Time management expert Laura Vanderkam on how she and her husband decided to pay it forward to free up time to create available time for career and business growth.  Plus behind the scenes info on how she wrote her latest bestseller “Off The Clock” and a sneak peak at her next project. 

In Laura’s money story you will learn:

-Why it has taken Laura so long to figure out the right childcare setup

-How she balances being a frugal person with the reality of her childcare needs

-The problems that emerged as her speaking and writing career began to gain more traction

-How working from home made her childcare issues more complicated

-The specific things she changed when she hired a new nanny

-Why she chose a certain schedule and the specific benefits that provided

-Specific examples of work situations where her new childcare set up allowed her to earn more money

 

In Laura’s money lesson you will learn:

-The reason Laura considers childcare an investment in your earning potential, even if you pay for it when you aren’t technically working

-The importance of going to what she called the “extra stuff’ like networking events and conferences

-Why you should sometimes pay for an extra half an hour of childcare, and what to do with that time

-The relevance of Serena Williams to the conversation and what we can learn from her recent experience missing a major milestone in her child’s life. 

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

-Why handwritten notes are important in business

-How Laura has used them to increase her connection with friends and business associates

-How Laura uses that habit to connect on a personal level with her readers and fans. 

 

In My Take you will learn:

-How to use money to solve productivity challenges

-A specific way Harry Potter author JK Rowling used this strategy

-Apps and other options that can help you execute the same strategy as JK Rowling

-Why some people are late all the time

-How to not be late

We also talk about:

Laura’s new book “Off The Clock” and how she conducted the exclusive research

The importance of time perception

Laura’s Ted Talk and how we can integrate those lessons into time choices

Laura’s podcast with Sarah Hart  Unger “Best of Both Worlds” 

Her next project Juliet’s school of possibility which is a fable about Time Management

Episode Links

Learn more about Laura at her website LauraVanderkam.com

Check out her podcast “Best of Both Worlds” 

Get Laura’s book “Off The Clock!”

 

Follow Laura!

Twitter @lvanderkam

Facebook LauraVanderkamAuthor

Instagram lvanderkam

LinkedIn Laura Vanderkam

 

 

Apps for last minute discount hotels

hoteltonight.com

OneNight.com

Hotelquickly.com

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

Laura Vanderkam:
We had a lot of snow. We could see that this huge snow system was coming into Pennsylvania. My client out in Michigan who they have this big event booked around me said, "Well, could you come out early?" The idea of being a working mom of four kids who could like suddenly go 24 hours earlier to an event overnight even though my husband was also out of town, I could do it. I could just say yes.

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. So that was time management expert and prolific writer, Laura Vanderkam. Her latest book is Off The Clock, which we're going to talk about. A special welcome to our new listeners and, of course, returning ones. As you guys know, we keep it short because I'm a big believer in delivering value for your time. You can always earn more money but time is priceless and we appreciate the time that you spend with us. So we aim for about 15 minutes but you can stack a few episodes together. We do three a week. So make it work for your life. Hit subscribe, put your settings to automatically download, so you're going to have each episode without having to do any work. Go for the easy.

Bobbi Rebell:
Let's talk about time management. So interesting behind the scenes fact ... financial grownup fact here. I came very prepared for this interview with Laura Vanderkam. I was ready to be super efficient and respectful of her time but, in the true spirit of her latest book, Off The Clock, she was not in a hurry at all and, in fact, she said she had all the time in the world. How does she do that? Listen to the interview and then make the time to read her book. The time spent will literally pay for itself. Here is Off The Clock author, Laura Vanderkam.

Bobbi Rebell:
Laura Vanderkam, you're a financial grownup. Welcome to the podcast.

Laura Vanderkam:
Thank you for having me.

Bobbi Rebell:
Congratulations on your latest book. It's called, Off The Clock, Feel Less Busy While Getting More Done. I can't wait to see what your next book's going to be. Maybe I'll get a teaser out of you. What are you working on?

Laura Vanderkam:
Actually, my next book will be out in March 2019, and it's a time management staple, it's called, Juliet's School of Possibility. So, yeah, there you go.

Bobbi Rebell:
I love that.

Laura Vanderkam:
The commercial for the next one.

Bobbi Rebell:
Yes, absolutely. But, in the meantime, once we finish all of your books, we also can listen to your podcast, Best of Both Worlds, which is with Sarah Hart Unger, and that's also one of my new obsessions.

Laura Vanderkam:
Yeah, we really do believe that work and family can work together, that people can succeed at both and love both. And so, that's what the podcast covers.

Bobbi Rebell:
And one thing that you guys discuss a lot beyond just time management, but time management as it pertains to kids and getting work done, and that brings us to your money story.

Laura Vanderkam:
Like many parents, it has taken me a long time to sort of figure out what the right childcare setup truly is. And, being a kind of frugal person, I didn't want to spend all that much. So it was always trying to get by on less than I probably needed for me and my husband, and you know, he travels and works long hours, and I was certainly starting to as my speaking career was starting to grow. And so, you know, it was figuring out, well, what kind of childcare do I need? And I'd always spend, you know, normal work hours, maybe eight to five. I mean, I worked from home, certainly I should be able to do that. But the problem is, we need like overnight coverage and we wouldn't have it because people would have other plans cause, hey, we're leaving at five. They'd have other things they were doing in the evening. You know, it was just difficult to make it work.

Laura Vanderkam:
So, when we were hiring a new nanny about two years ago, we decided that, well, we truly do need more hours. Let's go ahead and make the investment in doing it. And so, we hired somebody who's initial schedule was to work eight to eight, Monday through Thursday. And the upside of doing eight to eight, it's only 48 hours, right? So it's not excessive.

Bobbi Rebell:
So were you cutting out Fridays?

Laura Vanderkam:
Well, we had ... at the time there was another person working on Fridays for part-time. You know, that was the idea. It was like, you're going to have 60 hours of care, split it among two people because you don't burn one person out.

Bobbi Rebell:
Well, then, you also have a backup, right?

Laura Vanderkam:
We do have a backup. Right. Yeah. So you have one full-time, one part-time. So the upside of having the evenings, I could go to networking events, like even if my husband was working late. Or, if I needed to be somewhere, I wasn't racing back and apologizing for being late. We had the evening covered. We had an extra driver for school stuff, for activities.

Bobbi Rebell:
Cause you have four kids by the way.

Laura Vanderkam:
Cause I have four small children. But the real upside has turned out to be that, when you hire someone to work eight to eight, they tend not to book stuff in the evening. So then, arranging for them to stay overnight, and we also hired somebody who was willing to do that. It was basically, pay me overtime I'll do it. Meant that there wasn't always this scrambling thing because it was relatively easy to just get that extra hours in there. And so, yes, it's expensive to have a lot of childcare and to have the availability of overnight coverage, you know, paying overtime for that. But, you know, I really see moments where it paid off.

Laura Vanderkam:
This spring, for instance, I was traveling a lot. I mean, I was giving one or two speeches a week that required travel, we had a lot of snow. One day in early March we could see that this huge snow system was coming into Pennsylvania. My client out in Michigan, who, you know, they have this big event booked around me, said, "Well, could you come out early?" You know, the idea of being a working mom of four kids who could like suddenly go 24 hours earlier to an event overnight even though my husband was also out of town, I could do it. Like I could just say yes. And that's what it has been enabling me to get like bigger ticket speaking jobs, ones that are paying more than I certainly would've imagined I could've gotten five, six years ago. And I think it's because I feel like I know I can say yes.

Laura Vanderkam:
But, you know, it's really an investment in your earning potential. And, if you're always trying to get by on less childcare than you need, then you won't say yes to the extra stuff. You won't go to that networking opportunity. You won't go to that conference. You won't maybe stay late that one night when you know your boss is going to see it and really remember it because you're trying to race out. And, over the longterm, those things really do add up. So I really like to think of childcare more as an investment than an expense. And, if you can get your head around that idea, I think you'll really start feeling like a financial grownup.

Bobbi Rebell:
So what is the lesson for our listeners? How can they apply it to their lives?

Laura Vanderkam:
Well, I think, take an honest assessment of what amount of childcare you have and, if possibly increasing that by a little bit would make your life a lot easier, less stressful, or enable you to pursue professional opportunities that you haven't so far. So it could be maybe an investment in life satisfaction. Maybe pay the person for an extra half hour after you get home, so you don't immediately have to race into serving everyone, making dinner, while you also have kids jumping on you cause they haven't seen you all day. Maybe that person could start dinner while you deal with the kids, right, and have some time with them.

Laura Vanderkam:
Or maybe it's just that, you know, occasionally you'd like to get stuff done a little bit later instead of racing out to make a 5 p.m. daycare pickup. Maybe you can arrange for an evening sitter just like one day a week, right? And that person covers maybe five to eight, and you can get stuff done when the office is quiet, or people see you be there late, or you go to networking events. And, you know, then you've made this investment and it will probably pay off over time.

Bobbi Rebell:
And I love that you point out those intangible things, like going to a networking event because sometimes people view that as social, but it's social, but it's really also an investment in your career to be out there with your peers. I know Serena Williams recently missed a big milestone because she was training and it can happen to any mom, no matter what. So, you can't let those hold you back from doing things that might benefit your career.

Laura Vanderkam:
SO I think this idea like rearranging your whole life to not miss anything, it's never going to happen. And, if you have more than one kid, you'll miss some stuff cause you're at the other kids stuff. And, you know, people adjust, they grow up, they learn the universe does not revolve them. It's all good.

Bobbi Rebell:
Exactly.

Laura Vanderkam:
Yeah, you know. So, it's worth doing a little bit extra sometimes.

Bobbi Rebell:
Yes. And there are other ways to bond with people outside of your family, bond with people regarding work in your professional endeavors, and that brings us to your everyday money tip, which is just genius, and I got to experience myself.

Laura Vanderkam:
Yeah. Well, this doesn't seem like a money tip but it's in line with the idea of networking and building your network, and getting to know people, and establishing these relationships, which is, send handwritten notes. This doesn't seem like a money tip but I can tell you that people are far more inclined to like you when it seems that you have bothered to establish, like put a little effort into establishing a connection with them. It's also memorable because most people don't do it.

Laura Vanderkam:
So, when I sent you my book, I included a handwritten note thanking you for your interest in it, and for being willing to take your valuable time to read it. I had a thing going on my website that I was asking people to pre-order Off The Clock, and what people did, they gave me their mailing address so I could send them a signed bookplate that they could stick in the cover when it showed up from whatever online retailer that they pre-ordered it through. You know, I'm mailing them anyway, why not send them a handwritten note? So I sent a handwritten thank you note to everybody who pre-ordered and gave me their address. And this is, you know, a lot.

Bobbi Rebell:
But you made the time because it was important to you.

Laura Vanderkam:
Because it was important. So I kept reminding myself, as I was doing it ... my hand was cramping up. I'm like, you should be so grateful that these people are willing to spend money on a product of yours sight unseen. Those are your big fans you want to connect with them, and I do want to connect with them.

Bobbi Rebell:
I just want to take another minute to talk a little bit about Off The Clock. As we mentioned, I did read it on vacation. It was great. You talk about people expand time. That was one of my favorite themes in the book. Tell us more about that theory and how people can apply it to their lives, cause that to me was the most important takeaway from this book.

Laura Vanderkam:
So, for Off The Clock, I had 900 people with full-time jobs and families track their time for a day, and then I asked them questions about how they felt about their time. So I could give people scores based on their time perception. Like did they have high time perception scores? They felt time was abundant. Or low time perception scores. They felt time was scarce, stressful, all that stuff. Compare the schedules with people who felt like they had a lot of time, people who felt they had no time.

Laura Vanderkam:
People who felt like they had the most time also spent the most time actively engaged with family and friends. So they spent the leisure time that they did have nurturing their relationships, whereas people who had the lowest time perceptions scores tended to spend their time watching TV or on social media. You know, it's not that one group had more leisure time than the other. Everyone was busy. Everyone had full-time jobs, families, but people choose to spend the time that they do have discretionary choices over in different ways. And, apparently, spending time with family and friends makes us feel very off the clock.

Bobbi Rebell:
Well said. And that's, by the way, we didn't mention your Ted Talk, which is amazing. One of the things that you point out in your Ted Talk is that, instead of just fast forwarding through commercials to save time when watching TV, you could just watch less TV. So it's pretty straight forward.

Laura Vanderkam:
The problem with writing that time management, I've seen all these articles over the years of like how to find an extra hour in the day by shaving bits of time off every day activities, and stuff like Taebo, or forward through the commercials. Save eight minutes every half hour over two hours of watching TV, you find 32 minutes to exercise. Like, come on. You're watching TV for two hours, you already had 32 minutes to exercise. Let's not fool ourselves.

Bobbi Rebell:
All right. You called us all out. Tell us where people can find out more about you and all of your different ventures, podcasts, Ted Talk, books, newsletter, all of it.

Laura Vanderkam:
Yeah, come visit my website, lauravanderekam.com. That's just my name. You can learn more about my books including Off The Clock and the podcast, Best of Both Worlds. We'd love to have some of your listeners take some of the extra commutes that they're not listening to your wonderful podcast on, and come give it a listen.

Bobbi Rebell:
Love it. Thank you so much Laura.

Laura Vanderkam:
Thank you for having me.

Bobbi Rebell:
Hey friends. There were so many great takeaways from that and from the book, Off The Clock. I'm going to give you a couple more here and, of course, you can check out the book and get even more.

Bobbi Rebell:
Financial Grownup Tip number one. Money can solve productivity problems. One of my favorite examples in the book is when Laura talks about Harry Potter author, J.K. Rowling. She was writing her seventh book, [inaudible 00:12:41]. So, by this point she had financial resources to say the least. But she couldn't get any work done in her house because the window cleaner was there, and the kids were home, and the dogs were barking. And then J.K. Rowling says in this story, a light bulb went on. I can throw money at this problem. And you know what? She decamped to a hotel to finish the draft and it worked cause she was able to focus. Money solved the problem.

Bobbi Rebell:
Now, not all of us think that we have the budget to do that. I've never done that and to me it does seem extreme on the surface. However, because of the new resources that we have and we're going to give you some ideas and apps that we have access to now, there are very reasonable hotel rooms available at the last minute in our own cities, and that is something we could potentially look into when we just need to get to a place where we can focus on getting our work done, especially when we're coming up against a big deadline. So some app examples are: Hotel Tonight, One Night, and Hotel Quickly. And you can find very cheap deals in your city very often using apps like these. I'll put the links in the show notes.

Bobbi Rebell:
If you don't have a budget, maybe you have a friend with a spare bedroom. Tell them what you're up to so they don't expect you to be social, but maybe you can use that. And, if it's just a few hours that you need, of course, you can go to a coffee shop. That's always available as a resource for many people. But another option, sometimes, is to just go to your local library and just hunker down in a quiet area there and get some work done.

Bobbi Rebell:
Financial Grownup Tip number two. Be a pessimist when deciding when to leave for important meetings or trips. Vanderkam discovered that people who are late, even though I think it's often inconsiderate or poor planning, really what it is, is they're optimists. They always remember the best scenario of getting to a place. So, if they're planning a trip that involves going to the airport, they might remember that it only took 15 minutes to get to the airport but, of course, what they don't remember is that was at, you know, 5 a.m. on a Sunday when no one else was going. Maybe this time they're going at 9 a.m. on a Monday morning and they don't factor in that it's going to take a lot longer. So, because they're not planning according to the worse case scenario, things go awry. So plan according to the worst case scenario and, you know what, maybe you'll get there early and you'll have extra time, and you can do something fun with that time.

Bobbi Rebell:
Big thanks to you for gifting this time to yourself to hopefully improve your life just a little thanks to the wonderful advice and wisdom from Laura Vanderkam. Please be in touch. Follow me on Twitter@bobbirebell, on Instagram@bobbirebell1, and on Facebook@bobbirebell, and DM me with your thoughts on the podcast. Laura Vanderkam is living a very financially grownup life. I got so much value from taking the time to read, Off The Clock, and I know you will too. So thank you Laura 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.

Wealth coach Adeola Omole got a do-over she didn’t want when she got laid off a second time- but by being financially prepared she was able to land on her feet. The author of “7 Steps to get out of Debt and Build Wealth” shares her story of how she came out stronger the second time around. 

In Adeola's money story you will learn:

• How she prepared herself for a second lay-off

• What the Super-Charged Financial Strategy is and how it helped her to pay off $70,000 in consumer debt in less than 3 years

• Why you should negotiate interest rate reductions

In Adeola’s money lesson you will learn:

• What she did to layoff proof her life

• Why debt is the only thing that holds you back from living the life you want

In Adeola's everyday money tip you will learn:

• What it means to triple-check your way to wealth and why it's important

In My Take you will learn:

• Why no ask is too great when negotiating interest rate reductions

• Why it's so important to pay attention to what's going on in your industry on an economic level

Adeola has generously sent, from Canada no less, two signed copies of her book 7 Steps To Get Out of Debt and Build Wealth to give away- all you have to do it DM me your takeaway from this episode- bobbirebell1 on instagram bobbirebell on twitter or email us at hello@financialgrownup.com

Episode Links:

Check out Adeola's website - https://www.adeolaomole.com/

Adeola's book 7 Steps to Get Out of Debt and Build Wealth

Follow Adeola!

• Instagram

• Twitter

• Facebook

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

Adeola Amole:
Because of my first layoff experience I actually created my entire career to layoff-proof my life. In essence, I built up my asset base so I have these rental properties that are cashflow positive, I have money coming in from my investments from the stock market. I really had already set myself up to take care of that subconsciously.

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. It's okay. We're going to get there together. I'm going to bring you one money story from a financial grownup, one lesson, and then my take on how you can make it your own. We've got this.

Bobbi Rebell:
Hey, financial grownups. No matter how much we talk about being ready for something like a layoff who really is? Right? For today's guest, wealth coach, author, social worker and lawyer, Adeola Amole, getting laid off for the second time still caught her off-guard even though the signs were all there.

Bobbi Rebell:
This time she was a lot better prepared and I think you are going to be very interested in what she did to layoff-proof her life. It was not just having an emergency fund, although that also matters a lot.

Bobbi Rebell:
Happy holidays to everyone and special welcome to our newest listeners. So glad you found us. We keep the episodes on the short side, about 15 minutes, with the idea that you can stack a few together to fill the time that you have to listen. Feel free to listen to a few episodes at a time if that's what works for you.

Bobbi Rebell:
All right. Let's get back to Adeola. She is also the author of a really readable book and I don't take that lightly because it is true to the title 7 Steps To Get Out of Debt and Build Wealth in that she really walks us through exactly what to do. Action steps, not just theories. She comes from experience as you will hear in our interview. Here is Adeola Amole.

Bobbi Rebell:
Hey, Adeola Amole. You are a financial grownup. Welcome to the podcast.

Adeola Amole:
Thank you for having me, Bobbi.

Bobbi Rebell:
We practiced saying your name because I am terrible at pronunciation. I just want to say for people curious about the name Adeola Amole it is of Nigerian origin. I just learned this. It means crown of wealth, which we love, so welcome.

Adeola Amole:
Well, thank you. Yeah. No. I love it.

Bobbi Rebell:
You are the author of 7 Steps To Get Out of Debt and Build Wealth. You are a money coach but by trade your background is as a lawyer and you have a graduate degree in social work. You know a lot about a lot of things.

Adeola Amole:
Well, thank you for that. I like to think that I'm a person who just wants to learn and I love learning about so many different things as my background shows. Now I'm living my passion. This wealth coaching thing is right up my alley. I also am able to still use the legal background as well as the social work background. It marries brilliantly.

Bobbi Rebell:
Let's get to your money story. It has to do with the art of the do-over. Let's call it that. Go for it.

Adeola Amole:
I got laid off and I literally had no backup plan, no clue how to do it. Long story short, I figured out a strategy. I call it the Super-Charged Financial Strategy. I figured out how to pay it all off and luckily for me [crosstalk 00:03:30]

Bobbi Rebell:
We should say you had quite a bit ... You had $70,000 in consumer debt when you suddenly had no income of your own and your husband had a smaller income. You had the larger income.

Adeola Amole:
Exactly. You are absolutely correct. $70,000 was paid off in the first three years of the plan. Just shy of three years.

Bobbi Rebell:
What is the plan? When you say the plan what is the plan?

Adeola Amole:
The Super-Charged Financial Strategy is a two-part plan. The first part of the strategy I call it the Super-Charged Debt Repayment Plan and that literally is the snowball method on super-charged. Hence, the fact that I call it the Super-Charged Plan.

Bobbi Rebell:
Because you would pay but you would also negotiate a lot with the credit card companies.

Adeola Amole:
Exactly. I would negotiate like crazy. This is where the legal background truly did pay off because I literally knew ... I setup the system for myself and I knew exactly what processes I would have to use. If I didn't get what I wanted from the rep I would just ask to speak with a manager and usually got what I wanted. I knew how to negotiate myself to as low a rate as possible.

Bobbi Rebell:
What I love about this is you at times went for the 8% or 9% but you even went for 0% sometimes. You can ask for that. It's a little bit bold, you won't always succeed, but you can ask for 0%.

Adeola Amole:
Exactly. It works. It helps you crush that debt faster.

Bobbi Rebell:
All right. You had the first layoff. You learned from the idea of not being prepared. Then life goes on, you get a new job, the recession, we move past the recession, past that 18 months of being unemployed, things are good, you now have a child, your husband is home now taking care of the child. What happens next?

Adeola Amole:
Yeah. To add onto that story we have a child but now we have two rental properties. We have money in the markets. We built up assets after having paid off the $70,000 consumer debt. Now things are looking fabulous, my husband is a stay-at-home dad. He's been with our son for four years.

Adeola Amole:
Then we get pregnant with a second child but I didn't tell my employer this because most women know this, first trimester you just stay hush hush until you go into the second trimester. Long story short, I get laid off again.

Bobbi Rebell:
Had you had any idea this was coming?

Adeola Amole:
No. Well, I shouldn't say no. What happened is I worked in an industry where it was really contingent on oil prices. Oil prices had just crashed. This was I believe last quarter of 2014. I was in a position where we got rumors as to, "Things aren't looking so good. Oil is going down." People talked about it but no one knew that it was going to happen. We had suspicions but obviously I didn't think I was going to be one of them.

Bobbi Rebell:
Do you feel looking back you had a sense of denial maybe about it?

Adeola Amole:
Absolutely. Absolutely. However, I have to tell you because of my first layoff experience I actually created my entire career to layoff-proof my life. In essence, I built up my asset base so I had these rental properties that were cashflow positive. I had money coming in from my investments from the stock market. I really had already set myself up to take care of that subconsciously.

Bobbi Rebell:
Excellent. What happens?

Adeola Amole:
Yeah. I'm laid off. My employer at the time doesn't know that I'm three months pregnant. I should have been absolutely terrified but I wasn't because, as I said, we set ourselves up. We had cashflow in properties. We had investment properties.

Adeola Amole:
My husband and I were figuring out what to do next and we had five months to think about it. Guess what? There was money to take care of everything. We had a 12 month emergency plan. It was really my financial do-over.

Bobbi Rebell:
Love that. What is your advice for our listeners? What's the takeaway here?

Adeola Amole:
The biggest takeaway is, guys, plan for these what ifs. These what ifs it's not if they're going to happen. It's when they're going to happen. It's best to just put a plan of action in place. Crush that debt. Like get it off your plate, get it off your balance sheet.

Adeola Amole:
At the end of the day, that's what's holding you back from really creating the life that you want to live. If you get that out of the way you can truly start planning where you want to go.

Bobbi Rebell:
All right. You brought with you a great everyday money tip that's something we kind of all should know but we just ... I don't do it. I totally take the short way and I'm sure I've made so many bad decisions, I know I have, because of it. Teach us.

Adeola Amole:
You're awesome. The tip that I have is triple-check your way to wealth. It's a really simple tip and it's something that you can totally use today and it means that when you're looking for any item, like any big ticket item, even a little ticket item, always at least refer to three merchants or three service providers for pricing and also for service. This is boiling down to people as well as prices. I think it matters to work with good people. I always want to work with good people. I always want to get the best prices.

Adeola Amole:
I recently had some auto body work that I had to do. I was referred to one company and when I called them ... They're a reputable company and I've heard about them so I knew that they were good ... I called the service provider and they set a price that sounded wonky to me. It was like $3800 to get this done. I literally almost lost my mind.

Adeola Amole:
I thought, "Okay, let's just call around" so I called a few other folks, got some references. Long story short, after doing the check I found an incredible company, extremely reputable, used by the best dealerships where I live, and they came up with a price that was just $1000 shy of the price so it was $2800. The people were incredible, they were extremely friendly, and because I'm a lawyer I decided I'm going to negotiate an even better rate.

Adeola Amole:
I spoke with the guy and told him, "Okay, what can we do here? I really want to go with you, I really like you guys. What more can you do for me?" Sure enough he gave me $200 less than it was originally quoted. $2600 and change. Long story short, guys, triple-check your way to wealth. That extra money now can go into my investment portfolio.

Bobbi Rebell:
What is your favorite go-to source for even finding vendors or people that you can work with? Sometimes it's really hard just to get referrals.

Adeola Amole:
It's the truth. It depends on what it is. In this instance, because it was auto body I've worked with a few companies in the past so I went to the companies I trusted. My husband and I drive Acuras and Hondas. I went to the dealerships, the Acura dealerships that I like and that we've dealt with in the past and I spoke with the guys and said, "Who would you refer?"

Adeola Amole:
They gave me some auto body shops. Then I went to the Honda dealerships, "Who would you refer?" I had a list of a bunch of them. Go to the source. If you're looking for even if it's just furniture and stuff go to the sources. Go to the people you know who have fabulous furniture or go to the companies themselves and just start talking to the people who are working there. Sometimes they'll tell you, "Don't buy it here. Go here."

Bobbi Rebell:
Is there an advantage to talking to them in real life versus just calling around or looking at an app?

Adeola Amole:
You know, I think there is. Always that human connection will get you the better referrals and then you can connect with them, right? So they're willing to give you that information. Absolutely.

Bobbi Rebell:
I think being in person makes a huge difference. Tell us more about where we can find out more about you and your book.

Adeola Amole:
Oh, absolutely. My book 7 Steps To Get Out of Debt and Build Wealth, guys, it's available everywhere. Go to my website www dot Adeola Amole dot com and there you can choose your retailer of choice because I'm on Amazon, Barnes and Noble, Books A Million, Indigo, pretty much anywhere you can buy books it's available.

Bobbi Rebell:
Love it. Thank you so much. Social media, where can we follow you?

Adeola Amole:
Instagram is my stomping ground. I'm everywhere but Instagram is my stomping ground. I'm at Adeola Amole B.

Bobbi Rebell:
Thank you so much. This was great.

Adeola Amole:
Aww. Thanks for having me, Bobbi. I appreciate it.

Bobbi Rebell:
Hey, friends. Let's get right to it. Financial grownup tip number one, when it comes to things like cutting your debt no ask is too aggressive when you negotiate for interest rate reductions like Adeola. She went for the 0% interest rate. Kind of surprised me but I'm impressed. While she didn't always get there she sometimes did so why not ask?

Bobbi Rebell:
Financial grownup tip number two, listen to the whispers at work. Pay attention to the larger macro economic climate and what's going on in your industry. Adeola in her gut knew that there was a good chance she was going to get laid off but she was still surprised. Financially, though, with her multiple and largely passive income streams she was ready.

Bobbi Rebell:
All right, everyone. Adeola has generously sent, from Canada no less, two signed copies of her book 7 Steps To Get Out of Debt and Build Wealth to give away. All you have to do is DM me your takeaway from this episode on any of the social channels. On Instagram at Bobbi Rebell 1, on Twitter at Bobbi Rebell, or if you prefer email you can email me at Hello at Financial Grownup dot com. Big thanks to Adeola Amole 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.

Soon after Christine Armstrong’s husband took a company buyout and launched a family vacation business, the executive and new mother found herself in an intolerable job situation and quit to start her own business- resulting in a double dose the challenges of startup life. 

