incorporation. I didn't really have a lot of money, but it really was validation from an external source, that this is a cool idea, and you should keep working on it, and I think at that moment, I really needed that. But I don't think, the money itself, do you know what I'm saying?

Bobbi Rebell:
Yes.

Adda Birnir:
I think about this a lot, and looking back on it, I didn't need that validation, and that validation really didn't mean anything. Because they weren't my target audience, right? They didn't know.

Bobbi Rebell:
But at the time ...

Adda Birnir:
But at the time ...

Bobbi Rebell:
At the time, that mattered. Yeah.

Adda Birnir:
Exactly. But I just think about that, when I hear about women saying, "You know, I can't get funded," and I'm like, "Well, just remember, you don't need that validation from something." The only person, the only people that you need to validate your business are your customers, and often, it's easier to get them to validate it, than it is to get a venture capitalist to validate it.

Adda Birnir:
But we did, also from that, we did get another $50,000 as a convertible note from my other investors. That did give us some money, and that sort of about paid us, probably for the next four months, to build out Version 0.2, or whatever, of the product.

Bobbi Rebell:
So what is the lesson for our listeners from this?

Adda Birnir:
A lot of people get very attached to what is their solution, and there's kind of a thing in the startup community, which is that you got a solution in search of a problem. I think the most important thing that I can say to people is, you really have to start from the opposite end, right? You have to start with a problem, and then, come up with a solution for it.

Adda Birnir:
So I would just really encourage everyone, that if you have a business idea, chances are, you're onto something. But, before you kind of go all in on building out what you think is the best solution to this problem that you perceive, is to really talk to the people who are going to be paying for this solution, and really make sure that you understand their problem, and more deeply.

Adda Birnir:
That's sort of the case with Skillcrush. We had a lot of bumps in the road, especially in that first year and a half, and a lot of that was because it wasn't that we hadn't identified a legitimate problem. Because we had.

Adda Birnir:
There were women who could benefit from technical skills, but I will tell you, what we learned very quickly is that women are not going out and searching, "I want to learn to code." Their motivation is not to learn to code, their motivation is to change their careers, and to make more money, and to have more creativity and flexibility.

Adda Birnir:
They have some interest, in the sense that technical skills could be helpful. The big insight for us was like, you can't sell women the jobs report. That's not how they purchase that, right? They are looking at, "What is this gonna do for me? What changes will I be able to see in my life?"

Adda Birnir:
That was a fundamental insight that I really didn't have, until I started talking to my customers, and really understanding what their pain points were, and their problems were, and making sure that the solution I was providing really aligned with what problem they were trying to solve.

Bobbi Rebell:
So let's get to your every day money tip, because it's actually a business lesson that applies equally to our personal financial levels.

Adda Birnir:
Yes. One of the biggest kind of "Aha" moments for me with my first business, which I was running with my friend, and we were both freelancers. I remember, we got this big check. I think it was for $10,000, or something, and her impulse was that we should just split it, 50/50. My thought, "Why don't we just set our salaries? We're each going to get $4,000 a month, or something."

Adda Birnir:
I don't remember what it was, these are hypothetical numbers, but I was like, "How about, instead of just splitting every check that comes in 50/50, why don't we put the money in a bank, and take salary, and create the sort of situation you would have, in a normal situation, where you are getting paid, like, a steady salary, even if your actual income is kind of lumpy?

Adda Birnir:
It was really interesting, because this obviously was really helpful for us, just from a perspective of, when you're a freelancer, it's really hard, because your salary and your income is unpredictable. So we sort of artificially created this predictability for us, but it turned out to be a really, really important shift in perspective, in terms of thinking about the business as a third entity, and not sort of seeing it as something, where we were just like, 50/50, but it was like being ... we were like an entity unto itself, that we wanted to grow, and build up.

Adda Birnir:
I think that, in a lot of ways, this is something that is really applicable to anyone who's running a freelance business, even if they're just a one-person freelance shop ... That, to really to start think about your freelancing career as a business, and you want to grow that business, and make sure that business has a really solid foundation.

Bobbi Rebell:
Let's talk about Skillcrush. So much going on. Tell me the latest for summer of 2018.

Adda Birnir:
We are in the process of launching a couple of new blueprints, so when you come to Skllcrsuh, you have two options, in terms of how you want to learn. You can either take our sort of, shorter, more specific skill focus, Blueprints.

Adda Birnir:
Or you can sign up for what we call a Breaking Detect Blueprint, which is our all-inclusive program. You get access to everything that we have, and a lot of personalization. We work with you to set your career goals, and all those things, but we have a couple of new blueprints coming out, where it's going to be launching: a Web developer blueprint, we have a UX Designer blueprint coming out, which is really exciting.

Bobbi Rebell:
And where people can learn more about you, and Skillcrush, and follow you on social media, and all that good stuff?

Adda Birnir:
You just got to skillcrush.com, and sign up for our 10-day boot camp. It's the best way to get started. It's totally free, and you can follow us on Twitter. Just add skillcrush, and on Instagram, at skillcrush. I'm out of Bork on all the platforms, although I'm not the best at this, that you can get ...

Bobbi Rebell:
Wait. Spell that out, then.

Adda Birnir:
Oh. A-D-D-A, B-J-O-R-K. It's just, like Bjork the singer, but it also happens to be my middle name, so ...

Bobbi Rebell:
Love it, because you're from Iceland. Which is a cool, random fact.

Adda Birnir:
Yes, definitely.

Bobbi Rebell:
How old were you when you came to this country? You were like a baby, right?

Adda Birnir:
I was a tiny little baby, yeah, and I speak Icelandic, and ...

Bobbi Rebell:
Oh, my gosh. Say something.

Adda Birnir:
[foreign language 00:13:01]?

Bobbi Rebell:
What does that mean?

Adda Birnir:
Just, "This really nice letter today."

Bobbi Rebell:
All right, on that note, we'll leave it there, thank you so much.

Adda Birnir:
Thanks for just having me.

Bobbi Rebell:
Hey, everyone. So here's my take. When Adda and I were talking before the interview, she confessed that she had been so intimidated, just by the concept of coding beforehand, that she was resisting it, until, of course, she learned about them money thing, and all that.

Bobbi Rebell:
But then, when she focused, and tried it, she found out, it actually wasn't that hard.

Bobbi Rebell:
Financial Grownup Tip Number One: don't be intimidated by coding, or any skill that can benefit your career. It's basically a language. It can be challenging, she says, but it will open opportunities, and is becoming a basic thing that we all need to know a little bit about, at least, the basic level.

Bobbi Rebell:
Even if you're not directly coding, you may be supervising someone who is coding, or have somebody on your team, or at your company, or a peer. Understanding the basics of what they're doing, is going to help you figure out and understand workflow and project management.

Bobbi Rebell:
For example, I learned even just basic HTML years ago, and I built a website, literally typing in the codee that's now generally automatically generated for you, I was actually typing in the different codes.

Bobbi Rebell:
So, pre-Wordpress, pre-Squares-based, the whole thing. Skillcrush does have a free 10-day boot camp. So you can do that. I'm going to leave a link in the notes. It's pretty much risk-free, and worth checking out.

Bobbi Rebell:
Financial Grownup Tip Number Two: the every day money tip that she was talking about was basically about creating buckets for different needs with your money. So that can be really useful in your personal finances, even though she did really for business.

Bobbi Rebell:
Paying yourself the same amount each, especially if you have a variable income, is really useful. And then, you can put everything extra, in a different bucket, for a specific purpose. It's a great way, if you have a big goal, especially a goal that's intimidating, like, saving for a house down payment or something. Put it in a separate bucket. It'll start to add up. You won't even noticing it, and it works.

Bobbi Rebell:
Thank you all for your support of the show. If you like it, please, just tell a friend. Be sure to follow us on social media, and share the promo video, if you like them. You can win one for your business, or even just for yourself. Share them. Whoever the most this month, I'm going to pick someone, and I will make them a promotional video for themselves, or their business.

Bobbi Rebell:
On Twitter, you can follow me @bobbirebell, on Instagram, @obbirebell1. On Facebook, my page is Bobbi Rebell, and to learn more about the show, go to bobbirebell.com/financial grown-up podcasts.

Bobbi Rebell:
All right, [Ada Bernier 00:15:47] learned to move out of a career that left her financially vulnerable. She built a business instead focusing on helping others follow the money. Always a good philosophy when it comes to business and career. So thank you, Adda, for sharing your story, and for getting us one step closer to being financial grownups.

Announcer:
Financial Grownup With Bobbi Rebell is edited and produced by Steve [Stuart 00:16:20], and is a BRK media production.

After an early divorce set Kayla Sloan on an emotional spending binge and into debt, she discovered she could help herself, by working behind the scenes helping a growing market of entrepreneurs- and then becoming one herself.  

In Kayla’s money story you will learn:

-How her marriage, at age 19, had on her financial behavior

-The way Kayla’s desire to spend, contrasted with her husband’s push to save money, and the conflicts that resulted from those differences. 

-Kayla’s emotional spending after the marriage ended after less than a year

-How Kayla managed the cash flow challenges once she was divorced

-The moment she realized she had hit rock bottom, with $10,000 in credit card debt and just $3 in her banking account

-How her total debt moved into six figures by age 21

-The solution she found, that has morphed into a successful entrepreneurial venture

-What virtual assistants do, and how entrepreneurs can tap into that resource

In Kayla’s lesson you will learn:

-How simply filling up her time with an exciting new venture was enough of a distraction to stop the emotional spending

-How Kayla came up with specific ideas for slashing her debt, and what were the most effective techniques

-Why Kayla also prioritized increasing her income, so she would still be able to enjoy responsible spending

In Kayla’s money tip you will learn:

-Why you should not save your fancy stuff (if you have it) for special occasions

-How she made the most of all the fancy wedding presents she did not use during her marriage, including appliances

-How to avoid buying new things, when you already have things in your home that can get the job done, even if they are not what is conventionally expected

-How to tell if you need a virtual assistant, and how to get yourself ready to onboard a VA. 

In My Take you will learn:

-How to learn the value of your time, and decide if you should outsource aspects of your business

-Where to get fancy stuff to use if you did not get it as a gift for a wedding or special occassion like Kayla. 

Episode links:

kaylasloan.com

Twitter @kaylarsloan

Instagram @kaylarsloan

Facebook @krsloan

Kayla's course on How to be a Virtual Assistant and Make $10k a Month

You can buy vintage dinnerware, crystal, silver and other collectables at places like Replacements.com, Chairish.com and even TheRealReal.com

  

After an early divorce set Kayla Sloan on an emotional spending binge and into debt, she discovered she could help herself, by working behind the scenes helping a growing market of entrepreneurs- and then becoming one herself. In this Financial Grownup podcast episode you'll learn how you can tell when you need a virtual assistant. #Entrepreneur #VirtualAssistant #Debt

---

Transcription

Announcer:
Support for Financial Grownup with Bobbi Rebell and the following message come from TransferWise, the cheaper way to send money internationally. TransferWise takes a machete to the hefty fees that come with sending money abroad. Test it out for free at transferwise.com/podcast or download the app.

Kayla Sloan:
I went into total rebellion mode. I adopted a pet kitten. I went to the mall during every spare moment I had when I wasn't working or in class, and racked up about $10,000 in credit card debt and had only about $3 in my bank account.

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

Bobbi Rebell:
What to know more about how those super successful entrepreneurs pull off their busy schedules? Well, there's usually someone called a virtual assistant behind the scenes keeping everything going. Stay tuned to learn more about how our guest tapped into that need to pull herself out of an emotional spending cycle.

Bobbi Rebell:
First, a couple of announcements. We are having a little competition here. It is about the video promos that you see on social media letting everyone know about the episodes. We've gotten amazing feedback about them and people asking how can they get one. So if you want one for your business or just for yourself, share them, retweet them, repost them between now and July 1st. Whoever does it the most, we will declare you the winner and we will make you a promo for your business or just for you.

Bobbi Rebell:
Also, we want to welcome the new listeners here and thank returning listeners. So glad you are joining us. We keep the podcast short, usually around 15 minutes. The idea is that we're all really busy and sometimes we only have little bursts where we can listen to a podcast, maybe we're running a quick errand, so we want to make it easy for you. And then, of course, if you have more time -- if you commute or you're running around town and want to listen to podcasts while you're doing other things throughout the day -- you can binge listen to three, four, five episodes for an hour or so and enjoy it that way. So whatever works for you, we're all about being flexible and fitting into your lifestyle.

Bobbi Rebell:
Now to our fantastic guest. She is tapping into a growing market need, entrepreneurs who need just the right amount of help but without the commitment of hiring someone -- usually in-person, full-time, where they have to get office space for and so on -- because the growing class of often solo entrepreneurs just need a little help sometimes for a project, sometimes a little longer. Kayla Sloan discovered she had a unique talent for tapping into this demand when she found herself with just $3 in her bank account and growing pile of debt, and needed to find a way out. Here is Kayla Sloan. Hey, Kayla Sloan. You're a Financial Grownup. Welcome to the podcast.

Kayla Sloan:
Thanks for having me.

Bobbi Rebell:
I am excited to have you on because you have tapped into a niche that is so cool in this ever-emerging gig economy because you help entrepreneurs.

Kayla Sloan:
Yes, I am a consultant in the virtual assistant space, and not only do I train people who want to become virtual assistants, but I also work with business owners who are in need of a virtual assistant. So I help them identify what they can outsource so they can up-level their businesses and find a great virtual assistant that can help them get there.

Bobbi Rebell:
Genius. All right, so let's talk about your money story. Sadly, it is something so many of us can relate to, and that is going through things like a divorce, broken relationships, and the financial impact that they can have. In your case, you had $3 in the bank. You basically started emotionally shopping, but that was in reaction to what was going on in the marriage. Tell us more.

Kayla Sloan:
So this story really started when I was about 19-years old. I got married very young and went off to college. I was attending school and he was working, so I wasn't really earning very much money at that time. I had a student internship that paid about $10 an hour is all. And so since he was earning the majority of the money, it really felt like I needed to ask permission whenever I wanted to spend money on anything. Since he was a saver and I was a spender, there was always a lot of conflict around money in our relationship. At the time, I really felt as if I couldn't purchase anything without asking permission, which is never a fun feeling, especially if you are a spender. So fast forward a few months and we actually ended up getting divorced.

Bobbi Rebell:
The marriage was less than a year, right?

Kayla Sloan:
Yes, just under a year. And we had no kids or property to split up, thank goodness, because that would have made it much more difficult I'm sure. I've talked to a lot of friends who've been in that situation. Anyway, we split up and luckily I was able to take the assets with me that I had brought into the marriage; it's just my vehicle, household belongings, things like that. And even my retirement account was intact.

Bobbi Rebell:
So this is interesting. So you were actually in okay financial shape when the marriage actually split up.

Kayla Sloan:
Yes. I really didn't end up that bad off. I was kind of struggling to pay the bills with an immediate cashflow because of only working part-time and suddenly having to pay the rent by myself.

Bobbi Rebell:
But then the trouble came with this emotional shopping, which was really ... This is interesting. It was reactive to the fact that he was so controlling with your finances during the marriage, so then you went the other way.

Kayla Sloan:
Yes, I went the absolute other way. I went into total rebellion mode. I adopted a pet kitten. I went to the mall during every spare moment I had when I wasn't working or in class, and racked up about $10,000 in credit card debt and had only about $3 in my bank account.

Bobbi Rebell:
Oh, my goodness. And of course, then comes graduation time and there's even more debt, correct?

Kayla Sloan:
Yes. Graduation brings on more debt for most people. As you and I both know, student loans are a huge problem. I was lucky in only having about $8,000 of student loans when I graduated, making a total of $18,000. But then I turned right around at age 21, right after graduating, and bought a house for $120,000, so I really was feeling that financial pinch after I graduated.

Bobbi Rebell:
So total debt ... I'm trying to do the math here. $140,000?

Kayla Sloan:
Yeah, pretty close. Pretty close.

Bobbi Rebell:
At age 21, with income of about 10 bucks an hour still?

Kayla Sloan:
At that time, I did land a full-time job after graduation, so my take home salary was probably about $25,000 plus benefits.

Bobbi Rebell:
What I like about this story is that you turned things around basically by starting to think like an entrepreneur. So tell us, fill us in on the rest of what happened.

Kayla Sloan:
Yeah. So I started looking for ways to earn extra income and stumbled upon the world of freelance writing and virtual assistant work. And virtual assistants are basically people who work behind the scenes and help entrepreneurs grow and maintain their businesses. And so I started doing this because I love organizing things and helping people create systems, and really working through some of those problems that entrepreneurs typically struggle with. And after doing it on the side for about 12 months, I was earning the same amount from my part-time business as I was making at my full-time job. So I actually quit my job.

