Oscar De La Renta
Becca Brown:
Entrepreneur Lyss Stern, CEO of networking and event planning company DivaMoms and author of two best-selling books explains how she dealt with a major company that approached her to work with them, and offered to pay her in Craisins. Lyss also shares her secret to controlling costs, and still saying yes, when she is out with her kids and they want to have some for treats like ice cream.
In Lyss’ money story you will learn:
-How a billion dollar food company tried to hire her for no pay
-Why they said they had no budget to hire Lyss
-What they offered her instead of money
-The strategy Lyss uses to make sure she is properly compensated for her work
In Lyss’ money lesson you will learn:
-Her negotiating strategy and tips on how it can be used by others
-The best ways to communicate the value of your business
-How mompreneurs can leverage their skillset
-How to handle low ball offers
In Lyss’ everyday money tip you will learn
-How to save money on treats like ice cream
-The questions you should ask while ordering to find out about sizes and other items not on the menu
Lyss and Bobbi also talk about:
-Her books: If You Give a Mom a Martini
and Motherhood is a B****
-How her life inspired her books and her business
-The realities of life as a mom and an entrepreneur
In My Take you will learn:
-How to decide whether it is worth it to take on a low-paying client, when you don’t have other clients in place
-How to find value in a client that truly does not have money to pay for your services
Episode Links:
Divamoms.com
Follow Lyss!!
instagram @diva_moms
twitter @divamoms
Facebook lys. Lyss Stern
Get her books!
If you give a mom a martini
Motherhood is a B****
Transcription
Lyss Stern:
They wrote back to me, "But we can pay you in craisins," and that was it for me. That day, I'll never forget. I could not believe what I was reading in front of me. They had the nerve to tell me that they could pay me in craisins.
Bobbi R.:
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 grown-up is really hard, especially when it comes to money, but it's okay. We're going to get there together. I'm going to bring you one money story from a financial grownup, one lesson and then my take on how you can make it your own. We got this.
Bobbi R.:
Hey, financial grownup friends, so this episode is going to give us permission to push back a little or actually a lot when we don't get what we need to run a profitable business. Emphasis on profit. Mompreneur, Lyss Stern, is the CEO of the networking and event planning company, DivaMoms. There are a number of them out there, but she was really a pioneer and helped create and define an industry that is thriving. And since she has so much free time, not while raising her three kids, she also writes books.
Bobbi R.:
You may have heard of If You Give a Mom a Martini and her more recent hit Motherhood is a B: 10 Steps to Regaining Your Sanity, Sexiness, and Inner Diva, which she co-wrote with Cheryl Burke, and it has a forward by odd-mom-out star, Jill Kargman. Special welcome to our new listeners. We keep the shows short, about 15 minutes so that we can fit it into your busy day, but we also do three a week, so we hear a lot of listeners like to binge listen on, for example, longer commutes. Think of it like flex-time for podcast listening. Hit subscribe if you have not already, and be sure to set up automatic downloads, so you have one less thing to remember. Just like you should automate your savings. One less thing. Okay, now let's get to the fantastic, Lyss Stern, who runs a for-profit business, something potential clients seem to have a hard time fully understanding. Here is Lyss Stern.
Bobbi R.:
Hey, Lyss Stern, you're a financial grownup, welcome to the podcast.
Lyss Stern:
Thank you for having me.
Bobbi R.:
And I am such a fan of your company Divalysscious Moms, major event planning company. I mean literally, you have millions of mothers and Mompreneurs in your universe that you have coming to your incredible events. So I'm over the moon that you were able to make time to chat with us. So thank you for being here.
Lyss Stern:
Of course. Thank you for having me on. I'm so excited to be talking with you.
Bobbi R.:
Before we get to your money story, just tell us a little bit about the company.