In Christine's money story you will learn:

• Being miserable in your job isn't worth the money

• Why Christine and her husband went from having two good paying jobs to not having any set income to rely on and how they made it work

• By being curious how other parents were balancing work life and home life, she started interviewing them, which led to the inspiration of her book - The Mother Of All Jobs

In Christine’s money lesson you will learn:

• How little you can spend when you really put your mind to it

• Be conscious of how much you are spending on childcare and figure out a way to best balance that expense with your work life

In Christine's everyday money tip you will learn:

• How to be more eco-friendly with your gifting over the holidays, and save money

• How to teach your children the benefits of gifting second hand goods and why they should be proud of it and not hide it

• Where to find the best high quality second hand goods for yourself, and for gifting

In My Take you will learn:

• Don’t spend the time stressing about the money. It is gone. Move on psychologically and just do better next time

• Keep your fixed costs low

Episode Links

Check out Christine's website - www.christinearmstrong.com
Link to buy Christine's book on Amazon - Mother Of All Jobs
Link to Ebay.com

Follow Christine!

• Linked In

• Twitter

• YouTube

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

Christine:
What we were astonished by, having gone in a really short space of time from two corporate incomes to nothing, was how much spending you could just strip out overnight. We just cleared everything. We cut television packages, gym memberships, old insurance policies. We just scaled everything right back.

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 gonna get there together. I'm gonna bring you one money story from a financial grownup, one lesson and then my take on how you can make it your own. We got this.

Bobbi Rebell:
Hey friends, have you ever heard the acronym DINKS? D-I-N-K-S. Double income, no kids, usually used in the context of couples that have a capital F for fabulous lifestyle. How about if that was now double startup, two kids. That is where Christine Armstrong, author of The Mother of All Jobs, and her husband found themselves, and let me tell you, there was drama with a capital D. Spoiler alert though, they survived, but they lived to tell the tale and we get to benefit.

Bobbi Rebell:
Welcome everyone, if you are new, so glad you found us. If you have a sec, do a screenshot and post it on social media, make sure you tag me so I can welcome you personally to our Financial Grownup community. The show stays around fifteen minutes because you're busy, but feel free to binge listen to a few if you have a little more time. We now have a library of more than 100 amazing high achievers sharing their stories and lessons.

Bobbi Rebell:
Alright, let's get right to it. Here is Christine Armstrong. Hey Christine Armstrong, you're a financial grownup, welcome to the podcast.

Christine:
Thanks so much.

Bobbi Rebell:
And congratulations on you're new in the US book. It's already been a huge hit in the UK where you are called, The Mother of All Jobs. How to have children and a career and stay sane-ish. Emphases on the ish, right?

Christine:
Yeah, totally.

Bobbi Rebell:
You have managed to stay sane in an extraordinary circumstance where both you and your husband found yourself in startup mode. Tell us your money story.

Christine:
So I had a lovely job at an advertising agency and I traveled all over the world and presented work. When I had a baby, I came back to the ad agency, but the boss had changed and they were offering me different terms and I kind of panicked and I took another job, which wasn't a great fit for me. It was a really heavy [inaudible 00:02:56] culture and I was really kinda stressed. It wasn't a great place for me anyway, but it particularly wasn't a great place with a small baby.

Christine:
But I felt I couldn't leave because while I had been on maternity leave, my husband, who'd been eighteen years at his company, was offered a big package to leave and he was like "Look, I really wanna take it, I wanna startup this business." I was like "Okay, yeah. That'll be fine, great idea."

Bobbi Rebell:
Because you would have the steady income.

Christine:
Right, 'cause I was just gonna go back to my job. It never occurred to me that I would want to stop or do less work. That kind of career was what I did. My job at the ad agency, they were really senior women who had families, and that seemed to be what they had done and it was fine.

Christine:
So we found ourselves in a situation where I was really unhappy at work and he was with the startup, which is a travel company called [inaudible 00:03:40] as you know with a startup, you don't make money immediately, so he wasn't making money, but we still needed quite a lot of childcare, because also, he wasn't home being just a parent and I was working really hard, but quite frustrated. So, I kind of was looking for answers in what I thought I could do to kinda make things better. I decided that I would have another baby.

Bobbi Rebell:
Of course.

Christine:
Of course.

Bobbi Rebell:
Because that will solve everything.

Christine:
In my mind ... you know, they say when you are really stressed, you start making really bad decisions and you can only see things in black and white. I was just like, I got to get out of here and I've got to take time to think, so I had another baby, which was great, but it obviously didn't solve my problems at work. Then I went back to work and it was still really, really difficult. So I decided to go and interview women about how they made it work, and some men as well. That was really where the book came about.

Christine:
During this process of interviewing these amazing people and understanding what I needed to do, I had lunch with a really old friend who's a therapist. We were in this café and I just talked at her for 45 minutes. She looked at me and she said "Look darling, just go. Go back to the office, get your coat and go home." I said "You're insane. I've got a mortgage, I've got childcare, [inaudible 00:04:58] is making no money." She's like "Yeah, but it'll be fine, just give it to the universe." I'm laughing at the word-

Bobbi Rebell:
The universe does not pay your bills.

Christine:
No, no. So, I didn't take her advice. I didn't literally go back to the office and resign, but I went home that evening, I said to my husband "Jill says I should resign" and he says "Yeah, I think you should, you're so unhappy, it'll be fine." So I did and then ... in the UK, you get three months notice. So I had three months of pay, so I kind of had three months to sort things out. During that period, we booked an amazing trip of a lifetime to go visit my sister in Thailand.

Christine:
Basically, the first thing I did with no income whatsoever was get on a plane to Thailand and go stay in five star hotels, but my sister had booked me where breakfast costs like $50 a person. Chris and I just kind of got fits of hysterical giggles and weren't really sure what to do or how to make it stop, because it was all pre-planned. Chris was like "Okay, the only thing we can do is just to enjoy it and then we'll deal with stuff when we get back."

Bobbi Rebell:
So basically, so now, you're gonna start your own business as an author, because you've got this book in progress. Your husband is at this business, which spoiler alert, is doing great now, but was at its early stages and you're living a lifestyle that needs two incomes from steady jobs to support.

Christine:
Well, I would say that that was our saving grace actually. I think we were really fortunate that my husband bought a house a long time ago, so actually, when we came back from Thailand and were like "Okay, let's just clear the decks. We've gotta lose every piece of spending that we have that is not essential." What we were astonished by, having gone in a really short space of time, from two corporate incomes to nothing, was how much spending you could just strip out overnight. We just cleared everything. We cut television packages, gym memberships, old insurance policies. We just scaled everything right back. What we were astounded by, we really worked together on it, we were really focused on it. We went from shopping in the equivalent of Whole Foods to the discount aisle at the discount supermarket.

Christine:
We were just astonished actually how little you could spend when you really, really put your minds to it. Having been massively complacent, it has to be sad. So, we just stripped out all spending and twiddled everything back and basically rebuilt from there. So I didn't immediately start a business. I freelanced for a while and then I met a guy called Robert Phillips who had it in his mind an idea of a consultancy he wanted to set up and was really inspirational.

Christine:
I joined up with a group of people and we started a consultancy that's been really successful and it's given us a great and stable income and allowed us to compensate. But it really took nearly a year for us to sort all of that out.

Bobbi Rebell:
Alright, what is the takeaway for our listeners?

Christine:
So my takeaway, the thing that Chris and I have taken a run through our lives is to keep your fixed cost as low as you can, so that you've always got the flexibility to [inaudible 00:07:55]. We were saved by the fact that we didn't have an expensive car policy, we didn't have kids who have expensive childcare, we don't have kids in expensive schools now. We keep the baseline really low so that we can scale up or down according to what we've got available.

Bobbi Rebell:
So what you learned really, is that a lot of these expenses that were just part of your life, you weren't really thinking about. It was pretty easy to just say goodbye to them.

Christine:
It really was. I do totally take responsibility for having previously been compulsive, but we both had good jobs, we both got promoted pretty regularly, our incomes have got bigger and we just really assumed that they would just continue to get bigger. We just really were very thoughtless about A, the impact of childcare and how much money that is. And B, how you often also lose one or half a salary and we managed to lose two salaries, which I think was quite an achievement when you have kids.

Christine:
I think my other big learning is ... as well as keeping your expenses as low as they can be in terms of core expenses, but also to be really thoughtful about what your childcare costs are gonna be and how you can organize work when you've got kids.

Bobbi Rebell:
Yes. Another big expense with children is the holiday season and all this gift giving that goes on, which brings us to your everyday money tip.

Christine:
Yeah, I'm really interested in the circular economy which is reusing things and not keeping ... making new stuff. I really try and use second buy, second hand things, whether it's books, toys, looking on Ebay for things and getting the kids used to the idea that a gift is a gift, even if it's secondhand. I think that you can still give things to people they really care about, without spending as much money as you might have done.

Bobbi Rebell:
And not hiding the fact that it is secondhand, actually making that part of the conversation.

Christine:
Yeah, absolutely. I think being proud of it, you know, mixing something up. My husband's great at re-painting stuff or making it look better and being really proud of it and saying "I found this in a secondhand shop and I thought you'd really like it" that's okay.

Christine:
What I find is that strangely, people are quite excited that you went through the trouble to go look for it for them and if you fixed it up and made it look nice, than great. Embrace it, enjoy it.

Bobbi Rebell:
Well one thing that I enjoyed was your book which is called The Mother of All Jobs. How to have children and a career and stay sane-ish. And as I joked at the beginning, emphasis on the ish. One of the great things about it, is that it's very real. You have some very relatable and specific stories. You did a lot of work interviewing people here.

Christine:
I did. I started off with those interviews I mentioned with really senior women who were very high fly. Then, I kind of went for the book to lots of really, really ordinary women, doing ordinary jobs who are never gonna be Chief Exec. Probably never gonna be on the board and just working to pay their bills, basically. To really understand the dynamics of their relationship, their kids, schools and just try to figure out how it all works together and how their solving problems and what works and what doesn't.

Christine:
There are no quick fixes, right? You look at each [inaudible 00:10:55], you go "What can I take from that that's useful? What's relevant to me right now?" That's the way it's set up.

Bobbi Rebell:
And the book has said it really smartly, in that it is bite-sized. You could read the whole thing, of course, but you could read it little by little and there are sections, breakout sections that are titled "If you are too tired and read the above" which kind of gives us the executive summary, because you're realistic about how busy parents schedules are.

Christine:
That's good also, 'cause I've got fifteen books on my bedside table and I wish some of them had a [crosstalk 00:11:26] section I could read as well. So yeah, it was a reflection of the experience and I read two pages in the evening after putting all the kids to bed and everything, then I fall asleep and I don't read anything else.

Christine:
Yeah, it was so that if people are skipping through it, they could just pick out some bits and come back to something later.

Bobbi Rebell:
Well you are wonderful, as is your book. Tell us more about how listeners can find out more about you, the book and of course, following you on social media.

Christine:
So, I'm a Twitter person, and that's C ARMSTRTONG LD which stands for London and I have a website at ChristineArmstrong.com and I look forward to hearing from your listeners.

Bobbi Rebell:
Thanks Christine.

Christine:
Perfect.

Bobbi Rebell:
Okay friends. First, have you ever heard of something called the sunken cost theory? Financial grownup tip number one, sometimes, you pay for something and then, you can't get out of it. You are stuck and the money is gone. Like Christine and her husband's big luxury trip to Thailand. Don't spend your time stressing about the money, 'cause it's already bye-bye. It's gone. Move on psychologically, do better next time, but most of all, enjoy what you spent the money on.

Bobbi Rebell:
Financial grownup tip number two, keep those fixed costs low. Part of the reason that the panic attacks were kept in check for the couple was that they had a stable place to live. They own their home and they kept their overhead low because of that, so that they didn't have to worry about all of these bills that they were stuck with, that they couldn't do anything about. They were able to make changes in the high cost that they did have because, they were discretionary. Sure, you can go back and say they shouldn't, coulda, woulda, whatever, but ... the reality is, that when the you know what hit the fan, they were able to make some choices that didn't even seem that tough at the time. It's interesting that they never really went back to a lot of those discretionary expenses, even when they could, in theory afford them again, because their perspective had changed.

Bobbi Rebell:
You can go back now, of course and look at what you have that's discretionary and cut back, probably a good idea for most of us. But at least go and do an analysis of what you have that is fixed that you could not get rid of in this kind of unexpected situation where you suddenly have no income and two kids and businesses with bright futures, but still not any real, meaningful cashflow temporarily. Think about what you would do if you were in their situation.

Bobbi Rebell:
Alright, I hope this episode with the great Christine Armstrong gave you guys some perspective on your money and your life. Let me know your takeaways and if maybe your making some changes because of what you heard from Christine. On Instagram, I am @BobbiRebell1 on Twitter @BobbiRebell and big thank yous for leaving reviews, it helps others discover the show, as does just simply telling a friend. Thank you so much, you have no idea. Thank you so much to those of you who do all these things and who subscribe and spread the word. It is truly so appreciated. We put so much work into this show and your feedback is priceless. Of course, also priceless, is the advice we got from Christine Armstrong that helped 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.

After a nasty split from his 11-year business partners at the Art of Charm podcast, Jordan Harbinger found himself putting his own networking lessons to work as he started a new business from scratch with the Jordan Harbinger show and the Advanced Human Dynamics  platform.

Jordan's money story:

Jordan Harbinger:
Yeah, so it was supposed to be an amicable split. I got sick of being the dating guy, because I'm pushing forty, and I'm married, and I'm in a healthy relationship, and I just wasn't interested in that anymore. And a lot of the shows that I was doing were interviews with athletes, and generals, and all these really high-profile people, and they were always shocked, like 'oh, this is what this podcast is about?'

Bobbi Rebell:
Well the show was evolving, with you.

Jordan Harbinger:
The show was evolving with me. And my business partners were not super happy about that, and so they decided that we were going to split, and then when they proposed a split, we all agreed on it, and then later on, they decided, 'actually, we're not going to give you anything,' because ... I think that they had ... well it's only one guy, really ... I think he had hoped that I wouldn't leave, because I was doing all of the stuff that they needed to do to generate revenue.

Jordan Harbinger:
And so, I think he really, kind of had a little bit of an ego melt-down.

Bobbi Rebell:
When you say they didn't give you, is this about money? That he didn't give you the money, the buy-out?

Jordan Harbinger:
Right, I still own a third of the company.

Bobbi Rebell:
Right.

Jordan Harbinger:
But I'm locked out of everything. So instead of fighting for that, I said, you know what? I'm just going to start over. So I started my show, social media, email list, website, all from scratch.

Bobbi Rebell:
For people that don't know, can you talk a little bit about those assets, the value, and how they're created and what it takes to rebuild it?

Jordan Harbinger:
Sure. So, I had, essentially, created social media, Twitter accounts, since 2008 or whatever. An email list that had over, at that point, hundreds of thousands of people on it. A website that was getting millions of visits per month, and shows that were getting millions of downloads per month. And then, when all that was locked, I just basically ... I mean I literally created a new account on Twitter, called friends and said, 'hey man, can you whip up a website?' Put an email collection plug-in, in there, that was from a friend, Noah Kagan over at sumo dot com.

Bobbi Rebell:
Oh I love Noah Kagan, he's terrific.

Jordan Harbinger:
He's great. Yeah. And so, I started The Jordan Harbinger from episode one, after doing the other show for eleven years.

Bobbi Rebell:
Was there a way to make people aware of this, other than, you're suddenly not on this show? And they're just being silent about it?

Jordan Harbinger:
No, there was no way for me to tell anyone. The listeners all had to come and look for me. And that's actually what happened.

Bobbi Rebell:
Where does this stand now? I mean, is there any recourse when this happens. Because people ... it's unusual, but it's sort of not.

Jordan Harbinger:
It's actually not that unusual, yeah. Now that I'm telling my split story everywhere, almost every successful entrepreneur is like, 'oh yeah, this happened to me a while ago,' or 'that happened to me a while ago, and I've never been happier.' It's really, really interesting to see. And, I've actually never been happier, myself, either. It's strange, you never realize how toxic environments are until you're out of them, because, it's that whole boiling frog thing, right? If they turn the temperature up by a notch every year, you're there for ten years, you don't realize you're on some sort of crazy funhouse ... funhouse is not the right word, a funhouse mirror-covered crazy-house, more like.

So when you get out of there, you go, 'oh! This is how normal people treat each other on teams, and this is how people celebrate wins together, and this is how people reinvest in a company.' Instead of causing stress, and blowing it. And so, it's actually just really, really been nice, for me, to pull the plug and start over. It's been rough, but it was absolutely worth it.

Bobbi Rebell:
There's a human element to this. So you lost ... your website, you lost your branding, you lost your email list in that. But, you've took humans with you. Tell us about that.

Jordan Harbinger:
When everything hit the fan and fell apart, what I did is I made a list of people I wanted to call, and the first ten or twelve phone calls that I made were to people I know would say yes to helping me. CEOs and other entrepreneurs, and people that were really, really great to me, in the past. And they said, 'yeah, we're going to help you!' So I had this massive support network. I went on over a hundred other podcasts this year, along, well over that, actually, at this point. And rebuilt the show up to millions of downloads a month, from zero, in February. And now it's better than ever.

And it's just been so strange, because, oh! I also took a lot of the team with me. Because when I left, a lot of the other team, that was at the old company, was like, 'well, we came to work with you, man.' So they all left. And I said, 'I can only pay you half of what you're worth for the next foreseeable future,' and they said that's fine. So that's what happened, and I've made them whole since, but that was a massive vote of confidence.

Because all of this qualified staff left the old company. They all bounced.

Bobbi Rebell:
Well they followed you, more than they left. They went to where they saw the opportunity, and that's human nature.

Jordan Harbinger:
Yeah, that's true. I mean, I still have my production team, my [inaudible 00:08:14] team, everything. Everybody came with me.

Bobbi Rebell:
And, probably, many of your listeners are gradually migrating over, if they have not already. And because you have adjusted your format, and constantly evolve it, that's probably expanding what your opportunity is, and they see that.

Jordan Harbinger:
Exactly. There's been a lot of people that have said, 'oh, I didn't even know about the old show.' And I'm like, that's good. That's what I like to hear. Because, I don't necessarily just want to bring the same crowd, from the last show. There's great listeners from the last one, but The Jordan Harbinger Show is just a much better interview. It's a much more interesting project for everyone involved, and I've done a lot of the things that we used to do in the old company, like try to run live events, and do all this, and do all that. And I've realized, I actually don't like doing it.

So, it's pretty fun to just be on my own.

Bobbi Rebell:
How do you move past something like this? Or do you not? Do you just work it into your life, and use it as part of who you are now?

Jordan Harbinger:
You work it into your life and use it as a part of who you are now. And granted, look, this is ten months since this thing. The lawsuit is still in full swing. So, it's not exactly, something I'm going to forget about this year, or probably even next year. But, that's all fine and good, I mean, this is trial by fire in a lot of ways. And I've certainly been through worse with less resources. Losing a business is a problem, but it's not losing a kid, it's not losing a spouse.

In fact, I look at it this way ... this isn't just rationalization either ... when I look at this, I think, if the deal that I had signed with the old company, had actually been honored, I would have been forced to gradually disentangle with them, over the period of three years. I would have had to promote their stuff, their products, the low quality stuff that was coming out now, I would have had to promote on my new show.

Instead, since they didn't honor anything, I have no non-compete, I can do whatever I want, I can make money however I want to do it. I can do anything in any niche, they have no say in anything. I can run any ads that I want and I don't owe them anything. In fact, they owe me thirty-three percent of the company share value.

So, it really ended up being like, the dumbest thing they possibly could have done. And for me, it was really scary, and then it turned out to be the best possible thing that could have happened.

Jordan’s money lesson:

I'm here to tell you, dig the well before you get thirsty. Because, if you try, when this stuff all happens to you, to reach out to everyone, and you're going, 'hey, look, I'm having a really hard time,' some people will be understanding. But a lot of people will be like, 'we haven't spoken in two, or five years, or whatever it is. I don't know what you want me to do. Best of luck.' Right?

But, since I'd done such a job ... I won't say great job, but such A job ... building and maintaining network connections, giving value, offering people things that can help them, without the expectation of getting something in return, when I did need help, people were coming out of the woodwork.

I mean, it was just, people I didn't even know were like, 'hey, heard what happened. Let me know if you want to come on my show and tell the story.' 'Hey, can I write an article about this for Ink?'

Jordan's everyday money tip:

I see a lot of people doing things like, spending ninety minutes, round-trip, driving to this produce farm, because they get cheaper stuff. And look, maybe you like organic produce from that farm, that's fine. But I see a lot of people doing really silly things to save money. Little, I wouldn't say scams, because they don't elevate that far, but I'm going to move the car eighty-five times, instead of renting a parking spot in my building in San Francisco. I mean I see stuff like this.

And they're lucky to break even on the cost of parking tickets at the end of the month, let alone all the time they spent, getting up at 5 AM so they can move their car, or driving around for twenty minutes, and then going back to sleep. I mean it's ridiculous, right? Pathological in some people.

Bobbi Rebell:
Oh yes.

Jordan Harbinger:
But we like to focus on the big wins. And when I say that, what I mean is, the same people that will not rent the parking space in their building, in the city, so that they can park, and will drive around all day looking for parking spaces? These are the same people who will often keep credit card debt, so that their credit score takes a little bit of a ding, and then when they go to buy a house, they get a lower ... I should say higher ... interest rate, on that mortgage, and it ends up costing them sixty-eight thousand dollars. Right?

So we have to be really careful and focus on the big wins.

Financial Grownup tip number one:

Show up. Guys, we edit these podcasts, because, as you know, I really value your time. I want to keep them to around fifteen minutes. So, sometimes those edits are pretty severe. But we also edit out things, just to make the podcast better, not just for time. And in this case, we cut out a lot of Jordan coughing, and fighting to sound his best, for this interview.

Not that you would notice, he's a pro.

Jordan was battling a cold, and probably, at some level, exhaustion. He had just returned from a big speaking engagement, and was really not feeling well. But Jordan showed up. The man has done over one hundred podcasts promoting his new venture, not to mention, keeping to an aggressive appearance schedule, and other projects, building out his new business.

The guy shows up, and he works hard. No pity party, no year off, finding himself, blah blah blah. Jordan Harbinger works, and that is why his business is, and will continue to, grow, exponentially.

Financial Grownup tip number two:

Did I ever tell you guys I was married in my 20s, and got a divorce? And believe me, I was the one that always said I did not believe in divorce. But it happened. The best thing I did, was give stuff up, because you know what? You can get it back, or you know what? You really don't need whatever stuff you're fighting over, in the end.

So if you have a split, business or personal, of course, fight for what is yours, to some degree. But eye on the prize. Be like Jordan and move on. Take the long road, and most of all, get to work building your new life, or your new business. Do not let your ex walk all over you, but don't get stuck fighting for some material item, or every last cent, so much so, that you get caught up in your past, and don't move forward.

Bobbi and Jordan also talk about:

• How Noah Kagan was instrumental in helping to get Jordan's business off the ground. To learn more about Noah, check out his website here - https://okdork.com/about/

Check out Jordan's website - www.jordanharbinger.com
Here is a link to his course we mentioned - https://www.jordanharbinger.com/course

Follow Jordan!

• Instagram

• Linked In

• Twitter

• Facebook

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.

Special guest co-host Manisha Thakor of the True WELLth podcast joins Bobbi to share ways to be not just wealthy but well-thy in 2019. 

The College Investor’s Robert Farrington loved his job at Target. He was also well paid. But he loved his family more. So he made the tough decision to leave and focus full-time on the side hustle that was already throwing off even more income. 

In Robert’s money story you will learn:

-The value of time and how Robert made the decision to leave a job he loved in order to spend more time with him family

-How Robert grew his side hustle from no income into his full-time business

-Advice on how to leave a job on great terms

In Robert’s money lesson you will learn:

-His take on the benefits of growing a side hustle

-The specific obstacles Robert prepared for before taking the lead in his business

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

-The truth behind retail shopping myths

-Quick tips on saving money while grocery shopping

-The number one Black Friday tip

Bobbi and Robert also talk about:

-Where the idea for his website started

-His regrets about leaving his job

-The College Investor and the resources offered online

-The College Investor 6 minute audio show on Apple Music

In My Take you will learn

-How to be honest with employers about having a side hustle - while not oversharing

-How spending time with family during the holidays can be more valuable than rushing out for Black Friday Deals

 

EPISODE LINKS:

Follow Robert!!

Instagram @thecollegeinvestor

Youtube @TheCollegeInvestor

Linkedin Robert Farrington

Listen to The College Investor Podcast https://apple.co/2CqMuC3 

Learn more on The College Investor website https://thecollegeinvestor.com/ 

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

Robert Farrington:
Am I really able to say that I value the time I spend with my family and stuff when I'm missing Thanksgiving and Christmas and holidays and weekends and not able to go to birthday parties?

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

Bobbi Rebell:
Hey, Financial Grownup friends, get ready for an episode not really about money, but about living a rich life with your family. It's about the price of your time and the value of your time, and for many of us, not all time is created equal. Target store manager, Robert Farrington, had the money, but he wanted the time. Not just any time. Nights, weekends, and holidays, specifically, the times that most of us get to be with our families, but in retail, not so much. Fortunately, he had something else going on. More on that in a sec.

Bobbi Rebell:
First, a quick welcome to our new listeners and to our returning ones. If you like the show, take a screen grab, share it on social. Then subscribe so you don't miss any upcoming episodes, and make sure that you have it set in the settings for automatic download. With that, let us get to Robert Farrington's story. He now runs a little site. It's actually a really big deal website called The College Investor. And for you early stage entrepreneurs, it was a side hustle with literally zero income. Yes, zero income, no money coming in for the first two years, but that was a while back. He'll tell you more about it.

Bobbi Rebell:
Now, it is his full-time business and it is growing. You're going to love this story. Here is, the College Investor. It's Robert Farrington.

Bobbi Rebell:
Hey Robert Farrington. You're a financial grownup. Welcome to the podcast.

Robert Farrington:
Hey. Thank you so much for having me. I'm excited to be here.

Bobbi Rebell:
You are ... And this is trademarked, my friends. You are America's student loan debt expert. You're also the founder and editor of The College Investor, so you have a lot of knowledge to share with us.

Robert Farrington:
Whew. You kind of scare me when you say it all, but yeah. I'm excited to share with you.

Bobbi Rebell:
So give us a quick summary of what The College Investor is and then we're going to move into your money story.

Robert Farrington:
Sounds great. So, The College Investor was started by me as a side hustle in college, because I wanted to share my thoughts on how to invest. But everybody that I knew was like, "That's cool Robert, but I have student loans and other things and I just can't get there yet."

Robert Farrington:
So over the last few years, we've kind of incorporated more about getting out of student loan debt, getting out of debt in general, and how to build wealth so you can start investing even in your early 20s, or in college, so that you can build wealth and set those financial footprints in motion for your future.

Bobbi Rebell:
So, this is where it gets really cool and exciting, because you've been working on this for a very long time. You are married. You have two young children, the oldest one going into kindergarten. You were full time at Target until a year ago and this was your side hustle. And then you were able to make the decision to flip the switch and take your side hustle full time. And that's your money story. Tell us more Robert.

Robert Farrington:
Yeah. So about three years ago, I started earning more than my Target job. You know, we were just stashing the money away and didn't really have any plans to leave because you have to understand, I have loved working at Target. It was a great company to work for. I had been there a long time. I was comfortable there. I was probably one of the top performers in my area, so life was really good at Target. But there is one big drawback about working in retail and that is that you have to work nights and weekends, and holidays.

Bobbi Rebell:
Even if you were the manager by then. You were pretty senior.

Robert Farrington:
Right, but I also believe in being a leader, so I would still work my weekends with my team. I would work a night a week with my team and then as the leader, I definitely had to be there on Black Friday and throughout the holiday season. It meant having Thanksgiving lunch at like 12:00 and then going to work at 2:00 in the afternoon on Thanksgiving day, so that we're ready to go when the store opens.

Robert Farrington:
That really became hard as my kids were getting older.

Bobbi Rebell:
Okay, so tell me about the conversation that you had with your wife when this decision was made.