Bobbi Rebell:
Love that. And now you are growing that into a full-blown consulting firm, which is amazing and something that so many entrepreneurs really need these days.

Kayla Sloan:
Yes. I am so excited about this. So I started training people who wanted to be virtual assistants, but then I realized there was a need on the other side for connecting entrepreneurs with those virtual assistants. I find that a lot of business owners struggle with finding someone they can trust, someone who's already trained and knows how to step in and get to work, and so that's where I try to fill that void.

Bobbi Rebell:
Let's talk about what the lesson is for our listeners from this story because you basically were able to stop the emotional spending and then turn that into your motivation to start your own business and basically control your income flow. So what is the lesson for our listeners? And especially, how do you stop that emotional shopping?

Kayla Sloan:
Oh my gosh, stopping the emotional shopping can be so, so hard. But for me it was really about finding something else to fill up my free time, which ended up being my business.

Bobbi Rebell:
So it all came together. So for listeners, what can they do? After shopping, shopping, shopping, how do you come up with something? Do you have a technique? Is it just surfing the internet? What was it that got you this idea?

Kayla Sloan:
Yeah. My first ideas did come from surfing the internet. I did some of those classic things like cutting up the credit cards and putting the rest on ice and all of those kinds of things. And they sound crazy, but they work.

Bobbi Rebell:
So you did those things, and then you just decided that you had to up your income?

Kayla Sloan:
You know, you can only be so frugal. There's only so many things you can cut from your budget, especially if you start to feel deprived. And as a spender, I liked to spend money. I liked my lifestyle, so I decided that I also had to find a way to increase my income because I didn't want to cut anything else from my budget.

Bobbi Rebell:
So your money tip has to do actually with kind of a splurge with things that you already have, which actually is very relatable for many people who get divorced and have a lot of wedding presents that maybe are still unopened, not that I would know anything about that kind of thing. But a lot of times, we get fancy stuff for our weddings or graduations or all kinds of special occasions, and then it just sits there because there's never an occasion that's good enough for this stuff.

Kayla Sloan:
Exactly. That's exactly what I found was, I was going through my divorce, I had all these beautiful that I had received for my wedding, and since I was super broke I didn't have any money to spend. So my tip and the way I that I decided to treat myself, rather than spending is that I started using things I already had. So instead of saving my nice dishes that I got for my wedding and using cheap ones every day, I decided I was going to just use the pretty ones. They make me feel happy.

Bobbi Rebell:
And why not? We're all so busy saving for these magical events that are going to happen, and then we don't ever use all this stuff that we have.

Kayla Sloan:
Exactly. And it just sits there and collects dust, and there's no point in that.

Bobbi Rebell:
So what are some other examples of things that you used that people can relate to?

Kayla Sloan:
I said my nice dishes, and then I also used all of those kitchen appliances that never get brought out. And I decided I was going to make some of my favorite meals instead of saving them for a special occasion or saving them when I had guests over and things like that. I'm a big foodie, so those are probably two of the biggest things for me.

Bobbi Rebell:
Let me ask you just quickly, how do people know if they need a virtual assistant? Because I think that's something that confuses people, is where is the tipping point where you're at the point where you need somebody, and are there certain things to look for?

Kayla Sloan:
Yes. So the first sign that you need a virtual assistant is that things start slipping through the cracks. If you find yourself as an entrepreneur or business owner with more things to do than time to do them, then you definitely need to bring someone on. For entrepreneurs, it can be difficult because you don't want to bring someone on and get stuck paying them if you have busy seasons and slow seasons, so a virtual assistant can really help fill that void because you can kind of pay as you go; pay for a certain number of hours per month, and then if you have extra work, you can buy some more. So it's a lot easier than hiring an employee for a set number of hours no matter what.

Bobbi Rebell:
And what are some specific things that people can outsource to a VA?

Kayla Sloan:
A lot of people start with social media because they find that social media is something that takes up a lot of their time and can easily be outsourced to a virtual assistant. I know a lot of other things are blog post research; sometimes they'll bring on someone to do outlines and things like that. And then also a lot of people who have podcasts use virtual assistants, hint hint.

Bobbi Rebell:
For what kinds of things?

Kayla Sloan:
They will help with show note creation, transcription. They can help with, again, social media when it comes to your podcast as well, so a lot of different things.

Bobbi Rebell:
And what do VAs typically run? What's the range that people would expect to pay?

Kayla Sloan:
For a U.S.-based virtual assistant -- which I think is important to make that clarification -- you're probably going to be looking at as little as $15, but probably as much as $40 or more if you have someone who's very experienced.

Bobbi Rebell:
Tell us more about where people can find you and the kind of things that you are doing, and how people can use your services.

Kayla Sloan:
Sure. My main website is at kaylasloan.com, and that is where you can find out more information about how to work with me to get connected with a virtual assistant. Or if you're wanting to be a virtual assistant, we can connect there as well. And I'm also all over social media.

Bobbi Rebell:
And your handles?

Kayla Sloan:
Are all the same: @kayla-r-sloan.

Bobbi Rebell:
Kayla R. Sloan, very important. Well, thank you so much, Kayla Sloan. This has been absolutely wonderful, and congratulations on your growing business.

Kayla Sloan:
Thank you so much. I hope you have a great day.

Bobbi Rebell:
Hey friends, so here's my take. I love what Kayla is doing for entrepreneurs and for the virtual assistants that are so important to their success. Financial Grownup tip number one: consider outsourcing. Whether or not you are an entrepreneur, think about the value of your time. If you're running a business, maybe you're running a household, consider the best use of your time. Outsourcing may be hiring a babysitter if you're a parent trying to grow a business from home, or if you're an entrepreneur trying to do everything. Sometimes you're better off doubling down on your strength, say sales, or anything that directly has to do with your clients, and it may make sense to have a VA do things that are more administrative in nature, like the billing. Weigh the cost. The great thing about a VA is that you can often hire them on a project basis, so you're not locked in the way you would be if you hired a full-time assistant.

Bobbi Rebell:
Financial Grownup tip number two: I love Kayla's money tip to use what you have, even if it's super fancy. But here's my tip if you don't have all that fancy stuff but want to have the fancy stuff and maybe don't have the budget or want to spend the money to go and buy it in the store. You see all that fancy wedding gifts like China and crystal, well a lot of people don't really want it, or they inherited it and they want to sell it, they get rid of it, they just don't use it. So you can often get great stuff, fancy stuff, far less than the everyday stuff if you know where to look. Who doesn't like to feel fancy, right?

Bobbi Rebell:
So some sites to check out: Replacements.com -- they sell vintage and current dinnerware, crystal, silver, and other collectables. Also take a look at Chairish, like sitting on a chair, chairish.com. You can find vintage dinnerware at really amazing prices. They sell a ton of other stuff, including chairs, but also other furniture and vintage stuff; really nice stuff. I spotted a vintage Hermes dinner plate set that retailed for $2,000 and it was down to just 950 bucks. The Real Real, which is known for selling designer handbags and clothing, they also -- a lot of people don't realize this -- they also have things like dishes and serving stuff; high-end names like George Jensen, Tiffany, Vernadeau, all at massive discounts. So check those out if you like the higher end stuff instead of going for the everyday stuff that you may see in, whatever, the mall stores. I don't want to name names, but the everyday stores. You guys know what I'm talking about.

Bobbi Rebell:
Thanks to all of you for being part of our growing Financial Grownup community. If you're enjoying the show, consider leaving a rating and even a review on Apple podcasts. I know it seems like it's going to be really difficult, but it only takes a couple of minutes and it is really appreciated, and makes a big difference in helping other people discover the show. And of course, hit that subscribe button to make sure you don't miss any upcoming episodes.

Bobbi Rebell:
Please follow me on Twitter @bobbirebell, on Instagram @bobbirebell1; you can also DM me there. And then don't forget, if you want a custom video like the promos that we do for the show, join the competition. Share the videos when you see them. You can even see them now on the YouTube channel that we have set up, so just search for Financial Grownup with Bobbi Rebell, that channel on YouTube, and you can see the promos there and check them out that way.

Bobbi Rebell:
We have our first listener episode coming up in June. If you want to be on the show and have a great money story to share, email us info@financialgrownup.com. Tell us what money story you would share, and what everyday money tip you would like to share with our audience, and we will be in touch if you are chosen.

Bobbi Rebell:
Thank you to Kayla Sloan for sharing her story. We'll be watching how her business grows along with all the entrepreneurs that she is working with. So thank you, Kayla, for helping us all get one step closer to being Financial Grownup.

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

When Brandless Co-Founder and CEO Tina Sharkey turned 30, she  didn’t want a birthday party- she just wanted the cake. Specifically a photograph of a walking birthday cake with legs that was by artist Laurie Simmons. Little did she know the significant role that work would play in her life. 

In Tina’s money story you will learn: 

-How Tina was able to re-direct her mom's budget for a birthday party to a work of art she had been eyeing

-Why the art meant so much to Tina

-The reason art is both a passion and an investment for Tina

-How she applies her art-buying philosophy to her entrepreneurial ventures

-What inspired Tina to start collecting art as a teenager

-How the art now has multi-generational significance

In Tina’s money lesson you will learn:

-The importance of commemorating milestones in life

-Creative ways to marking important moments including crowdsourcing

-Why she believes investing in significant items will have long term impact

In Tina’s money tip you will learn:

-Her grandmothers strategy for getting discounts, when things are not on sale

-The specific things tina’s grandmother would say

-Tina’s philosophy of never being afraid to ask

-How to get online discounts, even when you are in a store

-The new way Brandless is offering free credits to it’s consumers

In my take you will learn:

-Techniques to re-direct sincere, well intentioned gifts that miss the mark just like Tina did

-What to do if you are giving a gift and don’t know what to get someone

-The value of giving a memorable gift that will hold the test of time

-Why we should re-think the value of the brands we buy

EPISODE LINKS:

Learn more about Brandless on their website: Brandless.com

Follow Tina and Brandless!

Instagram: @tinasharkey @brandlesslife

Twitter @Tinasharkey @brandless

Facebook: Tina Sharkey  Brandlesslife

 

Here is a link to the fabulous birthday cake photo Tina bought!

Learn more about Laurie Simmons http://www.lauriesimmons.net/

As Tina mentioned, her art hangs at museums including Moma

 

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Transcription

Bobbi Rebell:
Support for Financial Grownup with Bobbi Rebell. The following message come from TransferWise, the cheaper way to send money abroad built by the brands behind Skype, TransferWise takes a machete to the hefty fees that come with sending money abroad, so don't get stung by a bad exchange rate or sneaky fees, join the 2 million people who are already saving with TransferWise. Test it out for free at TransferWise.com/podcast, or download the app, it is the wise way to send money.

Tina Sharkey:
That piece of art has since appreciated tremendously in value, probably 100 times, in fact, I even found out that that photograph is now hanging in MoMA. All the art that I've ever bought have been appreciated tremendously in value, and I've only bought things that I thought were real investment pieces.

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

Bobbi Rebell:
That was Brandless CEO Tina Sharkey talking about a piece of art that has been very meaningful in her life and not just because its financial value has literally skyrocketed as in it's in museums, people. But first some quick housekeeping notes before we get to Tina's interview. First, welcome if you're joining us for the first time, and welcome back if you are returning. If you enjoy this show, please share with someone in your life that you think would also enjoy the podcast. For those of you who have spotted our video promos, want to win a custom one? Pretty easy. We are having a little experimental competition from now until July 1st, if you see them, share them on social media, share on Facebook, retweet, repost, all that good stuff. The winner of the competition will get a free custom video that could be for your business, for yourself. We're going to look at who is the most active in sharing those videos.

Bobbi Rebell:
By the way, this a very special episode, we are at episode 50, time flies. I'm so excited about this guest for this milestone show. Tina Sharkey, she heads up one of the most buzzed about brands out there, Brandless. So named because they take out what they call the brand tax sale, so sell everything for just $3. $3, you heard me right, they're pulling it off major retail disruption happening. Not such a surprise though, when you hear a little bit about their co-founder and CEO Tine Sharkey. She also co-founded the women's media site, iVillage. She headed up BabyCenter, so much more. Here is Tina Sharkey.

Bobbi Rebell:
Hey, Tina Sharkey, you're a financial grownup. Welcome to the podcast.

Tina Sharkey:
I'm so psyched to be here. Thank you for having me.

Bobbi Rebell:
You are the head of one of my favorite new companies, Brandless named. You have so many accolades. Ad Age startup of the year, Fast Company Most Innovative Company of the Year, I mean, we could basically spend the whole podcast talking about how loved your new company is. Tell us a little bit about what makes Brandless so special.

Tina Sharkey:
I think it probably, just starting with the name. I think the name definitely catches people off guard because they think "Wait, are you anti-brand? Are you not a brand?" I'm like "Wait a second, we are unapologetically a brand." We're just reimagining what it means to be one, one that's built in total collaboration with the community that we serve. One that its core belief system is about scaling kindness. One that's all about truce and trust and transparency, and most importantly, we're hoping people will live more and brand less. At Brandless, everything that we make at Brandless.com is non-GMO food, mostly organic, vegan, gluten free, clean beauty, EPA Safer Choice certified cleaning. Everything that we sell at Brandless is $3, even in our first 10 months of life, we feel like we're really making a dent in democratizing access to better stuff at fair prices, and we live by the belief system that who says better needs to cost more? We want to make better everything for everyone. That's what we do at Brandless.com, and we're having a great time doing it.

Bobbi Rebell:
I can't believe it's only been 10 months, I feel like it's already changed our culture so much. All right. Speaking of culture, art, let's talk about art, because that has to do with your money story.

Tina Sharkey:
It does. I am not an artist, but I definitely see the world in pictures. There's an expression in French called [foreign language 00:04:37], and [foreign language 00:04:39] means struck by lightning, but the French interpretation of that is like love at first sight. When you say to someone in French, like "I had a [foreign language 00:04:47]," it means you feel in love with someone at first sight. That's how I've always admired art, and loved art, and found art, was that, I admire a lot of art, but there's times when it's like a [foreign language 00:04:58], where I feel like "Oh my goodness, that is like needs to be in my life." Because, at the end of the day, we don't ever really own art, you just take care of it while you get to have it, because it should withstand the test of time. I've been collecting art with every saved penny, nickel and dime since I'm a teenager.

Bobbi Rebell:
You wanted to share the story of your first big piece of art, which you got because you were actually, your mom was going to throw a party for you, tell us the story.

Tina Sharkey:
Yeah, yeah. When I was turning 30, my mom wanted to make a special party for me. I said "You know what, mom? That's so kind and generous of you. I love that. But what I really want is I have my eye on this piece of art, and there's no way I can afford it. If you wouldn't mind, maybe we could just do a small like family dinner or something, whatever budget that you were going to spend on the party, if you would help me towards this piece of art, then it would be something that I could have forever." It was actually a photograph of a walking birthday cake, it's like that giant, giant birthday cake on legs, by the artist Laurie Simmons. It's like a birthday present, because I'll have my birthday every day by looking at this photograph.

Bobbi Rebell:
Oh, my gosh. I love it.

Tina Sharkey:
That was many years ago. That piece of art has since probably 100 times in value. In fact, I even found out that that photograph is now hanging in MoMA.

Bobbi Rebell:
Wow. It's something that you love, and it ended up being an investment as well.

Tina Sharkey:
Yes. All the art that I've ever bought, not that I've sold any. Actually, that's not true, I think I've sold two pieces. But all the art that I've ever bought have been appreciated tremendously in value. I've only bought things that I thought were real investment pieces.

Bobbi Rebell:
Do you approach art as an investment first or purely from love? Or do they naturally go hand-in-hand with you?

Tina Sharkey:
I think it's that [foreign language 00:06:51]. It's like first it's about love, and really, really feeling like "Oh my goodness. I can't sleep." Like art you don't buy like shoes or clothes, it's not something you just make an instant decision on, it's something that's considered, because you have to live with it for the rest of your life, or you know, that's the idea. When I first see it, and then I think about it, I think about how I would live with it, how would it be part of my own family legacy, my own family history. That particular one, the story is even deeper in that my son was late in his verbal skills, he was sort of a running toddler before he was really forming sentences. But the only two words that he had were happy birthday.

Tina Sharkey:
Happy birthday meant everything at that time. This photograph has so much meaning to me, because it was a picture of a birthday cake. Charlie was saying happy birthday all the time, and my mom gave me the money that she was going to spend on my birthday party, and I put this photograph in my will to give to my son, because it always reminded me that his first two words were happy birthday.

