In this episode Levo League’s Tiffany Dufu, author of "Drop the Ball, Achieving More by Doing Less” shares the story of how she overcame her hesitation to ask for what she was worth after she was no longer working for a non- profit. 

In her money story you will learn:

-How Tiffany realized her own value as a speaker

-How she benefitted from her husband’s intervention

-How she launched her speaking business and diversified her income stream

-What a portfolio career is

 

In her lesson you will learn:

-The tools you need to know your value and monetize it

-Why an ecosystem of support is essential

-How to leverage the people around you

 

In Tiffany’s personal money tip you will learn:

-How she was able to take a key chore off her to-do list

-What she realized about delegation

-The system she and her husband have set up to manage household task

 

In my take you will learn:

-How to approach the time vs. money value equation

-Different ways to value your time

 

Links from the episode

 

Tiffany’s website

Tiffany’s Book “Drop the Ball, Achieving More by Doing Less”

Tiffany’s Twitter

Tiffany’s Instagram 

Tiffany’s Facebook

Tiffanys YouTube 

Levo League

 

Amazon

Plated

Blue Apron

In this Financial Grownup episode, Levo League’s Tiffany Dufu, author of "Drop the Ball, Achieving More by Doing Less” shares the story of how she overcame her hesitation to ask for what she was worth and gives you the tools you need to know your value. #InvestInYourself #Money

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Transcription

Tiffany Dufu:
The intervention there was I had someone in my life who I was sharing this story with who said, "No, no, no, that's about you and that's worth something."

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, well this episode is dropping on a very special day for our guest. One year ago today, Tiffany Dufu's book, Drop the Ball, Achieving More by Doing Less, was released. She is also, by the way, the Chief Leadership Officer at Levo. The book has been a massive hit and, frankly, changed a lot of people's lives, including my own because it gives us permission to focus on the things that matter the most to us and to be okay with just letting somethings go or delegating it, allowing yourself to prioritize and not apologize.

Bobbi Rebell:
Tiffany's money story will inspire you, but also make sure to stay tuned for the money tip that she shares later on. It's going to make you happy. It's going to make you happy for her, and it's going to make you happy because if you're not doing it already, you're going to do this. Here is Tiffany Dufu.

Bobbi Rebell:
Tiffany Dufu, you are a financial grownup. Welcome to the podcast.

Tiffany Dufu:
Thank you so much for having me.

Bobbi Rebell:
And you have a lot going on in 2018 with your job, your book, Drop the Ball, which is one of my favorites. I re-read it again this weekend because I gave away my original copy. I actually bought it again. I highly recommend everybody buy the book, Drop the Ball, and maybe buy it twice and gift one to someone else. Tiffany, give us an update on you and what you're up to.

Tiffany Dufu:
Well, my life's work is advancing women and girls, so I'm always up to moving forward the causes that I really care about. The one year anniversary of Drop the Ball is coming up on Valentine's Day, so I've got a lot of promotion in relationship to that. Of course, I really value Levo which is the fastest growing network for millennial women and I'm always moving forward that platform, and hope that myself and many more people will support women candidates in 2018.

Bobbi Rebell:
You are also a very prominent public speaker, something that you sort of fell into accidentally and with a little help from your husband. Tell us about your financial grownup moment.

Tiffany Dufu:
Oh sure. You know, we all have these moments where we realize our own value and mine happened seven years ago. I was running a national women's leadership organization called the White House Project, and as I was closing that organization down, I needed to reach out to all of the individuals who had booked me to speak at their events. So, as president of the organization, I would do a lot of public speaking and I would negotiate with the organizer of the event for them to give a donation to the White House Project. I was also a non-profit fundraiser for many years, so I never had a problem asking for money for organizations that were doing really great work and counted the White House Project among them.

Tiffany Dufu:
But, when I called to let everyone know, "Look I won't be able to speak at your event, I'm closing down the White House Project, I will no longer be president of the White House Project," they were all like, "Silly you, of course you're coming to speak at our event. Is everything that you know about women in leadership out of your head? No, you still know that."

Bobbi Rebell:
Right, they wanted you.

Tiffany Dufu:
That's right, and your name is on our marketing materials and you're going to show up. It was my husband who said, "Tiffany, you've just launched a business. You've just launched a public speaking practice, and the money that you negotiated for the donation, that is now resources that you can use. That has now become your speaking fee." It was a really important moment for me because if you had of told me you could start a public speaking practice and you could charge thousands of dollars for people to hear you stand on a stage as a business model, I would have said, "Oh that's ridiculous." Like no one would pay that amount of money to see me come and speak.

Bobbi Rebell:
But they were.

Tiffany Dufu:
Because, yes-

Bobbi Rebell:
They were already paying the money, it was just going to your non-profit.

Tiffany Dufu:
That's it. But you see the psychology of women, even one that supposed to be an expert on women in leadership, I thought, well that's easy, they're giving a donation to the cause, but that really was an important moment for me.

Bobbi Rebell:
And that really has turned into a big part of your many income streams. You have a diversified income stream now because you obviously have your primary job at Levo League, but you also have your book, and you have your speaking.

Tiffany Dufu:
That's it. I have what I would call a portfolio career.

Bobbi Rebell:
Which is definitely a wave of the future. So, what is your lesson for our listeners, many of whom are millennial women?

Tiffany Dufu:
I think it's know your value. Really understand what you have, whether it's gifts, talents, skills, abilities that the market wants and to monetize that.

