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

In Tina’s money story you will learn: 

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

-Why the art meant so much to Tina

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

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

-What inspired Tina to start collecting art as a teenager

-How the art now has multi-generational significance

In Tina’s money lesson you will learn:

-The importance of commemorating milestones in life

-Creative ways to marking important moments including crowdsourcing

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

In Tina’s money tip you will learn:

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

-The specific things tina’s grandmother would say

-Tina’s philosophy of never being afraid to ask

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

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

In my take you will learn:

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

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

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

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

EPISODE LINKS:

Learn more about Brandless on their website: Brandless.com

Follow Tina and Brandless!

Instagram: @tinasharkey @brandlesslife

Twitter @Tinasharkey @brandless

Facebook: Tina Sharkey  Brandlesslife

 

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

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

As Tina mentioned, her art hangs at museums including Moma

 

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Transcription

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

In Amanda’s money story you will learn:

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

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

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

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

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

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

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

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

In Amanda’s lesson you will learn:

-How she battles her nerves in high stakes negotiations

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

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

In Amanda’s money tip you will learn:

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

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

-Amanda’s favorite places to get discounts and freebies

-What Amanda got for free recently at SoulCycle

-Why Amanda keeps getting water bottles

In My Take you will learn:

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

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

-Tips to be more confident in a negotiation

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

EPISODE LINKS

Amanda’s website: amandaabella.com

Amanda’s podcast

Amanda’s course on becoming an influencer

Follow Amanda!

Twitter @amandaabella

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

Facebook Amanda Abella

Soulcycle.com where Amanda loves to get free stuff!

Check out Amy Cuddy’s Ted Talk!

 

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Transcription

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

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

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

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

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

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

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

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

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

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

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

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

Amanda Abella:
Yup I literally do all the things.

Bobbi Rebell:
All the things.

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

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

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

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

Amanda Abella:
Financial software.

Bobbi Rebell:
Okay.

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

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

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

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

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

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

Bobbi Rebell:
Wow.

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

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

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

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

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

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

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

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

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

Bobbi Rebell:
Of course.

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

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

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

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

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

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

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

Bobbi Rebell:
That's so random.

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

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

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

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

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

Bobbi Rebell:
Okay. Pretty good.

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

Bobbi Rebell:
Oh OK.

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

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

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

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

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

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

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

Bobbi Rebell:
Thank you.

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

Bobbi Rebell:
Thank you.

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

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

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

Bobbi Rebell:
Thank you Amanda.

Amanda Abella:
Thanks so much for having me.

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

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

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

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

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

Jen Hemphill and her husband believe in supporting family, but when the author of Her Money Matters, and the host of the podcast of the same name, was asked to lend money to a relative, she realized it would come at a cost to her own financial well being. 

In Jen’s money story you will learn:

-How she and her husband have different approaches to helping family financially

-The role emotions play in decisions about lending and/or giving to family

-The impact Jen’s upbringing and her parents attitudes towards money played in her approach to lending and gifting money to family

-How communication issues can impact financial decisions

In Jen’s money lesson you will learn:

-Jen’s advice in how to respond when family needs financial help

-How you can prepare to be able to help family when it is needed

-How to stay on track with your own goals, even if family needs help

-Why Jen feels it is always better to gift than to lend to family

In Jen’s money tip you will learn:

-The specific strategy she uses to separate funds and save for goals

-How she applies her strategy of separate funds when it comes to every day savings at places like the grocery store

-How to use apps to facilitate using her strategy to save money

In my take you will learn:

-What to keep in mind when friends and relatives ask you for help

-Strategies to have money available for that purpose

-How to say no when helping financially is not in your budget

 

EPISODE LINKS

Get Jen’s new book!

Her Money Matters: The missing truth from traditional money advice

Follow Jen!

Twitter: @jenhemphilll

IG: @jenhemphill

Facebook https://www.facebook.com/jennifer.hemphill

 

---

Transcription

Bobbi Rebell:
Support for Financial Grownup with Bobbi Rebell and the following message come from Transferwise, the cheaper way to send money abroad, built by the brand behind Skype. Transferwise takes a machete to the hefty fees that come with sending money abroad. Don't get sting by a bad exchange rate, or sneaky fees, join the two billion people who are already saving with Transferwise. Test it out for free at transferwise.come/podcast, or download the app. It is the wise way to send money.

Jen Hemphill:
We lent him the money, or actually gave him the money, and never saw it back. We had debt. We had things that we needed to pay for, things that we needed to purchase, and it also diminished our abilities to have that extra money to pay the debt that we had. Right? It was a very conflicting time.

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

Bobbi Rebell:
Hey, friends. Thanks for joining us for this addition of the Financial Grownup Podcast. Before we get to our amazing guest, I am getting great feedback from all of you about these video promotions that we have been running to support the show, and you're asking me a bunch of questions, so I'm going to answer a few of them here. The first question everyone is asking me is, who is making them for me, who did I hire? I didn't hire anyone, I'm doing them myself. As you guys know, I love to learn new things, different technology, different programs, so I taught myself how to do them, and I'm having a great time.

Bobbi Rebell:
Second question, I keep being asked is, where can I get them made for myself? Well, I am not going to go into the video promotion business, I'm just going to be doing it for Financial Grownup, at least for now, never say never. But in answer to the request, I am going to run a fun contest. For the next month or so, until early July. The first week in July, let's say, we are going to have a competition, where if you see the video promotions for Financial Grownup on social media share them, and whoever shares the most by the first week in July, I will make a video promotion for you. It can be for your business, it can be for an event that's coming up, it can just be for you, it can be a birthday message for a friend, or for your child. Whatever it is, anything reasonable we will make a fun video, and that will be my gift to you guys.

Bobbi Rebell:
Okay. Onto our guest, Jen Hemphill. She is the host of the podcast, Her Money Matters, and the author of a new book by the same name. She is a big believer in helping family, but as a money expert she's also aware that sometimes those asked to give money may not really be in the best position themselves to be the ones giving. What do you do? Here is Her Money Matters, Jen Hemphill ... Jen Hemphill, you are a financial grownup. Welcome to the podcast.

Jen Hemphill:
Thank you so much for having me, Bobbi. I'm excited to be here.

Bobbi Rebell:
I'm excited to hear more about your new book, Her Money Matters, which of course same title as your amazing podcast. Tell us just briefly about it, and we'll talk more about it after your story.

Jen Hemphill:
Sure. Basically, the whole premise of the book is to give more of a holistic approach to personal finance. It's not a book that's going to tell you how to budget, how to get out of debt, but really it's about the missing pieces that a lot of people don't talk about, because all we hear about save more, spend less, and get out of debt, but there's the emotional component of money that I dig a lot into, as well. It's really more the missing pieces, that is really not talked about, in general.

Bobbi Rebell:
Okay. I want to get to your money story, because it has to do a lot with emotion, and the feelings behind when you gift, or lend money to friends, and family, because they can be sometimes the same things, sometimes lending becomes a gift, and you and your husband have very different approaches to it. Tell us about the first time this came up.

Jen Hemphill:
Well, the first time this came up was when we were first married, so this was almost, we'll be married almost 18 years, so this was-

Bobbi Rebell:
Congratulations.

Jen Hemphill:
Our first, oh, thank you. This was our first year in our marriage. We're a military family, we were stationed in Clovis Air Force Base in New Mexico.

Bobbi Rebell:
Wow.

Jen Hemphill:
First year married, we were really still trying to get to know each other, all the newlywed stuff. He got a call from my brother-in-law, and he, my brother-in-law apparently had hit a financial hiccup, and he reached out to his brother for help. Now, I grew up in a household that was very giving. My parents literally grew up in Columbia, and they always helped people. There was always people that would stay at our home, with their family, or some friends. My parents were always givers, even when they didn't have to give. Right?

Bobbi Rebell:
Right.

Jen Hemphill:
I saw that a lot growing up. I knew the financial struggles that they dealt with.

Bobbi Rebell:
We're they dealing with financial struggles because they gave more than they could afford?

Jen Hemphill:
I don't think it was that-

Bobbi Rebell:
Okay.

Jen Hemphill:
That might have been a component, but not all of the components. Right? But it was partial, because I saw them giving, and giving, but they were still trying to get their money stuff together. Right? I saw a lot of that. When I met my husband, one of the things that I love about him is his big heart. He is definitely a giver. He's also a spender.

Bobbi Rebell:
Are you the saver to a spender, by the way?

Jen Hemphill:
Yeah. I'm also a saver.

Bobbi Rebell:
Okay.

Jen Hemphill:
When my brother-in-law reached out to him, we had the conversation, granted again, we were newlyweds. We were trying to figure this thing out, and I can't remember the exact $1.00 amount, but it was more than $500.00.

Bobbi Rebell:
Do you know what kind of situation it was? Was it like a medical operation? Was it a business situation?

Jen Hemphill:
It was behind on bills, collections. Those type of things.

Bobbi Rebell:
Your husband wanted to give him a loan, not a gift a loan?

Jen Hemphill:
Well, he told me a loan, but I knew him.

Bobbi Rebell:
Okay.

Jen Hemphill:
He's a giver. He's not going to expect it back. Where I was more, in my mind, a lender. If you're asking us to lend you money, I'm like, “Okay. You're going to pay us back.” We had debt. We had things that we needed to pay for. Things that we needed to purchase. Literally, at that time we just had our checking account, and our savings account and literally whatever savings went into our savings account, so it was the emergency account, it was when we overspent, it was for big purchases, so everything that was needed that wasn't in our checking account came from the emergency fund. It literally got depleted fast, and it also diminished our abilities to have that extra money to pay the debt that we had. Right? It was a very conflicting time. We had this conversation-

Bobbi Rebell:
[crosstalk 00:07:19]-

Jen Hemphill:
We lent him the money, or actually gave him the money, and then never saw it back.

Bobbi Rebell:
Right. The communication to him, was it, “We are lending you this money,” and he didn't pay it back, or was it, “We are gifting you this money.”

Jen Hemphill:
That's a good question.

Bobbi Rebell:
Good luck with it.

Jen Hemphill:
Because my husband had that conversation with him.

Bobbi Rebell:
Okay. We can't really blame your brother-in-law, because for all we know he was told it was a gift, to be fair.

Jen Hemphill:
Right.

Bobbi Rebell:
What is the lesson, now, 18 years later, you guys happily still together, what is the lesson for our listeners? How would that go now? Would you put your foot down more? What would happen now? What do you think listeners should do? Should they be in a similar situation?

Jen Hemphill:
What we've done is, we included this in our budget, so we set some money aside in a different account, and whenever a family member needs help, we just look at what's in that account, so that way it doesn't really disrupt what we're trying to do financially, and the goals that we're trying to achieve. There's a designated amount that goes in there every month, and currently has just been to help grand mom with some bills, and that's what we work with.

Bobbi Rebell:
It sounds like you've basically come to terms with you're just going to gift it.

Jen Hemphill:
Yeah.

Bobbi Rebell:
None of this lending to family, it doesn't work for you.

Jen Hemphill:
Yes, because then emotionally that's either get upset, “Oh, my gosh, we said we were going to lend it, we never got it back,” so I've learned and grownup.

Bobbi Rebell:
All right.

Jen Hemphill:
Over the years to really, when it comes to family, and friends, and when it deals with money, it's just a gift.

Bobbi Rebell:
But your money tip, your every day money tip is also about separating out funds, that seems to be a common theme for you-

Jen Hemphill:
Yeah.

Bobbi Rebell:
You want to talk about what you do at the grocery store, and how you can use apps for this.

Jen Hemphill:
Yeah. Basically, my money tip is, what we tend to do, let's say we're at the grocery store, and maybe we have some coupons, always strike up a sale, and we're winning. We celebrate, “Yes. I've saved X amount this trip,” but what's important here is, yes, we can celebrate the $20.00, or $10.00, whatever that amount is that we saved, but what are we going to do with that money? Because we're missing out if we're just celebrating it, that we saved that money, but we're not doing anything with it.

Jen Hemphill:
Literally, we have the bank up on our phone. Right? And with so many people having smart phones, you can download your bank app, and whatever that amount of money that you save, transfer it to your savings, or transfer it to pay off some debt. Whatever you deem is best in your situation. But doing that versus just leaving it in there, you know it disappears. That money doesn't have a job, if you will, it just disappears. We've seen it time and again. I know I've experienced it, I'm sure you Bobbi have experienced it yourself.

Bobbi Rebell:
Absolutely. All right. Let's talk more about your book. I'm so excited for you.

Jen Hemphill:
The book, oh, my goodness. The subtitle of the book is, The Missing Truths From Traditional Money Advice, so when we think of traditional money advice, we think about, we really hear, “Save more, spend less, and get out of debt,” but I know from my own experience, I had the financial books, I've read those financial books, I applied what the experts told me, and I was still finding myself stuck. In the book, I really share the lessons that I learned, and what I found out that really kept me stuck after doing all the things right.

Bobbi Rebell:
Awesome. Where can people find you?

Jen Hemphill:
Thank you. You can find all about me at jenhemphill.com. You can find the book there, or you can just go on Amazon, and just type in, Her Money Matters. It also has a companion workbook, because-

Bobbi Rebell:
I love that.

Jen Hemphill:
My audience wanted worksheets, and so they ask, I provide. Each chapter has some questions, some worksheets for you to work with, because essentially I want that to be your cheat sheet. If you're feeling stuck, go back to that work, and go back to that workbook, if you buy the workbook, and refer to that, because that's going to help you get out of that funk that you're feeling.

Bobbi Rebell:
I love that balance between emotional and then very specific practical tools. It's great. Thank you, Jen.

Jen Hemphill:
Thank you, Bobbi.

Bobbi Rebell:
Jen's story was a reminder that family really can be everything, however you define family. We should bend over backwards to help out the people that we care about in our lives. In Jen's case even though her brother-in-law did not pay back that loan, as time went on the asks for financial help from family did go down.

Bobbi Rebell:
Financial Grownup tip, number one, remember it's hard for people to ask you for help, so factor that in when deciding what to do when someone comes to you asking for help. If you are able to help them with their financial troubles, it's usually a better idea to just give them money. If you lend them money, it becomes yet another thing that they need to pay back in a very stressful time. Of course, it can also put stress on your relationship with them. They might avoid you. They might feel like you're judging them, if they buy something. It's better to just keep it clean, give them the money. You know what? Someday you may be in a position where you need their help, and they'll be there for you.

Bobbi Rebell:
Financial Grownup tip, number two. Jen talked about compartmentalizing money. Setting funds aside in different accounts for different purposes. This can be a great way to deliberately save for certain things like a slush fund for relatives that need help. Another thing that I have found can make a lot of sense to do is to put a certain amount of money, or allocate a certain amount of money, maybe on an annual basis to support friends, charities, causes that they care about.

Bobbi Rebell:
That way when people ask for you to support whatever they're involved in, it might be a charity run, or some other fundraising effort, a benefit, you can take the money out of that fund, and if at some point in the year, I mean, you got to be real, here, the funds could run out, you can tell them, “Look, I've completed my giving for the year, but I will send a donation in January.” People understand. Your resources are not unlimited even if your heart is.

Bobbi Rebell:
If you have not hit the subscribe button, please do so that way you won't miss any upcoming episodes of Financial Grownup, and of course you score extra bonus points with us if you rate and review the show. That way other people can learn about it, and be part of our community. Our first listener episode is coming up in June, if you want to be considered to be on an upcoming episode of Financial Grownup, email the money story, and the money tip that you would like to share to info@financialgrownup.com. We are going to see how it goes, and hopefully we'll be doing this once a month.

Bobbi Rebell:
A reminder, if you want to see the promo videos, they are sprinkled throughout our social media, and also we are putting them on our new YouTube channel, which is Financial Grownup, so you can easily just check them out there. You can also see our episodes there, you can listen to them I should say on YouTube as well. In social media, I am on Instagram, at Bobbi Rebell one, on Twitter at Bobbi Rebell, and on Facebook, Bobbi Rebell. Definitely DM me, give me feedback, let me know what you think about the show, let me know guests you want to see, and let me know which promo videos you like the best.

Bobbi Rebell:
Of course, speaking of the promo videos, as I said at the top of the show, if you want a promo video for yourself, share them, retweet them, repost them, and whoever does the most social sharing between now and the beginning, the first week of July, I'm going to make a promo video for you. Jen's story was a great one, all about doing our best for our family, and our friends, and the people that we care about in our lives, such an important topic, so thank you, Jen, for helping us get one step closer to being Financial Grownups ... Financial Grownup with Bobbi Rebell is edited, and produced by Steve Stewart, and is a BRK Media production.

 

An unexpected instagram connection helped New York City artist Kristin Simmons pivot from her start in advertising to a full-time, award-winning, and profitable art career. Her provocative work is informed by the excessive, materialistic cultures of Wall Street and New York City. 

 

In Kristin’s money story you will learn:

-How she made her first art sale while working in advertising

-The hashtags she used to attract a buyer to her work

-The price of the first piece of art she sold

-Why so much of Kristin’s work is tied to money and consumerism

-Her take on millennials attitudes about money and materialism

-Kristin’s background and how it led her to her career as an artist

-How the art world works when artists use galleries, versus when they self-promote on social media

-How you can buy art that is affordable

In Kristin’s money lesson you will learn:

-Her advice on how to follow your dreams, and still pay your bills

-Ways to use social media to leverage your skills and the content you create

-Pricing strategies for art

In Kristin’s money tip you will learn:

-How having the right basic ingredients at home will help you make more meals at home, and save money

-Kristin’s favorite 5 foods to have on hand

-Where Kristin goes for her recipes

In My Take you will learn:

-How to buy art as an investment

-When to use a gallery and when to seek out an artist directly

-How to use social media to research and find art to buy

-Why insurance needs should always be considered when you buy art

You will also learn how you can win a promotional video, like the ones for financial grownup for your own business- or just for yourself. 

EPISODE LINKS

Kristin Simmons website: https://www.kristinsimmonsart.com/

The name of the arts gala she is performing at on June 7th is ChaShaMa: https://www.chashama.org/event/gala2018

This summer Kristin’s art can be seen at Galerie Mourlot (https://mourloteditions.com/) as part of the Hamptons art fair (http://artmarkethamptons.com/) in early July. 

Research and buy art on some of Kristin’s favorite sites:

Mourlot editions

Wide Walls

Art Space

Paddle8.com

Also mentioned: RealSimple.com

Follow Kristin!

Instagram https://www.instagram.com/kristinsimmonsart/?hl=en

Facebook https://www.facebook.com/kristinsimmonsart/?ref=bookmarks

Twitter https://twitter.com/Kristins_Art

LinkedIn https://www.linkedin.com/in/kristin-simmons-07596031/

An unexpected instagram connection helped New York City artist Kristin Simmons pivot from her start in advertising to a full-time, award-winning, and profitable art career. Her provocative work is informed by the excessive, materialistic cultures of Wall Street and New York City. In this Financial Grownup podcast episode you'll learn which hashtags to use to attract buyers on instagram and how you can follow your dreams while still paying the bills. #MoneyTips #Hashtags #Instagram #AttractBuyers

An unexpected instagram connection helped New York City artist Kristin Simmons pivot from her start in advertising to a full-time, award-winning, and profitable art career. Her provocative work is informed by the excessive, materialistic cultures of Wall Street and New York City. In this Financial Grownup podcast episode you'll learn which hashtags to use to attract buyers on instagram and how you can follow your dreams while still paying the bills. #MoneyTips #Hashtags #Instagram #AttractBuyers

---

Transcription

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

Kristin Simmons:
I do these pieces of old stock certificates, which is ironic because it's basically dead money, and I started drawing these Mad Men characters on them with these Lichtensteinesque bubbles and stock quotes coming out of their heads, and I posted one on Instagram, and I hashtagged the name of a company, and someone reached out to me and said, "Hey, my dad used to own that company. Can I buy that piece of art from you?"

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

Bobbi Rebell:
Hey, everyone, before I tell you about this week's guest, I want to let you know I have a big announcement coming up after the interview, and it has to do with something that you're all asking me about, the video promos that we put out with each episode, and how you can get them for you or your business, so stay tuned for that.

Bobbi Rebell:
Now to our guest. You heard her talking about her first sale. Want to know how much that first piece of art sold for? Well, stay with us here. The number surprised me. Artist Kristin Simmons incorporates themes of money and consumerism into her work in thought provoking and frankly sometimes polarizing ways, but she doesn't moralize. She's won a number of awards, including the National Endowment of the Arts award. Kristin grew up in New York, and her work has been informed by the city's culture, which can be a bit over the top when it comes to money here in New York City. She actually started her postcard career working in advertising doing art as her side hustle. She was able to have a studio area in her apartment, in part because of her early decision to buy an apartment at the age of 23. Being realistic, she did not see it as something that she could do for a living, especially in New York, that is, being a full-time artist. That is, until her Instagram feed prompted her very first sale. Here is artist Kristin Simmons.

Bobbi Rebell:
Hey, Kristin Simmons. You're a financial grownup. Welcome to the podcast.

Kristin Simmons:
Thanks very much, Bobbi. I'm so happy to be here today and talk with you.

Bobbi Rebell:
I recruited you because you are a rising star artist, and you focus so much on money and finance related iconography and themes, a little bit polarizing sometimes. Tell us briefly about your art.

Kristin Simmons:
Definitely. So, my art is very much focused on consumerism and the idea of what money can do for us, both its privileges and its dangers that it has.

Bobbi Rebell:
What inspired you? Can you tell us a little bit more about it?

Kristin Simmons:
My art is really inspired by the time I grew up in the late 80s, early 90s, when Reaganomics was really in full swing, and the market was booming, and I think a lot of millennials have certain mindsets or proclivities about spending and money because of how we were raised from a subconscious age.

Bobbi Rebell:
And you were raised to be very aware of money. Tell us your money story.

Kristin Simmons:
Sure. I do these pieces of old stock certificates, which is ironic because it's basically dead money. These are stocks that people were issued pre-Quotron machine in the 60s and 70s, and I started drawing these Mad Men characters on them with these Lichtensteinesque bubbles and stock quotes coming out of their heads, and I posted one on Instagram, and I hashtagged the name of a company, and someone reached out to me and said, "Hey, my dad used to own that company. Can I buy that piece of art from you?"

Bobbi Rebell:
That's crazy.

Kristin Simmons:
Yeah.

Bobbi Rebell:
Can you tell us how much you sold that first piece for?