Lyss Stern:
Sure. So DivaMoms is a lifestyle company for moms everywhere. What we do is we bring the best of the best directly to the moms. We've really become a direct marketing company, so we work with whatever is new, fabulous for moms, for kids, but everything has to be approved by DivaMoms, by Lyss Stern herself, before we promote it to our moms and our community.
Lyss Stern:
And we throw these amazing events and we have DivaMoms book clubs and lots of fabulous parties where moms can come and just be, let their hair down, have fun, mix and mingle with other fabulous moms and really a great social network for moms everywhere. A really amazing community online and offline.
Bobbi R.:
And you're also an author. We're going to talk about your books, in a couple of minutes, but first I want to get to your money story, because you're talking about your business, and it's really important for people to hear a little bit of the behind-the-scenes of what goes on behind these events, and the kind of decisions that you have to make in running a successful business. Tell us your money story.
Lyss Stern:
Sure. So my money story is that I get hundreds and hundreds of emails a day, as I'm sure many Mompreneurs do, where companies want to work with me. They want to advertise with DivaMoms. They want to sponsor DivaMoms events. They want social media, They want email blasts, you name it. They want it.
Bobbi R.:
So there was one company that approached you and this was not a startup. What specifically did they approach you about doing with them as a business?
Lyss Stern:
Sure. So this one company, in particular, that is a billion dollar business.
Bobbi R.:
A food company?
Lyss Stern:
A food company, billion dollars.
Bobbi R.:
A company we've all heard of?
Lyss Stern:
Yes, oh yes. Reached out to me and said, "We love DivaMoms. We want to work with you, we want to advertise with you. We want to sponsor some of your events. We want to do direct marketing with you, want to do social media with you. We want email blast with you," all this other fabulous stuff. Okay, great. So I write back and "Thank you for reaching out. Let's talk, when you have some time, about what your budget may be," and all this other stuff.
Lyss Stern:
And they write back to me, "Oh no, no, no, no, no. We don't have a budget. We don't have a marketing or advertising budget." No, but I see their advertisements on every billboard, on every bus.
Bobbi R.:
Well they don't have a budget for you.
Lyss Stern:
But they don't have a budget for me. Correct.
Bobbi R.:
And they came to you?
Lyss Stern:
Yes. I did not approach them, and they can come directly to me. I wrote back something very polite and then they wrote back to me, "Oh no, no, no, no, no, but we can't pay you," because I guess they got, they understood where I was coming from, that this DivaMoms is a for-profit business. Yes, we are affiliated. We work with different charities that we're passionate about, but DivaMoms is not a charity, we're a for-profit business like everybody else like they are.
Lyss Stern:
And they wrote back to me, "But we can pay you in craisins," and that was it for me. That day, I'll never forget. I could not believe what I was reading in front of me. They had the nerve to tell me that they could pay me in craisins. And ladies and everybody out there know your worth, and you know that you are better at getting paid in craisins.
Bobbi R.:
Oh, my goodness. Tell me how you would, in another situation, how can you turn around that kind of approach to something that is paying you in money? Have you had any stories where you've been able to make the pivot and get someone to see the value and then actually pay you in a currency?
Lyss Stern:
Yes. So I've had this many a times and this was the one time, obviously, that was with the craisins, and it was just ridiculous. But a lot of times I will write back to companies that reach out to me, and I'll explain to them who we ... Sometimes I don't think they really understand what I am or what we do. They might think that I'm, I don't know what they might think, maybe it's just a hobby for Lyss Stern. Maybe this is a hobby DivaMoms, this is not a business, and I make it, it's all business.
Lyss Stern:
This is what it is. It's very black and white and I send them, obviously, information. I send them photos, I send them videos, I send them press links and let them know who I really am. And then a lot of the times they do come back, and they say, "Oh, I didn't realize," and, "I didn't know that you did this and this and this. Let me go back and see if we can find some money in the budget." And a lot of the times they do go back, and they do, miraculously somewhere, find money out of their budget to work with us.
Bobbi R.:
So what is the lesson for our listeners to get more situations like scenario number two rather than number one?