Bobbi Rebell:
What is the takeaway for the listeners. How can they apply this to their own lives?

Tina Sharkey:
I think the way to apply to your own life, not everybody loves art, not everybody wants to invest in art, not everybody has the home, or the walls, or wants to be in that way, but thinking about when there is a milestone in your life that you want commemorate, how can you use that milestone to really do something that either is an experience, or something that you can both love and express your joy, but also have something that can withstand the test of time. Not just be like if you're going to have that great bottle of champagne or whatever it is. Do you really want that or would you like something that you can have forever, for a longer period of time? Thinking about milestones and passion, but also investments and time, because those things can withstand the test of time.

Tina Sharkey:
Taking that longer term view and commemorating those milestones with savings, or with opportunities, or with crowdsourcing a gift rather than having everybody get you something small, maybe you put it in a pool together to invest in something that's really going to be something that you're going to have for a long, long time to come.

Bobbi Rebell:
What a great idea. You also have a great idea that I totally buy into for your money tip that you're going to share.

Tina Sharkey:
This is great. My grandmother, we called her the goddess of goodness, and she was seriously the nicest person you ever met in your whole life. But, she did not believe in paying retail. Wherever she went, it didn't matter whether it was the finest boutique on Madison Avenue, or TJ Maxx, or Target, she would always say "Is this in line for reduction?" I swear to you, nine out of 10 times, she would always get like a 10% discount, or they said "Oh, we have a sale coming up, why don't we'll give you the sale price now." Or "We'll let you know when this goes on sale." Or "You know what? We're happy to get that, given that you're buying two things, we'll give you the second one at a discount."

Tina Sharkey:
The money tip there is never be afraid to ask. There is no harm in asking. Likely, there is a discount to be had. One of the tips that my grandmother didn't know that I now use, which is very much in line with that, is that many physical retail stores also have catalogs or also have websites. Often, when you sign up at their websites, they'll say "If you sign up and give us your email address, we'll give you 10% off," or something like that. You can say to them in the retail store "Do you offer that discount upon signing up for your email on your website?" If they say yes, then you can often say "Would you mind applying that discount if I do that here, right now?" They often will give you that right there at the retail store.

Bobbi Rebell:
So smart. Another way to save money is something happening at Brandless right now. You have exciting stuff coming up, tell us.

Tina Sharkey:
We do. We do. Just less than a year into our life, we are just recently rolling out our referral program. If you have an account on Brandless, which costs nothing to set up, and you share Brandless with friends and the discrete code that you can get in your account page, you can give a friend a $6-credit towards building their Brandless box. When they use it, you get a $6-credit to building your next Brandless box. That referral, when you think about all the people in your network, and the fact that everyone deserves to have better and everyone deserves to have better fair prices, you can give them a running start, and for every friend that uses it, that gives you more Brandless dollars to use towards your Brandless box.

Bobbi Rebell:
Basically, free money. Thank you, Tina. Tell us more about where people can find out more about you and of course about Brandless.com, but also you.

Tina Sharkey:
If you want to find out about me, you can follow me on Twitter @TinaSharkey, you can follow me on Instagram @tinasharkey, you can follow me on Facebook, but I would say the most important thing, because it's not about me, is really go to Brandless.com and tell us about you, join our communities at Brandless on Facebook, join our community and follow us @Brandlesslife on Instagram, because it's not about us, it's really about you, and we want to highlight and spotlight and share the incredible stories of the awesome people in our community. If you have recipes you want to share, if you have stories you want to share, if there's a favorite Brandless product that you love, or if there's a product you'd like to see that you think should be Brandless, let us know.

Bobbi Rebell:
Great. I cannot recommend the website highly enough, it's very interactive, there's so much great content there. You will end up enjoying yourself spending lots of time there, and time well spent. Thank you so much, Tina Sharkey, this has been wonderful.

Tina Sharkey:
Thanks, Bobbi, have the best day.

Bobbi Rebell:
Okay, friends. That interview let me feeling pretty empowered as a consumer, and excited about the changes happening in the retail landscape. But here's my take on what Tina had to say about her experiences. Financial Grownup tip number one, we all have so many well-intentioned gifts, they're the things we just don't want, the gift-giver was really sincere, and we don't want to return them, or we give them for of course a lot of reasons, mainly you just feel bad about it, if you feel ungrateful, but you don't want it, and then it sits in your house forever. The truth is, when I give a gift, and I think when most people give gifts, they want it to be something that the receiver really wants. We don't want to miss the mark.

Bobbi Rebell:
Sometimes, it pays to be a little bit creative. This is just one idea, it can be tricky, but something to think about. One of my favorite presents ever is a very special Judith Ripka ring that my husband got for me when we were first dating. He was the one that picked it out, he went to the store, he made the choice, it was on him. However, that was after one of my friends discretely let him know the kinds of things that I would really like. He had some guidance. Because of that, he was able to get something that I just absolutely love and it's just perfect.

Bobbi Rebell:
Tina's mom was going to spend a whole lot of money on a party that frankly Tina just wasn't that into, what a waste of money that would've been. Thankfully, Tina spoke up. In the end, she was able to get a piece of art that she loved. It reminds her of her mother, it reminds her of that birthday, it has wonderful associations, it even is multi-generational now because of the way that her son has interacted with it. Even though she doesn't plan to sell it, the reality is she could, and she says it's gone up maybe 100 times in value. It was also a good investment. Of course, had she had the party, the money would've gone poof for something, again, she didn't really want.

Bobbi Rebell:
Financial Grownup tip number two. Rethink how much you're paying just to buy brand names. Tina of course does have an interest in pointing this out, it is totally true, and we're talking about that many of us mindlessly buy brand names. Think of things like medication where we have reservations about buying the generic version, which by law, literally has to have the same ingredients, and yet we, myself included, find ourselves often paying up for brand names, especially everyday household goods. We love our brands. But, just like Tina redirected her birthday party money, maybe think about it this way, if you redirect the money that you would save by avoiding paying the brand tax, and add that all up, think about what you could now afford. Just a reminder, I will always tell you if I have any affiliation, any ties to a company. I have no financial affiliation or ties to Brandless, I'm just a fan.

Bobbi Rebell:
Also, sticking to the birthday theme, I feel like we're celebrating a birthday here, the show turning 50 episodes. I can't begin to thank all of you for your support. Time goes so fast. Anyway, to learn more about the show, go to BobbiRebell.com/financialgrownuppodcast. You can also sign up for our newsletter, we don't send it out very often. I believe there's just too much email out there, so I try to be careful with it. But when we do send it, we make it meaningful. Hopefully you believe it's worth your time and enjoy it.

Bobbi Rebell:
Continue to keep in touch. I am on Twitter @bobbirebell, on Instagram @bobbirebell1, you can also DM me there, feedback, suggestions for the show, all that good stuff. On Facebook, my page is Bobbi Rebell. If you like the show, please take a moment to rate and review on Apple Podcast. Tina Sharkey is a total boss. I don't know about you, but I feel like I'm going to see little legs behind birthday cakes for a little while. Imagining it, I can't get the image out of my head. She emailed me a copy of the photo, so I'm going to try to paste that into the show notes. I don't know if it'll work, but I'm going to try ... I think it'll work. I'm going to try. You will get a kick out of the picture, if not, I'll certainly find a way to send a link so that you guys can see the image that she is talking about. Thank you, Tina Sharkey from Brandless for helping us all get one step closer to being financial grownups.

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

Entrepreneur and influencer Amanda Abella found out she was underpaid and often overlooked. But when she started playing hardball in negotiations with a really big potential client, she and her agent did not get the response they expected. 

 

In Amanda’s money story you will learn:

-All the things Amanda does to have multiple income streams tied to her own personal brand

-The challenges Amanda faced after graduating from college during the recession

-How her first job laid the groundwork for her current career as an entrepreneur

-How she and her agent planned for their negotiation with a potential client

-The pivotal decision that grew her brand ambassador asking rate almost 7 times over by focusing on her unique skillset

-What is a rate sheet, and what brand ambassadors do for clients

-How Amanda researched what was a new market/line of work for her business

-If Amanda has any regrets or things she would do differently in hindsight

In Amanda’s lesson you will learn:

-How she battles her nerves in high stakes negotiations

-Why the number of social media followers are less important than many people believe

-How to get brand partnerships by knowing what matters most to them

In Amanda’s money tip you will learn:

-How to find out about unpromoted discounts at restaurants and fitness clubs like SoulCycle

-How much you can save by using them, even if they are not advertised

-Amanda’s favorite places to get discounts and freebies

-What Amanda got for free recently at SoulCycle

-Why Amanda keeps getting water bottles

In My Take you will learn:

-How to asses what you bring to the market, to better negotiate higher rates

-What to do if you don’t currently have skills that add value to, and command a premium from, the clients you want to attract

-Tips to be more confident in a negotiation

-How the power poses, recommended by Amy Cuddy can give you an instant confidence boost when you really need it

EPISODE LINKS

Amanda’s website: amandaabella.com

Amanda’s podcast

Amanda’s course on becoming an influencer

Follow Amanda!

Twitter @amandaabella

Instagram- make sure to check out her feed AND stories: @amandaabella

Facebook Amanda Abella

Soulcycle.com where Amanda loves to get free stuff!

Check out Amy Cuddy’s Ted Talk!

 

---

Transcription

Speaker 1:
Support for Financial Grownup with Bobbi Rebell and the following message come from TransferWise, the cheaper way to send money internationally. TransferWise takes a machete to the hefty fees that come with sending money abroad. Test it out for free at transferwise.com/podcast or download the app.

Speaker 2:
We went to the table with this very high number expecting them to push back on it and they didn't. Not even one peep. Not one question, not one push back. They were just like OK sign on the dotted line.

Bobbi Rebell:
Your 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 grown up is really hard especially when it comes to money. But it's OK. 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:
If you like making money and want to know how to make more and ideally from different sources you are in the right place with our guests. Before we get to her though we've been getting a lot of new listeners so I want to just welcome all of you to the show and of course thank you so much to our returning listeners. So glad you are here. And if you have friends or family that you think would enjoy the show please tell them about it. Also the video promos everyone is asking about. So glad you guys like them. If you want one for your business or just for you we're having a little competition. I'm going to make one for a listener. All you have to do is share the promo videos on social media, starting now until July 1st whoever shares the most wins. I will announce the winner the first week in July.

Bobbi Rebell:
All right. Now to my friend and guest Amanda Abella. Besides the fact that for some reason her Instagram stories seem to be more entertaining than most TV shows she's hard to label because she does as she says all the things. Amanda is all about multiple income streams. She has a book Make Money or Honey, an award winning blog. She has been a brand ambassador for big names like Capitol One and [Into It 00:02:05]. She teaches millennials how to be entrepreneurs and influencers just like her and she will soon be bringing back her popular podcast. Here is Amanda Abella.

Bobbi Rebell:
Amanda Abella, you are a financial grownup, welcome to the podcast.

Amanda Abella:
Hi. Thanks for having me. I'm so psyched to be here.

Bobbi Rebell:
And we've got to hang out and get to know each other recently at the Statement event in upstate New York. That was awesome.

Amanda Abella:
It was so much fun. I needed that so bad. You have no idea.

Bobbi Rebell:
I think we all did. I learned a lot about you. I mean you do all the things Amanda. All the things.

Amanda Abella:
Yeah all the things, literally all the things. I like my money coming from different places.

Bobbi Rebell:
Yes, multiple revenue streams, you're an entrepreneur, you're an author, your bestselling book is Make Money or Honey. And you also have an amazing social media feed that we were all gushing over at the retreat, especially your Insta Stories. You also are an influencer, you even have a course on how to be an influencer and you're a brand ambassador.

Amanda Abella:
Yup I literally do all the things.

Bobbi Rebell:
All the things.

Amanda Abella:
Yeah. What happened with me was you know I graduated during the recession and I just kind of learned really early on to always have your money coming from different places and then I was a recruiter for two years and I interviewed people who lost their jobs all the time. So I was like you always need to have multiple sources of income because if one thing doesn't work out like you get fired, well you still have money coming in from this other place so it started as a survival mechanism and now it's just a wealth building strategy.

Bobbi Rebell:
Wise words my friend. And one of your multiple income streams that is growing is your brand ambassador business. And that brings us to your money story that has to do with a big new client that almost wasn't as big as you wanted it to be. Tell us.

Amanda Abella:
Yeah so what happened there was I started getting approached a lot more for brand ambassador work. And first of all I had no idea how much money you could make doing this stuff because I was just having so much fun. I didn't know what the market rates were. I didn't know how to negotiate these situations. I didn't know anything about the contracts. But I started getting approached for this kind of work. So I went to go find myself an agent because I was like I need help. And the agent trained me a little bit on what to do in the meetings and all those kinds of things. And we were negotiating with this really big client. It was the first time I was going to do something of that magnitude and we were trying to figure out my rate sheet.

Bobbi Rebell:
What kind of business was the client in? Can you tell us anything about it?

Amanda Abella:
Financial software.

Bobbi Rebell:
Okay.

Amanda Abella:
So we were trying to figure out my rate sheet for all the different deliverables and things like that because that's how green I was right, like I didn't even have a rate sheet.

Bobbi Rebell:
What kind of deliverables would be on the rate sheet?

Amanda Abella:
You know media appearances, social media posts, blog posts, e-mail blasts, Twitter chats, all that type of stuff, all the different things that they ask you to do. I was so green I didn't even have a rate sheet for these things. And we were trying to figure that out at the same time while negotiating with this particular client.

Bobbi Rebell:
Where do you even start? Is there some kind of a standard place you can go and get that information?

Amanda Abella:
So what really helped me was asking a lot of my friends who were already doing that kind of work. And that's actually how I found out that for many years I have been low balling myself just because I didn't know, like I had no idea. I had no idea I could get paid what they were getting paid and then also one of those friends is the one who connected me with my agent and my agent who has been doing this for a very long time she kind of schooled me on how much money I was leaving on the table. So that was really helpful for me too. So that's how I found out personally.

Amanda Abella:
So what was going on was when we were trying to figure out the rate sheet we were trying to figure out the numbers and I went pretty high on this client to the point where my agent who you know she was doing her job. She's coming from many years of experience was like are you sure you want to do that because you're still pretty green, like do you want to go that high. And I thought to myself well you know what I may be green in terms of working on these big campaigns but I've got plenty of years of blogging experience. I have a pretty big social media following, they're pretty engaged. I'm bilingual. You know I bring things to the table that they need. So let's just go high and see what happens. She agreed. So we went to the table with this very high number expecting them to push back on it and they didn't.

Bobbi Rebell:
Wow.

Amanda Abella:
Not even one peep, not one question, not one push back. They were just like OK sign on the dotted line.

Bobbi Rebell:
So but here is the question Amanda. Knowing what you know now would you have gone higher?

Amanda Abella:
Well I was already pretty high for me. I mean my agent was to the point where she was like congratulations you just gave yourself a bonus of thousands of dollars for this kind of work. Good job negotiating that one. So I thought about that and for this particular client no because that was already super high for me to begin with. But-

Bobbi Rebell:
How much of a percentage higher was it than you kind of thought you were getting or that you were getting before?

Amanda Abella:
It was way more than double. It was like six or seven times more what I was getting previously.

Bobbi Rebell:
Whoa. OK. I'm sorry go on.

Amanda Abella:
So then having learned from that experience which was also my first experience like being in those meetings with an agent and learning those sort of nuances when you're in those situations with PR teams and things like that it was definitely a real lesson and you know confidence sells. Number one. And number two, fake it till you make it if you have to.

Bobbi Rebell:
But you actually came, you weren't really faking it because it sounds like when you went to them you had very specific reasons why you were worth what you were asking.

Amanda Abella:
Yeah but it doesn't mean I wasn't nervous.

Bobbi Rebell:
Of course.

Amanda Abella:
I think people think that you walk into these situations and you're like fearless and you're not, you're just pretending not to be fearless which is where the confidence comes in. But you're right I did have specific experience and specific angles and specific things that I knew they wanted for this specific campaign and I definitely used it to my advantage. And like I said my agent agreed. So you know on the mere fact that I was bilingual I can get more money just because I'm bilingual and living in a city like Miami where everybody is bilingual I forget that that's actually a really valuable asset that I could get paid a lot more money for.

Bobbi Rebell:
So what is the lesson for our listeners who may not all be social media all stars and brand influencers, brand ambassadors, how can they apply this to their own lives?