Kristin Simmons:
The first piece I sold for $750.

Bobbi Rebell:
That's nice.

Kristin Simmons:
Yeah, it's great, and it was a unique work, so now the work has escalated to a greater price, but my prints still go for around that. I'm a big believer in trying to make original art at a price where people who are saving can afford it and also can compound over time if an artist does well in their career, but it was an amazing moment, and it really spurred me to think, okay, how can I hedge my marketing experience and maybe I'm onto an idea here that other people are interested in.

Bobbi Rebell:
That's so interesting. How much of your art sales are tied to social media, as opposed to people discovering it, because I do know you do have showings in traditional art galleries.

Kristin Simmons:
At the beginning, they were almost all tied to social media. Now I'd probably say about 30 percent.

Bobbi Rebell:
That's so interesting. So, your Instagram and social media basically is disrupting, I mean, not just yours but Instagram in general and social media is disrupting the art world in a way that I don't it is being talked about that much. It's fascinating.

Kristin Simmons:
Yeah. And it has been for a while, and other websites, too, that are more run by artists or artist run galleries, where they don't take as big of a commission. It's still a very okay market, the art world, and I don't even profess to know that much about it. I learn more every day, but I also kind of find it interesting because of that aspect and because of it's so involving and there are no set rules quote-unquote.

Bobbi Rebell:
What would be the lesson for people, you got noticed simply by being proactive on social media, and being compelling. I mean, your Instagram is really good.

Kristin Simmons:
Thank you. I would say everyone has something to share. Everyone has a story to share or something that's unique or special about them, and don't be afraid to have that voice. Yeah, you may get criticized for it. There will always be people who don't like what you're saying or think that your work or your voice is crap, but that's just one of the evils of the web, so again, I would just say be confident, and just start creating content or posting things or looking into things that interest you and be vocal about that.

Bobbi Rebell:
And if you're approached about selling something, how do you even know where to begin with the pricing?

Kristin Simmons:
For sure, sure. So that's a question I get all the time, and there's a simple answer and a not simple answer. The simple answer is what's my time, my hourly rate into making something, what are the material costs, and what is the idea worth. That's kind of a simple formula, and how you figure out what an idea is worth is a little more complicated obviously. Pricing for artists is very much set by themselves. It's a market that they set based on what the value they think their work is. For me, it's slightly gone up over time because I've had option results, I've had museum shows, and yeah, I kind of started at, again, that formula of idea, time, plus materials, and now once you gain additional credentials, you are then advised by galleries to adjust the numbers accordingly.

Bobbi Rebell:
And, of course, the galleries take 50 percent. Have to remember that.

Kristin Simmons:
Exactly.

Bobbi Rebell:
I want to talk about the money tip that you have brought with you because it's something that so many of us can benefit from, and it has to do with saving money by cooking, and you talk about the five ingredients. What do we need? Help us, Kristin. Help us.

Kristin Simmons:
Oh, my God, definitely. I mean, cooking's a great way to save money, and since I work from home, I cook all the time. Five ingredients. There are a bunch of different combinations, but the ones I like are eggs, spinach, rice, avocado and olive oil.

Bobbi Rebell:
Why those, and what do you make with those?

Kristin Simmons:
So, they're full of anti-oxidants and omega threes, most of those ingredients, and what I typically make is, I'll make like a kimchi bowl, Korean style, with rice, and I'll put an egg on top of it, and then you just throw some vegetables in it and some olive oil. It's a really healthy meal. It's very low cost to buy those ingredients, and it keeps you full for most of the day and kind of keeps your brain working and your body feeling good.

Bobbi Rebell:
Where do you get the recipes? Do you have any websites you recommend?

Kristin Simmons:
Yeah, Real Simple has actually a great cookbook. I think theirs is like 30 ingredients or something under 30 dollars that you can buy. I sometimes get recipes, I sign up for the self.com newsletter, even though I don't read their magazine. They often have good recipes, but yeah, Real Simple is probably the first place I would look. I really like their recipes.

Bobbi Rebell:
Excellent. All right, let's talk more about your art, what inspires you, where you're going to be showing this summer, where people can see it, and all that good stuff.

Kristin Simmons:
Thanks so much, Bobbi, again for having me, and in terms of the summer and what I'm doing, I am going to be part of an art gala on June 7th in New York called [Shamacha 00:08:48]. I'm hoping I'm getting the name right, or the Shamana Gallery.

Bobbi Rebell:
We'll put a link in the show notes.

Kristin Simmons:
It's a benefit hosted by the Durst organization, who gives a lot of money to the arts every year, and I'm going to be kind of doing an interactive performance piece in an office [inaudible 00:09:03] space there, and that'll be the first time I'm doing interactive performance work, so I'm looking forward to that, and then I will also be showing at the Hampton's Art Fair, which is on July 5th, because the 4th falls on a Wednesday, so there's that long weekend that comes back. July 5th to the 8th, the summer with Gallery Mourlot. That's kind of one of the biggest galleries I show with. I'm going to be showing new work there, which I'm really excited about.

Bobbi Rebell:
And where can people find you on social? Especially your Insta, but everywhere.

Kristin Simmons:
Sure. So, it's my name. It's KristinSimmonsArt, so K-R-I-S-T-I-N. Not E-N. S-I-M-M-O-N-S-A-R-T. That's my Instagram, and that's my website, too.

Bobbi Rebell:
Wonderful. Thank you so much.

Kristin Simmons:
Thank you so much, Bobbi.

Bobbi Rebell:
Hey, everyone. I love that Kristin advocates cooking at home. It's an easy and usually painless way to save money. It's also usually healthier, and she's right. Have five key ingredients at home. Yours might be different from hers, but that is definitely a way to save money. I want to focus on the idea though of buying art as an investment, or maybe just because you like it and want to own some art. So, Financial Grownup tip number one, Kristin pointed out kind of an open secret in the art world. Galleries take 50 percent. So, if an artist is selling work through a gallery, the gallery has costs and plays an important role, and they should get paid, so you got to take that into consideration if you go that route. However, as a buyer, if you know of an artist and you are interested in work that has not been seen at a gallery, you can go to the artist directly and have a lot more flexibility on the price.

Bobbi Rebell:
Thanks to social media, that is easier than ever, and as Kristin mentioned, well, 750 bucks, which is what she got for her first sale is a lot of money for many people. It's also a realistic price point for many people looking to start an art collection. If you're interested in actual places to go to discover artists, I did reach out to Kristin after we taped, and she sent along a few resources. I'll put them in the show notes as well, but she mentions Morlot Editions, I hope I said that correctly, Wide Walls and Art Space for original art. She also says Paddle8 is a great resource where you can even sign up for a payment plan. Prices there range from as little as 75 dollars to 15,000 dollars for most contemporary work. So, 75 bucks, you could do that.

Bobbi Rebell:
Financial Grownup tip number two. When you do buy art, depending on the value, make sure that you insure it. Art can often be insured just within your home owner's policy or your renter's insurance, but read that policy. You may need to add a floater as a supplement to the policy, and get the work appraised. It's also a good idea to make sure there are photographs of the art, so if something does happen, there are documents to support your claim.

Bobbi Rebell:
Okay, onto the big announcement. I'm really excited about this. As I said at the top of the show, I keep being asked video promos for the show. Where do I get them made? How can you get one? All that stuff. The secret is I actually make them myself. Even though I was primarily a television anchor and financial journalist in my previous ventures, previous career, I also learned a lot of skills that I now use for things like that. I love making the videos, and I have a lot of fun being creative, and sometimes a little bit silly. So, I've been asked how much I would charge to make them for people, and where someone can hire me, but the truth is I'm not getting into that business. They're not for sale. I've got a lot on my plate with Financial Grownup, and my speaking engagements, and brands that I work with, so that is not going to be my next side hustle, even though a lot of you guys have asked for it.

Bobbi Rebell:
But, I have decided to try an experiment. I am going to give one away to a listener, so here's all you have to do. Between now and let's say July, every time you see me post a video, a promo video on social media, share it, and I will choose the winner based on whoever shared the most videos between now and when I pick the first winner, which again, will be in July. [inaudible 00:13:09] I will make a custom video just for you, or one that you can use promoting your business. We'll work it out. It'll be a lot of fun. I'm really excited.

Bobbi Rebell:
So, all right, thank you all for supporting Financial Grownup, always. Please share this episode, and then the others that you enjoy with your friends on social media, and also, if you have not already, please subscribe so you don't miss any episodes, and this is the big ask. I know they don't make it easy, but it really helps the show get discovered if you rate and review the podcast.

Bobbi Rebell:
More listener involvement, we have just selected our first listener to be a guest. That episode will be coming up in June. I'm excited to share it with you guys. If you want to be considered for the next one, just email us at info@financialgrownup.com. Include the money story and the money tip that you would share if you were selected.

Bobbi Rebell:
To learn more about Financial Grownup, go to bobbirebell.com/financialgrownuppodcast. Follow me on Twitter at bobbirebell. On Instagram at bobbirebell1. On Facebook at Bobbi Rebell. Thanks to Kristin Simmons for inspiring us and showing us all that art can be a profitable side hustle and even your main job, and helping us get one step closer to being financial grownups.

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

Life Coach and best-selling author Allison Task was a dot-com millionaire by 30, only to lose it all in the dot-com bust. But from there she started on a path that has included working with Martha Stewart, hosting cooking shows, writing cookbooks, building a coaching business and her latest book “Personal (R)evolution. How To Be Happy, Change Your Life, And Do That Thing You’ve Always Wanted To Do. “

 

In Allison’s money story you will learn:

-How Allison found became a millionaire when she was not yet 30 years old

-Why she had, and still has, conflicted feelings about whether she deserved the money

-How she lost the million dollars

-Why she actually came out in the red on the entire transaction, in large part because of the tax implications of the stock options

-What it was like to be part of the dot-com bubble

-What she might do differently were she to have another shot at a million dollars

In Allison’s money lesson you will learn:

-Her advice to listeners who want to earn a lot of money

-Why she does not advocate chasing money

-How she believes listeners can figure out what makes them happy

In Allison’s money tip you will learn

-Why her closet is so much smaller than her husbands

-Allison’s philosophy on how to maximize your clothing budget

-Her advice ,as  mom of four, on clothing for children, and how to make the most of your spending on kids shoes and clothing

-How her husband reacts when she calls his clothing “crap-oh- la”

-Why Allison shy’s away from great deals on clothing and vacations

In My Take you will learn:

-The basics of how stock options work

-Why taxes tied to stock options can complicate the investment

-How to manage an investment loss and offset future investment gains

Episode Links:

Get Allison’s new book Personal Revolution: How to Be Happy, Change Your Life, and Do That Thing You've Always Wanted to Do.

Visit Allison’s website

AllisonTask.com

Follow Allison!

Twitter: allisontask

Facebook: www.facebook.com/allison-task

Linked In: www.linkedin.com/allison-task

Instagram AllisonTaskCoach

---

Transcription

Bobbi Rebell:
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Allison Task:
I just didn't feel right about it. Ethically, something felt wrong. It was too easy to make. I wasn't even 30. How do I have a million dollars? It wasn't my money. I didn't earn it. I didn't feel connected to it, and I felt a little wrong about taking it. It kind of felt like finding someone's wallet.

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

Bobbi Rebell:
Hey friends, we'll get to our guest in just a sec. But I want to take a minute to just talk about some stuff about the show that's been going on. We've been getting a lot of great feedback, compliments and questions about the video promotions that we run on social media to support the podcast. I thought it might make sense to address some of the questions here. First of all, lots of you guys are asking me who makes them for us. I actually make them myself. As you guys know, I love to learn new skills. I have a background in television production. I was a TV anchor for years. Part of working in media these days is learning a lot of technology editing and creative stuff. So, I'm really enjoying making them myself.

Bobbi Rebell:
The other question I'm getting the most is where you can get them made for your projects, for your business, or just for yourself. The answer is, well, I'm not going to go into that business. I have enough side hustles for now. But I did come up with an idea, an experiment that we're going to try here. We're going to have a little competition, hopefully, you guys are game, and the winner will get a custom video from me that I will make for your business, for you, for an event, whatever you want. Anything reasonable, we'll come up with something fun. The way it's going to work is from now until the beginning of July, I'm going to ask that whenever you see a video promotion for Financial Grownup, you share it on social media. Whether it be sharing on Facebook, retreating, reposting on Instagram, also DM me. Let me know that you're out there and that you are spreading the word about Financial Grownup. In the beginning of July, 1 week in July, I will see who is sharing the most and they will get a custom-made video promo just for them.

Bobbi Rebell:
Okay, now to our fantastic guest. She is so cool. As you heard at the top of the show, the money came easy for a young Allison Task, and then it went poof, just as fast. But she has recovered. You'll be glad to know and has made peace with the whole drama. Not sure I would be so chill. But Allison did go on to work with Martha Stewart, and to host your own cooking shows. Also, she wrote some bestselling cookbooks. Alison has also built a life coaching business and she's got a great situation now with her husband and kids, and a fantastic new book that was just released called Personal Revolution: How to Be Happy, Change Your Life, and Do That Thing You've Always Wanted to Do. Basically, it's all the solutions to everything in a book. Yeah. Anyway, she's doing a lot, she's terrific. Here is Allison Task.

Bobbi Rebell:
Allison Task, you are a Financial Grownup. Welcome to the podcast.

Allison Task:
Thank you for having me.

Bobbi Rebell:
Congratulations on your new book, Personal Revolution: How to Be Happy, Change Your Life, and Do That Thing You've Always Wanted to Do. I binge read it this weekend. Even though I know I'm supposed to be doing exercises and stopping and going back and forth and all that good stuff. I promise I will, okay?

Allison Task:
You got it. It's there for you when you're ready.

Bobbi Rebell:
All right. And you brought with you a money story which I have not heard in full yet. But I'm really excited about the beginning and really curious about the end, go for it.

Allison Task:
Okay. Well, the beginning is I need a million dollars and then cut to the end I lost a million dollars all before I was 30. That was actually real dollars. That wasn't like my monopoly, that was real.

Bobbi Rebell:
Okay. Fill in the blanks on that one.

Allison Task:
Okay, the blanks are simple, dot com. I was one of those early dot com kids and was one of the first 50 people in three different companies. One of them went public when I was there, and I had two commas in my bank account that I checked via etrade.com.

Bobbi Rebell:
Tell us the details. What was the company and how did you end up working there? Tell us just a little bit more.

Allison Task:
Sure. The company was called Silicon Valley Internet Partners. I was the marketing director. So, after a year it was then called Viant. You may remember at the time there was Viant, there were Siant, there were lots of internet builders. We were the people who were strategists, designers, and technologists to large companies who wanted websites back in the 90s. We helped create the not.com.

Bobbi Rebell:
I remember that.

Allison Task:
Yeah, we worked with People Magazine. We worked all over new media and old media, literally building their high-performance websites.

Bobbi Rebell:
Okay. So, explain how you made the million dollars. You were paid in stock? What exactly happened? How did the million happen?

Allison Task:
I was employee number 50. I was there for four years. I was paid in stock. Generous stock options. Probably year two when I was there, we went public and those stock options that were pennies went to over three figures. So, I had multi million dollars on paper. And [inaudible 00:05:56] I exercised my shares, which means I got to pay taxes on those multimillion dollars too.

Bobbi Rebell:
Did you sell the stock when exercised those shares? [crosstalk 00:06:03] different. Right. So, explain how this works. You have to pay the taxes when you actually receive the stock, but that doesn't mean you sold the stock and received money.

Allison Task:
Correct. So, I probably purchased the stock when it was around 60. It went up to 120. And then I remember my father telling me, "Honey, it's at 30, you need to sell. You need to sell." I'm like, "It's fine." I didn't sell until it went down to six, and then it became a penny stock and I believe delisted.

Bobbi Rebell:
Wow. So, you went from a million, more than a million-

Allison Task:
More than a million.

Bobbi Rebell:
... to ultimately that whole venture cost you money because of the tax. Is that correct?

Allison Task:
Yeah, that's so painful. I did have five years during which I was not paying tax. I was not paying tax, why? Because I had then got to write off the loss. But, yeah. I think it wasn't, definitely it wasn't a million dollars in the bank account. Let's just say.

Bobbi Rebell:
Right. Well, first of all, looking back, is there anything you could have done differently? I guess you should have sold it at 120 if you are had a crystal ball, which you did not.

Allison Task:
Listen, with four kids, I would not have minded having that money, made a few investments. I think it would have been prudent to have earned it. What it did do for me, though, was set me up with my attitude for life. First of all, I say it's a million-dollar joke, I need to laugh a lot and I learn a lot from that experience, right? There's some value there.

Bobbi Rebell:
And you weren't alone, by the way.

Allison Task:
Oh, God. No.

Bobbi Rebell:
No.

Allison Task:
Definitely. At least I did it to myself, you know what I mean? No one was [inaudible 00:07:25] me. That was my choice, fair and square. I think I always felt uncomfortable because I didn't earn the money, right? I wanted to earn it with my effort. I felt like, well, I was just part of a big thing. Well, that money came from somewhere. Someone had their retirement account and it went into Viant at some time. It wasn't my money. I didn't earn it. I didn't feel connected to it. I felt a little wrong about taking it. It kind of felt like finding someone's wallet.

Bobbi Rebell:
This is a little psychiatrist's thing, but do you feel like you sabotaged yourself the way you're talking?

Allison Task:
I think you're onto something. I just didn't feel right about it. Ethically, something felt wrong. It was too easy to make. I wasn't even 30. How do I have a million dollars? I'm a marketing director for a dot com company. Come on. Come on. I'm not working that hard. How did I create that value? I didn't. In the end, it wasn't a value. It went away. It was part of the big bubble. Something of it felt dirty. Money is money, that was someone's, it wasn't mine. I didn't earn it.

Bobbi Rebell:
Looking back in all your grow up wisdom, what is the lesson, what is the takeaway for our listeners?

Allison Task:
Well, the take away is definitely find a way to earn your money in a way you feel good about. I, after that, literally left and started working for myself, right? When you work for yourself, you're only as good as your last client. You're only as good as your last experience. I developed a lot of personal integrity in terms of the way I work and the way I want to do my work. From that, I have something that's more important than money in my opinion, which is life satisfaction. Making a meaningful contribution. I'm a life coach. Everyone who comes to my office wants to make a meaningful contribution, every single last one. It's more valuable than money.

Allison Task:
I lost the money and learned the lesson, but I still really ... I had my ethics and values and I knew something wasn't right. What's the lesson your listeners?

Bobbi Rebell:
Yeah.

Allison Task:
If you make a lot of money and you keep chasing money, there's something that's not right. There's a lack of fitness. If you have money and you keep chasing money, it's like you can never be too rich or too thin. I don't subscribe to that. I think there's a weird thing when you keep chasing money. So, figure out what that's about if you actually want to be happy.

Bobbi Rebell:
On that note, we're going to pivot and kind of take a different angle. Because your money tip actually has to do with splurging. So, I guess it's okay if you have the right amount of money to splurge. Tell us more about how you approach that.

Allison Task:
Definitely. Splurge and enjoy it. This one, I'm going to take you into my closet for this one. My husband and I share a closet. It's a walk-in closet. But my side is pretty small. And why is my side small? I buy outstanding things. I used to go to the Gap and get six pairs of pants, half of which were on sale, most of which would fall apart in three months. I now by very expensive high quality essential pieces. Like, a pair of black pants, an amazing pair of Frye boots. My husband likes a sale, and he has a lot of crap-hola that doesn't exactly look, good fit.

Bobbi Rebell:
How would he feel if he heard you say that?

Allison Task:
He would not his hand and say, "I know hun, I know."

Bobbi Rebell:
Oh, really?

Allison Task:
I know, but it was such a good deal. But it was such a good deal. No good deal. Certainly not when you're sharing my closet, babe. No. Those vacations, right? You wait all year to go on the vacation. Spend the money. Spend the money.

Bobbi Rebell:
Easier said than done. What about with your kids?

Allison Task:
Ah, my kids. I'm so glad you brought that up because I'm going to put my money where my mouth is. First of all, I have four kids, three of whom are under five. I do not want tons of crap, right? Their shoes, they each get one pair of sneakers, period. Wear it until there are holes in it. I mean that literally. They were their sneakers-

Bobbi Rebell:
But what if they get wet?

Allison Task:
Well, they have really good rubber boots.

Bobbi Rebell:
Let's talk about your book. As I mentioned, I whipped through it in literally one day. I know you're not supposed to do that, because one of the best things about it is it really, if you do go through this book properly, it holds you accountable.

Allison Task:
The book is nine chapters, end and intro. Each chapter is designed to be a guidebook workbook. So, the thing about seeing your coaches, coaches ask you lots of questions to get you deeper into your own thinking. Throughout the book, there's action points and insight points with lots of questions. I say please use it with a workbook, use it with a computer. Before you can go on to the next chapter, there's a prep sheet. You're constantly scaling yourself. How much closer am I to achieving my goal?

Bobbi Rebell:
What is your favorite chapter then?

Allison Task:
I really like chapter five. Chapter four is identify your network. It's for people who want to do more networking. Anytime you have something you want to do, you call upon your people. You call upon your social network to help you. That is everything. Chapter five is expanding your network, right? So many people feel awkward about self-promotion, about asking others for things. So, once I got you to trust me and feel comfortable that like you are loved and people root for you, now let's take the next step and expand upon that existing network.

Allison Task:
My second favorite chapter is the last chapter, which is all about celebrating. You've achieved it. You've done it. Now, let's set that experience in your brain so that you can do it again and you can call upon it in the future. My book launched last week, and last week, it became a best seller on Amazon and actually still is. And so now, this is that time for me. I get to celebrate and do end runs with everyone who helped me along the way, and that's a total joy.

Bobbi Rebell:
Well, we will leave you to celebrate. Where can everyone find you and find out more about the book and everything you're up to?

Allison Task:
Thank you. Please visit allisontask.com. That's A-L-L-I-S-O-N-T-A-S-K.com. Plug it in to Facebook, Twitter, I'm Allison Task all over the place.

Bobbi Rebell:
Wonderful. Thank you so much.

Allison Task:
Thank you, Bobbi.

Bobbi Rebell:
So, Allison was pretty cool about the loss, but I wonder how she really was back in the day. I do want to do a little bit of explaining about how options work and what exactly happened in terms of the tax consequences. Because we sort of alluded to it a little bit. Allison talked about how it worked out, but I think it's important that you guys understand at least a little bit about how options work.