Lyss Stern:
Sure. My mom always taught me, and I'm sure we get everybody's heard this a million times, "You get more with sugar, so always be sweet." Always put your best self out there and hopefully they will come back and understand. That you, obviously, that you have a business that you have worth. And it's always nicer to respond with a nice email and/or pick up the phone and set up a time to call and explain yourself. Explain what the business is, who you are, what you actually really do. And if they don't understand, no worries, no problem. But, hopefully, after speaking to you, after really going through your email and going through your information and doing their due diligence. They'll come back and say, "Okay, we found money," or "We'd like to really work with you and this is what we're going to do and this is what we can do."
Lyss Stern:
And I also always, I think it's important too, to give companies options to say, "What is your budget? What are you looking to do? Because we could start at this, and we can go to this." But it depends on again, what every company's looking for. And I just think it's there from the beginning, from day one of the conversation to be open and hat in hand and to have that conversation. And that's just even an example of a few days ago, a company reached out to me, a clothing company. They want me to host an event for them and Dah, Dah, Dah. And she starting to getting into this whole conversation about where the event was going to be. And I said, "Before we even begin this conversation, I just have to tell you we charge and this is what we do and this is-
Lyss Stern:
And she's, "Oh well, oh, I didn't know, I didn't know that you ... and so I had to explain it and then I sent her a proposal and that's also important too. Write it out, a, b, c, bullet point, make it visual and show them what you do, and then hopefully they'll come back with a budget.
Bobbi R.:
And I like the way that you phrase that, because what you're doing is you're giving people the benefit of the doubt. That they may think, on the surface, not fully understand your business, that they're in fact helping you give you exposure, give you new contacts, that kind of thing when in fact, as you said, you do need to be compensated, because this is the business. And I think that's something that people can sometimes get lost in, and they are well intentioned. You can't necessarily come back with negativity.
Lyss Stern:
Absolutely. I think that if you come back with negativity, at least from the beginning, from right on, it's not going to get you anywhere, but sometimes they really might not understand what you are, who your business is and what you really do. So just again, send an email, really show them what you do or set up a phone call with them or even have a meeting, go for coffee, have a lunch meeting and be a person and talk about what you do. So I think that they get a better understanding and then hopefully they can wrap their head around it and see the value and see the worth. And I think that's really important.
Bobbi R.:
Do you try to let them say the number first in terms of budget?
Lyss Stern:
I do. A lot of times I'll say to the company, "What are you looking to do? What is your budget?" And a lot of times they'll come back to me, and they'll say, "Well, what can you do for this amount? What can you do for that amount?" And sometimes they'll say to me, "Well, I don't really know, so can you give me a breakdown of what things cost?" Which I'll do always. I think a lot of times a lot of companies today don't pay, because they don't have to, because a lot of times people or companies or influencers might do stuff for free, which is fine and great. Or they might do stuff for products, I mean whatever that's wonderful. But we, my company, happens to be a for-profit business, so I just need to make that clear from early on.
Bobbi R.:
All right, let's move on to your everyday money tip, because this one made me really happy. Tell us.
Lyss Stern:
Okay. I have three children, and we love to go for ice cream. However, there is a great way to save money for ice cream. For us as adults, they always do offer kiddie cups and kiddie cones. They might not show it out on the counters-
Bobbi R.:
And they don't always tell you, which is tricky with the kids. You have to be proactive, because your kids are going to see the bigger sizes.
Lyss Stern:
Yes. You have to be proactive. You have to ask, they most usually do not put the kiddie cone, or the Kiddie cup out there, especially during the summertime, their busiest time. And same thing for going for a ladies lunch. A lot of times you don't have to order the whole salad. You could ask for half a salad, and it also affects the cost, obviously. They're just little tips about food that you can, obviously, save a few dollars by asking and being proactive.