Amanda Abella:
I think it's realizing that there is a lot of talk about the influence that you have in the social media numbers. They're really not that important. One of the things my students tell me all the time is I had no idea that I could get that kind of work with 3000 followers on my Instagram feed or a thousand people on an email list. They all go into my program assuming that they need you know tens of thousands or 100000 followers to get really good brand partnerships and what they don't realize is that brand partnerships are looking more for unique angles and engagement more than they're looking for the actual numbers. Because I mean you could pay to get followers and brands know it.

Bobbi Rebell:
Alright. I want to move on to your money tip because this one is going to be a huge hit with our listeners. I love it because you're going to spill some secrets for us. What's your money tip Amanda?

Amanda Abella:
So my secret is all about the rewards programs that restaurants are really bad at marketing.

Bobbi Rebell:
Therefore they are secrets, they're sort of open secrets that nobody knows about.

Amanda Abella:
So if you frequent certain places and certain restaurants, I've noticed it's definitely more with the chain restaurants. A lot of times they have apps and on those apps they have rewards programs or loyalty programs or referral programs. So for example I go to a specific juice bar pretty often after I work out. I learned recently that they had an app where I could get like 10 percent off my [inaudible 00:10:13]after spending a certain amount or if I refer friends I get three dollars off my next juice. I had no idea because they hadn't actually like said anything to me, I just happened to see a, I saw a little thing on the napkin holder and then a friend also told me he was like you don't know that they have an app.

Bobbi Rebell:
That's so random.

Amanda Abella:
So my tip is not only to use the apps and find them but ask to see if they're even available because like I said they don't necessarily do a really good job of telling their customers that these things exist. Unless you're Starbucks.

Bobbi Rebell:
Yes, Starbucks is pretty aggressive about promoting their app. But other companies maybe not so. And if you take the time just like with so many of the money tips that we talk about here if you take the time to focus and learn about these programs, ask about them, you will benefit.

Amanda Abella:
Yep, it's all about asking.

Bobbi Rebell:
So what's the best deal you've ever gotten through an app?

Amanda Abella:
Hmm well I'm getting 10 percent off my [inaudible 00:11:07]now. So that's pretty good.

Bobbi Rebell:
Okay. Pretty good.

Amanda Abella:
Yeah I'm kind of addicted to them to be honest so I would say that's the best one although I would say probably my best deals have been through the Soul Cycle app.

Bobbi Rebell:
Oh OK.

Amanda Abella:
Yeah. So I do Soul Cycle. You know if you sign up for like certain challenges, if you're working out already anyway, you sign up for certain challenges or certain themed rides or they'll have certain promotions going on. Like I walked in yesterday and they gave me like a bag of free stuff because I'm partaking in this certain challenge and I've been tracking it you know on the app and then once I get to a certain amount of rides which the app tracks then I get a free ride. So that's probably the one that has saved me the most money because Soul Cycle is not cheap.

Bobbi Rebell:
Wait, can we just back up here because I really want to hear about the free stuff. What was in the free stuff bag from Soul Cycle?

Amanda Abella:
Yeah. So I got a bag. I got like a top to work out in. I got a water bottle. People just keep giving me water bottles lately, I have a whole collection of them.

Bobbi Rebell:
Yeah water bottles are, we got water bottles on the retreat.

Amanda Abella:
Yeah. I was joking with my roommate I was like I lose one water bottle and require another four no matter-

Bobbi Rebell:
I know, I know. I am very excited about the Soul Cycle free stuff though. You have delivered, that alone Amanda, you scored. I want to talk about you because one of the things that happened on the retreat was you made a decision to pick something up that I loved. I loved your podcast and I'm so happy that you're going to bring it back.

Amanda Abella:
Yeah so I'm bringing my podcast back after much deliberation and I really want to thank Statement and all the women who attended it and all the tips you gave me Bobbi because I've been studying your podcast since I got back.

Bobbi Rebell:
Thank you.

Amanda Abella:
I was like Bobbi is on point. Bobbi knows what she's doing. I'm going to take some notes.

Bobbi Rebell:
Thank you.

Amanda Abella:
So I'm bringing my podcast back. It's coming back in July and it's going to alternate between solo episodes where I'm answering a lot of my audience questions about you know business, online marketing, negotiating, making money, all those types of things and then I'm also going to be bringing on a lot of guests so a lot of the women who were at the retreat have actually already signed up to be on the podcast so I'll be interviewing them. It will be a lot of fun and I'm trying to really bring as much diversity as I can to the conversation. So a lot of women, a lot of people of color. I'm Latina so that's something that really matters to me. One of the things I've heard so much from people is how sometimes it's hard for them to really relate to a lot of the mainstream financial advice that's out there because these people just you know either don't look like them or don't have the same experience as them. So I'm trying to bring as much diversity to the conversation as I can.

Bobbi Rebell:
Well thank you for that. I'm working on that here too. So I think we are hopefully on a good path with all that. Where can people find you, especially your Insta Stories which we're all obsessed with.

Amanda Abella:
Yeah my Insta Stories are a lot of fun. You guys can go watch me freak out over seeing snow for the first time on my Insta. Bobby was there for that. So you could go to Amanda Abella. That's my Twitter and my Instagram, I'm all over those all day long. You could also go to my Web site amandaabella.com or you could find my podcast, previous episodes of my podcast. So they're on iTunes, Stitcher, I Heart Radio, Spotify, YouTube, just search make money or honey or my name.

Bobbi Rebell:
Thank you Amanda.

Amanda Abella:
Thanks so much for having me.

Bobbi Rebell:
Hey friends, so here's my take on what Amanda had to say. Financial grownup tip number one. Take a moment and write down the skills that you have that are unique, things you can use as leverage to get more money in a negotiation. So in Amanda's case one thing that she is is Latina, she's also bilingual. If you can't think of something, become something. Learn a skill that will set you apart from others. Invest in yourself in a specific intentional way that will give you a foundation to command higher compensation. Focus on the skills that are most in demand but still hard to find in your field.

Bobbi Rebell:
Financial grownup tip number two. Amanda talked about the fact that confidence sells and that you have to sell yourself. She did OK when she waited for businesses to come to her but her business really took off when she took control and became proactive. Find a way to appear confident even if you're having jitters inside like Amanda admits she sometimes does. If you need to just leave the room to gather your thoughts if you're getting nervous during a negotiation. Maybe do some power poses. Look up a TED talk by a woman named Amy Cuddy. I'll put it in the show notes and you will see what I mean. I've done it myself and it really works.

Bobbi Rebell:
We have our first listener episode coming up in June. If you want to be on the show and have a great money story to share email us at info@financialgrownup.com and tell us what story you want to share and what your everyday money tip would be if you are chosen. Thank you all for being part of our financial grownup community. If you enjoy the show consider leaving a rating and review on Apple podcasts and of course hit that subscribe button to make sure you don't miss any episodes. Follow me on Twitter @BobbiRebell. On Instagram I am @BobbiRebell1. Don't forget to DM me with your feedback about the show. I love hearing from everyone.

Bobbi Rebell:
And also if you want a custom video like the promos that we do for the show join the competition. Share the videos when you see them on social media. Retweet, repost and so on. You can even see them by the way on YouTube now. We will pick a winner by July 1st. So look for us to move forward in early July. Amanda is amazing. I'm excited for her podcast to come back so make sure to watch her social channels for updates on that. Great episode. And thank you Amanda for giving us the confidence to ask for what we deserve and sometimes even more than we think we can get. Helping us all get one step closer to being financial grownups.

Bobbi Rebell:
Financial grown up with Bobbi Rebell is edited and produced by Steve Stewart and is a BRK media production.

 

Clever Girl Finance’s Bola Sokunbi is famous for saving $100k on a $54k salary in about 3 years. But then she started dropping $3,000 on a massive collection of luxury handbags, most of which she never even used. 

In Bola’s money story you will learn:

-How she saved more than $100,000 on a salary of just $54,000 in three and a half years

-The side hustle that helped her reach that goal

-How after she reached that goal, she made a very unexpected spending splurge

-The fascinating reason, looking back, that she went down that path and kept going!

-The moment she woke up and realized she had to make a change

-Exactly what she did to get back on track and make a profit in the process

-The regret she had despite making money on her debacle

-Why she thinks so much about Amazon stock

In Bola’s money lesson you will learn:

-Why keeping her handbags in top condition was the key in getting a solid return when she went to sell them

-Other ways to maintain the value of resale able luxury goods like handbags

-Her take on investing in goods like handbags compared to the stock market and corporations

In Bola’s money tip you will learn:

-Ways to get luxury goods like handbags for less money without compromising quality

-Bola’s favorite pre-owned goods resources

-How friends can trade or sell handbags to each other

-Bola’s new strategy for buying expensive handbags

In my take you will learn:

-Why I compare Bola’s handbag venture to winning the lottery

-The difference between saving money and building wealth

-How to sell luxury goods like handbags, as well as other things you can sell, like baby strollers

-Why I do not promote buying fake goods as a cheaper option

Episode links

Bola’s website: CleverGirlFinance.com

Bola’s podcast: Clever Girls Know

Follow Bola!

Twitter Clever Girl Finance

Instagram Clever Girl Finance

Facebook Clever Girl Finance

LinkedIn Bola Sokunbi

 

Also mentioned in the show:

Vestiare Collective

Fashionphile

Rent the Runway

---

Transcription

Bobbi Rebell:
Support for Financial Grownup with Bobbi Rebell and the following message come from TransferWise, the cheaper way to send money internationally. TransferWise takes a machete to the hefty fees that come with sending money abroad. Test it out for free at transferwise.com/podcast or download the app.

Bola Sokumbi:
I've always been a handbag junkie. It's just something about leather. Like the smell of fine leather that just ... I don't know.

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

Bobbi Rebell:
Hey, friends. This is one of those, "She did not do that," episodes. My guest was a champ at saving money on a very low income, but once she had that money, things took in unexpected turn and then there was yet another unexpected twist to the story. Bola Sokumbi is a certified financial education instructor and the force behind the very popular, Clever Girl Finance, a website and podcast that empowers and educates women to make the best financial decisions for them. Here is Bola Sokumbi.

Bobbi Rebell:
Bola Sokumbi, you're a financial grownup. Welcome to the podcast.

Bola Sokumbi:
Thank you for having me. I'm excited to be here.

Bobbi Rebell:
I am such a fan of yours. First of all, in addition to being a money expert, you are the force behind Clever Girl Finance, which is a website and a podcast. It started after you. I don't even know how you did this. You saved $100,000 in three and a half years on a salary of, I want to say, about $50,000?

Bola Sokumbi:
Yeah. I was making $54,000 before taxes.

Bobbi Rebell:
Wow. Give us just the high level. How you did that.

Bola Sokumbi:
I basically got lean and mean with, probably, my finances. I contributed to my retirement fund from my employer because I knew they were offering a match and that was a way for me to get some free money. I kept my expenses super low. I avoided my friends and stayed home. I wasn't going out to eat very much. I wasn't buying alcohol. I was the-

Bobbi Rebell:
Temporarily, right?

Bola Sokumbi:
Temporarily.

Bobbi Rebell:
Right.

Bola Sokumbi:
I was in a steady ramen noodles and coke diet. I focused on saving 40 to 50% of my paycheck and anything extra.

Bobbi Rebell:
Wow.

Bola Sokumbi:
I save my tax returns, my bonuses. I try to save as much as possible. I also started a side hustle. I started a wedding photography business, which really helped to increase the amount of money I was bringing in. That helped contribute to me being able to save that amount of money. Finally, I avoided credit cards as best I could. I, instead, used a charge card that require me to pay my balance in full every month. That kept me really mindful about my spending, but overall, it was really just setting the intention that I wanted to save and I wanted to challenge myself to save six figures. I put my mind to it. I gone to that focus and three and a half years later, I was able to save that $100,000.

Bobbi Rebell:
So smart. In full details, if anyone wants, go to Clever Girl Finance. I want to talk about your money story that you brought because Bola, this is like an incredible story given what you just said.

Bola Sokumbi:
Yeah.

Bobbi Rebell:
Here you are. You got $100,000. You're hustling with a side hustle. You're eating ramen noodles. You're doing everything intentionally, maxing out your retirement account to get the max. What do you do? You start buying $3,000 handbags. Tell us what, what.

Bola Sokumbi:
Holla.

Bobbi Rebell:
What?

Bola Sokumbi:
Let me break it down. Basically, I got to this point where I had saved a ton of money. I had a lot of money in the bank. Actually, at the end of the four years, I had about $150,000 saved. I was making more money. I had my business. I gone raising at my job. I was earning, now, well over six figures at this point. I was like "Wow, I have all this money. I maxed out my retirement savings. I'm still meeting my savings obligations. I just have to treat myself." I've always been a handbag junkie. It's just something about leather, like the smell of fine leather that just ... I don't know.

Bobbi Rebell:
I personally would've bought a pint of Haagen-Dazs if I wanted to treat myself but okay. $3,000 handbags.

Bola Sokumbi:
I went all the way, yes. I got my first designer handbag like "Oh my God, this is amazing. It's beautiful. I bought this in cash. I love it."

Bobbi Rebell:
What was it? Describe it.

Bola Sokumbi:
It was a Channel Jumbo in black caviar leather with gold hardware, classic, beautiful.

Bobbi Rebell:
Okay. I wouldn't know.

Bola Sokumbi:
I got the one. Should've been enough, but then I was like well, few months later, I have all the spare money. I'm still saving. I didn't know what to do. I want to invest, but I don't need to invest that much. I'm going to buy another designer handbag. I got to the point where I was buying several handbags for maybe three or four years. To me, it was fine because I was still saving. I was still meeting my obligation.

Bobbi Rebell:
How much do you think you spent in total, Bola, on the handbags?

Bola Sokumbi:
Oh my goodness. I don't know. If we were to have an Instagram competition on who could grab their handbags steady for the next 30 to 60 days, I would win, every time.

Bobbi Rebell:
Wait. Wait. You're going to have a different handbag every day for 30 to 60 days?

Bola Sokumbi:
Yeah, I could. Yes.

Bobbi Rebell:
Oh my gosh.

Bola Sokumbi:
I could've. I have a lot of handbags. I had them in different colors-

Bobbi Rebell:
Were they just sitting in the closet? Were you taking them to work? What was going on with the handbags?

Bola Sokumbi:
That's the sucky part. I maybe use like two or three. Well, I was exaggerated. I didn't have 60. Exaggerating. About a month. Let's say, a month. I didn't really use them. That was a disappointing factor. I'm one of those people that believe that if there's something that you like and it's something that you're going to use, go for it as long as you plan it out financial, but I wasn't using them. They did not make financial sense for me. I was using like one or two of them, and then maybe the others, I would look at or wear to a baby shower for 25 minutes and it goes right back into the closet. It did not make any financial sense. Fortunately, for me, at the time that I purchase them, for those of you who are into handbags, knew that there have been a flurry of price increases especially with the higher end luxury brands.

Bola Sokumbi:
At the time I bought the handbags, I bought them before the crazy price increases started. I got to a point where I was like "Okay, this doesn't make any sense." I will look in my closet and all I would see would be dollar bills stacked up. My husband is like "You need to let these go. You don't even use them. It doesn't make sense. You feel so guilty about having them because you're not using them." I took it upon myself to sell almost every one of them. I still have a few. The ones I use. It was really hard to sell them because I felt like I was selling my children. It's crazy. When I think about it, it's ridiculous, but I sold them. Luckily, for me, because of the price increases, I was able to sell them for a lot more than I purchase. That very first Channel handbag, the black jumbo I just described with caviar hardware, I paid $2,900 for it and I sold it for $5,500.

Bobbi Rebell:
Oh my goodness. Only you, Bola, would actually turn a cringeworthy shopping habit into a positive investment experience.

Bola Sokumbi:
However, Bobbi, to the point you asked me before we started recording was, I made money but when I think about it, I really didn't make that much money because one of the things that trigger me to start selling those handbags was Amazon stock. I realized that if I had spent all that money I spent on those handbags on Amazon Stock, I would've had times 100 of what I had spent on handbags. Not just doubling my money. I would've like times 100 it, right?

Bobbi Rebell:
If you had actually bought Amazon Stock, but truthfully, how much do you think ... do you think you spent $90,000 on handbags?

Bola Sokumbi:
Oh, I don't know. Over a three to four year period, I spent a lot of money.

Bobbi Rebell:
Okay. You bought 30 handbags at $3,000 each.

Bola Sokumbi:
Yeah. I had about 30. They were not all the same price.

Bobbi Rebell:
Okay.

Bola Sokumbi:
They were not all $3,000 handbags.

Bobbi Rebell:
What was the most expensive one?