Bobbi Rebell:
But how do you do that? Even you were already ... people were paying the money to hear you speak and yet, you didn't really equate that with you as an individual. It was directed as it was okay because it was going to an organization that you believed in; but yet, until that moment with that conversation with your husband, you weren't seeing that as money for you.

Tiffany Dufu:
That's right.

Bobbi Rebell:
What is the lesson for how people can kind of make that transition both mentally in their mind and also in actuality?

Tiffany Dufu:
Well I think the important part of that story is having an ecosystem of support. Right? So, the intervention there was I had someone in my life who I was sharing this story with who said, "No, no, no. That's about you and that's worth something." And quite frankly, in many different areas of my life, the people who have prompted me to shift my own consciousness around my value have been the people who are closest to me who really have my best interest at heart. So, at the end of the day, making sure that you've got an ecosystem of support, that you've got a crew, that you've got people who can say no, no, wait. What you're doing is actually really valuable. I think it's important because you believe them.

Bobbi Rebell:
Absolutely. Everything is about your network, your support system, and having that ecosystem in place. Before I let you go Ms. Tiffany Dufu, I want to get a money tip from you because I know you are so on the ball, even though you like to drop the ball, you're on the ball when it comes to money. Give us a personal money tip, something that you and your family used that our listeners can put to work right away.

Tiffany Dufu:
Well, my time is my money, so anything that saves me a tremendous amount of time, for me is a money tip. One of the stories that I write about in Drop the Ball was me picking up my dry cleaning for several years before delegating that chore to my husband. The first time it was his turn to do it, he had it delivered for free.

Bobbi Rebell:
Had you ever had it delivered?

Tiffany Dufu:
No. I didn't even know that my dry cleaners delivered. I didn't even know.

Bobbi Rebell:
That's crazy. So, the miracle there is you both dropped the ball on that-

Tiffany Dufu:
That's right.

Bobbi Rebell:
... and it just got done. So, it didn't fall into anyone's column because ... For those of you who haven't read Tiffany's book obsessively like I have, she and her husband have a whole system that they setup with different columns of who does what. The most critical column is the column that basically has to do with nobody, which is the best thing.

Tiffany Dufu:
That's it. That's it.

Bobbi Rebell:
And if you can put things in that, you know, they just disappear magically, that is the best way to get things done. So, thank you so much Ms. Tiffany. This was wonderful.

Tiffany Dufu:
Thank you.

Bobbi Rebell:
Okay friends, here is my take on all of that. I was a bit surprised first of all that Tiffany did not realize that she could get the dry cleaning delivered for free. That is something that we can all delete from our to-do list, so let's all just drop the ball there. It's also a good reminder that we should all take a step back and think about how we spend not just our money, but also our time.

Bobbi Rebell:
Financial Grownup tip number one: Figure out how you value time. What is your time worth financially? It could be a formula based on what you're paid at your job. It can be what you charge clients. It can be what it cost you in things like childcare if you're a parent, to watch your kids when you're going to go be doing something else. Or, it can just be a gut feeling based on the fact that time is always limited, and in theory, at least, we can always earn more money. So time is always in limited supply.

Bobbi Rebell:
Financial Grownup tip number two: Outsource things where the math does not work in alignment with your values and priorities. It may be something that is worth a delivery fee. Maybe a yearly fee somewhere like Amazon, or monthly fees on grocery delivery services like Fresh Direct, or meal services like Plated or Blue Apron, that will free up your time for something that delivers more value for your time. The reverse is also true. Sticking with the food example, if you're focused on saving money and you have the time, it may make sense to shop for groceries yourself in person and do all the cooking yourself rather than have a preset meal. But, make that calculation and definitely make sure that you are using things like delivery services that are already built into the price as Tiffany discovered with her dry cleaning.

Bobbi Rebell:
Okay, thank you all so much for listening to this latest edition of Financial Grownup, the feed that continues to be wonderful. I am so excited to keep bringing you guys inspiring stories. Please continue to rate and review the podcast on iTunes or anywhere you listen so more people can discover us. Anything you can do to support the podcast by telling friends about it is truly appreciated. I hope everyone enjoyed the show and that we all got one step closer to being financial grownups.

Bobbi Rebell:
Financial Grownup with Bobbi Rebell is a BRK Media Production.

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

In Jean’s money story you will learn

• the impact her divorce had on her financial strategy

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

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

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

• how focusing on her money created emotional and psychological security

• her  post-divorce college savings plan pivot

 

In Jean’s lesson you will learn:

• how to evaluate your financial needs at different life stages

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

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

• why and how she shares information about pricing

 

In her money tip you will learn:

• the power of automatic savings

• mental accounting and why it works for her

• using different pools of money for different goals

• guilt free spending

 

In my take you will learn:

• my advice on knowing your worth in the market

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

• Why you must choose clients that value your work

• How to deal with clients that lowball you on price

• How to grow low paying clients into higher paying ones

Links related to this episode

The Today Show

Jean Chatzky

Her Money with Jean Chatzky

Stacy Tisdale

This Financial Grownup episode with Her Money podcast host and Today Show financial editor, Jean Chatzky, is about getting the most value for your work. We also discuss how to assess your savings goals and how to know what to charge clients for your professional services or products. #SavingsPlan #ChargeYourWorth #Author

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Transcription

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

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

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

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

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

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

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

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

Jean Chatzky:
Sure.

