5 of Your Most Pressing Money Questions–Answered

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COVID has shown us how quickly unexpected events can throw our plans off course. Now, more than ever, it’s important to plan ahead–especially when it comes to your finances. Whether you're bootstrapping your business, setting up your retirement fund, or simply learning the financial basics, it pays to pay yourself forward. Investing in your future will pay back dividends. 

To help you master your own financial future, we teamed up with Ally for our recent Money Moves digital summit to host a mentor power-hour with five financial experts to answer your most pressing money questions.

In case you missed it, we’re sharing a few of the Q&As from our Money Moves mentor session. Read on for some sage financial advice from our five mentors who know quite a bit about the importance of investing in yourself, your business, and your financial future.

Jack Howard serves as the Senior Director of Wealth Advisors Operations for Ally Invest.  In this role she manages the day-to-day operational processes of the Wealth Advisor business.  She is also responsible for the Ally Invest Inclusive Wealth strategy that is part of the Ally enterprise Financial Social Inclusion (FSI) efforts and serves as secretary for the Ally Charitable Foundation. Prior to joining Ally Invest, Jack served as Senior Director of Ally Corporate Citizenship.  She was responsible for the creation and execution of strategic programs for the organization’s financial literacy program, corporate giving initiatives and employee giving/volunteerism programs. 

Jack graduated from Michigan State University with a Bachelor of Arts degree in Journalism and is currently a student in Syracuse University’s Master of Science in Communications Management program. An active professional, Jacqueline is a member of Alpha Kappa Alpha Sorority, Inc. and Jack and Jill of America, Inc. She also serves on the national board of directors for the American Bankers Association Foundation and Society for Financial Education and Professional Development (SFEPD), as well as the Boys and Girls Club of SE Michigan.

Jacqueline has a deep passion for helping Brown and Black communities build wealth through economic mobility. Her work has earned her a spot as one of the 15 women on the inaugural Next list - an extension of the American Banker Most Powerful Women in Banking program.

Q: Investing can be intimidating–what advice do you have for someone who’s new to investing and doesn’t know where to start. How do I overcome the intimidation factor?

JACQUELINE: As a first-generation stock investor, I know what it feels like to be paralyzed with fear because you don’t know what to do first. I am the daughter of a police officer and teacher who had pensions to fund retirement, so the stock market was not a topic of discussion at my dinner table during childhood. After graduating from college, I realized the importance of owning stocks as a piece of my wealth building strategy. I started small and made a $25 contribution to the 401K provided by my employer. As my salary increased, I contributed more, hired a financial advisor, and opened a Roth IRA account.  I also worked hard to eliminate credit card and student loan debt.  Over time, I became obsessed with understanding money and wealth building.  Now, I am constantly listening to audio books and podcasts, watching CNBC or reading the Wall Street Journal and Barron’s.  All of those efforts helped me to better understand money and investing.  So, my top tips for new investors: start small, automate the process and make a commitment to learning.

Allyson Byrd is also known as the “Profit Accelerator™ and she is celebrated as one of the world's most trusted leadership advisors and sales experts for entrepreneurs and small business owners. Today, her and her team executive produce exclusive virtual membership communities for influencers with online audiences over 1 million in reach. Allyson’s clients generate a collective $33 million-plus in sales revenue annually. She and her team have coached 7500 entrepreneurial leaders to create $260 MILLION in NEW revenue over the past 9-years. You’ll be able to hear more of Allyson’s journey to success from an underprivileged life on food stamps, a dad in prison and single mom raising two kids to the ultra-passionate successful leader she is today and the undeniable stand she has for women rising into their greatness in her latest collaboration with Amazon Prime TV. Allyson’s press features include CNN, USA Today, NPR, Time Money, Forbes, Yahoo Finance, Business Insider, CNBC, MSN, Black Enterprise, Essence and Entrepreneur.com.

Q: If this last year taught us anything, it was the importance of planning for the unexpected. As a small business owner, how can I be better prepared financially for emergencies?

ALLYSON: The last year taught us many lessons and brought significant stress to women business leaders all over the world. We found ourselves questioning how to properly position our services, pivot our product lines and staff our teams amidst a global pandemic and a world-wide racial reckoning. This was not easy, but we survived. 

There are (3) things that I shared with our clients averaging $250,000+ annually to keep them on track and committed to success. 

1. When money stress hits, do NOT discuss the stress. Focus on the pivot. Ask yourself, “What is my lowest hanging fruit to sell and position to the market?” Your job is to sell with intention, sell fast and secure your cash flow.

2. Get LOUDER in your marketplace. Our tendency when stress hits is to go quiet and enter protective mode. Choose from a place of power and connect with your audience like never before. Do the things others aren’t doing so you can curate success for your business in ways others are not. 

3. Finally, as the business leader–center yourself. Know your numbers, meet with your accounting team (bookkeeper, accountant, heck… this may be you having a meeting with you) but whatever you do, don’t hide behind your numbers, stand on them. Have a clear picture of where you are so you know where you’re taking the business. 

Financial stress can cause us to take our mind off our business goals, slide away from leading with discipline and throw us quickly into a state of overwhelm and fear. 

Use affirmations like the one below to kick off your breathwork or meditation because if you’re riddled with anxieties and high-stress emotions, your business and your bottom line will soon follow.

REPEAT AFTER ME: I am a vibrational match for financial prosperity because I choose to only allow massive well-being. I stay in the place of already receiving monetary abundance from all sources that are for my highest good and greatest joy.

Stay the course. It’s the ebb and flow of business and keeping your mind centered, your energies focused and your intentions clear will get you through the storm and back into the sunlight of your success. 

Britney “Jeanine” Canidate is the owner and founder of Britney Jeanine & Co., a business coaching firm based in the heart of Atlanta, Georgia. Serving as the head Business Coach and Pivot Strategist, Britney believes that every entrepreneur should build a business they are most passionate about—even if it means slapping fear in the face and pivoting accordingly. Wife, mom of 2 and a business owner for over thirteen years, Britney has established herself as an industry leading business and brand strategist, and has supported clients across a multitude of industries. From corporate executives, high-ranking government officials and thousands of creative entrepreneurs, Britney has intently positioned her expertise in order to build a business focused on greater results, revenue and retention. Known for her spunky-tough-love approach, creativity, strategic mind and attention to detail, Britney is a proud graduate of Georgetown University where she received her Masters in Public Relations & Corporate Communications, and a Florida State Seminole with a background in Finance & Marketing. Using her signature system, you can find Britney working with experienced [yet transitioning entrepreneurs] who are ready to confidently plan their pivot without compromising their coins and credibility.

Q: I am currently working full-time for an employer but I plan to launch my own business soon–where is the most important area for me to focus my financial energy right now in order to take the leap?

BRITNEY: What a great question... and it's awesome that you're starting to think of this now. A mistake I often find those starting new businesses make is: investing based on what others are doing, and not based upon their OWN goals/needs.

So here is my advice:

• First define your brand by outlining your what, why, how, who and who not.

• Then focus on the who and determine how you can solve their problem(s).

• Now that you have the solution to their problem(s), package it up... is it a product, service and/or program...

• Now it's time to launch it into the world... who are the key people that can help you make this happen?

So to answer your initial question... your financial energy will go into "the key people that can help you make [your launch] happen".

 Maybe it's inventory samples? Maybe it's a business coach? Perhaps it's a brand designer or operations strategist... but the question still remains—who are the key people that can help you make the launch of your new business happen? Start there.

Alaina is an accountant, certified financial coach, author, and content creator. She helps busy people who struggle with budgeting and time management use a paper planner to get organized. She shares her easy approach to productivity & finances through her YouTube channel and has amassed over 75,000 subscribers and 3.5 million views on the platform. Her work has been featured in Yahoo Finance, Martha Stewart Living, Wired, The New York Weekly, The Huffington Post, and she was recently selected as one of LA Wire's 40 under 40. Alaina lives in New Orleans, Louisiana with her husband Torrey and their two daughters Tori Michelle and Alyssa Jade.

Q: I’m reevaluating how I split up my finances in the wake of 2020. How much cash should I keep in my savings and checking account?

ALAINA: Here is how I break down cash in my accounts:

Checking Account: I keep a small cushion in this account (no more than $200 - $500) just to cover any unexpected expenses from my daily spending. I don't like to keep more than that just in case my debit card is compromised.

Short Term Savings Account: With my short-term savings account, I am keeping money for any repairs or things that don't happen every month (like birthdays). In this account I keep one month of expenses. 

Long Term Savings Account: This is my emergency fund. I would keep 3 - 6 months of expenses in this account in case you may lose your job. If you have a very secure job or you can get a new job very easily, I would keep 3 months, however if you are self-employed or your job is unstable, I would keep 6 months of expenses.

Savvy Girl Money is a financial platform created to inspire women to reach their financial goals.

Q: I’m saving up to buy a home, but I’m worried that my credit score is too low. How can I increase my credit score and maintain it?

ASHIRA: The best way to increase and maintain your credit score is to start paying all your bills on time. A late payment can have a substantial effect on your score.

You want to keep your credit card utilization ratio under 30%. Your credit card utilization ratio is calculated by dividing your credit card balance by the total credit card limit. Make sure each individual credit card utilization is under 30%. Credit utilization makes up roughly 30% of your credit score, this makes it one of the most important factors in increasing or maintain your credit score.

You could also dispute negative or inaccurate items reported on your credit report. The best option is to write a letter to the three credit bureaus explaining why the information is inaccurate and provide evidence. Make sure to mail the letter certified mail with return-receipt requested as proof you sent the letter.

Why Adopting This Simple Money Mindset Could Change Your Life

Photo: Smith House Photography

“Did I really just do that?”

That was my immediate thought after hiring my first business coach a little more than a year ago. It was the most money that I’ve ever spent on myself—$7,000 to be exact—and honestly, the most money I had spent on anything in my life.

Putting that amount down was scary beyond belief. I thought I was crazy, but I was also done playing small. I was done thinking that I or my vision wasn’t worth it. I was done having a money mindset that dollar bills were scarce and hard to earn.

