Worth It

Hello, loyal listeners! We wanted to let you know that we have a quick update on the podcast and a few things that are happening over at Toujours Planning right now. As you may know, we are a Lake Charles-based business and family, and our community, homes, and offices were devastated by Hurricane Laura in August. While we work to rebuild our community and also weather other storms that have come through the area, we are taking a break from the Wealth by Design podcast. We do not know how long it will take to return to “normal,” whatever that means. In the meantime, we ask that willing listeners of the podcast donate to Lake Charles and Louisiana recovery efforts. We are personally supporting the Community Foundation of Southwest Louisiana, an organization that has helped care for people who’ve lost their homes and livelihoods, as well as get our community up and running again. If you are able and interested, please donate here: https://www.foundationswla.org/ In the meantime, we thank you for being a listener of the Wealth by Design podcast, and we hope to be back on the airwaves soon! LINK TO DONATE: https://www.foundationswla.org/ CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter See you in 2021!

We often think “the stock market” is synonymous with Wall Street. Stressed out stockbrokers yelling and wearing blazers. New York City. Right? Not necessarily. There are other stock markets all around the world, and they all have different degrees of influence on everything else. That’s how a global economy works. And that’s what Dustin and Joseph discuss in this new episode. WHAT YOU’LL LEARN [02:07] We’re in a global economy  [06:15] What we think of when we hear “stock market”  [08:25] Is McDonald’s an American company?   [09:46] How to envision the global economy  [12:33] Easy trading + quarantine = a big old mess  [15:18] What you can learn from Dave Portnoy’s stock mess   [19:19] The power of other stock markets   Making the world a smaller place What do you think of when you hear the words “stock market?”  We typically don’t think of the Chinese stock market, European stock market, London Stock Exchange, and so on. Dustin explained that he thinks of the world market, but most people typically refer to the S&P 500, aka Standard & Poor’s 500.  The S&P 500 is one index of the biggest, most well-known companies in the world, many of which are headquartered in tiny little New York City. But while we might think of the S&P as an American stock index, it’s made up of multinational corporations.  Can you still call a company “American” when it makes money all over the globe? Here’s an example.  Dustin asked Joseph, “Is McDonald’s an American company?” We think of it as one because it was founded in America. And, well, burgers seem to be as American as baseball and apple pie.  But if we use sales to figure out that question...our answer might look a little different.  What percentage of the McDonald’s revenue is American? According to a brochure Dustin found from ten years ago, it was 34 percent. The rest was foreign sales. The same stats for Coca-Cola? Just 25 percent of their revenue was American!  As the global economy grows stronger and we become even more interconnected, we’re sure those numbers are even lower today.  How to picture the global economy Here’s how you can envision the way the global economy works: imagine that you’re standing in a circle with five other people, holding hands. The person to your right tugs on your hand. You feel it, right? If they pull hard enough, you might even stumble and fall. Now, imagine the person across from you does the same thing with their neighbor. You don’t directly feel it on your hand, but you do feel that movement ripple throughout the group. If they yank hard enough, their neighbor may fall. And the person next to them might be taken down, too. Pull hard enough, cause enough damage, and everyone in the circle might end up on the ground in a big heap. We want other countries to do well in a global economy, because what happens in one country affects the rest of us. The 2008 financial crisis, for example, started in the U.S., but its effects were felt worldwide. We know you’re probably tired of this phrase, but it applies to the global economy, too. We’re all in this together.  This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED   Money and The Reserve Currency System in Episode 114  About Dave Portnoy’s stock snafu on Twitter Check out our new program, Wealth by Design™ DIY! Join the Know Your Numbers challenge Schedule a free call with us — Are we a good fit for your financial planning needs?   CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

When you decide to get your financial ducks in a row, you probably start to look for help with a good old Google search. But when you look up “financial advisor,” “financial planner,” “planning for retirement” or any variation of your financial needs… you might get confused. Quickly. Why? Because there are so many titles for financial professionals out there. Do you need a financial planner? A financial advisor? An investment professional? A money coach? And what are those initials after their names?! In this minisode, Dustin briefly describes the different types of financial professionals and designations you may see and explains when you’ll want to call a CERTIFIED FINANCIAL PLANNER™ professional. WHAT YOU’LL LEARN The different titles of financial professionals The designations and licenses that financial advisors may have What a CERTIFIED FINANCIAL PLANNER™ professional does How a CFP® can help you The three Es of the CERTIFIED FINANCIAL PLANNER™ designation Watch this week’s episode: https://youtu.be/3UQ7soViuUg  Want more quick tips like this? Make sure you’re subscribed to the Wealth by Design podcast! This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED How to choose which financial professional you need: Episode 015  Sign up for our free Know Your Numbers challenge! Check out our DIY Financial Planning Course Our YouTube Channel Schedule a free call with us — Are we a good fit for your financial planning needs? CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

When you think about buying something — a plain ol’ shirt, for example — what’s your thought process? How do you decide what shirt to buy? Maybe you think, “I don’t want to spend over $20 on this shirt.” Or, “I need it fast, so I need to buy it online from a store that offers free two-day shipping.”  How often are you thinking, “I need a shirt that’s sustainably and responsibly made from a locally owned clothing boutique”?  This is an example of using your money to make an impact. Every purchase you make has a ripple effect. That’s why it’s important to understand that impact. In our newest episode, Dustin and Joseph discuss the idea of “voting with your dollars” — what it means and how you can start practicing it through spending and investing. WHAT YOU’LL LEARN [02:17] What “voting with your dollars” means  [05:05] Changing our spending habits  [09:22] The draw of cheapness and convenience  [12:10] What makes a monopoly?  [14:20] A tip for buying clothes (and really, anything)   [16:09] Why we just “buy a new one”   [18:30] ESG investing  [25:27] It goes both ways: voting affects your money too   Cheapness and Convenience Let’s go back to our hypothetical shirt situation.  We buy the shirt from Amazon because it costs ten bucks and it’ll arrive tomorrow. With that purchase, whether consciously or not, we’re choosing to support a big corporation over our local clothing shop down the street. A big corporation that doesn’t even need your business. Meanwhile, mom-and-pops go to great lengths to compete with giant companies like Amazon, for example. They’ll match the price, even if they have to show a loss. They just want your business. Sad, right? The truth is, though, that we are choosing to ignore how that shirt from Amazon is made; many workers in the fashion and textile industry suffer from labor abuse and unethical practices. (Just listen to Episode 80 with Stephanie Hepburn to learn more.) We’re not trying to guilt trip you, promise. This is just to illustrate the fact that, in our culture, cheapness and convenience often motivate our decisions to buy stuff. If you want to start spending your money differently, you have to be more mindful of what you’re buying. Changing our Buying Behavior  How do we start changing the way we make purchases? Think of everything as an investment. This quick little thought process can help us buy quality clothing over fast fashion. An electric car vs a gas car. Organic food instead of cheap, unhealthy food.  It can even influence how we buy replacements for things we already have, like a busted TV or a phone. Decades ago, we’d hire someone, maybe a local handyman or specialist, to repair a broken device. Not anymore. It’s usually quicker, and costs you less money and less time and stress, to just ‘buy a new one’ of something. Cheapness and convenience strike again.  We may understand the factors influencing our purchases, but that doesn’t make it any easier to change. As Joseph put it: “We’re less likely to change our behavior because, ‘well, I already paid for the Prime membership this year, so…’” But we can change for the better. We Can Do Better It’s not all doom-and-gloom, folks. You can begin investing and spending your money the way that you want. Change takes time, so you shouldn’t expect to get rid of any bad spending habits all at once. One thing you can do is be more selective of the businesses and organizations you support with your dollars. Research companies before you buy from them. Practice ESG (environmental, social, and governance) investing.  You can invest in “regular” stocks, watch your wealth grow, and see businesses change in response to their shareholders’ behavior. Or, you can focus on “impact investing,” where companies address certain social or environmental needs through special stocks or funds. Either way, ESG investing isn’t that hard. And the benefits are two-fold: you can grow your wealth and know that your money is supporting your values. Change can happen, but it has to start within each of us.  As Dustin put it: It’s not always just about profit, cheapness, and convenience. We can live in the world that we want. But we have to change the way we spend our money, how we outline our budgets, and the way we invest. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED   Buy n Large, and how our society is like the one in WALL-E  Quick history lesson on trusts and Teddy Roosevelt  Sustainable Fashion & Social Good with Stephanie Hepburn: Episode 80 Build Wealth and Make an Impact with ESG Investing: Episode 76 The Volkswagen emissions scandal on Dirty Money Check out our new program, Wealth by Design™ DIY! Join the Know Your Numbers challenge Schedule a free call with us — Are we a good fit for your financial planning needs?   CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter Danielle’s Instagram

Sir John Templeton, an American-born British investor, banker, fund manager, and philanthropist, said this on investing: “Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.” He was named “the greatest global stock picker of the century” by Money in the 1990s, so we’re inclined to listen to his advice.  In this new minisode, Dustin breaks down each part of Sir Templeton’s quote. He also discusses timing the stock market, why it’s a bad idea, and what you should do instead.  WHAT YOU’LL LEARN The “stock market trap” How fear clouds our judgment ...and greed affects it, too Pick a strategy and stick with it for awhile This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED   More on fear and greed in investing in Episode 104 More on timing the market in Episode 107 Check out our new program, Wealth by Design™ DIY! Join the Know Your Numbers challenge Schedule a free call with us — Are we a good fit for your financial planning needs?   CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

We often think of “money” as a stack of bills with a bunch of dead presidents on them, right? That’s money as a concept. But when was the last time you carried cash on you? If you don’t see it or touch it, does it actually exist?  Yes. And no. Maybe? Dustin and Joseph do a deep dive into the concept of money in our latest episode. They also cover how financial systems evolved from thousands of years ago into what it is now to support a global economy. Tune in to learn about the power of money, how it can be used as a weapon, and how the world seems to revolve around the American dollar. WHAT YOU’LL LEARN [03:41] What the heck even is money?  [04:39] The early barter system  [07:33] Money is based on our shared beliefs  [09:39] Why the American dollar is the currency of power  [11:40] An example of how the reserve currency system works  [1:530] The alternative to a global economy  [18:09] Power (and consequences) of printing money  [21:35] The weaponization of finance   [24:50] Trust the system  What is money? So, is money real or not? If we only see numbers on a statement or on a banking app, that’s not really money… is it? This is where Dustin and Joseph have a bit of a back and forth about what money is and what it means. As Dustin says, you may not be physically handling money, but it still exists. Dollar bills don’t actually have intrinsic value. What they do is represent our money system. They hold value because we all agree that they do.  We’ve evolved into this system using paper money because… well, our previous barter system wasn’t really built to last, nor was it the most efficient. People in ancient civilizations used to trade livestock for building materials, or one food for other types of food, for example.  Instead of “carrying all your commodities around with you,” as Joseph put it, we turned to trading precious metals, coins, and eventually, bits of paper. And over hundreds of thousands of years, we’ve continued evolving into our current system, where the American dollar is used around the world. The reserve currency system and a global economy America is what’s called the “reserve currency,” which means that basically the entire world revolves around one dollar. Our dollar. This reserve currency system supports a global economy. Dustin further explained it in this way: imagine that someone in one country wants to buy a product from another country. Both countries, however, use a different currency. What’s the point of selling that product if you can’t use the money you’d receive? Think of the United States as the middleman in this situation. We’d buy the product from one country and sell it to the other. Because the American dollar is the single currency used for exchange, we allow the global economy to keep going. Having that power is one of the perks to the reserve currency system, but it’s also a burden. That’s why you hear about America being in debt to so many nations in the news. But the alternative is: we go back a thousand years to how it was before a global economy, or someone else has to be the reserve currency instead of us.  What’s the alternative? Understandably, the idea of having only a few entities with so much power can make many feel uneasy. Dustin points out though, that this system we have has been adjusted and tweaked over thousands and thousands of years. Something about the system is working, because it hasn’t all crashed and burned just yet. If you’re not down with this global financial system, there aren’t very many alternative options for you to explore, unless you want to join a hippie community in India that uses a barter system instead. (Thank you for pointing this out to us, Joseph. Link is in the show notes, if you’re curious.) The best thing to do is accept and trust how money works in our world today. And you can learn how to make the system work to your advantage from financial planners like us. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED The National Debt, Visualized Go back to the barter system in this hippie community in Goa, India Check out our new program, Wealth by Design™ DIY! Join the Know Your Numbers challenge Schedule a free call with us — Are we a good fit for your financial planning needs?   CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter  

We’ll keep the intrigue to a minimum. In our opinion, the answer to this question is a resounding yes.  Whether you’ve just gotten married (congrats!) or you’re in a committed, long-term relationship, it may be a good idea to have a joint account with your partner. Sharing your finances with your partner builds trust. Keeping them separate can breed suspicion and worry; plus, separate accounts keep your partner out of the loop on your day-to-day spending and savings habits. Why do partners keep separate accounts? It may be a leftover habit from when you were dating. Or, you may have seen your parents control their accounts separately and assume that’s the best, or only, option.   The good news is, there’s still time to change things if you’re considering opening a joint account. Tune in to the full minisode for all the deets from Dustin! It’s only a few minutes, so you have no excuse to not tune in... WHAT YOU’LL LEARN Reasons why people might keep separate accounts Community property laws The importance of trust in a marriage Arguments against joint accounts (that are actually red flags) This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED   The nine community property states The other states follow equitable distribution laws Check out our new program, Wealth by Design™ DIY! Join the Know Your Numbers challenge Schedule a free call with us — Are we a good fit for your financial planning needs?   CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