Bobbi Rebell:
Financial Grownup tip number one. If you do ever get offered stock options, obviously, do the research thoroughly and understand how they work. Because as Allison explained, you can sometimes be on the hook for taxes, even before you actually have the cash from the stock. So, a little bit about that. Options basically mean that you can buy or exercise shares at a preset price, known as the strike price. If a stock is selling at a price higher than the strike price, you basically get to buy the stock at a discount. If you sell them right away, guaranteed profit. The catch, and this is what Allison mentioned, is that you owe tax on the transaction, whether or not you sell the stock at that time.

Bobbi Rebell:
If you sell the stock, you have the cash to pay the tax from your actual profits that you took, you got the money, you're good. But if you are betting that the stock is going to keep rising even more and you want to hold on to it so you don't sell it, you still have to pay the tax on that paper profit that you had by exercising the option. So, then, if the stock goes down and you sell it for a loss, the thing is, the government does not send you a check refunding the taxes that you paid. It doesn't work that way. It's really important that you understand how that works, and the risk involved.

Bobbi Rebell:
Financial Grownup tip number two. Back to the taxes. So, the tax payments are painful, but they can be used in the future to offset other investment profits. So, let's say that you have a capital gain on another stock, another investment the next year. You can carry forward the losses from the first transaction and then you can offset those gains plus, an additional $3,000. So, it's going to help your tax situation going forward, even though no one wants to have paid taxes on money they didn't really make. You do get at least to match it up against profits going forward. That's basically what Allison did, and what she was referring to when she kind of jokingly said that she did not pay taxes for five years.

Bobbi Rebell:
All right everyone, please continue to rate and review the show if you have not on iTunes or Apple Podcast. Every single review matters. I know it's another thing to do. You guys are busy, but it is truly appreciated. And of course, hit the subscribe button so you don't miss any episodes. We are also now on YouTube, just starting out there. So, we're posting the show there and we're also posting those promotional videos. Just search for financial grown up and you'll find it and you can see the promotional videos there. And, if you are following me on Instagram @bobbirebell1, please DM me. I want to hear from you guys and hear what you like about the show, what you want to hear differently on the show, guests that you want all that good stuff. So, be in touch and of course, follow me on Instagram @bobbyrebell1, and twitter @bobbirebell. I'm on Facebook, Bobbi Rebel. Learn more about the show at bobbirebell.com/financialgrownuppodcast.

Bobbi Rebell:
All right, go check out Allison Task's new book, personal revolution, Personal Revolution: How to Be Happy, Change Your Life, and Do That Thing You've Always Wanted to Do. It is already a bestseller, and thank you, Allison, 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.

 

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

In Bola’s money story you will learn:

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

-The side hustle that helped her reach that goal

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

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

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

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

-The regret she had despite making money on her debacle

-Why she thinks so much about Amazon stock

In Bola’s money lesson you will learn:

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

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

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

In Bola’s money tip you will learn:

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

-Bola’s favorite pre-owned goods resources

-How friends can trade or sell handbags to each other

-Bola’s new strategy for buying expensive handbags

In my take you will learn:

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

-The difference between saving money and building wealth

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

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

Episode links

Bola’s website: CleverGirlFinance.com

Bola’s podcast: Clever Girls Know

Follow Bola!

Twitter Clever Girl Finance

Instagram Clever Girl Finance

Facebook Clever Girl Finance

LinkedIn Bola Sokunbi

 

Also mentioned in the show:

Vestiare Collective

Fashionphile

Rent the Runway

---

Transcription

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

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

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

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

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

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

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

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

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

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

Bobbi Rebell:
Temporarily, right?

Bola Sokumbi:
Temporarily.

Bobbi Rebell:
Right.

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

Bobbi Rebell:
Wow.

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

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

Bola Sokumbi:
Yeah.

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

Bola Sokumbi:
Holla.

Bobbi Rebell:
What?

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

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

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

Bobbi Rebell:
What was it? Describe it.

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

Bobbi Rebell:
Okay. I wouldn't know.

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

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

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

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

Bola Sokumbi:
Yeah, I could. Yes.

Bobbi Rebell:
Oh my gosh.

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

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

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

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

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

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

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

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

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

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

Bobbi Rebell:
Okay.

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

Bobbi Rebell:
What was the most expensive one?

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

Bobbi Rebell:
Wow.

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

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

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

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

Bobbi Rebell:
The handbags make you feel good.

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

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

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

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

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

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

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

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

Bola Sokumbi:
Thank you for having me, Bobbi.

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

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

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

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

New dad and financial advisor Kevin Matthews wanted to start teaching his baby about money even before his son was born- and almost missed his birth! But the video evidence of his dedication to the future financial health of his baby is a gift that is truly one of a kind. 

In Kevin’s money story you will learn:

-Why he felt so compelled to shoot a video right before his son was born

-The strategy he wanted to share that would make his newborn child a millionaire

-The three specific things he will do to make sure his son is a millionaire

-Why he regrets taping the video

In Kevin’s money lesson you will learn:

-Why planning ahead or recording in advance would have been a better move in retrospect

-How he will alter his strategy with his next child!

In Kevin’s money tip you will learn:

-Why rebalancing a portfolio is essential

-How to tell if you need to rebalance your portfolio

-Exactly what to do if your portfolio is not balanced. 

In my take you will learn:

-Why planning for the future sometimes has to take a back seat to focusing on the present

-How to time your financial check ups

Episode Links

Building Bread

Get Kevin’s book Starting Point: How to Create Wealth that Lasts

Watch Kevin’s video series Bread Crumbs

Follow Kevin

Twitter @buildingbread

Instagram @buildingbread

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

Email Kevin info@buildingbread.com

 

 

Also mentioned

Phroogal

Jason Vitug

The Financial Gym

 

Kevin Matthews II promo for the Financial Grownup podcast with Bobbi Rebell.. Kevin shares his story of recording a video for his son, about 3 ways to make sure he became a millionaire, and how he cut it very close to missing the birth of his first son!

---

Transcription

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

Kevin Matthews:
I would not do it the same way. That was a huge risk that I took, and I got lucky that I was able just to run back up, and everything was okay, and I was in the right spot, so I probably would not do it again.

Bobbi Rebell:
You're listening to Financial Grown Up with me, certified financial planner, Bobby 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. Sometimes we get so wrapped up in getting our financial plans together for the future that we miss something super important in the now. For financial advisor, Kevin Matthews II, who runs BuildingBread and is the author of Starting Point, How to Create Wealth That Lasts, making sure he created a video moments before his son was born seemed really important at the time, but looking back, maybe it could have waited. I'll let Kevin fill you in. Here is Kevin Matthews II. Hey, Kevin Matthews. You are a financial grown up. Welcome to the podcast.

Kevin Matthews:
Thank you.

Bobbi Rebell:
We met actually at an event for Phroogal, run by our mutual friend, Jason Vitug. I was so impressed with you, and I went and I ran after you, and said, "I need to rack you down. I need to have you on my podcast." Thank you so much for being here.

Kevin Matthews:
Thank you so much. I appreciate it.

Bobbi Rebell:
You gave a great presentation, and that's a lot of what you do. You're a financial advisor, but you also do a lot of speaking. You also have BuildingBread is your website, your company, and you are a two time author.

Kevin Matthews:
Yes.

Bobbi Rebell:
We will talk about more about that. That's a little teaser, my friends. We're gonna talk more about Kevin's books and his business in just a few minutes, but first, I want to get to your story, because it has to do with your baby that was just born, your son. By the way, are you a first time father?

Kevin Matthews:
Yes. This is then first time.

Bobbi Rebell:
Congratulations.

Kevin Matthews:
Thank you.

Bobbi Rebell:
Share our story, because this is very special and very sweet.

Kevin Matthews:
Yeah. Yeah. I do a segment that airs every week, so I do what's called BreadCrumbs, and I give out financial tidbits every Wednesday morning.

Bobbi Rebell:
Where is this, on YouTube, or where can people see it?

Kevin Matthews:
This is primarily on Facebook.

Bobbi Rebell:
On Facebook. Okay.

Kevin Matthews:
Yeah. I have it in Facebook for my group. It's also on Twitter and through my email list as well. Every week, I get on. We'll talk about what's in the news. I'll give you a few tips and continue that way. So, at the hospital, about two hours before my son was born ... It was Wednesday. I'm a dedicated person, so I was like, "Look. I need to do this, because once he's born, there's no way I'm gonna stay on schedule." So, I ran downstairs. I shot a video on compounding interest and a few tips we were gonna do for my son to make sure that he was gonna become a millionaire.

Bobbi Rebell:
Right. You called it Three Things for Your Son to Become a Millionaire.

Kevin Matthews:
Yeah. Three things we were gonna do to make sure my son was a millionaire. So, I went down. I was live in the lobby of the hospital, because I couldn't record in the room. I'm shooting, and I assume at this time my wife has maybe two, three, four hours perhaps before he's born.

Bobbi Rebell:
Oh, no. Kevin, you're a first time father. Babies don't go on your schedule. First lesson.

Kevin Matthews:
Yeah. I learned. I shoot the video. It takes maybe 15, 20 minutes. I get back in the elevator, and the minute I walk in they say, "Okay. Push." I'm like, "Wait. This is it?"

Bobbi Rebell:
Oh my gosh.

Kevin Matthews:
Yeah.

Bobbi Rebell:
You are so dedicated to your group that you almost missed the birth of your son.

Kevin Matthews:
Yes. I was so dedicated to his future that I almost missed the present. Yeah. I was able to do both. I definitely made it, but had I been maybe 20 minutes later, going down and recording, or had the video been longer or something, I definitely could have missed it. This was in the middle of that last winter snowstorm as well.

Bobbi Rebell:
Oh my gosh. So, we want everyone to go watch the actual video, but give us some highlights of the advice and the lessons for your newborn son to become a millionaire.

Kevin Matthews:
Yeah. Yeah. It's really getting yourself in position to make sure that he's gonna be taken care of. There's the life insurance piece, and there's the piece that you want to make sure that you're updating all of your recorders, your beneficiaries, all of that, because sometimes when you have a kid, when you get married, when those life changes happen, you want to make sure that everything is in place to have everything updated, so that it reflects your current family situation, which again, is fluid. The second thing that we just did actually was open up an investment account for him and then begin saving for him now, so that when he's in his 30s, maybe even 40s, he will be much farther along than I was or anyone in my family actually.

Bobbi Rebell:
What kind of account was it? It doesn't sound like you're talking about a 529 for school if he's gonna get it in his 30s or 40s.

Kevin Matthews:
Correct. Right now, the first account we opened was a custodial account for him. We may do a 529 plan in the near future, but I started with a custodial account.

Bobbi Rebell:
Very good. The full video available on Facebook. What is the lesson from not just the lessons that you're giving your newborn son, but what is the lesson from this story, where you admitted you didn't really plan well, but you also were really dedicated to your business? So, would you do it again the same way?

Kevin Matthews:
The same way? No. I would not do it the same way. That was a huge risk that I took, and I got lucky that I was able just to run back up, and everything was okay, and I was in the right spot. I probably would not do it again. Definitely planning ahead would have been easier. Probably recording in advance would have been easier as well.

Bobbi Rebell:
All right, but it did have that special live quality as well.

Kevin Matthews:
Yes. It did.

Bobbi Rebell:
It will always have that.

Kevin Matthews:
It worked for that one time, but to risk it twice may not be wise.

Bobbi Rebell:
So, for baby number two more scheduling.

Kevin Matthews:
Yes.

Bobbi Rebell:
You learn and also the lesson is that babies don't keep to grown up time.

Kevin Matthews:
Absolutely.

Bobbi Rebell:
Let's talk about your money tip. What should people do? This is great advice for anyone, not just parents.

Kevin Matthews:
Yeah. Absolutely. Similar to the previous point, but it's being at the right spot at the right time. The way I look at that is making sure that you are properly balanced. Over the last few years, stocks have been great, and that kind of throws people out of whack. What we do is we tend to say, "Hey. Great. I'm just gonna roll with it. I'm making gains," but that's really the time that you want to go back and rebalance your portfolio, and you want to do it periodically. You want to keep those dates static versus checking in when it's a bad day on the market or just randomly when you're in the mood to.

Bobbi Rebell:
Specially, what does it mean to rebalance your portfolio? How does it suddenly get off balance?

Kevin Matthews:
Yeah. It can get off balance when the market changes. For example, if you're someone who has a 50/50 portfolio, you can't to have 50% in stocks, 50% in bonds, if you're someone who's right in the middle, as stocks grow, your portfolio could be 65 or 70% versus 30% because of the growth of the market. You want to go back. That means that you're taking on more risk, so you may want to go back, look at your portfolio, and bring it back down to where it's 50/50, because that's where you should be based on your goals and your risk tolerance.

Bobbi Rebell:
Well said. All right. Kevin, I want to talk to you about your businesses, because you kind of have a bunch of different things going on, and you're writing books, and you're making videos. Tell us more about what you do.

Kevin Matthews:
Yeah. At BuildingBread my main goal is to help you set, simplify, and achieve your financial goals. I do that through basic financial education, so I do the videos. I do BreadCrumbs, and I teach courses to make sure that when you're speaking with your financial advisor, when you're trying to figure it out on your own, that you can understand the situation, have a well educated situation, so that you don't feel like people are talking over you or at you.

Bobbi Rebell:
I can speak firsthand. You're a wonderful speaker and presenter, and everyone was mesmerized by what you were saying. I think you got a lot of people to really pay attention to their money and be a lot more deliberate.

Kevin Matthews:
Yeah. Thank you.

Bobbi Rebell:
So, where can people find you and get in touch if they want you to come to their organization or if they want to follow you on social media?

Kevin Matthews:
Yeah. You can follow me anywhere on social media @BuildingBread. I'm always active there. You can also email me at Info@BuildingBread.com.

Bobbi Rebell:
Awesome. Thank you so much, Kevin Matthews. This has been great.

Kevin Matthews:
Yes. Thank you.

Bobbi Rebell:
Kevin had a lot of great advice. Financial Grown Up tip number one. We spend a lot of time in the personal finance space talking about planning for the future, but by no means should that divert your attention from the present, when things, like the birth of your child, are about to happen. Perspective. It is a great story to tell your kid, but take note. Kevin would not do it again. Let's try to look up from our phones more. I'm right there with you on that one. We may not even realize all the priceless thing we may be missing, and you can't buy more time.

Bobbi Rebell:
Financial Grown Up tip number two. Just like you schedule a doctor's appointment, let's all take Kevin's advice and do a financial check up based not on when something is happening in the market, for example, but on a calendar driven base, so the decisions are based on what is best for you in a proactive way, not a reactive way, or another good time may be when you have a change in circumstance, like having a baby. I don't really do this these days, but I'm gonna think about Kevin's advice and try to be on a more regular schedule with checking in with family, financial planning, and things like that. I think it's a great thing to incorporate in all of our lives.

Bobbi Rebell:
Thank you, Kevin, and thanks to all of you for supporting Financial Grown Up. I am starting to get a nice amount of applications for our upcoming once a month listener as guest episodes, so keep them coming. We're gonna have some great stories, and I can't wait to hear yours. Just email us at Info@FinancialGrownUp.com. Tell us the money story and the money tip that you would share if you were chosen.

Bobbi Rebell:
Please continue to share this show with your friends and colleagues to help bring more people into the Financial Grown Up community. Rate and review us on iTunes. That really helps us get noticed, and it is truly appreciated. Follow me on Twitter @BobbyRebell, on Instagram @BobbyRebell1, and you can find me on Facebook @BobbyRebell. Kevin truly brought som fatherly wisdom to our program. Great show, Kevin, and thanks for getting us all one step closer to being Financial Grown Ups. Financial Grown Up with Bobby Rebell is edited and produced by Steve Stewart and is a BRK Media production.

When Liz Thames and her husband adopted their dog Gracie they went on a spending bender buying up countless toys and treats for their new baby. But instead their precious pet taught them a lesson in values that helped shape the parents and family they became. 

In Liz’s money story you will learn:

-The story of how Liz and her husband adopted their first pet, Gracie

-The costs involved in adopting a dog

-How much money they spent before getting the dog, and what they bought

-How Gracie reacted to all the toys and treats

In Liz’s money lesson you will learn:

-How to figure out what you really need to buy for your family

-How marketing can confuse us and create a false need

-The importance of waiting to find out what is truly needed during a life change, such as having a child

-How to fight back against a scarcity mindset

-Specific tips on how to be frugal like Liz, including using social media as a tool

In Liz’s money tip you will learn:

-How she was able to take yoga classes by bartering

-The specific language and approach if you want to barter with a business

In my take you will learn:

-Why you should consider selling your used baby products, especially big ticket items like strollers

-My personal story of selling my son’s stroller

-My take on pet insurance

Episode Links

Get Liz Thames Book Meet the Frugalwoods: Achieving Financial Independence Through Simple Living. 

Learn more about Liz on her website Frugalwoods.com

Follow Liz!

Twitter @frugalwoods

Facebook Frugalwoods

Instagram Frugalwoods

---

Transcription

Bobbi:
Support for Financial Grownup with Bobbi Rebell and the following message comes from Transfer Wise. The cheaper way to send money internationally. Transfer Wise takes a machete to the hefty fees that come up sending money abroad. Test it out for free at Transfer Wise.com slash podcast or download the app.

Liz:
We probably spent I don't know several hundred dollars on dog stuff which is more than we spent on either of our children by the way before they were born. So it was once she came into our lives we could then learn what she really needed and we could calibrate our purchases to her actual needs which apparently was a kitchen towel.

Bobbi:
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, [inaudible 00:01:02] and then my take on how you can make it your own. We got this.

Bobbi:
Hey everyone. Pet lovers this is especially for you and if you're like me, your pets are like your children. There's nothing you wouldn't do for them. But there are things that you shouldn't do for them including overspending. Liz Thames is the author of Meet the Frugalwoods: Achieving Financial Independence Through Simple Living. And in fact many of her fans knew her only as Mrs. Frugalwoods until recently. But as you will learn Liz was not always as frugal as she is now. Here is Liz Thames, aka Mrs. Frugalwoods.

Bobbi:
Liz Thames aka Mrs. Frugalwoods, you're a financial grownup. Welcome to the podcast.

Liz:
Thank you so much for having me.

Bobbi:
And congratulations are in order for your new book, Meet the Frugalwoods: Achieving Financial Independence Through Simple Living. Did I get that right?

Liz:
You did.

Bobbi:
Okay. All right. We're going to talk more about the book but I want to hear more about your life in Vermont and your money story which has to do with something near and dear to my heart which is of course our pets.

Liz:
Yes. A number of years ago my husband and I decided we were ready to adopt a dog. We had wanted a dog for years but we'd been renters and we had moved around a lot. I'd been in grad school. Not a good time to get a dog because when you get a dog, you need to think about who's going to care for them all day long. When you're moving around and you're renting an apartment and you're not home because you're in grad school and working full time in order to get free tuition. You don't really have the time to care for a pet. It was a big decision for us to finally come to that moment where we owned a home and we felt like we had the time and the money to dedicate to having a dog. We adopted a gray hound which is a rescue dog. It's a really frugal way to get a pet and it's also a wonderful way of giving a pet a new home.

Liz:
So, gray hounds are-

Bobbi:
By the way, there are some costs when you adopt a pet.

Liz:
Oh absolutely. Yes. There are ... It's like with children. There's just kind of the costs just keep on going but it's yes, so you do pay a fee when you adopt a dog. Then you need to think about their long term health care as well. One of the things that we thought when we first adopted our dog was that she needed everything. We had waited years to get this dog; we were going to lavish her with all of the wonderful dog things. We went to PetSmart and just cruised the aisles and bought you know "Oh we need this. We need this" like impulse shop for this dog and bought all these toys. All of these kongs. You know what those are? You put peanut butter in it.

Bobbi:
What's a kong?

Liz:
It's like this round thing that you put peanut butter or treats in and the dog-

Bobbi:
Are dogs supposed to eat peanut butter? I don't know.

Liz:
Purportedly they stick their snout in it and lick it out. I don't know. I have like four[crosstalk 00:04:04]

Bobbi:
Are they supposed to eat peanut butter? I don't know.

Liz:
I don't know. They told us she could.

Bobbi:
Okay.

Liz:
But our dog had zero use for all of this stuff. She looked at it and was like no thanks and took a red kitchen towel out of our kitchen and said, this is my toy and she decided that she really didn't need a lot in life and that was a great lesson for us. That we kind of had bought into this consumer notion that in order to be good dog parents, we needed to provide all of this stuff for her. When in reality all she needed was a safe, warm space and lots and lots of walks and play time outside. It was just so illuminating for us that uh wow, we really bought into this marketing trope of what it means to have a dog.

Bobbi:
It reminds me of when people buy all these toys for babies. Maybe toddlers let's say and then all the toddler wants to do is play in the box that the toys came in.

Liz:
Oh a 100 percent. Yes. My daughter the other day got in a box and was like, "It's a boat". "I'm sailing down the river". This is an empty cardboard box. Just like excellent. I am really glad you have that imagination and I'm really glad I didn't buy any toys for you.

Bobbi:
Totally. So how much do you think you spent on toys and unnecessary just stuff for your- what's your dog's name?

Liz:
Our dog was Gracie better known as frugal hound and she sadly passed away earlier this year.

Bobbi:
Oh. I'm so sorry.

Liz:
Thank you. But it's wonderful to talk about her and to realize sort of the important role that she had in our lives. She was our first child and she really taught us what we needed to know about parenting which is that you do not need to buy a ton of stuff. It's also true that we bought things preemptively before she was even part of our lives. We probably spent to your question I don't know several hundred dollars on dog stuff which is more than we spent on either of our children by the way before they were born. Once she came into our lives we could then learn what she really needed and we could calibrate our purchases to her actual needs which apparently was a kitchen towel.

Bobbi:
And it's interesting because you actually learned from Gracie how to not over prepare and buy in advance for your children, your human children, when they came along. In a way she taught you a good lesson in budget parenting.

Liz:
Really.

Bobbi:
So what is the lesson then for our listeners and how can this apply not just to pet owners but to everyone?