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

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

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

Bobbi Rebell:
And how old were you?

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

Bobbi Rebell:
Which you have now.

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

Jean Chatzky:
And so it took the form of doing everything from buying a smaller house than I could really afford, and just shoving more money every single month into savings, to starting new college accounts for my kids, because the plan that my ex-husband and I had about how we were going to pay off the mortgage and then use that money to pay for college had gone out the window, to really taking a closer look at all of the bills every single month, and seeing what was not necessary.

Bobbi Rebell:
And you weren't doing that before?

Jean Chatzky:
I was doing it, but I wasn't doing it in such a diligent and type A way. I was saving up to the guidelines that I give people, but I just wanted to do more. That's what made me feel safe, was not shoes in the closet, it was just money in the bank.

Jean Chatzky:
So my lesson is a little bit different from that story, but no matter what stage you're at in life, we all need help. And I think asking for help, which I did during that period in my life, from financial advisors, from lawyers, from estate planners, from friends who had been through it before me. We've got to ask for help to figure out how to chart the right course at the right time.

Jean Chatzky:
And I thought about this lesson because I had lunch yesterday with Stacey Tisdale, who is another financial expert/journalist/colleague, who you should absolutely have on this show.

Bobbi Rebell:
Absolutely.

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

Bobbi Rebell:
Give me a money tip, something that you are using yourself, with your family, that is really making a difference, that people can implement right now.

Jean Chatzky:
Going back to what I told you about saving like a crazy person around the time of my divorce, I save automatically for every goal, even the small ones.

Bobbi Rebell:
Do you separate different accounts you mean?

Jean Chatzky:
I separate. I am a huge believer in mental accounting for which Richard Thaler just won a Nobel prize. I find when you have different pools of money for different things, it's easier to reach your goals. I've got a big trip coming up, I've got that money isolated. I'm saving ahead of time, and it means I will not be looking at big credit card bills that I don't have money to pay off, after that trip happens.

Bobbi Rebell:
And it also takes away the guilt of feeling like maybe I shouldn't treat myself to this trip, because the money is there for that.

Jean Chatzky:
Absolutely. And it doesn't matter if it's a trip, or a handbag, or a spa weekend, or college. Just knowing this is the job that this money has been set aside to do is really, really helpful.

Bobbi Rebell:
Great advice, thank you Jean Chatzky.

Jean Chatzky:
Sure.

Bobbi Rebell:
I love that advice about pricing. Information is power when it comes to pricing your services, especially as we seem to move more and more into the gig economy, not to mention side hustles.

Bobbi Rebell:
So I'm going to just expand on Jean's great advice about knowing what you're worth in the market and getting it. Financial grownup tip number one, get social. Think of others in your field not as the competition, but as your teammates, your allies. Spend time with your people. This can be in person, like Jean does, or even online. There are countless groups these days, especially for example on Facebook, where you can ask people specifically what do they charge?

Bobbi Rebell:
They may not say it publicly in the App itself, but a lot of people are willing to DM you with some actual numbers and helpful tips about what you can and should be charging.

Bobbi Rebell:
Financial grownup tip number two, do not work with clients that don't value your work, aka don't pay you enough. Good clients want you to stay in business, that can't happen if you are in a race to the bottom with price. If someone does not want to pay the right price to work with you, odds are this is not the last argument you're going to have with them. If they truly have a budget that is still too small, see if you can limit the scope of what you're doing. If you believe they're going to grow into a client that can eventually afford you, make a judgment call. But make it clear that you are working below rate, and that the numbers are unsustainable and need to grow when their business grows.

Bobbi Rebell:
If it really can't work, consider referring them out to someone who does work with people with smaller budgets. They will appreciate it.

Bobbi Rebell:
Thank you all for listening to this episode of Financial Grownup. We are loving all the amazing feedback. Please subscribe, share, rate, review. It matters, and is truly appreciated.

Bobbi Rebell:
Financial Grownup with Bobbi Rebell is a BRK media production.

Rebecca Jarvis, ABC News Chief Business, Technology and Economics Correspondent, and Host and Managing editor of the “No Limits with Rebecca Jarvis” podcast learned her financial lessons early.

But the truth about the value of that education really came to light when she learned what was going on with a dear friend.  

You will learn why you want Rebecca, and friends like her, on your team. 

 

Rebecca's money story:

• The  money lessons from her journalist mom that set her on the right path

• How Rebecca has helped her friends who have run into money trouble

• The ways that poor money decisions can hurt your opportunities, including jobs

• How banks sometimes lure young people into borrowing more money than they can afford

 

Rebecca’s lesson: 

• specific tools to figure out wants vs. needs. 

• advice on how to maintain a budget

• her favorite app for managing money

Rebecca’s money tip:

• How to make sure your education pays off

• What kind of classes to take post-college

• To be featured as a women entrepreneur of the week email Rebecca Jarvis nolimitswithrjpodcast@gmail.com

Links to people and things we talked about in this episode

• No Limits with Rebecca Jarvis podcast

• Robin Roberts

• Gabby Bernstein

• Sheila Nevins

• Randi Zuckerberg

• Mint

• CFP Board

• The Federal Reserve

Rebecca Jarvis learned her financial lessons early. The truth about the value of that education really came to light when she learned what was going on with a dear friend. Listen to this Financial Grownup episode to learn Rebecca's advice on how to maintain a budget and her favorite app for managing money. #MoneyManagement #Budget

Transcription

Rebecca Jarvis:
He even had some issues along the way when he was applying to jobs. If they think of you as somebody who's not a credit worthy individual, they can say, "Hmm is this person really responsible."