The coronavirus pandemic, as well as recent protests against racial injustice, have highlighted a few underlying problems in our society that have been unknown by many and ignored by most. One of them is the income equality in America: the staggering wealth that a very small percentage of the population owns. As you’ve probably heard, about 1% of the population owns 44% of the wealth in the world. It’s staggering. That’s why the idea of a wealth tax has been kicked around lately, especially as we draw nearer to the 2020 election. Senator Elizabeth Warren and Senator Bernie Sanders both proposed a wealth tax during their campaigns, and billionaires like Warren Buffet have even spoken in favor of a wealth tax.  But what is a wealth tax, and how does it work? Listen to our latest Wealth by Design episode to find out.  Bonus: we have Joseph Darbonne from the Toujours Planning team as a co-host! WHAT YOU’LL LEARN [00:52] Meet Dustin’s co-host, Joseph  [03:56] What is a wealth tax?  [06:15] Why the idea of wealth tax is becoming popular  [09:55] Is our current tax system fair?  [13:38] Negative net worth  [15:20] The ultra-wealthy who called for raised taxes  [18:06] Downsides of a wealth tax society  [20:18] The difference between “regressive” and “progressive” taxes [24:43] Arguments against wealth tax  What is a wealth tax and how does it work? Let’s get this out of the way first: wealth tax is not the same as your income tax. Income tax taxes the money you rake in over a period of time. Through our progressive income tax system here in the United States, people with higher taxable incomes pay higher income tax rates. There are seven federal income tax brackets, where the lowest tax rate is 10% and the highest is 37%.  Net worth is, as Dustin put it, basically everything you own, minus everything you owe. (Need to know what yours is? We have a calculator for that) A wealth tax would tax your net worth. For example, if you have $400,000 of assets and $250,000 of debt, your net worth would be $150,000. A 2% wealth tax would be $3,000.  As Joseph mentioned, wealth taxes are not brand new ideas.  “There are wealth taxes in place already that you’re not even aware you pay,” said Joseph. “If you’re a homeowner, your property tax is a wealth tax.” There are also inheritance taxes, estate taxes, and gift taxes as other examples. The argument for a wealth tax Why would we want to institute a wealth tax in this country? Well, we talk about the net worth of Amazon CEO and founder Jeff Bezos in this episode, and we guesstimated it was around $77 billion at the time of recording in mid-July. We were wrong: he has an estimated $178 billion, and is the currently richest person alive. Compare how much wealth he has to the average American, and it’s mind-boggling. As Joseph explained, we now have about 2,100 billionaires in this country… and minimum wage is still under eight bucks in their state of Louisiana. A wealth tax would move to balance out the wealth inequality we experience in our society today. It would also make tax percentages equal for all: “If you’re worth ten dollars or ten billion dollars, you’re gonna have the same tax rate, but based on your net worth,” explained Dustin. We point out in the episode that many people in the top 1% are lucky enough to inherit wealth. There are self-made billionaires who busted their butts, yes, but some of the ultra-wealthy didn’t lift a finger to make their millions and billions. Wealth is much more unequally distributed than income. If we continue to allow income inequality, the ultra-wealthy who inherited their wealth will keep dominating the economy. The cons of having a wealth tax Having a wealth tax sounds like an easy fix to income equality, but the mechanics of having it? Not so much. What would be considered a taxable asset? Are there liabilities that wouldn’t be taxed? How do you even calculate the value of an asset, like your house or business? It gets tricky. And there may be cons against those who aren’t wealthy, too. One of the biggest arguments against the wealth tax, Dustin explained, is that it doesn’t incentivize saving, investing, or building businesses. If we tax the richest people, they might not want to do anything to build their net worth. That may be so, but we also discussed how human nature plays into everything. We want to feel like we have value, and that we matter. Would we really settle for having a negative net worth? Or would people want to keep building their savings and growing their wealth?   This was a really fun topic to discuss in our latest episode, and we hope y’all learned about wealth tax by listening. We also hope you enjoyed meeting our new co-host!  This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED   Learn more about our co-host, Joseph! More on net worth in Episode 102 A short guide to Capital in the 21st Century Jeff Bezos’ net worth (which is already higher than the amount we mentioned at the time of recording) The “Millionaires for Humanity” letter calling for raised taxes Check out our new program, Wealth by Design™ DIY! Join the Know Your Numbers challenge Schedule a free call with us — Are we a good fit for your financial planning needs?

In March of 2020, we saw the stock market tumble 30% in one month. In the following few months, we’ve gained most of that back. What is happening?? In this minisode (seriously, it’s less than three minutes!), Dustin recaps what a stock actually is — in case you’ve forgotten amidst all the panicked COVID-19 stock market talk — and how stocks are bought and sold. He discusses how people’s emotions cause those peaks and valleys in the stock market, and how you can avoid that dangerous herd mentality when it comes to your own investing. WHAT YOU’LL LEARN What a stock is The basics of buying and selling stocks How fear and greed cause swings in the market  Dustin’s secret to investing This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED   Dustin shares more stock market basics in Episode 7! More on fear, greed, and herd mentality in Episode 10 Check out our DIY Financial Planning Course Sign up for our free Know Your Numbers challenge We have more minisodes on our YouTube Channel Schedule a free call with us — Are we a good fit for your financial planning needs?   CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter  

Katell and Jon, a husband and wife design team, are founders of Reverielane, a purpose-driven brand and web design firm. Katell’s experiences living in The Ivory Coast in Africa and France have honed her keen eye for design. Paired with her entrepreneurial drive, as well as Jon’s technical skills and creative spirit, led to the growth of Reverielane.  We were so excited to talk to Katell and Jon about Reverielane, their thoughts on investing and building wealth, and their long-term goals for their business and personal lives. WHAT YOU’LL LEARN [02:00] How and why Katell started Reverielane [05:14] What “living life on your own terms” means to Jon and Katell [08:39] What it means to build wealth [11:00] Investing and growing assets [13:54] Jon and Katell’s investment goals [17:09] Our guests’ thoughts on debt [18:48] Preparing for the unknown [20:49] Long-term goals for Reverielane [28:11] Jon and Katell’s underlying passions outside of the business Reverielane’s origin story Katell moved to the United States from France in 2010. Rather than starting a new career working for someone else, she decided to go all in and launch a graphic design business. “When I moved here, I saw the possibility of creating something on my own,” said Katell. “And I decided to go that way instead.” Katell took the first few years to hone her graphic design skills. With Jon still working a traditional job, the timing was perfect to launch Reverielane. Plus, starting her own business that would also work with a family lifestyle was always one of Katell’s goals. “I’ve always wanted to make my own money,” said Katell. “Creating something that I could do from home and raise the kids, that seemed like the cherry on top.” Jon was working with Katell on Reverielane, kind of as his “night job” in addition to his regular job. But when they both realized the potential to grow Reverielane and looked at what it could become, he decided to go all in and work on it full-time.  At the beginning, Katell and Jon had different mindsets on income and investing.  “The initial step was, ‘let’s survive the first month,’” said John. “Katell came in and said, ‘No, this needs to be our financial goal right away.’”  He realized she was right. By making space for investing in Reverielane from the beginning, they were able to look beyond that month-to-month idea of simply making ends meet. They were on a path to growing their wealth.  Living life on their own terms Katell pointed out that running a business with your partner sounds, in theory, “very idyllic and fun,” but it’s hard work. Making that decision to have only one income source was tough, but it was how they could work towards their dreams. Flexibility was key: the flexibility to work from home, to travel if they wanted, and also to give to others if they had the means. Flexibility played an important role in their other decisions, too. Jon and Katell chose Southern California as a place to settle down, grow the business, and raise a family, but they were always open to other options should the need arise. “Not that you want to be moving every six months, but the mindset helped us feel confident in our decision,” said Jon. “It was awesome to get to move based on our own desires, rather than what was pulling us.” Flexibility also influences how they run Reverielane. For example, creative work in their industry tends to fluctuate. Rather than stick to a monthly budget for the business, they budget by quarter instead. That’s a great tip for creative entrepreneurs: you don’t have to follow certain rules because that’s the way you’re “supposed” to operate a business. Be flexible and do what works for you. Building wealth to give back What’s in the cards for Katell and Jon in the future? Of course, Reverielane’s success is one of their goals. Offering more options to clients and customers and scaling the business is what Katell and Jon are focused on now. If, in the future, the business evolves so much that they may sell it, they’re open to it.  We asked Jon and Katell what they would be doing if income wasn’t a factor. What are their underlying passions they’d pursue if they could? Music is a big part of Jon’s life; he played cello as a kid and pursued audio engineering as a degree. Writing short fiction and making short films, creating things as he wants and as the inspiration hits would be his dream.  Giving back, as Katell mentions often in this episode, is very important to her. That may look like investing in an AirBnB to offer others a place to stay. Or it may be starting a foundation, or a restaurant.   “We don’t want to just build wealth to be ‘wealthy.’ We always want to have a heart full of generosity and kindness,” said Katell. “We want to be able to serve people, to impact people.”   This material is for general information only and is not intended to provide specific advice or recommendations for any individual. The Standard & Poor's 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.  The S&P 500 is an unmanaged index which cannot be invested into directly. Past performance is no guarantee of future results.  RESOURCES & PEOPLE MENTIONED Build Wealth and Make an Impact With ESG Investing: Episode 076 Ladder Life Shay Cochrane and Graham Cochrane Join the Know Your Numbers challeng Want more help? Check out our new program, Wealth by Design™ DIY! Schedule a free call with us — Are we a good fit for your financial planning needs?     CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

We talk about fear a lot on our podcast. Fear is natural and, TBH, necessary. But when it comes to finances, three types of fear tends to hold us back: from investing, from charging clients what we’re worth, or from taking chances when building a business. Fear can also make you focus on the wrong thing when it comes to your net worth. Paying down debt rather than building up your assets, to be specific. And that’s what we discuss in this week’s episode: where our fear of the “debt boogeyman” comes from, our three-step strategy on how to overcome it, and what part of your finances you should be focusing on instead.  WHAT YOU’LL LEARN The first of our Nine Commandments What is your net worth? Debt vs. assets: which should you focus on more? How we got inspiration for this episode Why the Dave Ramsey way of looking at debt is problematic The types of assets you need Where did Millennial “fear of debt” come from? How to change your debt-fearing mindset Steps to building a positive net worth A couple of analogies for paying down debt and building assets Assets - Liabilities = Net Worth “Net Worth is King.” That’s our second of Nine Commandments, after “Leave the Punch Clock Mindset Behind.” (A little insider info for you: we’ll be talking about our other commandments in future episodes!) So what is your “net worth,” exactly? Simply put, your net worth = your assets - your liabilities.  You want a positive net worth, which is where you have more assets than liabilities. “Own more things than you owe,” as Dustin put it in this episode. As simple as that sounds, we see more people focus on paying down their debt rather than building their assets. That’s partly because our culture focuses on debt so much, even though assets are just as important, if not more so.  The Problem with Focusing on Debt Let’s be real: our society’s obsessed with debt.  And honestly, we blame Dave Ramsey and his Debt Snowball Plan. Yeah, we said it.  We won’t go into too much detail about his methodology (which we have linked in the show notes if you’re really interested), but generally, he advises people to attack their debt first. Once it’s all gone, then you should invest, he says. But there’s a fatal flaw in that plan: all those years you spend paying down debt only are years you could be saving thanks to compounding interest! But we keep shooting ourselves in the foot by paying down debt… because we’re scared! Where does this fear of the debt boogeyman come from? Our parents dealt with the highest interest rates ever to date in history, from the mid-1960s to the mid-1990s. Which, by the way, is the generation that Dave Ramsey comes from. We Millennials were raised to believe that we have to be debt-free before we save or invest. (Thanks, Mom and Dad.) Now, over the last 10 years, interest for debt is at one of the lowest it’s ever been. This means that the Baby Boomer mentality of fearing debt doesn’t really make sense anymore. We need a new way of thinking about debt and assets. How to Work Towards a Positive Net Worth We’ll lead the charge on getting rid of that debt-fearing mindset. Instead of looking at debt as some horrific monster, think of it as a necessary presence instead. You can and will deal with it, but other parts of your financial strategy are more important and will make a bigger impact on your wealth.  Think of it this way: even if you pay down your debt to zero, if you haven’t been saving until that point, you have no wealth. Zero is then your starting point, which is a waste. Choosing the right assets and focusing on saving — at any income level — is more important than paying down debt. Here’s how to do both at the same time. Step one: Pay off your high-interest debt first. We typically think of anything over 6% as high interest, like credit card debt. Get rid of it; pay off your credit card debt on a monthly basis. This is the only thing we’ll agree with Dave Ramsey on.  Step two: Pay the rest of your debt normally. This includes your mortgages or student loans, which are usually less than 6%. Make those regular payments...and stop worrying about them. You can do it. Step three: Put the rest of your discretionary income into savings using a bucket strategy. At the same time you’re lowering your debt, you’re working toward positive net worth.  We talk a lot about our bucket strategy, but here’s a quick recap of how it works. You have three “buckets” to put your savings towards and we recommend using all of them to build your net worth. Using this strategy, you’re putting money towards all of these goals at the same time, letting these savings grow now so you can enjoy them later. Face Your Fears and Move Forward Getting over your fear of debt takes time and change can be scary. However, we hope that our explanation of where this fear comes from can help you start changing your mindset. Don’t waste time chipping away at your debt only, when you can be paying it down and building your assets at the same time to achieve positive net worth. Tune in to the full episode to get the full download on debt… and why it shouldn’t be ruling your life. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED Leaving Behind the “Punch Clock” Mindset, Episode 98 The “BULB” strategy, Episode 63 Dave Ramsey’s Debt Snowball Plan (boo, hiss) The Bucket Strategy’s first appearance in Episode 4