And I knew deep down that to get a return, I would need to invest. In myself. Pretty big jump considering that at the time I felt hesitant to spend $35 on a workshop. But this is what I realized: money is meant to be in a healthy cycle of giving and receiving, making and spending.

If one part of that cycle is blocked, like when you try not to spend money at all or don't ask for what you're worth, the whole cycle gets thrown off and creates a clogged financial situation that feels strained and uncertain. Maybe you’re good at spending money, but if you feel guilty about it, it blocks the flow just as much. Spending and investing your money should feel good. 

So here’s a thought that can turn things around…

"There's always more where that came from."

This mindset reminds me that whatever I spend or invest comes back to me in some way. If I end up paying more on a dinner bill split among friends, I’m convinced it'll come back to me in some way. If I invest in an online course, I believe a return will come back to me in some way.

But without some sort of initial investment, there can’t be a return. And if all or most of your money is going towards rent, food, and Ubers, with little to no personal development expenses, you’re missing out on one of the biggest ways you can change your life. 

As a life and business coach, I've worked with dozens of women who, at first, had a strong resistance to spending money on themselves, and here’s what one of them has to say about this:

“Working with my coach has confirmed that I am worth investing in financially, emotionally, and spiritually. I’m worth that investment, and because I’ve decided that I’m worth it, I’m reaping the benefits, and that investment is being returned to me in the form of clients, improved relationships, and a better version of myself.”

So, if spending money on yourself feels selfish or indulgent, ask yourself these questions: 

1. Are the financial decisions I’m making right now leading towards the most fulfilled version of myself? 

2. Are they helping me reach my biggest goals and dreams?

3. Are they amplifying my impact in the world along with my quality of life?

If you answered no to some or all of these questions, what could you invest in to help you grow and develop financially, emotionally, or physically? Maybe it’s by investing in the online therapy you’ve been thinking of, your own business coach, or a personal trainer that you’ve been dying to work with. 

If at least a portion of your disposable income goes towards those types of expenses, then you’re bound to have a more fulfilling life. So don’t hold yourself back by not investing in the things that’ll help you grow.

It’s not self-indulgence. It’s self-investment, which is arguably the best expense on your bank statement.

About the Author: Kimberly Lucht is a life and business coach who helps female entrepreneurs make their dream business a reality. Degree-trained in psychology, Kimberly has previously directed and grown start-ups that help women blast through limitations and go after their dreams. As a life coach now, she has helped dozens of women massively increase their income, productivity, and overall fulfillment in life through in-person workshops, online programs, and one-on-one coaching. Kimberly has been featured in Money.com, Thrive Global, along with a variety of other media outlets and she currently lives in New York City.

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This story was originally published on September 13, 2019, and has since been updated.

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10 Money Questions to Ask Yourself (So You Can Afford the Life You Want)

What is your relationship with money? Do you love to save and budget for the future, or are you all about enjoying that hard-earned money and prepared to go into debt for it? Either way, we need to get better at talking about it if we ever want to be better at managing it, and eventually having more of it. Especially when you consider that globally, women control upwards of $20 trillion in annual consumer spending. But sadly, when it comes to managing money and planning for their financial future, women aren’t as independent as you’d expect. A study found that more millennial women cede control to their husbands than women of older generations. Well, our new series, The Money Files is set to change all that by helping women become masters of their own finances so they can manage their money and their future.

Photo: Smith House Photo

Money. We all love spending it and we all want more of it, but saving it is the hard part. It’s not that we don’t want to see more money in the bank (duh) but striking a balance between saving for the future and living the life you want isn’t always an easy one to master. Too often, the pendulum swings farther into the spending camp and before you know it, you’re in the red and playing catch-up with the interest charged on your credit card debt.

Don’t worry, we get it. That’s why we asked Priya Malani, partner of Stash Wealth, to help us all get our finances in order. So, she sent us 10 important money questions to ask ourselves so we can bank that cash, pay off that debt, and live life like a millionaire (well, that’s the dream).

1. What can I realistically do to improve my income level?

Negotiation is never a bad idea as long as you’ve planned for it. Most managers plan for you to negotiate and so there’s wiggle room in your salary range. An annual negotiation is perfectly appropriate. Use the months leading up the conversation to prime your manager and document the proof that you’ll use when going in for the ask.

When is a negotiation not smart? When you go in cold and demand a raise. You’ll want to have data to support your request and documentation of your value-add (even if it’s qualitative, not quantitative). Stay factual and unemotional and above all, leave politics at the door.

Side note: IMHO, wanting to upgrade your lifestyle is not a strong reason to demand a raise. I was recently speaking to someone who was advised to use this strategy and as a business owner, I can say that not only would it not work, but it would leave me with a poorer opinion of the employee’s ability to #adult. Taking e-courses that are tangentially related to your field is an excellent way to demonstrate a commitment to increasing productivity and value and certainly supports your case for a raise.

2. What can I do to reverse bad credit and get my score back on track?

This may sound counterintuitive but start using a credit card and paying it off in full every single week or more often. This is one of my favorite FICO hacks (FICO is an abbreviation for the Fair Isaac Corporation, the first company to offer a credit-risk model with a score). It’s a quick and easy way to positively impact one of the most important parts of your credit score—your credit utilization ratio. Make sure to never charge up more than you can pay off.

If your credit cards are maxed, find ways you can pay down that debt ASAP. Consider selling stuff on FB Marketplace or via Poshmark, getting a roommate, cutting any unnecessary expenses that may free up cash that you can put towards your debt. And once you find the extra money, set up a regular debt repayment automation, so you don’t accidentally spend it.

If you want to explore other actions that may bump your score, download the CreditWise app (it’s free) which includes a credit score simulator. It shows you how different actions will impact your credit score before you actually commit to doing them. I’m a huge fan of this app and use it myself.

3. How much should I be saving for retirement?

There’s no easy answer here because retirement is not one-size-fits-all. You can start by using an online calculator to find out how much you’d need to put away to ensure you’ll replace a portion of your current income by the time you hit your desired retirement age.

Here are the main things you need to think about:

• How much you earn now?

• Is it just you in retirement or are you providing for someone else?

• At what age do you want to retire?

• How long do you expect your retirement to last (aka life expectancy—MORBID, I know!)

Once you determine these things, you’ll have the major inputs that will help you decide how much you should be putting away for the exact retirement you picture for yourself. Yes, it’s very hard to picture what your life may look like years from now, but I have three words for you: Playing. Catch-up. Sucks.

4. If I’m planning on having children, how can I ensure I have enough funds to take care of them on one income? When should I start saving for their schooling? 

A good exercise is to stash away 10-15% of your income today and see how it feels. That’s the percentage of your income that will go toward your children for basic day-to-day expenses (not including schooling). If you feel you can manage on 85-90% of what comes in the door, that’s a good indication that you have room for kids, financially.

When it comes to saving for school, it all depends on how much support you want to provide them. 100% of four years at a private institution? 50% of four years at a public institution? Once you have a sense of what your priorities are here, you’ll be able to back into your savings goal. Add that savings goal to the 10-15% I spoke about earlier and plan to live without that money—is it doable? If so, start saving as soon as possible.

Once again, it’s no fun to play catch up and the longer you wait, the more you’ll have to save to be on track for your goal.

5. What would happen if my spouse passed away? How can I plan for that?

This is a not-so-fun thing to think about and plan for but it’s pretty important to do so. When it comes to the financial support your spouse provides, the first step is to decide whether you feel dependent on your spouse's income or if you own property or have kids together. If so, life insurance may make sense. A life insurance person can help you evaluate how much coverage to obtain to ensure that if your spouse passes away, you wouldn’t have to change your lifestyle, in other words, you’d still be able to pay your mortgage and take care of your children in the same way you are now (monetarily speaking).

“Yes, it’s very hard to picture what your life may look like years from now, but I have three words for you: Playing. Catch-up. Sucks.”

6. When should I start investing money? And how do I know what to invest in?

This question deserves a whole article in and of itself. But the long and short of it is this. Investing is a way for your money to grow over time, not overnight. If you think investing leads to a “quick win,” you’re thinking about it all wrong. Wall Street loves to portray investing more like gambling but the fact of the matter is that the sooner you start investing, the more successful you’ll be because money grows with time and you need to be patient for it to work. 

As far as what to invest in, this is another area that Wall Street (and the media) portrays completely incorrectly. They make it seem like you're supposed to pick stocks and trade frequently when the opposite in fact is true—slow and steady wins the race. If you’ve ever heard of index funds, you’re on the right track.

Investing is a means to accomplish your financial goals and so technically, no one should tell you what to invest in until they know what you’re investing for. Goal-setting is the first step to knowing what to invest in.

7. How can I save for a house? What do I need to do?

Speaking to my point above, the first step to take is to commit to homeownership as a financial goal. If you’re in a relationship, you’ll want to have this conversation with your significant other. Define the timeframe in which you’d like to accomplish buying a home. Using sites like Zillow can help you evaluate what kind of home you’d like to buy and how much it will cost. Once you know what you’re aiming for, you can back into how much you’ll have to save for a down payment. About 20% is a relatively standard down payment, but many Millennials are opting for 10% down to get into a home sooner. This is totally fine as long as you have the cash flow to cover the mortgage with wiggle room. You don’t want to end up #housepoor.

8. How can I make a budget that still allows me to live the life I want? Are there any apps that I can use?

YNAB is a great app that helps you segregate your cash into different buckets so you can set money aside for your priorities first (rent, bills, student loan payments) and then blow the rest, guilt-free. At Stash, we call it reverse budgeting.

9. Should I have a financial planner? How do I find one that’s right for me and isn’t going to cost too much?

Financial planners serve many purposes, but their main job is to help you consider your short-, mid-, and long-term financial goals and then reverse engineer a game plan that puts you on track in the most cost-effective, tax-efficient way. Some people feel comfortable figuring this out on their own while others feel they might benefit from a guided conversation. A good financial planner can also serve as a mediator when you’re in a relationship and provide that unbiased outside opinion that’s sometimes the exact thing your spouse needs to hear from someone else. Some people feel they’ve done things right and use a financial planner simply for a second opinion from an experienced professional.