Robert Farrington:
It really was a series of decisions. First off, it was like, this is a cool side hustle. Let's not change anything. And then it was like, wow this is really becoming more of a thing and we can live off this business income on the side. And you don't need to work there. Finally, I really had to think about what we valued as a family. So my wife and I were talking and you hear these things like, "Show me your money and show me your time, and it will tell you what you value." So, am I really able to say that I value the time I spend with my family and stuff, when I'm missing Thanksgiving and Christmas and holidays and weekends, and not able to go to birthday parties.

Robert Farrington:
So, it was really really hard to leave something I was so comfortable with, but at the same time I also wasn't living my truth in that I wasn't necessarily doing exactly what I valued. And we could afford it. I could afford the life I wanted to, and said that I wanted to. And that really was a big part of our conversation with my wife.

Robert Farrington:
The second thing is, is contingency plans. We always had these conversations. I run an online business, so it's like, what happens if the internet goes out tomorrow? Right? Are we going to be financially okay if suddenly there is no income stream. So, it really was about planning and making sure we had enough saved and if the internet did stop tomorrow and I left my day job, would we be okay financially? And we kind of checked all these boxes and once those were all yeses, it was setting a timeline up for when does it make the most sense to leave?

Bobbi Rebell:
They knew about the side hustle right?

Robert Farrington:
It was one of those things. I never hid it, but I was never fully overt about it. It had been on my LinkedIn profile for a decade. My peers, every now and then, I'd get student loan questions from my peers. They'd be like, "I'm trying to pay off my student loans. Can you help me?"

Bobbi Rebell:
Yeah, but did the Target management know that this was producing more income than they were paying you?

Robert Farrington:
I never shared that, so I'm 99% sure that they had no idea. In fact, I know most of them didn't because when I left and afterwards, they had a little going away party for me and like, "We wish you the best of luck. We hope this all works well for you."

Bobbi Rebell:
So they had no idea?

Robert Farrington:
Yeah, and I never hid that. So that's the interesting thing. If no one asked, I was very candid. I've been candid even for the last seven, eight years online. On different podcasts and interviews and stuff, so it's out there.

Bobbi Rebell:
Did they ever think maybe we should pay him more? If he can make more from a blog, maybe we're underpaying him? Was there any kind of conversation like that, ever?

Robert Farrington:
It's hard, because I was extremely well paid. It was a nice six-figure ... I don't think people realize what you make at Target, but I was, with my bonuses and stuff, I was probably making about $180,000/year when I left.

Bobbi Rebell:
Wow. So, let's go back to quitting. So, how did you actually quit?

Robert Farrington:
So, I really did think about this and planned it out. Because I also, like I said, I wanted to leave on really good terms. I didn't want to burn any bridges, so I actually, my wife and I finalized our plans for leaving in February, or March of last year. We said we're going to leave in September. And I thought this was very respectful from the workload that was going on at Target, but it was also enough time that they could have enough leeway to have everything in place before the holiday season.

Robert Farrington:
I decided that we're going to give a month notice, so I actually told my boss in August. And I probably gave about five and a half, six weeks notice. But I was fully ... You hear these horror stories like, if they were going to walk me out that day or something crazy, I was fully prepared to leave that day. But I was going to be very respectful, and so when my boss came in August, I would say she comes like once or twice a month. When she came in, I just pulled her into my office and said, "I have something really important to share with you." She had no idea what was coming. I said, "Hey. So I have some big changes I want to tell you. I am going to be resigning and I'm going to be pursuing my own endeavors outside of Target. Spending more time with my family."

Robert Farrington:
And the look of shock, she actually texted me like four hours later. So I told her at probably 4:00 in the afternoon, so this was like 8:00 at night. She's like, "I cannot believe this. This is crazy. I'm totally shocked." I totally caught her off guard. But I gave them, like I said, almost six weeks notice. So, I felt like I left in the most respectful and terms possible. Which I also think is the best way to possibly leave if you are going to leave.

Bobbi Rebell:
What was the reaction around your store?

Robert Farrington:
Most of them were pretty excited for me. I think all my direct reports actually were much more aware of everything then anybody else above me. And so, it was less of a shock, but same thing. I'm also very diligent in how you let people know, so make sure you have a very strong hierarchy of letting my senior managers know. And then just announcing it downward. Clear communication before I even let them know. So, I don't think I let them know until about a week and a half after I let my boss know. So my boss already had some plans in place, and we were able to share some very specific plans, which I think is really important when you transition in any workplace.

Bobbi Rebell:
Are there things you would do differently, looking back?

Robert Farrington:
I honestly would probably do it sooner. It's one of those things, I was so worried about all these random variables. And I probably gave an extra year or two to Target. And like I said, it's a great company but at the same time, what could I have done in those extra year or two when I could have left longer. That's the only real regret I have.

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

Robert Farrington:
I think the big lesson is, if you grow this side hustle with your time and energy outside of work instead of watching TV shows, or doing whatever non-productive things you're probably doing outside of work, you could turn this into a full-time job that you're passionate about, you love, and it works with your schedule. So, I think it's definitely a clear path that you can actually achieve if you want to put the time and effort into it.

Bobbi Rebell:
Alright, let's talk about your everyday money tip. We're going to tap into your knowledge as a retail expert, having seen it all, from the grassroots level. Tell us what people can do to save money and be better shoppers at stores, not necessarily just Target, but stores like Target. What can they know about pricing, about sales, and so on?

Robert Farrington:
Yeah. Let's debunk some of these myths first. So first off, I always love these Buzzfeed articles that come out. What digits are the last ones that you know what the markdowns are?

Robert Farrington:
Well, let's talk a little bit about math. So almost every price in retail ends in 99 cents, right? So, when you mark something down half off, it's always going to end in eight. Because that's just math. And so when you mark it down 75% off, for the third time, or the second markdown, it's going to end in a four. So, these math strategies that they say are secret hacks, is really just the math of the sales. It's true.

Bobbi Rebell:
Yeah.

Robert Farrington:
I think people just need to realize that. I think the best thing ... The other thing that people need to realize is that, almost every store Target included, puts the same things on sale every two weeks. So it just alternates, so if you're a regular grocery shopper, you'll notice this a lot. Especially in food, because one week it'll be Coke on sale, the next week it'll be Pepsi on sale. And then it goes back to Coke on sale. Then it goes back to Pepsi on sale. And it's the same sale. It's just goes alternating every other week. And you see this in almost every major retailer, so one, if you have really strong brand allegiance, align your shopping habits with your sale week and you'll probably find that you're going to get that same sale every time you go in because it will line up with your shopping habits.

Bobbi Rebell:
So you said you always have to work, you've always had to work the holidays and especially Black Friday. What's your number one Black Friday tip?

Robert Farrington:
The number one Black Friday tip is that all the ads come online about a month before Black Friday. So you can plan out all your shopping ahead of time. And you have to realize that the door busters at every store, there's only about 10 to maybe 50 of that item. And so, if there's one thing that you really really really really can't live without, if you're not the first 10 to 50 people in line, you're probably not going to get it. So don't waste your time going out there.

Robert Farrington:
The second thing though, that's really emerged over the last couple years is online shopping. So at the same time, a lot of these companies are trying to compete with each other and they're moving their Black Friday sales online and they're moving them on to the week before Black Friday. So you can get a lot of the same great deals online, but without even going to the store, about a week before you even shop.

Bobbi Rebell:
Let's talk more about what's going on with The College Investor. So this is your full-time passion project, slash income, slash growing company. You've got a whole staff there now. You're managing that now. What are you priorities? Where is your growth going to come from? What can people expect and look forward to there?

Robert Farrington:
So if you want to know anything about getting out of student loan debt, and starting to invest, The College Investor has it for you. We have pretty much every topic around student loan debt covered and you know, sadly as much as I don't want this to be the growing reason for our growth, student loan debt in America is growing and it's such a problem for most people. So we have your answers. We have tools and resources that can help you. If you don't like to read, you can also listen to The College Investor audio show. It's a podcast where we change our written articles into a short digestible audio show for you because I know-

Bobbi Rebell:
You love that. Love short.

Robert Farrington:
Yeah.

Bobbi Rebell:
Yes. I love that.

Robert Farrington:
Short. I mean, I think I beat you because my average show time is like six to eight minutes because we're just talking about the daily article of the day.

Bobbi Rebell:
But that's perfect. That's what people need because everyone's busy. Alright, where can people ... People can obviously reach you at The College Investor, but tell me your social channels et cetera.

Robert Farrington:
Yeah. You can go to thecollegeinvestor.com. You can go to The College Investor audio show. You can find us on YouTube at The College Investor and you can find us on Instagram at The College Investor.

Bobbi Rebell:
Love it. Thank you Robert.

Robert Farrington:
Thank you for having me.

Bobbi Rebell:
By the way, that pricing math that Robert thinks is so obvious to everyone, I had no clue. What about you?

Bobbi Rebell:
Here's my take on what he had to say. Financial Grownup tip number one. If you have a side hustle, follow Robert's path and be open about it at work. You don't have to be too open. When I went to write my book, How to be a Financial Grownup, the first thing I did was tell my managers and get their okay. Don't hide things. But then also, don't work on it during your work hours and you can be open about your plans, but you don't have to share the whole big picture and all your grand plans.

Bobbi Rebell:
Financial Grownup tip number two. I love that Robert chose family over spending time working on the holidays. The same can be said for shopping. Before you race out to get one of those amazing, say Black Friday deals, remember that Robert said, and a lot of you know this already, there are very few available. So, you'll have to get here really early and spend a lot of time, invest a lot of time, to get it. So is saving money really worth cutting into your family time on a holiday? Maybe look online, a different day, ahead of time and set a price alert. Then, if you get that alert, you can spend five minutes buying it online and get back to being with your family. Or, maybe what you have is fine and you don't buy it at all.

Bobbi Rebell:
Before we wrap up, tell me, I want to know, what's your best retail shopping tip? DM it to me. And please, take a minute to follow me on social media. I am @bobbirebell1 on Instagram. bobbirebell on Twitter, and Bobbi Rebell on Facebook. The website to get more information about the show, bobbirebell.com/financialgrownuppodcast and for the show notes and more about Robert and the The College Investor, go to bobbirebell.com/podcast/robertfarrington and thanks to The College Investor's Robert Farrington for bringing 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.

After buying an expensive home, Certified Financial Planner David Rae found himself facing an income crunch during the recession. His decision to get a roommate helped him keep the home and stay on track with his financial and lifestyle goals. 

In David's money story you will learn:

-That even CFP's experience money troubles too

-Creative ideas to help alleviate the cost of a home

-Ways to cope with the feeling of failure when financial goals aren't met

-The real reason people can afford big houses

-What David looks for in a roommate!

In David’s money lesson you will learn:

-Financial problems should be dealt with head on

-There are creative ways to cut spending that won't inhibit your lifestyle

In David's everyday money tip you will learn:

-David's favorite credit cards and the perks of each one

-The easiest way David saves money while traveling first class 

-How to prioritize your spending to afford nice vacations

In My Take you will learn:

-Being a financial grownup means keeping on track with your goals, not living a certain lifestyle

-Take action if a financial disaster is coming your way, don't wait for it to go away

EPISODE LINKS

Check out David's website FinancialPlannerLA.com

Follow David!

Instagram: @DavidRaeLA

Linked In: @David Rae, CFP

Twitter: @DavidRaeCFP

Facebook: @DavidRaeCFP

In this Financial Grownup episode we have Certified Financial Planner David Rae as a guest on our show. He talks about decisions he made that make him a Financial Grownup like getting a roommate. He also gives us tips on how we can save money traveling first class. #FinancialGrownup #SaveMoney #Traveling

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

David Rae:
It did kind of feel like I was failing in a way to have to get a roommate, but then looking forward, I'm like this means I can actually be successful and keep the house, rebound, and let it rebound in value, and still travel and have fun and do all the things I wanted to do.

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

Bobbi Rebell:
Hey friends, that was my friend certified financial planner, David Rae. Even though he felt like he was failing, he was in fact pivoting, very well in fact, to deal with things beyond his control. More on that in a moment. Just wanna thank all of you for your support. We have been doing some new content here, adding in bonus episodes on topics you guys have requested, and the feedback has been amazing. Please keep it coming, DM me on Instagram at BobbiRebell1 and on Twitter and BobbiRebell, and tell me what you think about the changes we've been making, and what kind of topics you want us to be covering. Reviews are great, too if you wanna support the show, and of course, tell a friend.

Bobbi Rebell:
Let's talk now about about David Rae. He takes being a financial grown up very seriously, and so it was hard, but maybe not too hard to make a decision when the recession hit a decade ago. Here is David Rae.

Bobbi Rebell:
Hey David Rae, you're a financial grown up, welcome to the podcast.

David Rae:
Thanks for having me on.

Bobbi Rebell:
I am such a fan of all the wisdom that you share with so many people. You're quoted very widely in the media, you're on TV all the time, and a lot of it has to do with your expertise being a financial planner, and telling us what to do when we need it in advance of what we need it. And the story that you brought to share with us here on Financial Grown Up I love because it has to do with the fact that you're kind of just like us in that things happen that you can't always control with the economy and the larger environment, but you, even though you're a CFP, still have to deal with them. Tell us your money story.

David Rae:
I did a lot of planning and I went out and bought a very nice and expensive house in LA. This was right before the financial crisis, so I bought my house in early 2007. I thought I got a great deal, I got like $300,000 off the asking price, little did I know that the financial crisis was coming. I got a house that I thought I could afford with my growing income, and when we went into the financial crisis, my income didn't go up as much as it had in the past, and a few years in, it had started to decline actually, and that combined that with real estate values tanking, I had to go back to my financial plan and look at my spending and where I wanted to spend money, and instead of having to cut back on my travel and fun with friends, I decided to get a roommate

David Rae:
And I think that was a really big financial grown up moment because it did kind of feel like I was failing in a way to have to get a roommate, but then looking forward, I'm like this means I can actually be successful and keep the house, rebound, and let it rebound in value, and still travel and have fun and do all the things I wanted to do. And I have a big, nice house, I can have a roommate here. It wasn't like I was sharing a room.

Bobbi Rebell:
Tell us more about what happened. How do you even start looking for a roommate? How old were you at the time, and you'd been living on your own for how long?

David Rae:
I hadn't been on my own that long. I'd had roommates before I bought the house, so it wasn't like a huge, big deal. It wasn't like I was married with ten kids running around which would make it a lot more difficult, but I was in my mid twenties, I had been a few years in to being a financial planner, and I planned ahead. I could make the payment, I could afford the house, even with the drop in income, but it juts would be tight and really not a fun process. Plus, I was looking at real estate values and they had dropped pretty substantially around the country.

David Rae:
By getting a roommate, I was able to still travel, still have money, and still be able to save for my financial goals, like retirement and all those fun things that a financial planner should be doing. And at the same time, it allowed me to stay in my home because I bought a bigger, more expensive home knowing I would be there for a long time. Since I've bought the house, it's doubled in value, it just had a very nice 30 or 40 percent dip during the financial crisis, like much real estate did during that time. But looking forward, because I kept the house and stuck with it, even when times were tough, I was able to come out ahead with this great investment on my house which if I took the dip out of it, it looks great, my house doubled in value in like 10-11 years, which is a pretty nice return there.

Bobbi Rebell:
Right, because the truth is, as long as you can afford the payments, and you don't fall into a problem situation, it only matters the day that you buy an investment, and the day that you sell it. So even though there, as you say there's this dip, ultimately, it really is just on paper, because you had enough of a financial cushion, and you also made a big lifestyle adjustment.

David Rae:
Absolutely, and you know, most investments, it really does help to have time on your side, and real estate is one of those things as well because so many bailed out. And don't get me wrong, there are people that maybe their house dropped a lot more or they didn't want to live there and there was reasons to sell, or if I was gonna be going into credit card debt or racking up other bills, or not able to pay my mortgage, it would be a different conversation.

David Rae:
But with roommates, I was able to maintain my lifestyle, and then now I don't have roommates. I've since gotten married, and the house is mine and it's been upgraded and all this great stuff. But I weathered the storm, and I think having a plan and facing being a financial grown up really can make you smooth some of these tough times out.

Bobbi Rebell:
What was it like looking for a roommate? How did you even do that? Were there a lot of people looking for places to stay more than usual because of what was going on in the larger economy?

David Rae:
You know, I'm in the center of LA, so a lot of people are looking for roommates. Rent is really expensive here, so me renting a room in the house was still a few hundred dollars cheaper rent wise for someone coming to rent a room versus getting their own one bedroom or studio apartment. Plus it was fun, I mean I was in my 20's, so I think a lot of people in their 20's still have roommates, especially in bigger cities, and it was still fun to have because we had game night at the house, and we had people over for American Idol, so it was actually a really nice social thing because I was single and it probably actually aided my social life more than being a hindrance. Like oh my god, my terrible roommates sitting on the couch, you know, the horrible thing that people are probably picturing when they're thinking of getting a roommate or some hobbit that never leaves the house.

David Rae:
I actually had friends living with me, and it was not a problem to find roommates, and over the years I had a few roommates move in, and then the final roommate stayed probably two years after I got married. We just enjoyed having them here, and when they finally moved out, we didn't replace them.

Bobbi Rebell:
I love the fact that you're not living in absolutes. You didn't say well I am a grown up now, so I must live in this house alone, and it would be very immature to have roommates or whatever, or deal with people judging you. You made a financially responsible decision and it also was kind of fun in the end.

David Rae:
It was fun in the end, and looking ahead to where I'm at financially now as a financial planner, that meant my 401k contributions were still made, my mortgage was still paid, I didn't rack up credit card debt, and that's turned into hundreds of thousands of dollars over that time when I put it into the stock market and let it grow. So it really can make a huge difference when you give it time and let it compound.

Bobbi Rebell:
And what is the takeaway for our listeners?

David Rae:
Don't ignore financial problems. That's the biggest thing. I could have probably ignored it, and a lot of other people ignore when they're out of work and they don't wanna cut back, or they've gotten a decrease in pay, or they've had an illness. I face it head on, and it really meant that I could brave the storm and come out stronger on the other end. And I had some fun along the way.

Bobbi Rebell:
Yeah, and you know what, the other thing is you you didn't have to deprive yourself of things you enjoyed, like travel, so you were able to still do things that were discretionary to some degree. Because sometimes people in that situation, maybe would not have thought to take on a roommate, or chosen not to, and then they just wouldn't have traveled for two years.

David Rae:
And do what's right for you. I mean obviously some other people, you're right, it may be better to just not travel, but that wasn't what I wanted to be doing in my mid 20's when I was single and free and could run around the world and have a great time and I also wanted to have a house and I wanted to save for the future cause I am a financial planner, and I do love saving my money and seeing my net worth grow, which wasn't necessarily happening on paper during the financial crisis when the market was dropping and real estate values were dropping, and my income wasn't doing what I would like it to be doing, or what it's doing today.

David Rae:
But I'm here and I made it through and I was a financial grown up.

Bobbi Rebell:
You were proactive, and that's the important thing. Lets talk about your everyday money tip, because it also has to do with travel and making sure that you can travel the way that you want to travel. You have some tips for us.

David Rae:
Absolutely. My big thing to think about is prioritize what's important to you, cause I see so many people that say they can't afford to travel, but they're driving an expensive car, or they're living in a really expensive house, and that just doesn't leave any money leftover to travel. So prioritize your spending, and for me, one of the biggest ways that I can really travel in style, because I've gotten spoiled and like to fly say first class around the world. I use credit card points and miles to really make that affordable. I'm not gonna be spending $15,000 a ticket like my last trip to Europe would have cost if I paid cash. But i used miles, so I spent like $50 on that, and the way I accrue a ton of miles is I put all of my bills on credit cards, just disclaimer, I pay them off every month, I can afford what I'm spending. And I put them on the credit cards that will get me the most miles.

David Rae:
At Staples and Office Depot I get five points on one of my cards, and I have another card that gives me like four points on dining and other cards give you money on gas and utilities. So finding the cards that will give you the most points, as well as sign up bonuses and status matches. So I have an airline card that helps me have higher status, and I've gotten upgraded like 12 times this year on almost all of my flights from just having status, so that's free, sitting in first or business class. Just for having status. I like free.

Bobbi Rebell:
I like free.

David Rae:
I like nice stuff for free.

Bobbi Rebell:
So what resources, do you have any favorite resources that you can point us to?

David Rae:
I really like the points guy. It's a website that has a bunch of tips there, and there's another blogger called Eric Rosen who has a bunch of stuff on the internet if you google him, he talks really about how to get upgraded to first class, which is a great resource there.

Bobbi Rebell:
I need that.

David Rae:
I know you do. There's nothing more financial grown up than being first class, especially [crosstalk 00:10:46]-

Bobbi Rebell:
Not if you pay for it though. Definitely not gonna pay for it in actual cash or money. But if it could be free, that works for me.

David Rae:
We could all do that, we can all use miles and points or status, and just being a little strategic on how you do it, I book my hotels a lot of times through hotels dot com and I just went away for the weekend and used free nights. I went to Vegas and had two free nights of hotel. So it's just stretching the money you're making and spending to turn it into more travel and more fun, and that's just the stuff I love. I know other people like cash back, or gift cards or things like that, but I love to travel, and again, I've become a little spoiled and wanna be up in first class when possible, even though I believe Barbara Corcharan says she's back in coach. But I'll be up in first and that's how I like it.

Bobbi Rebell:
Before I let you go, I love your blog. Tell me about your blog.

David Rae:
My blog is Financial Planner LA dot com, and I really just try to bring fun tips to money. I know we get pretty serious as a financial planner, and you say the big B word, budget, but I really like to go more in the range of pop culture and fun, and I did a big series on the Golden Girls retirement, how you can retire and have a fabulous time [crosstalk 00:11:56].

Bobbi Rebell:
I love that, I was retweeting that one, I loved it.

David Rae:
I know, it's so much fun. People really love that. It's kind of taking that roommate story and going this can actually be a great, positive thing, and a happy dream retirement. We'd all love to live with friends, or at least have that kind of friendships around. So I try to make money fun, and definitely the tax stuff is in there, and the nuts and bolts are in there, but we try and wrap it in something fun so you're not just stocks and bonds.

Bobbi Rebell:
Yeah, and it's a great resource, especially because we're heading into the end of the year, and there's a lot of changes, and you mentioned the tax law, so you're a great resource as a Certified Financial Planner to check out for all of that. And just before I let you go, one last thing, share with us your social handles so people can follow you.

David Rae:
Yes, on Twitter I'm DavidRae, R-A-E, CFP. On Instagram, I'm DavidRaeLA, and on Facebook it's David Rae CFP as well. So check me out.

Bobbi Rebell:
Thank you, David.

David Rae:
Thank you.

Bobbi Rebell:
Okay. For all the talk about delayed adulthood these days, the truth is, there is still a stigma with having roommates as not being a very grown up thing. But, being a grown up means making adjustments and being real when you need to. Life's complicated, things get messy, and there's a lot of unpredictable stuff that we can't always be fully prepared for. So we have to be ready to make changes and go with the flow a little bit. Sometimes things just kind of happen.

Bobbi Rebell:
Financial grown up tip number one, do what you have to do to stay on track with your financial goals. David took on roommates. It wasn't so bad, in fact, he had a pretty good time with it. I moved back in with my parents when I got a divorce early in my adult life. I sold the tiny one bedroom apartment that I had owned, regrouped for a year, saved money, and moved out. Stronger financially, and also just like David had a good time with his roommates, it was kind of nice getting to know my parents as an adult.

Bobbi Rebell:
Financial grown up tip number two, if you see the financial train wreck coming down the tracks, and you know it's coming guys, you can see it, get a plan together fast. Don't assume things are just gonna fix themselves or you can just bury your head in the sand. They're not gonna go away so easily. Even if your plan isn't perfect, just have some kind of plan. Do something. You can adjust it later. But denial and procrastination like David said, just too expensive. You deserve better.

Bobbi Rebell:
Thanks to everyone for your continued support. If you have not, please subscribe to the podcast. It's free. Go into the manual settings when you do it, and setup auto downloads so you don't miss any upcoming episodes, and of course, please tell a friend that you care about and who you think deserves to have a rich life.

Bobbi Rebell:
David Rae is such a wonderful role model for all of us. Thank you for helping us all get one step closer to being financial grown ups.

At 29 years old Tanya Van Court thought she had more than a million dollars on hand to change the world and live the life of her dreams. Until it vanished in a few hours. 

Tanya's money story:

Tanya Van Court:
I was 29 years old, it was in the first tech boom where all of the Silicon Valley companies had stock that was just rising uncontrollably. I happened to be one of the first 200 employees at a company in Silicon Valley that was doing extraordinarily well.

Bobbi Rebell:
What company?

Tanya Van Court:
The company was Covac Communications. Before any of the telephone companies or cable companies were offering high-speed data I had a great job, a meaningful job, and I had a lot of stock that went along with that job.

Tanya Van Court:
I got all this stock in Covac, and some of the stock I couldn't cash out yet, but a lot of the stock I could cash out. I could have sold that stock and went and diversified my portfolio and bought mutual funds, or invested it in many, many stocks, as opposed to having all of my eggs sitting in one proverbial basket. But I didn't, because it was literally the first stock I had ever known or owned-

Bobbi Rebell:
Wait, let's just back it up, so you were given, as part of your compensation, shares in this company. Did it go public? Where was this stock? Explain exactly what you were given, and how it was valued, and did you have opportunities to sell it?

Tanya Van Court:
Yes, I had opportunities to sell the stock, many opportunities. The company had gone public, and so I had the opportunity to sell the stock when the company went public, I had the opportunity ... not exactly when it went public, because we had a certain window. But that window had passed, and so I had many opportunities to sell the stock, but I had no idea that I should sell the stock.

Tanya Van Court:
The stock kept going up, and I thought, "Wow, this is great. The stock just doubled in the past six months. I should just hold onto it, and I guess it will double again."

Bobbi Rebell:
At its peak what was the value of this stock, and how old were you at that time?

Tanya Van Court:
I was 29, and the value of the stock at its peak was about 1.2 million dollars.

Bobbi Rebell:
At that time how did you feel?

Tanya Van Court:
You know, I was so excited, because since I came from a household of two parents who were elementary school educators, all I ever wanted to do was make a difference in the world. I knew that having that 1.2 million dollars in my late 20s was going to enable me to make different choices and different life decisions to help people and to give back instead of just working in corporate America and doing things that were kind of interesting to me, but weren't impactful to other people. I felt free, Bobbi. I felt really free and empowered.

Bobbi Rebell:
You're 29 years old, you have stock that on paper is worth 1.2 million dollars. What happened then?

Tanya Van Court:
The big Dotcom bust happened. Literally in hours stock just started to tank for company, after company, after company. I watched the stock literally go from being in the teens, each share was trading in the teens, to trading for less than a dollar. When I say less than a dollar it went from the teens to like .50 cents in the course of a few hours. Every bit of that 1.2 million was wiped away in a matter of hours.

Bobbi Rebell:
Wow!

Tanya Van Court:
Yeah.

Bobbi Rebell:
How did you feel then?

Tanya Van Court:
Then I felt stupid, I felt deflated, I felt panicked, depressed, it was almost as if you had 1.2 million dollars sitting in your living room, and you just left the front door to your house open and walked out and went to the park, right?

Tanya Van Court:
It was, like, wait a minute. I had been living this life and treating this money so casually, as if it would always be there.

Bobbi Rebell:
As you say, it was the dotcom bust. This was happening to everyone?

Tanya Van Court:
It was happening to everyone, and it's interesting, because while I suffered a tremendous loss with that stock that I could've diversified, what I still had was ... I still had a home that I owned, I had bought a condo, and I still had that. What I found with many of my colleagues who experienced that same bust, is that they had actually leveraged their stock to buy lots of other things, so they bought cars, and they bought multiple houses.

Tanya Van Court:
Because they had borrowed against that stock, once the crash happened, they then had to pay back the money that they had borrowed by going and selling off all of their assets, including the assets that they had come to the company with.

Tanya Van Court:
If they came to the company with a big million-dollar home in Silicon Valley that was passed down to them from their parent, or that they had worked really hard in a previous company to be able to buy, now all of a sudden, they not only lost all of their stock, they lost every other asset that they had, because they had to payback loans that they had made against their stock.