The robots have taken over. Just kidding. In reality, robots haven’t taken over — but they have taken over a major chunk of the financial industry in the form of robo-advisors. A lot of people assume that we’re going to bash on robo-advisors (“The robots are taking your jobs!”) or that we will tell them a human advisor is the only way to go.  But the truth is, we think robo-advisors are actually pretty useful. Of course, there’s a time and a place to use them, which is exactly what we cover in this episode of Wealth by Design. WHAT YOU’LL LEARN Dustin’s concerns about robo-advisors earlier in his career Why they’re not a threat to the financial planning industry What robo-advisors are  Why it’s not a question of which to use, but when to use each The questions that may come up around using a robo-advisor The major downside to robo-advisors (hint: it’s about customer service) The limiting beliefs that come when people consider hiring a financial advisor The biggest question clients have about an advisor The scary stories in the media that might discourage you from enlisting help What you should feel when you find the right robo-advisor 11:32 What robo-advisors can’t do (spoiler alert: it requires ears) How to have your cake and eat it too The risk of letting the noise win When to go with a robo-advisor The rise of the subscription advisor How a hybrid of human + robo-advisor can help you navigate complexity When you should go all-in on a human advisor The need for customization as you grow your wealth How Dustin + Danielle use robo-advisors in their own business WHAT IS A ROBO-ADVISOR… EXACTLY? You might not be using the term “robo-advisor,” but you might be using one. Sites like e-Trade, Charles Schwab, Ellevest, Betterment, Acorn, and others all offer an automated, algorithm-based, and accessible way to invest for a low cost. Usually, you can create an account, tell them your goals, the amount you wish to invest, and the types of stocks or funds you’d like to invest in (optional), and you’re off to the races. It’s that easy to start investing with robo-advisors, which we think is pretty neat.  Robo-advisors are: Algorithm-based. They take data to determine the best fit for your investment needs, and they pair you up with the right stocks and funds to make selection super easy and quick.  A little cookie-cutter. How could they not be? A robot can’t understand the nuances of every element of your financial life and goals (thank god). So, you’ll want to ask yourself, “Am I OK with a little cookie-cutter advice to get my investments off the ground?” Cheap. For those of you out there who are super conscious of price, robo-advisors are great. They’re some of the lowest-priced advisor services out there, but you know what they say — you get what you pay for. Pretty DIY. Robo-advisors don’t have a human advisor on the line, waiting to answer your calls. Sure, there’s tech support and a few resources to help with your questions, but they’re going to be fairly general. IS A ROBO-ADVISOR RIGHT FOR YOU? In this episode, we cover a lot of ground about what exactly a robo-advisor is, as well as when to choose one. We talk about scenarios that make you prime for a robo-advisor, like: When you are just starting out with investing.  If you’re a total DIYer with your finances. Your situation is pretty simple (no kids, not a ton of money to invest yet, etc.). We also walk you through the scenarios that might make a robo-advisor a “tighter squeeze” for you, such as if you: Have a thriving business and high levels of income (and no clue what to do with it). Are sick of DIYing your finances, or managing all the complexity alone. Are second-guessing the investments you’ve got now, or you’re not getting the results you want from them. Want a more customized, tailored financial plan that covers more than basic investing. Are worried about looming recession — or you’ve been hit hard by one. As we all know, robots aren’t human (#duh). That means that there are certain things lost in translation — things like supporting specific goals, understanding emotions around investing, and navigating complexity. That’s where we start recommending a hybrid: human and robots, unite!   THE HYBRID OPTION FOR YOUR INVESTMENTS If there’s one thing you take away from this episode, it’s that you do not have to choose one or the other, robots or humans. You can use both to optimize your financial plan and future. One suggestion we make is pairing your robo-advisor investments with a subscription advisor — this is new! With a subscription advisor service, you don’t have to have any investments with an advisor, but you can get the financial advice and plan you need to really focus on your financial life and goals. This is right for you if your situation is becoming be a bit more complex, i.e. you own your own business, want to understand estate planning, you have kids or a growing family, etc. but you don’t have a ton of interest in investing (or money to invest). This is something many advisors are beginning to offer because it comes without an investment requirement or minimum. You can get financial advice “on retainer,” so to speak, and your robo-advisor can continue to invest your money in the smaller accounts and portfolios you’ve selected. P.S. You can learn more about subscription advisor services with Toujours Planning. But if it’s to level up and really grow your long-term wealth so you can enter “revivement” or live that work-optional lifestyle, we do think that a human advisor is the best way to go. WHEN A HUMAN ADVISOR IS YOUR BEST OPTION We know just how much value a human advisor brings people, because we are human advisors! We think that deciding to go directly with a human advisor is a good decision for all the reasons you might choose a hybrid option… except for one big difference: you want the whole enchilada. You’re sick of DIYing. You’re losing money on robo-investments or not seeing strong growth for how much you’re investing. And you’re feeling the fear that comes with ups and downs in the market. In short, you need a sensei.  You want someone to create a custom plan for you, to walk you off the ledge if you’re getting spooked, and to help you come out stronger on the other side. Most of all, you’re ready for a custom financial plan and investment strategy that gets you from the hamster wheel of hustle to feeling secure, free, and wealthy.  You want to feel listened to, cared for, and like you don’t have to do the work yourself. You’re busy and you are ready for help. If that sounds like you, then you’re probably ready to work with a human financial advisor. THAT’S NOT ALL, FOLKS As you can probably tell by all the knowledge bombs we’ve dropped here, this episode is super in-depth and talks all about the benefits, downsides, connections, and scenarios that might help you decide where to start your investing journey. We also cover a lot of ground on mindset, what you might be feeling (or fearing) with your decision, and how to know if you’ve found the right fit. To get all the magic, make sure to tune into Episode 101. It’s short but jam-packed with great info that can help you really start to build long-term wealth, so don’t skip it! This material is for general information only and is not intended to provide specific advice or recommendations for any individual.   RESOURCES & PEOPLE MENTIONED The definition of a robo-advisor (Investopedia) Subscription advisor services The Toujours Planning Quiz — Are we a good fit for your financial planning needs?

How has your life changed in 2020? We’re not talking about how you’re learning how to bake bread, choosing Zoom backgrounds for your virtual meetings, or watching way too much Netflix.  We’re talking about how the intangible stuff has changed. Your values. Your priorities. Your life goals. Maybe you’re realizing that you want to make more time to spend with family. You might find that you want to pursue hobbies that make you happy. Or maybe you’ve realized you need to make lifestyle changes now in order to make your dreams come to life in the future. If the pandemic hasn’t pushed you to at least think about what’s important to you… well, we’re calling you to think about it now. In this episode of Wealth by Design, we’re also helping you figure out what’s important to you so you can start living your most ideal life. WHAT YOU’LL LEARN [01:01] How our lives (and priorities) have shifted lately [07:09] The importance of having a vision for your life [10:01] Ask yourself this question to start figuring out your vision [11:30] How will you live your life? [12:40] Confronting your mortality is scary, but necessary [14:10] What’s your “revivement” age? [15:34] Building a timeline for your goals Why do you need a vision? Whether you’re a go-with-the-flow kinda person or someone who thrives off of structure and deadlines, you can benefit from having some kind of roadmap for your life. It can get you back on course when life throws a curveball at you — for example, a curveball in the form of a global pandemic. Who’d ever see that coming?? Okay, you might be wondering, “Why are you talking about life choices and values? What’s that got to do with money?” Fair question! And the answer is… money is a big part of life. When you understand your values, goals, and priorities, you’ll start making financial decisions that are in line with them. Eventually, you’ll realize you can really enjoy life and find it fulfilling if your money choices are in line with your vision.  As Danielle says in this episode, “Just focusing on the money side of things doesn’t really serve you. We want you to start looking at your life in a different way.” You can start looking at your life in a different way by using our Vision Worksheet inside our resource library. (Psst...if you need something more detailed to plan out your financial future, there’s our new program called Wealth by Design™ DIY. Check it out.)  Start envisioning your ideal life There are three scenarios we want you to imagine when you start using our Vision Worksheet.  First, imagine that you are financially secure. You have enough money to take care of your needs now and in the future. How would you live your life? What would you do with your money? Would you change anything?  Then, imagine that your doctor tells you that you have five to ten years left to live. You won’t ever feel sick, but you also won’t know the exact moment of your death. What would you do in your remaining time? Would you change your life, and if so, how? Finally, let’s imagine that your doctor tells you that you have only one day left to live. How do you feel? What do you wish you had been, or seen, or done? These scenarios aren’t meant to scare you with the thought of death. Nor are they meant for you to think about for a few minutes and then file away for later. To truly sit with the idea of death and how you want to be living your life, you need to carve out some time to fill out the Vision Worksheet. Really think about the questions and be honest with your answers.  Live Intentionally From there, you can start crafting a timeline for your goals. Want to buy or build your dream home by a certain age? Start writing a book? Learn how to play an instrument? Work less and focus on your hobbies more? Assign these goals to the ages in which you want to accomplish them. Ta da! You’ve taken your first few steps to bringing your vision to life. We get it, y’all. The idea of death is scary. The idea of changing your life can be, too. But when you start living life intentionally, you’ll find more meaning and purpose in everything you do. And that’s an awesome feeling. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED   Get your free Vision Worksheet from our resources library! Join the Know Your Numbers challenge Learn more about revivement in Episode 65 Want more help? Check out our new program, Wealth by Design™ DIY!  Schedule a free call with us — Are we a good fit for your financial planning needs?  CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

Answer us this: which person needs estate planning the most?  A) Someone with two kidsB) Someone with a small business of their ownC) Someone who has property and possessions to pass onD) All of the above If you answered D, ding ding ding! You win. Say the term “estate planning” and people assume it’s only meant for people with kids, or that it’s used to pass on wealth and possessions. But it’s much more than that, and we know that everyone benefits from an estate plan. We talk about why in our latest podcast episode. WHAT YOU’LL LEARN  What estate planning usually includes Why most people avoid estate planning What happens when you don’t have an estate plan Basic estate planning documents you need A few things you may not have considered for your will The future of your business Think about life insurance Details to remember in your estate plan Where does your stuff go? Your estate is made up of all your possessions. Your home, your car, bank accounts, investments you’ve made, that yacht you use once in a while, the fabulous jewelry you inherited from your stylish grandmother, your prized collection of Air Jordans in your closet. All of that makes up your estate. So… what happens to it when you’re gone? An estate plan dictates who gets your property when you pass on. Your kids, your close family members and friends, nonprofit organizations you passionately supported, you get the idea. If you don’t have an estate plan to dictate where your stuff goes, a court usually decides. Can you imagine? As Danielle put it, “You don’t want someone else — a stranger — deciding who gets what.” Other parts of estate planning Estate planning involves more than your possessions. Your will, which is a basic estate planning document, takes care of those decisions. There are other estate planning documents you need, too.  Your power of attorney is one. A power of attorney is a document that gives another person the legal authority to make decisions on your behalf if you can’t. This person is called your power of attorney agent. A power of attorney agent might make decisions about your medical treatment, finances, assets, and more.  Many people choose their spouse or partner as their power of attorney agent, but consider the worst case scenario: you and your partner both pass away or become incapacitated at the same time. You may want to consider someone else just in case. That brings up another component of estate planning and why we need it: it protects your loved ones. You can appoint a guardian to care for your kids (or fur kids) should that worst case scenario play out.  Plus, you can explain what you want to happen when you pass away. If you want a funeral or memorial service, where it should be held, if you want to be cremated or buried, if you have money set aside to pay for funeral arrangements, etc. These are all important decisions that can be really difficult for your loved ones to make in the wake of your death.  “You don’t want your loved ones panicking, scrambling, stressing, paying… making all of these decisions when they should just be focused on grieving,” Danielle pointed out.  When you make those decisions ahead of time, you’re easing the emotional burden for your family members and friends.  Why people avoid estate planning If we all know why estate planning is good for us, then what’s the deal? Why do we all avoid it? Well, estate planning involves something that most of us are uncomfortable talking about: our deaths. What would happen if we were incapacitated, unable to think clearly, or couldn’t make our own decisions anymore? It’s obviously not the most fun topic of conversation at parties. After you pluck up the courage to talk about this stuff and get your estate plan in order, though, we promise you’ll feel hugely relieved. Take the first step to feeling better about estate planning and check out our full episode on the topic!  Then, you might want to check out our Wealth by Design DIY program… just FYI

How many times have you heard “Save for an emergency!” and “Save for retirement!” We’re not saying those aren’t super important things to save for… but what about the rest of your life? Things like buying a house some day, or having kids. Taking that 6-month sabbatical. Buying out your business partner. Starting another business. You don’t just have the cash sitting around for that, do you?? Probably not, which is why you need a savings goal for them, too. We know you might want to save for all of the above, or maybe for your own special thing, but popular saving advice doesn’t really tell how to get there. So we have a tip: fill your intermediate bucket. WHAT YOU’LL LEARN The “complete” bucket strategy How the financial planning industry is guilty of neglecting the intermediate bucket, too What you might want to spend your intermediate bucket on The questions you should be asking about your intermediate goals Why you shouldn’t focus on just short-term and long-term buckets What you can do right now to start filling your intermediate bucket What a “balanced” investment and savings strategy looks like THE MOST NEGLECTED BUCKET If you’re new around these parts, let us give you a quick rundown on our bucket strategy... You should be saving money for three buckets: Short-term (tomorrow to 2 years out) Intermediate (2 years to 10 years out) Long-term (10+ years out) The short-term bucket is often what people fill up (and spend) first, but we recommend that you take a look at your 2- to 10-year goals and see how much you want to save for those. For example, if you want to buy a house in the next 5 years, you might want to calculate how much you’d want to spend, and what a 10 or 20% down payment might look like. That’s your new intermediate savings goal! HOW THE HECK DO YOU SAVE THAT MUCH MONEY? Did you do the math above and felt your jaw drop at how much cash you might need to save? (Even if your goal isn’t buying a house, your goal might be expensive!) This is also why the intermediate bucket gets neglected — because people aren’t sure how to gather that much money. And the truth is: you can’t save that much cash. You’ll have to gain some compound interest with investments. Our advice? Invest monthly in a balanced portfolio. What in the world is that? Listen to the episode to find out! Want more quick tips like this? Make sure you’re subscribed to the Wealth by Design podcast! This material is for general information only and is not intended to provide specific advice or recommendations for any individual.  RESOURCES & PEOPLE MENTIONED Sign up for our free Know Your Numbers challenge! - we’ll help you figure out your bucket numbers! Episode 4: The Bucket Strategy The BULB Calculator Check out our DIY Financial Planning Course Our YouTube Channel Schedule a free call with us — Are we a good fit for your financial planning needs? The Toujours Planning Blueprint to Wealth + Security CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

Where do you get your financial advice? (Aside from us and the Wealth by Design podcast, of course.