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

Bobbie Rabell:
Hey friends, welcome to another edition of Financial Grownup. I do want to first take a moment to thank those of you who are already supporting the show through subscribing, and of course through rating and reviewing it. Those early reviews have been so precious to me. They are truly appreciated, and I thank you from the bottom of my heart. If you haven't rated or reviewed the show and you like it, or you just want to give me some feedback, please do so. It means the world to me.

Bobbie Rabell:
All right, this guest is amazing and inspiring. She was spared some of the most damaging early in life mistakes that so many of us make thanks in large part to her mom's early lessons about using credit cards and the dangers of debt. But, here's where it gets really good guys. In addition to learning early on how to be financially responsible herself, what I love about speaking with her and what really comes through in this interview is that she is an empathetic and truly supportive friend. Many of her friends, for whatever reason, didn't have the ideal financial educations or experiences, but she is there for them. She is not judgmental. She is helpful. Rebecca Jarvis is the Chief Business Technology and Economics Correspondent at ABC News. She is also host of one of my personal favorite podcasts, No Limits with Rebecca Jarvis, which you should definitely check out. In the meantime, here is my interview with Rebecca Jarvis.

Bobbie Rabell:
Rebecca Jarvis, you are such a financial grownup and I'm so excited to have you on the program. Welcome.

Rebecca Jarvis:
Thank you so much Bobbie. I'm so excited to chat with you. I love your books. I love you. You set a great example for so many people.

Bobbie Rabell:
Thank you.

Rebecca Jarvis:
So thank you for what you're doing.

Bobbie Rabell:
Well, speaking of great examples, I am such a fan of the No Limits podcast, which is no moving into live events, which is awesome. I mean I could literally spend my entire podcast rattling off all of my favorite episodes. Of course, I love the live show you just did, which featured Robin Roberts, who holds a special place in my heart because she survived a horrible disease that my mother did not survive. Every time I look at Robin I get emotional and happy for her. I love the Sheila Nevins episode, which is dishy. I'm basically telling people to go through your archives. Of course, my friend Randy Zuckerberg, who is amazing. Tell me more about what's going on for 2018 with No Limits.

Rebecca Jarvis:
Thank you. I really appreciate that. We are starting to do more live podcasts. We did this most recent one with Robin Roberts. Also, Gabby Bernstein, which a number of people probably know from the space. She had an awakening, a moment in her life where she hit rock bottom, and she figured out gratitude to come back and be a stronger person. But what we're looking at now is a year ahead where we will be doing some live events. We'll continue to talk to game changing women. That's my mission statement is to talk to women who have broken down walls, who have figured out how to play the game, set the rules, and looking at their paths, the trade offs along the way, the choices that they've made along the way, what success really means to them and how they're figuring out balancing all of it. It's really honest, authentic conversations. My favorite thing Bobbie is when a guest will say, "I've never told this to anyone before." I know we're in the right spot if that's the conversation that we're having.

Rebecca Jarvis:
We'll continue to do that. We also will continue to feature and highlight women from our community who are No Limits entrepreneurs of the week. Every single week we feature a listener who is building an empire of her own, and how she's doing it. She gets featured on her Instagram account, on my Instagram account. She gets featured on the podcast and we share a little bit about her story. Anybody who wants to apply for that can always email me at nolimitswithrjpodcast@gmail.com. Feel free to send me ideas and submissions as well. I do read all of the emails there.

Bobbie Rabell:
Okay, I can't wait to see who is going to be next on No Limits, but I'm also looking forward to your money story. It's a good one, do tell.

Rebecca Jarvis:
Okay. I would say that for me my money story, it started early. My mom is a financial journalist. She's a columnist at Reuters. When I was a kid, she was a columnist at the Minnesota newspaper where I grew up. She sat me down before college. The conversation that we had prior to me leaving for college was all about credit cards. It wasn't your typical going off to college conversation, but she talked me through the idea that when you go to college, and the rules were a little bit different back then, you could be a bank and advertise anywhere on campus for people to sign up for credit cards. She said they're going to be everywhere. They're going to be hounding you. They're going to tell you it's great, it's the best thing in the world. Don't do it. You need-

Bobbie Rabell:
By the way, people should know, no longer allowed, but they were bribing you too probably.

Rebecca Jarvis:
Exactly. Exactly. That's the latest story that just came out that a lot of these banks are now even working with the colleges and giving kickbacks to the colleges. Anyway, my mom sat me down, she had this conversation with me and basically said, "Becky, whatever you do, do not sign up for these credit card offers that sound too good to be true. You don't need to do that. Instead, save your money and think about every penny that you spend is money that's coming out of your savings account. Don't spend money that you don't have." That really made a huge impact on me. I have to say because I now in my life have two credit cards. From that point forward, I was just much more skeptical. I think, I look around at a number of my friends who didn't necessarily have those conversations ... I actually had a really good friend in college who he ran up $10,000 in credit card debt not fully recognizing at the time that he would eventually have to pay that back.

Bobbie Rabell:
Oh no.

Rebecca Jarvis:
And he's a smart guy.

Bobbie Rabell:
And it's not just pay it back. It's pay it back and paying interest.