Tanya’s money lesson:

Oh my gosh. Diversify, diversify, diversify. Don't ever put all of your money into one basket. I don't care if that basket is a real estate basket, and you have found a hot, booming real estate market that's working really well for you, and so you're, like, "Let me just buy it."

More apartments here in X place, or more houses in X place, don't do that. Diversify your money. If you have found that your golden goose is a stock that is doing really well, don't do that. Diversify your money. You really have to weigh and measure your risk, and think about the worst case scenarios. If that particular company, if something happens to that company, if something happens to that area of town that you're investing in, and every asset you have goes under water, what happens to your entire portfolio?

Tanya's everyday money tip:

My everyday money tip is actually a money tip that kind of goes back to my time in college. I would always watch people who ... I don't happen to drink, but I would watch people who would do progressives. Where they went from one bar to another, or one restaurant to another, and progressively partied from one place to the next. Like, the party would follow them. Like, a group of people would go and they'd hang out in one place, and they'd do that for 20 minutes, and then they'd go and hang out at another place.

I thought, "Wouldn't that be fun if we did that just with our friends, and did it in order to swap and exchange stuff that we no longer needed at our respective homes." Look, we all look in our homes and we go, "There are 10 things here that I don't use anymore, that I don't need." If you happen to have kids there may be things that your kids don't use anymore, or your kids don't need. If you happen to be a sports fan there may be equipment that you don't use anymore. "Hey, I'm not golfing as much as I used to anymore."

There are things in all of our homes that we don't want or we don't need, and so it's a great way of getting together with five or six friends, scheduling it on a Saturday, and going to each other's houses where you put everything that you don't want in your living room, and it becomes a virtual shopping spree.

Bobbi Rebell:
I love, first of all, that it's social, and I love, also, it's always delicate, because when you want to gift to somebody something that maybe you don't need anymore it's an awkward thing to give them something that you don't want. Because it's kind of like, "Oh, you're giving me your leftovers." But if you just put it there and they can just decide to take it, then it takes away that sort of negativity and makes it a positive thing.

Tanya Van Court:
It absolutely does. I think it makes it a positive thing for everyone, like, you're super happy to get rid of it, but they're super happy to get it.

Financial Grownup tip #1:

One things Tanya mentioned that stood out is that, while she lost money that she had on paper, I know it still hurts a lot, others had leveraged against their stockings and lost so much more. In addition to her advice to diversify, we also want to be very careful when borrowing against actual assets. Do not over leverage.

Financial Grownup tip #2:

This holiday season take it a step further than what Tanya was talking about. Think carefully about the physical stuff that you are buying for other people, not just children. Unwanted gifts are a total waste of money. There are so many new ways that technology is allowing us to give differently. Apps like Goalsetter are great, especially for kids that have too much stuff. But when you want to send a physical gift, and sometimes this is even for business purposes, there are new services, like, GiftNow. That's my personal new favorite that I'm obsessed with.

Basically, the way that one works is that instead of a boring gift certificate you virtually send someone a specific gift from a retailer to their email, so you don't need their physical address, you don't have to send them an email asking where should I send this, who will receive it, blah, blah, blah. It opens in a virtual gift box, and they can select their size, so you don't have to be guessing. They can change the color, if you don't know what color they want. They can even exchange it all before it gets delivered, so you don't have the whole hassle of the return and all that stuff.

I just used it for my friends' baby's one year birthday. It was so great to not have to carry a gift to the party, not worrying about it getting lost in the pile, and to know that my friend could swap it out without me even knowing it, not worrying if she would hurt my feelings, if she didn't love the fabulous dress that I got her daughter.

Then again, you can never have too many little frilly little girl dresses, right? I'm sure it was a huge hit.

EPISODE LINKS

Check out Tanya's company GoalSetter here!

Tanya Van Court is on Shark Tank!

Follow Tanya!

Instagram: @tvancourt

Linked In: @Tanya Van Court

Twitter: @tvancourt

Follow Goalsetter!

Instagram: @goalsetterco

Twitter: @goalsetterco

Facebook: @goalsetterco

Learn more about GiftNow

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.

Guest co-host and shopping expert Trae Bodge joins Bobbi with her three rules that practically guarantee you will avoid amateur spending mistakes this holiday season.

At 20-years old, Lauryn Williams CFP® was the fastest woman in America, and suddenly faced some very grownup financial decisions. Lauryn shares how she put together a team of advisors including her coach and an agent, how they vetted different sponsors, and how she learned to get paid to run for a living. 

In Lauryn’s money story you will learn:

-Why one of the fastest women in the world chose to slow down and carefully make her financial decisions

-How much money a three-time Gold medalist really makes 

-What goes into an olympic sponsorship deal

In Lauryn’s money lesson you will learn:

-How keeping an open mind prepared Lauryn for the opportunity of a lifetime

-How to cope with money anxiety when making a big financial decision

In Lauryn's everyday money tip you will learn:

-The one person who will always save you money

-How to listen to others talk about finance with a grain of salt

In My Take you will learn:

-The number one question you always need to ask yourself before making a financial decision

-Why Certified Financial Planners need to be your best friend

EPISODE LINKS

Check out Lauryn's website here

Listen to Lauryn's podcast here

Follow Lauryn's company! 

Instagram: @worthwinning

Twitter: @worth_winning

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

Lauryn Williams:
And so you can put the Adidas contract next to the Nike contract, next to the New Balance contract, et cetera, et cetera, and see one is offering a higher salary but the other one is offering a lower salary but is also going to pay for your school. Which I had one semester of school left when all this was taking place and that was really important to me, that I be able to finish my education and finish it for free.

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:
Hello, my financial grownup friends. That was fellow Certified Financial Planner, Lauryn Williams. Her company, by the way, is called Worth Winning. She also just happens to be a three-time Olympic medalist, the first American woman to medal in both the Summer and the Winter Olympic Games. Lauryn was a track star and then just kind of decided to get into the bobsledding thing, because why not, and of course she won a medal there to. By the way, she's a four-time Olympian. And Lauryn not only is a CFP, she is an MBA, she has an MBA in Finance. Talk about a role model.

Bobbi Rebell:
So welcome, everyone. So glad you are investing the time. And for those of you that are new to the Financial Grownup podcast, we try to keep it short, about 15 minutes, because we know how busy you are. But if you have a little more time, feel free to stack a few episodes together. Let's get right to Lauryn, I met her through our mutual friend, Jamila Souffrant, of the Journey to Launch podcast at Podcast Movement, where else, this past summer. And immediately I adored her, I know that you will too. In addition to all of the accomplishments that I just mentioned, and many more, she's just the coolest and most lovely person, and also a fellow dog lover. Here is Lauryn Williams.

Bobbi Rebell:
Lauryn Williams, you're a financial grownup. Welcome to the podcast.

Lauryn Williams:
It's so good to be on. Thanks for having me, Bobbi.

Bobbi Rebell:
And I'm so excited to have you because not only are you a four-time Olympian, the first woman to earn a medal in both the Summer and the Winter Olympics, you get the biggest gold star from me because you're an actual CFP, Certified Financial Planner. So, so great to have you, Lauryn.

Lauryn Williams:
It is really good to be on the show. I'm looking forward to telling my financial story today.

Bobbi Rebell:
I do want to just mention, you also are a financial professional, you are the real deal. Your company, Worth Winning.

Lauryn Williams:
Yeah. I started a company to be able to help young professionals, people specifically in their 20s and 30s, organize their finances because I felt like there was such a big gap there. During my career as a professional athlete I had some advisors that didn't do a good job for me, and it was mainly because they didn't get what I needed at that age. So my company is specific to helping young professionals organize their finances.

Bobbi Rebell:
And we'll give all the information for that. And by the way, your podcast, Worth Listening, after your money story. But we want to get to this because this is really a unique perspective into the world of a money-savvy athlete. Because when you were in college, just 20 years old, you won a very big, big race and that brought you to a big financial milestone in your life. Tell us your money story, Lauryn.

Lauryn Williams:
Yeah, so I was a junior in college at the University of Miami, having a blast. Made it to nationals my freshman and my sophomore year, but didn't have success. So on my junior year, I was on a tear. What do I need to do to win this national championship, I wanted to be the fastest girl in all of college. And I did, I achieved that. I ran the fastest time that day, won the race. It also happened to be the second fastest time in the world, for the whole year.

Bobbi Rebell:
Just happened to be.

Lauryn Williams:
Just happened to be. And it was 2004, the Olympic year. So immediately I had to turn my focus from this one goal that I had of wining college nationals to, oh my goodness, America is counting on me to go to the Olympic trials a month from now and win that thing and represent Team USA.

Bobbi Rebell:
But also, there was a money element to this.

Lauryn Williams:
Exactly. So immediately after running that time I started to be approached by agents and they started approaching mostly through my coach. She was kind of the middle woman and she just had to sit me down and say, "Lauryn, as much as I'd like you to stay in college, I think it's going to be more lucrative for you to leave school. And the first part of that process if for you to get an agent."

Bobbi Rebell:
Right. What happened was you were being approached by a bunch of companies who wanted to sponsor you.

Lauryn Williams:
Exactly. So, with track and field, the shoe companies are usually the main way that we earn a means of income. So it's not a situation where you earn a W3 employment somewhere with Team USA and then you get this as extra. If you don't have a sponsorship, you don't have an income and you're not really a professional athlete. That was the main thing, so I had to decide which shoe company I wanted to go with, which contract was going to be the best. And the agent helped a lot with putting in the restrictions and the bonuses and making sure everything was really good.

Bobbi Rebell:
Right. So let's take a step back. You finish the race, what happens then? Does a shoe company just call your mom? How do they first get in touch with you? Break down exactly what happens and, if you feel comfortable, who was approaching you and how they value an athlete early on.

Lauryn Williams:
Yeah. So the shoe companies are there at the meet, they're walking by you, they're shaking your hand, telling you good luck, we'd love to talk to you. And you don't have any long conversations in that moment, you just have kind of shorter ones. And then, like I said, my coach was very protective, made sure that first step is to get an agent, find someone that you trust, and let those shoe companies go through the agent instead of you having to talk to them directly. Because they're trying to woo you and tell you all these great things, but really it's going to come down to what's on that pen and paper and whether or not we should sign that. So we've got to get someone that's a professional, that knows about these contracts, in order to get the information we need. So that was the first step in the process really.

Bobbi Rebell:
So your coach guided you in choosing an agent. And what was that conversation like? Were you just swarmed by agents? How did you vet the agents?

Lauryn Williams:
I had to make a list of questions. I had to find out what I was looking for, what do I need from being a professional athlete, what can I expect from you? Because I'm 20 years old, I'm not even legally a grownup grownup yet. I'm going to need your guidance but I also know that I'm hiring you and you're going to make a living from this. So what can I expect from the money that you'll be paid to provide this service to me? And in track and field, an agent takes 15% of whatever they get for you, and that's a pretty hefty chunk of change. It's not 1% or 2% like it is in the other professional sports, so you'd better make sure that it's somebody that you trust and that's going to be making the best earnings for you so that they too, in turn, can earn.

Bobbi Rebell:
Wait, is that true? So in track and field they take 15%, what sports do they take only 1% or 2%? That seems really low.

Lauryn Williams:
Pretty much the big three sports. So the Major League Baseball, National Basketball Association, NFL. All of those have much lower percentages, but they also have much higher earnings.

Bobbi Rebell:
Fascinating.

Lauryn Williams:
Yeah, our income fluctuates quite a bit in track and field. And so, for me, I was at around $200,000 as a 20-year-old. Like you said, fastest woman in the world in 2004. With, like I said, different bonuses and prize bonuses, if I ran a certain time I could get a bonus, if I won the Olympics I'd get an increase in salary. All those different sorts of things had to be negotiated.

Bobbi Rebell:
All right. So let's back it up a little. So you get the agent, then what happens? Did you just get a pile of offers and you just picked one? How did it work? Were there other factors? Was it just money? What kinds of things were you seeing, as a 20-year-old just getting these first money offers?

Lauryn Williams:
Yeah. So the agent comes to me kind of with a summary of here's what Adidas is offering, here's the salary, here's the bonus structure, and here's the ... You know, he was just going with the main things. Of course, you know, the final contract is 20 or something pages long, but the initial part is just here's a summary of what it is. And so you can put the Adidas contract next to the Nike contract, next to the New Balance contract, et cetera, et cetera, and see one is offering a higher salary but the other one is offering a lower salary but is also going to pay for your school. Which I had one semester of school left when all this was taking place and that was really important to me, that I be able to finish my education and finish it for free.

Bobbi Rebell:
And so you went with Nike. What were the factors that made that the winner for that first sponsorship endorsement deal?

Lauryn Williams:
Ultimately it was, like you said, the schooling was one of the big keys for me. Because, like you said, education was not optional. So for them being willing to support me, one, financially with a really good salary, then also pay for my education, they had a really good prize and bonus structure that if I did in fact run fast I would be compensated accordingly, which I thought was very fair. Every year that I won, I got a nice rollover or a nice salary increase. It was the most lucrative of the different contracts that were offered.

Bobbi Rebell:
Tell me what was your feeling when you signed that first contract. Did you have a new sense of financial security when you signed with Nike, at age 20, for $200,000?

Lauryn Williams:
As a finance major, I think my biggest feeling when I signed that contract was anxiety. It's like you've been given a really cool opportunity, don't blow it. And so the first thing I wanted to do was go and find a financial professional to help me, because I knew even though I was a finance major that I didn't have what it took just yet to be able to organize such a large amount of money that I'd never seen before, no one in my family seen before. It was excitement but mostly anxiety.

Bobbi Rebell:
What is the takeaway for our listeners from your story? From signing that first big contract at age 20?

Lauryn Williams:
I would say the takeaway is you never know when something really awesome is going to happen, when that windfall is right around the corner, but it's really about being prepared all the time. When opportunity knocks, be ready to answer the door and be prepared to take life at whatever it is, because it can immediately change. And my life changed overnight, I was a broke college student to hundred-thousandaire. Literally overnight.

Bobbi Rebell:
Amazing. All right, let's get your everyday money tip, because this also relates back to those early experiences and some good habits that you learned early on.

Lauryn Williams:
Yeah, I would say everyday money tip, make sure you have questions for whatever it is that you're going through in life. Whether it's hiring a financial professional, an accountant, an agent, when you're talking to your friends, ask questions. It's so important to be pulling information out of others as opposed to just taking the information as being fed to you. I found frequently during my career that people would give me information and they were only giving me the information they wanted me to have, and that ended up being catastrophic in a lot of different situations. So really having the ability to ask questions, look for red flags, and educate yourself in all aspects of life is the most important everyday money tip that I think your listeners need to hear.

Bobbi Rebell:
Wonderful. Tell us a little bit more about your business now. So you did have some tough experiences with financial advisors and you've talked about that widely, that really helped pivot your career when you moved away from full-time being a professional athlete into being a full-time financial advisor.

Lauryn Williams:
Yeah, I just had to find a way to fill the gap. Like you said, there was so many basic things, from budgeting, to understanding first-time home purchase. I needed help with just those basic things and I realized that as young professionals, there's a gap in the industry. There's these big wealth managers that require you have at least a million dollars before you can get help and then there's these other guys that sell you crappy products. And I was like we deserve something better, we deserve just unbiased advice that could help us build wealth, sort through our student loans situation, sort through the financial basics so that we can get on the right track. And that's how Worth Winning was born.

Bobbi Rebell:
And what inspired you to become a CFP and not just a financial advisor? Because you don't have to be a CFP to do this.

Lauryn Williams:
You don't have to be a CFP but I feel like it's the standard. I wouldn't go to someone who said, "I read medical books all the time, so certainly I can perform this surgery on you." Yeah, you may be really smart, but I'm going to go with a doctor that's actually been to medical school. And CFP to me is the same sort of standard, where you've gone through rigorous education, you've gotten a certain amount of experience, you've taken a hard, hard, hard exam, and you're held to a level of ethics that is not what the whole industry is held to right now. So it was really important to me to be able to put that seal of approval and that stamp on, to be able to say I'm competent to serve people and do my best job for them.

Bobbi Rebell:
Awesome. Where can people find out more about your and Worth Winning, and Worth Listening, your podcast?

Lauryn Williams:
Yes. Worth Winning is worth-winning.com and the podcast is worth-listening.com. And you can get to Worth Listening by going to Worth Winning, so I'd love to have you go and check out my website and see if something there rings true with you.

Bobbi Rebell:
And your social channels, you have a great following, by the way.

Lauryn Williams:
Oh, thank you. @worthwinning on Instagram, @worth_winning on Twitter. And then if you're looking for me, Lauryn Williams the Olympian, you can do lauryncwilliams on Instagram, Twitter, and you can find me on Facebook as well, by typing in either of those.

Bobbi Rebell:
Awesome. Thank you, Lauryn.

Lauryn Williams:
Thank you.

Bobbi Rebell:
Hey, everyone. Love Lauryn's story, because it's such a different world. I mean, can you imagine being a star athlete and being offered hundreds of thousand dollar contracts when you're 20 years old, out of the blue, and all the responsibility that comes with it? I love the fact that she came out so strong and then it became such a great foundation for building her Worth Wining financial advisory business, and her Worth Listening podcast, which everyone should check out. Lauryn is a wonderful role model.

Bobbi Rebell:
Financial Grownup tip number one. Lauryn talked about asking a lot of questions and having your list. Okay, I want everyone listening to always have one question at the top of that list, no matter what you are buying, financial services or otherwise, how do you get paid? It's very important to know, is someone being paid a flat fee or are they being paid on commission. Now, there's no right or wrong answer, as long as you're comfortable with the answer. Generally, it's nice for financial services to go to somebody who's not being paid on commission because you know that they're seeling you, in theory they should be selling you, what is best for your needs. If it's commission-based, they may be selling you what gives them the best commission and you never really know.

Bobbi Rebell:
So it's important to know how they're being paid. But remember, this is the financial services industry. In many other industries the general rule is that commissions are often the preferable way to be paid. For example, think about travel. Very often someone that helps you set up a trip is getting a commission and most people are okay with it being paid that way, as opposed to paying them a separate fee, although it can be done that way as well.

Bobbi Rebell:
Financial Grownup tip number two. You may have noticed that I was fawning all over the fact that Lauryn is a Certified Financial Planner. It is a big deal. When you give your money to someone, you need to know that they are qualified, that you can trust them. And I can tell you, that as a Certified Financial Planner myself, we are what is called fiduciaries. And that means that we have to work with you to find whatever solution is in your best interest, not just what is suitable. Fiduciary, big word, very important word, but pay attention to it.

Bobbi Rebell:
Thank you all for your support. If you have a financial question, a money question, or just a question about what goes on behind the scenes here at Fin aical Grownup that you want answered on one of our bonus episodes, we are taking listener questions. So just DM it to us on any of the social channels. On Instagram @bobbirebell1, on Twitter @bobbirebell, or you can also just email it to us at hello@financialgrownup.com. That's hellow@financialgrownup.com. And thank you to Lauryn Williams 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.

Boreland Group Founder and CEO Jennefer Witter learned early on that the best way to get clients was to offer extreme value. But to stay in business, and continue to serve the clients, the author of the Little Book of Big PR also learned when to put the brakes on the discounts. 

In Jennefer’s money story you will learn:

-How to utilize a current network to create a new one

-Why Jennefer values transparency with her clients and how it helped her build a business

-Ways to find out what to charge new clients

In Jennefer’s money lesson you will learn:

-How to create meaningful relationships with new clients

-Three ways to look at the return on investment

-Why Jennefer always sets a definite stop date with her clients

In Jennefer's everyday money tip you will learn:

-The one question Jennefer asks that saves her small business big bucks

-Why it's good to be aggressive in business negotiations

In My Take you will learn:

-Take an angle that makes you eligible for discounts

-Why sometimes working for free has the biggest pay off

Bobbi and Jennefer also talk about:

-Jennefer mentioned that she gets a small business discount for ProfNet, which helps her public relations company get leads

EPISODE LINKS:

Jennefer's book is available online here

Check out The Boreland Group's website here

Follow Jennefer! 

Twitter: @JenneferTBG

Linked In: @Jennefer Witter

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

Jennefer W.:
It was a six month program, and yes I invested, when you added up over $10,000, but what I got back through that $10,000, was multiples in return.

Bobbi Rebell:
You are 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 okay. We're gonna get there together. I'm gonna bring you one money story, from a financial grown-up, one lesson, and then, my take on how you can make it your own. We got this.

Bobbi Rebell:
Hey, financial grown-up friends. Every business, or pretty much every business, I would think, starts as a start-up, and every business has to get that very first sale, and that very first client, and to make it happen, in most cases, that first client, that first sale, the business owner has to be willing to lose money on the bet, that they will win over that first client, and build from there, but many businesses make a mistake, in that, they don't really set the expectations right, and then when they do have to raise the price, so that they can actually make money, they get backlash, because the client's expectations were not aligned with the realities of the business.

Bobbi Rebell:
Our guest, public relations whiz, Jennefer Witter, who is the head of, The Boreland Group, and by the way, literally, wrote the book on PR. It's called, The Little Book of Big PR, was careful in her approach at that delicate start-up stage, and it has served her well.

Bobbi Rebell:
Welcome everyone. We have a lot of new listeners, that we are very excited about. The show's are short, about 15 minutes, because you're busy, but of course, you can binge, stack a few together. Maybe if you're commuting, have a little more time to listen. Consider it flextime for podcasts, and with that, let's get to our amazing guest. Here is Jennefer Witter.

Bobbi Rebell:
Hey, Jennefer Witter. You are a financial grown-up. Welcome to the podcast.

Jennefer W.:
I am so thrilled to be on, Bobbi. How are you?

Bobbi Rebell:
Well, I'm excited to finally snag you. You are one busy lady. You are, the CEO and Founder of the boutique, Boreland Group, and you're also the author of a book that I loved reading, 'cause I'm kind of on the other side of it. It's The Little Book of Big PR, which is awesome, and it really is a little book.

Jennefer W.:
It's a tiny little book. It's a paperback, softcover. You can also get it as an e-book, and I wanted it to be little, because you know what it's like as an entrepreneur.

Bobbi Rebell:
Yeah.

Jennefer W.:
You have some things on your desk. You have to do this. You have to do that. You don't want to be reading, War and Peace.

Bobbi Rebell:
No.

Jennefer W.:
So, with the full book of Big PR, the full title is, The Little Book of Big PR: 100+ Quick Tips to Get Your Small Business Noticed, is you can read a chapter here, a chapter there, or you can read it all at once, and it will not take you more than a couple of hours to read it, and you walk away with information that you can readily use in your business practice.

Bobbi Rebell:
Love that, and you are an entrepreneur. Your business has grown, but when it first started, you had to make some difficult choices, and we always say, "Don't undervalue yourself. Don't give away services for free, but it's kind of complicated." Tell us your mini story.

Jennefer W.:
Well, here's the thing. When I first started The Boreland Group, it was 15 years ago. I really didn't think about becoming an entrepreneur. So, when I decided to do it, it was just like, "You know what? I don't have clients. I don't have any income coming in."

Jennefer W.:
So, I reached out to everybody that I knew, and I said, "Do you know of somebody, who is looking for a boutique public relations firm?" And I got one response back, after sending out like 200 emails, and it was a friend of mine, and he said, "I have a friend, who's sister-in-law is looking for a publicist." And when I met with her, she did not want to pay what I was charging at that time, and so, what I decided to do was invest, because I only was going to have one client, and I knew that once I got that one client, once I got that chance, I would have those doors open.

Jennefer W.:
So, what I did was, she paid me [crosstalk 00:04:20].

Bobbi Rebell:
Wait. Let me just stop you there. So, you say what you were charging, but the truth is, you were charging no one because you had no clients.

Jennefer W.:
No. No clients.

Bobbi Rebell:
This was your first client. Right. So, you had an idea of what you wanted to charge, but you didn't have a rate that you were getting. So, you needed to start building your client roster.

Jennefer W.:
Oh, absolutely, and so what I did with this one client was, and I'll give everything as transparent. I charged her $1,800.00 a month. One thousand, eight hundred dollars, and then, I invested another $1,800.00 into her. So, it normally would have been $3,600.00, but I was only getting back $1,800.00.

Jennefer W.:
Now, you may say, "You're giving away your services." And I absolutely was, but I knew that once people saw what I was doing, getting her into the media, getting her speaking opportunities, that I would be able to build upon this client that I had, into a client portfolio, and after [crosstalk 00:05:16].

Bobbi Rebell:
Was this client, Jennifer, let me ask you, was she aware? Did she really only have budget for $1,800.00, and was she aware that she was getting, quote, double the value of what you felt you should be paid?

Jennefer W.:
Oh, she was absolutely aware, and what I told her was, for this first six months, I would charge her $1,800.00, and at the end of the six months, it would go up to the $3,600.00. So, she was fully aware, and I wrote a program, and I said, "This is what you're going to get overall." And I said, "This part you're going to be paying for. This part is what I'm investing in." And I put together a plan, that was very tight, because you have to be careful about such things. You don't want to say, "I'm going to give you $1,800.00." And you wind up giving somebody $5,000.00. You definitely need to have parameters, that you don't sink yourself before you swim, and once I started to do that, and then I started leveraging, and I'd say, "I have this client. This is what we're doing."

Jennefer W.:
When I was meeting with the media, some of the media saw what I was doing, and they sent some direct clients over to her, and at the end of the six months, I did a new program for her at the full price, $3,600.00, and she knew that it was coming. She saw the work that I was doing. She appreciated everything that I was doing, and more than that, she saw the value. She signed the account. I got paid the $3,600.00. I had other clients, who were paying that amount, and my business was based on an investment, that I knew would pay off in the long run, and it did.

Bobbi Rebell:
And what is the takeaway for our listeners? Among young people, there's a lot of talk coming up in business, that it's really important to be aggressive with your pricing, and not undersell yourself.

Jennefer W.:
You know, I wasn't underselling myself, and you have to want to give, in order to get, and when you have zero clients, and you have the opportunity to get a client, who you know will be the foundation of growing your business, you need to take that step, and you need to invest, and know that at the end of that six months, or whatever timeframe you're going to get your money back. You have to look at the big picture. You have to be long term, and you have to look at that ROI, the return on investment. It can't stretch out forever in eternity.

Jennefer W.:
You need to have a definite stop date, which is exactly what I did with this client. It was a six month program, and yes I invested, when you added up over $10,000.00, but what I got back through that $10,000.00, was multiples in return.

Bobbi Rebell:
That is a great story. Let's talk about your every day money tip, because it also pertains to when you start a business, and you're the small guy, you still need to have the tools, that the big guys have, but they are expensive. So, you have a tip on how you can save, if you are an individual, or a small boutique business, and you have to be assertive about it. Go for it.

Jennefer W.:
Oh, absolutely, and what you need to do, this is what I did. I am a small business. I've always been a small business, and whenever you're going out for products and services, if it's expensive, you know you have to use it, but tell them, "You know what? I'm a small business. Do you have a small business discount? What can you give me? I'm not the Edelmanns, or the Ketchums of the world. I'm not pulling in like $30-$40 million a year. I'm pulling in a fraction, but what I am is a client, and there's more of me than there are of the Ketchums, and the Edelmanns, and the large corporations."

Jennefer W.:
So, if you go out there, and you are aggressive, if you are forceful, and you say, "Look, I'm a small business. I'll be a loyal client. Give me that discount, that I know that you can give me." Let me tell you, it works.

Bobbi Rebell:
Just so our listeners who aren't familiar, you were referencing large public relations firms, 'cause you are in the public relations business. So, can you give us a tangible example, of something that you bought when you were starting out, or buy now, and approximately what it would cost for a large business, and approximately what it would cost for a ... how much you can get a discount from, from sort of the list price, so people have an idea of how much you can ask for?

Jennefer W.:
Sure. One of the services that I use is called, ProfNet, and it's specific to the PR community. What it is, you get pushed about 100 leads a day, and you go through them seeing which ones are, that you can respond to. It's from reporters. It's from producers. They're looking for interview topics for the stories that they are writing or producing.