Welcome to another minisode! This week, Danielle shares some quick tips and stories about the stock market, the 2007-2009 financial crisis, and the best kind of investment strategy you can use, pandemic or no pandemic. Look, we get it. It’s terrible when someone loses everything in a recession or stock market downturn. And you’re probably thinking about this stuff more frequently right now thanks to the coronavirus. However, you’ve gotta remember the other side to those horror stories: the people who lost everything probably bailed at the bottom of the market. That means they didn’t have anything invested when it skyrocketed to all-new heights. In this minisode, Danielle debunks the idea that everyone “lost it all” in the Great Recession, and what’s really going on when someone warns you away from investing. WHAT YOU’LL LEARN The other side of “losing it all” in the stock market What really happened in the 2009 crisis The best kind of investment strategy What a trusted advisor can do for you This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED A handy overview of the 2009 financial crisis The three types of fear in Episode 58 More stories about the financial crisis in Episode 104: The Laws of Human Nature  Looking for more investing wisdom? Check out our 3-part series, starting with Episode 17 Schedule a free call with us — Are we a good fit for your financial planning needs? The Toujours Planning Blueprint to Wealth + Security  CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

Do you know your numbers? We’re not talking about your numbers like how much you have in your checking account, or age and weight (which we shouldn’t be asking about anyway!). By “numbers,” we mean the three numbers that can help you ride out this COVID-19 crisis… or any big unexpected life change that comes your way. We’re talking about: How much money you really need to make Your emergency fund number Your BULB threshold In our latest Wealth by Design episode, we talk about calculating those three numbers and how you can actually reach them. WHAT YOU’LL LEARN [00:31] Why you need to “know your numbers” [03:45] The questions we’re all asking ourselves right now [06:09] How you know you’re financially secure   [06:58] Getting your finances (and mindset) in order  [10:04] What is your income need? [10:53] How to calculate your true income need number [11:35] Calculating your emergency fund number and BULB number [12:51] A quick note about reaching BULB status [14:35] How to get to those three numbers [17:07] Some resources and exciting news Calculating your income need and emergency fund What’s your true income need? As in… how much income do you need? To find that first number, look at an average month from the past six months. Look at your expenses; see what you spent on your mortgage or rent, groceries, utilities, and so on.  Use your favorite budgeting app or tool (or good ol’ paper and pen!) to calculate what you spent on your needs. Not your wants, but your needs. Everyone is different and we’re not about judging other people’s lifestyles, but see what extra expenses you can actually live without, like ordering takeout or shopping online.  Now that you have your income need number, you can figure out how much to set aside in your emergency fund.  Example: Let’s say your income need was $4,000. Your emergency fund should be, at minimum, 3 to 6 times that number. So, you should have $12,000 to $24,000 set aside in an easily accessible account.  Working toward BULB status We won’t go too much into detail about BULB here, but as a quick refresher, BULB stands for “backup life bank.” It’s a number that, once achieved, you can switch to a work-optional lifestyle if you want. That magical number is about 25 times your minimum income requirement.  And that minimum income requirement is everything you need to live the way you want, so you should include stuff like Netflix and your dream car and taking care of ten adopted pets. Your income need that we discussed in the previous section covers the basics and essentials. This number includes your needs and wants.  Example: So, let’s say you need $60,000 a year to live life the way you want. Your BULB number would about 25 times that, or about $1.5 million. Yes, it sounds like a lot, but there are ways you can make your money work for you to reach that number. (Hint: give Episode 63 a listen.) Why these numbers matter right now Look, we know things are scary right now. And we feel for those of you who may have seen business slow down, or missed out on opportunities to build up your savings before the coronavirus shut everything down.  As Danielle pointed out, about 26 million Americans have applied for unemployment benefits at the time of this recording — including contractors and gig workers. That number has probably increased even more while you’re reading this. However, knowing your numbers is important even when there isn’t a global pandemic running rampant. Life can throw you a curveball at any time, as we’ve seen with recent events. So you should always be prepared.  In times of international or personal crises, you need to know your numbers in order to feel financially secure. You should know how much income you need to keep you and your family going. You also need to know how much to have in your emergency fund so you can continue to survive.  In short, you need to Know Your Numbers, which is why we created a FREE challenge that helps you do just that. We’ll deliver these exercises right to your email so you know your numbers without a ton of overwhelming math, and you’ll know exactly what you can do today to feel more comfortable with the money you’ve got. If that floats your boat, sign up for the Know Your Numbers Challenge now!   This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED Sign up for our free Know Your Numbers challenge! Unemployment updates from MarketWatch Episode 63: Your BULB Threshold Episode 4: The Bucket Strategy The BULB Calculator Check out our DIY Financial Planning Course The Toujours Planning Blueprint to Wealth + Security Our YouTube Channel Schedule a free call with us — Are we a good fit for your financial planning needs?         CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

As of right now, things are looking pretty bad thanks to COVID-19. And as Dustin says in our latest minisode, things will probably get much worse. We’re not trying to scare you — we don’t need any more sources spreading fear, right? But we say this so you can prepare yourself for what’s going to happen. Preparing yourself is especially important if you’re a business owner.  The reality is, many businesses will fail. If yours doesn’t, the landscape is still gonna look very different after the coronavirus pandemic eases up. That’s why you need to be prepared for the worst and ready to face the challenges to come. So, in our latest COVID-19 Crisis Series, Dustin shares three actionable tips you can take to protect your biz, your finances, and your family. Check it out.  WHAT YOU’LL LEARN A quick pep talk for business owners Why you need liquidity right now “The Credit Paradox” Adapt to survive Streamline your investments and diversify your assets   This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED   MINISODE: The Importance of Liquidity in a Crisis Got more time? Here’s a full episode on liquidity The Paycheck Protection Program The Economic Injury Disaster Loan Emergency Advance The bucket strategy  The Toujours Planning Blueprint to Wealth + Security  Our YouTube Channel Schedule a free call with us — Are we a good fit for your financial planning needs?  CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

Dollar-cost averaging. It’s probably the most boring financial term ever. (We’re working on coming up with a new term. Anyone have any ideas? Anyone?) Snooze-inducing as it sounds, dollar-cost averaging is a super important technique that everyone should be using to invest. Why? Read on. WHAT YOU’LL LEARN [01:55] What dollar-cost averaging means [03:30] Why timing the market doesn’t work [04:24] The key to investing: don’t think about it [05:20] Some musings on stock market fear [08:14] Bring on the volatility! [09:34] Start low and stick to it Timing the market doesn’t work Brace yourself: we get topical in this episode. How could we not? Unless you’ve been living under a rock, you’ve probably been bombarded with minute-by-minute updates on COVID-19, aka coronavirus. Warnings against travel. The number of cases in the United States and worldwide. The number of deaths from coronavirus. And its impact on the stock market. There’s nothing wrong with staying up-to-date on important news — and we’re huge believers in washing your hands to prevent germs from spreading — but the point is, staying glued to the media 24/7 is not healthy, especially for your financial strategy. This kind of media consumption can trick you into thinking that the perfect time to invest is always just around the corner. “Well, if the stock market is down right now thanks to the coronavirus, it’ll go much lower soon! Then I’ll jump in and invest!”  Trying to time the market doesn’t work, folks. As Danielle said in this episode, you can always come up with a reason to wait to invest, whether the market is high or low. Rather than overthinking your investment strategy, or trying to find the “perfect” time to start investing, you need a consistent strategy that will weather the ups and downs of the market. That’s what dollar-cost averaging does for you. Why dollar-cost averaging works If you need a refresher on what dollar-cost averaging is, here you go: you invest the same amount of money each month, no matter what the market is doing. That’s really all there is to it! Essentially, dollar-cost averaging makes you buy less when the market is higher, and buy more when the market is lower, as Dustin put it. That’s the best way to invest. And it works best when the market does fluctuate a lot. Ready to get started? Then stick with a low dollar amount. Figure out what your budget will allow and automate it with your bank so you don’t have to worry about it. From there, increase your monthly purchase amount when you can afford to. This kind of commitment to investing will pay off for you now, and especially for your future self. Another note: don’t check your accounts daily. Especially when the markets are volatile. Just trust us on this one. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED   NerdWallet’s definition of dollar-cost averaging More on dollar-cost averaging in Episode 17 Stock market fear in Episode 104 The bucket strategy in Episode 4 Schedule a free call with us — Are we a good fit for your financial planning needs? The Toujours Planning Blueprint to Wealth + Security   Connect With Danielle and Dustin Ask Your Questions On Facebook On Twitter

Thanks to the continuing COVID-19 crisis, you’re probably hearing “the D-word” thrown around a lot. Yes, that big, scary D-word. “Depression.”  News outlets and public figures are warning us that we’re heading for a depression that rivals the Great one. Other news outlets and public figures are assuring us that it’s not all bad; you won’t get another opportunity in your lifetime to invest like you will now. So, who’s right? What should you do with your retirement accounts? Who do you listen to? (Us, of course.) If you’re looking for advice on handling your retirement accounts, Dustin breaks it down in our latest minisode. WHAT YOU’LL LEARN The one thing you need to ask yourself A rule of thumb for your retirement accounts Why you should stick to your strategy The number one secret to investing What to do if you don’t have a strategy Watch the video here: https://www.youtube.com/watch?v=KGF0Q1Yff3M This material is for general information only and is not intended to provide specific advice or recommendations for any individual.   RESOURCES & PEOPLE MENTIONED   Are we headed for a recession or a depression? How you can prepare your biz  How financial advisors use a Monte Carlo Analysis When human nature gets in the way of investing, Episode 104  Your secret weapon for investing, Episode 100 The Toujours Planning Blueprint to Wealth + Security  Our YouTube Channel Schedule a free call with us — Are we a good fit for your financial planning needs?     CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

Another day in quarantine, another minisode in our COVID-19 Crisis Series. This time, we’re talking about stimulus packages. You may have heard the terms “monetary policy” and “fiscal policy” thrown around a lot on the news in regard to the upcoming stimulus package, but what do those terms even mean? Sometimes they’re even used interchangeably. But there are big differences between the two, and we explain those differences (and how it affects YOU) in this minisode.  For one thing, monetary policy is usually managed by the Federal Reserve. Think interest rates and the amount of money in circulation. Fiscal policy, on the other hand, is determined by legislation. Fiscal policy has to do with taxation and government spending. Both monetary policy and fiscal policy are being used right now in stimulus packages to address the effects of our dear old friend, the coronavirus.  So, what’s in these stimulus packages? How do they help you specifically? Our latest minisode explains it all. WHAT YOU’LL LEARN Why the Federal Reserve cuts interest rates What “quantitative easing” means How fiscal policy is different from monetary policy How Congress puts money into people’s hands Monetary policy in place right now Three major laws recently passed by Congress What the CARES Act does Is there a fourth stimulus package coming? This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED Our minisode on liquidity Episode 66: Your Business Runs on Liquidity (So Should You) The multi-trillion dollar infrastructure bill  The Families First Coronavirus Response Act A guide to the CARES Act About that fourth stimulus package... The Toujours Planning Blueprint to Wealth + Security  Our YouTube Channel Schedule a free call with us — Are we a good fit for your financial planning needs? CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

As part of our COVID-19 Crisis Series, we’re covering what you need to know about market uncertainty and your money during these unprecedented times. In our newest minisode, we talk about the most important thing you need to keep in mind during this crisis: liquidity.  Liquid assets are assets that you can easily sell or buy without affecting the asset’s price. The value of illiquid assets, like real estate, can fluctuate or decrease. During a crisis, you need liquid assets to protect yourself for what’s happening and what’s to come. As Danielle says in this minisode, we don’t know how long this is gonna last or how bad it’s gonna get. Having liquidity — cash on hand — can support you through a crisis. So, how can you get liquid assets right now and in the future? Spoiler alert: it doesn’t necessarily mean it’s time to make a run on the banks.  Instead, listen to these tips on how to infuse a little extra cash into your life (without risking your future potential wealth).  WHAT YOU’LL LEARN Dustin’s experience in the 2008 financial crisis The importance of liquidity The “domino effect” of cash in a crisis Stimulus measures you can take advantage of right now Why you should open up more credit lines if you can How you can use your debt rather than pay it down What you might do with your bills and savings This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED More stories from the 2008 crisis in Episode 104 More on liquidity in Episode 66 The Paycheck Protection Program The Economic Injury Disaster Loan Emergency Advance The Louisiana Loan Portfolio Guaranty Program (LPGP) The Toujours Planning Blueprint to Wealth + Security  Our YouTube Channel Schedule a free call with us — Are we a good fit for your financial planning needs?  CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter  