Rebecca Jarvis:
Exactly, which the interest on credit cards is always going to be the highest interest that you're going to get. It's way higher than the amount of interest that you pay on a mortgage. Way higher than the interest that you'd pay on a student loan. Credit card debt is some of the worst debt that you can take on. Anyway, this friend of mine, his credit score was ruined so he couldn't go out and get a mortgage or a car loan post-college. He also ended up not being able to afford paying off the loans and ultimately his family had to step in and help in. He even had some issues along the way when he was applying to jobs. If they think of you as somebody who's not a credit worthy individual, they can say, "Hmm, is this person really responsible?" He was. He was totally responsible. But anyway, that was a big lesson for me along the way just thinking about debt and my mom sitting me down. I'm so thankful that she did, talking to me about it early on.

Bobbie Rabell:
Besides obviously not getting into credit card debt in college, what is your lesson for our listeners? What is the takeaway?

Rebecca Jarvis:
I think that one of the biggest takeaways is recognizing that no matter how much money you have, or feel that you don't have, budgeting and thinking through your needs versus wants is a really valuable thing. There's research out there that shows that almost every person, whether they have $10 in their pocket or $100,000 in their pocket, is very likely spending more on wants than they're truly aware of. I cover so many stories about people who have gotten out of debt. One of the biggest things that the people who have gotten out of debt have done is they figured out, they've gone through line by line, their spending for the last three months.

Rebecca Jarvis:
They've said where am I spending on my needs versus where am I spending on my wants. One of the greatest things that you can do for yourself is think about what those wants are in the short term, and if you can cut back on those wants, you will make sure that you have the future cushion and money to spend on your needs and to get out of that debt. I think it's a really important thing to budget and to look at needs versus wants.

Bobbie Rabell:
Do you have any specific recommendations for budgeting? Do you budget?

Rebecca Jarvis:
I've done the budget. You literally sit down with your credit card statements and you go through line by line. You can use a ruler to go through line by line. You circle every single time you see something on that credit card statement that is a want verus a need, you circle it. It's a reminder to yourself that those are not the things, especially if you're already in debt, which so many people are. Credit card debt just passed $1 trillion. It's at the highest level, a record level. Going through those credit card statements, circling the wants. You don't have to go out and get an app. You don't have to go out and get some fancy technology to do this. It is really right in front of you right now. Most people have bank accounts and credit cards that are already on the internet, that you can access on the internet.

Rebecca Jarvis:
I really like Mint. I think Mint is a good app where my husband and I have all of our, every single loan, every single piece of money, every single paycheck, feeds into our Mint account so we have a full picture of how much we have, or need to spend towards various areas. I do think that that's a good way, but I don't want people to feel complicated. We don't have to over complicate it. It's as easy as taking a look at that whatever it is, whether it's your checking account, or it's your credit card, and saying where am I spending my money and where am I wasting my money.

Bobbie Rabell:
Right, the numbers tell you the story.

Rebecca Jarvis:
Yes, completely.

Bobbie Rabell:
Before I let you go, I do want you to give us a money tip. Something you or maybe your husband uses. Something that our listeners can put to work right now.

Rebecca Jarvis:
One tip that doesn't relate to debt or any of the things we've already talked about that I really like is if you are spending money, think about how that money can help improve you in some way, education, additional learning, whether it's useful to your community. Those are the areas where that dollar, whatever amount of money that you're putting out there, will come back to you ten X, will come back to you so much, with so much more value than just the single penny or dollar that you've spent. Think about those places, when you are spending, think about those places where it goes beyond that sugar rush of oh I just got this new thing. Think about those areas where if you spend your money on something to make yourself better or stronger, then you will gain so much more from that dollar than if you just spend it on whatever thing is sitting in front of you.

Bobbie Rabell:
Can you give us a personal example?

Rebecca Jarvis:
Well for me, I've spent my money on education. I mean that's probably the biggest thing I've ever spent my personal money on is going to college, taking ... I'm not good. I'm not there yet, but taking Spanish classes. I haven't done this yet this year, but I was looking at different art classes because I really love art and I really would love to be able to create art better. Even things like a gym class, for example, if you feel healthier, and it's something that you feel like you can regularly commit to. I have a group of girlfriends that I work out with now, and I will spend money on those workouts with that group of girls because it has genuinely made my life exponentially better.

Bobbie Rabell:
It's all about experience versus just having more stuff. Thank you so much Rebecca.

Rebecca Jarvis:
Thank you.

Bobbie Rabell:
This was wonderful. Rebecca Jarvis, No Limits. I can't wait to hear all of your episodes for 2018 and beyond. Thank you so much.

Rebecca Jarvis:
Thank you. Have a great day Bobbie.

Bobbie Rabell:
Wow, Rebecca had a lot of great info and advice. Here is my take. I want to pick up on Rebecca's money tip and the importance of investing in yourself through education. I have always done this, and I really encourage everyone to do it as well. Most recently, some of you know this, I became a certified financial planner. It was a huge investment, both in time and money, but I felt strongly that if I was going to be here giving advice I need to know my stuff. Can I be stumped? Well, definitely. You guys will definitely be able to stump me, and I'm still figuring out the new tax law, but after I left Reuters last spring, I did take a break and I got my CFP.