Bobbi R.:
Always order the small or even just order an appetizer. If you're super hungry, of course, eat what you want to eat, but if you're really just there to spend time with your friends, and the food is kind of an afterthought. Don't feel you have to order an appetizer, a drink, a full entrée, a dessert, a coffee, tea.
Lyss Stern:
No, it's definitely not necessary.
Bobbi R.:
All right. I want to talk about your books, because in addition to this big business that you re running you're also churning out some books. So your first book was If You Give a Mom a Martini, which I loved. I remember reading that. A 100 ways to find 10 blissful minutes for yourself. We all need that. And, by the way, it applies to dads too, okay.
Lyss Stern:
Yes, it does.
Bobbi R.:
And then your latest one is Motherhood is a B, 10 Steps to Regaining Your Sanity, Sexiness and Inner Diva, which is a great summer read. Tell us a little bit more about that.
Lyss Stern:
Sure. So this book was created, because I felt, after having three kids, that I was just on the verge of losing it, losing myself actually. I wasn't feeling well. I was just in a place, my father just passed away, and I remember going to a retreat by myself for a few days. I said to my husband, "I just need to go away for a few days." I went to a retreat, and I remember coming back from that retreat and saying, "I need to start taking care of myself. I need to start putting myself first, because if mom's not happy, kids aren't going to be happy." Motherhood is really hard. I don't think that anybody tells you, there are no parenting books out there that really tell you what motherhood is.
Lyss Stern:
Everyone, sometimes they paint pictures of that it's rainbows and roses and Unicorns every day and it's happiness, and it's ... but it's really hard being a parent, and I think that the book is all about really empowering you to step back and get yourself back. It's like almost like a Stella Got Her Groove Back, right.
Bobbi R.:
When feel like someone gets you.
Lyss Stern:
Yes. And that's really what the book is about, and it's a great beach read, and you could have conversations with your friends and don't forget to have a B-Tini on the beach as well, because we have the recipe in there. It's absolutely delicious, with watermelon juice, and it's just again, taking care of you and putting your foot down and learning to say no and really regaining your inner-B, because motherhood is a B.
Bobbi R.:
All right. Tell us more about where people can find you and learn more about you, DivaMoms, your books, all that good stuff.
Lyss Stern:
Sure. So everybody can find me. The best place to find me is on Instagram, which is diva D-I-V-A _ moms M-O-M-S. And you can also find me on Twitter, which is divamoms.com, and of course my website, which is divamoms.com and also on Facebook. I'm very active on Facebook.
Bobbi R.:
You're everywhere.
Lyss Stern:
We have a Divalysscious Moms pages, but we also have a Lyss Stern page where I post a lot of stuff too, and also everybody listening, I'm a little sarcastic online, and I'm a little bit funny I'm a little bit witty, and I'm very real and what you see is what you get.
Bobbi R.:
Which is awesome.
Lyss Stern:
Thank you.
Bobbi R.:
Okay, friends. So the most upsetting thing about Liz's story is that while the whole craisins thing with the currency was pretty unbelievable, the idea that potential clients will try to convince you that they have no money is not unusual, especially when it comes to Mompreneurs. Let's face it. So Financial Grownup tip number one, every time you take on a client that pays you a low market or less than you want or need, the time that you used to work for that client is time you are not using to find better paying-work or to do better-paying work. So for example, let's say Lyss decided to work on a client that paid her 20% below what she needed to make a profit, because well, it was better than nothing and maybe she didn't have something else at the time, when that offer came in, those days are locked in.
Bobbi R.:
Okay, so now another potential client comes along, and we'll meet her price, but now she's not available. Don't work with clients who either cannot afford to pay you at the rate that you need to hit your profit targets, and especially don't work with clients that have the resources to pay you appropriately, but choose to try to low ball you.