Our minisode series on the COVID-19 pandemic continues to roll out, and in our latest episode, we tackle a question many of y’all probably have on your minds: is this a short-term or a long-term thing? We’re in a bear market, the possibility of a recession is looming on the horizon...so how long is this gonna last?  We can’t tell you exactly how long things will last, of course. We aren’t wizards (yet). But we can share some helpful advice to help you get through it. In this minisode, we talk about what we can expect based on historical data, how long “crisis mode” may last, and what you should remember so that you don’t give in to the panic and fear.  WHAT YOU’LL LEARN How long “crisis mode” might last How long the actual recession might last, historically speaking The way overinflation can fool us Keep the long term in mind Positive takeaways from previous recessions   This material is for general information only and is not intended to provide specific advice or recommendations for any individual.   RESOURCES & PEOPLE MENTIONED The Toujours Planning Blueprint to Wealth + Security to Wealth + Security Our YouTube Channel Schedule a free call with us — Are we a good fit for your financial planning needs?  CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

As we’re now officially shoulder-deep into quarantines from COVID-19 and continue to experience uncertainty in our daily lives, as well as the stock market—we’ll be providing periodic updates on what’s happening, how to interpret it, plus any actions you can be taking right now as a result of any developments. As of late March 2020, we’re officially in a bear market, which is sparking a lot of questions and stoking the recession fires. We know that what’s happening in the stock market right now can be incredibly confusing and you’re wondering what all this means for you and your business. This week we’re giving a layman’s terms update on what’s happened these last two weeks in the market and what you can do right now in the midst of the chaos.  WHAT YOU’LL LEARN How the pandemic is affecting the stock market Why we’re seeing wild swings in the market and what they mean When will the stock market stabilize?  What officially being in a bear market means for your business Are we in a recession? Three things you can do right now  Watch the video here: https://www.youtube.com/watch?v=OjTFTiDyiao&t=2s This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED Schedule a free call with us — Are we a good fit for your financial planning needs? CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

As coronavirus continues to create uncertainty in our daily lives that’s being reflected in the stock market, we’re starting to hear more and more talk about an oncoming recession. And while we’ve not yet been declared to officially be in a recession (as of the time of this recording)—we are overdue. Fortunately for entrepreneurs, our job description is to help people by solving problems. And while a recession brings problems to light, it also brings opportunities for entrepreneurs to solve those problems. We know that this can be an incredibly uncertain time, and you’re likely wondering how to be proactive and help prepare your business for a potential recession once the coronavirus quarantines are over. Dustin and Danielle give their 3 best ways in this short video, which we hope helps calm some of your fears and answers some of your questions. WHAT YOU’LL LEARN Is this market uncertainty from coronavirus quarantines going to result in a recession? What is a recession and how does it work? Options to increase cash flow Ideas to prepare for what the economy may look like for businesses after COVID-19 Watch the video here: https://www.youtube.com/watch?v=vhkuSsFSBmA This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED Schedule a free call with us — Are we a good fit for your financial planning needs? We dive deeper into some of these preparedness topics in our episode 97, What You Need To Know So You Can Prepare for 2020. CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

March 2020 is one for the books. The coronavirus has reached pandemic level, many cities and states are issuing quarantines and shutdowns, and the stock market… well. The stock market is a reflection of just how crazy our lives are right now. We know that this can be an incredibly scary time, and you may have questions about your investments. Danielle is answering them in this short video, which we hope helps calm some of your fears and answers some of your questions. WHAT YOU’LL LEARN The #1 question we hear from clients and listeners How long a recession usually lasts The difference between greed and fear in the stock market right now Why it’s important to remember that no one has a crystal ball The mentality you need to embrace to handle this stock market Watch the video here: https://www.youtube.com/watch?v=TEtnRQG4wQ0&feature=youtu.be RESOURCES & PEOPLE MENTIONED The Toujours Planning Quiz — Are we a good fit for your financial planning needs? The Toujours Planning Blueprint to Wealth + Security  CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

Our society is obsessed with not paying taxes. Just take a look at some of these famous quotes about taxes (that the IRS themselves put together!): "The power of taxing people and their property is essential to the very existence of government.'' James Madison, U.S. President “Few of us ever test our powers of deduction, except when filling out an income tax form.” Laurence J. Peter, author “I am proud to be paying taxes in the United States. The only thing is – I could be just as proud for half the money.” Arthur Godfrey, entertainer “The hardest thing in the world to understand is the income tax.” Albert Einstein, physicist and Albert freakin’ Einstein Americans are obsessed with having to pay taxes and finding ways to avoid doing so. We get it, but sometimes that fear can go too far and mess with your investing strategy. That’s what we’re here to clear up. WHAT YOU’LL LEARN [01:39] Dustin’s cautionary tale about taxes clouding your judgment [05:30] Our fear of tax consequences [08:50] Society’s obsession with taxes [10:28] Changing your tax mindset [11:55] All about ETFs, or exchange-traded funds [14:48] The oh-so-valuable bucket strategy [16:43] A great tip about long-term capital gains Fear and Taxes Dustin kicked off this episode with a cautionary tale about a previous client from back in the day. This client put all his stock into the company he used to work for before retirement. One company. That basically meant his future hinged on the success or failure of this one company. When Dustin advised him to sell his stock when they were at a high, he declined. Why? Because he would have had to pay taxes. We’re not quite sure where the obsession with (not) paying taxes came from, but that’s not really the point of our episode. What matters is how your tax mindset affects your investment strategy. More specifically, how your fear of tax consequences can hold you back. (There’s our good ol’ friend fear again!) When your feelings about taxes stop you from making good investment decisions, that’s when it starts to become a problem.  It Starts With Changing Your Tax Mindset The good news is, you can get over your fear of tax consequences and start investing with confidence. To start, you need to change your tax mindset.  We’re big believers in understanding financial fears, because that’s the first step in overcoming them. Ask yourself, what do you believe about taxes? Are you on former president James Madison’s side, or do you lean more towards Arthur Godfrey’s? Are taxes a necessary good or a necessary evil?  Try thinking of taxes simply as “the cost of doing business,” as Dustin put it in this episode. Rather than seeing the negative (the government took out $30k of the $100k I made!) try to see the positive instead (I took home $70k, awesome!). Maybe it sounds a little dorky to focus on the positive, but it goes hand in hand with our second of Nine Commandments: net worth is king. Focus on your assets, or the positive, rather than your debts, or the negative. It’s a great perspective you can use for your taxes, too. ETFs and Capital Gains After you change your mindset, there are few other strategies you can use to tackle taxes and investing. We talk about each strategy more fully in the episode (meaning… tune in!), but let’s review here real quick. One is ETFs, or exchange-traded funds. Simply put, with ETFs, you don’t have to pay extra taxes on capital gains distributions each year. Speaking of capital gains, we shared another strategy for saving money on taxes: by holding your investment for a year. Capital gains are essentially a profit you make from selling an asset like a stock. Say you buy a stock at $10 and it grows to $15. If you sell that stock within a year, you have to pay taxes on that $5 difference you made! That’s because it’s treated as income. But if you hold it for longer than a year, you only have to pay long-term capital gain taxes. For most people who bring in a certain amount of income, that tax is zero. Zip. Nada. For other people who bring in almost $500k, long-term capital gain tax is still pretty low. So by holding off for a year, you spend less money on taxes. Have Your Eyes Glazed Over Yet? We know, we know: tax information can get crazy confusing fast. And when you’re new to investing, that fear of paying more taxes than you think you need to can be really scary. That’s why working with a CERTIFIED FINANCIAL PLANNER™ (and listening to the Wealth by Design podcast!) can help you understand your options and build a smart investment strategy.   This material is for general information only and is not intended to provide specific advice or recommendations for any individual.   RESOURCES & PEOPLE MENTIONED   How to Be the Boss of Your Own Money, Episode 78   More about ETFs in Episode 68 The Bucket Strategy in Episode 4 Schedule a free call with us — Are we a good fit for your financial planning needs?   CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

We’ve got something new for you! Every couple of weeks, we’ll be mixing up the style of our podcast: 1 week will be long-form and the following week will be a minisode. These are super short-and-sweet tips to help you get your financial house in order, get the DL on what’s going on in the economic world, and generally empower you to live life on your terms! With that said, let’s dive into this week’s episode: What is a Work-Optional Lifestyle & How Can You Get There? The most exciting part? You can choose your own adventure: listen to the audio above (or on your podcast app) or pop over to the video to watch this 2-minute clip right now! WHAT YOU’LL LEARN: What the goal of our work really is What BULB stands for How you can calculate your BULB number How to start putting money toward your BULB Why we believe in a work-optional lifestyle instead of retirement As we’ve mentioned before on this podcast, we’re big fans of the BULB. BULB, which stands for back-up life bank, is not a complex number to figure out. From there, it’s all about investing and saving enough to get you to reach that number. If you’re a successful business owner and are committed to investing and saving, you’ll be surprised how fast you do reach BULB status! But of course, you’ll have more questions. That’s why we’re sharing all our BULB resources down below so you can continue the exploration! We all want a work-optional lifestyle, but only those who are committed to reaching BULB status will get there. Is that you? RESOURCES & PEOPLE MENTIONED Our BULB Calculator, which you can find in our FREE go-to financial and life planning resources   All about “BULB”: Ep. 85: Adulting 101 Series: Saving Ep. 063: Self-Employment & Retirement The Toujours Planning Quiz — are we a good fit for your financial planning needs? Toujours Planning Blueprint to Wealth + Security     This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

Have you ever heard about penny stocks? Are you wondering what they are and if you should be getting in on that action? We’re covering everything about penny stocks in this episode of Wealth by Design, so buckle up. Warning: we do not shy away from our opinions about penny stocks in this episode!   WHAT YOU’LL LEARN [01:20] What is a penny stock? [03:01] How Dustin was introduced to penny stocks [06:10] The reality of Dustin’s dot com story [08:19] Common misconceptions with penny stocks [09:54] The type of investment strategy you should have [10:34] Why penny stocks exist [12:10] All about pump and dump scams (yes, like in The Wolf of Wall Street) [14:22] Our final verdict on penny stocks   What Are Penny Stocks? Penny stocks, as their name implies, are stocks that trade for less than $5 per share. You’ll find lots of penny stocks that cost less than a dollar or even less than a penny. Of course, that’s part of their appeal. These cheap stocks seem attractive when compared to companies that trade at much higher amounts. But you may have heard people (or “influencers”) talking about how they’re making money fast on penny stocks and you may be wondering if you need to get in on the scheme. We’re here to talk you down. The Draw of Penny Stocks In this episode, we mentioned the “viral” factor when it comes to penny stocks. It might seem like everyone around you is talking about a specific penny stock and making money on it. Eventually, you start to feel the pressure. Should you become a ground floor investor? Will you hit it big with this underdog company? It’s natural to feel that adrenaline rush when you think you may have discovered a “diamond in the rough,” as we described it. But we’re going to play devil’s advocate for a moment and bring you back to reality. A good long-term investment strategy should never make you feel pressured into buying anything. Investing should never feel like a potential lottery win. You want an investment strategy that’s stable and disciplined, not one that’s volatile and hard to research. That’s what penny stocks are, however, and those are huge red flags. If you hear your friends, coworkers, or acquaintances talking about “the next big thing” in stocks, be wary: it might be a pump and dump scam. (You may have heard of pump and dumps in 2013, thanks to The Wolf of Wall Street movie based on the real-life Wolf of Wall Street, Jordan Belfort.) Be on the lookout for penny stocks that seem like they’re on fire at the moment. That’s a pretty good sign that they’ll burn out quickly, and that they’re actually worthless.  How Penny Stocks Actually Work We hear you wondering: “If penny stocks are so unpredictable, why does anyone even invest in them?” We’ve already talked about why people might take a chance on penny stocks: the FOMO, the rush of adrenaline, and the desire to feel like you’re a ground floor investor in an underdog company. Now let’s look at the company side of things. Penny stocks are not arbitrary. They may be companies that have failed and are now actually worth pennies. Companies that have failed but still have some type of worth tied up in their business, like tons of land, for example. On the other hand, companies may start out as penny stocks, which can be even worse!  Companies who start out as penny stocks can manipulate their price purposefully to skirt regulation. Penny stocks are called “over-the-counter stocks” since they don’t trade on a regulated exchange, like the Nasdaq or New York Stock Exchange. Instead, they’re traded in an OTC exchange. And when you’re dealing with companies who manipulate prices and skirt regulation, it’s the Wild West out there, as Dustin put it. It’s a lawless place that you should avoid. Our Final Verdict on Penny Stocks Technically, we’re not allowed to give specific investing advice. But we made an exception for this topic. How do we feel about penny stocks? DON’T. BUY. THEM. You’ll hear us get pretty emphatic about this in the episode.  Buying penny stocks is the opposite of the kind of investing strategy we want you to have! We want you to have a diversified, disciplined, long-term investing strategy. You won’t find that with penny stocks. Just don’t do it, folks.  This material is for general information only and is not intended to provide specific advice or recommendations for any individual.   Resources & People Mentioned Episode 104: The Laws of Human Nature  The true story behind The Wolf of Wall Street One of our many resources: A blueprint guide to wealth The Toujours Planning Quiz — Are we a good fit for your financial planning needs?