Finally, a financial planner knows that you may not know all the things you should be thinking about and makes suggestions to make sure there aren’t any holes in your plan. Stash Wealth is a virtual financial planning firm for H.E.N.R.Y.s™ (High Earners, Not Rich Yet) who are in their 20s and 30s and want to take their financial life to the next level. Stash Wealth is a fiduciary (no conflicts of interest) and charges a one-time flat fee to build you a customized game plan, called the Stash Plan®. Is the Stash Plan® right for me?

10. Do I have enough for an emergency fund? How much should I keep in that fund?

Unlike most financial professionals, Stash Wealth believes your emergency fund should be no more than three months’ worth of your fixed expenses (rent, bills, etc). Most personal financial gurus talk about six to 12 months, but we think that’s crazy for four reasons:

1. Your emergency fund is supposed to be your first line of defense, not your only line of defense.

2. Millennials are hustlers. If sh*t hits the fan, we’re at a time in our careers where we are able to reset our incomes pretty quickly (of course, you know your industry best)

3. We have so many other financial priorities. Waiting until we’ve saved up 6 months in cash, has us wasting precious time that could have been better used to help us achieve other financial goals.

4. That’s way too much money sitting in cash. As good as the online banks are (and that’s where we’d recommend you keep your Emergency Fund), your money is technically still losing value every year thanks to inflation. Millennials want their money to work harder for them. 

“If you think investing leads to a “quick win,” you’re thinking about it all wrong.”

-Priya Malani, Entrepreneur and Founding Partner at Stash Wealth

About the Author: Priya Malani is an entrepreneur and founding partner at Stash Wealth, a financial planning firm for H.E.N.R.Y.s™ (High Earners, Not Rich Yet). After years of working on Wall Street, Priya left to work with millennials, who are largely ignored by traditional financial firms. Stash’s clients are 20- and 30-somethings who make good money and want something to show for it. In addition to running Stash, Priya serves as the resident financial expert for Refinery29. She is a featured expert on numerous sites and speaks regularly at businesses and universities around the country. She appears regularly as a Millennial Money Expert on SiriusXM.

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This story was originally published on August 1, 2019, and has since been updated.

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5 Signs You're Not Being Paid What You're Worth

Photo: Christina Jones Photography

Make no mistake, trying to figure out how your salary stacks up against others in your field is a challenge. The unavoidable fact is: people get cagey when it comes to talking money. (Personally, I believe that being more open about these things will only help us close the pay gap, but that's an article for another day.) 

If you suspect you're being underpaid, getting a free salary report from Comparably or PayScale and scouring Glassdoor is a great start. But that's all it is—a start. To figure out whether you're being underpaid, you need to pay attention to the signs. Or, as career expert, bestselling author, and former editor-in-chief of Cosmopolitan (oh, and four other magazines), Kate White says, "You need to be a mercenary for information."

Here are the top five signs you're not getting paid what you deserve.

1. You Never Negotiated Your Pay 

I know this is difficult to hear because a large percentage of women don’t. But accepting this fact is the first step. "That's your first clue," says White. "It's a sign that you probably are being underpaid because often if you don't negotiate, you're leaving money on the table." Now, if you didn't negotiate, all is not lost! Make a commitment to yourself to never take a job without negotiating again. 

2. You’re Doing More, But Not Being Paid More 

This one might sound obvious, but employees let it slide all too often. Just recently a friend's workload was effectively doubled without a plan for a salary increase or title change. When she went to her manager to make a case for a salary bump, he threatened to simply take away her increased responsibility. Don't fall for this. If you're doing significantly more than the role you were hired to do, you deserve appropriately increased compensation. And if you can't get it at your current company, go get it elsewhere. 

3. It’s Been Two or More Years Since You Got a Raise

"Here's the problem: the market rate increases faster than the rate within a company where people may be getting 3% raises," says White. "I saw it happen to people who worked for me at different times, and as the boss, you felt bad, but often the company tied your hands.” 

“When the new person was coming in and was able to negotiate for a certain salary, sometimes it was better than people on the same level,” she explains. “But again, a company won't necessarily let you say, ‘Hey if I bring this person in at X, I hate the fact that this other person is only making Y.’ So if you've been at a company for awhile, you can practically bank on the fact that you are not doing as well as people coming in from the outside."

4. You Find Out the Salary of Someone in a Comparable Position  

This is less a "sign" than a fact, but it's worth mentioning. Again, talking to people about salaries can be tough, but there are ways to get the information you need. 

"You could ask a mentor or someone who used to work at your company and has since moved on," says White. "And maybe you could say it in a bit of a cheeky way, like 'If I told you my salary, what amount would make you think, 'Oh my God, she's an idiot?’ You're never going to get someone who left, especially in a lateral move, to tell you what their salary was. But I think if you ask in that way, sometimes people like to answer those types of questions."

"Or find people who have comparable jobs in similar companies,” suggests White. “Without asking what they make, you can say something to them like, 'Would you mind me asking you the range of X position at your company? I love my company but I'm just curious what the range is elsewhere.' I think people will often answer that as well."

However, proceed with caution. 

"I've been in situations where people found out salaries by snooping around or having conversations about it in the office, but if your boss finds out it really makes you look small," says White. "So I would say that's something to avoid."

5. You Have a Gut Feeling 

I have found this to be true in my own experience, and White confirms to trust your gut. If after a few months of watching and listening, you have the sneaking suspicion you're being underpaid, you probably are. 

"I think a lot of times our gut feelings about things like this are absolutely accurate," says White. "It's almost as if you're picking up clues on a lot of different subliminal levels. Maybe a guy on your same level invited people from the office over for drinks and you saw his apartment and realized, 'Wow, that's pretty nice.' Or you notice the vacations he takes. And sure, maybe he's got a trust fund. But all those little things that happen—the way your boss might be evasive, the spending habits of people on your level—all those things end up being almost imperceptible clues that on some subliminal level make your stomach twist a little bit. And you just sort of know.” 

"It could be from things people inadvertently say, but the point is that it's not just one thing—it's a combination of those various, vague little things, and what they add up to that speak to you on a subliminal level,” says White. “And a lot of what they say about intuition is connecting the dots and I think you should connect the dots in this case and listen to your gut."

For more advice from Kate White on negotiating and more, pick up a copy of her tell-all career bible, “I Shouldn't Be Telling You This: How to Ask for the Money, Snag the Promotion, and Create the Career You Deserve.”

Written by Kelsey Manning for Levo. 

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This story was originally published on April 19, 2017, and has since been updated.

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“Always Have a Counter Offer”—and More Money Advice From Our Equal Pay Day Summit

Photo: Smith House Photo

Equal Pay Day symbolizes how far into the year women would have to work, on average, in order to match what men earned the previous year. In other words, women have to work an extra 83 days into 2021, on average, in order to get paid the same amount of money a man made in 2020. But the keyword here is “average.” 

When you break the gender pay gap down by race and ethnicity, it's even wider for Black women, Indigenous women, and Latina women. To put it into perspective, this year Equal Pay Day for Black women is on August 3rd, on September 8th for Indigenous Women, and on October 21 for Latinas. Although the gender pay gap is narrower for Asian American and Pacific Islander women, AAPI Equal Pay Day—which fell on March 9th this year—was still 68 days further from December 31 than it should be.

At our Equal Pay Day Summit presented by Mastercard, we hosted a thoughtful discussion on pay equity with Blake Gifford, an attorney and content creator, Kameron Monet, an attorney and content creator, Kelly Joscelyne, the chief talent officer at Mastercard, and Brenda J. Schamy, partner and co-founder of DiSchino & Schamy, PLLC.

ICYMI, we’ve jotted down all the mic-drop-worthy moments for you, but if you’re still experiencing FOMO, you can join C&C Insiders to get access to all of the workshops, mentor sessions, panels, and keynotes from our Equal Pay Day Summit and all of our past events. (Yes, you read that correctly!).

On knowing your worth…

“If you don’t know your worth (and you should), then research it. Research your value so that you truly know your worth.” — Kelly Joscelyne

“Ask other people. No one wants to talk about money, no one wants to talk about pay. Let's talk about it. Let's bring it to the forefront.” — Kameron Monet

“Employers bank on you not talking about [your salary with your coworkers], because it helps them to hide their hands. Talk about it.” — Blake Gifford

“Make friends at work. Networking is everything. Chase relationships and the checks will come.” — Brenda J. Schamy

On negotiating your salary…

“Negotiating is not a negative it’s a healthy business practice.” — Kameron Monet

“Come in first and come in firm. It anchors the conversation in your favor.” — Blake Gifford

“Know your worth and always have a counter offer.” — Kelly Joscelyne

“Be creative in your negotiations and think outside the box. There's no such thing as no deal if you want it.” — Brenda J. Schamy

On cultivating your dream career…

“You belong in every room you are you're in.” — Blake Gifford

“What’s for you is for you, no matter how much value you give to other people it’s never going to interfere with what’s for you.” — Kameron Monet

“Do anything you want. Reach for it.” — Kelly Joscelyne

“Try it.” — Brenda J. Schamy

On the best money books to read…

“The Confidence Code: The Science and Art of Self-Assurance—What Women Should Know by Katty Kay and Claire Shipman.” — Kelly Joscelyne

“You Are a Badass at Making Money by Jen Sincero.” — Kameron Monet

“Money Diaries by Lindsey Stanberry.— Blake Gifford

“Wise Guy by Guy Kawasaki.” — Brenda J. Schamy

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Everything You Always Wanted to Know About Cryptocurrency (But Were Too Nervous to Ask)

Photo: ColorJoy Stock by Christina Jones Photography

You’re not alone if you find the concept of cryptocurrency daunting. When someone mentions the topic of cryptocurrency or starts talking about all things Bitcoin, you might find your mind wandering. So, what is digital money? Where does its value come from? Is this something I should be investing in? How risky is it? And what exactly is the blockchain? And we don’t blame you. The idea of digital currency that isn’t managed by a bank or government seems like a plot point straight out of “The Matrix.”