Liz:
We are surrounded almost every single day by messages that tell us we need more stuff. There is always something more to buy for whatever phase of life you're in. Whether you have pets or you have kids or you don't have either of those things but you have a great interest in hiking or rock climbing or whatever it might be. There will always be this huge list of things that we're told that we need. I think marketing really makes us feel as though we need to have those things in order to be happy and to be fulfilled to be able to do the things we want to do with our lives. What I've realized over the years is that there really is no way to buy happiness. There is no way to sort own everything that you need to own. As soon as you reach that point, you'll realize there's more stuff or you need newer stuff or bigger stuff.

Liz:
This applies to everything from houses and cars all the way down to the clothes that we wear and the food that we buy. I think when you can sort of step outside of that consumer carousel and really identify what it is that you actually need on a daily basis. You'll realize it's quite a bit less than we're told we need.

Bobbi:
You also it seems learned that you can wait. We live in such a culture of abundance here in the United States that had you waited to buy the dog toys and evaluated whether you need them, it's not like they wouldn't have been there. There's no fear that it won't be there if you don't buy in advance. The same thing applies to children and for ourselves. We don't necessarily need to stock up a head of time. We can almost like the stores now do with as needed inventory. We can almost act that way for ourselves.

Liz:
So true and I think we often have this scarcity mindset that we won't have an [inaudible 00:08:22] we won't be able to provide for kids or our pets or our families. When in reality, we probably have plenty and we probably can make do with what we already own. My other favorite thing to do is source things used. Used cars, used furniture, used stuff for my kids. You can save 50, 75 percent sometimes 90 percent off of what something would have originally cost just by getting it used. There are so many sources right now of used things. Craig's List of course everybody knows about. Buy nothing groups. Buy and sell groups on Facebook. Just talking with your neighbors and friends. Finding hand me downs. Of course finding fantastic things on the side of the road which I advise caution but really can be done to great effect.

Liz:
Essentially looking at ways to not buy new. This not only saves you money but is environmentally friendly. It takes away a lot of that paralysis by analysis that I get when I'm looking at Amazon and reading 500 reviews. Like, "I don't know which toddler sippy cup to buy". If you just get it used, you kind of remove all of that stress and time from your search.

Bobbi:
And for your money tip Liz you're going to help us all live healthier for less.

Liz:
Yes. It's often possible to exercise for free by bartering or trading with your exercise studio. When I lived in Cambridge outside of Boston, I volunteered at the front desk of my yoga studio in exchange for free yoga classes. This was something I didn't realize was possible until I tried to save as much as I could every month and realized I was spending tons and tons of money on yoga classes. I think it's easy for us to look at exercise and think, "Oh I'm happy to spend on that because it's a good thing". And it is a good thing but you can often do it for free and I've heard from readers who have accomplished this at Crossfit studios, Pilates, ballet just about any type of exercise that the studio is often looking for this opportunity to make a barter or a trade. I used to take out the trash, sweep the floors, work at the front desk. Free yoga.

Bobbi:
How much do you estimate you saved?

Liz:
Doing that it was thousands of dollars. It's another great example of how costs really compound over the course of a year. You might only be spending 50 dollars, a 100 dollars, 200 dollars a month on exercising but when you think about how much that is over the course of a year and how much that money could do for you if you instead invested it or used it in a wiser way. It really becomes pretty profound. When you start to apply this to every line item in your budget, then you really can start to see astronomical savings.

Bobbi:
How did you approach the yoga studio because a lot of people might say well that's great but that's kind of a weird conversation. To be a client there and just sort of say, "Oh can I take out the trash and go to yoga for free"? How did that actually happen?

Liz:
Fortunately for me they had a poster up that advertised this program and so I was able to just email the email address on the poster but I know that this type of work study program often exists in studios. You can just ask, "Do you have any type of work study program where I could volunteer in exchange for classes"? And if they say no nothing is lost. They've said no. If they say yes, fabulous. You've now got an opportunity to get free classes.

Bobbi:
All great. I love that idea. Tell us more about your book and where people can find you.

Liz:
The book is Meet the Frugalwoods: Achieving Financial Independence Through Simple Living and it is a memoir about the financial journey that essentially I've been on and that ultimately led me to living on a homestead in Vermont. You can find the book on Amazon, at Barnes and Noble, at any local bookstore anywhere that books are sold.

Bobbi:
And where can people find you? Social media, website all that good stuff?

Liz:
Sure. So it's all Frugalwoods across the board. My website is: Frugalwoods.com and you can find me on Twitter, Instagram and Facebook at Frugalwoods.

Bobbi:
Liz you are wonderful. Thank you so much for joining us.

Liz:
Oh thank you for having me.

Bobbi:
Okay everyone. Liz totally delivered in this episode especially with taking the lessons from buying habits with Gracie and then taking those lessons and applying them when she became a parent to humans. Financial grownup tip number one. Liz talked about buying used stuff for your kid. Don't forget to sell stuff. For example, we were gifted an incredible and very pricey stroller when my son was born. We kept it in good shape and when he outgrew it, we posted it in a Facebook group and we were able to sell it to a local person for more than half the original cost which was still several hundred dollars. It pays off. Financial grownup tip number two. A word about pets. They are expensive. While you can easily avoid luxury pet wardrobes if that's your thing, that's fine but you can avoid it. It's a choice.

Bobbi:
You cannot neglect their health. Make sure you have a very big budget for that. I can take my Morkie in for a checkup and a routine vaccine and walk out with a very large bill. I also want to talk about pet insurance. It is also very expensive and can be limited in its coverage. In many cases it is not something that makes financial sense if you do the math. My family decided to have it for our Morkie for one reason. We never wanted to make a health decision about her after consulting our bank account.

Bobbi:
Pet health care expenses when they do need care beyond the routine, can put owners in a very tough positions. You may be asked to pay let's say a 1000 dollars for a bunch of tests. How do you say no? Then the tests show the pet needs a procedure; another bill. Then therapy and so on. It adds up and our pets are priceless but our money is finite. At a certain point you could be put in the position of saying, "Is so many more months worth this many more dollars"? Well the answer is usually going to be yes because we're human and we love our pets. The reality is that decision could very easily derail other financial needs, obligations and plans.

Bobbi:
If you get a pet, research pet insurance and make an informed decision. It is expensive. Usually it's only affordable if you get it when your pet is young. It's worth being proactive early on.

Bobbi:
All right. If you have not heard yet, I am very excited about this. We are going to start having one guest a month. Be a listener. If you want to be considered email us at info@financialgrownup and tell us what money story and what money tip you would share if you were chosen. If you have not already, please subscribe and help us spread the word by sharing on social media. I am at Bobbi Rebell at Twitter, on Instagram I am at Bobbi Rebell1 and go to BobbiRebell.com forward slash financial grownup podcast to learn more about the show and to sign up for mailing list so you can hear about things like how to be a guest on the show.

Bobbi:
I hope that you enjoyed Liz's story and that we all got one step closer to being financial grownups.

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

Chris Browning, host of the Popcorn Finance podcast got a clean bill of health for his wife after a hospital stay a few years ago. But despite having been patients there before, a billing mixup left his credit score needing intensive care. 

Chris’ Money Story:

Chris Browning:
Yes so you know, unfortunately my wife, she had to go in for surgery and which is never a good thing. So we went to the hospital, everything got taken care of. She's all well now. We figured we'd just get a bill in the mail, that's how most medical bills come, they just send you something in the mail.

Bobbi Rebell:
Did they do any paperwork while you were at the hospital? Did you give them insurance information? What actually transpired at the hospital? Because you do usually fill out some stuff.

Chris Browning:
Yeah, so leading up, you sit in the finance office and they have you sign a couple of waivers and disclosures. And they say. "Alright, let's see your insurance". They took a copy and they said, "Okay we'll bill you". And that's literally all they told me. No further information other than that.

Bobbi Rebell:
And the hospital was in Network? Do you remember?

Chris Browning:
Yeah, it was an in Network hospital.

Bobbi Rebell:
So you were trying to be in Network, okay.

Chris Browning:
Yes, so we did everything we thought we were supposed to do and we visited the hospital before and the billing seemed to work fine, so you know we didn't even think twice about it. It felt normal.

Bobbi Rebell:
This might be important later on. You were in the system having visited the hospital before?

Chris Browning:
Yeah, it was a local hospital.

Bobbi Rebell:
Okay.

Chris Browning:
So we just thought, we'll get a bill in the mail like we have in the past. We waited around, nothing came after a couple of months and to be honest, I kind of just forgot about it, because it had been so long and it just never showed up.

Bobbi Rebell:
I would totally forget about it.

Chris Browning:
Yeah, after two months, you assume you would receive it. After that, life just goes on. You do other things. You live life. And so, I have this habit of checking my credit score, because one of my credit cards on their app, they allow you to check your credit score for free, and they'll update it like every seven days. And so I was just taking a look at it, and I noticed my credit score had dropped like a crazy amount. It had dropped about 150 points. That was very alarming, to say the least. And so I decided to take a look in my credit report. And I went to freecreditreport.com. I saw this like delinquency mark and I was like, that's strange. I remember paying all my bills.

Bobbi Rebell:
Right.

Chris Browning:
And when I looked into it, it just gave me just a random number. It didn't really give me a lot of details.

Bobbi Rebell:
Like a phone number?

Chris Browning:
Yeah, it was a random phone number from a ... it was an area code I'd never seen before. And so I gave the phone number a call, and then they gave me the details. They said this is from the hospital that we had visited, and they say you didn't pay your bill and it's been turned over to a collection agency. And this was the collection agency that I was speaking with.

Bobbi Rebell:
Wow.

Chris Browning:
I was just shocked and I was like, well how did this happen? And they have limited information.

Bobbi Rebell:
Sure.

Chris Browning:
And all they'd allow me to do at the time was they said, "Would you like to set up a payment plan?". And I was like, well yeah I want to get this cleared up. But I said, "Let me call the hospital first".

Bobbi Rebell:
Well right, and how do you even know they're legit. I mean they're saying they have the debt, but what exactly happened? Because you'd never heard from the hospital.

Chris Browning:
Exactly, so I was a little hesitant. I don't want to give you money just yet. So I called the hospital and got hold of billing department and I asked them. I said, "I see this delinquency on my credit report. They're saying that our bill was into collections, but we never received a bill in the mail". They said, "Well yeah, we mailed it out to you". And I said, "Well we haven't got anything for months". So they checked their system and they said, "Well here's the address we have for you", and it was the wrong address. They had transposed the numbers around, and who knows where the bill actually went.

Bobbi Rebell:
Which is crazy because two things. First of all, you had been to this hospital before, so presumably you were in the system correctly at some point because you had paid previous bills. And number two, any company, any person, we should all do it, but certainly a company, a hospital, should have a return address. So if they were going to the wrong address, you would think that they would return the mail, and the hospital would receive it back.

Chris Browning:
Exactly. You think they'd be some type of notification for them to know that whatever they mailed out just came back.

Bobbi Rebell:
And they never called you.

Chris Browning:
They never called.

Bobbi Rebell:
But presumably your phone number is on there.

Chris Browning:
Exactly, you'd think if they hadn't been paid all this time, they'd have at least called to follow up. But no. I think maybe it's just the sheer volume they deal with. They don't even try, they just immediately send it to collections after the time period had passed.

Bobbi Rebell:
So then what did you do?

Chris Browning:
So after I verified with them what collection agency they actually sent the bill to, and it matched the information they I had received from the number I had called, I called the collection agency back, because at that point, the hospital said there's nothing we can do. It's been sold to collections, you know it's out of our hands. I called the number back, I spoke with them. I said, "Yes, we want to take care of this". And I said, "If we pay this off, is there a way that this could be removed from my credit report, because it's a huge mark on my credit?".

Bobbi Rebell:
And it's also not your fault.

Chris Browning:
Exactly. Because I explained to them, I said we just never received the bill. I didn't know what type of pushback I was going to get. If they were going to say no. But surprisingly they said, Yes. If you set up, if you agree to a payment plan now, they gave me the total amount. It matched what the hospital said it should be. They said, if you pay this off, we will contact the credit bureaus and have the delinquency removed, because you've taken care of this.

Bobbi Rebell:
Of course. That's the least they can do. Did the hospital take any ownership of the fact that they had not followed up?

Chris Browning:
Not at all.

Bobbi Rebell:
That's disappointing.

Chris Browning:
They basically just said, sorry, nothing we can do. It's out of our hands and it was on me to take care of it.

Bobbi Rebell:
And it's foolish on their part because generally, and I assume this was the case when you send something to a collection agency, they're only getting a fraction of what the bill was. So they lost out for not bothering and not having the right systems in place to check with you. Presumably the doctor could follow up with you and your wife, so they had contact information that was correct in some part of the system.

Chris Browning:
You'd think that if they knew they're going to lose money, that it'd be in their best interest to do a little more follow-ups, spend a little more time, but no, they just I guess, just dump it off.

Bobbi Rebell:
Right, they lost money too. So that maybe there isn't the right stakeholder at the hospital that took ownership of the fact that that bill was not being paid for that reason.

Chris Browning:
Exactly.

Chris’ Money Lesson:

Chris Browning:
I would say first of all, make sure that you follow up on all your medical bills. Even if you think that the office is going to take care of it the way they should, you just never know. You could end up in the situation like this. So I do acknowledge that I could have called and followed up after a month of not hearing anything back.

Bobbi Rebell:
But maybe the insurance you were in Network, so if I was doing something in Network, I would have assumed that if I didn't get a bill, the insurance covered it.

Chris Browning:
I made that assumption too, but I think after this now, I'm going to be on the safe side.

Bobbi Rebell:
Of course.

Chris Browning:
I'm going to give them a call just to follow up if it's been like an unusually long amount of time since I haven't got any communication from them. Just to eliminate any issues or this ever happening again.

Chris Browning:
And the second thing I would say, check your credit score. I was really fortunate that that was a habit that I had picked up. You know we had been paying off some debts so I was in the habit of looking at my credit score to see how it was changing. That's the only reason I knew that there was any type of issue is because I saw my credit score had dropped drastically, and that triggered me to look at my credit report, and that's where I found the error, and I was able to finally take care of it.

Chris’ Money Tip:

Chris Browning:
So my money tip would be check with your credit card company, if you do have a credit card. Or even some banks. A lot of them offer access to your credit score and some even your credit report directly through their website or their mobile app. And so it's really simple. It's free a lot of the time and it's just a really convenient tool to have with you, and whether you're looking for errors or you just want to kind of track your progress. I think it's a really great incentive that these banks are offering to let you stay on top of your credit and your finances.

Bobbi Rebell:
And specifically, how often do you do that?

Chris Browning:
I've slowed down. I was a little obsessive. I was checking like every day at one point. Now I'm on a once per month basis. I'll log in, just kind of look and see how things are going, just I want to keep the practice up. I don't want to get too comfortable and let too much time pass, because who knows when an error could pop up.

Bobbi Rebell:
So when people check their credit score, what are the things that they should be looking for that are good and that are bad?

Chris Browning:
So I would say for sure, any type of drastic change. So if you've made this a habit and you're checking on a regular frequency, your credit score's not going to swing wildly. You know it's normal for it to swing 10, 20 points here and there. But if you see any type of drastic change, that would for sure be a trigger point to let you know you need to look into this a little bit more. Whether it's going to some place like freecreditreport.com which is run by Experian and you're getting a copy of your credit report just to see what's going on. Wild changes in any area of your finances is normally a sign of something that's not normal and that's maybe something you should look into a little bit more.

Bobbi’s Financial Grownup Tips:

Financial Grownup Tip Number One:

The only thing Chris did wrong here, he did not follow up in finding out what he owed the hospital. So the tip is to try to stay on top of your medical bills, especially the ones that you know are probably coming. Even if you're hoping they're not. That said, the visit was in Network, so Chris in all fairness could have believed there wasn't much to do except for a co-pay that he probably had already paid at the hospital. But at the end of the day, he himself says he should have checked in and been more on top of it. Mixed feelings about that though.

Financial Grownup Tip Number Two:

Don't assume that corporations or institutions such as hospitals are competent in their billing. Question everything. This especially goes sadly for end of life situations where the family is distracted and just wants to move on. Assuming you do get bills, try hard as it may be to go through them. I know of some instances where the bills were so out of control, literally offensive, that people have gone to the financing offices of the hospital and just negotiated them down on the grounds that no one could possibly go through every charge for an overpriced Bandaid or medication or whatever, and prove that it actually happened, was given and was priced correctly. Fairly, and fairly is pretty broad when it comes to our healthcare system. Hold them accountable. Just because they throw a list of a thousand teeny charges on a bill, doesn't mean you can't question it.

Episode Links

• Listen to and learn more about the Popcorn Finance Podcast

• Check your credit score!

Follow Chris Browning and Popcorn Finance!

• Twitter - @popcornfinance

• Instagram - @popcornfinancepodcast

• YouTube - Popcorn Finance 

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.

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

 

In Manisha’s money story you will learn:

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

-How she bonded with her father over an HP12C calculator

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

-The role inflation plays in the future value of investments

-The power of compounding

In Manisha’s lesson you will learn:

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

-The corrosive power of inflation

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

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

In Manisha’s money tip you will learn

Manisha’s investing formula

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

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

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

4. That is the amount that should be in equities

5. For example Manisha is 47. 

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

 

In My Take you will learn:

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

-Exactly how to find out the status of your retirement accounts and if you are on track to reach your goals

-How and why you should automate your retirement savings. 

 

Episode links: 

Follow Manisha!

Twitter: @manishathakor

Facebook: Manisha Thakor

LinkedIn Manisha Thakor

YouTube: Manisha Thakor

Instagram Manisha Thakor

Pinterest Manisha Thakor

MoneyZen.com

Get Manisha’s books! http://www.moneyzen.com/books/

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Transcription

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

Manisha Thakor:
He showed me how to calculate how much money I would have by the time I was 65 if I invested my babysitting and my lawn mowing money, and then we did a couple scenarios. We tested how much I would have if I was earning 5% after inflation, if I earned 6% after inflation, and when I saw how big those numbers were I was just hooked.

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

Bobbi Rebell:
We are geeking out here at Financial Grownup, but stay with me friends because you will have more money and be wealthier if you listened to this episode and follow my guest advice. Manisha Thakor is the author of Get Financially Naked, How to Talk Money With Your Honey. She is also the force behind MoneyZen, and is a practicing certified financial planner. If that sounds pretty cerebral, well, she will take that as a compliment. She started learning about investing very, very early. Here is Manisha Thakor.

Bobbi Rebell:
Manisha Thakor, welcome. You are a financial grownup. I'm so excited you're joining us on the Financial Grownup podcast.

Manisha Thakor:
I'm so excited to be here, and to be deemed by you a financial grownup.

Bobbi Rebell:
You're very much a grownup. You're the author of two books, On My Own Two Feet, and I love the second title, I know everyone does, Get Financially Naked. You also have MoneyZen. Lots going on.

Manisha Thakor:
I feel super excited about the world of personal finance and investing.

Bobbi Rebell:
Good, and I'm super excited about the story that you brought to share today, because it has to do with some father-daughter bonding around, not the dinner table, around the HP 12C calculator.

Manisha Thakor:
I love this. When I was around 11 years old, my dad, he's an MBA and a CPA, he sat me down in a moment of father-daughter bonding that only financial geeks, like ourselves, could really appreciate. He had an HP 12C calculator, which for folks who may not be familiar with it, is a financial calculator that enables you to do sophisticated compounding calculations on it.

Manisha Thakor:
He showed me how to calculate how much money I would have by the time I was 65 if I invested my babysitting and my lawn mowing money, and then we did a couple scenarios. We tested how much I would have if I was earning 5% after inflation, if I earned 6% after inflation, if I earned 7% after inflation, and when I saw how big those numbers were I was just hooked.

Manisha Thakor:
That was really my first introduction to the power of compounding, and I think because he had my physically touching the buttons on the calculator, and then he made me write down the numbers in a little grid on a notepad. I can literally still even remember what the notepad looked like. It was so tactile and so visual.

Bobbi Rebell:
Do you have the notebook still?

Manisha Thakor:
You know, I wish I did. He and I both say in retrospect, "We totally should have saved that for the grandkids," but it's in my mind's eye. That's how I got hooked on saving and investing.

Bobbi Rebell:
So then what is the lesson for our listeners? Should everyone be bonding over calculators?

Manisha Thakor:
That's right.

Bobbi Rebell:
We know that's not going to happen.

Manisha Thakor:
No, I-

Bobbi Rebell:
Let's bring it down to a realistic level.

Manisha Thakor:
The lesson for me, and the lesson that I want to scream from the mountain tops, is, and particularly for women, is that it's not enough to just save money. Saving is great, and it's freaking hard to do, but you must invest it as well, first and foremost to offset the corrosive power of inflation.

Bobbi Rebell:
Which is picking up by the way, so that's something we need to start being more aware of, and a lot of young people haven't really seen inflation at the level that other generations have. But it is going to become a bigger part of our dialog.

Manisha Thakor:
Yeah, and Bobbi, you've nailed it. We've just gone through such a bizarro period of de minimis inflation. An example I love to give is 100 bucks over a 30 year period at 3% inflation is worth $40, was, at the beginning. If you just increase that inflation to 5%, which doesn't sound like a big jump, but that drops the value of $100 in 30 years to what $20 would have bought.

Manisha Thakor:
So small [inaudible 00:05:54] inflation have a huge, huge impact, and that's why you cannot just save. You have to invest, because the first step of investing is keeping your money growing at least with the rate of inflation. If you do investing well, then ideally over the long run you grow your portfolio even faster than inflation, which increases your real purchasing power.

Bobbi Rebell:
Okay. Now for your money tip, Manisha. We're geek out even more, because you have actually brought a formula. Your, Manisha's, magical formula for investing success. I promise everyone, just stick with us, she says it really well. She's going to explain it all, and we're going to have it all written down in the show notes for you as well. Go for it.

Manisha Thakor:
The way I think about how to take your hard earned savings and invest it is the following. First, take a look at the total dollar value of your current saving and investment portfolios. Second, subtract out any money you know you need to spend in the next five years. This could be money you need for a home down payment, or it could be your six month emergency fund.

Manisha Thakor:
Then, for any of your long term money, which for most of us is our retirement money. So it's any money that you know you don't have to spend in the next five years. What you do, is you take 110, and you subtract your age to get a back of the envelop estimate of what percent of your portfolio should be invested in stocks. That was a mouthful, and Bobbi, as you mentioned, it will be in the show notes, but I'll give you an example.