Bobbie Rabell:
Over the years I've also gone back to school when things just didn't make sense, or I wanted to know more. For example, early on at my first job at CNBC I realized I honestly, truly did not understand how the fed worked. It was something that I would go on to write about quite a bit in my career, so I took a class. I kid you not, I literally took a class on how the fed worked, how the federal reserve worked. There is a class on that. It doesn't get nerdier. I even took a class on technical analysis because it was just so strange and I didn't understand it. Still don't get it 100%, but the point is I'm always learning.

Bobbie Rabell:
So how do you make it work, both from a money perspective and a time one? Financial grownup tip number one, get someone else to pay for it. If you work for a large company, odds are they have a program to reimburse tuition. Some may require good grades. All the better. Incentives are good. If they don't have a program, ask your boss if the company can pay for a course. Explain how improving your knowledge will ultimately benefit the company. For example, if you want to learn a language like Spanish or Mandarin, you could help the company break into markets where that language dominates, or maybe open up an office in another country. Find a way to make your case and get them to pay for it. If not, there are nonprofits that support continuing education, as well as government programs. Do some homework, find the money.

Bobbie Rabell:
Financial grownup tip number two, and this one is harder. Find the time. We are all so busy. Finding time for something that seems like an extra may seem like a non-starter. I had this problem when I decided I was going to write my book. I had a very demanding job, and was barely seeing my family as it was. I would get home literally just in time to tuck my son into bed before I ate a quick dinner and crashed for the night exhausted. I mean I couldn't even get to the mail pile. But then, I thought about it. I decided I was going to write this book and I was going to find the time. But where?

Bobbie Rabell:
Well, I found the earliest time I could drop my son off at his school, and even if I had a ton of work and a huge busy day ahead of me, I did not go into the office early. I created a window of time between school drop off and my job, my primary job, and stuck to it as a protected time. No plans with friends. No grabbing coffee with the other moms. No doctors appointments. No phone calls. Just the book. And it worked. Find the a time slot that you can carve out and then protect it like a beast. It works.

Bobbie Rabell:
All right, that wraps up this episode of Financial Grownup. Thank you again for all of your support. If you like the show, or just want to give me some feedback, please rate and review it in iTunes, and of course share it with your friends. I truly appreciate all of your support.

Bobbie Rabell:
Financial Grownup with Bobbie Rebell is a BRK Media production.

Shark Tank’s Kevin O’Leary shares a story about his mother and a secret he learned about after she passed away. The Entrepreneur, who is also behind O’Shares and O’Leary Ventures  reveals in the story how his mothers choices informed his investing style, which is heavily focused on dividends. 

He goes on to discuss the two types of investments his mother chose, including her thinking and mindset in making those choices. 

O'Leary also talks about the importance of the tax changes and why that is something that will benefit investors who follow his strategy. 

In his money tip Kevin explains how people who can’t save can find the money to get on track. He also reveals another lesson from his mother that was a bit surprise. O'Leary also shares his 90 day money test that he does with his wealthy friends to help them stay rich. 

O'Leary talks about an app that he launched  called Beanstox that allows investors to buy small dollar amounts of ETF’s and market-leading stocks. It gets people into investing without having to commit large amounts of capital up-front. 

Links to things mentioned in this episode

• Kevin O’Leary’s financial literacy books the Cold Hard Truth series can be found here. 

• His app to start investing can be found at Beanstox

• To learn more about the companies he backs as well as his wine business and more, go to O’LEARY VENTURES

• Kevin also talked about his ETF business O'Shares

• In his story about his mom he spoke about Chanel and Gucci

Books I recommended in the episode: 

• The Opposite of Spoiled by Ron Lieber

• Smart Money Smart Kids, Raising the next generation to win with money by Dave Ramsey and Rachel Cruz

• Make your Kid a Money Genius even if you are not by Beth Kobliner

• Money A-Z Scott Alan Turner

• Steve Jobs, The man who thought different by Karen Blumenthal

 

I also mention Fincon which is a fantastic conference for anyone who creates content about money. 

Kevin O'Leary explains how people who can’t save can find the money to get on track. O'Leary also shares his 90 day money test that he does with his wealthy friends to help them stay rich and how you can save 10% even when you're living paycheck to paycheck. #SaveMoney #MoneySavingTips

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Transcription

Kevin O'Leary:
The executor called me and said, "Look, your mother has kept a secret account from both of your husbands her whole life, you should come here because you're not going to be executor of this".

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, and you know what, being the 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, welcome to this edition of Financial Grown Up, and for those of you who have not guessed yet, yes that was the voice of Kevin O'Leary, aka Mr. Wonderful on Shark Tank. He is going to join us in just a moment to share a story about a secret, a financial lesson secret that he learned from his mother only after she passed away. It is a great story and it's gonna change your whole mindset about how you think about investing, so stick with me here. I just want to do a quick introduction to Kevin, tell you guys a little bit more about him for the maybe one or two people out there that don't know exactly who Kevin O'Leary is.

Bobbi Rebell:
He is a serial entrepreneur. He's got his own ventures including an investment company that focuses on dividend ETS. He also is in the wine business and of course, O'Leary Venture supports all the Shark Tank companies that he's invested in. Recent success of note, Plated, which he sold for a cool 300 million dollars. He's also got a really interesting app I want you guys to hear about and you will hear about it in just a moment. Here is Kevin O'Leary.

Bobbi Rebell:
Kevin O'Leary you are a financial grown up and I'm so excited you are on the podcast. Welcome.

Kevin O'Leary:
Great to be here. Thank you so much.