So, to help break it down, we tapped Ayelen Osorio, the content and community manager at Netcoins, a Canadian cryptocurrency exchange company. “A big part of my job is learning about cryptocurrencies and bringing women along that journey with me,” Osorio tells Create & Cultivate. “A year ago, I had no clue what cryptocurrencies were but in a surprising twist of events, I became fascinated by them.” (Which is something that should give hope to all of the cryptocurrency-curious novices reading this right now!).

Ahead, she answers all our most pressing questions about cryptocurrency, from what it is to where it gets its price from and whether or not it’s a risky investment.

Most people have heard of cryptocurrencies, like Bitcoin, but might not totally understand what they are—Can you give us a brief overview?

Cryptocurrency is digital money. It’s money like the dollar or euro or yen. But it exists only in a digital form and is not managed by central authorities like banks or governments. 

What this means is that we aren’t reliant on something like the bank if we wish to access, withdraw or move our money (Bitcoin). This is something called “decentralization.” It allows someone to send Bitcoin from one part of the world directly to another in a way that’s instant, secure, and with minimal fees. 

You can also think of Bitcoin as a store of value like gold. While Bitcoin, like gold, isn’t commonly used to buy goods and services on a daily basis, it still holds value because of its limited supply and because of the difficulty of producing. Many refer to Bitcoin as “digital gold”.

We’ve gone through many iterations of money throughout history from seashells to cattle, gold and other precious metals, to paper money and plastic money (a.k.a. credit cards). For many Bitcoiners, cryptocurrencies like Bitcoin are the future of money. 

Where does cryptocurrency get its price from? 

Cryptocurrency prices are set in the same way that the price of real estate is set by the supply and demand of the market. Then there are platforms and sites that aggregate these market prices to pull a global price average—that’s the number we use when we say “the price of Bitcoin is $50,000.” 

What makes cryptocurrency unique? 

A unique characteristic of Bitcoin is that it has a limited supply of 21 million coins (remember these aren’t physical coins). In theory, this scarcity would suggest that Bitcoin is protected from hyperinflation and therefore should hold value in the long-term. 

This stands in stark contrast to the dollar which is unlimited in supply. Governments are known to be willing to print an unlimited amount of money, which causes long-term inflation. That’s why the dollar keeps losing buying power over time; that sandwich that cost $1 about 15 years ago, today costs $5. Inflation is keeping us poorer. 

It’s precisely because of this that Tesla recently bought $1.5 billion worth of Bitcoin, why the Winklevoss Twins (investors and entrepreneurs) believe that the price of Bitcoin will reach $500,000, and why we’re seeing more and more investors buying Bitcoin. What they all have in common is that they believe Bitcoin is a safe haven and a valuable savings technology during the unprecedented time that has been the pandemic. 

What are the risks of investing in cryptocurrency?

To start, all forms of investments carry with them an inherent level of risk so you should never invest more than you’re willing or ready to lose. 

Cryptocurrencies like Bitcoin are known to be volatile and the price fluctuates quite a bit on a day-to-day basis. But many Bitcoiners see this as the growing pains of a new, better financial system being put in place. 

It’s important to zoom out and look at the bigger picture. In 2010, one Bitcoin was worth less than $0.10. Fast forward 11 years, in 2021, one Bitcoin is worth over $54,000 (at time of writing). This is partly why Bitcoiners are willing to withstand volatility in the short-term because it trends in an upward direction in the long-run.  

In terms of hacking and theft, you may remember when earlier this year a 17-year old hacked celebrities’ Twitter profiles and asked for Bitcoin donations. The media said that Bitcoin got hacked. But Bitcoin didn’t get hacked, Twitter got hacked. 

The Bitcoin network (known as the blockchain) has actually never been hacked. It’s almost impossible to hack because the network is run among thousands of computers spread around the world. So a hacker can’t find a single, central point of weakness for an attack. This is why the technology is revolutionary. Most of the hacks we’ve heard about have been caused by human error like sharing passwords or allowing other people to manage their funds.

What are some investment tips you can offer to women wanting to start out? 

A common misconception is that you have to buy one entire Bitcoin. But you can actually buy fractions at as little as $10, $100, $1000. The great thing about cryptocurrencies is that you can start out small. For example, 0.5 BTC, 0.1 BTC, 0.01 BTC. This means that even if you’re relatively risk-averse, you can still test out the crypto waters with just $10. This is unlike stocks, where you have to buy the stock at its full price. 

The best way to learn about crypto and start out is to experience it firsthand. Create an account, see how easy it is to fund with an e-transfer, and make your first crypto purchase with just $10. It’s a much simpler process than many imagine it to be. 

Women looking to diversify their portfolio could benefit from investing in non-traditional assets (like cryptocurrencies) alongside their traditional assets (stocks, real estate, etc). But similar to stock trading, you need to be comfortable with a certain level of risk.

Generally speaking, I would say:

• Do your own research.

• Test your learnings with your friends, family, mentors so you can find loopholes in your thinking and grow from it.

• Never invest more than you’re willing to lose.

• Don’t time the market. Time in the market beats timing the market.

• Aim for a dollar-cost average. Buy a set amount of crypto each day, week, or month (up to you).

• Stay patient and disciplined. 

Investing in cryptocurrencies probably isn’t a great fit for those that are looking for quick and guaranteed profit. Cryptocurrencies are volatile, so it does require some patience and time to reap the benefits, but this is also true about stocks and real estate.

“A big part of my job is learning about cryptocurrencies and bringing women along that journey with me.”

—Ayelen Osorio, Content and Community Manager at Netcoins.

About the expert: Ayelen Osorio is the content and community manager at Netcoins. She has a natural knack for writing and community building. Ayelen brings years of experience in communication, marketing campaigns, and partnerships. If she’s not writing, she’s out hiking.

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This Entrepreneur Is Bringing Latin America’s Best-Kept Skincare Secrets to the Masses

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Anita Calero Courtesy of Giovanna Campagna

Giovanna Campagna, a born-and-bred New Yorker, was visiting her mother’s native Colombia when she had an “aha” moment. “I thought to myself, here I am in the most biodiverse region in the world surrounded by the most incredible nature,” Campagna tells Create & Cultivate. “Moreover, everything I’ve learned about beauty is from the Latin women in my life and their rich beauty culture. How are there no brands speaking to this?” Given her extensive experience in fashion media and marketing, a growing desire to connect more deeply with her Colombian heritage, and a vast network of contacts to tap into, Campagna set out to fill this glaring gap in the market. The result is Joaquina Botánica, a clean skincare line that celebrates Latin America’s powerful botanicals as well as its deeply rooted beauty philosophies.

Campagna launched the brand with a single product—the Orquídea and Vitamin C Hydrating Glow Oil, a facial oil that boasts a potent blend of superfruits (including cacay, camu camu, and maracuja) and antioxidant-rich extracts from Colombian orchids—with plans to add two more products in 2021. Although Campagna started her career in fashion at Vogue and W Magazine and later co-founded a marketing agency to help Latin American fashion designers expand their reach to international markets, in many ways, her shift from fashion to beauty was generations in the making. “My great-great-grandmother founded one of the first apothecaries in Cali, Colombia in 1875,” says Campagna. “I actually named the brand after her as I am so inspired by her story. Celebrating vibrant, passionate women, and supporting female entrepreneurship is a core pillar of the brand, so Joaquina made the perfect namesake.“

Ahead, the beauty entrepreneur fills C&C in on how she took her idea from concept to company, including how self-funding her business has pushed her to be more creative and why she believes paying yourself is something to be proud of.

What inspired you to launch Joaquina Botánica and pursue this path?

When I had my aha moment, I was actually working in fashion. I started my career at Vogue and W Magazine and went on to co-found my first business in 2014, an agency dedicated to launching Latin American fashion brands in the international market. I grew up in New York but always had an inclination to get closer to my mother’s Colombian roots. Around that time, Colombia was experiencing a kind of renaissance and there were incredibly talented designers coming out of the region. However, the U.S. and Europe were still the hegemonic centers of the fashion world and it was a difficult world to break into. I realized that I could use the connections I had built at Condé Nast and in New York to help these brands succeed on the global stage and set out with my partner to do so. At the same time, I loved that my work enabled me to connect more deeply with my Colombian roots and celebrate them with the world. 

It was through that journey that my idea for doing something similar in beauty began to crystalize. I was spending more and more time in Colombia, while also becoming increasingly interested in clean beauty and wellness. My lightbulb moment came when I thought to myself: Here I am in the most biodiverse region in the world surrounded by the most incredible nature. Moreover, everything I have learned about beauty is from the Latin women in my life and their rich beauty culture. How are there no brands speaking to this? So I set out to create a line that would share the region’s incredible botanical beauty and its deep-rooted beauty philosophies. We launched with one product—the Orquídea + Vitamin C Hydrating Glow Oil—and are releasing two more this year. 

Although I did not start out in personal care, I have family history in the industry. My great-great-grandmother founded one of the first apothecaries in Cali, Colombia in 1875. Her husband passed away when they were very young, and she ran the business on her own until her son was old enough to take over. I actually named the brand after her as I am so inspired by her story. Celebrating vibrant, passionate women, and supporting female entrepreneurship is a core pillar of the brand, so Joaquina made the perfect namesake. 

You decided against venture capital and opted for the self-funded route instead. Talk us through your bootstrapping process. Why did you self-fund and would you recommend that route to other entrepreneurs? Is venture capital in the future for Joaquina Botánica?

I chose to self-fund because I established that I had enough resources to develop and produce our first products, achieve proof of concept, and meet my growth targets for the first few years. There are definitely pros and cons to bootstrapping and going out on your own, but I appreciate that I can maintain complete ownership and control of the company and grow purposefully in a way that is true to my vision. 

Deciding which route to take is extremely personal to your situation, goals, and the capital requirements of your business, so it is difficult to say what I would recommend. What helped me to decide was listening to the experiences of other entrepreneurs. The narratives of those who bootstrapped resonated with me more; they were scrappy, purposeful, and creative with their opportunities and capital allocation. They built profitable businesses that felt true to themselves and their core mission. Without a budget for hiring, they started out managing every aspect of their business, learned each area intimately, and were even more equipped to delegate when the time came. That being said, I have founder friends who do not find these stories appealing at all, and have opted to look for funding from the outset! 