Manisha Thakor:
I'm 47 years old. We'll round that down, because at my age you like to round down. To keep the math easy, 110 minus 45 equals 65. So a good starting point for me, for how much of my long term money at my age should be in stocks, is 65%. Lo and behold, that's how much I have of my long term money in stocks.

Manisha Thakor:
The biggest mistake that I am seeing with young people these days is shying away from investing their savings, because they're afraid of losing money. So they're missing those vital early years of compounding. That's why it's so important that you subtract out the money you need to spend in the next five years, so no matter what the market is doing, you're fine. The money you know you needed, it's in cash. It's only your long term money that's being invested.

Bobbi Rebell:
I think a lot of young people witnessed their older siblings, or their parents, really being burnt in the recession, and that's a lot of the hesitation.

Manisha Thakor:
I'll just say, Bobbi, when I hear somebody tell me that 2007 to 2009 ruined their retirement, what I say is, "No. Either you had the wrong asset allocation going into it, or you blink and you deviated from your plan." Because if you followed the formula that I'm saying, and you didn't have any money that you needed to spend in the next five years in the market, in 2007-2009, you would have seen your portfolio drop as much as 50%, but you wouldn't have sold a single share of anything, because you didn't need to touch it, and then you would have seen your money double or triple as you came out of the recovery.

Manisha Thakor:
So the people who lost in 07-09, where the people that were forced to sell at bottom to maintain their lifestyle, or got scared because they didn't have the cash cushion, and sold at the bottom. That's why this formula is so important.

Bobbi Rebell:
Right, and you've got to sit tight. Even the beginning of 2018 we had some scary days. You've got to know your focus and stick with the plan. All right. Mrs Manisha, I also hear you have big news, new projects, new jobs. Tell us.

Manisha Thakor:
I'm so excited. I have just accepted the role of vice president of financial education for an amazing firm called Brighton Jones. I could not be happier. When I think about what I want to accomplish in this world, my belief is that money is power, and women need more of both.

Manisha Thakor:
And so I am going to be doing my darnedest in this new role to help women achieve that. As part of that, I'm really going to be ramping up my efforts with my MoneyZen newsletter. So if listeners are interested, I encourage you, go to my website, moneyzen.com. I'll have a monthly newsletter that I'll be putting out. It's educational, and I'm really going to be working hard to share the most vital resources, articles, tools, each month around women's economic empowerment, and how we can all use personal finance and investing to increase our voices and choices. I always say, "Money gives women, it gives everyone, voices and choices," and financial education, and financial guidance are what helps unlock those doors.

Bobbi Rebell:
Awesome. Before I let you go, where can we find you on social media?

Manisha Thakor:
My name is a mouthful, and I'm the same handle on everything. I'm ManishaThakor everywhere. It's M-A-N-I-S-H-A-T-H-A-K-O-R, on Twitter, Facebook, LinkedIn, Instagram. If you forget that, go to moneyzen.com, because I have all my social media icons right up at the top.

Bobbi Rebell:
All right. Thank you so much for joining us.

Manisha Thakor:
Bobbi, always a pleasure to chat with you.

Bobbi Rebell:
As warned, Manisha and her dad totally geeked out with all that math, but the good news is, you guys don't need to go out and buy yourself fancy HP 12C calculators and do all this kind of fancy math, because these days it's really all there for you.

Bobbi Rebell:
Financial grownup tip number one, there is nothing more powerful than seeing the numbers. And like I said, you don't even have to do the math yourself these days. Log into your HR website from your job, or if you work for yourself and you have retirement accounts, which you should, go there. Go to the provider, and just take a look. Most of them will have nice calculators. They'll do the math for you. They'll have probably some graphic ways to show you how you measure up, where you are relative to your retirement goals.

Bobbi Rebell:
You can actually see how you stand, and see how you feel about it. You might get pretty emotional. It could be a really emotion. You might doing pretty well. It could possibly be not that great, but maybe that will motivate you. But the important thing is, get the information, it doesn't take much work, and make decisions from there.

Bobbi Rebell:
Speaking of decisions, financial grownup tip number two. While you're on that website, look at the retirement savings, and look for a box that says, "Increase your withholding," or a box you should check that says, "Increase your withholding by 1% every year," and of course check that box.

Bobbi Rebell:
Now, you can always undo it, but by checking that box it will automate increasing the amount of money that you are putting away each year, and you probably won't feel it because it's tax deductible, so it won't cost you that full amount, and it will amplify your savings.

Bobbi Rebell:
We have been hearing a lot from you guys, wanting to share your own financial grownup money stories, lessons, and money tips. So we are going to start having one guest a month be a listener. If you want to be considered, email us at info@financialgrownup.com, and tell us, what is the money story that you would like to share, and what is the money tip that you would also share with us, if you are chosen.

Bobbi Rebell:
Subscribe if you have not already, and help us spread the word by sharing on social media. I am @BobbiRebell on Twitter. Follow me, and please retweet these silly promo videos I'm doing. They're a lot of fun. I enjoy making them. Hopefully you guys are going to enjoy seeing them, if you have not already. Help us reach more listeners. On Instagram I am @BobbiRebell1, you can also repost those, and go to bobbirebell.com/financialgrownuppodcast to learn more about the show, and sign up for our mailing list so you can hear about things like how to be guest on the show. I hope you enjoyed Manisha's story, and that we all got one step closer to being financial grownups.

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

 

Whitney Johnson, author of "Disrupt Yourself” and her new book “Build an A Team” finds out from her financial planner that her overspending is impacting her ability to tithe 10 percent and support her church. She and her family plan a self-disruption, downsizing their life so they can deploy their money in a more intentional way. 

 

In Whitney’s story you will learn

-How a phone call from Whitney’s financial planner got Whitney’s attention about her finances

-Why Whitney was not going to be able to reach her financial goals, despite a relatively high income

-The shifts that Whitney made in terms of her spending and savings habits

-How her ties to her church and her belief in God inspire her financial planning

-How she spends differently as an entrepreneur compared to her previous career working on Wall Street

-Her belief that money is meant to be a servant, not a master

-How she uses money to support her values

 

In Whitney’s lesson you will learn:

-Every tie you spend money you are voting on the kind of world you want

-The importance of modeling financial spending for your children

 

In Whitney’s money tip you will learn:

-Ways to teach kids about investing

-How to buy fractions of a share of stock

-Whitney recommends an app called Stockpile

-How Whitney looks to the theories of Peter Lynch and advocates buying what you know and use and value, and to couple your investing behavior with your consumer behavior. 

 

In my take you will learn:

-How allowing your values to guide your financial life can be rewarding

-Why disrupting your life to better align it with your financial values is something people at any income level should consider

-How you can be pro-active in taking down barriers for your bosses, to create better odds of them giving a green light to your goals

-How I got my bosses to allow me to work a 4-day week for years, by removing barriers and creating solutions before I approached them. 

Episode Links

Twitter - @johnsonwhitney

Facebook - facebook.com/johnsonwhitneyauthor

LinkedIn - https://www.linkedin.com/in/whitneyjohnson/

Get Whitney’s new book: Build an A Team: Play to Their Strengths and Lead Them Up the Learning Curve. Free chapter download available at https://whitneyjohnson.com/ateam

Stockpile

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Transcription

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

Whitney Johnson:
"I tithe, I pay 10% of our gross income to God, to our church," and he was just like, "Okay, you've got a problem here because this isn't going to happen in addition to some of your other financial goals that you have." That was a really important wake-up call for me.

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

Bobbi Rebell:
Hey, friends. Well, despite the clip you heard at the top of this episode, today's podcast is not about religion, but it is about values, and leveraging your money and your financial resources to support what you and your family believe in. Whitney Johnson's new book is called Build an A-Team: Play to Their Strengths and Lead Them Up the Learning Curve. She is also the author of the bestseller Disrupt Yourself: Putting the Power of Disruptive Innovation to Work, and she hosts, you get the theme here, the Disrupt Yourself Podcast.

Bobbi Rebell:
In this case, the story that she's going to share, Whitney disrupted her entire family life, downsizing everything to get to her financial goals and to have the financial resources to support what she and her family value. She lives what she preaches. Here is Whitney Johnson. Whitney Johnson, you are a financial grownup. Welcome to the podcast.

Whitney Johnson:
Thank you for having me, Bobbi.

Bobbi Rebell:
First of all, I do want to congratulate you on your new book. It is Build an A-Team and we're going to talk more about that going forward, but just high level, what's it about?

Whitney Johnson:
Build an A-Team is about helping you as a manager build a team that can manage through change, that can be innovative and high performing, and the key is to let your people learn. When you allow them to learn, leap, and repeat, they are engaged and therefore happy, they love coming to work, they're more productive, and they love working for you, so you become a great place to work and a boss people love.

Bobbi Rebell:
That's great. For your money story, though, we're going talk about you and your team, which includes your husband and includes your financial planner, and an incident that happened when you got a call from your financial planner. You weren't achieving a goal that was really important to you. Tell us your money story.

Whitney Johnson:
Yeah. This happened about 15 years ago. I got a call from my financial planner and he said to me, "You are spending way too much money." It was really a wake-up call for me, because I was having the conversation with him of like, "I tithe, I pay 10% of our gross income to God, to our church," and he was just like, "Okay, you've got a problem here because this isn't going to happen in addition to some of your other financial goals that you have." That was a really important wake-up call for me, that I really needed to think about, "Okay, it's really great that you can earn lots of money, but you have to also basically manage your money and not just think about what you're earning. You have to also think about what you're spending and spend less than you're actually earning." That was a really important lesson for me and really started to shift how I was thinking about money, not only what I was earning, but also what I was saving.

Bobbi Rebell:
What was important to you was that 10%. I want to pick up on that, because in your heart one of the things that you really prioritize is giving to causes that you believe in, to religious causes, to God, as you say. That was really your priority and you weren't able to accomplish that, or you would not have been able to continue to accomplish that if you didn't change your ways.

Whitney Johnson:
Absolutely. It's such a great point because when I was thinking about the fact that I wasn't managing my money, a lot of times it was exactly to causes or people or things that I cared about, so it's not like I was being profligate, and yet if I didn't manage my money, those things that were deeply important to me, education for my children, et cetera, were not going to be a possibility, and that was a very important wake-up call for me.

Bobbi Rebell:
Were there things that you could pull out that you were able to change? What did you do to pivot from there?

Whitney Johnson:
I had become an entrepreneur at this point and I was still spending like I wasn't an entrepreneur. I was still working on Wall Street, and so one of the things that we did is we made some really tough decisions. Over the next year, we decided to downsize and to sell our house, and to really pare back on how we were spending our money in that interim so that we could still buy the things that mattered to us, but then also undertake these entrepreneurial ventures that were also important to us.

Bobbi Rebell:
And maintain a culture and a family life and setting an example, for the rest of your family, of giving.

Whitney Johnson:
Absolutely, 100%, because that is a high, high priority for me and for my husband and for our entire family, is to be able to give to others.

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

Whitney Johnson:
Most of us have a pretty ... not most, many, probably including myself, have a fairly froth relationship with money. We're like, "Is it good? Is it bad?" And it's not either, and so a couple of lessons that I've learned is that money is meant to be a servant, not a master, and that I, and this is a gradual lesson that I've been learning throughout my life, is to remember that that's the case. And that also the more money we're able to not only earn, but the more we extend our ability to do good beyond our physical presence, and so those are becoming mantras for me, but really guiding principles in terms of how I think about money saving tactically day-to-day, and spending, I should say, as well.

Bobbi Rebell:
And the importance of not only thinking about growing your business and buying things, but also the values that money can help you support.

Whitney Johnson:
Absolutely. I mean, one of the things, there was a quote that I remember reading probably about seven or eight years ago now, which is really, again, a bit of a watchword for me. It was Anna Lappé and she said that every time you spend money, you're voting on the kind of world that you want. That has been a really powerful thing for me. One, a dollar, $10, what kind of world am I saying I want with this money that I've just spent or allocated to whatever I allocated it to? That's just a really important thing to me and something that we're trying to instill in our children as well.

Bobbi Rebell:
You also have a wonderful money tip, and this is great especially when you talk about children. It's always hard to teach children to invest because sometimes stocks are really expensive and you can't always buy. I can think of Berkshire Hathaway, obviously as the most extreme example perhaps, but a lot of stocks, they don't split and they're very expensive to buy individual stocks. They just start buying 100 shares of a stock, so talk to me about your money tip, because it has to do with investing. It's something that is often applicable when children want to start learning about investing.

Whitney Johnson:
Yeah. One of the really wonderful boons of the last couple of years is you can buy fractional shares. You don't have to buy 100 shares. You don't even have to buy 10 shares. You can buy a half a share. There's something called Stockpile, stockpile.com, that you can go on there and say, "Okay, I want to spend $300," and so you can spend $300 on Apple or $300 on Tesla. Or just to other day for my son, for his birthday, he wanted to buy Spotify, and so I was like, "Okay, $300. We'll buy some Spotify stock." I don't actually know how much it costs, but you can buy a half a share, a quarter of a share, a tenth of a share, but it's just based on how much money you want to spend.

Whitney Johnson:
So it's a great way to start investing in the stock market and really building on an idea that Peter Lynch pioneered 20, 30 years ago now, which is to buy what it is you know and use and value, and couple your investing behavior with your consumer behavior, and fractional shares, and Stockpile specifically, allows you to do that.

Bobbi Rebell:
Wonderful. All right. Let's talk about your new book because it is coming out pretty much now. It's called Build an A-Team. It's a follow up to Disrupt Yourself, which was a huge, huge hit and relatable to so many people, especially myself, having disrupted myself in the last few years professionally. Tell me more about Build an A-Team.

Whitney Johnson:
Well, Build an A-Team came about because people had read Disrupt Yourself and said, "Okay. I get it. I got it. I'm willing to disrupt myself, but what about the people around me? How do I create an ecosystem that makes that possible?" So in Build an A-Team I make it possible for you to think about, "Okay, how do I create a workplace or an environment, a team where personal disruption is possible?" Then I flip it on its head and say, "Okay, so to you, the manager, you don't want just your people to be disputing themselves willy-nilly. What's in it for you?"

Whitney Johnson:
So I make the case that every single person is on a learning curve, including you, the manager, and you build that team that can innovate, that can manage through change by managing your team as a collection of S curves or learning curves, and optimize by having about 70% of your people in the middle at any given time, 15% at the low end, and 15% of your people at the high end. And when they get to the high of their learning curve, you allow them to disrupt themselves because by doing that, they start over that cycle of learn, leap, and repeat, and whenever people are learning, they're able to be innovative. When they're learning, they're innovative, and so you as a company can stay competitive, and because they're so happy at work, they love working for you as a boss, and so you become a talent magnet.

Bobbi Rebell:
Let me just ask you, if you are the employee, because a lot of our listeners are younger and starting out in their careers, if you are on the curve and you recognize that you're at the top of your curve, do you approach your manager and say, "I basically want a different job within the organization"? I mean, what do you do?

Whitney Johnson:
Obviously there are going to be risks in doing that. You've got to really suss out your boss. I think one of the ways that you can do that is, "Does it make sense for me to have this conversation with my boss?" What's that boss' track record? Do they have a history of people who have worked for them in the past, it's been possible for them to move on to other opportunities for which the boss advocated, that they've sponsored them into those opportunities? Then you can be pretty comfortable that having that conversation with them is a safe thing to do. You also, before you have that conversation, want to make sure that in fact you are ready to ... sometimes we overestimate our abilities. We all do it. We think we really want it, and so therefore it's time for us to have it.

Whitney Johnson:
So in having that conversation, what I would encourage you to do is go to your boss and say, "I've been in this role for about three years. It feels like I'm starting to peak and I've really hit my stride, and it's time for me to try something new, so here's what I would propose and here's the business case for why it makes sense for me to do it, because it's not just about me. It's going to help our organization be more innovative, and in the process I've identified this person over here that I think can really step into this role nicely, so you will not be left in the lurch. I will help train that successor so that they're able to continue to grow and develop. And at the same time I'm able to grow and develop as well as help our organization and our team be more innovative, and so that would be my suggestion to you."

Bobbi Rebell:
Anticipate what's going to go wrong and make sure you have a solution for every possible iteration. All right. Whitney Johnson, where can people find you?

Whitney Johnson:
You can find me at whitneyjohnson.com. If you want to email me, it's wj@whitneyjohnson.com. I would love to hear from you.

Bobbi Rebell:
And you have, by the way, a million, I heard a million LinkedIn followers.

Whitney Johnson:
I do, 1.2 million, actually, but I'm not counting.

Bobbi Rebell:
Oh my gosh. You are our hero, Whitney Johnson. I will leave all of your social media links in the show notes, but just so we have them here, Twitter, Instagram, all that stuff?

Whitney Johnson:
Yeah. Johnson Whitney, actually. It's Johnson Whitney.

Bobbi Rebell:
Okay. Good to know. Exactly. That's why we ask. All right. You're wonderful. Thank you so much, and congratulations on the new book.

Whitney Johnson:
Thank you, Bobbi, for having me.

Bobbi Rebell:
Hey, friends. Don't you feel so motivated by Whitney, like anything is possible if you know think it through and get really intentional?

Bobbi Rebell:
Financial grownup tip number one, let your values be a guide to how you want to not just spend your money, but spend your life. Whitney literally disrupted her entire life, her family downsized, and I don't have Whitney's personal financial info, but I'm guessing she does pretty well, so this is not really about income level. It's about allocation of your resources, whatever they are, to support the way you want to live your life and the role model you want to be for your family. In Whitney's case, it was about tithing to her church and other things that her family valued, like education and financial security and financial freedom.

Bobbi Rebell:
Financial grownup tip number two, get intentional about your career goals. You probably think you are, but be honest. Are you proactively doing something to remove barriers? Put yourself in your bosses' position and think about what they need to get you what you want. If you own a business, your clients are basically your bosses. Yeah, sorry, but kind of. Right? So come with solutions.

Bobbi Rebell:
When I wanted to work, for example, four days a week after having my son, I presented my bosses with the solution. My colleague, who was, fun fact, Manoush Zomorodi that many of you may know as the host of the Note to Self podcast, was also having her son. We gave birth, in fact, two days apart in the same hospital. Manoush agreed to be my Friday fill in. We presented a complete solution, and it was tough for the bosses to turn down something that was already good to go, especially with someone as wonderful as Manoush.

Bobbi Rebell:
Now Whitney is giving us the first chapter of her new book Build an A-Team: Play to Their Strengths and Lead Them Up the Learning Curve for free to download. Just go to whitneyjohnson.com/ateam and you can get that download, so start there for free and then go pick up a copy of the whole book ASAP. Build an A-Team has tons of specific examples in it that will give you a lot of aha moments of how bosses think and need to think, and it is well worth the time you will invest in reading it.

Bobbi Rebell:
Just a reminder, we are excited to start our once a month listener episode, so if you want to be a guest on Financial Grownup, email us with your money story and your money tip to info@financialgrownup.com. Make sure you are on our mailing list. Go to our website, bobbirebell.com/financialgrownuppodcast. You'll get a pop up and you can sign up. Be in touch on Twitter, @bobbirebell, and on Instagram, at bobbirebell1. Whitney Johnson gave us so much to think about. Here is to us all getting one step closer to being financial grownups.

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

Deborah Owens, aka America’s Wealth Coach  and creator of WealthyU literally drove down the value of her car,  and actually owed money at the end of her lease. She admits she didn’t even know the difference between owning and leasing a car. 

In Deborah’s money story you will learn:

-How Deborah found out she owed money on her car at the end of her lease

-Why Deborah made the decision to lease a car based solely on one piece of information

-The questions Deborah wished she had asked when she got the car

In Deborah’s money lesson you will learn:

-How she has applied the lessons from the first car she had to every future car she has owned or leased

-How she pays for and how long she now drives cars- and her advice for others

-What she learned about where it is best to finance a car

-Her car buying negotiation tips

In Deborah’s Money tip you will learn:

-How to assess big purchases like cars

-What to look for and what to ask when making those decisions

-Why car buyers need to look at more than the monthly payments

-The price of extended lease and loan terms

In my take you will learn:

-Why you need to read not just the fine print but all the print. 

-Specific techniques others will use to get you to sign something without reading it first. 

-The importance of paying attention to how long a loan is, and how you can save money with a shorter loan

Episode Links

Follow Deborah Owens!

Instagram @iamdeborahowens

Twitter @deborahowens

Facebook @deborahowenspage

YouTube Owens Media Worldwide  

Deborah Owens website https://deborahowens.com/

WealthyU

  

Loan calculator links

Bankrate

NerdWallet

Dave Ramsey

 

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Transcription

Deborah Owens:
I went over the mileage and then when I turned it in, they ding me on the mileage, they ding me on the wear and tear, and so I ended up owing them money and then I didn't have a car.

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

Bobbi Rebell:
Hey friends, this is a story about learning to read. As in read what you are signing and understand what is in the document. Sounds pretty basic but I think if we get a little honest here, we're all going to admit that we don't read everything we sign. I mean, good for you if you do. I own a condo, for example, I admit at the closing we sat there for hours signing endless documents, I did not read them all, I trusted my attorney so I'm guilty on that one, hopefully everything is fine, seems okay for now. Deborah Owens is known as America's Wealth Coach and she is the creator of WealthyU. She is also someone that we are going to learn a lot from. Here is Deborah Owens. Deborah Owens you're a Financial Grownup, welcome to the program.

Deborah Owens:
It's such a pleasure to be here Bobbi.

Bobbi Rebell:
And I am so glad to have you here. First of all, your moment that you're going to talk about is a good one and a dilemma that so many people have these days, but before we get to that, I want to ask you to tell us a little bit more about your new project. Because we met when you were doing a radio show but now you are focused fully 100% on WealthyU.

Deborah Owens:
Yes, I am. My journey has been quite the journey in that I really started out in the financial services industry as an advisor and then went on to be in management. And I was previously with a very large company, Fidelity Investments but it is through that experience that I really found what I was really good at. And that was demystifying the financial markets and making it easy to understand for the layman.

Bobbi Rebell:
Right. So tell us about WealthyU.

Deborah Owens:
So, WealthyU is an extension of that. It was really taking what I loved to do and that was educate people and give them insight around investing and now WealthyU allows me to scale that competency.

Bobbi Rebell:
Tell us about your money story that you brought with you because it has to do with a very common decision that so many of us make when it comes to how we're going to get where we're going, our cars.