Bola Sokumbi:
The Channel handbags I had. They were about in the $3,000, $3,500 range at that time. Now, they're not anymore. They're about 6 to $7,000 now.

Bobbi Rebell:
Wow.

Bola Sokumbi:
I don't own any more handbags by the way.

Bobbi Rebell:
What is the lesson from this beyond the fact that there was a time in life when investing in handbag was actually an appreciable asset? Still, they probably know. I don't know the market, but anyway, beyond the fact that it actually turned on to be a good investment.

Bola Sokumbi:
I wouldn't even describe as an appreciable handbag because for me, it was just purely for the fact that I was not using them. No one is going to pay you top dollar for a handbag that has been worn and beat up. If you're buying something, I believe that you should be using it. Lesson for this is cost per wear. You can have 100 Channel handbags if you want to have them and if you can afford them and you're paying for them in cash and it's not taking off your financial goals, but what is your cost per wear. How often are you using them? Are you getting your money's worth? If you buy a handbag for $3,000 and you wear it once, then that one time you wore it cost you $3,000 and that makes no sense. If you buy this handbag and you wear it 3,000 times over four years, then that handbag cost you $1 or maybe it comes down to cents and pennies and that starts to make more sense because as opposed to buying $25 handbags over that three-year period and use that one handbag over that time and you get your cost per wear.

Bola Sokumbi:
To me, cost per wear is really important. That's how I plan out my wardrobe. I still buy fancy things, but I have to be using them. I have to get my cost per wear down to pennies for it to make sense. I know when I see something if I'm going to use it or not. Understand your cost per wear. People may think, "Oh, buying handbags is crazy," but people spend their money on different things. For me, it was the handbag thing. Some people spend their money on electronics, on cars, on things that they don't necessarily use like having a second car in your garage that you drive on Saturday is not good to drive per wear.

Bobbi Rebell:
The handbags make you feel good.

Bola Sokumbi:
Yeah. I would pick a handbag over a lot of things. That was me. That was a lesson I learned. I put the money right back into my investment accounts. I was better for it.

Bobbi Rebell:
Let's stick with the handbag thing. What is your money tip, your everyday money tip for everyone?

Bola Sokumbi:
I would say that if you are a handbag girl like me, no shay, no judgment, find ways to get the handbags that you like at a cheaper cost or without putting out so much money. For instance, Bobbi, you and I talked about Rent the Runway. You really like that. If you want to actually own them, you can think about getting them preowned from sties like Fashion File or Vestiaire Collective. There's a bunch of different ones that are reputable that sell authentic products or even local consignment stores in New York. There's a ton of them. Or buying them off of friends who are trying to let go of their handbags or trying to recycle their wardrobe. Those are great ways that you can get luxury at a lower cost. You can also wait until some of these handbags go into the sale and purchase them that way.

Bobbi Rebell:
Right. Because a lot of them are really classic.

Bola Sokumbi:
Yes. It's all about buying something that you know you're going to use for a long time. I tend to avoid any trend pieces because I don't want to be out of fashion next year after spending all this money on it. I buy bags that I can carry forever. That's what I do. Every purchase I make right now, I carry that bag to shreds, basically.

Bobbi Rebell:
Definitely. Get that cost per wear down. Where can people find you and learn more about Clever Girl Finance?

Bola Sokumbi:
Yeah. You can find me on my website at clevergirlfinance.com, on Instagram at Clever Girl Finance, on Facebook, Clever Girl Finance. I also have a podcast called, Clever Girls Know. You can search for it on iTunes, Stitcher, Sound Cloud. You'll find it there as well.

Bobbi Rebell:
I think everyone should definitely check all of that out. I am a big fan. Thank you so much, Bola.

Bola Sokumbi:
Thank you for having me, Bobbi.

Bobbi Rebell:
Hey, friends. Except for the fact that she was ironically able to sell the handbags at a profit, this whole thing reminds me of what happens when people inherit a ton of money or they win the lottery and then they just don't know what to do, so they go shopping. Financial Grownup tip number one, Bola was great at accumulating money but she was selling herself short when it came to building wealth. She was meeting her goals in terms of saving and investing and all that, but that doesn't mean she couldn't move the goal post given the resource that she had and make even more ambitious goals. Not a problem to buy a bag that you can afford, but she wasn't even using most of them. Bola is very specific that, well, they ironically went up in value if she had invested the money. In her case, she talks about Amazon Stock, she would've made a lot more money. Of course, you could lose money in the stock market. There's no guarantee of that. It's just something to consider.

Bobbi Rebell:
Financial Grownup tip number two, if you do buy luxury goods and you aren't using them, it is easier than ever to sell them, so many resources online. You may not make as big a profit as Bola did, you may lose money but you're still going to get some cash. I have sold some bags on the real wheel. I've been happy to have the cash even though it went for less than I paid. You can also buy slightly used bags there at a discount if you want them. As I've said before, you can rent them at Rent the Runway or other similar websites. I will leave some links in the show notes for you guys. Given these resources, I would also urge you to stay away from the fakes. It undermines the economy and the business of the companies that produce the real thing. Don't buy fake bags. Also, it is illegal.

Bobbi Rebell:
We want you to be a financial grownup. Send us an email to info@financialgrownup.com if you want to be considered for one of our monthly listener episodes. Just tell us what the money story is that you want to share and your everyday money tip. If you have not already, please rate and review the podcast on iTunes, Apple Podcast. That helps others discover us and grow the community. It is truly appreciated. Make sure to subscribe so you don't miss any upcoming episodes and follow me at Bobbi Rebell on Twitter @ bobbirebell1 on Instagram and on Facebook, I am at Bobbi Rebell. Bola is the best. I am so appreciative that she was brave enough to get really candid. She definitely got us all one step closer to being financial grownups.

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

Certified Financial Planner Manisha Thakor bonded with her dad over a love of the HP12C calculator and all of its investing tools. Now, the author of Get Financially Naked  shares her actual math formulas on how to lock in the right number for retirement and other goals. No excuses for listeners after this episode. 

 

In Manisha’s money story you will learn:

-The important role her father played in her early financial lessons

-How she bonded with her father over an HP12C calculator

-The specific way Manisha calculated different retirement investing outcomes as a tween. 

-The role inflation plays in the future value of investments

-The power of compounding

In Manisha’s lesson you will learn:

-Why Manisha feels women in particular need to focus not just on saving but also on investing

-The corrosive power of inflation

-Why we need to put  the recent period of historically low inflation in context

-How to manage your investments in times of extreme market volatility

In Manisha’s money tip you will learn

Manisha’s investing formula

1. Take the total dollar of your current savings and investment portfolios

2. Subtract out money you know you will need to spend in the next 5 years

3. For any of your long term money, like retirement, take 110 and subtract your age 

4. That is the amount that should be in equities

5. For example Manisha is 47. 

6. 110-47 = 63 percent should be in equities

 

In My Take you will learn:

-Why you do not need an HP12C calculator because so much is available online

-Exactly how to find out the status of your retirement accounts and if you are on track to reach your goals

-How and why you should automate your retirement savings. 

 

Episode links: 

Follow Manisha!

Twitter: @manishathakor

Facebook: Manisha Thakor

LinkedIn Manisha Thakor

YouTube: Manisha Thakor

Instagram Manisha Thakor

Pinterest Manisha Thakor

MoneyZen.com

Get Manisha’s books! http://www.moneyzen.com/books/

---

Transcription

Bobbi Rebell:
Support for Financial Grownup with Bobbi Rebell and the following message come from TransferWise, the cheaper way to send money abroad. Built by the brands behind Skype, TransferWise takes a machete to the hefty fees that come with sending money abroad. So don't get stung by a bad exchange rate or sneaky fees, join the two million people who are already saving with TransferWise. Test it out for free at transferwise.com/podcast, or download the app. It is the wise way to send money.

Manisha Thakor:
He showed me how to calculate how much money I would have by the time I was 65 if I invested my babysitting and my lawn mowing money, and then we did a couple scenarios. We tested how much I would have if I was earning 5% after inflation, if I earned 6% after inflation, and when I saw how big those numbers were I was just hooked.

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 a really hard, especially when it comes for 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:
We are geeking out here at Financial Grownup, but stay with me friends because you will have more money and be wealthier if you listened to this episode and follow my guest advice. Manisha Thakor is the author of Get Financially Naked, How to Talk Money With Your Honey. She is also the force behind MoneyZen, and is a practicing certified financial planner. If that sounds pretty cerebral, well, she will take that as a compliment. She started learning about investing very, very early. Here is Manisha Thakor.

Bobbi Rebell:
Manisha Thakor, welcome. You are a financial grownup. I'm so excited you're joining us on the Financial Grownup podcast.

Manisha Thakor:
I'm so excited to be here, and to be deemed by you a financial grownup.

Bobbi Rebell:
You're very much a grownup. You're the author of two books, On My Own Two Feet, and I love the second title, I know everyone does, Get Financially Naked. You also have MoneyZen. Lots going on.

Manisha Thakor:
I feel super excited about the world of personal finance and investing.

Bobbi Rebell:
Good, and I'm super excited about the story that you brought to share today, because it has to do with some father-daughter bonding around, not the dinner table, around the HP 12C calculator.

Manisha Thakor:
I love this. When I was around 11 years old, my dad, he's an MBA and a CPA, he sat me down in a moment of father-daughter bonding that only financial geeks, like ourselves, could really appreciate. He had an HP 12C calculator, which for folks who may not be familiar with it, is a financial calculator that enables you to do sophisticated compounding calculations on it.

Manisha Thakor:
He showed me how to calculate how much money I would have by the time I was 65 if I invested my babysitting and my lawn mowing money, and then we did a couple scenarios. We tested how much I would have if I was earning 5% after inflation, if I earned 6% after inflation, if I earned 7% after inflation, and when I saw how big those numbers were I was just hooked.

Manisha Thakor:
That was really my first introduction to the power of compounding, and I think because he had my physically touching the buttons on the calculator, and then he made me write down the numbers in a little grid on a notepad. I can literally still even remember what the notepad looked like. It was so tactile and so visual.

Bobbi Rebell:
Do you have the notebook still?

Manisha Thakor:
You know, I wish I did. He and I both say in retrospect, "We totally should have saved that for the grandkids," but it's in my mind's eye. That's how I got hooked on saving and investing.

Bobbi Rebell:
So then what is the lesson for our listeners? Should everyone be bonding over calculators?

Manisha Thakor:
That's right.

Bobbi Rebell:
We know that's not going to happen.

Manisha Thakor:
No, I-

Bobbi Rebell:
Let's bring it down to a realistic level.

Manisha Thakor:
The lesson for me, and the lesson that I want to scream from the mountain tops, is, and particularly for women, is that it's not enough to just save money. Saving is great, and it's freaking hard to do, but you must invest it as well, first and foremost to offset the corrosive power of inflation.

Bobbi Rebell:
Which is picking up by the way, so that's something we need to start being more aware of, and a lot of young people haven't really seen inflation at the level that other generations have. But it is going to become a bigger part of our dialog.

Manisha Thakor:
Yeah, and Bobbi, you've nailed it. We've just gone through such a bizarro period of de minimis inflation. An example I love to give is 100 bucks over a 30 year period at 3% inflation is worth $40, was, at the beginning. If you just increase that inflation to 5%, which doesn't sound like a big jump, but that drops the value of $100 in 30 years to what $20 would have bought.

Manisha Thakor:
So small [inaudible 00:05:54] inflation have a huge, huge impact, and that's why you cannot just save. You have to invest, because the first step of investing is keeping your money growing at least with the rate of inflation. If you do investing well, then ideally over the long run you grow your portfolio even faster than inflation, which increases your real purchasing power.

Bobbi Rebell:
Okay. Now for your money tip, Manisha. We're geek out even more, because you have actually brought a formula. Your, Manisha's, magical formula for investing success. I promise everyone, just stick with us, she says it really well. She's going to explain it all, and we're going to have it all written down in the show notes for you as well. Go for it.

Manisha Thakor:
The way I think about how to take your hard earned savings and invest it is the following. First, take a look at the total dollar value of your current saving and investment portfolios. Second, subtract out any money you know you need to spend in the next five years. This could be money you need for a home down payment, or it could be your six month emergency fund.

Manisha Thakor:
Then, for any of your long term money, which for most of us is our retirement money. So it's any money that you know you don't have to spend in the next five years. What you do, is you take 110, and you subtract your age to get a back of the envelop estimate of what percent of your portfolio should be invested in stocks. That was a mouthful, and Bobbi, as you mentioned, it will be in the show notes, but I'll give you an example.

Manisha Thakor:
I'm 47 years old. We'll round that down, because at my age you like to round down. To keep the math easy, 110 minus 45 equals 65. So a good starting point for me, for how much of my long term money at my age should be in stocks, is 65%. Lo and behold, that's how much I have of my long term money in stocks.

Manisha Thakor:
The biggest mistake that I am seeing with young people these days is shying away from investing their savings, because they're afraid of losing money. So they're missing those vital early years of compounding. That's why it's so important that you subtract out the money you need to spend in the next five years, so no matter what the market is doing, you're fine. The money you know you needed, it's in cash. It's only your long term money that's being invested.

Bobbi Rebell:
I think a lot of young people witnessed their older siblings, or their parents, really being burnt in the recession, and that's a lot of the hesitation.

Manisha Thakor:
I'll just say, Bobbi, when I hear somebody tell me that 2007 to 2009 ruined their retirement, what I say is, "No. Either you had the wrong asset allocation going into it, or you blink and you deviated from your plan." Because if you followed the formula that I'm saying, and you didn't have any money that you needed to spend in the next five years in the market, in 2007-2009, you would have seen your portfolio drop as much as 50%, but you wouldn't have sold a single share of anything, because you didn't need to touch it, and then you would have seen your money double or triple as you came out of the recovery.

Manisha Thakor:
So the people who lost in 07-09, where the people that were forced to sell at bottom to maintain their lifestyle, or got scared because they didn't have the cash cushion, and sold at the bottom. That's why this formula is so important.

Bobbi Rebell:
Right, and you've got to sit tight. Even the beginning of 2018 we had some scary days. You've got to know your focus and stick with the plan. All right. Mrs Manisha, I also hear you have big news, new projects, new jobs. Tell us.

Manisha Thakor:
I'm so excited. I have just accepted the role of vice president of financial education for an amazing firm called Brighton Jones. I could not be happier. When I think about what I want to accomplish in this world, my belief is that money is power, and women need more of both.

Manisha Thakor:
And so I am going to be doing my darnedest in this new role to help women achieve that. As part of that, I'm really going to be ramping up my efforts with my MoneyZen newsletter. So if listeners are interested, I encourage you, go to my website, moneyzen.com. I'll have a monthly newsletter that I'll be putting out. It's educational, and I'm really going to be working hard to share the most vital resources, articles, tools, each month around women's economic empowerment, and how we can all use personal finance and investing to increase our voices and choices. I always say, "Money gives women, it gives everyone, voices and choices," and financial education, and financial guidance are what helps unlock those doors.

Bobbi Rebell:
Awesome. Before I let you go, where can we find you on social media?

Manisha Thakor:
My name is a mouthful, and I'm the same handle on everything. I'm ManishaThakor everywhere. It's M-A-N-I-S-H-A-T-H-A-K-O-R, on Twitter, Facebook, LinkedIn, Instagram. If you forget that, go to moneyzen.com, because I have all my social media icons right up at the top.

Bobbi Rebell:
All right. Thank you so much for joining us.

Manisha Thakor:
Bobbi, always a pleasure to chat with you.

Bobbi Rebell:
As warned, Manisha and her dad totally geeked out with all that math, but the good news is, you guys don't need to go out and buy yourself fancy HP 12C calculators and do all this kind of fancy math, because these days it's really all there for you.

Bobbi Rebell:
Financial grownup tip number one, there is nothing more powerful than seeing the numbers. And like I said, you don't even have to do the math yourself these days. Log into your HR website from your job, or if you work for yourself and you have retirement accounts, which you should, go there. Go to the provider, and just take a look. Most of them will have nice calculators. They'll do the math for you. They'll have probably some graphic ways to show you how you measure up, where you are relative to your retirement goals.

Bobbi Rebell:
You can actually see how you stand, and see how you feel about it. You might get pretty emotional. It could be a really emotion. You might doing pretty well. It could possibly be not that great, but maybe that will motivate you. But the important thing is, get the information, it doesn't take much work, and make decisions from there.

Bobbi Rebell:
Speaking of decisions, financial grownup tip number two. While you're on that website, look at the retirement savings, and look for a box that says, "Increase your withholding," or a box you should check that says, "Increase your withholding by 1% every year," and of course check that box.