Bootstrapping has definitely made me extremely purposeful with my spending, and I believe that a lot can be achieved by being resourceful. Having a more limited budget has pushed me to differentiate our brand and create something special in ways that more money can’t necessarily buy. I believe this has led to a more authentic product and voice than what could have been. 

I would not rule out fundraising in the future, but it would need to be with the correct strategic partner who would contribute more than just financial support to the business. 

What advice do you have for people who want to take the leap to start their own business but are worried about the financial risk?

If you can start developing your business while still in a paid role or freelancing, I think it is wise to do so. Mentally (and financially) it can be a relief to have a stream of income while you are only seeing money go out the proverbial door on start-up costs. You may also find that you have time on your hands while things are in gestation. At least in beauty, developing original products takes quite a long time (it took us roughly two and a half years), and I sometimes found myself with not much to do while waiting for things to come together.

I did leave my previous role to start the business, but I was pregnant and gave birth to my daughter during this time, so it worked out perfectly. I dedicated my free hours to my personal life, and by the time the business launched and I began working “full-time” again, she was about eight months old (highly recommend this timeline for any moms/soon-to-be moms out there!). Had that not been the case, I definitely would have had time for other projects for at least the first year of product development, and I think I would have appreciated it. Of course, some businesses may take up all of your time from the get-go, so it takes some analysis of your specific situation. 

What was your first big expense as a business owner and how should small business owners prepare for that now?

There were several large expenses at the beginning, from formulation costs to investing in a product developer (fairly predictable costs for a skincare brand). However, one of the first large expenses that I was not expecting was the legal fees for securing our trademark. I was not fully aware of this before, but once you narrow down potential brand names, you need to enlist a trademark lawyer to conduct extensive research on each to make sure that there are no conflicting trademarks or brands out there. I think about four of the brand names I wanted came back with conflicts after a search, and each round was a financial outlay. When I finally landed on a name that the lawyers deemed viable, I faced additional fees for the trademark application. That first application was actually denied, so I incurred those costs twice! 

If you feel that owning the trademark is important to the value of your business—as it definitely is for consumer products like beauty—I would recommend budgeting for this from the get-go. You can begin by speaking to trademark attorneys and finding one who can provide an estimate of fees that fits within your budget. 

What are your top three largest expenses every month?

Inventory, PR, and future product development. 

Do you pay yourself, and if so, how did you know what to pay yourself?

I do not pay myself yet but plan to begin by the end of our second year in business. 

Would you recommend other small business owners pay themselves?

It is hard to say, as it depends on so many factors. For VC-funded brands, it is common for the founder to receive a salary. If you have a service-based business, it also may be easier to pay yourself sooner as you are lighter on assets and do not have to reinvest in expenses like inventory. It also depends on your goals for the company. If your goal is to sell your business after a short time horizon, you may not prioritize a salary and be even more focused on growth to reach that payout. 

For me, it is important to factor in my salary to our financial goals, as I plan to run the business for the long term. I know that it will be incredibly rewarding to live from the work that I love, and it will only make it more viable for me to put all of my energy into the business. However, I am initially prioritizing our growth and reinvesting our revenue until we reach certain milestones. 

Photos: Anita Calero Courtesy of Giovanna Campagna

Where do you think is the most important area for a business owner to focus their financial energy and why?

Maintaining a healthy cash flow is crucial; more so than profitability when you are starting out. Focus less on breaking even at first and more on your ability to generate positive cash flows. 

Did you hire an accountant? Who helped you with the financial decisions and setup? Are there any tools or programs you recommend for bookkeeping?

I work with an accountant on my tax returns and currently manage the monthly bookkeeping myself. I recommend using Quickbooks for bookkeeping. 

I was actually pursuing an MBA at Columbia Business School at the time I committed to launching the business and used virtually every resource available to establish my financial model. I took several courses in entrepreneurship and conducted an independent study with a professor, during which I defined the business plan and launched into product development. 

I also did extensive research by speaking to more seasoned beauty entrepreneurs, founders, and friends with applicable experience to understand the costs and where they experienced the best return on their investments. 

What apps or software are you using for finances? What’s worked and what hasn’t?

Currently, I am just using Excel, which has worked well for me. 

What are some of the tools you use to stay on top of your business financials? What do you recommend for small business owners on a budget?

Our online store is on Shopify and they provide a great suite of analysis tools that help you track how sales are going as well as manage inventory. 

How did you know you were ready to hire and what advice can you share on preparing for this stage of your business? 

Currently, I am still the only full-time employee. I do feel like I have a “team” because I work with several outside consultants and freelancers in product development, formulation, graphic design, etc. Once it becomes clear to me which area of the business needs more support in order to keep achieving our growth targets, I will begin the search for someone with that expertise. I am happy to have a “lean” operation while I learn more about our customer and market and the best way to connect with them.

Do you think women should talk about money and business more? Why? 

Definitely! I think being fully aware of your financial situation, both personally and professionally, is hugely empowering. Money can be tied up with a lot of emotions for some. When I was younger, I sometimes avoided looking closely at finances out of some kind of fear. But I have found that normalizing conversations about money, knowing your situation and your options, actually makes you feel very empowered. Numbers don’t lie, which can actually be very comforting in a world with a lot of grey areas! 

I have also come across some women who don't necessarily feel comfortable saying that they are going into business with making money as a primary goal. I have, personally, come to see business as an incredible way of exchanging energy with the world and creating value for our communities and others. Receiving financial compensation as part of that, which can, in turn, enable you to support yourself and your family, should be something we are proud of. 

Do you have a financial mentor? Do you think business owners need one?

I often ask fellow entrepreneurs for advice, but ultimately make most financial decisions independently. As I don’t have a partner, I often talk through them with my husband, who is a wonderful sounding board. 

What money mistakes have you made and learned from along the way?

A great piece of advice I received is to always get three quotes for a job before moving forward. Early on, I ended up paying way more than I needed to by going with the first vendor that I came across.

What is your best piece of financial advice for new entrepreneurs?

Arm yourself with knowledge. Talk to anyone and everyone who can give you insight into your industry. Make projections of your expenses to the best of your ability, and then add a 20% cushion to that figure.

Photo: Anita Calero Courtesy of Giovanna Campagna

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Buzzy Wellness Brand Whimsy Official Has Thrived During COVID—This Pivot Was Key

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Courtesy of Whimsy Official

When Jasmine Lee and Victoria McAbee first launched their business, it looked very different than it does today. In 2018, the college friends turned co-founders pooled their cash, tapped their friends and family, and took on a small amount of credit card debt to jump-start a mobile matcha bar. “Picture two 23-year-old girls hauling around a 7x14 foot concession trailer hitched to a black Ram truck,” Lee and McAbee told Create & Cultivate. “It’s so crazy to think that used to be our lives! It’s actually laughable now.”

After just one year, their mobile matcha bar was so successful they finally had the funds to trade in the trailer for the brick-and-mortar café they’d initially envisioned for their enterprise. Then, COVID hit. In the wake of the pandemic, Lee and McAbee, like so many small business owners, made the tough decision to permanently shut their doors and pivot to digital instead. Now, they’ve turned Whimsy Official into a thriving e-commerce brand, offering their signature Ceremonial Grade Matcha and Glow Getter Collagen Blend, as well as their recently launched Halcyon Botanic Serum, which marks the wellness brand’s first foray into skin-care.

Ahead, the co-founders tell Create & Cultivate all about how the burgeoning wellness brand has pivoted its strategy due to COVID, why going DTC has been key to its success, and the pitfalls of investing too much money in social media marketing too soon.

How did you fund Whimsy Official? What were the challenges and what would you change? Would you recommend that route to other entrepreneurs? 

We’ve been bootstrapping since day one and we’re still bootstrapping now! If we were to find the right investor, we may consider giving up equity, but having full control has always been important to us. As we strive to really position our company the way we want it to be seen and understood, it makes all the financial logistics and planning well worth it.

When we first launched our enterprise, our business looked much different than it does now. For context, we launched in 2018 as a mobile matcha bar called Whimsy. Picture this: Two 23-year-old girls hauling around a 7x14 foot concession trailer hitched to a black Ram truck. It’s so crazy to think that used to be our lives! It’s actually laughable now. That initial concept cost us around $20,000 to start up, and the capital was raised between our own two bank accounts, family and friends, and a small amount of credit card debt.

We would absolutely recommend bootstrapping as plan A. Not only does it teach hands-on financial management skills and resourcefulness, but it also ensures that you’re building something scalable. Going too deep at once (especially for first-time entrepreneurs) can be detrimental for a number of reasons (i.e. too much going on without proper systems and infrastructure to manage it, lots of debt without any plan for ROI, etc.).

Do you pay yourselves, and if so, how did you know how much to pay yourselves?

As of right now, we aren’t paying ourselves. We’re only five months into this business! Although we were fortunate to keep a large portion of our customer base from the mobile matcha bar, launching Whimsy Official has been equally as challenging as starting a brand new business. All of our profit is being pumped back into marketing. 

Would you recommend other small business owners pay themselves? 

It absolutely depends on the industry you’re in and what your overhead and sales look like. Also, it depends on how much money you have in your cash reservoir and whether or not you can budget a salary for yourself. For e-commerce brands, your overhead is typically a bit higher and your profit margin is lower as opposed to operating a service-based business where you keep the majority of your profit (if you play your cards right). So all things considered, it’s very contingent on the situation!

Where do you think is the most important area for a business owner to focus their financial energy and why?

Before launching, branding and product development and/or testing. Brand identity is so crucial in order to visually connect with your audience and ensure that your brand experience is unique and compelling. If your brand doesn’t look the part, it can be harder to secure press, certain retailers, and more. Equally as important as branding is having thoughtful, well-researched products (and third-party tested if needed). Bad products never win the race, but great products always stand the test of time.

After launching, I think that hiring a publicist is an excellent investment, especially if you’re looking for longevity of brand exposure. A lot of brands sink money into Facebook and Instagram ads right away, but that can do more harm than good. Ads can definitely make you a quick buck, but each sale isn’t guaranteed to be recurring, nor is it helping to develop your community. Again, playing for longevity is key! 