Bobbi R.:
Financial Grownup tip number two, but here is the caveat to what I just said. If there is a client that, in the short term, cannot afford to pay you in currency, as I joked with Lyss, but you believe they will add value for your brand in a constructive way, it is okay to try to work something out. Don't be stubborn. Not every case is black and white. Live in the gray areas, just not in the red, of course.
Bobbi R.:
Thanks for sharing this time with us. Tell us your Financial Grownup money tips, DM me on the social channels @bobbirebell1 on Instagram, @bobbirebell on twitter, and learn more about the show at bobbirebell.com/financialgrownupspodcast. Lyss Stern does not mess around. She is definitely a Financial Grownup, so thanks, Lyss, for helping us all get one step closer to being Financial Grownups.
Bobbi R.:
Financial Grownup with Bobbi Rebell is edited and produced by Steve Stewart and is a BRK Media production.
Investment advisor Andy Wang, host of the Inspired Money podcast, stepped out of his comfort zone, tried something that scared him, and connected with new clients and friends including celebrities like Christie Brinkley.
In Andy’s money story you will learn:
-How Andy balances his hobbies with his growing business and podcast
-The strategy Andy uses to overcome his fear of trying new things
-Why he originally stopped guitar lessons after just 4 sessions- and what brought him back to music
-What is Hawaiian Slack Key Guitar?
-The big call he got from Christie Brinkley’s team
In Andy’s money lesson you will learn:
-How having a hobby that opens him up to new experiences grows his social and business circle
-Why he believes the most successful people are those who force themselves out of their comfort zones
-The quote from Tina Fey that inspires Andy
In Andy’s everyday money tip you will learn:
-How to recover from mistakes
-Specifically what to do if you own a stock that is not performing- and most importantly what to do next if you still believe in the stock
-How to keep up with your investments and automate them so you can be free to do other things
In my take you will learn:
-tips for things you can automate in addition to bill paying and investing
-how to get more sleep, to be more productive in business
-the importance of letting clients see you outside of transactional and business settings in order to build longer and stronger relationships
If you want to win a promotional video for you or your business- remember to share them when you see them on social media!
And if you have a money story and every day money tip you would like to share- write us at info@financialgrownup.com
and you could be featured on an upcoming episode of the podcast!
Episode Links
Learn about Andy’s company at http://www.runnymede.com/
Listen to his podcast at http://blog.runnymede.com/topic/podcast
On Facebook https://www.facebook.com/runnymedecap/
Follow Andy
Twitter @RunnymedeCap
Facebook https://www.facebook.com/taropatch
Instagram https://www.instagram.com/inspiredmoney.fm/
Transcription
Andy Wang:
One day, I was driving to work and my phone rang. I answered, and the person said, "This is Christie Brinkley's office calling. Are you available to play a private event?" So long story short, I played a small, intimate event for Christie and about 10 of her friends and family. It was a crazy night.
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. So I don't know about you, but I'm pretty happy just kind of staying in my comfort zone. But let's be real: It gets boring and staying still is also not usually a really good business plan or career advancement strategy. So we're all in for a year with this guest coming up. But first, a quick welcome to anyone new that is joining us for the first time. You're going to notice the episodes are relatively short, especially compared to other money, business, entrepreneur-focused shows out there. It's done very much on purpose. We're going for about 15 minutes, give or take. The idea is that, you can listen between things, when you have a sliver of free time, and walk away feeling like you learned something of value, and hopefully, smiled a bit, too. But we also know, a lot of our listeners like to binge on a few episodes at a time, so if you're commuting or running errands or something that takes a little bit longer, you can listen to two, three, four episodes and get an hour of content. So we just want to be flexible and work with you. And of course, welcome back to our regular listeners. Thank you. If you have not hit Subscribe, please do so, so you don't miss any upcoming episodes, and there are some really amazing ones coming up. So I'm exciting to share them with all of you.
Bobbi Rebell:
Okay, now to Andrew Wang. He's an Investment Advisor at Runnymede Capital. But you may know him as the host of the Inspired Money Podcast, or he may have been the entertainment at a party you went to. Really. Listen. Here is Andy Wang.