Jennefer W.:
For large companies, it's several thousand dollars a year. I'm not exactly sure. Like $3,000.00 or $4,000.00, and by making it clear, and asking for a discount, and saying that I am a small business, I got it for less than $1,000.00 a year. So, right there and then, I was able to save about, over $2,000.00, that I would have paid ordinarily, if I had not spoken up and say, "Hey, I'm a small business. I'm a solopreneur. What can you do for me?" And it worked, and I saved a lot of money, because of that.

Bobbi Rebell:
Where can we find you, and find out more about you?

Jennefer W.:
Well, you can always find me on Twitter, which is J-E-N-N-E-F-E-R-T-B-G. You can go to my website, which is The Boreland Group dot com. B-O-R-E-L-A-N-D Group dot com, and I'm on LinkedIn, and again, my first name is spelled funny. It's J-E-N-N-E-F-E-R, and the last name is W-I-T-T-E-R. No h.

Bobbi Rebell:
Is there a story behind the spelling of your name?

Jennefer W.:
You know what? I wish. I just think it was a nurse, who spelled it incorrectly. Both parents deny spelling it with the e, and it's on my birth certificate, so it got there some way.

Bobbi Rebell:
That's so funny. Okay. Love that, but it sets you apart. So, there you go. We're all unique in our own way. Thank you so much, Jennefer, with an e, Witter. This was amazing. Thank you.

Jennefer W.:
Thank you, Bobbi, with an I.

Bobbi Rebell:
Okay, Friends. Alright, let's get right to it. Financial Grownup Tip Number One: Jennefer does a great job asking for discounts, because she is running a small business. That is the angle that she uses. So, think about what your angle is. There's countless ways for you to get a better price, or a better deal in some way, on just about anything, work or personal. You gotta find your angle.

Bobbi Rebell:
One of my favorite ways to get a discount on something that I need, for example, for my business, but don't want to pay the full price, or can't afford the full price. Maybe it's not in my budget. I say that. I just reach out and say to the vendor, "That's just not in my budget right now. Will you be in touch, if and when you have something that's an alternative to the offering, or maybe you can offer me a price reduction, an option that can work within my budget?"

Bobbi Rebell:
I have always gotten a response, and in almost every case, we've been able to work out a way for me to become a client, because ultimately, that's what they want. They want to get you in to their system, as a client, at some level, and then hopefully, later on down the road, they can increase how much you're spending, because you'll see the value in the product.

Bobbi Rebell:
Financial Grownup Tip Number Two: So, here's the flip side of all that. The most important part of Jennefer's money story, isn't that she lowered the price for her client, or did some of the work for free, however you want to look at it. To get a new client, it's that she had a strategy to end it. Expectations were set right at the outset. So, let's just say, you're on the other side of the business that I just talked about, where you had a business owner like myself coming to you saying, "It's just not in my budget." And you work out a deal to get me onboard. The important thing is to set expectations to say, "Okay, we're gonna do this for one year, and then, in a year when you see the value and hopefully your business is doing better, and your budget would have increased, you're gonna come in at the regular price." And they're hoping, that I, the business owner, will see the value.

Bobbi Rebell:
So, it's important, as Jennefer did, to work with clients when they need you to work with them, but also have them recognize that they are getting something of value, that maybe they're not paying the full price for, and that the expectation is, down the road, the price will meet the level that it needs to be at, for the business owner to sustain their business, because at the end of the day, if you enjoy doing business with somebody, you like their product, you want them to stay in business, and to do so, you need to make a profit. All good things.

Bobbi Rebell:
Another great thing. If you enjoyed this podcast, let a friend know. Help us grow the show. Also, share it on social media. On Twitter, I am at Bobbi Rebell. On Instagram at Bobbi Rebell One, and DM me with your feedback. A lot of you have been doing that, and it's really great for me to hear which episodes really resonate, and what you want to hear more of, and maybe what you're not that into. That's okay too.

Bobbi Rebell:
I love hearing all of it, and as I have mentioned on previous episodes, we are now gearing up to do bonus episodes, which will include listener questions. So, send them in. You can DM me on the socials that I just mentioned, or you can email me them at, hello at Financial Grownup dot com. That's, hello at Financial Grownup dot com.

Bobbi Rebell:
I am such a fan of Jennefer's. She has so much to offer. Do check out her book, The Little Book of Big PR, and of course, The Boreland Group, and thank you, Jennefer, for helping us all get one step closer to being financial grown-ups.

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

In Jerry’s money story you will learn:

-How Jerry learned the hard way that looking like you make money doesn't mean you do

-Three ways to deal with difficult people in the work places

-The benefits of having a career mentor

-Why Jerry sold all of his cars and his motorcycles and what it did for his budget

In Jerry’s money lesson you will learn:

-The simplest way to figure out financial assets and liabilities

-Jerry's two tips for figuring out where in the budget to cut down on spending

In Jerry’s everyday money tip you will learn:

-Where to buy luxury brands like Nike and Adidas for less

-The best athletic clothes that will last a long time

In My Take you will learn:

-Why it's important to keep an open mind and look past first impressions

-What T.J. Maxx, Marshalls, and other retailers have to offer when it comes to workout clothes

Bobbi and Jerry also talk about: 

-Check out the luxury athletic clothing brands we mentioned, Nike and Adidas.

EPISODE LINKS:

Order Jerry's book "Guns, Drugs, or Wealth" here

Follow Jerry!

Instagram: @realJerryFord

Twitter: @realJerryFord

Facebook: @realJerryFord

On this Financial Grownup podcast episode Jerry Ford helps us to learn how we can get the best deals on work out clothes. #Podcast #MoneyTips

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

Jerry Ford:
I sold all of my cars, all of my motorcycles. I paid off my credit cards. I spend three hundred dollars a month on Uber pool and that's cheaper than any car note that you can get. And I set a seventy dollar budget for food per week.

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

Bobbi Rebell:
Hey financial grown up friends! Love this guest because Jerry Ford, who you'll hear from in just a few minutes, is just a little bit different from the typical guest that we have on here, in that he is not from a money expert background. In fact, he's a celebrity fitness guy, and he came to being a financial grown up really after he had money. And then he realized that he wasn't actually using all that money and there was a good amount of money. He wasn't using the money in a very grown up way, and some really scary things could have happened but fortunately he found a mentor that took him under his wing and set him straight before things went really down hill.

Bobbi Rebell:
Welcome everyone. Thank you for investing your time in yourself and in learning from the high achievers that we have on the show. If you're enjoying it, remember the show is free. All we ask is that you help us grow the show by paying it forward and telling a friend that you think might enjoy the show.

Bobbi Rebell:
Let's go to our guest. Jerry Ford is a celebrity fitness trainer turned author. He overcame intercity poverty, violence, personal tragedy, to get where he is today, which is pretty incredible when you hear his story. His book and this title kind of threw me off when I heard it and then when I understood what it was about I had to have him on the show. His book, "Guns, Drugs or Wealth" is riveting. Its very candid and I'll bet its unlike anything you've read before. And I want you guys to stay till then the end, we have a big give away. Jerry sent me three signed copies of his book. I'm gonna share details after the interview about how you can win them. Here is "Guns, Drugs or Wealth" author, celebrity fitness trainer, Jerry Ford.

Bobbi Rebell:
Hey Jerry Ford, you are a financial grownup. Welcome to the podcast.

Jerry Ford:
Hey, thanks for having me.

Bobbi Rebell:
Congratulations are in order. We are taping this before your book has even been released, by the time this is out, your book will be out. But, your book “Guns, Drugs or Wealth” the three income secret to success that took me from the streets of Detroit to the top of my game, is already a number one new release from Amazon and sure to have many more bestseller benchmarks in the weeks to come. So, congratulations.

Jerry Ford:
Thank you, I'm really excited.

Bobbi Rebell:
And were gonna talk more about the great information in the book, including different investing like real estate, stocks and the importance of earning and saving, after your money story, which is about, you're also a trainer I should say out there in L.A. where you are..

Jerry Ford:
Yes.

Bobbi Rebell:
It is about a client that you didn't start off great with, but ended up being a mentor. Maybe this is a little about not judging people on first impressions and being open to people that maybe are very different from you. Go for it.

Jerry Ford:
Yeah, you know what, that's true. So I was twenty-three years old. I was really young. I was working at a gym called The New York Health and Racket Club, and I was by far their superstar trainer. I was young. I had Rolexs, fancy cars. I thought I knew it all.

Bobbi Rebell:
Wait, wait, wait. How are you buying this Jerry?

Jerry Ford:
You know what, I was top five in this company. This really luxury company called New York Health and Racket Club. And I was one of their top level trainers, I was training maybe two hundred and ten hours a month. Each session after you get bonus, after hitting a certain amount of hours that is unreal, I made maybe a hundred and ten dollars a session.

Bobbi Rebell:
And how many sessions a week?

Jerry Ford:
I was doing maybe two hundred and ten sessions a month.

Bobbi Rebell:
So they give you a new client and what happens?

Jerry Ford:
So now I'm thinking, you know, this client wants to work out six days a week. And he was calling two sessions, every session. So this guy was paying me double for every session.

Bobbi Rebell:
How old was he?

Jerry Ford:
This guy at the time was about fifty years old. This was maybe seven to ten years ago.

Bobbi Rebell:
Okay

Jerry Ford:
And I said this is gonna be a breeze. This is nothing. All this guy wanted was abs. I said this is gonna be more luxury items for me, because at the time I thought that if you look like money that people would spend money on you, which is true but you can't take that too far. Right, so. So, I stared training this guy and little did I know he was the biggest jerk that I've ever met in my life. I mean, he would tell me to explain everything we were doing in two seconds and like snap his fingers and tell me to go as if he was timing me for my response. I mean I would drive to work in the morning time playing scenarios in my head, like literally cursing this old man out.

Jerry Ford:
And so six months later he tried to convince me that a chest press didn't work the chest. So, I kind of, you know, popped him on the shoulder and firmly explained, how a chest press worked your chest, you know. And he kind of stood there and shook his head and said, “Okay, fine.” But at that time, it was almost as if he was done testing me. You know from that day forward, we became best friends, mentor, kind of like a father/son relationship, it was strange. We talked every day about everything.

Bobbi Rebell:
Wait. So, basically, he was waiting for you to push back.

Jerry Ford:
He was waiting for me to push back in a professional strong sense. Because we argue every day but he always enjoyed the fact that he got under my skin. So, he was testing me, waiting for me to push back in a certain way.

Bobbi Rebell:
And tell me what you learned from him.

Jerry Ford:
Everything. So before I moved to Los Angeles, he helped me build my portfolio. I mean to a “T”. He helped me gain a lot of passive income, and he taught me just everyday life lessons about being a businessman. So, when I moved to LA I was still the same, I started working at another gym, but I was training even more high end clients, I was training royal family members, celebrities, other taste makers. And then I got fired from Equinox. And when I got fired from Equinox I think that shook me out of being a superstar trainer for a corporation, for a gym.

Bobbi Rebell:
Why were you fired?

Jerry Ford:
I was fired for working out with one of my clients, which, when I first came to Equinox, Equinox was the gym, when I first came to Equinox because I had so many taste makers and so many celebrities and so many models back in New York I was able to work out with a lot of those people because, you know, models are at a certain level to where sometimes they don't want to you to train them and stand over them. They want you to work out with them. And in this case, a lot of my models, they were just a lot more when I worked out with them. I called Bill and I said, “Okay, very few people, make, one percent of the world make what you make. So, how did you do it?” And it was kind of silence over the phone and he was kinda like, “Oh, you gotta be good looking and the rest would flow.” It was like a joke, it was a joke, he's always joking. I'm like dude I'm not laughing, like how did you do it?

Bobbi Rebell:
Right, you're ready.

Jerry Ford:
I'm like ready to go and he's like, “You know what, when you gonna be in New York next? Well talk about it.” And I'm a all or nothing guy so I said, “Dude I'm hopping on the next plane to New York tonight.” So I went to LAX literally with nothing, I went to LAX, I hopped on a plane and went to New York on the red eye. The next morning, I went to Bill's house or his estate, he opened the door and literally I said, “Let's get to work. I need to figure out how you did this.” So he was like, “Oh cool your jets, and you know well talk about it.” So we ate some breakfast, we sat at the table, and he looked at me. And this guy, right now he's like a best friend but, he's your classical Wall Street fast talking, New York [inaudible 00:08:35].

Jerry Ford:
He says, "What's the difference between us?" I said, "No liability." And I'm thinking, man we've been over this so many times. And he's like "No, what's the difference?" And I explained how assets put money in your pocket and liabilities are obligations that they take money out of your pocket. And he says, "Exactly!" So then he did something that was life changing. He handed me a pen and a piece of paper and he said, "Okay. Write your assets down in one column and write your liabilities downs in another column." And literally I remember to this day, it was liabilities, rent, BMW payment, Porsche payment, motorcycle payment, insurance for all cars, AMEX credit card payment a month, Capital One credit card payment per month, phone bill, utilities, clubbing all weekends with royalty clients, shoes, watches, restaurants. It was terrible. And asset column was stock portfolio and personal training.

Bobbi Rebell:
Wow!

Jerry Ford:
And so he said, “I want you to reduce your liabilities and then come back to New York and we can get started.” So, I hopped on a plane back to LA. Bobbi, I sold all of my cars. I literally sold all of my cars, all of my motorcycles. I paid off my credits cards. I started to Uber pool, because I spend three dollars a month on Uber pool and that's cheaper than any car payment. I factor with car note and gas and occasional parking tickets, its cheaper than any car note that you can get. And I set a seventy dollar budget for food per week. After that I called Bill back, I said, "Okay, I sold everything. I'm ready to go". He thought I was nuts, but he could not deny that I was ready to build wealth. So he says, “Okay, are you gonna fly back.” I said, “No, due to the budget that I've set for myself, I'm calling you this time.”

Bobbi Rebell:
Alright, so what is the lesson for our listeners?

Jerry Ford:
So, the lesson for the listeners is, I suggest that everybody write down their liabilities and their assets. And, just you seeing them in the columns, you would then be able to say, okay I don't need this, I don't need that, I don't nee this. And I advise people to buy more assets and less liabilities. But, you have to see it on paper.

Bobbi Rebell:
Alright Jerry. What is your everyday money tip? Cause, you spend a lot of time in gym clothes. Is it really worth spending so much money on fancy gym clothes?

Jerry Ford:
Well you know what, you can go to some of these brands, so Nike and Adidas and all these luxury brands, places like Big Five have these same brands, but its just a lot cheaper. And, I wear gym clothes all day so I save a lot of money, right. And I wear gym clothes and then I throw on my luxury watch and luxury items and that makes me look a little more fancy.

Bobbi Rebell:
So, is it worth paying up for the more expensive work out clothes brands? I mean, obviously, if you're gonna buy them, you wanna buy them somewhere you can get a discount if that's possible. But, are they better?

Jerry Ford:
You know what, I think they are better, because I've taken Nike pants, Nike outfits, I've had them, and they've lasted longer than workout clothes from Target. You know, its kinda like, Oh you wash these clothes, and you wonder why they ripping up so much. It's because those luxury brands have better material.

Bobbi Rebell:
So they really are better.

Jerry Ford:
They really are better.

Bobbi Rebell:
Alright, lets talk about your already bestselling book. Tell us more.

Jerry Ford:
So, this book is about building wealth through real estate, stocks and smart spending. But, I tell it as a personal trainer, but more importantly, I tell it in laments terms, as more of a porch casual conversation.

Jerry Ford:
Its kind of like if Jay-Z and Warren Buffet came out with a how-to guide on building wealth. "Guns, Drugs or Wealth" would be it.

Bobbi Rebell:
And its inspired by your actual life.

Jerry Ford:
It is inspired by my actual life. Its inspired by my actual life, which is coming from Detroit, the hard streets of Detroit, and starting to build wealth like I did.

Bobbi Rebell:
And where can people find you, find out more about you? You have a huge Instagram by the way. Love those videos. I'm ready to go workout right after this interview just from watching those videos. So, everybody, go put on your fancy expensive gym clothes, cause they're apparently worth it, and go work out.

Jerry Ford:
People can find my on Instagram, Facebook and Twitter. And my handles are @realJerryFord.

Bobbi Rebell:
Jerry Ford, thank you so much!

Jerry Ford:
Thank you!

Bobbi Rebell:
Hey everyone, lets get right into it. Financial grown up tip number one. Be careful about judging people by first impressions. Sometimes even second, third impressions. Jerry basically wrote off his client because, okay the client was such a jerk but, sometimes relationships, including those with mentors or sponsors, they take time to develop. Because the two men spend a lot of time together and Jerry was willing to start listening instead of just putting up with his client the relationship changed. And Jerry came out a big winner.

Bobbi Rebell:
Financial grown up tip number two. Let's talk about the fancy gym clothes cause this is something I actually spend way too much time even thinking about. I go back and forth on this. I want to say its worth it to buy the clothes that will last for a decade or whatever. But at the moment that you are actually trying to purchase leggings that cost over a hundred dollars, that's just really hard to do.

Bobbi Rebell:
I recently finally bought one really expensive item, its actually a Lululemon jacket, but only because I had an expiring credit. And I still fell guilty about buying it even though literally I had to use the credit and it was a gift. Here's a work around if you want the best stuff but can't always get over the price. So, for most work out items, the only difference between the new stuff or last season's is the color or the pattern. So this goes for sneakers too. So, look for last seasons of whatever workout gear you want. Stores like T.J.Maxx, Marshalls and then all of these departments stores has these outlet versions, you have like Nordstrom Rack, Sax off Fifth, whatever is near you and they probably also have a lot of this stuff online, those places are great places to look. Also, the quote "We made too many of the fancy boutique brands", they often have last year's style, last season's style, usually just a different color that wasn't as popular. Go work out feeling like a million bucks and maybe be like Jerry and wear a fancy accessory with your workout gear, so you can feel fancy like Jerry.

Bobbi Rebell:
Alright giveaway time. So, friends what was your takeaway from Jerry? DM me your thoughts on this episode on the socials, BobbiRebell1@instagram, BobbiRebell on Twitter. And I'm going to be giving away the three signed copies of Jerry Ford's book, "Guns, Drugs or Wealth" to listeners. And, yes it is open to international fans. In fact our last giveaway winners, which were the Chris Hogan and the Rachel Cruze signed books, included one listener Barbara Olner in Austria. And don't forget that we are starting to do listener Q&A episodes with some of my money expert friends maybe making guest appearances. So DM me your questions as well or you can also email us at hello@financialgrownup.com, that's hello@financialgrownup.com. And that goes for the giveaways to. So, DMs or emailing hello@financialgrownup.com whatever is good for you is good for us.

Bobbi Rebell:
And thank you to Jerry Ford. Great motivation to get us all one step closer to being financial grownups.

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

Entrepreneur and Investor Barbara Corcoran explains why she believes spending money in a deliberate way even before you earn it is a smart business strategy, and shares the story of her first really big investment. And yes, she committed to it before she had the money.

In Barbara’s money story you will learn:

-How she bought her first house at age 29 (which had 8 bedrooms!)

-The importance of discussing big purchases with a significant other

-How Barbara saved $7,500 in three months

In Barbara’s money lesson you will learn:

-How she motivates herself to save money

-Why she chooses to ignore rational and take risks

-Her advice on committing to a goal

In Barbara’s everyday money tip you will learn:

-Why she spends money before she has it

-How she puts herself under pressure in order to produce financial results

In My Take you will learn:

-Why it's always good to listen to different opinions and take advice from successful people

-Two negotiation tips that will save you money and help your career

Bobbi and Barbara also talk about:

-Chef Boyardee and Ramen noodles, the quick dinner that helped save Barbara money and reminded Bobbi of her childhood

EPISODE LINKS:

Listen to Barbara Corcoran's podcast Business Unusual here, and on iTunes

Watch Barbara give more business advice on the multi-Emmy award winning show Shark Tank on ABC

Follow Barbara!

Twitter: @BarbaraCorcoran

Instagram: @BarbaraCorcoran

Facebook: @TheBarbaraCorcoran

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

Barbara Corcoran:
I always spend money I don't have. If I see money coming in new receivable, three months out, I committed that day, what I'm going to spend it on, and I start spending it even before it arrives.

Bobbi Rebell:
You are 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:
Hello, my Financial Grownup friends, brace yourself Barbara Corcoran is here and she is going to give it to us straight up, no beating around the bush and she said some things that frankly I was pretty surprised with. They go against almost everything that I've been taught about building a solid financial foundation for your life, for your business, but she made it work. I'm still not sure I could make it work for me, but I'm thinking about it because she makes a good case and I'm interested to hear what you guys think after you hear her interview.

Bobbi Rebell:
So glad you are here. As I said, this episode is a really big one, so if you're new, you're joining it a really good time. We do something by the way called flex time for podcast, the episodes are kept pretty short, around 15 minutes. The idea is no excuses you can always fit it in, make it easy for you while you're running a quick errand, what have you, but if you have a longer commute, you can also stack them. We have a library now of more than a hundred episodes so you can listen to a few on your commute if that's what worked for you. Make sure that when you subscribe and hopefully you are subscribing, we really need the support that you set the downloads, go into the manual settings and set it so that you automatically get the downloads so that you don't miss any and you're good to go.

Bobbi Rebell:
And we love automation because that way things just happen and it's one less thing to remember. Alright, let's get to Barbara Corcoran and you know her from Shark Tank and now she has a new podcast called Business Unusual, also really short, so that's a good thing. She gives a lot of advice that seems shocking until you listen to it and listen to her reasons and then think that is part of how Barbara Corcoran is successful. It's the unusual. She approaches things in a different way from the way that we're always used to approaching it and it works for her. It may not work for you. The big takeaway from this episode, which you'll see I'm going to talk about after her interview. I don't know if I could do it, but I can see how it worked for her. So with that, here is Shark Tank's Barbara Corcoran.

Bobbi Rebell:
Hey, Barbara Corcoran you're at Financial Grownup welcome to the podcast.

Barbara Corcoran:
Thank you. Pleasure to be here.

Bobbi Rebell:
I am such a fan of your new podcast. For many reasons, of course also because it's a short podcast, but you have the best wisdom and you share so many lessons from your life, so thank you for that.

Barbara Corcora:
My pleasure. I enjoy doing it, but it's a scary proposition as I'm sure you will know, you have to earn people's ears while you're talking to them.

Bobbi Rebell:
You do, well you've been earning it for many years and you're going to share a money story from early in your life, your very first real estate purchase or I should say your first house and it sounds like it's going to be a story, but there's something that happened that I think people want to hear. Go for it.

Barbara Corcoran:
Yeah, and it has a valuable lesson. When I committed to purchasing my first home with my first husband. I was about 29 years old. I didn't have a pot to pee in as they say, but we sat across the dinner table for a man who said he was selling a certain house that was like a magical house from what I heard, and my mouth said, I'll take it. And why it was magical. It was a house that anybody would think you could only dream about, which was a house with eight bedrooms two guest cottages, a wet and a dry boat house facing a brand new lake.

Bobbi Rebell:
Did you have kids at this point, Barbara?

Barbara Corcoran:
No, of course not.

Bobbi Rebell:
Who was moving into this mansion?

Barbara Corcoran:
Listen, I figured I'd have fun with friends, but I had no rights saying we'll take it to which my husband was more startled than I was over my own mouth. Because we didn't have a dime to our name, we were struggling to just meet our bills. We're still kind of kids coming up the ranks, but-

Bobbi Rebell:
Wait, so tell me what happened. How did you buy the house?

Barbara Corcoran:
Once I said we'd buy the house, we had the problem of coming up with the down payment, 7,500. And so my husband and I started eating tomato noodles every night that I think they're chef Boyardee or something in a can and bring them lunch every day and we saved every penny of what we were earning in our lives, short of the rent we had to pay for our studio apartment. Well, three months hence we had most of the down payment but not quite and we're out for dinner with the same big boss of his and he mentioned that his father, he wanted to close, which was putting ... Was scaring me to death because I still didn't have enough money.

Barbara Corcoran:
But he said his father was reluctant to leave the house and I volunteered. Well, why don't you let your father stay there, but in trade for that, I got four months extra time. So we were able to save the down payment of $7,500. No problem. But when we got to the closing, the closing costs too, which I didn't have, but he was so in dear to us for keeping his elderly dad in the house that he paid for the closing costs for us. And we moved into that beautiful house and we had it for seven years until I decided to leave my husband and he got the house.

Bobbi Rebell:
Why did that happen? How did you let that happen?

Barbara Corcoran:
You know why? Because I got the apartment in the city by then we had bought a one bedroom apartment in the city and I sold that one bedroom that I paid $80,000 for two years later for 250. And he sold that house that we had paid $75,000 for two years after our divorce for $75,000.

Bobbi Rebell:
So what is the takeaway for our listeners?

Barbara Corcoran:
I'm a believer in always committing throwing it out there and say I'm going to do it. Because when you have that kind of pressure and you've publicly committed, you find a way to get there. If you can commit to something, you'll find a way of getting there. If I had said, give me a couple of months, let me see if I could save for the house, believe me, my rational side would have kicked in and said, what are you doing? But because I said I would, I found a way that could do it and that's the truth, and most people are better than they think. If they're willing to be courageous enough to state it as low as fact and then make it happen versus the other way around.

Bobbi Rebell:
And eat a lot of canned noodles.

Barbara Corcoran:
Oh yeah,[inaudible 00:06:40] Yeah, you can do anything if you know it's temporary.

Bobbi Rebell:
Tell us your everyday money tip because this is also a real Barber tip because this is something that works for you may not work for other people, but it is a strategy that people might want to consider. Again, for you it works it may not be for everyone. Go for it.

Barbara Corcoran:
It's a particularly good strategy if you're out to those your own business, and I'll tell you why. My strategy is this. I always spend money I don't have. If I see money coming in new receivable, three months out, I committed that day, what I'm going to spend it on, and I started spending it even before it arrives. The reason for that is I have no choice but to actually make it happen whatever I'm doing. Because I know I've already committed the money. It's like putting a gun to your own head where you have to produce. If instead you wait for the money to come in and then say, okay, I've got this little extra cash. We've had a profit this month. Let's see the best use of it. That sounds rational, but I'm telling you the fever with which you attacked the best use of it is nothing compared to knowing that the bank is going to come in and chop your head off if you don't produce.

Barbara Corcoran:
So. I've always consistently put myself under pressure by spending money long before I have it and I've never let myself down. There's something magical that happens in the universe when you really under fire when you have no choice that you find a way to get there, and so I'm a big spender and on top of that I can also say, although I was born a poor kid and have my thousand dollar loan from my boyfriend, thank God, or we have been able to quit my waitress job and starting a business nowhere. Okay.

Barbara Corcoran:
But once I had that thousand dollars, I just thought, you know what? This is found money. It's a gift from God and I'm just gonna run this thing up the flag pole until somebody stops me and my most assured policy of making sure no one stopped me was to spend money in advance of having it because I had no choice but to make good on it. I had no choice and ran like a devil with a limited timeframe and I was able to accomplish 10 times more than all my competitors simply because of the pressure I had put on my own back. All right, so it's not what you read in accounting book, but I can tell you when you're building a business, it's a smarter way to go than to be calculated and do it a step at a time.

Bobbi Rebell:
It's the real world. One other quick question though, did you ever have trouble and how did you handle it collecting those receivables?

Barbara Corcoran:
No, I wrote off about 10% of my receivables because you have to appreciate. My business was selling co-ops in New York City and we had about 10% of our deals that didn't approve the Co-op association. They were turned down by the board, so I knew what that average was the first year, by the typical may be the second year in business, I realized I lost 10% of my deals, so I just wrote off that 10%. So that was realistic in suddenly a good accountant would do, but that's where my relationship or any resemblance to an accountant definitely ended in my attitude to it and everything else.

Bobbi Rebell:
All right. I want to talk quickly about your, still relatively new podcast even though who would know it because it's always at the top of the charts where to I'm trying to climb, but you're there and that's a lot because your podcast is so good. It is a short one, so dear to my heart, but you also really deliver personal and as you have here very honest and straightforward advice about your life and the lessons that you have learned and your bold with it. Your most recent episode talked about quitting jobs. You quit 22 jobs Barbara, you also talk about negotiation skills. Tell me more about this podcast and why it is so different and people are really responding to it?