What was your first big expense as a business owner and how should small business owners prepare for that now?

Rent! We’ve had our own office space since late 2019, but we decided three months before launching Whimsy Official that we wanted to fulfill all of our own products. No labs, no shipping centers, no third-party manufacturers. It’s imperative to us that we maintain full quality control over sourcing, supply chain, fulfillment, and shipping. That way, we can say with certainty that our company is ethical and sustainable and that we know exactly what ingredients are being used in our products.

To be honest, there really is no way to prepare other than to define a clear plan and start saving money. Had we not had money in the bank, we wouldn’t have been able to move into a new office and buy the supplies we needed to build out our own production facility. Of course, loans and investments are both options, but from our experience, that’s what worked!

What are your top three largest expenses every month?

1. PR

2. Rent for our office and facility

3. Product samples/giftings (we send out crazy amounts of free products to retailers, editors/contributors, and influencers each month!) 

How did you know you were ready to hire and what advice can you share on preparing for this stage of your business? 

With our other business, we had several employees and we just weren’t ready for it! In most cases, over-preparation is valuable, but not when it comes to hiring. It’s best to scale and hire as you grow. Currently, we have no employees at Whimsy Official. It’s just us and our PR team who works as an independent contractor.

Photo: Courtesy of Whimsy Official

Did you hire an accountant? Who helped you with the financial decisions and set up? Are there any tools or programs you recommend for bookkeeping?

We have an annual accountant who helps us file our LLC taxes, as well as our personal taxes, but we do our own month-to-month accounting. We’re lucky to have a pretty manageable amount of expenses, so it doesn’t feel terribly overwhelming. We’re a big fan of spreadsheets! Or any Google document for that matter!

The best tool you can have for learning accounting is to watch YouTube videos on bookkeeping. Learning your way around a pro forma (and how to create one for yourself) is a valuable skill. It really makes you feel like you have all your numbers in check!

What apps or software are you using for finances? What’s worked and what hasn’t?

We originally began working with Quickbooks but decided that we much preferred creating our own pro forma via spreadsheets. It felt more flexible, plus it’s free!

What are some of the tools you use to stay on top of your business financials? What do you recommend for small business owners on a budget?

We like to practice planning for the future, but acting in the now. It’s okay to want to dream big and plan for new things, but sometimes, it’s not always the best thing financially. We encourage small business owners to focus on what you do have instead of what you don’t have. This means to really emphasize making your current offerings as best as they can be with the resources you have, then scaling as you grow. Timing is everything, and money should be treated with purpose! 

Do you think women should talk about money and business more? Why? 

Absolutely! Money is—plain and simply put—just a part of life. There’s so much stigma surrounding the topic of money, but money is just a currency that comes and goes. We believe in using our money and knowledge to help other women rather than using it as an elitism tactic to put them down.

Do you have a financial mentor? Do you think business owners need one?

We don’t! But if we could go back to 2018 when we opened the first edition of our business, we totally would have. 

What money mistakes have you made and learned from along the way?

Well, for starters, when we hired those several employees that I mentioned earlier… huge mistake! Enormous mistake! Granted, we had a plan for all of those hires, but unfortunately, it didn’t pan out as we had hoped. Had we been more seasoned business owners, we do believe that that mistake would have avoided altogether.

What have been some of the hardest money lessons you've learned along the way?

1. Money spends quicker than you’d expect, and you always need a budget mapped out before you spend a single cent.

2. You have two choices: to take the risk or to not take the risk. Always take the risk if it feels right in your gut.

What is your best piece of financial advice for new entrepreneurs?

While it's important to be logical with your money, it’s also important to remember that money is no good just sitting around. It’s meant to be circulated. If you have a great idea and the funds to get it started, take the plunge! If you don’t, you may have a lump of cash sitting in the bank, but the “what ifs” may not be worth it. Listen to your intuition and practice staying in tune with it.

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How to Feel Confident in the Prices You Charge

Photo: Color Joy Stock Photography

When I first started my business in 2016, I wanted to do everything for everyone. I was so concerned about growing a solid list of clients that I didn’t even think to take a second and reflect on the prices I was charging. That first year of business, I loved creating “special offers” to entice prospective clients. The point when I realized my special offer frenzy was a real issue was when I decided to offer 10 hours of support for $50! Don’t do the math, it’s as awful as it sounds. As you might have guessed, I ended up with a bunch of clients, but were they ideal clients who actually valued my work and input? Definitely not! It got to the point where I didn’t even care about the work I was doing for my clients. I had burned myself out to a crisp.

Upon realizing I had reached the point of burnout, I reflected on what, if anything, had driven me to this point. I mean, I could truly say I loved my work and what I was doing for a living. So what was the issue then? In reflecting, I realized I had only myself to blame. By offering these extremely low, discounted offers, I was essentially discounting myself of quality of life. And isn’t a better quality of life the reason why many of us decide to start our own businesses anyway? At that moment, I realized I had to flip my mindset around the prices I was charging. I had to do the thought work necessary to recognize my own biases or mental roadblocks and overcome them in order to truly feel confident in charging the prices my work was worth.

There are six mental blocks that I believe keep you from feeling confident in the prices you charge. Hopefully, you’ll see yourself in one, or perhaps even a few of these. But once you recognize what’s holding you back, the next step is to think of ways you can actively flip your mindset around that mental block. I’ll give a few thought starters to help you with the thinking process.

#1: You’re stuck in an employee mindset when you should be the CEO.

Stepping into a business owner mindset begins with stepping into the role of captain. Take ownership! When people ask you, “What do you do?” Answer with, “I’m the founder/CEO/owner of X business.” Don’t minimize what you do. When going about your workday, don’t get so caught up in “doing the work” and “producing,” which is an employee mindset, and think of your workday from the perspective of, “Is what I’m doing right now helping move my business forward?” You are the captain of your ship, and you decide what is worthy of your time, energy, and resources.

#2: You’re stuck in a lack mindset when you should think abundance.

Your ideal client is looking for you. Don’t get stuck in the mindset that there aren’t enough clients or there are already too many people doing what you do. Come to interactions with potential clients with confidence and an abundance mindset. If a client doesn’t decide to sign with you, it wasn’t meant to be. It doesn’t mean the next person you meet with won’t be your next long-term client.

#3: You’re viewing money as a dirty word versus money as a possibility.

Practice cultivating a more positive money story. What do you believe about money? Do you believe the phrase, “I’m bad with money?” If so, you need to start shifting your thoughts around money and practicing looking at it in a different light. Allow yourself to begin to rejoice in the fact that money is all around you. Tell yourself daily: “Money is all around me.” It may sound ridiculous, but believe me, it can really help.

#4: You’re stuck in this belief that, to be an expert, you need to know the answer to every single question.

Now that’s just impossible. Think about it. In the online space, you are learning forever and constantly growing, as it runs fast and changes quickly. It’s impossible to know everything. An expert knows the system and platform well enough to find the must-know information. You just have to know more than your client. Your purpose is to save them the time spent in finding it themselves. Stop placing unachievable standards on yourself. 

#5: You’re “focusing” on too many things.

When first starting out, it’s easy to fall into the trap of being a “jack of all trades,” but it's better to focus on your skillset. Become a master of your expertise and hone in on your superpowers. When business owners are excellent at their specific thing, people are willing to pay for them to stay in their zone of genius. They understand your expertise and skillset costs money. Don’t lead with a long laundry list of bullet points of deliverables. The clients you are supporting are visionaries. They are looking for outcomes. The things that come easy for us don’t come easy for others. Know you are great at that. Your expertise will shine through.

#6: You’re not going into sales calls prepping as if they are already your client.

Before meeting with any potential client, you have to do the necessary research and prep work, otherwise, you’re leaving money on the table. Nobody wants to work with someone who isn’t looking to support them long-term. They want someone who will be there in the long-run to support their business goals. Clients will be impressed you did your research. Show you’re invested in helping them meet their goals. Are you potentially sabotaging yourself from working with more clients because you’re not going into meetings with the proper research under your belt? Just something to consider. A sales call is also the prospective client’s first impression of you, so you want to present yourself as a service that is already delivering on the prices you charge.

I hope by listing out these mental blocks it will help you, as it did me, to overcome whatever is holding you back in feeling confident with the prices you charge. It’s 2021 ladies. Let’s move forward being compensated as such!

Photo: Courtesy of Tasha Booth

About the Author: Tasha Booth is an agency owner, coach, and podcaster. She is the founder and CEO of The Launch Guild, a course launch support and digital marketing implementation agency supporting established coaches and course creators with course and podcast launches, operations and systems management, and content management and repurposing. Her team is over 20 members strong and works together to support their clients in being able to focus back onto their zones of genius.

Additionally, she mentors virtual support pros (VAs and OBMs) who are passionate and ready to grow their businesses while living life on their own term and is the host of the “How She Did That Podcast,” a podcast for virtual assistants, online business managers, and project managers to learn business and tech tips. Tasha is an Air Force wife to her husband Scott, stepmom to Grace and Meredith, and work-from-home dog mom to Stanly and Boomer. In her spare time, she watches true crime tv, sings karaoke, and tends to her organic vegetable garden.

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How Brown Girl Jane's Co-Founder Turned Burnout Into a Six-Figure Wellness Brand Beyoncé Loves

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Courtesy of Tai Beauchamp

Tai Beauchamp knows a thing or two about burnout. Before she became the wellness entrepreneur she is today, she built an impressive résumé in publishing, including stints at Harper’s Bazaar, O, The Oprah Magazine, and Seventeen, where she made history as the publications youngest and first Black beauty director. But there are drawbacks to reaching the top at 25 years old. After just a year at the helm, burnout quickly set in, and she left her post at the magazine with the intention of pursuing a more meaningful and socially impactful path. After launching her own media company and consulting with Fortune 500 companies by the likes of P&G, Walmart, and Estée Lauder, her continued experience with burnout ultimately led her to co-found the CBD-based beauty and wellness brand Brown Girl Jane.