Bobbi Rebell:
And you are, of course, so special in my heart because you are such an advocate for financial literacy. You make it part of everything that you do, including your entrepreneurial ventures. Before we get to the financial grown up moment that you're gonna share with us, I do wanna have you tell us more about the app Beanstox. Tell us about Beanstox.

Kevin O'Leary:
You know, for the last few years I've been teaching at colleges and high schools and I've just been stunned by the fact that we teach young people in America pretty well everything about math and reading, geography, even sex education, but we never talk to them about financial literacy. We never teach them how to invest, and even when I teach graduating cohorts of engineers at places like MIT, Harvard, Notre Dame, Temple, I'm blown away that these young people going off in the workforce have never bought a stock or bonds.

Kevin O'Leary:
So, the genesis of Beanstox, and I've spelt it B-E-A-N-S-T-O-X, is an app. You download it and it allows you to buy fractional shares of your favorite stocks or exchange traded funds, which means if you only have $2 to invest, or $5, or $10 or whatever you've got, you can actually own a real share and learn about how the prices go up and down, when dividends get paid, and just to build a diversified portfolio. I find when you do that on your mobile device, you actually watch it every day. Some people go on 10 times a day, and I've just been thrilled.

Kevin O'Leary:
Hundreds of thousands of them have been downloaded now. People have set up accounts, even if they only put in 50 bucks a month, it's great to start investing because the truth about America is the average salary is $52,000 a year, and if you started investing just 10% of your income at the age of 22, by the time you're 65, if the markets do what they have done for the last 50 years, which is give you six to seven percent a year of return, you'll have 1.2 million dollars sitting in the bank for-

Bobbi Rebell:
Very nice, all right, everybody check out Beanstox now. I'm really excited for you to share your financial grown up moment money story because my mom passed away a few years ago and it's, in some ways, only in retrospect that I learned some really important lessons from her, and you learned a big lesson from your mom at that time.

Kevin O'Leary:
Yes, when she passed away, I was the older son. I'm two years older than my brother, so the executer called me and said, "Look, your mother's kept a secret account from both of her husbands her whole life, you should come here because you're now gonna be the executor of this" and when I got there, I was blown away. I mean she ... I had always wondered how she'd provided for my brother and I, her sisters, and her extended family. She always seemed to have money, and what she had done is she had done exactly that.

Kevin O'Leary:
She had put aside more than 10% of her paycheck when she was a young woman, and she invested in two types of securities. 50% of this portfolio were in large cap dividend paying stocks, and the other half were in Telco bonds, five to seven year bonds and her thinking was that nobody would ever let their phone be disconnected by not paying their bill, so she trusted Telco Company, and this portfolio, over 50 years, outperformed everybody else in the family's, so I did some research.

Kevin O'Leary:
It really changed my mind forever about investing. 70% of the returns of the stock market over the last 50 years have come from dividends, not capital appreciation, so I never buy a stock today that doesn't pay a dividend. I learned that from my mother, and her whole mantra was never spend the principle, only the interest. She was so right about that.

Bobbi Rebell:
And it's interesting because that really did inform your whole approach to investing and your whole business, when it comes to your ETF business.

Kevin O'Leary:
Yes. O'Shares is build around her philosophy. We don't have a single security in any of our O'Shares funds, including the new midcap one OUSM. The reason I'm really intrigued with midcap stocks in America today, the ones that pay dividends, is because of this tax reform. They used to pay 36% tax, now they pay 21, so their cash flows this year are going to grow up by 15 to 20% more free cash. And if you look at the Russell 2,000, which is the universe of all the small companies in America, 339 are profitable and pay tax, and they're all captured in OUSM.

Bobbi Rebell:
Wow, all right so, what is the take away lesson from that story? Do you wish, for example, that you talked to your mom more about her money philosophy and what she was doing?

Kevin O'Leary:
Basically the take away story is this. When you start saving, there's two aspects to your saving. There's the principal, the money you're putting away, and then there's the interest you make off the principal, or the dividends you get if you bought a stock. What she basically said was it's okay to spend and live off the dividends and interest, but it's not okay to spend the principal, because once you spend the principal, you never get it back.

Kevin O'Leary:
The principal is what makes the money for you, so that philosophy is, you live off interest, you live off dividends, and that's how you monetize your lifestyle, but you never dip in to your principal. Some people say, well I really wanna buy a boat, I wanna buy a bigger house, I wanna buy something and I can't because I don't make enough, and they spend their principal. That always ends badly.

Bobbi Rebell:
Wow, all right. Your mom was definitely a financial grown up and certainly we appreciate you sharing what she taught you.

Bobbi Rebell:
Before you go, give us a money tip for our listeners. Something that you do that maybe they can emulate that can make a difference in their financial wellbeing right now. Something they can implement today.

Kevin O'Leary:
I've learned this years and years ago, and again taught to by my mother. When you go out every day, the whole world is designed to take money from you. That's how they market and tell you to buy this or get a new latte or buy new jeans or a new pair of shoes. Every time you get tempted to buy something, and I do this even to this day, I ask myself, do I really need this thing, do I really need it because when I take it, I take my cash and I buy it, I'm basically killing those dollars in terms of them making me interest or dividends because I bought those shoes or I bought those pants or I bought whatever it was.