Barbara Corcoran:
I think people are responding well simply because I tell it like it is. And it doesn't mean if it's the person listening, but I think they leave trusting that they heard the truth and I also think I'm impatient by nature. So if you're gonna ask me what about negotiation? Most people can write a book on that. I can't. I can tell you in eight minutes flat, what the key to negotiation, what are the key moves and what doesn't work. And really I don't have more to say after the eight minutes. So I think because I have such a short attention span and because I'm so impatient by nature myself and listening, I want to know what you want out of me and what do I gotta do. And that's pretty much how I am with everybody. Get to the point and then tell me how you get there.

Barbara Corcoran:
So I do get to the point and then tell you how I get there and then the eight minutes are up and I'm signing off. I wish I was more verbose and had more great delicious detail, but I just say the main things that worked for me and I leave it at that and my sign off until the following week. So I hope it works. We'll see. It's very scary as I'm sure you know, to merit someone's eight minutes. I feel it's such an abuse or a trust that I feel like every word has to really, really count or I have no business doing its own. I'm Mostly scared, I'm scared to six days. Then I do the podcast, then I get scared all over again.

Bobbi Rebell:
Well you're doing a great job. I don't find you scary at all. I love it. I think you're worth investing every one of those eight minutes, so thank you for all that you do. Everyone knows where to find you, but just in case because I ask everyone, tell us where you can be found, where people can follow you on social and what else is important that's going on in your life that we should know about.

Barbara Corcoran:
Well, of course it's a Business Unusual, which is the podcast, my newest baby, but as usual, any social platform @BarbaraCorcoran is very easy.

Bobbi Rebell:
Love it. Thank you Barbara.

Barbara Corcoran:
I love you back. Bobbi. Thank you so much. And Go back to your real name, Barbara, it's such a pretty name.

Bobbi Rebell:
So if you're like me, you want to hit rewind and listen again. She's that good. And before I get to the financial bonus tips, just want to make a little comment about the food because we spend so much time agonizing over all of this organic fancy food and when we're saving money, everyone talks about the ramen noodles. I want to talk to you about the chef Boyardee that she and her husband were eating to save up money because you know what, that's fun childhood memories for me. My mom was a working mom and you know what? Sometimes we have something called spaghettios. Do you guys even know what that is? It's basically this like circle pasta in a can and tomato sauce and it's delicious. It may not have any nutrition, but if you see spaghettios in the store, I have no affiliation with them. Pick them up and try them instead of ramen noodles if you're trying to save money.

Bobbi Rebell:
Just for variety, be a little bit bad. Like I said, they're probably not nutritious at all. All right, let's talk about my tips. Finance grownup tip number one. Sometimes financial advice like Barbra's goes against common stereotypical things that we hear. Here's the thing though, always listen to different opinions especially when they're from someone like Barbara Corcoran who has been so successful in so many different fields, to not only real estate where she started out, but also now with Shark Tank. She's an entrepreneur investing in so many different companies, so listen to her and give it some thought. Now I'm not telling you to go out and spend money that you don't have or even to spend on receivables, which is really what she was doing. It was money that she had contracts for but had not yet received so she believed that money was coming, but I see her point and I also see how that can create a really strong motivation so before totally rejecting it or even accepting it, play out how that would work for you.

Bobbi Rebell:
How are you going to cover things for example, if someone does not pay or if they pay, but they are on a delayed schedule so they're not paying in 30 days like your bill says they're paying 60, 90, 100, 20 days out. How are you going to finance that? You have a line of credit with your business. Are you throwing that on a credit card where you might be paying interest, late fees? What have you, factor that in. Are you going to charge a late fee to them? Barbara factored in that 10% of her expected commissions receivables were not going to happen so even she was doing that.

Bobbi Rebell:
Financial Grownup tip number two, be creative and flexible. When you're negotiating. Barbara, let the sellers elderly dad stay in the house longer than originally planned. Again, you have to give Barbara props for being open minded and in return by the way, she got precious time and the goodwill was so strong and her gesture was still appreciated that the closing costs were paid by the seller.

Bobbi Rebell:
That is huge. Thank you all for being part of the Financial Grownup community. We bring this to you for free. The only payment we ask is that you share it with someone that you care about and that you believe would enjoy and benefit from the podcast. Your reviews and your feedback. I'm just going to tell you guys straight up there is really important. I read everyone, we don't get as many as I would like. There aren't that many there and I know a lot of you are out there. A lot of you are DMing me, which is actually really great. Still DM me, gave me the feedback, but if you can also leave reviews on Apple podcasts, that is also really helpful to get the show notice because that's how people discover the show.

Bobbi Rebell:
If you do want to also be in touch on social media, it's not either or guys. Follow me and DM me on Instagram @BobbiRebell1 that's the number one on twitter I'm @BobbyRebel and on Facebook, Bobbi Rebell as well. And big things of course to the amazing Barbara Corcoran, the ultimate Financial Grownup. Everyone check out her podcast Business Unusual and watch her on Shark Tank and thank you Barbara Corcoran for getting us all one step closer to being Financial Grownups.

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

In Frazer’s money story you will learn:

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

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

In Frazer’s money lesson you will learn:

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

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

In Frazer’s everyday money tip you will learn:

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

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

In My Take you will learn:

-Why it's ok to keep secrets at work

-Ways to consistently give to charity

Bobbi and Frazer also talk about:

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

EPISODE LINKS:

Buy Frazer's book Wealth Actually

Check out the Wealth Actually podcast here!

Visit Frazer Rice’s website.

Follow Frazer

Instagram: @Frazer.Rice

Twitter: @FrazerRice

Linked In @Frazer Rice

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

Transcription

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

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

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

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

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

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

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

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

Bobbi:
Because you're a wealth advisor.

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

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

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

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

Frazier:
It sure is.

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

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

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

Bobbi:
You're busy, Frazier.

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

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

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

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

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

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

Bobbi:
What conferences do you attend?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bobbi:
Thank you Frazier.

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

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

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

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

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

Ameliora Founder and CEO Adrienne Kronovet started paying close attention to clothing as a child shopping with her grandmother, and shares her timeless insights on shopping strategies and lessons learned. 

In Adrienne’s money story you will learn:

-The role the perfect pair of jeans played in her success

-Her strategy to determine value when deciding what clothing to invest in and more

In Adrienne’s money lesson you will learn:

-Her specific tips to find the best values when shopping

-The different ways you can leverage confidence to make the best financial decisions

In Adrienne’s everyday money tip you will learn:

-How to look at the cost-per-use of an item

-Exactly what to look for when purchasing a work-appropriate wardrobe, especially when you are first starting out in your career

EPISODE LINKS:

https://ameliora.com/

Follow Adrienne and Ameliora!

Instagram @Ameliorany

Facebook @Ameliorany

Pinterest @Ameliorany

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

Adrienne Kronov:
I found these jeans. They were bootcut, dark wash, denim. I think they were about $60. I put them on, and oh my gosh, I felt invincible.

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. How can you tell when an expensive clothing buy is really an investment piece and not just a splurge that you're trying to justify? There are specific things that you need to know, and our guest is going to educate us. First, quick thank you just for being here. Your time matters. We appreciate it. We try to keep the show around 15 minutes because you're busy. The show is also free to you. We've done over 100 episodes, and the only thank you that I ask is that you give back by telling a friend that you care about and helping them find the show. They may not even know how to listen to a podcast, so help them actually load it onto their phone or other device so that they can also benefit from the stories of these amazing high achievers that we get to speak to here.

Bobbi Rebell:
Now, to another high achiever, our guest. You guys are just going to love her. Adrienne Kronovet founded and self-founded her clothing company, Ameliora, remember that name, with a very clear mission that she's going to share, and she is already making a real difference. But it all started with some special shopping trips with her grandmother. Here is Adrienne Kronovet.

Bobbi Rebell:
Hey, Adrienne Kronovet, CEO of Ameliora, hopefully I said that right, all of 23 years old. You're already a financial grownup. Welcome to the podcast.

Adrienne Kronov:
Thank you so much, Bobbi, and you pronounced it all right. I'm such a fan, and it's so awesome to be here.

Bobbi Rebell:
I'm glad you're being honest. But we did practice that, so we do try.

Adrienne Kronov:
We did.

Bobbi Rebell:
I've botched quite a few names, so we got past that one. So I mentioned your company, Ameliora, and we're going to talk more after [inaudible 00:02:28] but just quickly, since you're all of 23 years old, this is a self-funded, beautiful clothing company, the most elegant jackets and pants-

Adrienne Kronov:
Thank you.

Bobbi Rebell:
... named after extraordinary women. Just tell us a little bit about it.

Adrienne Kronov:
Yeah, absolutely. So I started Ameliora almost a year ago, which is so crazy to say, to make clothes that would make women feel confident and empowered. I really wanted to have clothes you would take out for a special occasion. If you had an interview to go to or you had a meeting or you were giving a presentation, I wanted to create clothes that you would grab for that special moment and put on that would make you feel absolutely invincible.

Bobbi Rebell:
And they are. I am the proud owner of the Carmen jacket, which we'll talk about later. They are beautiful, down to the fabric.

Adrienne Kronov:
Thank you.

Bobbi Rebell:
Part of that is because you learned the appreciation of clothing. You're from a family that was in the clothing business back in your home state of North Carolina, where your grandfather had a clothing mill, and you actually have a lot of childhood memories of, for example, shopping with your grandmother and a specific pair of jeans. Tell us your money story about these jeans. I think you wore them for almost a decade.

Adrienne Kronov:
I did. So every year for my birthday, my grandmother would take me shopping, and she did this for all of her grandchildren. And we all looked forward to it because my grandmother has the most exquisite taste-

Bobbi Rebell:
Wait.

Adrienne Kronov:
Yeah?

Bobbi Rebell:
Was this an outing for all of you at the same time, like one big day, or was it your birthday day?

Adrienne Kronov:
It was our birthday day, but we always when it was coming up. Grandma Maryann would call us, we'd pick a date, and then we'd head off to the mall. It was something that I know myself and all my cousins really looked forward to.

Bobbi Rebell:
And what was a day at the mall like with your grandma?

Adrienne Kronov:
It was an event. So my grandmother, she would pick us up. We'd go eat at the food court and we'd make a map of where we wanted to go and pick the highlights and stores we really loved. Like for my male cousins, I think she took them to maybe Dick's, and I know for me and a lot of my girl cousins, we went to Hollister and American Eagle. And she really custom tailored where we would go depending on our own personal taste.

Bobbi Rebell:
Was there a budget, or this was just the ultimate shopping spree?

Adrienne Kronov:
I mean, of course, there was always a budget, but it was really interesting because she never framed it around money. It was all about how the clothes made you feel. So, yes, there was a budget, but it never felt like one.

Bobbi Rebell:
Interesting. So then tell me what would go on in a typical shopping trip and about these jeans you want to talk about.

Adrienne Kronov:
My grandmother, it was such this treasured experience that she and I shared. So we, one day, I think it was I want to say my 12th birthday, and the two of us, we ate at the food court, and then we immediately headed over to Hollister. I tried on a bunch of stuff, different shirts, dresses, and all the sudden I found these jeans. They were bootcut, dark wash, denim. I think they were about $60. I put them on, and oh my gosh, I felt invincible, and my grandmother, she took one look at me. She saw how I felt in them, and she said, "You know what? We're getting them." So we got them, and I wore them from 12 to 21.

Bobbi Rebell:
Whoa, and by the way, just remind everyone, you're 23 now. Okay, go on.

Adrienne Kronov:
Right. I'm 23. Yeah. I'm 23 now.

Bobbi Rebell:
Miss CEO.

Adrienne Kronov:
[inaudible 00:05:48] right. So I wore these jeans at every place I had to go. I wore these jeans because I felt super, super invincible. I knew that if I wanted to look good, I would wear these bootcut jeans. I wore them to my first day of college. I have pictures and pictures of me in the same pair of pants. I mean, I wore them for almost 10 years.

Bobbi Rebell:
Did anyone ever notice? I mean, they're jeans, so most people don't, right?

Adrienne Kronov:
People don't. None of my-

Bobbi Rebell:
Yeah. Then it's a good thing it wasn't a crazy top or something.

Adrienne Kronov:
Oh my gosh. Exactly. And that was the best part because they were such a great, universal pair of jeans that I could wear them with a blazer if I needed to be more formal. I could wear a T-shirt if it was casual. They would work with heels, with sneakers, with slippers. I mean, I loved, loved these jeans.

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

Adrienne Kronov:
I guess the takeaway would be get a good pair of jeans. I think the big takeaway from this is to be thoughtful in your purchases, make your buying really deliberate. I'd bought these jeans. When I got them, they were pretty universal so I could wear them with a blazer, like I said. I could wear them with really anything. They were so versatile. They were a forever piece in my closet, and just having that to turn to was so amazing knowing that I had a go-to item that would make me feel super confident.

Bobbi Rebell:
And speaking of investing in clothing or items that are going to really last, I love your everyday money tip because it's something that is becoming more of a discussion topic, especially as Millennials, like you, are moving up the career ladder and becoming more successful in business and wanting to present a certain way among their peers and colleagues.

Adrienne Kronov:
Yes. Absolutely. I think when, as myself and my friends, as we get older, we really want to look professional and we want to look polished. And so that leads me to my money tip, which is rather than just the initial sticker price is to focus on the cost per wear, which is basically where the value of the item is directly related to how much you use it. So if you have a $30 dress and you wear it once, the cost per wear is 30 bucks. But if you spend $100 on a dress and you wear it 20 times, the cost per wear is $5. I mean, I think my $60 Hollister jeans, I think the cost per wear was in the negatives.

Bobbi Rebell:
Yes. Pennies. Pennies.

Adrienne Kronov:
Pennies.

Bobbi Rebell:
Yes, which is excellent. Try to get to pennies in your cost per wear. Let's talk more about Ameliora, because, as I keep saying, you're 23 years old. You basically founded this right out of school, self-funded, which is incredible. You did have a family background. Your grandfather operated a clothing mill in North Carolina. This is not just about the clothing, though. Tell us more.

Adrienne Kronov:
Yeah, absolutely. It's all about how clothes can make you feel, the feeling I got when I put on those jeans and I felt invincible. It's about creating blazers and jackets and different items that you put on and you feel like you can conquer anything.

Bobbi Rebell:
And they all go together. They're all coordinated, which is great.

Adrienne Kronov:
Yes. Absolutely. Everything is made in the same black, except I will give you a bit of an exclusive-

Bobbi Rebell:
Ooh.

Adrienne Kronov:
We are in the process of developing and launching a new shirting that will introduce white into the collection, which I'm really excited about.

Bobbi Rebell:
Wait. I think I read a little bit of a hint about this. You're sourcing unusual fabrics, so there's also some innovation happening here.

Adrienne Kronov:
Right. What we're trying to do is we're trying to elevate the regular suit. So in our suiting and in our shirting fabric, we're using performance fabrics. So imagine the same fabric that's used in Lululemon legging but as a shirt, a professional shirt.

Bobbi Rebell:
I need to see this. I'm going to have to track you down in New York and come down and see it. So where can people get your stuff? Where can people get everything?

Adrienne Kronov:
Yes. You can find us 100% online at Ameliora.com. We live on the web. We're accessible 24/7 from any device.

Bobbi Rebell:
And social media, where can people follow you?

Adrienne Kronov:
Yes. Social media @AmelioraNY.

Bobbi Rebell:
On all the channels.

Adrienne Kronov:
On all the channels.

Bobbi Rebell:
Awesome. Well, thank you so much. This was amazing.

Adrienne Kronov:
Thank you so much, Bobbi. It was such a joy to be on.

Bobbi Rebell:
I can't wait for all of you to check out Ameliora. The pieces are stunning. I own a Carmen jacket and love it, and I love that she's expanding beyond black. Who knows what's next? Financial Grownup tip number one, if you do splurge on something you love, and then you realize you were wrong, return it. Now, that may sound obvious, but as everyone who has cleaned out his or her closet knows, you probably found some items with tags on it. You know who you are. And in fact, go through your closet right now and see, or after you finish listening, and see if any items have tags on them, and if it hasn't been too long, return them.

Bobbi Rebell:
Financial Grownup tip number two, leverage what you know and who you know. I met Adrienne almost a year ago when she was just launching the line right out of college. Most people would say she should have worked at a fashion line behind the scenes and learned the ropes, but you know what? Because her family had been in the garment industry, she already knew the ropes, and she was able to use that to her advantage. A lot of people don't want to go into family businesses, but tapping into what those closest to you know and know well is a smart move, and that goes for friends who may have insights and connections in a given field as well. Use it. Life's tough enough.

Bobbi Rebell:
Hope you enjoyed this episode. We have some big new things planned that I will be talking about later this week, so be sure to subscribe and go into settings to make sure that you are in auto download mode so you don't miss it. Be in touch on Instagram @BobbiRebell1, and on Twitter @BobbiRebell and PM me what you want to see more of because we're making big changes here at Financial Grownup. And thank you to Ameliora's Adrienne Kronovet 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 Stuart and is a BRK Media production.

Serial entrepreneur Lindsey Holden, who is the CEO and Co-Founder of the personal finance app The Long Game, literally played the long game when she spent 5 years living in her family’s veterinary office, to pay off her student loans and build a solid financial foundation. 

In Lindsay’s money story you will learn:

-Why she lived at her family’s veterinary office for 5 years

-Some of the unique experiences she had and what, if anything she would do differently

-How to come up with creative solutions to financial problems

-Tips on how to pay off student debt

In Lindsay’s money lesson you will learn:

-How to stick to your convictions and deflect judgement when making personal money decisions

-Why Lindsay considers herself a minimalist spender

In Lindsay’s everyday money tip you will learn:

-How to leverage coupon codes using Google ads to get discounts on services like Uber and more.

In My Take you will learn:

-How using gamification can motivate you to save and encourage better money habits

-How to get the most out of a rewards programs

Bobbi and Lindsay also talk about:

-How Lindsay’s app The Long Game works

-Lindsay’s experiences as a serial entrepreneur

EPISODE LINKS

Uber

Google Adwords

Cryptocurrency

https://www.longgame.co/ 

Follow Lindsay!

Twitter @linzor1

Linked In @LindsayHolden

Follow Long Game 

Twitter: @LongGame

Instagram: @LongGameSavings

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

Lindsey Holden:
It's kind of like a sitcom story, right? You're like, "Yeah, I'm actually living at a veterinarian office," which is really weird and also kind of hilarious for your dating life.

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

Bobbi Rebell:
Hey, Financial Grownup friends, hope that little teaser at the top got you curious. This story is one-of-a-kind. And it makes you think, what would you do to get yourself on solid financial footing if you had debt coming out of school? How far would you go? And for how long? And would you care what people thought?

Bobbi Rebell:
Welcome to everyone, and thank you for spending time with us. We keep it short here, around 15 minutes, flex time for podcasts. If you find value, the only payment that we ask is that you share it with friends, the ones you care about, the ones you want to live a richer life.

Bobbi Rebell:
Now to our guest, Lindsey Holden. She is the CEO and founder of Long Game, which is a personal app that uses games and rewards to incentivize financial habits. All of us could use a little extra motivation. And Lindsey was certainly motivated to get her financial life in order. Great story, my friends. Here is Lindsey Holden.

Bobbi Rebell:
Hey Lindsey Holden, you're a Financial Grownup, welcome to the podcast.

Lindsey Holden:
Thank you so much.

Bobbi Rebell:
Congratulations on the Long Game. You're certainly in it for the long haul. This is not even your first company.

Lindsey Holden:
Yeah, we built a financial app, so we're an FDIC insured savings account. That have games on top, and you can win up to a million dollars on our app for saving your own money.

Bobbi Rebell:
That's awesome. Let's talk about your money story, because that has to do with building a base to now have the kind of success that you're seeing. You kind of took a step back at one point, to make sure you have that firm foundation, and it had to do with sharing a bathroom with 40 people for about five years? Am I getting that right?

Lindsey Holden:
Yes you are. Let me tell you a little more about that. After leaving college, I had a graduate degree. I had also, major student loans, like a lot of people today. And, I had a job offer in San Francisco, which is a very expensive place to live, and my finances are tight. My father owns a veterinary hospital in San Francisco. So I decided to move into a veterinary hospital, in a room in the back, where I did share a bathroom with 40 people.

Bobbi Rebell:
Explain more. How exactly did that work? Were there 40 people living there?

Lindsey Holden:
No.

Bobbi Rebell:
I didn't think so.

Lindsey Holden:
It was a place of work. Essentially, my bathroom was also shared by the people that work there. And there're specific hours, obviously, where it was much more comfortable to take a shower or whatever it was. But it was kind of a silly thing, but it was a really long period of my life. I had lived there from, I'm embarrassed to say, five years, to pay off my student loans, and get a good start on my career. But there're a lot of silly little things, when you're there. Because you end up being part of a community in the place that you live.

Bobbi Rebell:
So, like what?

Lindsey Holden:
I lived in a room in the back of the hospital, and we had a mouse infestation. Mice, they moved into my room. I was like, "Well, we have so many cats here." So I went downstairs and basically said, "Hey, can I borrow a cat for a minute?" And they're obviously like, "No, you cannot. You cannot take a cat."

Bobbi Rebell:
I thought they were going to say yes.

Lindsey Holden:
I know, me too. There's like a boarding cat, that wants to do some work here.

Bobbi Rebell:
But you actually accomplished quite a bit, because you did pay off your student loans.

Lindsey Holden:
Exactly, yeah. There's a lot of expectations around starting your career, and having this life that you've always imagined. I think it's really important to be practical, and not to be afraid to have creative solutions, and just develop the foundation that you need to build a life that you want.

Bobbi Rebell:
What are the specific things you did, besides not paying rent, to pay off those loans, and form that foundation? So you could go and be an entrepreneur?

Lindsey Holden:
Paying off loans is absolutely huge. Most people today, that are graduating, have student loans, about $38,000 on average. So, to build a lifestyle that you're living well within your means, when you get that first job, is just really important.

Bobbi Rebell:
What are the specific things that you did? So you lived rent-free. Were you changing the kinds of foods that you ate? Did you go out less with your friends? What other things helped you achieve that goal?

Lindsey Holden:
I'm kind of a minimalist when it comes to things, so I wasn't spending too much on extra things, and trying to really optimize my life in that way. I think that's basically a mindset and an attitude that you can get in, that's really helpful.

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

Lindsey Holden:
The takeaway is that maybe it's not cool to move in with your parents or whatever, but don't let shame be the driver in this. I think it's ridiculous. The way to really live a cool life is to be an individual, and be responsible for the financial life that you want to live.

Bobbi Rebell:
Did you ever get criticized? Or did you feel like people judged you?

Lindsey Holden:
Not criticized, but it's like a sitcom story, right? You're like, "Yeah, I'm actually living at a veterinarian office," which is really weird and also kind of hilarious for your dating life, as you can imagine. But I just owned it because it was something that, I really care about building the foundation that you need to have the career that you want. And the people that love you, really start to think that's cool too.

Lindsey Holden:
I've had flowers delivered to the front desk there, before. So all the people that work there, just knew my social life.

Bobbi Rebell:
All right, let's talk about your every day money tip. You have one of the most creative ways I have ever heard of, to really leverage reward codes.

Lindsey Holden:
This one's fun. You know, there're a lot of referral programs out there. When you're playing on the internet a lot, you find creative ways to use these. And one of the things that I did when I was living at veterinary hospital was to run Google AdWords against my Uber code. This can be done with any other referral program, but essentially, the link that you're using is your referral link. And then, you're able to get the money from the referral, which ended up being credits for Uber. It was just a fantastic way to get some free rides around the city.

Bobbi Rebell:
All right, let's talk about the Long Game. So, as I mentioned earlier, this is not your very first venture. You're an experienced entrepreneur. Tell us more about the Long Game.

Lindsey Holden:
Like I said, Long Game is a gamified financial app. We're trying to make banking into a wonderful, joyous experience. And we do that through use of games. A lot of those games are games of chance, where you can win up to a million dollars. But you can also win cryptocurrency in our app. We're always talking to our users and finding out what rewards they want to see in our app. And then using those to help people build a financial foundation that they need.

Bobbi Rebell:
So specifically, how does it work?

Lindsey Holden:
So you download an app, where Long Game, obviously on Google Play and the App Store. You get a FDIC insured savings account. Then, as you save in that savings account, we reward you with games. And you can choose which game you'd like to play. Some of our games are instant win, some of them are a weekly drawing. But they're all giving you a chance where you can win cash. And, the more you save, the more games you can play.

Bobbi Rebell:
How did you come up with this?

Lindsey Holden:
It came from an idea that's called Prize-Linked Savings. It's usually run by financial institutions, or governments, actually, for bonds. But, it's offline, you basically deposit in an account, and there's a monthly raffle, generally. So we've taken that idea, and brought it into an app form, and made it much more engaging and accessible.

Bobbi Rebell:
And tell us more about the future. I know you're always coming up with new games. What can we expect to see next?

Lindsey Holden:
Not only are we coming up with new games, new rewards, all the time, new characters in our app. We're also adding financial products. So, Long Game hopes to be the financial hub that can help you with all your financial needs, in a rewarded way. So you can imagine us later, online banking, letting you pay down your loans, and that sort of thing. And then giving you rewards for completing those actions.

Bobbi Rebell:
What's the biggest prize that anyone has won?

Lindsey Holden:
It's a thousand dollars.

Bobbi Rebell:
A thousand dollars is the most you've given away?

Lindsey Holden:
A lot of people have won a thousand dollars, actually. We've given away over a hundred thousand dollars to-date.

Bobbi Rebell:
Awesome, great. Tell us where people can find out more about you and about the Long Game.

Lindsey Holden:
You can find out more about us on LongGame.co. You can download Long Game in the Google Play store, and the App Store.

Bobbi Rebell:
And, to follow you on all your socials?

Lindsey Holden:
On Twitter, I'm @linzor1. And you can find me, Lindsey Holden on the rest of them.

Bobbi Rebell:
Awesome. Thank you so much Lindsey. This was amazing.

Lindsey Holden:
Thank you so much.

Bobbi Rebell:
Wow, that was a genius money tip there. Super original for sure. DM me if you try it, and let me know how it goes.

Bobbi Rebell:
Financial Grownup tip number one. Apps that use gamification to motivate you to adopt better financial habits, are always a good thing. In addition to, of course, checking out the Long Game, some other popular ones are Beeminder. It forces users to make a commitment to a financial goal, and to hit milestones. Now, if you don't hit them, you have to make a payment to Beeminder. Obviously, you can fake out the system, but, if you go with it, it might be just painful enough to make a difference.

Bobbi Rebell:
Another one that's a little different, is Fortune City. Along with bookkeeping and so on, to check expenses, the app has a simulation game to build and grow your own city, so it keeps it interesting. Other more traditional apps that make paying more attention to your money, more fun, and help you achieve savings goals for example, include Acorns, Stash, You Need a Budget, Thrive, and Qapital, that is, Qapital with a Q. I'm going to leave more info in the show notes, which can be found at bobbirebell.com/podcasts/lindseyholden.

Bobbi Rebell:
Financial Grownup tip number two. Lindsey talked about sharing her Uber code through Google AdWords. We all get codes all the time. Make sure if you love a product that you use, and you recommend it to a friend, you tell them, give them your code, ask them to use your code, if they try the product. And it's fine to say, "I'll get a bonus," because almost every case, they get something too. And even if they don't, friends want to see you rewarded. So don't be shy about it.

Bobbi Rebell:
And every time you sign up something new, don't forget to use a friend's code, that they can share with you. So if you know a friend uses a service, or goes to a certain exercise place, or buys a certain product, ask them, "Do you have a reward code that you can give me, because I might sign up for that as well." Just think for a moment, who you know that uses that product or service, pay forward.

Bobbi Rebell:
And with that, I want to thank all of you for sharing your time. DM me, let me know your favorite gamification apps. On Twitter, I am @bobbirebell. On Instagram, at bobbirebell1. More about the podcast, at bobbirebell.com/financialgrownuppodcast. And did I mention, my book, How to Be a Financial Grownup is now out in paperback. I'd love it if you pick up a copy, and maybe one for a friend.