Bobbi Rebell:
Andy Wang, you are a Financial Grownup. Welcome to the podcast.
Andy Wang:
Thank you so much, Bobbi. I can't believe that I'm here.
Bobbi Rebell:
Finally. I know, I've been trying to get you on for a while. You're very busy, you're the host of the Inspired Money Podcast. You also have your own company, Runnymede Capital Management, the only, thank you very much. And you are acclaimed as an advisor and an influencer, so much so, that you are on the Investopedia 100 Most Influential Advisors. So this is an honor, Andy.
Andy Wang:
The honor is mine. I'm still trying to convince all of my coworkers that when I'm on Facebook, that I'm working.
Bobbi Rebell:
You're always working, Andy, even when you're having fun, and even when you're doing your hobbies, one of which involves getting over your fears, learning new skills, and even meeting some celebrities. Tell us your money story.
Andy Wang:
Yeah. It goes back through, you and I have talked about this before, "How can we do so many things?" We all have to-do lists that are a mile long. It's important for us to find and make time for family, hobbies, and to decompress. So my Financial Grownup story is about doing something that scares you. It takes me back to when I was in high school. Remember the days when there were music videos on MTV?
Bobbi Rebell:
I do.
Andy Wang:
I always wanted to learn guitar, so the summer after graduation, I mentioned this to my dad. And without hesitation, he replied, "Well, go for it. Don't just think about it." So that was great advice. I took four lessons, and I never aspired to play in front of everybody. I had the worst stage fright. If I had to perform in front of a group, my hands got clammy, they shook. I literally got a stomachache. So years later, because my wife was born and raised in Hawaii, and over many trips back there, I fell in love with Hawaiian music and the Hawaiian culture. So there just aren't that many people in the New York Area who play Hawaiian slack key guitar.
Bobbi Rebell:
What is Hawaiian slack key guitar? Just so we know.
Andy Wang:
Hawaiian slack key guitar is a folk tradition that was born in Hawaii in the late 1800s. The legend is this: The locals didn't know how to tune the guitars, so they slacked or loosened the strings to suit their vocal range and their music. So I slacked my guitar strings, and I would get invited to play at weddings, parties, corporate events. And I had to get over my fear.
Bobbi Rebell:
So you got over your fear, and you started playing. And what's interesting is, this led to a bunch of different things. It led to celebrities, it led to new business. Tell us more.
Andy Wang:
Yeah. One day, I was driving to work and my phone rang. Even though I didn't recognize the number, I answered, and the person said, "This is Christie Brinkley's office calling. Are you available to play a private event?" So long story short, I played a small, intimate event for Christie and about 10 of her friends and family. She invited me to join them for dinner afterwards. She's just a super, super-nice person. It was a crazy night. The financial takeaway, I think is this: Our personal networks and connections that we make to people, that benefits our business, or benefits the work that I do. And when people can see me out of context: not wearing a tie, not being in my office, they see me wearing an aloha shirt, playing guitar with my family, it enables me to make those human connections, and meet all kinds of interesting people. After all, music is a language.
Bobbi Rebell:
And it's not about business that day. It's about starting the relationships that eventually, some of them, or maybe friends of theirs, or acquaintance of theirs, become your clients, in a very holistic way.
Andy Wang:
That's exactly right. It's about making friends. And just meeting people, and making those connections.
Bobbi Rebell:
And tell us, for our listeners, what is the takeaway for them? How can they apply this to their own lives, and to their own finances?
Andy Wang:
Well, my avocation has taught me that we can live richer lives by forcing ourselves past our comfort zones. Whether it's learning an instrument, starting a podcast, investing your 401(k), sometimes it's as simple as just opening up and reviewing your financial statements. I mean, we always hear the stories that, in a bear market, people don't want to even look at their financial statement. So pushing yourself to do things that scares you can really lead to magic happening. Tina Fey has a quote that I love, and it's, "The fun is always on the other side of yes." Surveys of millionaires support this, too, because there's a common characteristic that millionaires share. And that's having an openness to take on new experience and try new things. If your boss asks you to take on a new project or to lead a team, the answer should be, "Yes."