Kevin O'Leary:
People say to me, well I can't save 10% of my salary. I'm living paycheck to paycheck, and I always remind them what my mother said, yes you can. You buy so much crap that you don't need and anybody can look in their closet and look at all the stuff they don't wear anymore. The shoes they don't wear or the junk they bought, and so I've really, really learned, buy really good things once in a while. And I'll tell you the anecdotal story.

Kevin O'Leary:
When my mother passed away, the women in my family fought like cats or dogs because all her clothes were Channel and Gucci and really good stuff that she kept for decades, but she didn't buy any crap, and that was her lesson to me. Buy a good suit. Buy a great pair of shoes, but don't buy a bunch of junk. That way you feel good about what you own, but you save a lot of money, and I've been able to cut my spending by a ton because I don't buy crap, and because she taught me that.

Kevin O'Leary:
Even wealthy people I work with, I do this special test with them, I say get a piece of paper, just two sheets, you don't need any technology.

Bobbi Rebell:
Oh no.

Kevin O'Leary:
And write down all of the things you make money from in 90 days, and all the money you spend in 90 days, and even really wealthy people outspend their income, and they learned sobering basis. That's my lesson. Do your 90 day test, but don't buy crap. You don't need it.

Bobbi Rebell:
Thank you so much Kevin O'Leary. It was such a pleasure having you. We will all keep tuning in to Shark Tank and all your other ventures, thank you.

Kevin O'Leary:
Take care.

Bobbi Rebell:
I always love talking with Kevin O'Leary, he's an amazing advocate for financial literacy and such an inspiration. Here is my take and it probably won't surprise you guys. Financial grown up tip number one, talk to your parents about money, and yes, get their advice, but also try to get them to open up about what they did right and also, just as important, what they would have done differently. Get them to share their financial grown up moments, their money stories. When we're kids, our parents often shelter us from what is really going on behind the scenes in our daily lives.

Bobbi Rebell:
For example, I remember as a teenager, my family moved into a bigger and newer house. Now, I didn't think that much about it, when I saw my mom putting towels over the windows. It was a little weird, but you know parents can be weird. What I learned later on was that they had really stretched to buy the house, and they were waiting, holding off to buy the window coverings, so my mom was basically making due with what she had, and really, it was just fine, no big deal.

Bobbi Rebell:
All right, financial grown up tip number two, if and when you have kids, make a plan for how you want them to learn about money. There is no right or wrong plan here, every kid has different ways of learning and every family has different things that are right for them. Find out what works for you guys.

Bobbi Rebell:
Some resources though, I am a big fan of a book called The Opposite Of Spoiled by Ron Lieber. Another classic to check out, Smart Money, Smart Kids by Dave Ramsey and Rachel Cruise, and finally, Make Your Kid A Money Genius by Beth Kobliner. Check them out. And, for fun, I was recently gifted a book at FinCon by Scott Allen Turner called Money A To Z. It was a lot of fun to read with my child, and of course, don't shy away from business stories for kids, especially as they get older.

Bobbi Rebell:
Harry is now 10 and we are reading about Steve Jobs. The actual book title if you guys wanna check it out is Steve Jobs The Man Who Thought Different. It is by Karen Blumenthal. It's opening up a lot of discussions about funding a start up and all the different things that go into a business. It's also interesting to read about Steve Jobs and all of his personal quirks, so I will leave it to you guys to see if you wanna read that book with your children or just check it out yourself.

Bobbi Rebell:
Thank you all for listening to Financial Grown Up. We are new and we need your support. Please subscribe to this podcast and then of course, be sure to rate and review it on iTunes and especially please share this with your friends. And until next time, I am wishing all of you financial freedom.

Bobbi Rebell:
Financial Grown Up with Bobbi Rebell is a BRK Media production.

Even the best money experts can make money mistakes. For nine-time New York Times best-selling author David Bach, it happened in college.

It is not that surprising that he got buried in credit card debt. That happens to a lot of students who get tempted by the easy credit available. But after paying off his debt, David went back and did it again! 

Things get really interesting when he goes to his parents to ask for help.

In this episode you will hear

David Bach’s Financial Grownup money story including:

• How David Bach got into credit card debt- twice- before even starting his independent adult life

• The tactic the credit card companies used that led to even more debt

• How David’s parents reacted when he came clean about his debt

• The common mistakes college students make when it comes to credit cards

• How that debacle actually led to his beginnings as an entrepreneur as a sophomore in college. 

• What David’s first business was and how it helped him get out of debt

• How Bach learned to automate his savings and investing

• How he has used those early in life lessons to build his own wealth, and teach others as well

David’s Financial Grownup lesson including:

• How damaging credit card can be

• Ways to avoid credit card debt

• Why he has not carried credit card debt since age 21

• How he has avoided borrowing for 3 decades

David’s personal finance tip:

• Why automatic payments are great for investing, but not always for bill paying

• The first thing david cut from his budget in 2018.

• How to decide what to cut from your automatic payments

 

In my take you’ll hear my controversial advice on credit card debt including when to use:

• The avalanche method

• The snowball method

• How and when to use your home equity as a resource

• How and when you should consider opening up a zero interest credit card

 

Links to things mentioned in this episode:

David Bach

Smart Couples Finish Rich

AE Wealth Management

Even the best money experts can make money mistakes. For nine-time New York Times best-selling author David Bach, it happened in college. It is not that surprising that he got buried in credit card debt. Listen to the Financial Grownup podcast on ways to avoid credit card debt. #CreditCardDebt #FinancialGrownup #Money #Author