Bobbi Rebell:
Thanks, to the Long Game's Lindsey Holden, 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.

Tori Dunlap saw big dollar signs when she took a new job, but the red flags she ignored during the interview process soon created an impossible situation.. and a new appreciation for the emergency fund she never thought she would have to use.

In Tori’s money story you will learn:

-Why she regretted her first job out of college

-Red flags to look for during a job interview

-How trusting her gut helped her make the right decision

In Tori’s money lesson you will learn:

-Things to consider before taking a job

-Why it's important to have an emergency fund

In Tori’s everyday money tip you will learn:

-How to score deals on hotels when traveling

In My Take you will learn:

-How to start an emergency fund

-What to do if you don't have the cash for an emergency fund

Bobbi and Tori also talk about:

Expedia

Rockstar Finance

EPISODE LINKS:

Check out Tori's website here: https://www.victorimedia.com/ 

Follow Tori!!

Instagram @victorimedia

Twitter @victori_media

Linked In @Tori Dunlap

Transcription

Tori Dunlap:
She just looked at me and she goes, "Are you leaving or are you staying?" And so I said, "I think it's best for both you and I if I were to move on," and she goes, "Great, your last day will be tomorrow." And I felt panicked.

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 gonna get there together. I'm gonna bring you one money story from a financial grownup, one lesson, and then my take on how you can make it your own. We got this.

Bobbi Rebell:
Hey Financial Grownup friends, so given that you're choosing to listen to a money podcast, you probably have an emergency fund, or you know that you should have one, and hopefully are working on building one up. I'll be honest, my family's goes up and down. It's not always where I want it to be, but this story, shared with us by Victori Media's Tori Dunlap, is going to lock into your mind why so many financial experts go on and on and on and on about that darn emergency fund. Special welcome to our new listeners, so glad you found us and that you are here and to our regulars, we appreciate your support, you're everything to us, so please continue to listen to the show and to support it by telling friends that you think deserve to live a richer life. Maybe do a quick screenshot and post it on social media, make sure you tag me at Bobbi Rebell on Twitter, at Bobbi Rebell one on Instagram, so I can thank you and on that note to our inspiring guest, Tori Dunlap.

Bobbi Rebell:
She is the force behind a new blog, Victori Media, which focuses on career and personal advice for millennials that, as you will hear, is already drawing a lot of attention because it's just really good. Here is Tori Dunlap.

Bobbi Rebell:
Hey Tori Dunlap, you're a financial grownup, welcome to the podcast!

Tori Dunlap:
Thank you so much for having me. I'm so excited to be here.

Bobbi Rebell:
You came to my attention because you have been nominated at the only awards that count, of course, the [inaudible 00:02:10] awards, as best new blog and then I was checking out your blog and I had to have you on the podcast. So thank you for being here.

Tori Dunlap:
It's been so awesome. This is my first spin con, and obviously my first nomination, my first kind of finalist opportunity, so yeah, I'm just over the moon, thrilled.

Bobbi Rebell:
We are joined, because I am of course honored that this podcast was nominated as best new podcast, so we'll be up there with the newbies the two of us, hanging out I think. Woo hoo.

Tori Dunlap:
It'll be great.

Bobbi Rebell:
Alright. You brought with you a money story that I found a little bit shocking, but maybe it's not as unusual in the millennial world, I'm a gen X-er. But maybe it's not that unusual because you kinda just went with your gut. Tell us, Tori.

Tori Dunlap:
Yeah, so I took a job for the money and ended up regretting it very very hard.

Bobbi Rebell:
Let me just interject one thing though, a lot of the time jobs are about money. You should take a job that pays enough money. It shouldn't be just about the money, but money does matter.

Tori Dunlap:
Oh totally. Yeah. I mean if jobs didn't pay us money we wouldn't show up.

Bobbi Rebell:
Exactly, so it's okay to take jobs for the money but clearly there was something else going on that didn't work.

Tori Dunlap:
Totally, yeah, so I was looking to get out of my first job right out of school and I realized I wasn't growing, I wasn't learning anything. I wasn't feeling challenged in the way that I wanted to.

Bobbi Rebell:
What kind of job was it? What were you doing?

Tori Dunlap:
I worked ... I actually ended up leading digital marketing and communication for this global security company, so my job right outta college, I was the only marketing, communication, or PR person for this 5000 employee company. So it was really crazy and I just knew being kind of this team of one, there wasn't a lot of growth trajectory for me there. So after about a year and a half I knew it was time to leave and I got approached by this recruiter who told me this job that sounded perfect on paper. It was a digital marketing manager role, which is what I know, what I'm good at, what I love.

Tori Dunlap:
I came in to interview and something in my gut just didn't feel right, the office was like half office half showroom. Everybody there, they weren't really talking to each other, there was only about 12 people in the office. But I'm a really social person so that was kind of a red flag for me, but I went in and interviewed anyway and I interviewed with the woman who was to be my boss and she was the CEO of the company. Within about 10 minutes of that interview she offered me the job on the spot, which again was kind of a red flag, I'm like, I know I'm awesome but don't you wanna ask me more questions?

Bobbi Rebell:
Were they desperate? What was going on?

Tori Dunlap:
Yeah, that was definitely what it was and so I didn't know this at the time, but the position had been open for about seven months. So they were really looking to find somebody. She asked me what my salary range was, and I knew in order to make a leap from my previous job, where I had just received a 20% raise, I knew it was going to have to be another jump up, so I asked for 20% more than what I was already making, expecting it was going to be a negotiation, expecting she'd counter. And she just agreed, and she said, "Well this is 20 thousand more than we paid the last person, but we really like you and we really want you to jump on board."

Bobbi Rebell:
Which is really flattering.

Tori Dunlap:
Oh so flattering, especially for me, and a lot of us struggle, especially-

Bobbi Rebell:
How old were you?

Tori Dunlap:
I was 23.

Bobbi Rebell:
Wow.

Tori Dunlap:
A lot of young women, especially when you suffer from imposter syndrome, and so it was something that was validating but also scary and also just overwhelming and exciting. I went home and I talked it over with my daily who I'm really close to and close friends and I couldn't put my finger on why, just my gut was telling me, no this is not for you. You're not gonna be happy here, this is not the environment that you will thrive in.

Tori Dunlap:
But I saw dollar signs and I couldn't say no. So I ended up accepting the job. Went in, by day two I knew it wasn't going to be a right fit. I ended up leaving the office, calling my mom and saying, "Hey mom, I don't think I'm gonna be able to do this." And like all good moms do, she's like, "Stick it out, it'll get better, it'll be fine." It ended up just being a really really unhealthy work environment. I had really negative interactions with my boss, I was crying myself to sleep at night, I was scared I was going to be fired. I was tasked with these really demanding, overwhelming workload that wasn't feasible for one person to do. I wasn't happy. I wasn't healthy, I wasn't thriving, I wasn't feeling fulfilled at all.

Bobbi Rebell:
This is a lot more than just not being fulfilled. This is really, this is your life. You can't be in that kind of situation.

Tori Dunlap:
And I knew in my gut the entire time, my gut was telling me, "This is not for you. This is not for you. This is not what you want. This is not where you should be." And I didn't listen because I was dreaming about how much I was going to be able to save for retirement and like a New Zealand vacation I was going to be able to take and all these things. So I ended up having to quit that job. Basically because it was so unhealthy after about two and a half months without another job lined up, which is the ultimate personal-

Bobbi Rebell:
Tell me about quitting. How did you quit?

Tori Dunlap:
She was kind of pushing me out. So I knew if I didn't quit first it wasn't gonna be good, it was gonna be pretty ugly and I didn't wanna go through that. So I had this huge project that I wasn't trained on, I ended up finishing it even though she was kinda rooting against me, which was a horrible feeling and had the project finished by 8:30 am on a Thursday. I went into her office an hour and a half later, and she just looked at me and she goes, "Are you leaving or are you staying?"

Bobbi Rebell:
She knew. She knew. Wow.

Tori Dunlap:
Yeah. So I said, "I think it's best for both you and I if I were to move on," and she goes, "Great. Your last day will be tomorrow." I felt panicked talking to my family. My parents, of course, were really worried. I'm an only child, so they're very involved in my life and especially my finances and so they were really worried for me. I knew it was the right decision and I felt so much relief when I walked out of there at three o'clock on a Friday.

Tori Dunlap:
Even though I didn't have a job I luckily had an emergency fund, which is something that I really advocate for. I had enough money that I could survive while I found a new job, but I felt such relief being able to be happy and just leave and to not have to worry anymore.

Bobbi Rebell:
Well, I'm happy that you had the strength to do that because it is a brave thing. And it's scary. What is the takeaway for our listeners?

Tori Dunlap:
Yeah, I would say trust your gut first off. Just understand that, of course, a job at the end of the day is about making an income but it's also where you spend eight plus hours of your day for five days a week around people you hopefully like and respect and with a manager who hopefully likes and respects you and vice versa. So make sure you're trusting your gut in any sort of situation, but especially through a job application and a job interview process.

Tori Dunlap:
And second, make sure you have an emergency fund, whether it's needing to get out of a bad situation in a job or needing to leave a partner who you live with or anything that is an emergency, you getting unexpectedly ill or you get a flat tire, having an emergency fund is so important to be able to give you the freedom to make decisions that you wouldn't be able to if you didn't have one.

Bobbi Rebell:
Let's talk about your everyday money tip because it's perfect for people that love to travel and travel well. Because part of growing up is not always having to stay at the youth hostel or the budget hotel, whatever. Sometimes you're ready to be in the grownup hotel.

Tori Dunlap:
We're gonna go in a completely different direction here. Much more positive and exciting.

Bobbi Rebell:
Much more positive.

Tori Dunlap:
Yeah. But one of my favorite money tips that a lot of people don't realize is, you and I were both talking before, we really like luxury boutique hotels, for me they're just a great way to see a new city or to just get a different perspective from a chain hotel. But they're often expensive and people often use third party sites like Expedia or orbits to book on. And that's great, but usually what happens is they actually don't give you the best rate, and that surprises a lot of people. So if you go to the hotel's website or if you call them directly, they usually offer you a discount or some sort of perk, like free valet parking or a free breakfast because you're booking directly with them.

Bobbi Rebell:
Because they pay those sites a commission, they have an incentive to have you book directly.

Tori Dunlap:
Totally. And you're supporting the local business in a way that you aren't if you're booking with Expedia or one of those other sites. So that's a really fantastic way to support that city, support that local business, and to also, hopefully, get a perk out of it as well.

Tori Dunlap:
And if something were to happen as far as needing to change your booking or an emergency comes up, the hotel itself is a lot more flexible. If you try to call Expedia you're waiting on hold forever and they're usually more stringent with their cancellation policies so you're not the hotel's customer until you're actually in the hotel if you book with one of those third party sites. So booking directly just makes the whole process way easier and then hopefully saves you money or gives you some sort of perk as well.

Bobbi Rebell:
Yeah, that's really interesting that the hotel doesn't really engage with you until you're there if you book through the third party systems. I never really thought about it like that, but it makes a lot of sense.

Tori Dunlap:
Yeah, it's a great tip.

Bobbi Rebell:
Alright, so I am new to your blog, but I am also getting a little bit obsessed with it. Some of the headlines, just for people to know, alright, Five Ways to Combat Imposter Syndrome, so relatable, Four Lessons I Learned From Rap Songs, not relatable 'cause I don't listen to rap but definitely got me curious. And then I think my favorite one on there was 17 Ways to Be Productive at Work When You Have Nothing to do, 'cause this happened. One of my jobs early in my career I tend to be a bit of a workaholic and sometimes my coworkers don't have the same enthusiasm for their jobs and I would finish a story early and wanna just do more stories, just because. And my coworkers didn't wanna do that. So I would be left sitting there, kind of lost, because I wanted to do more stuff. So tell me more about that article and maybe some of your other favorite ones, and the blog in general.

Tori Dunlap:
I write about personal finance and career for millennial women, a lot of the blog content that you see is written by me, and I also bring in different voices so actually most of the articles you listed were some of my really great female friends who are also writing about career and finance and so I really try and bring in different perspectives too so it's not just me droning on and on. But I love talking about negotiation so I have some negotiating posts on there, like exact scripts to use when you're calling third party sites, kind of like we mentioned or when you're negotiating a cable bill or a phone bill, the exact script to use, that's something I really love doing.

Tori Dunlap:
Summer's over now, but it's good all year round, I just wrote a post about financial to dos that you can complete over the summer. So give yourself a three month period and they're really easy, really actionable as far as checking them off as you go, and then yeah, I just sourced one of my favorite articles that I've written recently, I sourced from Rockstar Finance, just a bunch of different texts from people about a way to manage your finances in under 10 minutes. So again, super actionable, easy to do and that was inspired by a post I myself wrote about 11 ways to better your finances in under five minutes, so especially for us millennials, if your finances are sort of out of control or it seems overwhelming, it's hard to get started. It's hard to start chipping away at that iceberg. But these small little things that you can do that take no more than five 10 minutes a day is a great way to get started.

Bobbi Rebell:
By the way, Rockstar Finance is another great website. So alright, so tell us more about where to find out ... where to find the blog and where to follow you on all the socials.

Tori Dunlap:
Yeah. So my name is Tori so Victori Media is spelled with an I, V-I-C-T-O-R-I media.com and you can connect with me there. Find all the blog content as well as all the social media accounts are liked to Victori Media, so I'd love to have you stop by.

Bobbi Rebell:
Thank you Tori!

Tori Dunlap:
Thank you so much for having me Bobbi.

Bobbi Rebell:
Hey everyone. Let's talk about emergency funds, and if you don't have the cash to fund the three to six months many experts recommend, what do you do? Financial Grownup tip number one, if you don't have the cash for an emergency fund needed and want to make sure you have access to cash at a reasonable interest rate homeowners can get something called a heloc, that's a home equity line of credit, now you have to take this out before you need it. That's the key thing, but it will give you a financial life line if needed. And except for any fees to set it up, if you don't use it you're not paying interest, so it can just be there if and when you need it, and hopefully that'll be never.

Bobbi Rebell:
Financial grownup tip number two, Tori talked about booking hotels directly with the actual hotel, I've recently started deliberately booking flights directly with airlines. I do my research and I google flights, and third party services like Expedia, but I actually try to book directly on the airlines that way if a change is needed or there are changes in weather, what have you, I found the airline is better able to help you if you're in their system directly. In general, unless a third party middle man is bringing you real value, there's no real downside to cutting them out.

Bobbi Rebell:
Alright thanks to all of you that have subscribed. The show is free to you. But for us, to keep at it, we do need your support, so please do all the things, subscribe, rate, review, and most of all, let people know about us by recommending to friends. And if you haven't read my book, How to Be a Financial Grownup, it just got more affordable because it just came out in paperback, so please check it out. And while you're at it, tell your friends to check out Victori Media, and thanks to Tori Dunlap 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 Stuart and is a BRK media production.

This episode with Her Money podcast host and Today Show financial editor Jean Chatzky is about getting the most value for your work. 

In Jean’s money story you will learn

-the impact her divorce had on her financial strategy

-how the loss of her dad changed her perspective on money

-the loss of her job and the career change that followed

-how to assess your financial needs, especially your savings goals

-how focusing on her money created emotional and psychological security

-her  post-divorce college savings plan pivot

 

In Jean’s lesson you will learn:

-how to evaluate your financial needs at different life stages

-which professional advisors she has used at key points in her life

-how to know what to charge clients for your professional services or products

-why and how she shares information about pricing

 

In her money tip you will learn:

-the power of automatic savings

-mental accounting and why it works for her

-using different pools of money for different goals

-guilt free spending

 

In my take you will learn:

-my advice on knowing your worth in the market

-why socializing and making friends in person and online is key to growing your business

-Why you must choose clients that value your work

-How to deal with clients that lowball you on price

-How to grow low paying clients into higher paying ones

Links related to this episode

The Today Show

Jean Chatzky

Her Money with Jean Chatzky

Stacy Tisdale

---

Transcription

Jean Chatzky:
We were talking about how much we charge for speeches and creating content for various people and various companies. In the last year, I've become much more conscious of sharing these kinds of numbers with people in my circle, because this is the way we are all going to get paid more.

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

Bobbi Rebell:
That was NBC today show financial editor Jean Chatzky, host of the Her Money podcast, and author of countless bestselling books, most recently Age Proof. The clip is part of the lesson that she will share with us, in just a few minutes, about getting paid more. But first, we are going to start with her money story, which has to do with a rocky time in Jean's life, and how she found financial security. Here is Jean Chatzky.

Bobbi Rebell:
Jean Chatzky, financial grownup, welcome to the program.

Jean Chatzky:
Thank you Bobbi, so happy to be here.

Bobbi Rebell:
Yes, and happy 2018, and happy almost 100 episodes of Her Money. Congratulations.

Jean Chatzky:
Thank you, and congratulations on the launch of this podcast, I think it's so much fun.

Bobbi Rebell:
Thank you, it's been quite a year. I remember I think my second time ever as a guest was on Her Money, so it holds a very special place in my heart, and it's really just wonderful content that you're bringing to people, so thank you for that.

Jean Chatzky:
Sure.

Bobbi Rebell:
And everyone of course should check out Her Money.

Bobbi Rebell:
But you have brought with you a really important and compelling money story. Do tell.

Jean Chatzky:
I feel like I was thrust into the real world of financial grownups when I got divorced.

Bobbi Rebell:
And how old were you?

Jean Chatzky:
I was about 40. I mean that's when it hit, and it hit at a time when a lot of things hit. I lost my dad, who had been sick for a while. I got fired from Money Magazine, I mean they didn't actually say fired, but that's what happens when you get laid off. I had to take a whole new look at my life, knowing that I was going to be doing it on my own, knowing that I was going to be a freelancer rather than an employee, starting a business, maybe hiring my own employees.

Bobbi Rebell:
Which you have now.

Jean Chatzky:
Which I have now. And all of it caused me to really take a hard look at the inflows and outflows of money, at what I really needed. And most importantly, at what I needed to meet my savings goals, because when I got divorced, I started saving money like crazy, because nothing else made me feel as safe, and I was not feeling particularly safe in the world at that point.

Jean Chatzky:
And so it took the form of doing everything from buying a smaller house than I could really afford, and just shoving more money every single month into savings, to starting new college accounts for my kids, because the plan that my ex-husband and I had about how we were going to pay off the mortgage and then use that money to pay for college had gone out the window, to really taking a closer look at all of the bills every single month, and seeing what was not necessary.

Bobbi Rebell:
And you weren't doing that before?

Jean Chatzky:
I was doing it, but I wasn't doing it in such a diligent and type A way. I was saving up to the guidelines that I give people, but I just wanted to do more. That's what made me feel safe, was not shoes in the closet, it was just money in the bank.

Jean Chatzky:
So my lesson is a little bit different from that story, but no matter what stage you're at in life, we all need help. And I think asking for help, which I did during that period in my life, from financial advisors, from lawyers, from estate planners, from friends who had been through it before me. We've got to ask for help to figure out how to chart the right course at the right time.

Jean Chatzky:
And I thought about this lesson because I had lunch yesterday with Stacey Tisdale, who is another financial expert/journalist/colleague, who you should absolutely have on this show.

Bobbi Rebell:
Absolutely.

Jean Chatzky:
And we were talking about how much we charge for speeches and creating content for various people and various companies. In the last year, I've become much more conscious of sharing these kinds of numbers with people in my circle, because this is the way we are all going to get paid more. And doing this feels to me like we are really helping each other.

Bobbi Rebell:
Give me a money tip, something that you are using yourself, with your family, that is really making a difference, that people can implement right now.

Jean Chatzky:
Going back to what I told you about saving like a crazy person around the time of my divorce, I save automatically for every goal, even the small ones.

Bobbi Rebell:
Do you separate different accounts you mean?

Jean Chatzky:
I separate. I am a huge believer in mental accounting for which Richard Thaler just won a Nobel prize. I find when you have different pools of money for different things, it's easier to reach your goals. I've got a big trip coming up, I've got that money isolated. I'm saving ahead of time, and it means I will not be looking at big credit card bills that I don't have money to pay off, after that trip happens.

Bobbi Rebell:
And it also takes away the guilt of feeling like maybe I shouldn't treat myself to this trip, because the money is there for that.

Jean Chatzky:
Absolutely. And it doesn't matter if it's a trip, or a handbag, or a spa weekend, or college. Just knowing this is the job that this money has been set aside to do is really, really helpful.

Bobbi Rebell:
Great advice, thank you Jean Chatzky.

Jean Chatzky:
Sure.

Bobbi Rebell:
I love that advice about pricing. Information is power when it comes to pricing your services, especially as we seem to move more and more into the gig economy, not to mention side hustles.

Bobbi Rebell:
So I'm going to just expand on Jean's great advice about knowing what you're worth in the market and getting it. Financial grownup tip number one, get social. Think of others in your field not as the competition, but as your teammates, your allies. Spend time with your people. This can be in person, like Jean does, or even online. There are countless groups these days, especially for example on Facebook, where you can ask people specifically what do they charge?

Bobbi Rebell:
They may not say it publicly in the App itself, but a lot of people are willing to DM you with some actual numbers and helpful tips about what you can and should be charging.

Bobbi Rebell:
Financial grownup tip number two, do not work with clients that don't value your work, aka don't pay you enough. Good clients want you to stay in business, that can't happen if you are in a race to the bottom with price. If someone does not want to pay the right price to work with you, odds are this is not the last argument you're going to have with them. If they truly have a budget that is still too small, see if you can limit the scope of what you're doing. If you believe they're going to grow into a client that can eventually afford you, make a judgment call. But make it clear that you are working below rate, and that the numbers are unsustainable and need to grow when their business grows.

Bobbi Rebell:
If it really can't work, consider referring them out to someone who does work with people with smaller budgets. They will appreciate it.

Bobbi Rebell:
Thank you all for listening to this episode of Financial Grownup. We are loving all the amazing feedback. Please subscribe, share, rate, review. It matters, and is truly appreciated.

Bobbi Rebell:
Financial Grownup with Bobbi Rebell is a BRK media production.

Million Dollar Listing star Ryan Serhant, whose new book “Sell It Like Serhant” is already a best seller, and his younger brother Jack had what seemed like a brilliant idea for firewood a business at age 10. While the business went down in flames, the lessons formed a foundation for Serhant’s extreme success in the real estate and entertainment business. 

In Ryan's money story you will learn:

-Why he says he was not a natural salesperson

-How 10-year old Ryan and his 7-year old brother started a firewood business to make money on their family farm

-The challenges the boys faced including difficult customers, and uncooperative vendors

-Why they were literally left on the side of the road by a worker!

In Ryan's money lesson you will learn:

-How to deal with challenging customers

-Why you have to anticipate an be prepared with realistic expectations when you start a business

In Ryan's everyday money tip you will learn:

-How to use the faces app to motivate you to work harder for your future!

-The specific way that photo helps Ryan avoid overspending

-The impact that the failure of Lehman Brothers had on Ryan's outlook

Ryan and Bobbi also talk about:

-Why Ryan belonged to three gyms

-Ryan's daily routine and how can apply parts of it to your life

-Tips on how entrepreneurs can structure their days

-Why Ryan studies the top business leaders

-Ryan's Finder, Keeper, and Do-er system

-How many times you need to follow up if you want to work for Ryan!

In My Take you will learn:

-How to use the tips from Ryan's book Sell it Like Servant for both offense and Defense when it comes to sales techniques

-How to take Ryan's strategy of studying high achievers to the micro level and apply it to your own life meeting and learning from others

EPISODE LINKS:

Find out more about Ryan at

https://ryanserhant.com

Follow Ryan!!

Instagram @ryanserhant

Twitter @ryanserhant

Get Ryan’s Book "Sell it Like Serhant"

sellitlikeserhant.com

Check out Ryan’s Vlog! youtube.com/ryanserhant

Learn more about Ryan's hit Bravo shows!

Million Dollar Listing New York

Sell It Like Serhant



BIO:

Ryan Serhant began his first day in the real estate business on September 15, 2008 – the same day that Lehman Brothers filed for bankruptcy in the wake of the subprime mortgage collapse. While the real estate sector has steadily recovered, Serhant himself has quickly become one of the most successful brokers in the world, with agents under his leadership in New York City, Los Angeles, Miami and the Hamptons. The Serhant Team has been named by WSJ Real Trends as the #1 real estate team in New York for two years in a row, and the #2 team in the country, selling close to $1 billion in real estate last year. Ryan is consistently the youngest broker to make the Journal’s top ten list each year.

Ryan stars in the popular Bravo series “Million Dollar Listing New York,” which just wrapped its seventh season. On September 18, 2018 – the week of his 10-year anniversary in real estate – he will debut his first book, Sell It Like Serhant. When pre-sales were announced, Ryan was #1 on Amazon’s daily list of “Movers and Shakers.” As star and producer, this year he also debuted his new Bravo show, "Sell It Like Serhant," started a successful vlog (www.youtube.com/ryanserhant) and launched an app (Agent Empire: NYC). There is nothing Ryan can't do. His motto communicates his professional and personal philosophy, "Expansion. Always. In all ways."

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Transcription

Ryan Serhant:
We got into this fight with this one guy that wanted us to stack his would be in a strange way in his house around all the different fireplaces, because I also didn't prepare for how people wanted the wood actually delivered. And my delivery guy got really pissed off, got in his pickup truck and he drove off and left me and my little seven-year-old brother on the side of the street.

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

Bobbi Rebell:
Hey Financial Grownup friends, that was million-dollar listing star and newly minted author, Ryan Serhant, getting real about his first sale experience. It did not go well. Thanks everyone for joining me. This episode is a big deal, and not just because of Ryan Serhant. He is a big deal, though. It's even bigger because it is Episode 100 of the Financial Grownup podcast. We are also celebrating being a finalist for best new personal finance podcast at the Plutus Awards. And, the paperback of my book, How to be a Financial Grownup, is coming up October 2nd. None of this would be possible without my amazing editor and secret weapon, Steve Stewart. So, thank you, Steve. And thanks to all of you for joining us on this journey.

Bobbi Rebell:
Now, to the fantastic Ryan Serhant. When you read his book, Sell It Like Serhant, and if the title sounds familiar, yes, he has another reality TV show on Bravo called Sell It Like Serhant, you're going to learn more about this incredible guy. But of note, he says he was not a natural salesman. That came later after learning from experience. So, we talked about how he learned about sales and being successful in business. Here is Ryan Serhant.

Bobbi Rebell:
Hey Ryan Serhant, you're a financial grownup, welcome to the podcast.

Ryan Serhant:
Thank you for having me.

Bobbi Rebell:
And happy pub day, we are taping this on the day that you're amazing book, Sell It Like Serhant: How to Sell More, Earn More, and Become the Ultimate Sales Machine, is coming out. It's already a bestseller and comes on the heels of so much other success. Like million-dollar listing New York, and my new obsession, your vlog. So, congrats on all.

Ryan Serhant:
Oh, thank you. Thank you. I appreciate it.

Bobbi Rebell:
I want to talk to you about your money story that you brought. It has to do with the very first experience you had in sales, which makes perfect sense coming from the ultimate sales guy. Tell us about the firewood and your brother.

Ryan Serhant:
So, I wasn't a natural salesperson. And I think it's very hard for people to be born as natural sales people. And what that even means, I could write a whole nother book about it. But I was a very shy and little kid. All I knew was that in order to be able to have money to spend, I had to make money. And if my parents weren't going to give it to me and if I was in school and was too young to get a job, what could I do?

Ryan Serhant:
We lived on a farm outside Boston, and my little brother was seven. We were doing a lot of ... my parents were kind of like cutting down trees and making way for pastures and things like that. And I just saw all these trees laying all over the place. And asked my dad one day, "What are you doing with all of those streets?" He was like, "Wow, they get cut off, they get sold off. They get turned into malts. It just kind of gets recycled." And I was like, "Well, we have fireplaces in our house and we get firewood, don't you buy that from somewhere? What if we take the trees and we cut it up and I sell the firewood?" I had no idea how he's going to do it, I was not big enough to hold an axe. But my dad said. "Okay."