Bobbi Rebell:
Now, you can always undo it, but by checking that box it will automate increasing the amount of money that you are putting away each year, and you probably won't feel it because it's tax deductible, so it won't cost you that full amount, and it will amplify your savings.

Bobbi Rebell:
We have been hearing a lot from you guys, wanting to share your own financial grownup money stories, lessons, and money tips. So we are going to start having one guest a month be a listener. If you want to be considered, email us at info@financialgrownup.com, and tell us, what is the money story that you would like to share, and what is the money tip that you would also share with us, if you are chosen.

Bobbi Rebell:
Subscribe if you have not already, and help us spread the word by sharing on social media. I am @BobbiRebell on Twitter. Follow me, and please retweet these silly promo videos I'm doing. They're a lot of fun. I enjoy making them. Hopefully you guys are going to enjoy seeing them, if you have not already. Help us reach more listeners. On Instagram I am @BobbiRebell1, you can also repost those, and go to bobbirebell.com/financialgrownuppodcast to learn more about the show, and sign up for our mailing list so you can hear about things like how to be guest on the show. I hope you enjoyed Manisha'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 Stewart and is a BRK Media production.

When model and actress Victoria Summer got her big break first in Saving Mr. Banks, which starred Tom Hanks,  playing Julie Andrews, and then in Transformers 4, she was happy about the big upfront paycheck- but got really excited when she learned about residuals aka passive income. 

In Victoria’s money story you will learn:

-About her first big breaks as a hollywood actress

-How the pay system in Hollywood works

-The similarities between acting and modeling and other “gig” economy jobs

-How Victoria manages to balance one-time paychecks and residual income

-What her one big spurge was after that big paycheck

In Victoria’s money lesson you will learn: 

-How Victoria creates multiple income streams

-Why Victoria organizes her money in different bank accounts

-Her philosophy of acting like she is broke as a budget motivator

-Her goals to start a skin care line, a vegan handbag line and grow her production company

-Her strategies to promote herself as a brand

-The importance of top line income

In Victoria’s money tip you will learn:

-The danger of taking advice from the wrong people

-The warning signs to look for in advisors

-Why well-intentioned advice can often be off-base

In my take you will learn:

-The importance of choosing side hustles that complement, not contradict your primary career

-Why taking advice from well-meaning friends and relatives should be taken in context. 

-The best way to find the right people to give you career and business advice.

Follow Victoria!

VictoriaSummer.com

Twitter: @VictoriaSummer

Instagram: @VictoriaSummer

Facebook: Victoria Summer Entertainment

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Transcription

Victoria Summer:
Us as actors, we are personal brands. And all actors have to realize that you really are selling yourself. So for me it's work on promoting myself as a brand, and also, increasing the amount of income I can have from multiple streams.

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.

Bobbi Rebell:
But it's okay. We're going to get there together. I'm going to bring you one money story from a financial grownup, one lesson, and then, my take on how you can make it your own. We got this.

Bobbi Rebell:
Hey everyone. So if you were to do a social media post about the gig economy, what kind of image would you use? Probably maybe an Uber driver, a millennial doing graphic design or coding or someone running errands at services like Task Rabbit.

Bobbi Rebell:
But take a minute to think about the business of acting. After the studio system ended, actors were in many ways pioneers in the gig economy. My guest today is a rising star. She is actress Victoria Summer, and she got her big break playing Julie Andrews in Saving Mr. Banks which starred, Tom Hanks.

Bobbi Rebell:
But the movie that gave her first really big payday, and key here is that it was more than just an upfront paycheck, was Transformers four. Here is Victoria Summer.

Bobbi Rebell:
Victoria Summer, you are a financial grownup. So great to have you on the podcast.

Victoria Summer:
Thank you. Great [inaudible 00:01:43] to be here.

Bobbi Rebell:
For those of you who don't know her work you will soon. She is a rising star, actually you've really risen, what am I saying. You were Julie Andrews in Saving Mr. Banks, you've been in Transformers Four, and you've also been with me on Bold TV, that's how I met you in New York City recently. And I'm so glad we're connecting on the podcast now.

Victoria Summer:
Me too, yes.

Bobbi Rebell:
And speaking of those roles, even though your big breakout hit was in that phenomenal role in Saving Mr Banks, your big money story actually has to do with really your biggest paycheck to date came from Transformers Four, and it was a big lesson to you, very eyeopening in something that is very relatable in what is becoming more and more of a gig economy, where we get sudden spikes of income. Tell us more.

Victoria Summer:
I actually remember when I booked that job, it was for me ... Even though I didn't say it in Mr Banks, it was the biggest job I'd ever booked, because it was such a big franchise, it was Michael Bay. I was going to be on set for three weeks with all these huge actors. And of course I knew, I was going to get residuals on that job. I was very excited about the passive income that I could make, not just the money that I got up front from being on set, but the passive income.

Victoria Summer:
At the time, I was living in a guesthouse, I'd not really been settled in LA that long, and it was just a big deal for me. So I thought, oh my God, wow, this big check upfront, three weeks of work which is a big deal for me at the time.

Victoria Summer:
So yeah, my lesson really was working out, how was I going to actually manage that money.

Bobbi Rebell:
Right. Well tell me a little bit more about how it works, because people may not understand how the payments work in Hollywood, you get paid very sporadically, really only when you work right. So most movies you just get a set paycheck and then they're done, at least that had been your experience up to this point.

Victoria Summer:
Yeah, but what happened to me on Transformers was they wanted me to be on set specifically for three weeks, so they bought me out for a three week period. And that was my deal, and then after that, once the movie aired, then I got residual income. So you get that four times a year. You get it quarterly.

Bobbi Rebell:
And one of are the challenges as an actress is that, you have income that is completely unpredictable. How do you manage that?

Victoria Summer:
Completely unpredictable, because for me, I'm doing auditions day in day out, and unfortunately, although I wish I did, I don't get paid for additions. And auditions take up a huge amount of my time. And when I'm working say on a movie like Transformers, you have a lot of money all at once and you tend to think, oh my God, I'm rich. What am I going to do with this money, oh my goodness.

Victoria Summer:
So for me, I've had to be careful and learn how to strategize in order to make sure that for the downsides and the down periods that I have with no work, that I have money set aside.

Bobbi Rebell:
One quick digression question. Did you buy anything, any little splurge Victoria?

Victoria Summer:
I bought a dog.

Bobbi Rebell:
You bought a dog. That's a necessity in life okay. That's not a [crosstalk 00:04:44] splurge. That's the best and I know you had your dog with you in New York, so that's not a splurge. That is always allowed. We advocate pet ownership here, they're the best.

Bobbi Rebell:
I want to get your lesson though because, it's important for our listeners to understand how ... You have ways that you manage having such sporadic income, and a lot of it is psychological. So share with us your lesson from that story and really from being an actress and learning to deal with what is it many cases 'cause you don't always get residuals. And even the residuals, you don't always know what they're going to be. These sort of spurts of unreliable income. Which again freelancers, the gig economy, we can all relate.

Victoria Summer:
Yeah, I mean with residuals you're absolutely right, you have no idea how much it's going to be. So whenever I get a check, it's always like oh, okay. But, you know, you can't predict that. So for me first and foremost is multiple streams of income, but also you know, when I do get these sort of big check windfalls, I make sure to put money aside. And honestly, from day to day, the best thing that works for me in my life particularly, is staying broke.

Victoria Summer:
I'm not saying poor, I'm saying convincing myself that I'm broke because I kind of ... For me as a person, I work very well on a highly necessity level. I tend to pull things in when I feel like I have to.

Victoria Summer:
So what I do is I have reserve bank accounts which are basically for future investments. So I move any money that's sitting around into these bank accounts to create passive income flows and also to use to set up other businesses. And so for me day to day, I do feel like I'm broke, and I work like I'm broke.

Bobbi Rebell:
And what kind of investments do you focus on?

Victoria Summer:
Well, for instance, I want to start my own skin care line, and I'm also wanting to start a vegan handbag line and that's important to me. Plus also my production company, I have to invest time in that. So that's really where my money goes is to start other businesses and to expand my brand really. I mean, honestly us as actors, we are personal brands, and all actors have to realize that, that you really are selling yourself.

Victoria Summer:
So for me it's work on promoting myself as a brand and also increasing the amount of income I can have from multiple streams.

Bobbi Rebell:
I think that's so smart and it's an interesting thing because, just like so many other businesses, the film business and the acting business has really evolved and is so much more driven by individuals and there's a lot of opportunity in that, but it also means that you have to be really smart about it. Yu have to be deliberate, as you are, and intentional, all those buzzwords.

Victoria Summer:
Yeah, you do. You have to be really smart and honestly, I focus on income. Every day I'm looking at okay, where's my money, where can I go and get money at this point, where is my next paycheck coming from, and how can I get more money from the different areas that I work in, and how can I expand? So I really do focus on income more than anything.

Bobbi Rebell:
Which is so smart, and that also brings us to the money tip that you brought because that really has to do with believing in yourself.

Victoria Summer:
Yes. Absolutely. To me, it's interesting. I didn't grow up in the kind of family where they were working in the theater or they were working on movies. My dad worked in the mail room of a bank, my mom worked in a school as a secretary, so I come from a prime middle class family, and I was always told, cut your cloth according to your means, never use credit cards, don't take any risks, that kind of thin.

Victoria Summer:
Honestly, I just had to get educated on the finance for myself. I think my money tip would be, don't take advice and don't listen to people close to you who really don't understand your business, or don't understand the actual area of money. They probably haven't had very much money, and they give you advice on money, but they really have given up on money themselves. So for me, just be careful of who you actually take advice from, and get educated.

Bobbi Rebell:
Yes, you have to own it yourself, which is what we're trying to do here at Financial grownup. So Victoria Summer, tell us where you can be found on social media, your website and what you're up to these days.

Victoria Summer:
Yes, you can find me on Instagram at Victoria Summer, on Twitter at Victoria Summer, and then on Facebook, Victoria Summer Entertainment. Then you can also, for more information go to my website victoriasummer.com.

Bobbi Rebell:
This has wonderful. Amazing advice, you are such a smart cookie my dear. I am so impressed with so many different things going on, and you're so smart with your money. I truly appreciate you joining us.

Victoria Summer:
Thank you very much for having me, it's great taking to you.

Bobbi Rebell:
So I think we all learned a lot about the acting business and how erratic the paychecks can be, so it's definitely part of the gig economy. So here is my take, financial grownup tip number one, Victoria talked about her multiple income streams and her business aspirations, which at first had me a little bit concerned about whether she was really focused enough on acting. But then when I really thought about what she was saying, it did start to make a lot of sense, because she was looking towards businesses that were complimentary to her skill set, and her primary career as a model and actress.

Bobbi Rebell:
So for example, she wants to have a skincare line. That makes sense. she's got a background in modeling and she's beautiful. She also wants a vegan handbag line, and she of course has a production company. As a model and actress, that can make sense. If she were an accountant who wanted to start a skincare line, maybe it makes less sense. Not that it couldn't be done, but you don't really have the same kind of synergies.

Bobbi Rebell:
Financial grownup tip number two, Victoria talks about being wary of advisors that aren't successful in your field. Basically she's talking about well meaning friends and family that don't really understand the nuances of the business that you're in. Because, they have ties to us, sometimes the people closest to us have complicated motivations. For example, and it's well meaning, but a parent may advise a child to be more cautious in their career because the parent may prioritize security over risk, when maybe it takes risk to be successful in some careers, many careers. But especially something like acting.

Bobbi Rebell:
Instead, maybe try to find a mentor that is in the business that you are in or aspire to be in, and then get advice from them. You'll get a more experienced vantage point, and maybe without the baggage of being a stakeholder in your life. Now we want to ask something of you. If you liked this show, help us get the word out. Tell a friend, write a review on Apple podcast, i Tunes or wherever you want, or just share this episode on social media. Be sure to tag me and then I can share it on that platform as well, and I love it by the way. A lot of you guys have been DMming me and, telling me how much you like different episodes. That's awesome.

Bobbi Rebell:
Victoria maybe a glamorous Hollywood actress but I found a lot of her story actually pretty relatable, and very relevant to a lot of the universal themes in our lives, and I hope you got a lot of value out of the conversation as well, and that we all got one step closer to being financial grownups.

Bobbi Rebell:
Financial grownup with Bobbi Rebell is edited and produced by Steve Stewart and is a BRK media production.

Trade Bodge and her partners set out to build a business- that they knew was challenging before they even started. But they focused on funding, building a strong foundation, and learning from the past mistakes. 

 

In Trae’s money story you will learn:

-The market opportunity Trae and her partners saw when they created ThreeCustom.com

-The challenges the new business faced, including the difficulty of scaling up

-The creative way they funded the business

-Why Trae left the business

In Trae’s lesson you will learn:

-The challenge in finding the balance between waiting until a business is “ready” and moving forward while there is the most excitement

-Why she believes entrepreneurs should pay as much attention to how time their launch, as how they spend their funds

-Specific ways to research markets ahead of time, and during the early stages of a business launch including trade shows and how to get competitor insights. 

-How to use time to your advantage

In Trae’s money tip you will learn

-Where to find money, that is already yours, to fund your startup

-How they each saved $25,000 to put towards their business

-How to avoid feeling deprived when saving for a goal

In my take you will learn:

-The realities of start-up life

-What to do when you just aren’t that into your startup

-Tips to make sure you remain financially solvent even as an entrepreneur with a startup

 

Episode Links

Threecustom.com on Twitter: https://twitter.com/ThreeCustom

Traebodge.com

Follow Trae!

• Twitter https://twitter.com/truetrae

• Instagram https://www.instagram.com/traebodge/

• Facebook https://www.facebook.com/Truetrae/

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Transcription

Trae Bodge:
We had the best intentions. We wanted to get out there and start this business. We found out that customization is very difficult to scale, and so any business who has attempted to do bespoke or customized products can attest to this. It's very, very difficult to grow a business like that.

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

Bobbi Rebell:
Hey, everyone. This is an episode about starting something really big, being all-in, and then finding out maybe it's not for you and having the strength to, well, exit gracefully. My guest and her partners were off to the races with what seemed like a genius idea: blend customer colors to replace makeup products that were no longer available. But, while the business is still chugging along, Trae Bodge left and is now a smart shopping expert that you can see all over the media and with her column in Women's Day. Here is Trae Bodge.

Bobbi Rebell:
Trae Bodge, smart shopping expert, you are a financial grownup. Welcome.

Trae Bodge:
Thanks so much for having me.

Bobbi Rebell:
Congratulations, by the way, are in order for your new Women's Day column.

Trae Bodge:
Oh, thank you so much. I'm really excited to be partnering with Women's Day as their financial expert. I'm covering everything from best buys month-to-month, how to maximize your tax return, how to save on your Amazon purchases, all sorts of things that savvy shoppers need to know.

Bobbi Rebell:
Awesome. We will definitely put a link to it in the show notes. I'm excited to hear your money story because, first of all, it has to do with the beauty business, it has to do with being entrepreneur, and it has to do with how much money do you really need to start a business? Do tell.

Trae Bodge:
Many years ago, two friends and I thought that we wanted to start a beauty business that specialized in the reproduction of discontinued colors. This is something that one of my partners and I had done for another brand that came on to the scene, blew up really quickly, and then fizzled out really quickly. Because, we found out, is that customization is very difficult to scale, and so any business who has attempted to do bespoke or customized products can attest to this. It's very, very difficult to grow a business like that.

Trae Bodge:
But we had the best intentions. We wanted to get out there and start this business and custom-blend products for women, and men, of course, and makeup artists. We started, for the first couple of years, creating our plan, saving our tax returns, saving our bonuses very-

Bobbi Rebell:
Saving the refunds from the tax returns.

Trae Bodge:
Yes, yes. Saving our tax refunds, and planning along the way. What this business was about was really about answering a problem that many women had, which was when you have a favorite product, like your favorite eye shadow or your favorite lipstick, and then that product is continued, we set out to reproduce those products as close as we could to the original color and texture. Then we kept that formulation on file so you can reorder it any time. Now, I [crosstalk 00:03:33]-

Bobbi Rebell:
I love that.

Trae Bodge:
It's such a helpful process for so many people because you finally find that thing that works, and then suddenly, you can't get it anymore. Forgive me, I do sometimes speak about it in the past tense because I'm no longer with the business. The business is still alive and well. You can find it at threecustom.com. My two partners are still running the business, but about four years ago, I decided that I needed to move on and do new things, which is where I landed as a smart shopping expert.

Bobbi Rebell:
Tell me, what is the lesson from that story? What is the takeaway?