What do children’s fables, dog memes, human nature, and investing have to do with each other? Well, you just might have to listen to the full episode to understand. In a nutshell, though, Episode 104 is all about human nature and how it can work against us when it comes to investing. Fear of the unknown and fear of failure can hold us back. And greed can lead us down some bad paths and entice us to make poor decisions that we’ll pay for later.  WHAT YOU’LL LEARN [00:50] The enemy of investing [02:10] A famous quote on investing from Warren Buffett [04:22] How financial advisors temper your expectations [07:13] The roles fear and greed play in your finances [08:21] A case study on fear during the 2008 financial crisis [12:15] A quick detour into fables and fairy tales [17:24] Herd mentality and normalcy bias [20:35] How to fight fear and greed You Can’t Always Count on Your Golden Eggs We kicked off this episode with a famous quote from Warren Buffett: “Be fearful when others are greedy and greedy when others are fearful.” What the heck does that mean? When it comes to investing, it means to be contrarian: Do your own thing. Ignore the herd mentality of doing what everyone else is doing. Don’t give in to the FOMO.  To be clear, yes, Warren Buffett is telling us to be fearful and greedy when others are not. As an investment strategy, it works. But when we talk about actual fear and greed, it’s important to be strong and not give in to those feelings. If you’ve ever heard the story, The Goose and the Golden Egg, you know that we’re all supposed to be patient and avoid greed (but also, Danielle believes this story exists to scare adults). The fable has a message for all of us: nothing is certain and you can’t always count on your golden eggs to keep coming. But if we’re supposed to avoid those feelings of fear and greed, how should we feel when investing? You want to strive for some feelings of normalcy and control, as Dustin put it. Take the “this is fine” meme of the dog sitting calmly in a room that’s on fire — “the meme of our times” as we talk about it in the episode. https://gph.is/2h8wI3B  The dog knows what’s going on around him and accepts it. It’s fine. Everything’s fine. It’s a little extreme (and super funny) but that sense of calm and order is what you should aim for when investing.   What You Need to Fight Fear and Greed So, how do you achieve calm and fight off those feelings of fear and greed? How do you find the eye in the middle of the storm? The first thing you need to do is acknowledge those emotions. Know they exist and accept them. You can’t get rid of those emotions and stop them from happening. But you can understand that they’ll pop up and rear their ugly heads once in awhile.  If you can’t get rid of ‘em, have a plan to deal with ‘em. Build a solid portfolio or investment strategy that will last you through those times of fear and greed. They should also last you through the good times, too! We can easily become overconfident when things are going well and make some not-so-great decisions. The point is, your portfolio or financial strategy should be strong enough to weather the good times and the bad. And it should be so strong that you don’t feel the need to obsess or check on your investments every day. Finally — and we’re not just saying this because we’re in the financial planning biz ourselves — hire a trusted advisor to help you. A good financial advisor will basically act as your babysitter. They’ll hold your hand when things get rough and talk to you down from the ledge. And those times when things are going a little too well? They’ll keep you grounded and give you a reality check when you need it.  This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED Warren Buffett’s quote on investing, seen in action The Goose and the Golden Egg  Dollar-Cost Averaging in Episode 17 The Bucket Strategy in Episode 103 “Putting a value on your value” the Vanguard study  The Toujours Planning Quiz — Are we a good fit for your financial planning needs?  

What’s the most important part of your financial strategy? Creating an emergency fund? Saving and investing? Understanding what money goals you need to set for your priorities? Trick question, it’s kind of all three. In this week’s episode, we’re revisiting an old friend who you may have heard a lot about on this show: the bucket strategy. That’s right, folks. But this time, we’re paying special attention to the middle child of the strategy, the intermediate-term bucket.  We talk about why you may have been neglecting that middle bucket, as well as how you should be using our bucket strategy overall, in this episode. WHAT YOU’LL LEARN [00:40] Why we’re diving into the intermediate-term bucket in this episode [05:22] Reviewing the bucket strategy [06:46] Accounts you might have for each bucket category [10:51] Why the focus is all on retirement [12:27] Why you might be neglecting your intermediate bucket [13:29] The number one asset you have in investing (hint: we talk about it a lot) [14:25] Be the conductor of your own money (we get nostalgic for a minute) [16:17] Problems with the financial industry [19:49] How to make your bucket strategy work for you [23:11] Fill your buckets according to your priorities Accounts on your bucket list (pun intended) First up: let’s talk about the accounts you might use for each bucket. Remember that each “bucket” is a category, not an account itself. You may have multiple accounts to fill each bucket, and you need at least one account to start.  Your short-term bucket includes money you need between now and the next two years. That might include your regular checking account and a separate emergency fund account, which should be three to six months of living expenses saved.  On the other end of the strategy, you have your long-term bucket which you’ll use to save for retirement or revivement. This includes your retirement accounts: Roth IRAs, 401k, and so on. You may even have a separate investment account if you want to save more than the maximum in a retirement account, or if you’re planning to retire early. (More on that in a bit.) That leaves us with the intermediate-term bucket, which you’ll use for mid-range goals you hope to achieve in two to ten years. A down payment for a house, paying for college, or buying a new car are common mid-range goals. A lot of us don’t spend enough time tending to this bucket, probably because the focus in the finance industry and the media is all on savings and retirement in your long-term bucket.  How to make your bucket strategy work for you The first step in your bucket strategy? Y’all know this: create an emergency fund with at least three months of living expenses. And at the same time, if you have a 401k, start getting your matching so you can get that free money! Reaching both of these goals is important for your first step. No 401k? No problem. Focus your energy on hitting that emergency fund amount as soon as possible, especially if you have kids. Next, you’ll want to pay some attention to the other two buckets. If you don’t have a 401k, you’ll want to start contributing to a long-term investment account. Planning on retiring traditionally around 60 to 65 years old? Begin contributing to an IRA or a Roth IRA. Hoping to buy a house within the next few years? Set aside money for your down payment. Look at your goals and budget, and decide where your money needs to go. Once you know, set up payments automatically so you don’t have to think about it. It’s just ready and waiting when the time comes. Let’s say you’re one of those cool kids who wants to enter retirement, or revivement, at a younger age. Props to you. To make that happen, you’ll want to contribute to an additional non-retirement account that doesn’t have any restrictions. Why? Without this account, you’ll have to pay penalties to dip into those retirement accounts early, when you’re ready to retire at 50 years old. And that’s no fun.  Be the magic conductor Remember that scene in Fantasia where Mickey Mouse waves his magic wand and makes all the brooms start cleaning the castle for him? Mickey found a way to work smarter, not harder. That’s how your relationship with your money should be. You’re the conductor, and you’re in charge. Make your money work for you. It takes some time to set up at first, but once you do, you’re golden. Don’t miss out on that. Be Mickey.   This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED Where The Bucket Strategy all began: Episode 004 Where fears of the financial industry come from: Episode 102 Revivement revisited: Episode 65 The Toujours Planning Quiz — Are we a good fit for your financial planning needs?  CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

We talk about fear a lot on our podcast. Fear is natural and, TBH, necessary. But when it comes to finances, three types of fear tends to hold us back: from investing, from charging clients what we’re worth, or from taking chances when building a business. Fear can also make you focus on the wrong thing when it comes to your net worth. Paying down debt rather than building up your assets, to be specific. And that’s what we discuss in this week’s episode: where our fear of the “debt boogeyman” comes from, our three-step strategy on how to overcome it, and what part of your finances you should be focusing on instead.  WHAT YOU’LL LEARN [00:46] The first of our Nine Commandments [01:25] What is your net worth? [01:54] Debt vs. assets: which should you focus on more? [04:01] How we got inspiration for this episode [09:38] Why the Dave Ramsey way of looking at debt is problematic [10:54] The types of assets you need [13:41] Where did Millennial “fear of debt” come from? [16:15] How to change your debt-fearing mindset [17:44] Steps to building a positive net worth [20:46] A couple of analogies for paying down debt and building assets   Assets - Liabilities = Net Worth “Net Worth is King.” That’s our second of Nine Commandments, after “Leave the Punch Clock Mindset Behind.” (A little insider info for you: we’ll be talking about our other commandments in future episodes!) So what is your “net worth,” exactly? Simply put, your net worth = your assets - your liabilities.  You want a positive net worth, which is where you have more assets than liabilities. “Own more things than you owe,” as Dustin put it in this episode. As simple as that sounds, we see more people focus on paying down their debt rather than building their assets. That’s partly because our culture focuses on debt so much, even though assets are just as important, if not more so.    The Problem with Focusing on Debt Let’s be real: our society’s obsessed with debt.  And honestly, we blame Dave Ramsey and his Debt Snowball Plan. Yeah, we said it.  We won’t go into too much detail about his methodology (which we have linked in the show notes if you’re really interested), but generally, he advises people to attack their debt first. Once it’s all gone, then you should invest, he says. But there’s a fatal flaw in that plan: all those years you spend paying down debt only are years you could be saving thanks to compounding interest! But we keep shooting ourselves in the foot by paying down debt… because we’re scared! Where does this fear of the debt boogeyman come from? Our parents dealt with the highest interest rates ever to date in history, from the mid-1960s to the mid-1990s. Which, by the way, is the generation that Dave Ramsey comes from. We Millennials were raised to believe that we have to be debt-free before we save or invest. (Thanks, Mom and Dad.) Now, over the last 10 years, interest for debt is at one of the lowest it’s ever been. This means that the Baby Boomer mentality of fearing debt doesn’t really make sense anymore. We need a new way of thinking about debt and assets. How to Work Towards a Positive Net Worth We’ll lead the charge on getting rid of that debt-fearing mindset. Instead of looking at debt as some horrific monster, think of it as a necessary presence instead. You can and will deal with it, but other parts of your financial strategy are more important and will make a bigger impact on your wealth.  Think of it this way: even if you pay down your debt to zero, if you haven’t been saving until that point, you have no wealth. Zero is then your starting point, which is a waste. Choosing the right assets and focusing on saving — at any income level — is more important than paying down debt. Here’s how to do both at the same time. Step one: Pay off your high-interest debt first. We typically think of anything over 6% as high interest, like credit card debt. Get rid of it; pay off your credit card debt on a monthly basis. This is the only thing we’ll agree with Dave Ramsey on.  Step two: Pay the rest of your debt normally. This includes your mortgages or student loans, which are usually less than 6%. Make those regular payments...and stop worrying about them. You can do it. Step three: Put the rest of your discretionary income into savings using a bucket strategy. At the same time you’re lowering your debt, you’re working toward positive net worth.    We talk a lot about our bucket strategy, but here’s a quick recap of how it works. You have three “buckets” to put your savings towards and we recommend using all of them to build your net worth. Using this strategy, you’re putting money towards all of these goals at the same time, letting these savings grow now so you can enjoy them later. Face Your Fears and Move Forward Getting over your fear of debt takes time and change can be scary. However, we hope that our explanation of where this fear comes from can help you start changing your mindset. Don’t waste time chipping away at your debt only, when you can be paying it down and building your assets at the same time to achieve positive net worth. Tune in to the full episode to get the full download on debt… and why it shouldn’t be ruling your life. This material is for general information only and is not intended to provide specific advice or recommendations for any individual.   RESOURCES & PEOPLE MENTIONED Leaving Behind the “Punch Clock” Mindset, Episode 98 The “BULB” strategy, Episode 63 Dave Ramsey’s Debt Snowball Plan (boo, hiss) The Bucket Strategy’s first appearance in Episode 4