Ryan Serhant:
He said, "What's your company going to be called if you're going to be a firewood selling company?" And we took out a little ad in our local newspaper. I think it was called Ryan Jack, because my little brother's name is jack, Firewood Company. I think that's literally what it was.

Bobbi Rebell:
Who paid for the ad, Ryan?

Ryan Serhant:
We did out of our minimal allowance.

Bobbi Rebell:
Okay. So, this was your startup capital costs?

Ryan Serhant:
Yeah, that was our startup capital cost. Because they were doing all this tree clearing anyway, there was a wood splitter that was already there. And my little brother and I started splitting wood, and we bulk it up into chords, and we put it in the back of a pickup truck. And then we would get the guy that kind of was helping cut down the trees to be our delivery guy to then go supply people with their firewood. And that was our first little business. And it came crashing down.

Bobbi Rebell:
Yeah, that's what I was going to say. There were some challenges, things you didn't think about.

Ryan Serhant:
Well, I didn't think about customer service and how to deal with people who are unhappy with their firewood. All I knew was I live at this house down the street, there's a bunch of cut down trees, we're going to cut it up and sell it. What do you mean that there's different types of firewood, different types of trees, different types of drying, termites, all these things I didn't even think about?

Ryan Serhant:
So, we had some tough customers in the beginning, and I also didn't think about how I was going to get the word anywhere. So, I thought that the guy that was cutting down trees was going to help and just help us drop it off, we're little kids. But he wanted to cut, and then we got into this fight with this one guy that wanted us to stack his wood really really in a strange way in his house around all the different fireplaces, because I also didn't prepare for how people wanted to what actually delivered. And my delivery guy got really pissed off, got his pickup truck, and he drove off and left me my little seven-year-old brother on the side of the street which is random guy.

Bobbi Rebell:
You're kids. Oh, my gosh.

Ryan Serhant:
Yap. That was the end of our firewood business.

Bobbi Rebell:
Wait, in the end, was there a profit or loss when all settled in?

Ryan Serhant:
Definitely a loss. I don't know how much we lost, because I didn't really understand what my time was worth at 10 years old.

Bobbi Rebell:
Exactly.

Ryan Serhant:
And our capital cost was that one ad. We might have run two ads. I can't remember what they cost. Maybe it was 20 bucks and ad. It wasn't a huge loss, but it definitely was a ding to the self-esteem that maybe I don't want to run my own firewood selling business.

Bobbi Rebell:
Glad you moved on to real estate. What's the takeaway for our listeners?

Ryan Serhant:
The takeaway from that is anticipate and be prepared with realistic expectations. Just having wood to chop down and sell it is a very, very small part of actually creating a firewood selling business. So, you need to be prepared for all the objections and all the issues you're going to run into.

Bobbi Rebell:
Which are things that apply to all sales, which we'll get to in just a minute. I just want to get to your everyday money tip.

Ryan Serhant:
Yeah, there's something that I have in the office. That is a photo of myself as an 80-year-old man. There's this app you can get on your phone called the Faces App, someone just showed it to me. You take your photo of yourself and it realistically ages you, which is pretty crazy. But that photo is future Ryan. And every day, I think about that guy. Because I mean, it feels like just yesterday that I was that 10-year-old kid selling firewood or trying to sell it anyway. Before I know it, I'm going to be that guy. And everything I do today is for him. It's not for Ryan this coming weekend, it's not for Ryan next year. All of that is going to happen regardless. But I don't want 80-year-old Ryan pissed off at 34-year-old Ryan because he made poor money decisions or poor savings decisions, or he's just spent too much. That is my money tip.

Bobbi Rebell:
Which is a great one. So, is there a specific ... Can you remember maybe one example of you kind of not being that motivated and then looking at that photo and being like, "Yeah, I got to do this."

Ryan Serhant:
Every time I think about spending money on things that don't need, I look at that photo. It's just like I ... and I don't want to sound cheap. But I don't need that many pairs of shoes. I run around the suit all day long. I don't need that many suits. Little things where I could have spent money and just because I have it or just because whatever, it's just credit, I think about that like, "You know what? I should save it, because compound interest is a powerful thing." And it's better off just being saved because you never know what could happen.

Ryan Serhant:
And at the end of the day, I got into sales business the day Lehman Brothers filed for bankruptcy, and I will never forget the pain that a lot of people went through at the end of 2008. And that's going to come back again, I don't know when. But it's probably going to come back multiple times by the time that I'm that old man in the photo that I have by my computer screen.

Bobbi Rebell:
Let's talk about your book, because I'm learning so much. Not so much as someone that sells, but as someone that is sold to. So, it's quite eye opening, Ryan, the things that happen.

Ryan Serhant:
Thank you.

Bobbi Rebell:
It's kind of written as an offense, but it can also be defense. So, I want to go through some of my favorite things in your favorite things in the book. We talked before we started taping about your day. Tell us how a successful person at age, by the way, you're all of 34, you're always one of the journalist top sales people, you've been winning all kinds of accolades as a salesperson, and you're only 34. What do you? What's your day look like?

Ryan Serhant:
I start my day at 4:30, Monday through Friday. And it's just because I want to squeeze out as much of the day as I possibly can. I don't want-

Bobbi Rebell:
Are you sleeping at 8:00 or ... How much sleep do you get?

Ryan Serhant:
I try to go to bed by 11:00.

Bobbi Rebell:
So, you don't sleep a lot of hours.

Ryan Serhant:
Not Monday through Friday. I'll sleep in on Saturdays to like eight or so. A lot of people just wake up and go to a job or go to work, and they don't really sit down and try to game plan for their career. I only have a few things during the day that I do that I consider part of my job. Everything else I do is for growth and for my career as a whole to make that 80-year-old guy happy one day. And a lot of that goes down to how you structure your actual day.

Ryan Serhant:
And for any sales people who are listening, any entrepreneurs, anybody who really answers to themselves, I had to figure out, what do I do at 9:00 a.m.? Do I cold call? Do I go out on the streets? No one's telling me what to do. And so, I looked at the top companies in the world, even I was just one person and I said, "Okay, all just top companies have CEO, CFO, COOs, I need to have the same thing, even though I'm just one person. So, that means I got to do it all on my own, and not all the same time, I need to separate it. You know what? The CEO, I'm going to call the finder, because I'm not really my own CEO. But I can be a finder of new business, a finder of new leads, a finder of work that the rest of my company can do for the rest of the day. I'm going to do that from 8:00 to 10:00 a.m. 12:00 to 1:00 p.m., I'll be the keeper, so that's the CFO hours. That's when I would think about, "Okay, well, I've $10 to spend today. How many stamps can I buy with that $10?"

Ryan Serhant:
And I would think about kind of the financial health of my "company", which when I first started was nonexistent. And now it's really thinking about all the advertising budgets that we have, and the people and the moving and the salaries. And then the rest of the day, I'd spend being the doer. So, finder, keeper, doer is what I call it, FKD. So, finder, keeper, doer, and the rest of the day I'd spend as the doer, which is the COO. Sets operations, it's doing the work, it's doing-

Bobbi Rebell:
Which just a few can delegate more now.

Ryan Serhant:
Yeah, which now, the majority of my day is as the finder. When I started, the majority of my day was as the doer. I'd think for half an hour or an hour, because I didn't have that much to think about as to how I wanted to grow my business, I didn't have any money. So, that wouldn't take me that long to think about. And then the rest of the day, I put everything into action. Now, I have a team that can handle a lot of the doer work, and a team of accountants and bookkeepers that can handle a lot of the financials. And I spend 75% of my day as the finder, as that CEO trying to build the business.

Bobbi Rebell:
One thing I loved regarding Finder, and getting new business in the book was your strategy initially, and I don't know if you still do this. I can't imagine you have time to do this. You saw that it was working to meet people at the gym, potential clients. So, you expanded on that.

Ryan Serhant:
Yes. I think it's important to do what works for you, and then just to do it over and over again in as many different places as you can.

Ryan Serhant:
I knew when I first moved to New York City, I'm not from New York. It's not going to help me or be a good use of my time to go to school functions that other brokers are going to just because they went to school on the Upper East Side, or to go to the church, or go to the synagogue, just to say that I'm religious, but I'm not, just to meet people, which is what most sales people do. So, for me, I really had work, I would do to the gym. And the gym was a good place for me to meet people who had a similar interest, which was kind of general fitness. And if I go to a nice gym, maybe they also could afford a nice apartment, so they can afford a nice gym. And that worked. I saw it worked. And I said, "Okay, you know what? This is now my thing. So, I'm going to go to another gym as well. And then I'm going to go to another gym. And I'm going to go to as many jobs as I can, because that's what works for me. And that's going to be where I build my network." And then for the first couple years, that's really what I did.

Bobbi Rebell:
What is the thing that you make people do if they really want to work for you? It's not just about one follow up.

Ryan Serhant:
Oh, I make them follow up for a considerable period of time. Because the power of follow up is my whole business. Deals live and die by how persistent I am to get the deal done. And I tell everybody, I don't work for anyone. I work for the deal all the time as a salesperson. And my job is to get that deal done to everybody's benefit. And so, if people want to work for me, I interview them, for sure. I have them interview a couple people on the team. But then I just, I call them. I let them sit and I wait to see how often they're going to follow up with me. Most people will follow up once, twice, maybe three times. And after that, they let it go.

Ryan Serhant:
You know how many deals I would have lost if I let it go after three follow ups? Unbelievable. So, I can't have that kind of person on my team. They got to want to be on my team more than I want them to be there, because that's the person who's going to be hungry enough to get difficult deals done for me.

Bobbi Rebell:
So much amazing information in your book and on your vlog, by the way. We didn't really talk about that. That's million-dollar listing, I didn't really realize this until you talked about it in your book, it's only on for three months of the year. So, people need to be watching your vlog.

Ryan Serhant:
Yeah, I think so. I put it out there as a way to put out a lot of the rest of my life and a lot of things that just aren't on Bravo. Bravo is real estate focused and it follows the individual deals. It's not with me in the car 24 hours a day, kind of in my thoughts and in my mindset, and that's what the blog is for.

Bobbi Rebell:
Awesome. All right. Tell people where they can find you, follow you, find out more, get the book, all that good stuff.

Ryan Serhant:
The book just came out today, it's called Sell it Like Serhant, it's everywhere books are sold. Amazon, Barnes and Noble, you can find all the links at sellitlikeserhant.com. You can find me across all social media platforms at Ryan Serhant, and the vlog is @youtube.com/ryanserhant.

Bobbi Rebell:
Thank you, Ryan. This was great.

Ryan Serhant:
Thank you.

Bobbi Rebell:
Let's unpack some of the things that Ryan said. Financial Grownup tip number one. I read Ryan's book twice. The reason I went back was to take notes. Now, I'm not in sales, at least not in a direct way. But I think it is important for all of us to understand how sales work, and the specific techniques that are being used so you can spot them. I joke about offense and defense, but that is important too. Because if we're being honest, who hasn't bonded with a salesperson, and then because of that felt they should, and sometimes did buy something they maybe wouldn't have bought otherwise? Always know that a good salesperson like Ryan will be in it for the long haul. And you can just push back. And even if you aren't a customer, now, you may be in the future. Also, the next best thing you can do is refer them to friends and family as potential customers. It's okay to do what's right for you, even if you feel an allegiance to the salesperson. We're all human.

Bobbi Rebell:
Financial Grownup tip number two. Ryan talks about how he studied the most successful companies and what top executives do. Take this to a micro level and find someone that you admire and ask them if they will talk to you. It can be coffee, a meal, or going for a walk. And if you can, maybe even ask if you can shadow them for a day at work. I did this early in my career. Just observe and learn. And if they're open to it, ask a lot of questions. Most people are flattered.

Bobbi Rebell:
On that note, I am off to Orlando to FinCon and celebrating this 100-podcast milestone with some friends. I hope you guys will DM me and let me know what you want to see in the next 100 episodes. On Twitter, I am @bobbirebell, Instagram @bobbirebell1. I have some big changes coming that I will reveal soon, so please subscribe and make sure you go into settings and hit auto download so you don't miss any episodes. Until then, feeling really grateful to Ryan Serhant 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.

After appearing on Shark Tank, The Sole Mates’ Becca Brown and Monica Ferguson found their best business support came not from the sharks but from a resource that would become key to their growing success. 

In The Sole Mates money story you will learn:

-New details about their Shark Tank experience- including the awkward conversations they had with well-meaning friends before their episode aired

-What happened after their appearance as they became part of the Shark Tank Alumni group

-The role the private Shark Tank Alumni group plays in their current business strategy

-Specific examples of business opportunities that have come their way from being part of this exclusive group

-Details of how they were able to get a major national retail deal that elevated their business

-How they got involved with the NFL

In The Sole Mates money lesson you will learn:

-Specific ways to find entrepreneur groups that fit your business needs 

-Strategies to work to grow organic networks

In the Sole Mates every day money tip you will learn:

-Which luxury shoe brands best retail their value

-How to make sure you don’t lower the value of shoes you intend to sell

-The best strategy and what to look for when buying pre-owned shoes 

Bobbi and the Sole Mates also talk about

-The impact of the national CVS deal on their business

-Other ways they leveraged their Shark Tank experience

-The human element to big brands

In My Take you will learn:

-My strategies for buying gently work handbags and clothing

-How to apply re-sale strategies beyond shoes, to things like wedding dresses

EPISODE LINKS

thesolemates.com

Follow The Sole Mates!

Instagram @thesolemates

Twitter @thesolemates

Facebook The Sole Mates

Shark Tank 

CVS

Amazon.com

Facebook.com

Good Morning America

The View

The NFL

THEREALREAL.COM

Christian Louboutin

Gucci

Heidi Klum

Vera Wang

Oscar De La Renta

Here is an article from one of my favorite websites, The Knot, on used wedding dresses

https://www.theknot.com/content/used-wedding-dresses-buy-sell-online

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Transcription

Becca Brown:
If someone says, "Hey, this person is a crook. Don't work with them," It's a warning to all of us, like, "Oh, I just got a similar call. Everybody be on warning. Don't take these calls."

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. We all need someone in our corner. Actually, we need as many people as possible in our corner. And for entrepreneurs, connections are everything, which is part of the appeal of the show Shark Tank. A deal with one of the sharks, in addition to money of course, opens doors. But a lot happens also after the cameras stop rolling that we don't hear about. More about that from our guest in a minute. You might be surprised.

Bobbi Rebell:
But first, we have some exciting news to share. Financial Grownup is a finalist for Best New Personal Finance Podcast from the Plutus Awards, which celebrate money-related content. And this October my book, How to Be a Financial Grownup, will be coming out in paperback. I hope you pick up a copy, if you have not already. And maybe tell me what you think, and send over some ideas for another book.

Bobbi Rebell:
Back to Shark Tank and our guests, those Solemates co-founders, Becca Brown and Monica Fergusen. They left their jobs at Goldman Sachs to start a company making heel protectors under the brand Solemates, and their products have become huge hits among celebrities. Names like Oprah and her buddy, Gail King, and countless women, including myself. As you will hear, some men as well.

Bobbi Rebell:
So they went on Shark Tank and they got a deal, but the deal actually didn't happen. However, a lot of maybe bigger things, longterm, long "tail", I guess we call it. Big things happened afterwards in a way that I had no idea even existed. Here are the co-founders of Solemates, Becca Brown and Monica Fergusen. Hey, Becca Brown and Monica Fergusen, you guys are financial grownups. Welcome to the podcast.

Becca Brown:
Thanks.

Monica Fergusen:
Thanks, Bobbi.

Bobbi Rebell:
You are the names behind the Solemates, which started with heel protectors, and now have a whole line of many, many things to help us keep our shoes in good shape and weather all kinds of hazards, like weddings. So congratulations on the success of Solemates.

Monica Fergusen:
Thank you, thank you, thank you. You know, we like to say that our goal is to make you more comfortable in your own shoes.

Bobbi Rebell:
Love that, and so does Oprah, by the way. You guys have got amazing press, so many big fans. You also got a lot of press because you were on Shark Tank, where you actually got a deal, after the fact though. And you've talked about this. The deal did not happen for various reasons. But the most interesting thing, I think, that you're going to talk about in your money story is what happens after. Tell us your money story.

Becca Brown:
Yeah, well, thanks for having us, Bobbi. This is Becca speaking. So obviously being on Shark Tank was an amazing experience. We were so thrilled to have that opportunity. But honestly, one of the biggest pleasant surprises to doing the show was what happened afterwards, which is we became part of this incredible, dynamic group of Shark Tank alumni companies; other companies that have been on the show. We are all part of this private Facebook group, and it has been literally the best resource for us to continue growing our business because it's like-minded individuals with, a lot of times, product-based businesses that are growing their companies. And we all are going through the same growth trajectories and sharing ideas and feedback and resources and it's been such an amazing resource for us.

Monica Fergusen:
Every time we would tell someone about what we did, the response was, "Oh, that sounds like something that should be on Shark Tank." And before you go on the show, you can't tell anyone you're going on the show, so it was a very frustrating time for us-

Bobbi Rebell:
Wait, so you knew ... How far in advance before you actually ... first of all, before the taping, and then before it aired ... did you know? How long were you this keeping the secret?

Monica Fergusen:
Well, it was probably only a tight, tight, tight secret for a few months. The application process is really long and really from the time you start applying, you're pretty tight lipped about it because there's no upside in telling people what you're trying to get on. So it was a lot of forced smile responses of like, "Oh, what a great idea. We had not ever considered that"

Bobbi Rebell:
Oh my gosh. So now you have this alumni group. Tell us more about the kinds of discussions and the kinds of advice that you've gotten from that and how has that helped your business?

Monica Fergusen:
The physical manufacturer of goods and the sale of goods comes with it a really unique set of problems including sourcing, including, web development, including your relationship with Amazon, including your PR, your social media, your relationship with influencers and traditional media, your relationship with employees. What kind of benefits do you set up? Do you have your own warehousing? Do you outsource it? There's so many things that come with every part of the business that to date we've kind of operated in a little bit of a vacuum where we leveraged them for everything daily. Being on the show it's a really cool and unique experience and I feel like it's also very much like a reflection of our culture right now, so in 25 years people will have no idea what we're talking about and Shark Tank is that right now and so it's cool to be a part of something that's so like of the moment culturally, which has also helped us grow our business in really unexpected and cool ways.

Bobbi Rebell:
Tell us more about the unexpected and cool ways the business has grown?

Becca Brown:
Well right after airing, we actually reached out to a couple of big mass retailers. CVS Pharmacies was one of them and the timing was perfect. CVS happened to be looking into building out a whole new category around fashion solutions and accessories and we had just had this massive exposure being on Shark Tank and so the buyer was willing to meet with us and literally like a month after Shark Tank, we went up to Woonsock at Rhode Island and met with the buyer and ended up launching in 5000 retail CVS pharmacies a few months later.

Bobbi Rebell:
Wow. Did you go into the Facebook group and tell them about this and what was the reaction?

Becca Brown:
No, it's not really a place where you go and brag. Okay, so if I post a query today saying, "Hey, does anybody happen to know somebody that is working in media covering women's shoes?" Chances are within an hour I would have several responses like, "Oh, I know this person. I know that person."

Monica Fergusen:
Right. It's really, has anyone had this problem or has anyone met this person who's so helpful? It's asking questions and sharing a best practice. So like, "Hey, do you know if you contact Amazon on Sundays and you get the help desk in Ireland, there are much more likely to help your brand do X, Y, and Z if you get, I will not name a country, country on another day, hang up. Because like if [inaudible 00:07:09]

Becca Brown:
And I want to add to that too because I used to rent zip cars and that the sort of ethos of Zip cars was the community takes care of itself and you take care of the car and you return it with gas so that the next person can use the car. And I feel like our Shark Tank group carries that same sort of ethos. We take care of each other. We're looking out for one another. If someone says, "Hey, this person is a crook, don't work with them." It's a warning to all of us. Like, "Oh, I just got a similar call. Everybody beyond warning don't take these calls." And so we all are only as good as what we contribute and we are genuinely wanting to help one another.

Bobbi Rebell:
Can you give me an example of wind that happened for you guys or for someone else in the Shark Tank alumni Facebook group that may not have happened without that network?

Becca Brown:
Good morning America and the television show The View. They do these really cool segments that are kind of like flash sales and on The View it's called view your deal and one of the. Actually two of the other Sharks Tank companies in our group have done view your deal before and they were so kind to introduce us to the group that runs that. So we did it in July.

Monica Fergusen:
And it was a great revenue generator and then more recently someone asked, anyone have products that would be interesting for NFL players in their fall training. So we're like, you know, we have products that we market for women but the product certainly work for men in hot pink packaging with high yield on it. If they're open to it, we're open to it and the managers looked at our product line and were like, "These products are amazing."

Monica Fergusen:
And so a 110 NFL players have been using our blister blocker and antibacterial spray as a result of some of the Shark Tank group The Newson sports managers who are looking for products for gift bags and looking to create relationships between celebrities and product companies and get nothing from it. Like the people in the group get, there no economic gain for them. It's more people they know have been put together with other people they know and that kind of goodwill you realize as you get older. It doesn't exist in that many places in the world people are often looking like, what can I get out of this? Or I can introduce you but like what's my take? And that is definitely not in line with the spirit of the Shark Tank group.

Bobbi Rebell:
What is the lesson for our listeners from that?

Becca Brown:
I think a lot of entrepreneurs, if they make a leap to start off their own business, they've come from a company where there's a lot of infrastructure, a lot of resources that you may have taken for granted and when you venture out on your own, as Monica touched on, it's very isolating and I think it's very important as soon as possible to start building a really strong organic network that is going to help you grow your business. And so obviously not everybody is going to be able to be part of the Shark Tank alumni group, but I mean looking at other entrepreneurs groups in your area, leveraging like the Chamber of Commerce, leveraging the small business administration. I think looking at your alumni network, a lot of times alumni networks do have an entrepreneur focus. There's like a sub network and it just can be so much more helpful to have that kind of a focus network because everybody's kind of in it to help one another, but also to expand and grow their businesses.

Bobbi Rebell:
You guys brought a fantastic shoe themed everyday money tip, do you tell?

Monica Fergusen:
Yes. So we're in the business of shoes and we are both appreciators and to some to be collectors of nice shoes. Not all high heels but many high heels, but something I think people should take in mind when they are considering a purchase of new shoes is that sometimes the more you spend, the more you can get back. And if you look at the success of the secondary market, the used clothing market for shoes, it's thriving, but in particular Christian Louboutin and Gucci are two brands that stick out as having the strongest bid for their gently used shoes. If you spend a thousand dollars, God bless you on a pair of shoes, the real real Mike Compu is several hundred dollars when you sell it again.

Bobbi Rebell:
What do you mean by Compu?

Monica Fergusen:
I mean they will have someone buy from you.

Bobbi Rebell:
Okay.

Monica Fergusen:
To make it simple. It's $500. So your net cost on that shoe is only $500. Whereas a lot of other designers that are not quite as high don't have a strong secondary bid. So you're unlikely to recoup any cash when you try to sell them. If you try to sell them, but Christian Louboutin and Gucci in particular, the real real has reported have done phenomenally

Bobbi Rebell:
So interesting. What about the fact that they are worn a little bit? Can you get them resoled? How does that affect the value, if you like with the Christian Louboutin, those are the shoes. Just so people know. I personally, by the way don't own any, but maybe some day they have the red bottoms, so what happens if you've worn it? Can you get them sort of resold? Because I resell a lot of shoes sometimes if I like them. Does that hurt the value? If you then put on new soles, can you paint them red? Does it matter?

Monica Fergusen:
It actually hurt the value. Done something like put on a new sole. They want the shoe to be in pretty good condition. I don't want to plug my own product too, but using things like a heel protector is a great start because the damaged heel-

Bobbi Rebell:
Which you should do anyway, whether you're going to sell it or not?

Monica Fergusen:
Well absolutely, but a damaged heel really can't be fixed. So you wear a little heel protector, keeping that heel in perfect condition, therefore it's so much easier to sell it. As someone who sells a lot of shoes, I can attest the lifetime value of the heel protector exceeds its retail value because it's a gold age-

Bobbi Rebell:
Well how much is, I mean they're not expensive. How much is a heel protector?

Monica Fergusen:
$10.

Bobbi Rebell:
Exactly.

Monica Fergusen:
And that $10 is probably generated hundreds of dollars in resale for me on my shoes.

Bobbi Rebell:
What about buying shoes secondhand? What do people need to know there, what should they look for? Any tips?

Monica Fergusen:
So it's actually great to buy a shoe secondhand. And I have no economic interest in the real real, but I'm a big fan of theirs.

Bobbi Rebell:
Oh, I've sold stuff fair. They're great.

Monica Fergusen:
Yeah. But you can feel comfortable buying stuff from them too because they do have a really sharp guy and discipline and what they'll accept and they'll take anything back for them. I mean they'll let you know before you buy it, if it's final sale, but for the most part things are returnable.

Bobbi Rebell:
All right. Let's talk a little bit about Solemates. So what's going on with you guys? You're everywhere these days.

Monica Fergusen:
We're trying, we're trying. I mean CVS has been a great boon for our business and brought us in so many new customers and such great exposure and it's also been really fun to meet the brands that were sold within CVS. I mean it's more, again, more like-minded people, non Shark Tank brands. But we reached out to the other brands that were sold with just to introduce ourselves. A lot of them are based in our area, so we've been able to actually get together and have coffee. I think people sometimes forget there's a human element to everything. And so these massive brands that have names are intimidating because they've got Heidi Klum on their packaging, but they're run by real people that have real jobs and do a lot of the same things that we do.

Bobbi Rebell:
So tell us more about where people can find you and keep up with all the new products that you guys will be putting out?

Monica Fergusen:
Yeah, so we're @thesolemates on Instagram and twitter and Facebook and our website is thesolemates.com where we're sort of up to date with all of our retailers and all of our products were sold at CVS, DSW, David's bridal, Von Mar, about a thousand independence all listed on our website. Always changing, always, hopefully, always growing our website and Amazon.

Bobbi Rebell:
Great. This has been wonderful. Thank you so much.

Monica Fergusen:
Bobbi. Thank you so much-

Becca Brown:
Thank you Bobbi.

Bobbi Rebell:
Hey friends. Not your typical everyday money tip, but personally I kind of loved it. There's nothing wrong with having fantastic shoes. If you can get them at a huge discount, barely worn even better, but know to buy. Financial Grownup tip Number one. So the same idea goes for other things that you may not think you can afford or want to spend big money on, but if you buy gently used ones, maybe they do fit into your mindset. For most of us, it's really about getting past that psychological barrier, whether it's the idea of buying something that has been gently worn or just the idea of owning something that is so expensive. Even if you didn't pay the original retail price, so it's important to look for niche sites that specialize in what you want.

Bobbi Rebell:
The Real, real that Monica and Becca referenced is luxury, especially shoes and handbags, but you can also look, for example, for wedding dresses, so according to The Knot a used wedding dress in great condition can sell for 50% of the retail price. Just as is the case with shoes. Some designer names like Vera Wang and Oscar De La Renta will get a higher percentage. So if you want to go really high end and you know you're going to sell your dress after your wedding, know what you're buying so you know what you're selling and you can maybe choose a designer assuming that you liked that designer because you're going to be of course wearing the dress, which is the most important thing, but maybe if you're selecting between two, select a designer that will have the higher resale value. I'm going to leave a link to The Knot with some websites that you can check out.

Bobbi Rebell:
If you want to know more, including or to possibly even rent a wedding dress, the show notes that will have all this information are @bobbirebell.com/podcast/the soul mates. Financial Grownup. Tip number two, turn lemons into lemonade like the ladies did. Their deal fell through, but in the end, Monica and Becca leverage the Shark Tank experience and grew their business from the show anyway. Setbacks are only that and while they are a mum about why exactly the deal didn't happen ultimately my sense is that it just didn't work for both parties when it came down to it and that's okay. No deal is better than the wrong deal and that's a great lesson from Becca and Monica.

Bobbi Rebell:
Alright everyone. Please be in touch DM me on all the socials. I am @bobbirebell1 on Instagram, Bobbirebell on twitter, and sign up for our newsletter@Bobbirebell.com and thank you for a great story to Becca and Monica. So much we didn't know about Shark Tank and 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.