Deborah Owens:
Yes. Well, as I reflected on this, I believe that the worst financial decision I ever made was to lease a car. Like many people, I was young and I wanted to get off of that. I had this really kind of hootie Mustang that one of my cousins was so angry for me buying because it was a stick shift and when you're learning that's the worst thing you can buy. But long story short, I had a friend he worked at a dealership and he said, you can get this great-

Bobbi Rebell:
Oh no, it's an old friend's story. Okay, go on. Sorry.

Deborah Owens:
That great car for a little bit of money that you can afford. I fell in love with this wonderful little 200 in excess and it had a computer in it and it talked and it had everything you could possibly imagine. And then two years later when I turned that car in-

Bobbi Rebell:
Wait. Did that you were releasing it, not buying it? Did you fully understand?

Deborah Owens:
All I loved about-

Bobbi Rebell:
You just knew the monthly payments?

Deborah Owens:
Yeah, I loved the monthly payments. I mean, all I was focused on was could I afford this each month, which is how most of us are sold cars that way or even our mortgages are sold that way. So, I could afford it, so I didn't really care. I didn't really think about what would happen when I wanted the next car. And so of course I decided two-year lease and I went over the mileage and then when I turned it in, they ding me on the mileage, they ding me on the wear and tear and so I ended up owing them money and then I didn't have a car. And so I was right where I started before I got the car. And that taught me a very good lesson.

Bobbi Rebell:
Wait. So, just to be clear, so not only did you not have a car at the end of the two years. I think a lot of people don't realize. They think if you lease a car, yes you lose out on owning the car at the end of the lease but you actually owed money to the dealer. Can you just explain how that worked?

Deborah Owens:
So, when you lease a car, you have to stay within a certain number of miles each year.

Bobbi Rebell:
So that is something in the contract that you didn't know to look for and therefore didn't read. So, people if you're going to lease the car, you need to look for it and know what it is, right?

Deborah Owens:
Yes. And make sure ... Of course, when they ask me what the estimated mileage that I would have per year, I didn't know what to tell them. I said, "Well what's the minimum amount?"

Bobbi Rebell:
Looking back, what is the lesson that you want to share with our listeners about this money story?

Deborah Owens:
Well, the moral to the story was, if it sounds too good to be true, it usually is. The lesson I learned from that really was A, I really wanted to minimize car payments and I wanted to own that car when I was finished with it. So, since then every car that I have purchased has not been brand new, I've either paid for it in cash or put a large down payment on it and I have driven my cars a minimum of 10 years.

Bobbi Rebell:
Okay, good. And you read the contracts too now.

Deborah Owens:
Absolutely. Know what you're getting into. And the other lesson that I learned, rarely do I finance a car through a dealership. Typically, I'm going in, I've already called my credit union to figure out what is the best loan terms I can get and I go in. I don't tell them I'm not going to finance through them but once I've gotten the price that I feel I want, then I tell them thanks I'll have my credit union call you and we'll seal the deal.

Bobbi Rebell:
I'm sure they're thrilled.

Deborah Owens:
Well, the less they know the better.

Bobbi Rebell:
I want to get a personal finance tip from you Deborah Owens.

Deborah Owens:
The tip that I have for anyone is when you make any kind of financial decision, really look at the long-term impact of that decision. And so the example that I would give, if we were to look at that car, don't just look at what your monthly payments are going to be, look at the total terms of the loan and based on the information that they're giving you, what is the overall cost of the car? What are you paying to own it. I think so often, we're sold things based on the monthly payment and we don't really recognize the overall cost of that financial decision.

Bobbi Rebell:
So always actually run the numbers and think about whether it fits into your long-term goals.

Deborah Owens:
Absolutely. Count the cost is the point I'm making. If you count the overall cost, it's going to cause you to really think about that decision. For example, if you're buying a $20,000 car and let's say you're financing it even at 4%. And what we're seeing is that the way people are qualifying for more expensive and luxury cars is they're extending the payments. The average term used to be four years, now the average term of a car has gone up to six or seven years and some people are paying upwards of 7 or $800 a month. The cost of extending a loan from four to seven years is huge and you're paying thousands of dollars. And the tip there is typically, if you have to extend the term of a loan beyond four years on a car, you probably can't afford it.

Bobbi Rebell:
Truth spoken. All right, and we'll all keep looking out for WealthyU and that app coming and you can check it out on Kickstarter.

Deborah Owens:
Thank you so much Bobbi.

Bobbi Rebell:
I liked this topic because it related not only to one of our biggest budget items, at least for many of us, which is a car or some mode of transportation, but also to anything that involves signing on the dotted line. Financial Grownup tip number one. We always hear, read the fine print. But Deborah admits not only did she not read the fine print, she didn't read any of the print. You also have to read the big print guys. Deborah wasn't even clear on whether she was buying or leasing, she was just all about those monthly payments and it does matter. We all think that way, can we afford the monthly payments. But it also pays to take a step back and think about what you're paying in total.

Bobbi Rebell:
For example, she didn't even know whether she would be keeping the car at the end of the lease. She seems to think that she would have the car at the end of the lease and she was certainly taken aback by the fact that she owed money. She didn't really understand what she had signed up for and if she had, maybe she would not have gone over the mileage limit or she might have made sure that she paid a little more upfront and had a higher mileage limit. She would have had more leeway. Really, Deborah just wanted to get in the car, she wanted the keys and she was going to sign it.

Bobbi Rebell:
So, anything you are signing, read it. Don't let someone rush you into signing something that you haven't read or aren't aware of what is in the document. So, for example, one phrase to look out for that someone might say to you is, it's all standard, it's what everyone signs, it's the same thing. But you know what? You're the one on the hook. So, especially in this case when you're buying a car, go through and take the time to read it, make them wait a moment, patience is key, it'll all be good but know what you've locked yourself into. And make sure that you're okay with it.

Bobbi Rebell:
Financial Grownup tip number two. Think carefully about the length of a loan, how much time it involves. So Deborah talked about how car leases are getting longer. For homes, this is also happening. This standard has always kind of been 30 years, now some people even are getting 40-year loans. But as many financial experts will point out, if you can swing something like a 15-year loan, which will have bigger payments, you can not only cut the time you are making payments, so you'll feel good, you'll have no overhead of that big mortgage payment, you're also going to cut the total amount that you pay in interest and that ultimately will make the house or whatever it is that you bought cost you less. It brings down the total cost and it's a good thing if you can swing it.

Bobbi Rebell:
I'm going to leave some links to loan calculators in the show notes and you guys can play around with the numbers that apply to your situation and figure out what would work for you. Friends, if you have not already hit that subscribe button so you don't miss any upcoming shows, please do so. Also continue to spread the word, tell your friends, share our posts on social media, share this episode on social media if you enjoyed it or other episodes. I'm loving the DMs that you guys are sending me and don't forget you can suggest future guests if there's someone you want to hear from, I'll try to get them.

Bobbi Rebell:
And follow me on Twitter @bobbirebell, Instagram @bobbirebell1, my author page on Facebook is Bobbi Rebell. And to learn more about the show and get on our newsletter, visit my website bobbirebell.com/financialgrownuppodcast. I hope you guys feel ready to make that big purchase with your eyes open after hearing Deborah Owens great story and that we all got one step closer to being financial grownups. Financial Grownup with Bobbi Rebell is edited and produced by Steve Stewart and is a BRK Media Production.

When Melanie Lockert and her business partner Emma Pattee launched the Lola Retreat in 2017,  profits were at the bottom of their list. So low they did not even try to get sponsors until just a few weeks before the event. What happened then was shocking. Plus a money tip for the luxury lover. 

In Melanie’s money story you will learn:

-The behind-the-scenes decisions that went into the launch of the Lola Retreat

-Why the creators of Lola prioritized content over profit

-How the last-minute decision to reach out for sponsorship took Lola from a money-losing venture into a profitable ongoing business

-Why they chose not to outsource as they were building the Lola Retreat

-The technique Melanie Lockert and her partner Emma Pattee used to attract sponsors to her first-ever Lola Retreat

In Melanie’s money lesson you will learn:

-The importance of actually asking for what you want

-How to leverage your reputation to build a new business

-How positive thinking even in tough times helped Melanie achieve her goals.

-Melanie’s new approach to negotiation

In Melanie’s money tip you will learn:

-Where to get luxury beauty services at a fraction of the cost

In my take you will learn:

-Why you should aim high when asking for money

-How smaller,niche events can offer great marketing value for even the largest companies

-Ways to save money on services by going to students in places like cooking schools and design schools, in addition to the beauty schools that Melanie discussed

Follow Melanie!

Twitter @deardebtblog @LolaRetreat

Instagram @deardebt @lolaretreat

Facebook Melanie Lockert

Melanie’s Dear Debt blog

Get Melanie’s book Dear Debt

Learn more about lolaretreat.com

Fidelity.com

FinancialGym.com

Kristin Wong is at TheWildWong.com

Erin Lowry/Broke Millennial is at https://brokemillennial.com/

 

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Transcription

Melanie Lockert:
Something completely shocking happened. We actually did get several thousand dollars of sponsorships within three weeks of the event, and we even got our last sponsor three days before the event. It was just a crazy experience for me.

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

Bobbi Rebell:
Hey, friends. You guys know that song, "Whatever Lola wants, Lola gets." Well, the reality is sometimes Lola has to actually ask for it. That is the irony of the story you are about to hear from Melanie Lockert. She is well-known from her blog and her book, Dear Debt, where she chronicled her feelings about the $81,000 of debt that she was saddled with. Melanie is also the co-founder of the Lola Retreat, and yes, the name was inspired by that song, because it is meant to be about women getting whatever they want. While the event is meant to teach attendees how to empower themselves financially, when planning her first conference, Melanie had to learn some lessons of her own in that regard. Here is Melanie Lockert.

Bobbi Rebell:
Melanie Lockert, you are a financial grown up. Welcome to the podcast.

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

Bobbi Rebell:
People know you from your Dear Debt blog, your Dear Debt book, and your newest project, which we will talk about more at the end of the podcast. Just briefly, what is Lola Retreat, because I know it's happening very soon.

Melanie Lockert:
Yeah. Lola Retreat is a women and money event, and it is a weekend full of education and workshop and panels to empower women to rock their finances.

Bobbi Rebell:
I wanted you to explain what it is because the money story that you're going to talk about has to do with it, and it has to do with year one, which was just last year, and how you've monetized the event and what you did right and what you maybe would do differently and are doing differently this time.

Melanie Lockert:
Yeah, totally. I had such a great money lesson last year. With the retreat, there was so much going on in regards to programming and attendees, and I was so focused on getting the content really wonderful and making sure that we got the venue right, the speakers and everything that sponsors were not really on my mind. I really just wanted to make sure that it was the best even possible, right?

Bobbi Rebell:
Well, and when you say sponsors, you were just funding it purely on the admission that you were charging people?

Melanie Lockert:
Our ticket sales were really getting invested back into the event, so we didn't really know if we were going to make money on this event or not. Three weeks before the event, Emma, my colleague, talked to me, and she was like, "Melanie, we're going to breakeven right now, so if you want to make some money on this event, either we're going to have to cut back or be happy with breaking even." I was like, "I don't like either of those answers. I don't want to cut back because this is our first event, and it needs to be super amazing, and I also want to make some money, even if it's just one dollar." I really needed just that symbolic metaphor that I made a profit, so I was like, "How am I going to do this?" I was like, "I'm going to approach sponsors. People sponsor events all the time. I don't know what I'm doing. I don't know how to approach sponsors, I don't know anything about it, but I'm going to go find some money." In the back of my mind, I thought, "Oh my goodness. It's three weeks before the event. I haven't contacted anybody about sponsorship money. It's too late."

Bobbi Rebell:
Had you guys discussed the concept of sponsors at all? Had it ever occurred to you before this?

Melanie Lockert:
We kind of did, but it was really at the bottom of our list. We really were just focused on making sure the programming was amazing and making sure all of the programmatic details were really in place.

Bobbi Rebell:
So just to be clear, it's not that you were trying and sponsors were rejecting, you just literally had not tried. Did you think about outsourcing it to somebody else, or it just slipped through the cracks?

Melanie Lockert:
It slipped through the cracks. It was something that we didn't really focus on at all. We didn't contact anyone about it until three weeks, and in the back of my mind, I was like, "Oh my goodness. It's three weeks before the event. There's no way anybody's going to give us any money at this point it's too late." But I wanted to do it anyways just so I could cross it off my list and say that I did it, and be like, "Okay, well, I tried to get money. It didn't happen, whatever," but something completely shocking happened. We actually did get several thousand dollars of sponsorships within three weeks of the event, and we even got our last sponsor three days before the event, and so it was just a crazy experience for me.

Bobbi Rebell:
Can you talk a little bit about how much money you got in sponsorships and maybe speculate what you think you may have left on the table had you tried earlier?

Melanie Lockert:
We did get several thousand dollars worth of sponsorships. I don't want to get into specifics, but I definitely know we did leave some money on the table.

Bobbi Rebell:
You made a profit of more than a dollar first of all, to be clear.

Melanie Lockert:
Yes, we did.

Bobbi Rebell:
That's excellent.

Melanie Lockert:
We did.

Bobbi Rebell:
You think you left money on the table?

Melanie Lockert:
I do think we left money on the table because, first of all, we did give sponsorships at a discount because it was so late, number one. Number two, there's only so much you can do in three weeks, so we didn't have really the time to foster that kind of outreach and sponsorship beforehand, and I think if we would've had more time to dedicate earlier on that we could've had more sponsorship money and really been able to fund the event in a better way.

Bobbi Rebell:
What did you do differently in year two?

Melanie Lockert:
This year we've definitely worked on approaching sponsors earlier. I'm happy to say that we're going to be working with Fidelity on a welcome reception for Lola Retreat year two. I'm super excited about that. They are a wonderful company, and they've always supported women and money. We're definitely working with a lot of scholarship sponsors this year. That makes me super happy because the scholarship sponsorship is near and dear to my heart. Essentially people sponsor a lovely lady to come to the event who wouldn't be able to otherwise come, so they get to read over the scholarship applications and they get to pick who they think would be a good fit to come to the event. It's really interactive, it's really an affordable sponsorship too, and at the end of the day it's one less ticket that I need to sell, so we've been focusing on that a lot as well, which is fun for me, and I really enjoy that part of it.

Melanie Lockert:
Yeah, I think this year we've had kind of more time to focus and more outreach, and then really focus on big partners. We've loved to work with Fidelity this year and continue working with sponsors that really align with our values.

Bobbi Rebell:
What is the lesson now? I know that we are still a couple weeks away from Lola Retreat. What is the lesson for our listeners about this? What's the takeaway?

Melanie Lockert:
The lesson is that you should always ask, and you should really check yourself if you think there's no way that you can do something because in my mind, I had already made up the fact that, "Oh, no one's going to give me money. It's too late. It's three weeks before the event. Why would anyone take me seriously?" Mind you, it was scary because in year one, this was before the event, we had nothing to show for it. We had no photos, we had no testimonials, we just had a website essentially. We had nothing.

Bobbi Rebell:
Well, you also had your reputation. You had a very strong reputation, as does your partner.

Melanie Lockert:
Yes.

Bobbi Rebell:
You did have that. That's a lot.

Melanie Lockert:
Yes, we did have that, which is definitely helpful, but from an event standpoint we had nothing necessarily to show, "Here are the testimonials, here are what people said, here are photos, here's impressions from the social media from that weekend." We had nothing concrete to show, and so in my mind it was like, "No one's going to take us seriously. No one's going to give us money," and I just had already made up my mind, but I was so shocked kind of how easy it was. I mean, it wasn't super easy, but it wasn't that difficult either.

Bobbi Rebell:
People said yes.

Melanie Lockert:
People said yes more than they said no actually.

Bobbi Rebell:
Wow.

Melanie Lockert:
I think I was just so passionate about women and money and doing this event, and I think people could see the grit and the passion in my words, and they can understand the idea. People were willing to invest in that idea, and those initial sponsors, I'm so grateful for because they really believed in us and our idea from the beginning when we had nothing to show. I'm really grateful for them, and then it just proved to me, like what other areas of my life am I convinced that, "Oh, this isn't going to work out, or this wouldn't happen," but if I just try, maybe it will. Actually, this is a reoccurring lesson for me. I actually when I was a non-profit employee before becoming self-employed, I had never asked for a raise once. Not once. I'm so ashamed that I've never negotiated my salary until becoming self-employed, because as a self-employed person, you have to learn to negotiate or you will not survive. This is kind of a reoccurring money lesson for me is that I have to know what I'm worth, and I have to negotiate, and I have to ask, and really at the end of the day, the worst thing people are going to say is no. No one's going to laugh at your idea and say you're stupid and call you ridiculous and think, "Wow, you think you're something else," or "you think you're a bigshot."

Melanie Lockert:
No one's going to say that. They're just going to say, "No, we can't do that." It's really okay. I'm really trying to push my boundaries and figure out other areas of my life that I can push and really kind of change the game a little bit.

Bobbi Rebell:
Let me just ask you before we get to your money tip. In terms of the money, you made a few thousand dollars in year one. In terms of how much more you're going to make this year, can you give me some idea of how the results changed when you were more purposeful in asking for sponsorships?

Melanie Lockert:
That's a good question. That's still TBD because we still have a lot of expenses that are going to be in the queue in the next coming weeks, but projecting right now it looks like hopefully double what we made last year, which would be really amazing, but like I said, we're not totally sure because there are a lot of last minute expenses that come up towards the end. We will see how everything shakes out, but I'm feeling pretty good about everything right now.

Bobbi Rebell:
I want to talk about your money tip because this one is brilliant, and I never thought of this. This is really original, and it's something that can let us all have our luxuries and indulgences, but within our budgets, or even just to save money for other things that we want to do even if we're not on a tight budget, so it's nice to spend a little bit less for luxuries in life. Do tell.

Melanie Lockert:
Totally. Yeah. My money tip is to go to a beauty school for haircuts, pedicures, manicures, or massages or facials. When I was paying off debt, I didn't really have extra money to do anything, but I still wanted to treat myself at least once a year to something, especially when I hit a big debt milestone, right? I found this beauty school in Portland, and the rates were so insanely cheap because all of them were students, and before you get scared, they do have kind of more professional level people there working alongside the students to make sure they don't mess up. I remember I paid like $35 for a pedicure, a manicure, and a facial.

Bobbi Rebell:
Total.

Melanie Lockert:
Total, and I'm pretty sure the school had a policy that you couldn't tip either because it was a school, so it was super affordable. It was really affordable. My money tip is to find a local beauty school in your area and see what services they offer. It could be much, much cheaper and at a fraction of a cost, and at least in my personal experience, it was wonderful. If you have a specific person that you love or specific things then maybe that's not necessarily the best tip for you, but for me, the services were completely comparable and totally worth it.

Bobbi Rebell:
I love that. Let's talk about the Lola Retreat. It is in my hometown, New York City, this year.

Melanie Lockert:
Yay, I'm so excited.

Bobbi Rebell:
Tell us more.

Melanie Lockert:
Yeah, it's going to be at the Financial Gym, so Shannon McLeigh, the CEO and founder of The Financial Gym is one of my best friends.

Bobbi Rebell:
And she was on the podcast last week.

Melanie Lockert:
Yes, she is amazing, and she has graciously agreed to host us in New York city, so Lola Retreat is at The Financial Gym April 27th through the 29th, and we are going to have sessions on how to pay off debt, how to get started with investing, how to level up your money with Kristin Wong. We also have Get Your Financial Life together with Erin Lowry. We also have some really interesting panels on how to prepare and deal with financial disaster as well as this concept of F Off Funds. I won't curse on the podcast, but it's especially important for women, especially right now for women to have a separate stash of cash to be able to say, "F you," in a situation that is not healthy, whether it's a workplace scenario, a relationship scenario. I think it's so important, so I'm really excited about the content that we have, and so excited to meet our lovely ladies. Yeah, I think it's going to be a wonderful weekend.

Bobbi Rebell:
Where should I send people to sign up for Lola and to be in touch with you?

Melanie Lockert:
People can go to LolaRetreat.com and check it out. People can also find me at DearDebt.com.

Bobbi Rebell:
All right. Melanie Lockert, Lola Retreat. Can't wait to get there. It's going to be amazing. Thank you so much.

Melanie Lockert:
Yes, thank you.

Bobbi Rebell:
Hey, friends. Loved hearing how far Melanie and her partner have come in just one year of the Lola Conference. Here's my take, Financial Grown Up tip number one. Aim high. In year one, Melanie didn't think she would get any sponsors. She was shy just about reaching out to anyone at all, but here we are, just year two, just a second year, and she has incredible brand. She has Fidelity, guys. Sensei, Shopkick, and of course The Financial Gym, so don't write off a large company assuming they will only sponsor large events. They will find, often, a lot of value in smaller, targeted, specific events that have engaged and invested audiences as is the case with Lola.

Bobbi Rebell:
Financial Grown Up tip number two, be creative when it comes to treating yourself. If you're feeling deprived financially because you never get to do anything, you are much more likely to cheat, just like on a food diet. Melanie talked about going to beauty schools for things like manicures, massages, facials, all that good spa stuff, but sticking to the theme of students, you can also, for example, have a great meal at a cooking school, or if you're redoing your home or redecorating one of the rooms but have a limited budget, consider getting a student from a local design school involved, and just think, you could be someone's final graduation project. You never know.

Bobbi Rebell:
All right, if you enjoyed Melanie's story, please hit the subscribe button, and if you have just a few minutes, leave a review on Apple podcast. They really do make a difference in getting the word out. I am also working on getting better at sending out my newsletters, so if you are not already on the list, get on the list. Just go to BobbiRebell.com. While you're there you can check out previous episodes by clicking on Financial Grown Up Podcast, and of course, be in touch. I'm on Twitter @BobbiRebell, Instagram @BobbiRebell1, and my author page on Facebook is Bobbi Rebell. I hope you guys all head out and treat yourselves to some affordable indulgences just like Melanie, and that we all got one step closer to being financial grown ups.

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

When model and actress Victoria Summer got her big break first in Saving Mr. Banks, which starred Tom Hanks,  playing Julie Andrews, and then in Transformers 4, she was happy about the big upfront paycheck- but got really excited when she learned about residuals aka passive income. 