Trae Bodge:
For me, and in terms of being a financial grownup, when we set out to start our business, there's this excitement and energy about getting the business out there right away. My recommendation to all potential entrepreneurs out there is I know you want to get out there and you want to get out there now; however, the time that it takes to save the money or to crowd-fund, for instance, if you're going to do Kickstarter or Indiegogo, or if you're going to look for venture capital or money from family and friends, the time that it takes to gather that money is time that works for you. You need the time to do your market research, to attend trade shows, to interview people and really flush out what you want this business to be because there are so many brands out there. How are you going to differentiate and set yourselves apart from the competition?

Trae Bodge:
For me, I would say to people, just take your time. Don't get frustrated by how long it takes to start a business, and use that time to your advantage.

Bobbi Rebell:
Give us a money tip, something tangible that people can literally do today.

Trae Bodge:
This is a tip that I think can apply to many things, whether it's going to be starting a business or paying off your student loans or any other debt is to take money that may feel like a windfall, and rather than spending it and going on a luxurious trip or buying a fancy handbag or even doing a renovation in your apartment, save that money. Save that money towards your business.

Trae Bodge:
What my partners and I did over the course of about two years is every tax refund we got, every bonus that we received, and then any extra money from if we inherited a little bit of money or anything extra like that, we did not take that money for ourselves. We put it in the bank. The three of us each saved over two years. We were in our early 20s at the time. We each saved $25,000. For the three of us, we were able to start our business with $75,000 after couple of years.

Trae Bodge:
That would be my money tip is that money that feels like something extra, instead of going to town with it and spending it, put it away towards your goal.

Bobbi Rebell:
But it's hard because you feel like it's found money.

Trae Bodge:
Yeah. It does. It is hard. It almost feels like you're on a diet. It's like you have that diet and you have the rules in front of you and everything you're supposed to eat and not eat, and you really, really, really want to eat that thing that you're not supposed to eat. To me, it's the similar feeling. You see that money, cross your hands, and you so want to go out and enjoy it and treat yourself because especially with, say, a bonus from work, it's like that's being given to you as a congratulations for work well done, and you want to enjoy that, but instead, put that away. You'll save money so much faster than you think you can.

Bobbi Rebell:
Trae Bodge, thank you so much. Wonderful story. Wonderful advice. We will all be checking out your column in Women's Day and visiting your website, which is traebodge.com, right?

Trae Bodge:
Yes, it's traebodge.com or truetrae.com, and definitely follow me on social. I'm truetrae or traebodge. I hope to see you all there as well.

Bobbi Rebell:
Wonderful. Thank you.

Trae Bodge:
Thank you.

Bobbi Rebell:
I loved Trae's story because it highlights the gray areas of startup life. Sometimes, a business is solid, but maybe not the future that you want. It's not a bad thing. It's just not your thing. Financial grownup tip number one: Leaving something that isn't right for you is like leaving a relationship with someone that you are just not that into. You could stay. It will probably be okay, but by staying with something that isn't for you, you're also not finding the business or career that is right for you. It's the missed opportunity cost. Don't get caught up in sticking something for fear people judging you or an idea that you are not a quitter. It's not about the exit. It's about what you find behind the door that you open as you leave.

Bobbi Rebell:
Financial grownup tip number two: As Trae says, whenever you start something new, don't rush in. Take the right amount of time to build yourself enough runway that you can be intentional when you do ramp up. You don't want to be scrambling for cash to fill an order. Be purposeful. Spend the time before you spend the money.

Bobbi Rebell:
Thank you all for your support. If you have not already, hit that subscribe button so you won't miss any episodes, and be in touch on Twitter @bobbirebell, Instagram @bobbirebell1, and of course, visit my website bobbirebell.com and sign up for our mailing list so we can keep you posted on what's going on at the show, and of course, spread the word. Tell a friend. Thank you also to Forbes for naming Financial Grownup as one of five podcasts that are getting it right. That was really cool. I hope you all enjoyed this episode with smart shopping expert Trae Bodge and that we all got one step closer to being financial grownups.

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

 

After 148 rejections in the first funding round, Kathryn Minshew co-founder and CEO of the Muse took note of what she did wrong and upped her game when she went looking for new financing. Minshew scored close to $30 million thanks to the new approach. 

 

In Kathryn’s money story you will learn

-How Kathryn and the Muse team re-vamped their strategy the second time they raised money

-How Kathryn rebounded from the 148 rejections in the seed round of financing

-How The Muse raised $30 million from investors

-How they were able to ask for less money and come out with more than the original targets

-The way Kathryn structured her process when pitching investors

-How they organized their pitches and research to be more effective

-Kathryn’s investor prioritization strategy

-The specific thing Kathryn said to investors to get them to the table faster- and with more interest in her company

-How a second round of financing is different- and should be approached differently from a seed round

In Kathryn’s lesson you will learn:

-The advice Kathryn found most helpful from her networks and mentors

-How she got help from other entrepreneurs

-How to tell if the investors are wrong not to invest- or if your idea and pitch is missing the mark

-How to figure out who your end users are- and why it is important

-Strategies and specific things to ask in order to get honest input about your company

In Kathryn’s money tip you will learn:

-Negotiations can be about more than just cash

-How to ask for signing bonuses, signing bonuses, flextime, vacation time, better titles.

-Why budgets for professional training are essential and how to negotiate for them

In my take you will learn:

-How to learn lessons from rejection, and incorporate them in your next venture

-The importance of taking the time to throughtfully plan and customize presentations and pitches

-How to level the playing field even when the other party is clearly more powerful. 

Episode links:

TheMuse.com

Kathryn’s book with Muse co-founder Alexandra Cavoulacos The New Rules of Work

Follow Kathryn and The Muse!

Instagram @kminshew @themuse

Twitter: @Kmin and @TheMuse and @TheNewRules

Facebook  https://www.facebook.com/thedailymuse

https://www.facebook.com/minshew

Kathryn Minshew, Co-Founder and CEO of The Muse shares her rebound from 148 investor rejections to eventually raising $30 million for her startup. Listen to her episode of the Financial Grownup podcast at bobbirebell.com/financialgrownuppodcast-- Created using PowToon -- Free sign up at http://www.powtoon.com/youtube/ -- Create animated videos and animated presentations for free.

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Transcription

Kathryn Minshew:
If you tell someone you're the founder of a company and ask for their input, they are more likely to give you positive impact because they don't want to hurt your feelings. If you tell them that you're a consultant helping a company understand how its market positioning lands, or helping a company better understand what it's doing well and what it's not, people are much more likely to give you totally unfiltered feedback for the series A because I was running a process.

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

Bobbi Rebell:
Hey, everybody. This is an episode about rejection, and what you would do differently the second time around. How to tell were they wrong to reject you? Maybe your message could be a little bit more on point. The Muse founder and CEO, Kathryn Minshew has told the story many times of how she and her colleagues were rejected 148 times when they when to raise money for their startup, The Muse. Once the company got off the ground, it has been a massive success, and many people would say, "Well, those 148 people, they must be so sorry that they rejected it." And of course, that is true to some extent. But also, Kathryn looks back and realizes she had a lot that she would do differently the next time. And in fact, she did do it differently when she went back for the next round of financing, and that's what we talked about. Here is Kathryn Minshew.

Bobbi Rebell:
Kathryn Minshew, you are a financial grownup. Welcome to the program.

Kathryn Minshew:
Thank you so much. I'm so excited to be here.

Bobbi Rebell:
And you are well known as the founder and CEO of The Muse, the amazing job site, and also well known for being rejected when you went to raise money. Tell me how many, 140 something times?

Kathryn Minshew:
148 times. It was like rejection for breakfast, lunch, and dinner, with a few meetings and noes inbetween for fun.

Bobbi Rebell:
And you are the queen of resilience, and one thing that you talk about in your book, "The New Rules of Work", which I should have mentioned to everybody. She is the author of a fabulous career book called "The New Rules of Work".

Bobbi Rebell:
You talk about your personal brand, and how important it is to define it. That fundraising and the lack of it for so long became your personal brand. So you brought with you a money story that has to do with what happened next, after you finally did get the initial funding and you went back for me. Tell us.

Kathryn Minshew:
Absolutely. Well, first of all, I'll say it's much easier as we all know to talk about failure once you've moved past it. So it became much easier to tell the story of the 148 noes after we had already successfully raised our series A and B rounds. So we've raised almost $30 million in venture capital so far for The Muse.

Bobbi Rebell:
Amazing.

Kathryn Minshew:
It's been a totally wild ride. So my financial story involves what I set out to do, or rather what I did in the series A to ensure that we had an outcome that was very different than the seed round. Because, obviously, I knew how important it was for that next round, to get it right from the go-ahead. And so to try and condense the story into something very quick, we wanted to go out and initially we were thinking about raising six to $7 million. But actually given the advice that I got while preparing for a fundraise, we were actually told to start out saying we were thinking five to six or five to seven, and then slowly let the demand build. So instead of us going out for a big number and being less sure if the market would respond, start out with a smaller number. And then, if the market is really excited about our business, let the negotiations and the demand push it up, which ended up working really well for us because we ended up raising 10 million after we had overwhelming demand.

Kathryn Minshew:
I also was incredibly structured about the process probably because I was a little bit paranoid after having such a difficult time with our seed round. So ahead of time, I really worked the story, got all of our metrics out there. I thought about how best to position them, which numbers to lead with, what to put first so that we could really grab people's attention. We were obviously lucky in that we had really great revenue growth and a lot of very strong metrics.

Kathryn Minshew:
And then, I actually created a spreadsheet. I took all of the investors that I was even remotely interested in talking to. I put them in a spreadsheet. Divided it up by location, so that when I was in New York, San Francisco, Boston, Chicago, DC, et cetera, I could meet with people who were there. Then, I included information about whether they had invested in any similar companies, any competitors. Any companies that might give them a better understanding into what we did at The Muse. I would include notes from different meetings. I actually would also rank how excited I was after each meeting to continue conversations, so I could prioritize the ones that I was most excited about. I would say that really helped to keep me on track, and so we were also able to run a pretty tight process, where we pinned all of our first meetings with investors to the same two-and-a-half or three-week period.

Kathryn Minshew:
It was really interesting because in the seed round, we had a lot of trouble with investors saying, "Oh, I'm busy, right now. But how about in a month?" I wasn't confident enough in the business, so we would just take whatever we could get for the series A because I was running a process. I would write back to people and be like, "You know I'd love to talk, but unfortunately, I need to get all of our first meetings done by X date. So I can push it a few days, but let me know if you're going to be able to make it work. And if not, I'm totally fine. We'll keep in touch and maybe there'll be another round that you can participate in." And what was fascinating is a lot of people would say, "Oh, let me move around my schedule. Absolutely, I can make it work." And suddenly, we were negotiating from a more even position. And the ones that weren't able to or the ones that said, "No, sorry. I can't do it," they probably would have never backed the company to begin with.

Bobbi Rebell:
True. Do you think looking back, obviously when you were going for the most money, the second round, you were a stronger situation to begin with. But had you used the techniques that you were now using that you just talked about, would you have had more success the first time?

Kathryn Minshew:
You know, maybe. It's so hard to know because the seed round for a startup is really different than later rounds because people aren't necessarily looking at your metrics. They are to some extent, but they're really betting on you. And I think the fact that it was my first proper company that I was fairly young at the time, this was six-and-a-half years ago, so it was very early in my career. And I think that plus the lack of knowledge or understanding about what we were trying to do in the business were some of the biggest concerns. So I do think we could have had a better time and controlled the process a bit more, but I also think there were just some fundamental and structural things that we had to get through and really prove on very limited capital before we could really go out and successfully fundraise from bigger investors.

Bobbi Rebell:
So now, what is your advice to listeners and especially want-to-be entrepreneurs that are looking to raise money, start businesses, and especially to young women?

Kathryn Minshew:
I would say, firstly, you can't understate the importance of perseverance because it is so hard in the early days. But I think that doesn't mean that you just keep doing the same thing without adjusting your tactics and thinking about how you could be more strategic. I found it to be so invaluable to get the advice from others, especially other female entrepreneurs. Because sometimes we have a lot of great friends who are entrepreneurs, who are men, but sometimes the tactics or the approaches or behaviors that would work for them, didn't work the same when I did them because of unintentional or unconscious bias or other things. And so I found that it was really helpful to surround myself with a network of entrepreneurs of both genders to get a lot of advice, to test out different approaches to see what felt natural and normal to me. Because if it feels too unnatural to you, investors will probably pick up on that, and it won't help you communicate that confidence that you are looking for when you're starting to talk to investors about your business.

Bobbi Rebell:
So one last question about this for our listeners, how do you know the difference between maybe your idea just isn't that good, and that's why you're not getting funding and you should stop, or you should persevere as you did because your idea just isn't hitting the right people at the right time with the right message?

Kathryn Minshew:
Absolutely. So you've just gotten to the crux of what makes this so hard, which is that there is no silver bullet, and you will never have 100% confidence or certainty either way, which is incredibly difficult. However, I think there are a few things you can use to help you directionally get that sense of whether your business is likely to be successful. The first, and I think the most important is to figure out who are your end users and do as much as possible to get unfiltered feedback from them.

Kathryn Minshew:
For example, if you tell someone you're the founder of a company and ask for their input, they're more likely to give you positive input because they don't want to hurt your feelings. If you tell them that you're a consultant helping a company understand how its marketing positioning lands or helping a company better understand what its doing well and what it's not, people are much more likely to give you totally unfiltered feedback, and you need that unfiltered feedback when you're trying to ascertain if you really need to keep pushing forward on your business.

Kathryn Minshew:
So in my case, even though we were getting rejection, after rejection, after rejection from a lot of investors, we were hearing things from our users and from people who were signing up to use The Muse that indicated we had tapped a nerve and we were on a path that people love. They wanted us to use the product. They'd say I love The Muse, but can you do these five things? Make it better here. Change this. That's all positive feedback because that shows you that there is a need. You just have to keep getting better, and I think that is what gave me the oomph to keep going. But I will just call out it's not like I knew the whole time, oh my gosh, this is a great idea. I just have to keep going. I definitely struggled with whether I should accept that these people that were much more experienced than I, that were successful investors, maybe they knew something I didn't, and I just had hubris.

Bobbi Rebell:
All right. Let's do a money tip. You are the career guru, and you have so many amazing ideas and tips in your book. I wanted to pull some out of there and get maybe your favorite tips that people can use in their careers, and their ventures that they could maybe put to work ASAP at their next job interview or their next negotiation, what have it.

Kathryn Minshew:
I thought through a lot of different things I could share here, and the one I came up with that I wanted to talk about today is the fact that when you negotiate, it is not just all about cash and I think it can be really empowering to realize that because so many of us have anxiety about negotiating a salary, negotiating a raise. Whether it's at the beginning of a job search, or when you're getting a promotion. But I would encourage people, remember that there are a lot of other things you can negotiate for.

Kathryn Minshew:
So obviously, base salary is the thing that people talk about most. But what about signing bonuses, performance bonuses if you achieve certain things? You can also negotiate for flex time, for vacation time, for a better title that might help you in your career. One of the most creative things that I've heard is people negotiating for a budget for professional development and training.

Bobbi Rebell:
Specific money. In other words, not just saying, "Will you send me," in theory. It's very specific.

Kathryn Minshew:
Oh, very specific. In fact, there was someone at an organization that had mandatory salary bans that the leadership wasn't able to go beyond, and so she said great. Why don't you dedicate ... I think it was five or $10,000 towards training development conference that will include my travel, and that will help level me up to be a better employee for you, to let me do my job better, and it won't invalidate the salary cap. This will just be another way that you're investing in my growth, and they said yes, and I think that is such a great example of creativity when it comes to negotiation.

Bobbi Rebell:
Amazing. That's such great advice. Thank you so much. Tell us quickly before we wrap up, what are you guys up to at The Muse these day, and where can people find you?

Kathryn Minshew:
Absolutely. So people can find me at The Muse or @kmin on Twitter. As a company, we are doing a lot right now, but we have been really focusing on we rolled out a new feature called Discussions on TheMuse.com, where people can ask and answer each other's questions. So if you have a career question or you want to learn more about negotiating a raise, we've got a way now to get advice from our community and hear other people's stories. And then, I'm also just kind of fascinated down the road by continuing to explore this idea of how people make the best career decisions, how they find the right fits, and how we help companies tell their stories in a more genuine and authentic way that isn't about just come work here, we're great, but really shares the information people need to know to decide do I want to be part of that organization, or be part of that company?

Bobbi Rebell:
Hey, friends. Here's my take on what Kathryn had to say.