Bobbi Rebell:
Do you think that people that try new things, I'm kind of stating the obvious. But I guess, why is it that people who try new things are, in your mind, more successful?
Andy Wang:
Having a willingness to try new things, it's like, they say, "Fake it until you make it." You have to be open to new opportunities. Sometimes, these are opportunities that you would even imagine yourself doing. But by saying yes and to committing to it, that's how you're going to learn. I mean, that's how we all learn.
Bobbi Rebell:
Okay. But let's go to your everyday money tip, because it's kind of the reverse of commitment, and committing to your ideas. It's also kind of being okay taking a more, I don't know, kind of stepping back a little and being okay with being, maybe wrong sometimes?
Andy Wang:
Yes. My money tip: We all make mistakes, and when you're investing, my money tip is to cut your losses. I took this simple rule from a successful hedge fund manager. Too often, people let losers ride, in hope that they'll come back. We all have those dogs in our portfolio. And the reality is that, losses have a tendency to grow. It's almost like a disease or cancer in our portfolios. So if you really life something and want to be a long-term owner, be willing to enter, exit, and re-enter again if necessary. The fund manager who taught me this, he's willing to buy and sell a position, five, six, seven times. So if you cut losses, let the winners ride, you'll set yourself up for long-term gains, and lessen your term pain.
Bobbi Rebell:
So just to pull something out of there. So what you're saying is, if you still believe in a stock and it's going down, that doesn't mean you have to ride it to the very bottom. You could sell it, take some loss, and then re-buy it at a lower level. It doesn't mean you don't still believe in the company necessarily, you're just not okay with the price, where it's going in the short term. Is that where you're getting at?
Andy Wang:
Correct. The whole idea is that, if you pick a company that you love, you may not know the precise timing that's going to make sense, like, the optimal time to buy it. So you have to be willing to buy it, but then, set a limit, so that, if it goes down and it's not working in your favor, that you have to be willing to cut it. And you may come back and re-purchase that stock, but you just, you want to eliminate the potential for losses to grow into bigger losses. And then, you're stuck, because you're kind of handcuffed, because then you're not sure: Should you wait, or should you not?
Bobbi Rebell:
And specifically, what are some tactics that people can use to actually do this?
Andy Wang:
Well, my advice is that, people should pay like, pick a number. Pick a number that you're willing to stomach. Sometimes, that could be, if it goes down 5 percent, if it goes down 10 percent, and then, in your brokerage account, you could set up a stop loss order to automatically trigger if the stock hits that level.
Bobbi Rebell:
In order words, you're automating it and taking the emotion out of it.
Andy Wang:
That's correct. You can set it up so that this could be happening while you're taking a nap somewhere, or even if you're on the beach: If the stock goes down 5 percent, 10 percent, whatever your limit is, you're controlling the amount of loss that you're willing to let that get to.
Bobbi Rebell:
All right. Thank you so much, Andy. So tell us more about what's going on at Inspired Money. Tell us about, we haven't actually talked much about it, because the title is actually very meaningful to what you talk about.
Andy Wang:
Yeah, someone told me recently that money is not something that they associated with inspiration. So on the Inspired Money Podcast, we really try to explore money conversations with successful people on how to be more purposeful, more intentional, and make your money more meaningful. And I'm having a lot of fun with it, because I'm talking to such a diverse group of people, ranging from entrepreneurs to those in non-profit. I've talked to actors, I've talked to screenwriters, musicians. I mean, we all have to live and deal with money.
Bobbi Rebell:
Well, I'm waiting for the Christie Brinkley episode, so that'll be one to watch. Right?