As Brown Girl Jane’s co-founder and chief brand officer, it’s safe to say Beauchamp is driving the meaningful change she always aspired to. In the wake of last year’s protests against police brutality and systemic racism, the brand launched their Brown Girl Swap campaign to encourage consumers to swap five mainstream brands they use daily for Black women-owned brands instead. The campaign caught on, garnering the attention of Halle Berry and sparking a partnership with Birchbox to support Black-owned, women-led brands. And that was just the beginning. In less than a year, the company has experienced six-figure monthly sales, been recognized by Beyoncé’s Black Parade Route, and named Refinery29’s Beauty Innovator of the Year.

Ahead, Brown Girl Jane’s co-founder and chief brand officer share her best financial advice for new entrepreneurs and explains why women should talk about money and business more.

How did you know it was time to strike out on your own and what advice do you have for people who want to take the leap to start their own business but are worried about the financial risk?

Truth be told, I am an accidental entrepreneur. I left my role at Seventeen magazine at 26 years old due to burnout after being named the first Black and the youngest beauty director in the history of the publication when I was 25. It was an amazing but exhausting experience. As a result of burnout, I was intentional about wanting to do something meaningful and socially impactful. I went on to work with my mentor’s family foundation where I immersed myself in youth development and global health. While I was consulting with the foundation, I was asked to become the editor of Vibe Vixen Magazine. Because I was consulting, I was able to negotiate with the foundation and magazine to split my time between the two places. So I worked for the foundation two days a week and the magazine three. This was ultimately the beginning of my journey as an entrepreneur. I began my consulting company that same year. 

Fortunately, I had two clients simultaneously, so that provided me with some financial stability. To that end, I advise new entrepreneurs to leverage where you are to get to where you want to go. Having to stress about finances while starting a business adds to the complex stress of being an entrepreneur. If possible, I encourage people to alleviate as much of the financial stress as possible.

A couple of ways to do this: 

1. Be willing to begin your business not as a side hustle, but as a Twice Hustle. If you are working a full-time job elsewhere, consider starting your business simultaneously. Not only does it allow you to benefit from some financial security, but it also allows you the opportunity to benefit from additional tax benefits if you start a home-based business. 

2. Be intentional about using your savings and earnings to support your business. If you know you intend to start a business, begin saving immediately, the same way you would for a vacation or investment, and set aside resources for the business.

3. Another strategy is to consider partnering with someone. You may be the person who has more time to invest while your partner has more financial resources or vice versa. Obviously, aligning with the best partner also takes time.

How have you approached marketing and messaging on social to resonate with consumers but also sell products and keep the business alive during COVID-19? 

The most important thing in marketing today is authentic storytelling. Consumers and the public are wiser than ever before. They understand and know when brands are “selling” versus “sharing” and genuinely inviting them to either be part of a community or purchase to their benefit. For Brown Girl Jane, we truly center our community, or Tribe as we call them. Our marketing and brand strategy includes powerful storytelling that centers our brand’s ethos around sisterhood, wholeness (our take on wellness), the power of the plant, and empowerment. 

On social media we tell stories, we include our Tribe in those narratives and we engage her. As an example, we host a twice-weekly IG Live show called “You Good, Sis? The Check-in with Brown Girl Jane.” I host this show and speak to women in entertainment, business, beauty, and wellness about how they are, understanding their wholeness practices, how they balance life and work, and why/how CBD is part of their wholeness toolkit. By seamlessly integrating our brand story as well as our collection, our Tribe is able to effortlessly understand how and why BGj should be part of her life. 

During COVID, we’ve been fortunate. Our collection is all about helping our Tribe feel more centered, balanced, healthier, and well-rested. That’s who Brown Girl Jane is. So we’ve been part of the solution during these strange times. Everyone wants to feel less anxious. And because our collection is highly efficacious and supportive of wellness as a whole, we are able to boldly share that with the public. Our testimonials truly speak for themselves.

We also recently announced a partnership with Unilever and Shea Moisture. It’s quite a gift to have such a dynamic partnership. This partnership affords us a unique opportunity to leverage shared reach as well. And last but not least, we’ve been fortunate to have quite a bit of earned media. We’ve become a cult-favorite among editors and influencers! That support is priceless.

What percentage of your budget is currently going toward marketing and are you seeing a return on that investment?

We are grateful to have grown our business organically without the use of paid advertisements and don’t currently have a paid media budget. Because of the extensive love from earned media, people are learning about our brand through storytelling and the stamp-of-approvals given by trusted insiders and industry editors. 

A portion of all Brown Girl Jane sales goes toward a non-profit organization aligned with your mission to better the lives and wellness of Women of Color. Why is giving back such a crucial part of your business model and how do you balance paying it forward with turning a profit?

We knew that giving back was always going to be a central focus of our business model, both in terms of supporting our community through a collective sisterhood and philanthropy. We are true to our word about serving as a support system in more ways than one, and find that businesses thrive when approached from a holistic perspective, versus only focusing on commerce. We give a portion of all sales, so our donations are supported by the purchasing power of our Tribe. It’s a win-win for everyone.

How much did you pay yourself in the beginning and what do you recommend to female founders starting out now? Why? 

We’re bootstrapping and self-funded, and my co-founders and I do not pay ourselves, preferring to reinvest profits back into the business and our amazing talented employees who help drive our business. Although most start-ups are not profitable for three to five years, we’ve been profitable almost immediately, so we are on track to begin paying ourselves within the year.

Where do you think is the most important area for a business owner to focus their financial energy?

Financial planning and bookkeeping! With a rapidly growing business such as ours, it’s easy to let finances take a backseat to driving growth. We spend a lot of time focusing on which opportunities make financial sense, in the short and long term, and making sure we are staying on top of the many banking and reporting guidelines that can overwhelm small business operations.

What was your first big expense as a business owner?

Research and development, cultivation sourcing, product formulation, and inventory. Our collection is expertly-crafted, and we spend a ton of time researching and working with the very best cultivators and scientists when designing our product offerings. Once the products were formulated, we needed to have enough inventory to support the demand, which requires a lot of cash management and planning.  

What are your top three largest expenses every month and were you prepared for those expenses when you first started?

We’re a product-based company, so the top three include inventory, payroll for employees, and insurance/legal/web costs. Each of our founders was an entrepreneur prior to this launch, so we were prepared that these expenses would be necessary to support our rapid growth.

What percentage of business revenue is spent on employee salaries?

Our employee and consultant salaries are equal to about 50% of our business revenue.

How much of the business revenue should new entrepreneurs be saving, if possible, and why?

This is such a personal question that entrepreneurs truly have to answer themselves, but savings should be able to support worst-case scenarios for at least three to six months, if possible. We recognize that this is difficult for new brands and businesses because they typically are not immediately profitable, but savings are extremely important in this increasingly competitive and unpredictable environment.

Did you hire an accountant when you first started out? Who helped you with the financial decisions and set up?

Yes, we have both an accountant/bookkeeper and a CFO. We also integrate services such as Quickbooks that can aggregate your financials into one master headquarters.

What are some of the tools you use to stay on top of your business financials? 

Back-end website integrations, Quickbooks.

What do you wish you’d done differently in your financial journey as a business owner and why?

We assumed that automations would capture all necessary financial analytics and recordings, and we’ve learned that an accurate and comprehensive download of financial health needs a combination of an expert and technological integrations.

Do you think women should talk about money and business more? Why? How will it improve financial outcomes for female founders? 

Absolutely! Men do it, and they do so unapologetically. We should be sharing tips, best practices, salaries… everything! The more we can each pull from the experience and expertise of others in our industries, the better. It should not be taboo to talk about finances. With more information, we’re able to demand more money, advocate for better business opportunities, and begin to lay the foundation for the most successful business possible. It does no one any good to operate in a silo.

Do you have a financial mentor? Do you think business owners need one?

I didn’t for a long time, but I have friends who are seasoned executives and entrepreneurs and they have helped immensely. The biggest hurdle was getting over my own issues with asking questions about money and finance. But after making a lot of mistakes earlier in my career, I became more open about sharing my challenges and asking for advice. I made costly mistakes. Ego is often a deciding factor in asking for financial mentorship, but I think founders will find that other successful women are eager to share advice and want you to succeed. I also have a built-in benefit of having a co-founder, Malaika Jones Kebede, who comes from the financial services industry.

What is the biggest money mistake you made and learned from along the way? 

Early on, it was not only about saving properly but also understanding taxes and bookkeeping.

What is your best piece of financial advice for new entrepreneurs?

Set aside a portion of revenue whenever you can. It’s inevitable that unexpected expenses will arise, from tax bills to a quick need to increase inventory. Being conservative from the beginning will help when you require a quick influx of funds.

What is one financial thing you didn’t do at the beginning of your business that you urge founders to do now and why? 

Establish a clear plan for the financial side of your business in the same way you do for strategy, marketing, or production. It sometimes seems like the most burdensome and least sexy component of running a brand, but trust me, it’s the most important.

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C&C Pro Tip: How to Get Paid as a Freelancer (and Know Your Worth)

Photo: Smith House Photography

Why does talking about money make people uncomfortable? It’s something we all need. We spend it on a daily basis. We always want more of it. So why is it that talking about it is seen as taboo?

When it comes to your professional career, the first thing you’ll want to get over is any fear or discomfort you have when it comes to talking about money because guess what? Your boss or client is only going to pay you what they think you think you’re worth. They didn’t teach you that at university, did they?

When you’re a freelancer, how much you get paid is up to you and the only way you’re going to continue to put money in the bank is if you’re comfortable talking about it. For today’s Pro Tip, I’m going to share tips for how to communicate your value.

Why It’s Important

Understanding your value is important because it helps you enter into conversations knowing what you and your potential client should work towards together.

Remember, freelancers and clients create a circle: You should be getting as much value out of the relationship from working with them as they are getting from hiring you.

Beyond the quantitative factors in establishing value, qualitative factors like expertise, convenience, and reliability also play a vital role.

Consider adding to your value if any of the following apply to you:

• You specialize in a high-demand field or in a particular area not many people are experts in

• You can provide something to the client no one else can (i.e. You have a direct line of contact to a company they’ve been trying to pitch, you can translate copy into different languages saving them money on additional services, etc.)