Bobbi Rebell:
Financial grownup tip, number one. Like she did, do your homework, including learning what went wrong the first time. Even if you think the companies or whomever you were pitching to were wrong to reject your idea, we all have room for improvement. Kathryn went out and asked for advice, for example, about how much money to ask for. She actually went for a smaller number based on the advice as a strategy, and ended up raising more money, so it worked. She was also much more organized and structured in her preparations the second time around. She was specific to each company, and deliberate in her presentation. She planned geographically, so she could be efficient with her time. Kathryn even ranked how excited she was about prospects, so she could prioritize and focus on her resources and the best alow there.

Bobbi Rebell:
Financial grownup tip, number two. Stand up for yourself, even if you need them more than they need you. In Kathryn's second round, when prospects said they didn't have the time to meet with her any time soon, she pushed back and was not only able to get them to the table faster when they were interested, but also to level the playing field for a stronger negotiating position.

Bobbi Rebell:
Thank you for listening to this episode of financial grownup. Please subscribe if you have not already. Reviews are great if you have just a few minutes. You can follow me @bobbirebell on Twitter, @bobbirebell1 on Instagram, and learn more about the show at BobbiRebell.com/FinancialGrownupPodcast. I hope that you all enjoyed this episode of "Financial Grownups" with The Muse's Kathryn Minshew, and that we all got one step closer to being financial grownups.

Bobbi Rebell:
"Financial Grownup" with Bobbi Rebell is edited and produced by Steve Stuart, and is a BRK Media production.

 

Lauren Smith Brody, author of The Fifth Trimester turned down a high prestige offer when she realized saying yes would make her feel like a fraud. Then, a surprise turn of events proved the decision was the right one. 

 

In Lauren’s story you will learn:

• Why she turned down a speaking engagement invitation she really wanted

• How her entrepreneur philosophy has changed since her book was released

• How turning down that so-called opportunity led to better ones

In Lauren’s lesson you will learn:

• How she balances her desire to volunteer with the importance of being paid for your work

• Her specific strategy to put a price on your time- even when you are volunteering

• Specific ways parents can evaluate how much time to allocate to different commitments

In Lauren’s money tip you will learn:

• The specific way she decides what to outsource, and what to do for herself

• Tips for entrepreneurs on setting up their business

• How taking the time to learn new skills like setting up a website and putting together presentations, improved her value as an entrepreneur. 

• What she chose to outsource and the mistakes she made along the way. 

In my take you will learn:

• Why you need to decide if you are a business, or a hobby. 

• How to evaluate the true vale of an opportunity, beyond the direct financial benefit

• Why I am adamant that entrepreneurs must trademark their brands

 

Episode links:

Squarespace

Harvey Karp’s book: The happiest baby on the block

Learn more about Lauren at http://www.thefifthtrimester.com/

Follow Lauren on instagram @thefifthtrimester

Follow Lauren on Twitter @Laurensbrody

Follow Lauren on Facebook @thefifthtrimester

Buy Lauren’s book The Fifth Trimester

In this Financial Grownup podcast episode, Lauren Smith Brody, author of The Fifth Trimester turned down a high prestige offer when she realized saying yes would make her feel like a fraud. Then, a surprise turn of events proved the decision was the right one. You'll also learn the things she decided to outsource and tips for entrepreneurs on setting up their business. #EntrepreneurInspiration #BusinessTips #Author

In this Financial Grownup podcast episode, Lauren Smith Brody, author of The Fifth Trimester turned down a high prestige offer when she realized saying yes would make her feel like a fraud. Then, a surprise turn of events proved the decision was the right one. You'll also learn the things she decided to outsource and tips for entrepreneurs on setting up their business. #EntrepreneurInspiration #BusinessTips #Author

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Transcription

Lauren S. B.:
I didn't want to get up in front of a room full of women and know that I was sitting up there as a fraud, as someone who wasn't getting paid for this.

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

Bobbi Rebell:
Hey, friends. This episode is about saying no when you are not valued. And by being valued, I mean, being paid. My guest is Lauren Smith Brody. She is the Author of the bestseller, The Fifth Trimester: The Working Mom's Guide to Style, Sanity, and Big Success After Baby, which just came out in paperback.

Bobbi Rebell:
Lauren is also the founder of The Fifth Trimester Consulting business, which helps parents and businesses create a more family-friendly workplace culture. Lauren is also the former Executive Editor of Glamour magazine, and you've seen her all over the media, including Good Morning America and CNN. Here is Lauren Smith Brody. Lauren Smith Brody, you are a financial grownup. Welcome to the program.

Lauren S. B.:
Thank you. Thanks for having me.

Bobbi Rebell:
We'll talk more about this later, but your book, The Fifth Trimester, is out in paperback this week, so congratulations on that.

Lauren S. B.:
Thank you. It's been a fun year.

Bobbi Rebell:
You've been building The Fifth Trimester into a whole consulting business, which brings us to the story that you are going to share because it has to do with basically running your business, and how that's evolved.

Lauren S. B.:
I have learned so many financials this past year since the hardback launch last spring, I can't even tell you. The story that I wanted to share is about the first big thing I turned down. So this whole year has been about building, as an entrepreneur, my own business, and really having to put a price tag on my time, and on what exposure is actually worth to me, and what things I'm kind of willing to do for free for the good of the community, and the good of my business, and what things are really, I must be paid for. So anyway, I had a big bank. Like think of the biggest name bank you can possibly think of-

Bobbi Rebell:
I have a definite name in my head, but okay. Go on.

Lauren S. B.:
I'm not going to say it. The two came to me this week and it was through someone else. It wasn't actually totally direct, but the conversation got a little muddled along the way, and it turned out that they didn't want to pay me to do a presentation. They wanted me to do a presentation. Didn't want me to pay them, and I'm thinking-

Bobbi Rebell:
Literally free? Not a low pay, just free?

Lauren S. B.:
No, literally, free. And so then it was like, well, maybe they would buy a big quantity of books to give to all of their employees, which at least, sort of makes my soul feel a little better about the situation. And all I want to do is take a big screenshot of their logo, turn it gray, put it on my website, and say, "I spoke here. It's huge. It's worth so much to me." Except then, I found out that actually the event was a client event. They were trying to woo new business and I was basically going to be the hired entertainment, and they weren't going to pay me for it.

Bobbi Rebell:
No, they probably would pay the caterer, right?

Lauren S. B.:
Yeah. Oh, yeah. I'm sure the food would have been really nice. I wouldn't have eaten because I would have been speaking. Anyway, I don't mean to sound bitter. I'm actually not bitter. It made me feel so good to say no to this because it's the bravest I've been about saying no to something. It could have been valuable for me to have that exposure.

Lauren S. B.:
But actually, I didn't want to get up in front of a room full of women. It was going to be women, and talk about things like the pay gap, pay parity, the motherhood penalty, and know that I was sitting up there as a fraud, as someone who wasn't getting paid for this. So it felt good to make that decision and then the big PS is that the very next day, I got two more offers from other big corporations that want me to come and speak. I turned them right over to my speaking agent, she's negotiating it, and I think it's going to go well.

Bobbi Rebell:
And they will pay you.

Lauren S. B.:
And they will pay me because I feel confident enough that if I can say no to X thing, then I can probably say yes to a lot of other really good things.

Bobbi Rebell:
So what is the lesson? I mean, I feel like there's a lot of pressure, especially on moms, to volunteer.

Lauren S. B.:
Yeah.

Bobbi Rebell:
Because so many moms are so qualified, they're organized, they have their act together, and yet, they may not be working to maximize their income in certain years, so there's an expectation. "Well, you have the time. You should volunteer."

Lauren S. B.:
Right.

Bobbi Rebell:
I mean, and that's really what that was. Is you would have been a volunteer for this for-profit event.

Lauren S. B.:
Right, and you know what I love even more than my business, is I love my children, and I love their school, and I love all of the things that I can do for that community, to foster that community for them. And so what I really learned ... I worked in corporate America for many, many, many years in publishing. I worked at Condé Nast. And then so this is my first venture working for myself. This is the first time when I've had the freedom to do a lot of this volunteer work, and I do squeeze it in, in the middle of the day and then I'll end up doing a lot of my work-work in the evenings.

Lauren S. B.:
And so after saying yes to the umpteenth thing that I really did enjoy, I found that I had to kind of in my head, put a price tag on my time, which sounds a little crass. But it's only in my head. I'm not sharing it with anybody else. But it's I need to put a price tag on what is an hour of my volunteer time worth? It is, what sort of satisfaction does it give me? Is it worth X dollars of my day to miss this much work to be able to enjoy this much pleasure? Is it something that I'm doing with my kids? Is it something that will directly benefit them? Or, is it more of a sort of like status thing in the school, which is worth less to me, frankly, because it just doesn't feel genuine.

Bobbi Rebell:
But sometimes we feel obligated.

Lauren S. B.:
Yes, we do feel obligated. And it's okay, like when you're part of a community, you do have an obligation sometimes to be a part of it, but it's helped me. If I put a dollar amount on an hour of my time, both for work and for volunteering, and that has made me make a lot of decisions a lot more clearly and easily about whether I say yes or no to things.

Bobbi Rebell:
I want you to share a personal money tip, and I know the one that you've brought has to do with being an entrepreneur, and things that you have learned in terms of what you want to do yourself and what you outsource, and how to do that. How to decide.

Lauren S. B.:
Yes, there are so many mothers who are very, very, very good at outsourcing absolutely everything that is not something they're naturally good at. That's not me. I'm one of these people who would rather just do it all myself. Well, there's diminishing returns very often on that, and it comes back to what is an hour of my time worth? So when I was putting together my website, thank God there's Squarespace, and there's actually things that make it sort of intuitive and easier, but I have never done that before. I'm not even joking.

Lauren S. B.:
This is embarrassing to admit in a podcast. I had never made my own PowerPoint. I always had a staff of designers and assistants. I would tell them what to write and do and they would animate me this gorgeous PowerPoint. Well, those are two things I actually decided to do myself because I knew that in doing them, I would gain the confidence I needed to do a lot of other things. I had a little bit of a chip on my shoulder about having worked in print magazines and not so much in digital.

Lauren S. B.:
Now I feel I've built a website, I've built an online community, I have built a social network. I feel very digitally savvy, and I've grown that all myself, and that started with actually spending three days struggling through Squarespace, trying to figure out how to size pictures, and how to line things up, and how to communicate to an audience, really more than anything. So that was really valuable to me.

Lauren S. B.:
On the other hand, what I did spend my money on was trademarking my company name, The Fifth Trimester, which ended up, has been ... I am so grateful there have been probably a dozen moments over the last dozen months when I have been so glad that I own that trademark. It is now something I can license. It is actually worth something to me.

Lauren S. B.:
I actually expanded the trademark to several other categories a few months ago, so that if I want to claim it in many other ways, I can. And that is definitely something I couldn't have done myself. I actually initially signed on for one of those online legal websites, and I realized I didn't know what I was doing, and I ended up hiring a real lawyer to really do it for me.

Bobbi Rebell:
Yes, I actually did the same thing with Financial Grownup, and it gives me a lot of security because I knew when I went to do the podcast, I had the audio rights to it, and I wouldn't have a problem. I think that legal money when you're not a lawyer, is definitely money well spent. You want to be protected because you're building this business, so for entrepreneurs, spend money on the right things. So speaking of The Fifth Trimester, so as I mentioned at the beginning, it's paperback week. Congratulations.

Lauren S. B.:
Yeah, thank you. Thanks.

Bobbi Rebell:
This has been quite a journey. First of all, it's been a bestseller. I love seeing it on the shelf in Barnes & Noble in my neighborhood, which is really nice. It's usually in a beautiful display because people love this book.

Lauren S. B.:
Oh, thank you.

Bobbi Rebell:
It's really resonated with so many people. I wish it was there when I had my son, 10 years ago, because I would have felt so much better having a guide going back to work.

Lauren S. B.:
It is the book I needed. It's the resource I needed. When I was pregnant, during my first three trimesters, of course, I had Baby Center to tell me when my fetus was the size of a kumquat, and when he was the size of a cucumber, and then he was ready to be born. Then I learned about something called The Fourth Trimester, which was the newborn phase because the idea is that human babies are actually born a whole trimester too early. So to soothe a newborn, you recreate the feeling of the womb-

Bobbi Rebell:
Right, we swaddle.

Lauren S. B.:
Yeah, so we swaddle. Exactly. Swaddle, we shush, we swing, all of those S verbs. It's the Harvey Karp idea. Then when I got back to work, all that support sort of fell off. I have to tell you, I was working in a fairly supportive industry, surrounded by women who were very comfortable talking about things like breastfeeding. I had a supportive spouse. We had enough money in the bank that I could take a few weeks of my leave unpaid. I did have to back after 12 weeks, which to me, was not quite enough. But it's what I needed to maintain my job.

Lauren S. B.:
And yet still, I just felt like there was nothing out there to support me. I ended up, years later, I had the idea that this was transition, that I had gotten through essentially another trimester. This one was for the Working Mom, and I had colleagues who said to me, younger colleagues who weren't in this phase of life yet who said, "Thank you for being so honest and transparent about what's hard here, because ..." And I thought, "Oh, gosh. Have I been unprofessional?" And they were like, they went on to say, "Because you've shown me I can do it one day, too. You've shown me that it's hard, and that I will still get through it, and it will be okay."

Lauren S. B.:
That was really a eureka moment for me, when I realized that my next goal in the next phase of my career was going to be support new parents in this transition back to work.

Bobbi Rebell:
And it's more than a book now.

Lauren S. B.:
It is, yes. It's a movement. For the book, I interviewed hundreds and hundreds of new working moms to figure out what worked for them, and they've become this sort of working, collective working mom mentor for anybody going through it. But what I found is that in speaking, I go into companies and I help them make, not just better policies, but actually better culture so that even if they have good policies, a lot of these, especially the big tech companies, the big law firms.

Lauren S. B.:
People feel like they can't use what's available to them. This actually lets them change the culture, lets them use what's theirs, sort of equalizes things between moms and dads, and people who don't have children, and may never have children. To make things fair for really anyone with a personal life in the workplace.

Lauren S. B.:
So I've been in, I'm going into Google next week. I'm going to AmEx. I've been to Facebook. I've done a ton of big law firms. It has been so fulfilling and the room is full of not just new moms, or expectant moms, but also the managers who really want to support them. And that is, we are in a groundswell movement for women's rights in the workplace and it has been a good moment to be here.

Bobbi Rebell:
Well, we are lucky to have you leading the charge there. Tell us where people can find you.

Lauren S. B.:
Oh, absolutely. So I'm all over Instagram. Too much, it's-

Bobbi Rebell:
I love your Instagram.

Lauren S. B.:
Oh, thank you. I'm having so much fun with stories in the new font. And again, like that's because I made my own website, that I feel confident that. And then on Facebook, it is The Fifth Trimester. On Twitter, I'm @LaurenSBrody. Lauren Smith Brody. Lauren S. Brody.

Bobbi Rebell:
Here's my take on what Lauren had to say. First of all, Financial Grownup tip number one. Are you a business or an expensive hobby? You cannot be afraid to say no to something if it does not benefit your business if you are running a business. In some cases, you may say, "You know what? I do want that logo on my website. I don't like the deal, but the logo on my website does present enough value to me that this time, I am going to say yes." That's okay, but realize you have set a low and, frankly, unsustainable price point.

Bobbi Rebell:
You will never make a profit if you don't get paid. There will come a time when you have to say no to free. Or, like I said, "You just have an expensive hobby." If a for-profit company is running a marketing event to bring in clients to benefit their business, and they don't have a budget for speakers, it is because they made a choice when they created that budget. It's just not something that they value. So think, "Are these people that you want to be in business with? And, will you feel good about being there?"

Bobbi Rebell:
Financial Grownup tip number two. Lauren also talked about trademarking. If you are investing your time in a new venture, make sure you protect it. And frankly, make sure you're not violating some else's trademark. This is serious stuff. If you are not a lawyer, and I should say a lawyer that specializes in this, get a pro. Get the right lawyer for this. Don't mess around. The last thing you want is to devote your limited time and resources to something, only to have someone swoop in, and benefit from the brand value that you have created.

Bobbi Rebell:
All right. Thank you all for all of your support and feedback. I truly appreciate everyone who has subscribed, rated, and reviewed the podcast. If you're listening and you haven't subscribed yet, it's free. Hit that subscribe button. Of course, please follow me on social media @BobbiRebell on Twitter, and at BobbiRebell1 on Instagram, and go to my website. Sign up for my newsletter so I can keep you posted on everything going on with the show and other projects.

Bobbi Rebell:
I hope you enjoyed Lauren's 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.