In Victoria’s money story you will learn:

-About her first big breaks as a hollywood actress

-How the pay system in Hollywood works

-The similarities between acting and modeling and other “gig” economy jobs

-How Victoria manages to balance one-time paychecks and residual income

-What her one big spurge was after that big paycheck

In Victoria’s money lesson you will learn: 

-How Victoria creates multiple income streams

-Why Victoria organizes her money in different bank accounts

-Her philosophy of acting like she is broke as a budget motivator

-Her goals to start a skin care line, a vegan handbag line and grow her production company

-Her strategies to promote herself as a brand

-The importance of top line income

In Victoria’s money tip you will learn:

-The danger of taking advice from the wrong people

-The warning signs to look for in advisors

-Why well-intentioned advice can often be off-base

In my take you will learn:

-The importance of choosing side hustles that complement, not contradict your primary career

-Why taking advice from well-meaning friends and relatives should be taken in context. 

-The best way to find the right people to give you career and business advice.

Follow Victoria!

VictoriaSummer.com

Twitter: @VictoriaSummer

Instagram: @VictoriaSummer

Facebook: Victoria Summer Entertainment

---

Transcription

Victoria Summer:
Us as actors, we are personal brands. And all actors have to realize that you really are selling yourself. So for me it's work on promoting myself as a brand, and also, increasing the amount of income I can have from multiple streams.

Bobbi Rebell:
You're listening to financial grownup with me, certified financial planner, Bobbi Rebell. Author of How to Be a Financial Grownup but you know what, being a grownup is really hard especially when it comes to money.

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

Bobbi Rebell:
Hey everyone. So if you were to do a social media post about the gig economy, what kind of image would you use? Probably maybe an Uber driver, a millennial doing graphic design or coding or someone running errands at services like Task Rabbit.

Bobbi Rebell:
But take a minute to think about the business of acting. After the studio system ended, actors were in many ways pioneers in the gig economy. My guest today is a rising star. She is actress Victoria Summer, and she got her big break playing Julie Andrews in Saving Mr. Banks which starred, Tom Hanks.

Bobbi Rebell:
But the movie that gave her first really big payday, and key here is that it was more than just an upfront paycheck, was Transformers four. Here is Victoria Summer.

Bobbi Rebell:
Victoria Summer, you are a financial grownup. So great to have you on the podcast.

Victoria Summer:
Thank you. Great [inaudible 00:01:43] to be here.

Bobbi Rebell:
For those of you who don't know her work you will soon. She is a rising star, actually you've really risen, what am I saying. You were Julie Andrews in Saving Mr. Banks, you've been in Transformers Four, and you've also been with me on Bold TV, that's how I met you in New York City recently. And I'm so glad we're connecting on the podcast now.

Victoria Summer:
Me too, yes.

Bobbi Rebell:
And speaking of those roles, even though your big breakout hit was in that phenomenal role in Saving Mr Banks, your big money story actually has to do with really your biggest paycheck to date came from Transformers Four, and it was a big lesson to you, very eyeopening in something that is very relatable in what is becoming more and more of a gig economy, where we get sudden spikes of income. Tell us more.

Victoria Summer:
I actually remember when I booked that job, it was for me ... Even though I didn't say it in Mr Banks, it was the biggest job I'd ever booked, because it was such a big franchise, it was Michael Bay. I was going to be on set for three weeks with all these huge actors. And of course I knew, I was going to get residuals on that job. I was very excited about the passive income that I could make, not just the money that I got up front from being on set, but the passive income.

Victoria Summer:
At the time, I was living in a guesthouse, I'd not really been settled in LA that long, and it was just a big deal for me. So I thought, oh my God, wow, this big check upfront, three weeks of work which is a big deal for me at the time.

Victoria Summer:
So yeah, my lesson really was working out, how was I going to actually manage that money.

Bobbi Rebell:
Right. Well tell me a little bit more about how it works, because people may not understand how the payments work in Hollywood, you get paid very sporadically, really only when you work right. So most movies you just get a set paycheck and then they're done, at least that had been your experience up to this point.

Victoria Summer:
Yeah, but what happened to me on Transformers was they wanted me to be on set specifically for three weeks, so they bought me out for a three week period. And that was my deal, and then after that, once the movie aired, then I got residual income. So you get that four times a year. You get it quarterly.

Bobbi Rebell:
And one of are the challenges as an actress is that, you have income that is completely unpredictable. How do you manage that?

Victoria Summer:
Completely unpredictable, because for me, I'm doing auditions day in day out, and unfortunately, although I wish I did, I don't get paid for additions. And auditions take up a huge amount of my time. And when I'm working say on a movie like Transformers, you have a lot of money all at once and you tend to think, oh my God, I'm rich. What am I going to do with this money, oh my goodness.

Victoria Summer:
So for me, I've had to be careful and learn how to strategize in order to make sure that for the downsides and the down periods that I have with no work, that I have money set aside.

Bobbi Rebell:
One quick digression question. Did you buy anything, any little splurge Victoria?

Victoria Summer:
I bought a dog.

Bobbi Rebell:
You bought a dog. That's a necessity in life okay. That's not a [crosstalk 00:04:44] splurge. That's the best and I know you had your dog with you in New York, so that's not a splurge. That is always allowed. We advocate pet ownership here, they're the best.

Bobbi Rebell:
I want to get your lesson though because, it's important for our listeners to understand how ... You have ways that you manage having such sporadic income, and a lot of it is psychological. So share with us your lesson from that story and really from being an actress and learning to deal with what is it many cases 'cause you don't always get residuals. And even the residuals, you don't always know what they're going to be. These sort of spurts of unreliable income. Which again freelancers, the gig economy, we can all relate.

Victoria Summer:
Yeah, I mean with residuals you're absolutely right, you have no idea how much it's going to be. So whenever I get a check, it's always like oh, okay. But, you know, you can't predict that. So for me first and foremost is multiple streams of income, but also you know, when I do get these sort of big check windfalls, I make sure to put money aside. And honestly, from day to day, the best thing that works for me in my life particularly, is staying broke.

Victoria Summer:
I'm not saying poor, I'm saying convincing myself that I'm broke because I kind of ... For me as a person, I work very well on a highly necessity level. I tend to pull things in when I feel like I have to.

Victoria Summer:
So what I do is I have reserve bank accounts which are basically for future investments. So I move any money that's sitting around into these bank accounts to create passive income flows and also to use to set up other businesses. And so for me day to day, I do feel like I'm broke, and I work like I'm broke.

Bobbi Rebell:
And what kind of investments do you focus on?

Victoria Summer:
Well, for instance, I want to start my own skin care line, and I'm also wanting to start a vegan handbag line and that's important to me. Plus also my production company, I have to invest time in that. So that's really where my money goes is to start other businesses and to expand my brand really. I mean, honestly us as actors, we are personal brands, and all actors have to realize that, that you really are selling yourself.

Victoria Summer:
So for me it's work on promoting myself as a brand and also increasing the amount of income I can have from multiple streams.

Bobbi Rebell:
I think that's so smart and it's an interesting thing because, just like so many other businesses, the film business and the acting business has really evolved and is so much more driven by individuals and there's a lot of opportunity in that, but it also means that you have to be really smart about it. Yu have to be deliberate, as you are, and intentional, all those buzzwords.

Victoria Summer:
Yeah, you do. You have to be really smart and honestly, I focus on income. Every day I'm looking at okay, where's my money, where can I go and get money at this point, where is my next paycheck coming from, and how can I get more money from the different areas that I work in, and how can I expand? So I really do focus on income more than anything.

Bobbi Rebell:
Which is so smart, and that also brings us to the money tip that you brought because that really has to do with believing in yourself.

Victoria Summer:
Yes. Absolutely. To me, it's interesting. I didn't grow up in the kind of family where they were working in the theater or they were working on movies. My dad worked in the mail room of a bank, my mom worked in a school as a secretary, so I come from a prime middle class family, and I was always told, cut your cloth according to your means, never use credit cards, don't take any risks, that kind of thin.

Victoria Summer:
Honestly, I just had to get educated on the finance for myself. I think my money tip would be, don't take advice and don't listen to people close to you who really don't understand your business, or don't understand the actual area of money. They probably haven't had very much money, and they give you advice on money, but they really have given up on money themselves. So for me, just be careful of who you actually take advice from, and get educated.

Bobbi Rebell:
Yes, you have to own it yourself, which is what we're trying to do here at Financial grownup. So Victoria Summer, tell us where you can be found on social media, your website and what you're up to these days.

Victoria Summer:
Yes, you can find me on Instagram at Victoria Summer, on Twitter at Victoria Summer, and then on Facebook, Victoria Summer Entertainment. Then you can also, for more information go to my website victoriasummer.com.

Bobbi Rebell:
This has wonderful. Amazing advice, you are such a smart cookie my dear. I am so impressed with so many different things going on, and you're so smart with your money. I truly appreciate you joining us.

Victoria Summer:
Thank you very much for having me, it's great taking to you.

Bobbi Rebell:
So I think we all learned a lot about the acting business and how erratic the paychecks can be, so it's definitely part of the gig economy. So here is my take, financial grownup tip number one, Victoria talked about her multiple income streams and her business aspirations, which at first had me a little bit concerned about whether she was really focused enough on acting. But then when I really thought about what she was saying, it did start to make a lot of sense, because she was looking towards businesses that were complimentary to her skill set, and her primary career as a model and actress.

Bobbi Rebell:
So for example, she wants to have a skincare line. That makes sense. she's got a background in modeling and she's beautiful. She also wants a vegan handbag line, and she of course has a production company. As a model and actress, that can make sense. If she were an accountant who wanted to start a skincare line, maybe it makes less sense. Not that it couldn't be done, but you don't really have the same kind of synergies.

Bobbi Rebell:
Financial grownup tip number two, Victoria talks about being wary of advisors that aren't successful in your field. Basically she's talking about well meaning friends and family that don't really understand the nuances of the business that you're in. Because, they have ties to us, sometimes the people closest to us have complicated motivations. For example, and it's well meaning, but a parent may advise a child to be more cautious in their career because the parent may prioritize security over risk, when maybe it takes risk to be successful in some careers, many careers. But especially something like acting.

Bobbi Rebell:
Instead, maybe try to find a mentor that is in the business that you are in or aspire to be in, and then get advice from them. You'll get a more experienced vantage point, and maybe without the baggage of being a stakeholder in your life. Now we want to ask something of you. If you liked this show, help us get the word out. Tell a friend, write a review on Apple podcast, i Tunes or wherever you want, or just share this episode on social media. Be sure to tag me and then I can share it on that platform as well, and I love it by the way. A lot of you guys have been DMming me and, telling me how much you like different episodes. That's awesome.

Bobbi Rebell:
Victoria maybe a glamorous Hollywood actress but I found a lot of her story actually pretty relatable, and very relevant to a lot of the universal themes in our lives, and I hope you got a lot of value out of the conversation as well, and that we all got one step closer to being financial grownups.

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

Trade Bodge and her partners set out to build a business- that they knew was challenging before they even started. But they focused on funding, building a strong foundation, and learning from the past mistakes. 

 

In Trae’s money story you will learn:

-The market opportunity Trae and her partners saw when they created ThreeCustom.com

-The challenges the new business faced, including the difficulty of scaling up

-The creative way they funded the business

-Why Trae left the business

In Trae’s lesson you will learn:

-The challenge in finding the balance between waiting until a business is “ready” and moving forward while there is the most excitement

-Why she believes entrepreneurs should pay as much attention to how time their launch, as how they spend their funds

-Specific ways to research markets ahead of time, and during the early stages of a business launch including trade shows and how to get competitor insights. 

-How to use time to your advantage

In Trae’s money tip you will learn

-Where to find money, that is already yours, to fund your startup

-How they each saved $25,000 to put towards their business

-How to avoid feeling deprived when saving for a goal

In my take you will learn:

-The realities of start-up life

-What to do when you just aren’t that into your startup

-Tips to make sure you remain financially solvent even as an entrepreneur with a startup

 

Episode Links

Threecustom.com on Twitter: https://twitter.com/ThreeCustom

Traebodge.com

Follow Trae!

• Twitter https://twitter.com/truetrae

• Instagram https://www.instagram.com/traebodge/

• Facebook https://www.facebook.com/Truetrae/

---

Transcription

Trae Bodge:
We had the best intentions. We wanted to get out there and start this business. We found out that customization is very difficult to scale, and so any business who has attempted to do bespoke or customized products can attest to this. It's very, very difficult to grow a business like that.

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

Bobbi Rebell:
Hey, everyone. This is an episode about starting something really big, being all-in, and then finding out maybe it's not for you and having the strength to, well, exit gracefully. My guest and her partners were off to the races with what seemed like a genius idea: blend customer colors to replace makeup products that were no longer available. But, while the business is still chugging along, Trae Bodge left and is now a smart shopping expert that you can see all over the media and with her column in Women's Day. Here is Trae Bodge.

Bobbi Rebell:
Trae Bodge, smart shopping expert, you are a financial grownup. Welcome.

Trae Bodge:
Thanks so much for having me.

Bobbi Rebell:
Congratulations, by the way, are in order for your new Women's Day column.

Trae Bodge:
Oh, thank you so much. I'm really excited to be partnering with Women's Day as their financial expert. I'm covering everything from best buys month-to-month, how to maximize your tax return, how to save on your Amazon purchases, all sorts of things that savvy shoppers need to know.

Bobbi Rebell:
Awesome. We will definitely put a link to it in the show notes. I'm excited to hear your money story because, first of all, it has to do with the beauty business, it has to do with being entrepreneur, and it has to do with how much money do you really need to start a business? Do tell.

Trae Bodge:
Many years ago, two friends and I thought that we wanted to start a beauty business that specialized in the reproduction of discontinued colors. This is something that one of my partners and I had done for another brand that came on to the scene, blew up really quickly, and then fizzled out really quickly. Because, we found out, is that customization is very difficult to scale, and so any business who has attempted to do bespoke or customized products can attest to this. It's very, very difficult to grow a business like that.

Trae Bodge:
But we had the best intentions. We wanted to get out there and start this business and custom-blend products for women, and men, of course, and makeup artists. We started, for the first couple of years, creating our plan, saving our tax returns, saving our bonuses very-

Bobbi Rebell:
Saving the refunds from the tax returns.

Trae Bodge:
Yes, yes. Saving our tax refunds, and planning along the way. What this business was about was really about answering a problem that many women had, which was when you have a favorite product, like your favorite eye shadow or your favorite lipstick, and then that product is continued, we set out to reproduce those products as close as we could to the original color and texture. Then we kept that formulation on file so you can reorder it any time. Now, I [crosstalk 00:03:33]-

Bobbi Rebell:
I love that.

Trae Bodge:
It's such a helpful process for so many people because you finally find that thing that works, and then suddenly, you can't get it anymore. Forgive me, I do sometimes speak about it in the past tense because I'm no longer with the business. The business is still alive and well. You can find it at threecustom.com. My two partners are still running the business, but about four years ago, I decided that I needed to move on and do new things, which is where I landed as a smart shopping expert.

Bobbi Rebell:
Tell me, what is the lesson from that story? What is the takeaway?

Trae Bodge:
For me, and in terms of being a financial grownup, when we set out to start our business, there's this excitement and energy about getting the business out there right away. My recommendation to all potential entrepreneurs out there is I know you want to get out there and you want to get out there now; however, the time that it takes to save the money or to crowd-fund, for instance, if you're going to do Kickstarter or Indiegogo, or if you're going to look for venture capital or money from family and friends, the time that it takes to gather that money is time that works for you. You need the time to do your market research, to attend trade shows, to interview people and really flush out what you want this business to be because there are so many brands out there. How are you going to differentiate and set yourselves apart from the competition?

Trae Bodge:
For me, I would say to people, just take your time. Don't get frustrated by how long it takes to start a business, and use that time to your advantage.

Bobbi Rebell:
Give us a money tip, something tangible that people can literally do today.

Trae Bodge:
This is a tip that I think can apply to many things, whether it's going to be starting a business or paying off your student loans or any other debt is to take money that may feel like a windfall, and rather than spending it and going on a luxurious trip or buying a fancy handbag or even doing a renovation in your apartment, save that money. Save that money towards your business.

Trae Bodge:
What my partners and I did over the course of about two years is every tax refund we got, every bonus that we received, and then any extra money from if we inherited a little bit of money or anything extra like that, we did not take that money for ourselves. We put it in the bank. The three of us each saved over two years. We were in our early 20s at the time. We each saved $25,000. For the three of us, we were able to start our business with $75,000 after couple of years.

Trae Bodge:
That would be my money tip is that money that feels like something extra, instead of going to town with it and spending it, put it away towards your goal.

Bobbi Rebell:
But it's hard because you feel like it's found money.

Trae Bodge:
Yeah. It does. It is hard. It almost feels like you're on a diet. It's like you have that diet and you have the rules in front of you and everything you're supposed to eat and not eat, and you really, really, really want to eat that thing that you're not supposed to eat. To me, it's the similar feeling. You see that money, cross your hands, and you so want to go out and enjoy it and treat yourself because especially with, say, a bonus from work, it's like that's being given to you as a congratulations for work well done, and you want to enjoy that, but instead, put that away. You'll save money so much faster than you think you can.

Bobbi Rebell:
Trae Bodge, thank you so much. Wonderful story. Wonderful advice. We will all be checking out your column in Women's Day and visiting your website, which is traebodge.com, right?

Trae Bodge:
Yes, it's traebodge.com or truetrae.com, and definitely follow me on social. I'm truetrae or traebodge. I hope to see you all there as well.

Bobbi Rebell:
Wonderful. Thank you.

Trae Bodge:
Thank you.

Bobbi Rebell:
I loved Trae's story because it highlights the gray areas of startup life. Sometimes, a business is solid, but maybe not the future that you want. It's not a bad thing. It's just not your thing. Financial grownup tip number one: Leaving something that isn't right for you is like leaving a relationship with someone that you are just not that into. You could stay. It will probably be okay, but by staying with something that isn't for you, you're also not finding the business or career that is right for you. It's the missed opportunity cost. Don't get caught up in sticking something for fear people judging you or an idea that you are not a quitter. It's not about the exit. It's about what you find behind the door that you open as you leave.

Bobbi Rebell:
Financial grownup tip number two: As Trae says, whenever you start something new, don't rush in. Take the right amount of time to build yourself enough runway that you can be intentional when you do ramp up. You don't want to be scrambling for cash to fill an order. Be purposeful. Spend the time before you spend the money.

Bobbi Rebell:
Thank you all for your support. If you have not already, hit that subscribe button so you won't miss any episodes, and be in touch on Twitter @bobbirebell, Instagram @bobbirebell1, and of course, visit my website bobbirebell.com and sign up for our mailing list so we can keep you posted on what's going on at the show, and of course, spread the word. Tell a friend. Thank you also to Forbes for naming Financial Grownup as one of five podcasts that are getting it right. That was really cool. I hope you all enjoyed this episode with smart shopping expert Trae Bodge and that we all got one step closer to being financial grownups.

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

Retire Inspired’s Chris Hogan had a taste for expensive food at the grocery store- and it was was thinning out his bank account. But when he saw the true cost of his weekly habit he quickly hit the brakes and kept the change. 

 

In Chris’ money story you will learn

-How Chris Hogan had money wake up call

-Why his spending was spiraling out of control

-How he curbed his grocery spending bill from $1500 a month to close to nothing

-How routine and habit was hurting his wallet

-The specific strategy Chris and his wife used to get back on track with their spending

-The crazy meals the Hogans had while cleaning out their food stash!

In Chris’ lesson you will learn

-Chris’s strategy to avoid mixing up wants and needs

-The importance of being intentional with how you spend your money

-How to curb spending even when you think you can afford it

-Chris’ saying: interest you pay is a penalty but interest you earn is a reward

-How to get debt out of your life

In Chris’ money tip you will learn

-Why he believes cash is the best tool to control spending

-How electronic payments can confuse you and cause you to spend more than you intend

In my take you will learn:

-While eating out can be a budget killer, eating at home can be expensive as well

-Be deliberate at the grocery store- have a list and don’t buy those impulse items!

-Don’t shop hungry

-Use apps like Grocery IQ and Grocery pal to help stay on track in the store and to plan better

-Avoid routine spends. But on purpose, and with purpose!

EPISODE LINKS

Chris Hogan’s website https://www.chrishogan360.com/

Chris Hogan’s book Retire Inspired

Chris Hogan’s podcast Retire inspired https://www.chrishogan360.com/podcast/

Chris Hogan’s Retirement calculator https://www.chrishogan360.com/riq/

Follow Chris!

Instagram @ChrisHogan360

Twitter @ChrisHogan360

Facebook https://www.facebook.com/chrishogan360/

 

Grocery apps to check out:

Grocery IQ

Grocery Pal

 

Here are some stories about Grocery apps:

8 apps that will save you real Money on Food- from Money

http://time.com/money/5095326/8-apps-that-will-save-you-real-money-on-food/

10 Best apps to save money on groceries 2018 from Frugal for Less

https://www.frugalforless.com/apps-to-save-money-on-groceries/

Best Grocery List apps article from best products;

https://www.bestproducts.com/eats/food/g1505/grocery-shopping-list-apps/

6 best grocery shopping list apps for iphone and ipad 2018 from appsdose

http://www.appsdose.com/2015/04/6-best-grocery-shopping-list-apps-for-iphone-ipad.html

7 Grocery List apps for iPhone and Android for best shopping experience

https://mashtips.com/best-grocery-list-app-iphone-android/

---

Transcription

Chris Hogan:
You would have thought I was getting ready for Y2K. I had food in the cupboards, the freezers. I had food everywhere, but yet I was still every Saturday morning going to the grocery store.

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

Bobbi Rebell:
Hey, friends. We talk a lot these days in our society about being mindful. I'm working hard about bringing that into my life in a consistent and intentional way, but we also need to talk about mindlessness especially when it comes to our every day spending. I love the story that Retire Inspired author and podcast Chris Hogan is about to share with us because of its brilliant simplicity. We need to hear this stuff and know that even the people we look up to when it comes to money have not always been the role models for money mindfulness. He became aware, and once he saw the numbers, change came. Chris Hogan, you are a financial grownup. Welcome to the podcast.

Chris Hogan:
Thank you. It's a pleasure to be with you.

Bobbi Rebell:
It's an honor to have you. I am such a fan of all that you do for people from Retire Inspired, the book, to your podcast, to all of your good teachings and advice. It is truly a privilege, and we thank you.

Chris Hogan:
Thank you. It's a pleasure to be with you.