• You create convenience by knowing exactly what to do and getting the job done quickly

When it comes to the quantitative aspect of value, research what full-time employees who do what you do get paid annually. Then take the added value you provide and use this hourly rate calculator to determine a rate that embodies the value you know you can bring and that makes you excited to do good work.

The Scenario

(For this post, I’ll create a common scenario and break down the best way to communicate a clear and effective message.)

You’re on a call with a potential client and have decided this is a project you’d like to work on. It’s perfect for your expertise and it would help progress you and your business forward. The scope of work is challenging but you’re up for the work ahead. The client expresses she would love to work with you and asks you how much it would cost to complete the tasks she’s outlined.

Say this:

“This is a project I’m excited to work with you on. I would need to take time to evaluate everything we discussed to determine how many hours I’d need to complete these tasks. With that in mind, is there a particular budget you have for this project?”

Don’t say:

“I can do this for $X-amount and have it to you by next Tuesday.”

The Breakdown

While it’s always nice to show enthusiasm, the last thing you want to do is be quick to commit yourself to a number or deadline without knowing all of the details. It’s important to determine your client’s budget so you can realistically state whether this is an opportunity you’re able to take on.

When I’m on a call like this, I’m adding hours up in my mind as the scope is discussed so at the very least I’ll have a ballpark of how much time it the project will take. If I know that a project will take at least $2,500 of my time to complete but they only have a $1,000 budget, I can confidently communicate on the call that the budget they have isn’t enough to support the value I can bring.

If you find yourself in this situation but still want to work with the client, try communicating the following:

“That budget may not be able to support the amount of time I’d need to dedicate to this project but I’d still love to work together. Would you be willing to add more for the right person or consider reducing the scope of work? I can put together what I’d be able to accomplish for that amount if it would be helpful.”

If you find yourself in this situation but the budget they have isn’t something you’re willing to work with, say this:

“I’ve really enjoyed learning more about this project but that budget isn’t enough to support my value and the amount of time I’d need to complete this project. I’d be happy to look into my network and recommend someone else who may be a good fit and hope there’s an opportunity for us to work together soon.”

Turning down an opportunity might seem like a hard concept but the jobs you turn down are just as important as the ones you take on. This messaging establishes your value in a professional way and if the client really wants to work with you, they’ll either find more budget or reach back out for something bigger and better in the future. This also keeps you available for an opportunity that will be able to afford what you can bring to the table.

What financial situations have you found yourself in that you wish you had communicated better?

About the Author: Audrey Adair is a seasoned freelance communications professional and founder of The Scope—a platform providing resources and community to freelancers and the self-employed. Connect with The Scope on Instagram and join their email list to receive your free resource, The Freelancer Starter Kit.

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This post was originally published on April 9, 2019, and has since been updated.

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How Much Do You Make? Here's How to Tackle the Uncomfortable Questions

Photo: Courtesy of Create & Cultivate

“Do you mind if I ask… ?”  These are six little words that almost always preface questions about money, especially among female friends. “Do you mind if I ask how much that cost?” “Do you mind if I ask how much your rent is?” “Do you mind if I ask how much you make?”

Women have traditionally shied away from discussing personal finances, instead choosing to tiptoe rather clumsily around these conversations. But like anything else, if we don’t talk about it, we won’t get good at it. From asking for a raise to investing in a 401(k), there is so much good advice to be gleaned from your friend group.

Keep reading to learn a few ways to broach money talk with friends.

TALK SALARY OPENLY AND HONESTLY 

Have an honest conversation with your friends about what they are making and their financial goals. The second part of this is equally as important as the first. Talking salary with friends can boost your financial confidence, which in turn can have a positive impact on your career. It can also highlight if you should be making more.

If you know your friends are making more money than you, use it as motivation to achieve your financial goals. Journalist Moira Forbes once told me, “If you can’t see it, you can’t be it.” See it, hear it, and share it—because the highest wave floats all boats.

ASK FOR ADVICE ABOUT RAISES 

The raise conversation is a tricky one to have with colleagues because we don’t generally divulge our salary to our co-workers. If you’ve already had the salary talk with close friends, chatting over the realistic and unrealistic expectations of your raise will prove beneficial to all parties. However, because money is a sensitive topic, try to have the conversation with a friend who is paddling in a similar financial boat. Talking to a friend that makes significantly less than you could potentially strain the relationship. Talking to a friend that makes significantly more than you might have you reaching toward an unrealistic branch on the money tree.

Aim for the middle and be prepared to have a real talk about what you’re worth and why. A true friend will not only help prepare you for the convo, but will steer you in a realistic direction toward your goals. Understanding how to price yourself is paramount, and the more we understand the realities of others’ financial situations, the better we understand our own.

“Sharing salaries: if we don’t talk about it, we won’t get good at it.”

SHARE FINANCIAL MISSTEPS 

Our relationship with money can sometimes feel like a bad marriage. We don’t talk about the things that bother us, instead choosing to sweep problems under the rug in the hopes that they might disappear. The great thing about true blue friendship is that you can talk about anything—especially when you’re not in the green.

Our friends are there to remind us that the idea of "keeping up" with others is one of the biggest illusions out there. If you thought you’d be making more, saving more, or wrapping up those student loans, it’s time to assess and call up a friend. Talking through missteps or how much you’re putting on your credit card every month will lend a little financial clarity.

MAKE A PACT TO BUDGET 

Oh, the expensive inconvenience of convenience. Are you spending an absurd amount on apps like Uber and Postmates? It’s easy to push a button, but not so easy to stomach the end-of-month tally. If you have a habit of spending money on easy-come services, it’s time to sit down with friends and chat about how they save for their future. Make a pact with your BFF to delete apps like Postmates from your phone. You don’t need everything to be delivered to your doorstep, and doing it together makes it less painful.

BE AWARE OF OTHERS' FINANCIAL SITUATIONS 

The friends who are married with kids. The single friend with a disposable income. The one who created an app and is rolling in dough. The reality is that most of your friends will be in very different financial situations. When you're the one trying to make ends meet, a simple dinner can be anxiety-inducing. Your friends may be buying bottles while you can barely afford a glass of the house red. A couple of things: If you know you can’t afford dinner, don’t go. The more transparent route is to make it known from the start of the meal that you can’t simply split the bill evenly. If they are truly your friends, they won’t care one little bit.

On the other hand, if it's your pockets that are heavy and you want to invite a friend to dinner, make sure to suggest a restaurant that you both can afford. What's better than Taco Tuesday? Be realistic and your friendship won’t become tense.

How do you talk about dollars with friends? Share below!

This post was originally published on December 22, 2017, and has since been updated.

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How to Save Money in Your 20s in 5 Easy Steps (Yes, It's Possible!)

Written by Brittney Castro.

Do you have a resolution to get your finances together in 2019? A lot of people in their 20s are dealing with large amounts of student loan and credit card debt and living paycheck to paycheck, dreaming of days when they can begin to use their money to reach their financial goals. While it's easy to that think financial planning at this stage in your life is pointless, the truth is there are some basic strategies you can implement, regardless of how much debt you have or how much income you’re earning. Learning these strategies will help set up the financial foundation you need to move through this challenging time in your life and set the stage for a strong financial future.

Ready to get started? Read on to find out how to save money in your 20s and live the life you want.

"Most 20-year-olds understand they should budget—the reality is most just don’t do it."

1. Create a budget

Even as a young adult who may not be making that much money yet, budgeting is critical, as it allows you to see how much money is coming in and going out every month. Although most 20-year-olds understand they should budget, the reality is most just don’t do it. Get a budgeting system as early in place as possible and review how you are spending your money so you can make adjustments, if necessary, to ensure you are living within your means and able to save for your financial goals.

The basic budget formula for after-tax income is:

-50% for fixed expenses, such as housing (28% or less for housing expenses), basic food, insurance premiums, etc.

-20% for financial goals. This would include extra debt payments, your cash cushion, retirement, etc.

-30% for variable expenses, such as dining out, entertainment, travel, etc.

2. Build up a cash cushion

The goal of a cash cushion is to have three to nine months of your fixed expenses in a savings account to pay for life’s unexpected incidents. Life always throws curveballs—your car breaks down, your computer crashes or you receive an unexpected medical bill—and having money in the bank to cover those expenses will help you maintain your financial peace of mind. If your fixed expenses are $3,000 per month, you should aim to build a cash cushion of anywhere between $9,000-$18,000, depending on your comfort level, job security, etc. That sounds like a lot, I know. But remember, just start with what you can to build you cash cushion over a few years. Again, even if it’s $10 a week, that’s still one step in the right direction.

3. Keep an eye on your credit score

Our credit score affects nearly everything in our financial lives. It affects the interest rate on the car loan we apply for, the mortgage loan, the credit cards—even employers and landlords can reference your credit score when reviewing your application. By monitoring your credit score, you can see where you stand and what you can do to improve it if necessary. Use websites like creditkarma.com to view your credit score (not your actual FICO) regularly for free and then pay to see your actual credit score at least annually using annualcreditreport.com.

4. Create a debt reduction plan

The first step is to make a list of all your debts. Get clear about how much you owe, the interest rate of each debt, and the minimum payment due. Then review your budget to determine how much you can realistically add toward extra debt payments and start with the debt with the highest interest rate while paying the minimums on the rest. This will allow you to save the most in interest payments. Once the debt with the highest interest rate is paid off, move on to the second highest, and so on.

5. Focus on building your earning potential

Income is one of the biggest factors in wealth creation over time. After all, if you don’t make money—or don’t make enough money—it is very difficult to save for your financial future. So if you can’t save as much as you would like to due to your income level, focus on ways to increase your earning potential for the long run. There are a lot of free courses you can take online, and even watching YouTube videos to sharpen your skills is something anyone can do. There are plenty of ways you can earn extra money on the side. Think outside the box, and continue to focus on increasing your earning potential every year.

This post was originally published on December 26, 2018, and has since been updated.

Up Next: I Paid Off $30K in Credit Card Debt in 6 Months — Here’s How You Can Too.

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