The robots have taken over. Just kidding. In reality, robots haven’t taken over — but they have taken over a major chunk of the financial industry in the form of robo-advisors. A lot of people assume that we’re going to bash on robo-advisors (“The robots are taking your jobs!”) or that we will tell them a human advisor is the only way to go.  But the truth is, we think robo-advisors are actually pretty useful. Of course, there’s a time and a place to use them, which is exactly what we cover in this episode of Wealth by Design. WHAT YOU’LL LEARN 01:30 Dustin’s concerns about robo-advisors earlier in his career 01:48 Why they’re not a threat to the financial planning industry 03:37 What robo-advisors are  04:24 Why it’s not a question of which to use, but when to use each 05:22 The questions that may come up around using a robo-advisor 07:11 The major downside to robo-advisors (hint: it’s about customer service) 08:00 The limiting beliefs that come when people consider hiring a financial advisor 09:32 The biggest question clients have about an advisor 09:40 The scary stories in the media that might discourage you from enlisting help 11:07 What you should feel when you find the right robo-advisor 11:32 What robo-advisors can’t do (spoiler alert: it requires ears) 11:47 How to have your cake and eat it too 13:25 The risk of letting the noise win 15:27 When to go with a robo-advisor 16:42 The rise of the subscription advisor 17:08 How a hybrid of human + robo-advisor can help you navigate complexity 18:19 When you should go all-in on a human advisor 19:16 The need for customization as you grow your wealth 20:02 How Dustin + Danielle use robo-advisors in their own business WHAT IS A ROBO-ADVISOR… EXACTLY? You might not be using the term “robo-advisor,” but you might be using one. Sites like e-Trade, Charles Schwab, Ellevest, Betterment, Acorn, and others all offer an automated, algorithm-based, and accessible way to invest for a low cost. Usually, you can create an account, tell them your goals, the amount you wish to invest, and the types of stocks or funds you’d like to invest in (optional), and you’re off to the races. It’s that easy to start investing with robo-advisors, which we think is pretty neat.  Robo-advisors are: Algorithm-based. They take data to determine the best fit for your investment needs, and they pair you up with the right stocks and funds to make selection super easy and quick.  A little cookie-cutter. How could they not be? A robot can’t understand the nuances of every element of your financial life and goals (thank god). So, you’ll want to ask yourself, “Am I OK with a little cookie-cutter advice to get my investments off the ground?” Cheap. For those of you out there who are super conscious of price, robo-advisors are great. They’re some of the lowest-priced advisor services out there, but you know what they say — you get what you pay for. Pretty DIY. Robo-advisors don’t have a human advisor on the line, waiting to answer your calls. Sure, there’s tech support and a few resources to help with your questions, but they’re going to be fairly general. IS A ROBO-ADVISOR RIGHT FOR YOU? In this episode, we cover a lot of ground about what exactly a robo-advisor is, as well as when to choose one. We talk about scenarios that make you prime for a robo-advisor, like: When you are just starting out with investing.  If you’re a total DIYer with your finances. Your situation is pretty simple (no kids, not a ton of money to invest yet, etc.).   We also walk you through the scenarios that might make a robo-advisor a “tighter squeeze” for you, such as if you: Have a thriving business and high levels of income (and no clue what to do with it). Are sick of DIYing your finances, or managing all the complexity alone. Are second-guessing the investments you’ve got now, or you’re not getting the results you want from them. Want a more customized, tailored financial plan that covers more than basic investing. Are worried about looming recession — or you’ve been hit hard by one.   As we all know, robots aren’t human (#duh). That means that there are certain things lost in translation — things like supporting specific goals, understanding emotions around investing, and navigating complexity. That’s where we start recommending a hybrid: human and robots, unite!   THE HYBRID OPTION FOR YOUR INVESTMENTS If there’s one thing you take away from this episode, it’s that you do not have to choose one or the other, robots or humans. You can use both to optimize your financial plan and future. One suggestion we make is pairing your robo-advisor investments with a subscription advisor — this is new! With a subscription advisor service, you don’t have to have any investments with an advisor, but you can get the financial advice and plan you need to really focus on your financial life and goals. This is right for you if your situation is becoming be a bit more complex, i.e. you own your own business, want to understand estate planning, you have kids or a growing family, etc. but you don’t have a ton of interest in investing (or money to invest). This is something many advisors are beginning to offer because it comes without an investment requirement or minimum. You can get financial advice “on retainer,” so to speak, and your robo-advisor can continue to invest your money in the smaller accounts and portfolios you’ve selected. P.S. You can learn more about subscription advisor services with Toujours Planning. But if it’s to level up and really grow your long-term wealth so you can enter “revivement” or live that work-optional lifestyle, we do think that a human advisor is the best way to go. WHEN A HUMAN ADVISOR IS YOUR BEST OPTION We know just how much value a human advisor brings people, because we are human advisors! We think that deciding to go directly with a human advisor is a good decision for all the reasons you might choose a hybrid option… except for one big difference: you want the whole enchilada. You’re sick of DIYing. You’re losing money on robo-investments or not seeing strong growth for how much you’re investing. And you’re feeling the fear that comes with ups and downs in the market. In short, you need a sensei.  You want someone to create a custom plan for you, to walk you off the ledge if you’re getting spooked, and to help you come out stronger on the other side. Most of all, you’re ready for a custom financial plan and investment strategy that gets you from the hamster wheel of hustle to feeling secure, free, and wealthy.  You want to feel listened to, cared for, and like you don’t have to do the work yourself. You’re busy and you are ready for help. If that sounds like you, then you’re probably ready to work with a human financial advisor. THAT’S NOT ALL, FOLKS As you can probably tell by all the knowledge bombs we’ve dropped here, this episode is super in-depth and talks all about the benefits, downsides, connections, and scenarios that might help you decide where to start your investing journey. We also cover a lot of ground on mindset, what you might be feeling (or fearing) with your decision, and how to know if you’ve found the right fit. To get all the magic, make sure to tune into Episode 101. It’s short but jam-packed with great info that can help you really start to build long-term wealth, so don’t skip it!   This material is for general information only and is not intended to provide specific advice or recommendations for any individual.   RESOURCES & PEOPLE MENTIONED The definition of a robo-advisor (Investopedia)   Subscription advisor services   The Toujours Planning Quiz — Are we a good fit for your financial planning needs?

Let’s address the elephant in the room first: what does the phrase “stock market” mean to you?  Fear! Panic! Crash!  We get it. But we’re here to tell you… the stock market ain’t that bad! There are a lot of misconceptions about investing in the stock market, thanks to fear-mongering in the news, horror stories from family and friends, and a lack of education about the stock market in general. Your fears are valid, but they can also hold you back from growing your wealth. Your fears may also be why high yield savings seems like the better option for your money.  In this episode (Episode 100, by the way

When you work a traditional 9-to-5, working from home (for yourself) can feel like a real treat. You sit in a comfortable chair of your choosing, you can blast music as loud as you want, and pants are optional. But anyone who works remotely full-time or runs their biz from their home office knows: it’s not all sunshine and rainbows. Much of the time, you’re fighting distractions that are pulling you away from your work. Thankfully, Focusmate can help you… well, focus. We talked about productivity and human habit with Focusmate’s creator, Taylor Jacobson, on this week’s episode of Wealth by Design. WHAT YOU’LL LEARN [01:46] Who Taylor is and how he created Focusmate [05:05] How Focusmate uses virtual coworking to help you get work done [07:48] The versatility of Focusmate (it’s not just for paperwork!) [09:00] How Focusmate creates a distraction-free environment [10:44] Why we still need accountability in the digital age [13:18] Using behavioral triggers to get into a “flow state” [15:23] The three things you need to do to focus [16:47] The toughest part of running your own (online) business [19:07] How changing up your scenery makes a difference, too [21:10] The ways that community input advise Focusmate’s growth [24:24] Why the traditional workplace needs to evolve [27:36] How Taylor’s life would change in “revivement” [28:47] The non-sexy big thing that Focusmate is working on right now   HOW FOCUSMATE BOOSTS YOUR PRODUCTIVITY Procrastination is a drag. Avoiding something may feel good in the moment, but it just creates even more stress in the long run. But even though we know that procrastination is “bad” and productivity is “good,” that doesn’t make it any easier to actually get our work done. Especially when you’re your own boss. Focusmate works because you have an accountability buddy to keep you in check. Here’s how it works: You choose a time you want to work on Focusmate. Morning, afternoon, evening, it’s your call. You get a 50-minute session with your Focusmate partner, which starts with each of you sharing your goal for that chunk of time.  You get to work and achieve that goal.   When you join a Focusmate session, you’re paired with a random coworker — and they come from all over the world! But you can set up private groups if you find that you’ve matched up with some really great people in the past. Taylor mentioned that one of Focusmate’s goals in the future is to allow users the option to choose their favorite partners to work with individually. After hearing Taylor explain how Focusmate works, we assumed that its magic worked best on traditional office tasks. Emails, reports, budgets, that sort of thing. However, Taylor pointed out that Focusmate isn’t limited to work. You can use it for other things on your to-do list, like self-care practices, workouts, or meditation. Focusmate is incredibly versatile. Fun, right?! THANK YOU, SCIENCE: BEHAVIORAL TRIGGERS How does the methodology behind Focusmate work? Dustin mentioned that he geeked out over “The Science Behind Focusmate” page (linked in the show notes below!). What does it all boil down to? Understanding the psychology behind our actions and using that to your advantage by adapting your behavior and responses to triggers. Let’s say you set a goal for yourself at work: you want to spend two hours a week researching what your competition is doing on their website and social media channels. You know that this research will help you discover any current trends you might have missed, and it may even affect your own social media strategy. However… you fail to stick to this goal. Other tasks get in the way. (Or, more likely, you just get lost down an IG rabbit hole #guilty.)  Before you know it, the workweek is over and you’ve pushed that task to the next week. And the next. Repeat.  One reason this might happen? You’re setting yourself a vague, generic task to get something done at some point… you know, whenever. It’s different with Focusmate and accountability practices in general. You have a specific commitment to another person, not just yourself. It’s a lot harder to break that commitment. That’s one of the many ways Focusmate works: by anticipating your behavioral triggers and providing solutions for it ahead of time. Taylor even shared that some Focusmate users said that they were productive long after their coworking sessions even ended! Their mental state was so deeply ingrained in work mode that they tackled other stuff they had to do, even if they technically were “off the clock” at that point. We think that’s pretty cool. THE HURDLES OF RUNNING A BUSINESS (ONLINE OR NOT) Whether it’s fully remote or in-person, running any business is tough. However, choosing what to focus your energy on in your business is one of the hardest things entrepreneurs face. And it’s a constant battle prioritizing your tasks, especially in the beginning stages. You already started your own business, which means you brought a fantastic idea to life. That’s not the last great idea you’ll have and wanting to explore other ideas can be tempting. Taylor explained that choosing which business ideas to pursue is something he struggles with most. It really can be too much of a good thing. If you focus your attention on too many projects at once, you lose out on efficiency. And those ideas you picked won’t really reach their full potential if your concentration is scattered. Sometimes you have to learn to say no, even to yourself. (Plus, as you know, we’re not big fans of multiple businesses). This is just a taste of what we chatted about with Taylor this week. Make sure to check out the full episode for more about Focusmate, how it works, and what to expect from Taylor and his crew in the coming months!   This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED   Focusmate (it’s free to join!) Taylor’s Twitter @taylorjacobsen and LinkedIn Sapiens: A Brief History of Humankind by Yuval Noah Harari The science behind Focusmate Living in an age of distraction (which we rant about in Episode 98!) Deep Work: Rules for Focused Success in a Distracted World by Cal Newport           CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

No one uses an actual punch clock at their job anymore, right? However, the concept of a punch clock — punching in to start a shift and punching out when it ends — is ingrained in many of us, even as business owners who write our own checks and make our own schedules. But it doesn’t have to stay that way! On this episode of Wealth By Design, we talk about how you can start changing your mindset and your life right now. WHAT YOU’LL LEARN [01:29] Why the punch clock is the enemy   [01:56] The irony of making your own hours as a business owner  [02:41] Living in the age of distraction  [04:23] Why so many professionals start their own business [04:57] How financial planning can help you defeat the punch clock [06:21] The hustle and grind of being a business owner [08:57] What “revivement” is [10:54] How your passions can guide your work [12:03] The important business strategy people aren’t talking about [14:20] How to start building a safety net for yourself [15:37] The importance of having a financial life plan [17:35] What a “BULB” is — in case you haven’t been following us for long [17:51] How to reach BULB status THE “CLOCK IN, CLOCK OUT” MINDSET If you started your own business, we bet one of your goals was to get away from the punch clock. Maybe the one you saw your parents dealing with. You wanted more flexibility and control over the hours you work. But it’s not that easy. And your flexible work schedule doesn’t necessarily mean you’re free of the metaphorical punch clock. Here’s why: There’s still a direct correlation into the hours you put in to the money you get back. Hours in, money out. Plus, you’re likely putting in more than the typical 40 hours a week, even though you’re the boss.  YOUR TIME IS PRECIOUS, SO MAKE THE MOST OF IT This is a problem because, as we talk about in this week’s episode, our time is more important than ever in today’s age. Everything and everyone is competing for just a few seconds of your time. Social media, networking sites, apps, streaming services: everyone is fighting for your attention. Your time is precious, and that’s why you need a plan to make the most of it. As a business owner, you probably feel intense pressure to “be a boss” or “put in the work” or “rise and grind.” We get it, and we’ve been there. But we’re here to shout a big fat “No thanks” at that life.  We’re team anti-hustle and grind. We want you to stop and smell the roses. Enjoy your life while you can. You want to be able to step away from business, clear your mind, and delegate to others… without feeling like everything will fall apart without you there. You want to get to a place where you don’t have to put in all the hours to receive an income. You want to work not because you have to, but because you want to, right? Of course you do… but how do you get there? ENVISION YOUR LIFE IF MONEY WASN’T AN ISSUE The first exercise we talk you through in the episode is a little soul-searching. More specifically, we talk about “revivement.” It’s like retirement, but instead of waiting until you’re no longer working to pursue your life’s mission, you do it right now. If you didn’t have your current career, what would you really want to do? If you’re already doing what you want to be doing, great. You’re one step ahead. But you can dive a little deeper. Is it the actual work that’s your passion? Going to the office, sitting at your computer, having meetings… is that your goal? Or is it the effect of the work that you’re doing that’s your true passion? Once you start thinking about this, you can begin taking steps to build the life you want and the kind of legacy you’ll leave behind — and stop putting in the time you’ve been spending. CREATE A FINANCIAL LIFE PLAN When we read about entrepreneurs, watch documentaries about successful startups, or listen to podcasts about the business owners who made it, we hear a lot about how they built their business. Their dreams. The sacrifices they made. The hustle-and-grind. (There it is again!)  What we don’t often hear about is the saving and investing required at the beginning, and the planning that’s needed after the business is already built. Most self-made millionaires or billionaires build financial planning into their strategy early on. But we don’t hear about that enough, even though it’s a huge part of their success. Frustrating, right? Basically, what nobody is telling you is: the hustle isn’t the only way these people are getting rich! And yeah, building a safety net for yourself might seem a little boring, and frankly, not all that sexy. But it’s the necessary stuff that will protect you, your business, and your family. Insurance, legal documents, financial assets, all that jazz. Even if you’re young, your legacy still matters! Do the work and take care of that stuff now. Remember, your time is precious.  Once your safety net is in place, you can figure out what actions you need to take in order to meet your goals. One goal we suggest? Start thinking in terms of your BULB: your back-up life bank. This is a dollar goal that, once you’ve reached it, your work is optional. If you haven’t been following us for long, your BULB is 25 times your minimum yearly income. It sounds like a big number, but it’s totally doable. We talk all about in Episode 063 if you wanna go have a listen. DREAM OF A LIFE AFTER THE PUNCH CLOCK... Imagine the day when you don’t have to sit down at your desk or go to those meetings to make your money. Let’s dream of a day when you can wake up and do the things that really fill your cup, make money, and make more of a difference — without having to spend your time to do it.  This is truly when you can kick back and enjoy the fruits of your labor. But this doesn’t start by busting your