Bobbi Rebell:
You have brought with you a money story about spending and the grocery store, which is something that people don't always realize what's going on there. Do tell.

Chris Hogan:
Bobbi, I had an issue. I wasn't being a grownup at this time.

Bobbi Rebell:
Oh no.

Chris Hogan:
This is back before I had kids. I'm now the proud father of three boys, but no kids, double income household. We were just getting started getting serious about where we were financially and what we were doing. I sat down and was looking at bank statements. I wanted to add up, I wanted to know where was my money going? Where was our money heading? I started adding up the different categories, the eating out, but the grocery bill. This was one that was jumping out at me. I thought, this can't be correct. I went another month back, and yeah, $1,200 a month on groceries, a family of two.

Bobbi Rebell:
What were you buying?

Chris Hogan:
Anything and everything, meats, cheeses, anything and everything at any time. Again, we had the money. We weren't hurting anybody. I went back a third month and added it up. It was like $1,500. I was like, "Okay, let's go back to the $1,200," and it was just too much. Then I started realizing something. I was making the grocery store rich, instead of me building my own wealth. That became my financial wake up call, so to speak. Literally, looking at this, we got intentional. We got on a budget, and we set up a dollar amount that we were going to spend on groceries. That was the taking control. I'll never forget, we looked at all the food that I stockpiled. You would have thought I was getting ready for Y2K. I had food in the cupboards, the freezers. I had food everywhere, but yet I was still every Saturday morning going to the grocery store. I realized something. I was shopping out of habit, not out of necessity.

Bobbi Rebell:
It sounds like it was part of your routine. That was your weekend routine.

Chris Hogan:
That's exactly right. It was the routine. Regardless if we needed anything or not, I was going and buying things because I could. Stepping back and really looking at that, we put some parameters in place. We set up a dollar amount that we were going to spend on groceries, but before we did that we ate the food that we had. I'll never forget, that was a grownup moment for us, really starting to take a stand because the $1,200 to $1,500 that was normally being spent in that month, we didn't spend it that month. We actually sent it toward our debt.

Bobbi Rebell:
The entire amount?

Chris Hogan:
The entire amount. We had $100 for groceries. We built the milk, and eggs, and things like that. The other stuff, we ate the things that we had. Now I'm not going to lie to you, Bobbi, we had some interesting meals. It was interesting. Ramen noodles with corn. We did some stuff, but we made a stand at that point financially that we were going to be in charge, and our habits weren't going to take charge of us.

Bobbi Rebell:
I want to ask you something. Earlier you said you could afford it, but then you said you were putting that money towards debt. You could afford it in terms of cash flow, but yet maybe you should not have been spending that, clearly, because you could have put it towards debt, so your perception of afford has changed.

Chris Hogan:
Absolutely, it did, because my math changed. Looking at debt, it was one of those things that at that time we rationalized it, because why? Everybody had credit card debt, everybody had a car payment. As you start to look at it, and you start to run the numbers, you understand interest that you pay is a penalty. Interest that you earn is a reward. When you start to learn real math, as I call it, you start to see debt for what it is. It's a threat, and it's a thief. You want to get it out of your life.

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

Chris Hogan:
I'd say, "Be intentional." It's the lesson of wants versus needs, and we can get confused. We can want something so bad that we feel like we need it, but I want us to be clear. Set spending limits for yourself. Understand what you normally spend, but let's put some dollar amounts on there of hey, here's what we're going to spend on groceries. This is what we're going to spend eating out. Now you start to construct that budget. It puts you in control, and then you don't have to feel regret.

Bobbi Rebell:
Let's move on to your money tip because this is one, I know what you're going to say. It's so brilliantly simple.

Chris Hogan:
Yes.

Bobbi Rebell:
What is your money tip for everyone that they can use right away?

Chris Hogan:
Right away, my money tip is this. Use cash. I know it sounds crazy, but I'm telling you, when you have cash, and you go into the grocery store with that dollar amount, it helps you stay aware, and it helps you stay in control. Now when they say the total amount is $85, and you count out $85 you are feeling the spending of the money as you're counting out those bills as opposed to with a debit card, the swipe, we don't feel the pain there. It's just this swipe. Now there's a chip, and all these things going on. It doesn't become spending until you balance your checking account. Use cash in those areas that you struggle in, whether it's eating out. Get an envelope, write eating out on it. Put a dollar amount in there each and every pay period. When the money is gone, you're done. It's this great reminder, and it keeps us aware of where we stand financially.

Bobbi Rebell:
All right, Chris. Thank you so much. I want to hear more quickly about what is going on with you, and what you are working on at Dave Ramsey Solutions and at Retire Inspired. Do tell.

Chris Hogan:
Yes. We launched Retire Inspired in 2016. I'm working on my second book that we're going to have ready and available for the public in 2019, but I'm traveling all over the country doing smart money events where we walk people through the baby steps. I'm also doing corporate events where I'm talking about money and leadership. They can go check me out at ChrisHogan360.com, look at the events page, and they can find out where I'm at and where I'm going to be.

Bobbi Rebell:
One my favorite things about what you do in your books, and I hope you have this in your next book, is that you really as you travel you get so many unique stories that are relatable, or sometimes hopefully they won't be relatable because some of them can be pretty scary, but I look forward to hearing more of those stories. In terms of social media, always Chris Hogan 360?

Chris Hogan:
Always, everything, on Facebook as well as Twitter, Instagram. @chrishogan360 is where I'm at.

Bobbi Rebell:
Okay, there was a lot there that I could relate to and have definitely been guilty of. This is a case where I am right in it with you guys. Financial Grownup Tip Number 1: We think of eating out in restaurants as a big expense that has to be watched, and it does, but you can also buy quite expensive items at the grocery store, and have some very pricey home cooked meals, or even worse as in the case of the Hogan household, some expensive food just sitting in the pantry and the freezer. You have to watch that bill. It seems so simple, but make a list when you go shopping and stick to it.

Bobbi Rebell:
You've heard this before, but I'm going to remind you. Don't shop hungry. It happens, I do it. I always buy more than I should and fall for the impulse items. I'm working on it, and you should too. There are a ton of apps that can help you to be more organized and save money when you shop for groceries. I'm going to put links to a few articles with suggestions in the show notes, but a couple to check out just here, Grocery IQ and Grocery Pal. You make your list, and the app will sort out and show you discounts including those for other brands of the same item. While it may seem like it's okay if you can afford it to spend that extra money at the grocery store, it's not always as okay as it seems. For example, in the Hogan's case, they realized that they could be using that money to pay down debt. They thought that they could afford it, but maybe not so much. If you don't have debt, wouldn't it be more fun to do something else with the money, or more smarter, to invest the money? Savings is a good thing.

Bobbi Rebell:
Financial Grownup Tip Number 2: Ditch the bad money habits that are just there because they're routine. Chris Hogan was shopping at the grocery every Saturday because it was Saturday. He did not need the food. In fact, he probably didn't have room for it at a certain point. This comes back to things like lattes. If you want one because you want one, and you can afford it, that's fine, but if you're just buying one every morning because that's your routine, think about it. Maybe you want to do something else some days.

Bobbi Rebell:
I want to thank all of you for your ratings and reviews on iTunes. It is making a huge difference in helping others discover our new podcast. I also want to thank Forbes for naming Financial Grownup one of the five podcasts that is getting it right. It was amazing to be getting that kind of recognition less than two months after we started this project. Keep spreading the word, friends, and keep in touch. I am on Twitter, @bobbirebell and on Instagram at bobbirebell1, on Facebook. Check me out under Bobbi Rebell and learn more about the show at, you're getting the theme here, bobbirebell.com/financialgrownuppodcast.

Bobbi Rebell:
Chris Hogan is pretty much as grown up as it gets. I loved his episode, and I hope you did too, and that it got us all one step closer to being financial grownups. Financial Grownup is edited and produced by Steve Stewart and is a BRK Media production.

Growing up with dad Tony Robbins taught Josh Robbins the value of the intentional and unapologetic splurge.  Josh Robbins shares the no-regrets story of his 11-year old self blowing a huge sum of money on one of the most memorable days of his life. 

In Josh’s money story you will learn:

-The lessons Josh learned being behind the scenes at his dad, Tony Robbins events

-How at age 11 Josh started his own business 

-Josh’s sales strategy

-The unexpected way Josh spent his profits

In Josh’s lesson you will learn:

-Josh’s philosophy on material goods vs. experiences

-His thoughts on whether he should have invested his profits in the market

-Josh’s take on side-hustles

-Josh’s advice on how to find more time to accomplish your goals

-Josh’s warning about social media and Netflix

In Josh’s Money Tip you will learn:

-How to find out what fees your are paying in your 401(k)

-How the law concerning 401(k) fee disclosure has changed

-What level of fees is considered too high

-What to do if your plan is costing you too much

-The financial consequences of even a 1 percent increase in fees

In my take you will learn:

-Why I at first disagreed with Josh’s financial decision, and how he changed my perspective

-The value of shared experiences and the memories from them 

-The financial impact of how you choose to spend you time, not just your money

-Strategies to invest in yourself

Episode links:

To check what you are paying in your 40 (k) go to showmethefees.com

To learn more about Josh Robbins and America’s Best 401 (k)

AB401k.com

Tony Robbins donates all of his book proceeds to Feeding America. 

To learn more about Tony Robbins Feeding America: http://www.feedingamerica.org/

Follow Josh Jenkins-Robbins

Twitter @jenkinsrobbins

Facebook: Josh Jenkins-Robbins

 

Growing up with dad Tony Robbins taught Josh Robbins the value of the intentional and unapologetic splurge. Josh Robbins shares the no-regrets story of his 11-year old self blowing a huge sum of money on one of the most memorable days of his life. In this Financial Grownup podcast episode you'll learn how even a 1% increase in fees can have consequences and the ways you can invest in yourself. #InvestInYourself #Money

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Transcription

Josh Robbins:
I would love to say I was really smart, and I saved it, and I stuck it in the market, and today, it's worth a million bucks. But I actually took it home, got about 10 of my friends, rounded them up, and we all went to the local fair that happened to be in town during that time in the summer. We had the most fun time ever. We spent all thousand dollars, walked in there with nothing.

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

Bobbi Rebell:
Hey friends. Today's story is about living your life, not your bank account. I'm not talking about being irresponsible like blowing your child's college fund or not saving for retirement. I'm just saying it is okay to give yourself permission to enjoy what you earned. Create memories with your friends and family. Josh Robbins is the Chief Strategy Officer at America's Best 401K, which is a major disruptor in the retirement business, one that I actually talk about in my book, How to Be a Financial Grownup. Josh is also the proud son of Tony Robbins, whom I have had the pleasure of interviewing a number of times and who contributed both a story and the foreword to my book as well.

Bobbi Rebell:
Josh, of course, as you can imagine, had an unconventional childhood to say the least, and as an adult, he is truly living by his father's life philosophies. This was a great conversation for me, because it reminded me that we have to live our lives and create great experiences with those we love. I hope you enjoy it as much as I did. Here is Josh Robbins. Josh Robbins, you are at Financial Grownup. Welcome to the podcast.

Josh Robbins:
It's great to be here. Thanks for having me.

Bobbi Rebell:
I can't believe it's been almost a year since we met. We met at the Nasdaq. Your family was being honored because of your dad's charity, Feeding America, and how many millions of meals has that been?

Josh Robbins:
Gosh. You know what? It's already ... He donated the profits from both of his financial books Money: Master the Game and Unshakable. And so, now, it's over 300 million meals.

Bobbi Rebell:
Oh my gosh.

Josh Robbins:
And now, they're on track to do a hundred million meals a year for the next seven years. So they'll have done a billion meals just through the profits and through also, just through matching. So, at Feeding America, if anybody's listening, wants to make a donation, Tony will match it. I think it's feedingamerica.com/tonyrobbins. Really simple. So he's committed to making a difference.

Bobbi Rebell:
It's interesting because you grew up in a very interesting environment, where you would be backstage at your father's events. Tell me your money story. You were a little entrepreneur, at what age? 11?

Josh Robbins:
Yeah. I was always trying to figure out how to hustle and run around and make money. And so, Tony has these big seminars. And back then, they'd be like these marathon events like 10 days long. There was one, that I remember in particular, where there's about 5,000 people there. So every lunch and dinner, they'd go out to these big giant tents, these meal tents, where people were sitting down eating, and I pounced on that opportunity to work on my sales skills.

Bobbi Rebell:
What did you do, Josh?

Josh Robbins:
I ended up buying these key chains that were really inexpensive.

Bobbi Rebell:
Do you remember what your cost was?

Josh Robbins:
I think my cost was a buck, and I was selling them for like three to four.

Bobbi Rebell:
Nice. Big profit.

Josh Robbins:
Yeah. So, big profit margin, and everybody loved it, because I'd come to the table. I think everybody just loved the idea that an 11-year-old was kind of selling [crosstalk 00:03:29]-

Bobbi Rebell:
You were probably milking that cuteness, you know?

Josh Robbins:
Yeah, well, it's like girl scout cookies, like what? Are you going to say no? So, anyway, it was fun. I ended up raking in about a thousand bucks over the course of this event.

Bobbi Rebell:
Oh my gosh. Wait, so, $1,000, like, what's the math on that? $3 each. Oh my gosh. You were selling a lot of key chains.

Josh Robbins:
A lot of key chains. I think everybody in that event had those key chains at the end, and I'm sure they all felt super obligated to buy one too. So, it was great.

Bobbi Rebell:
But it was a high quality key chain, I'm sure.

Josh Robbins:
Oh it was incredible. I'm sure they're still around today.

Bobbi Rebell:
All right, so you walk away with a thousand bucks. So that, first of all, that's a great, great story because that's your entrepreneurial venture and you're learning. But then what happened to the money? You go home, then what?

Josh Robbins:
I would love to say I was really smart, and I saved it, and I stuck it in the market, and today, it's worth a million bucks. But I actually took it home, got about 10 of my friends, rounded them up, and we all went to the local fair that happened to be in town during that time in the summer, and we had the most fun time ever. We spent all thousand dollars, walked in there with nothing.

Bobbi Rebell:
In one day?

Josh Robbins:
In one day, played every game, wrote every ride, and just did every possible thing you could want to do at the fair, and my friends were ecstatic, and I was ecstatic. It was beautiful because I learned a really valuable lesson, in the sense that, money is just a tool, right?

Bobbi Rebell:
Right.

Josh Robbins:
And money can be used to create incredible experiences. Stuff is fun for a little while, but experiences are really what life's about. And so, that was such a beautiful lesson for me. Obviously, saving, you know, I learned how to do ... learned that later, but that was a really, really beautiful lesson for me to have.

Bobbi Rebell:
Yeah, so, what is the takeaway then for our listeners? And by the way, where were the parents when this was going on?

Josh Robbins:
Great question. It's like a little bit of the Lord of the Flies stuff going on there.

Bobbi Rebell:
I know. I mean, I don't know. I feel like this is a different era that there are all these 11-year olds running around, spending hundreds and hundreds of dollars each at this day. It's interesting, because millennials now, at least as a stereotype, are into experiences. So is that the lesson for our listeners? There's a line though, there's a fine line, because as you said, if you had invested that $1,000, we could be having a different discussion.

Josh Robbins:
You're absolutely right. Yeah, I think look, for me, I think the takeaway is twofold. One, we're living in the day and age of the side hustle. You know, as Gary Vee would say, I think everybody needs to figure out how to create that additional money that they're going to be able to sock away. So, if they can have it from their job, great. But if they just say, "Hey, you know what? I can't make ends meet," there's always time. What's the average amount of time people watch TV these days? It's crazy.

Bobbi Rebell:
And not to mention social media.

Josh Robbins:
Oh social media. I mean, everything's time drain. So when people say they have no time, I just don't buy it. So, to me, I think creating that opportunity for yourself, to have financial freedom is incredible. So that's got to become a priority, because they can't afford it, right? But you got to pay yourself first. So in other words, let's just say tomorrow, the government raise taxes 10%. We'd all whine and moan, but we'd all end up paying, right?

Bobbi Rebell:
Mm-hmm (affirmative).

Josh Robbins:
And you got to think about your future the same way. You got to pay your future self in the same way. So, you know, I'm going to tax my current self 10% no matter what or more, but I'm going to do it for my future self. And yeah, it might create some cutbacks in the short term, but if you don't have the cutbacks, go out and get a side hustle. Make it happen.

Bobbi Rebell:
I know one thing you love to focus on, and it's something that we all need to focus on more, is fees.

Josh Robbins:
Yeah, I think one of the most interesting things is ... Tony went out and interviewed 52 top financial minds in the world, and it kept coming back to fees as one of the main themes, if you will. What I mean by that is most people have no idea. In fact, I just read a study recently that said 96% of people know exactly how much they spend for their Netflix account, but 71% of Americans think they pay no 401k fees whatsoever. That obviously is a financial literacy challenge, right? And by the way, that's not unusual. So if you don't know how much you paying in 401k fees, it's purposeful, right? It's opaque at best.

Bobbi Rebell:
Yes.

Josh Robbins:
For the first 30 years of the 401k's existence — it started in 1983 — up until 2012, they didn't have to tell you how much they were charging, how much they were extracting from your accounts. It's crazy. There's no disclosure.

Bobbi Rebell:
Right, but now they do. So, how specifically can people find out what the fees are? And how do you know if it's the right amount? Because it's okay to pay a little bit. I mean, people that are running it should get paid, but how do you find it out, and how do you know if you are paying too much?

Josh Robbins:
Great question. So now, they issue this thing called fee disclosures. So the challenge is they're very long and kind of opaque. But you as a participant, if you're on a 401k plan, you should request a copy of your fee disclosure, from whoever your current provider is, and they have to provide it to you. And then I'd start to do a little bit of archeology and take a look at that and uncover those fees. Now, we do that as a free service, which we can talk about later. But the point here is that you've got to uncover the fees, and I would say that 0.75% or less as the all-in fee, okay?

Josh Robbins:
I'm talking about the cost of the funds, the cost of the administration, the cost of what they call record-keeping, all of those should be 0.75% or less, and unfortunately, they're more like one and a half or two and a half particularly for small business. Bobbi, you know this. You know the impact of these fees. People say, "Oh it's only 1% or a small percent." Let me give you an example. If you have two people, two neighbors, both contributing to the 401k the same amount, both get the exact same returns in the market. Okay, and both take out the exact same amount at retirement, all things being equal.

Josh Robbins:
If one has 1% in fees while the other has 2% in fees, the person with 2% in annual fees will run out of money 10 years sooner than the person with 1% fees.

Bobbi Rebell:
Oh my gosh.

Josh Robbins:
10 years. A full decade, they're going to run out of money.

Bobbi Rebell:
And we're living longer, which is a good thing, but we need our money that we worked so hard for. So you are the Chief Strategy Officer at America's Best 401k, which I also by the way talk about in my book, How to Be a Financial Grownup, and how you are disrupting the industry. So tell us specifically what you offer and how people could use that to get this information and maybe make the right decision for them.

Josh Robbins:
We just say, "Hey, look, we're going to eliminate all the middlemen, all the brokers, all the unnecessary middlemen. We're going to offer low-cost index funds only, and then we're going to add a very one transparent advisory fee." So our typical plan is like 0.6% or less, all-in for everything. So, that's what we do, and we have a website for people that don't want to go through that whole financial archeology on their own. Whether you're a business owner, or you're an employee, or you're an employee that wants the business owner to pay attention, you can go to showmethefees.com.

Josh Robbins:
Showmethefees.com is a fee checker, where we allow ... We kind of give you like a ... I'm going to call it an initial estimate, kind of like Zillow does its estimate. So we're going to do the same thing. We're going to give you an estimate in the ballpark. And then if you want to take it one step further, all you have to do is just send us that fee disclosure that you can just get from, you know, call the toll-free number of your current provider and just ask them to send it to you and then upload it to us, and we'll help you uncover those fees. What you have to understand is if you're an employee, your employer's on the hook with the Department of Labor with legal liability to make sure that the plan is set up for the sole benefit of the employee.

Josh Robbins:
So they need to look at fee savings and cost savings opportunities. Employers want to know this stuff. And you as the employee can look like the hero, if you bring them a great opportunity to save a significant amount of money, because with just like the 1% and 2% example, when you compound it out over time, these 401ks can be firing on all cylinders, and right now, most of them are kind of limping along in mud. So, there's a lot of work to be done out there. We've got a long road to climb.

Bobbi Rebell:
All right. Well good stuff, Josh Robbins. Where could people find you if they want to follow you? Social media, all that stuff.

Josh Robbins:
Yeah, I'm at jenkinsrobbins.com. J-E-N-K-I-N-S-R-O-B-B-I-N-S. And then our company is at AB401k. A-B-4-0-1-K.

Bobbi Rebell:
Awesome. Thank you so much for joining us.

Josh Robbins:
Yeah, thanks for having me. I appreciate it.

Bobbi Rebell:
Hey friends. Here's my take on the story that Josh shared with us. Financial Grownup tip number one. Josh gave me a great reminder. A responsible splurge can be a good thing. So when he first told me that he spent all of his earnings on one fantastic day with his friends, at first, I thought the lesson, from his perspective, would be one of regret, wishing he had saved and invested the money. But in fact, decades later, he still has such incredible memories of that day. He really doesn't have any regrets, so I realized my gut was wrong. Now, if you're an adult, you have financial responsibilities. You can't necessarily go blow money from your kid's college fund on a great day with your buddies.

Bobbi Rebell:
But let's put this in context. It was one day's earnings, and he was a kid. He was 11. No one was depending on him. Here it is decades later. The memories of the shared experiences are priceless. Financial Grownup tip number two. Josh talks about making time for opportunity. He has some great reminders to create time for yourself and set yourself up for financial freedom. He points out that he and his dad, Tony Robbins, often hear people say they just don't have the time. Well to Josh's point, maybe watch a little less TV. Spend less time on social media. Find the time to invest in yourself, if that's a priority.

Bobbi Rebell:
Thanks to everyone for your support. If you have not already, please subscribe. If you have a free moment, reviews, totally appreciated. I know you guys are super busy. That's one of the reasons I keep the shows short. Be in touch. I am on Twitter, @bobbirebell and on instagram, @bobbirebell1. And for sneak peeks into upcoming episodes and some behind-the-scenes info about the podcast and my guests, get my newsletter. Just sign up at bobbirebell.com. I hope you enjoyed Josh Robbins' story and that we all got a little bit closer to being financial grownups.

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