Andy Wang:
My fingers and toes are crossed, Bobbi.
Bobbi Rebell:
All right. Tell us where everyone can find you.
Andy Wang:
And thanks so much. Listeners can find me at Runnymede.com or @RunnymedeCap on Twitter. That's R-U-N-N-Y-M-E-D-E. We help people to plan for retirement, protect and grow their investments. We also help business owners to set up and manage their company 401(k) plans. And then, for Inspired Money, you can find me at InspiredMoney.fm, or wherever you listen to podcasts.
Bobbi Rebell:
Love it. Thank you so much, Andy. I really appreciate you coming on.
Andy Wang:
Thank you, Bobbi.
Bobbi Rebell:
Love that advice from Andy, my friends: Take the emotion out. So let's talk about that. Financial Grownup Tip number 1: We automate lots of things, just like Andy suggested. Stock sales is one example. Paying bills is another thing. But it's just good to automate things that we don't always make rational decisions about. So in addition to stocks and bill paying and those kind of things that we think about automating, I'm going to go to something that is non-financial, but that does have financial consequences if we don't pay attention to it. And that is sleep, and getting a good night's sleep. You know what we can all do, to get a better good night's sleep? Set a sleep timer on your media. It can be the television and yes, you can put your phone or your computer on a timer as well, to go into sleep mode. In fact, there's tons of apps to even measure the quality of your sleep.
Bobbi Rebell:
But I think the most important thing is to not be actively using the actual devices. And sometimes, it's really hard to do that. So set a sleep time. Think about how many nights we intend to watch just one TV show, one half-an-hour TV show, and you know they all go rolling right into the next show. So it's really hard to do that. Or we say we're going to check our social media for a limited time, and then, you look up at the clock, if you even do look up at the clock. And then, "Oh, my gosh, it's past midnight." So let's automate that, so that it goes off. And try to not turn it back on when it goes off, kind of like the snooze alarm in the morning. Just, when it goes off, let it go off. We know that if we get more and better-quality sleep, we're going to function better. We're going to perform better at work, at our jobs, with our businesses. And in the end, that will result in a better chance at hiring profits and more success. So let's do it.
Bobbi Rebell:
Financial Grownup Tip number 2: Andy quoted Tina Fey as saying, "The fun, it's always on the other side of yes." And I would add, "The profit is on the other side of yes." Come from a place of "Yes." Don't forget to have fun. Keep an eye, though, on where the profit can be. If you say "No," there is zero chance of fun and zero chance of profit. Andy not only has a great side hustle from this skill playing Hawaiian slack key guitar, go Google it. After this is over, you can learn even more. He meets celebrities like Christie Brinkley, one-on-one. Super fun. And to be sure, he gets new business in an authentic way that bonds him to clients and makes them more likely to stay with him long-term, because they see what a great guy he is. They see him in a different context from just meeting him behind a desk in the office or through phone calls, or through other ways of communication, emails and all that stuff.
Bobbi Rebell:
All right, love hearing from all of you. Keep sharing our promo videos on social media for a chance to win one for your business, or just for you. And please rate and review Financial Grownup on Apple Podcasts, and of course, hit the Subscribe button, to make sure you don't meet any upcoming episodes. And tell your friends if you like it. We really love that the show is growing, and want to keep it that way. So make sure to tell everyone that you think would enjoy Financial Grownup. You can follow me @BobbiRebell on Twitter. Instagram, BobbiRebell1. Facebook, I am at Bobbi Rebell. And of course, you can also go to my website, BobbiRebell.com/financialgrownuppodcast, and sign up for our newsletter.
Bobbi Rebell:
Andy is a true Financial Grownup, blending all that he loves together: family, friends, music, and his business. He is a great role model, so thank you, Andy for bringing us all one step closer to being Financial Grownups.
Bobbi Rebell:
Financial Grownup with Bobbi Rebell is edited and produced by Steve Stewart, and is a BRK Media Production.
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