With 2020 just around the corner, now is (hopefully) the time when you’re laying the groundwork for what you’re doing in the New Year. From mapping out your big business goals to figuring out where you want to travel in 2020, it’s an exciting time where you get to think about all the possibilities. Of course, we believe that the best way to plan for the future is by assessing the whole picture — even the not-so-fun stuff.  That is why we’re sharing a few things you should be aware of in 2020 in this episode. Our hope is that, by sharing what the New Year might bring, you can build some buffer into your plans and create a really strong strategy that helps you weather anything that comes your way. WHAT YOU’LL LEARN [01:30] How the global economy may affect your business in 2020 [02:03] Things you should be planning and preparing for next year [03:22] How small business was affected in the Great Recession of 2008 [05:41] Why every recession is different and why it’s unlikely to see another crisis [06:23] How lower interests rates and political upheaval can affect our economy [07:43] The difference between a hot and cold war [09:05] Why the Feds keep lowering the interest rates [10:06] The self-fulfilling prophecy of recessions [12:57] The yin and yang of a recession [14:08] Why we can see all of this upheaval as a sort of “rebirth” [15:51] The first step in preparing for 2020 [16:26] How to assess your income/expenses and contracts to see what’s not serving you [18:57] Why debt is a tool and how you can use it to your advantage in 2020 [20:11] The importance of maintaining your savings and investing despite a market slowdown [22:15] Why you shouldn’t wait for a recession to start (or stop) investing [24:10] The value of a financial advisor when the going gets tough LET’S TAKE A LITTLE TRIP DOWN MEMORY LANE When we talk about planning for 2020, we should consider all of the possibilities. On average, an economic cycle lasts about 4.7 years. This means we have about 3.2 years of growth and about 1.5 years of recession. By those numbers, we’re pretty overdue for a recession (we haven’t had one since 2008!). That’s why, on this week’s episode we want to get you prepared for 2020 in the event that a recession does hit. We can never predict what will happen, but based on historical data, a recession will occur eventually. So why not plan accordingly, right? INDICATORS OF RECESSION  During this episode, Dustin talks about a few of the things you might be seeing on the news lately — from lowered federal interest rates to struggles in global economies. While a lot of this can feel complex and overwhelming, there are a few ways that these “events” affect you here on U.S. soil (and might affect your business): Federal interest rates: A lower federal interest rate is a tool the Federal Reserve uses to spark the economy, but it also means they believe we’re on the verge of a recession, so they’re trying to stimulate the economy.  Hot wars are up: Hot wars, meaning on-the-ground fighting, guns, military, etc. are up all over the world. This leads to volatility and uncertainty, which can affect the markets as well as global economies.  Global growth is slowing: Nations all around the world are experiencing slower growth, which could be in part to political upheaval, those hot wars, etc. This, of course, comes home to roost here in the U.S. Low economic growth in America: All of our economies are intertwined and when global economies slow, so does ours. But remember: a recession merely means that the economy is not growing.  So… how do you navigate all these potential signs of recession and their potential effects on your business? You plan for 2020… and listen to this week’s episode!   HOW TO PLAN (AND PREPARE) FOR 2020 In this episode, we walk you through the 4 steps you should be building into your 2020 planning so you can handle whatever comes your way. These steps include: Making sure your emergency fund is funded. That means 3-6 months of living expenses and 3-6 months business operating expenses, cash on hand. If you don’t have that cash saved up already, it’s time to start.  Applying for financing before you need it. You know we hate all that “debt is dumb” talk — and that’s never more true than in a recession. When a recession hits, banks are less likely to give out loans because, guess what! The risk is on them! They might not get paid if things go south. So, we recommend that, if you’re planning on asking for a business loan, car loan, or even mortgage in 2020, look at applying now. This way, you can have the cash you need when you need it, and you don’t have to worry about banks making it hard to apply for loans down the road. P.S. to hear more about what we think about debt, check out this about this in Episode 84. Taking advantage of the stock market. As we always say, the last innings before a recession are some with the best growth. You should be saving and investing at a steady rate and you should not stop if things slow down (or fall). This allows you to “buy shares on sale.” Huh?? What does that even mean? A share today might cost $100, but during a recession you might get 4 shares for that same $100. It may seem like you’re investing in a losing game, but when the market rebounds, you’ll have 4 shares that are now worth $100 each. That’s $400 for the investment of $100. This is oversimplified, of course but you get the gist! Hiring an advisor. When a recession hits, a good advisor is going to help you invest properly, manage your fears, and set yourself up for success. He or she is also going to help you prepare for a recession before it hits, from a business and personal financial perspective.  DON’T GET SCARED. GET PROACTIVE. We know that this can feel like a lot of information, and it might be a bit overwhelming or scary if you’ve never thought about a recession before. But you’re a business owner and you need to know that, sometimes, you can’t control everything. What you can control is how you prepare. This episode was designed to give you some helpful tips to build into your 2020 planning and we hope you actually use them. They could really save your

The Giving Season is upon us. Between Giving Tuesday, the Salvation Army Santas standing outside your favorite shops, and the influx of donation requests you’re getting in the mail, you’ve probably got giving on the brain. On this episode of Worth It, we’ll be talking about donations — including how you can make more impact with something called a “charitable giving policy.” WHAT YOU’LL LEARN [00:52] Why many people don’t think about planning their charitable giving [01:42] The role of the board of a nonprofit (hint: it’s to raise money) [02:20] How to streamline the giving process [03:20] How to choose nonprofits or causes for your charitable giving [04:18] What charitable giving means [07:15] Why the negative stereotypes of Millennials don’t apply when it comes to charity [09:24] The challenges biz owners and entrepreneurs face with planned giving [10:54] What you should feel about the charity/causes you support [11:35] How to align your giving to your personal and business values [12:13] The risk of saying you’ll “donate later” [14:06] How to use our Ikigai worksheet to find your charity [15:07] What a charitable theme is [16:06] How to use this theme to accept or reject charitable requests [17:42] The value of looking in your own backyard first [19:06] How to connect with a nonprofit or charity you love [19:21] The 25% Rule [20:01] Remember you can start small and build from there FIRST THINGS FIRST: LET’S TALK ABOUT THE STATE OF GIVING As we were preparing for this episode, we found statistic after statistic about how awesome our generation (shoutout to our fellow elder Millennials) is at giving back. While most statistics agreed that we aren’t able to donate the most money (yet), we donate our time, skills, and goods more than other generations. It’s clear that Millennials — and other generations, to be fair — want to give back. But what we’re seeing within our own circle of the financial planning world is that business owners and entrepreneurs especially have this passion and drive to donate to charities and causes they believe in. Y’all are some of the most generous people we’ve met, so let’s talk about we can direct that generosity in ways that make even more impact! ARE YOU READY TO MAKE MORE IMPACT? Do you donate monthly to organizations like the ASPCA, or are you more of a Giving Season donor? Do you find a cause you resonate with on Facebook and click the “Donate Now” button to send them a few bucks? Most of us donate in these ways; we send a few bucks here and there to a few charities, hoping that even a little bit can help.  The good news is: every dollar helps. But if you’re really hoping to make a bigger impact, it might help to choose one or two charities to donate to on a larger scale. This doesn’t mean you’re “stuck” with these 1-2 charities forever. It just means you’re going to be focusing your attention and money on them for the time being. Sound scary, or like we’re telling you to donate beaucoup bucks? We’re not!  Even entrepreneurs and business owners with a ton of cash to spare struggle to figure out how much they should be donating. Between the guilt of not giving enough and the concerns that you’re giving too much, it can be stressful. That’s why we always recommend creating a charitable giving policy so that you can get clear on what you want to donate and to which organization — without worrying. HOW TO CREATE A CHARITABLE GIVING POLICY In this episode, we break down the four steps to creating your charitable giving policy so that you can start donating to causes that really feel good. It starts, as most things here at Toujours Planning do, with the Ikigai Worksheet. With the Ikigai, you’ll answer the four questions and find the theme that overlaps each of them. This theme is your charitable theme. Maybe health is your Ikigai, so you can choose a health-centric charity. Maybe freedom is your theme, so you might consider nonprofits that focus on human rights. Maybe your theme is kindness, so you can find a local animal shelter to support. Whatever your theme is, there’s bound to be a nonprofit or charity you can support that’s in line with it. We find that doing this Ikigai “groundwork” really helps our clients get aligned with where they want to make an impact, so don’t skip this step! Last but not least, it’s time to partner with an organization. You might be thinking you can just send your “theme” organization a few bucks a month, but we want you to take a different approach. Contact the organization you choose (bonus points if it’s local!) and set up a time to meet in person. Use that meeting to ask questions about the organization, or to see the work they’re doing. If it all feels like the right fit, ask how you can set up a charitable giving plan or a recurring donation. Even if you only have $50 a month to donate, let them know that you’d like to commit that money to their cause. This personal connection to the cause you want to support is so powerful. It will also likely encourage you to keep up regular giving, even if income is variable or your own expenses change. As we mention a lot on Worth It, we recommend saving and giving 25% of your income. If you’re not there with your saving or giving yet, that’s OK. But start somewhere! DON’T UNDERESTIMATE THE POWER OF A FEW BUCKS The truth is, you can make a huge impact with just a few bucks. You can do that by focusing your attention on a couple causes that mean a lot to you, and by committing to supporting them for the foreseeable future. More than anything, it’s important that the charities you choose to support align with your values and vision, and that you feel you’re making a difference. Because you are! For more in-depth guidance on how to set up your own charitable giving policy, make sure to tune into the full episode!    This material is for general information only and is not intended to provide specific advice or recommendations for any individual.   RESOURCES & PEOPLE MENTIONED Why Millennials are More Charitable Than the Rest of You by Jason Notte The Ikigai Worksheet inside our FREE go-to financial and life planning resources   Family & Youth, Lake Charles   Are we a good fit for your financial planning needs? Let’s find out. CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

For biz owners and entrepreneurs, you know it’s about more than just building a business for the money. You want to live the life you want, and use the skills and superpowers that are unique to you. And you want to make a difference, right? Well, today’s guest understands that, and works with female entrepreneurs to make sure they’re living over existing. Alisha Robertson is the creator of “Living Over Existing,” a podcast, a membership community, and a book all about reshaping what entrepreneurship looks like. Because she specializes in working with female entrepreneurs, note that this episode has more female-based language, but anyone can apply her advice to their life and work!  WHAT YOU’LL LEARN  [00:39] Who Alisha is and how she serves female entrepreneurs [07:39] Why Alisha doesn’t believe in “balance” [08:53] What happens when you try to give everything attention [10:29] How burnout is stopping you from leveling up [12:29] The power of just starting [13:06] The #1 concern most female entrepreneurs have about money [14:22] Why a scrappy business is OK, too [15:44] How your excuses are just covering up procrastination [16:33] Strategic tips on pricing + charging what you’re worth [18:13] The importance of getting clear [21:38] The concept of “enough” [23:21] How to extend local impact to global reach [25:42] How Alisha structures her business for multiple revenue streams [28:28] The power of community  [30:02] What Alisha would do in her revivement   PRIORITIES OVER BOUNDARIES During our chat, we dove right into the good stuff: talking about boundaries, priorities, and what Alisha tells her coaching clients who juggle life and work (read: all of them). First and foremost, Alisha explained that she doesn’t believe in setting boundaries; she believes in setting priorities. She had a baby less than a year ago, and the baby is her priority most days. But in this particular season (approaching the end of the year at time of our recording), her other priority was launching her membership community. On Friday nights, her husband and their date night is her priority. Of course, those priorities shift in a flash if something comes up — like a crying baby! This is such a great tip to keep in mind when you feel like you’re juggling everything and need to put boundaries into place. Yes, Alisha, shared: boundaries are great. But being flexible based on what takes priority in the moment can prevent you from beating yourself up or putting boundaries in place that don’t honor what’s most important. Things change, and so should your priorities! HOW TO HUSTLE INTENTIONALLY We also got to talk to Alisha about something we’ve seen a lot in the entrepreneurial space: this idea of shifting the definition of “Hustle.” Of course, if you’re reading this, it’s probably because you love what you do and you want to watch it grow — but you know that hustling endlessly can cause major burnout and damage to your business. “That way lies madness,” as they say.  Instead, we talked to Alisha about how to hustle intentionally. It starts by working hard toward your goals, yes, but also focusing on re-prioritizing. If you’ve got things that are more important and move the needle closer to your big goal, the other things on your plate may have to be pushed further down the totem pole (or delegated). You’ll also need to make sure that you’re making time for the tasks and projects that move you forward, rather than just keeping yourself busy with smaller money-making actions. We’re all guilty of it! We take that last-minute project for the money, or say yes to a client we know won’t be a good fit… instead of focusing on the big picture. All of this, as Alisha talked about on the episode, is part of our money mindset. ADDRESSING MONEY MINDSET When asked what the biggest topic is surrounding money was for her clients, Alisha shared that most of them feel they don’t have the money to get started. They’re not willing to dip into savings, they don’t want to go into debt (or add more debt), and they don’t have money lying around to invest in growing their biz baby. But she also gives an excellent counterpoint to this argument — including tips to help you bootstrap your business. She told us how she works with clients to take the first step toward building their business, even if it’s just finding a few bucks here and there to buy a domain name. We also talked about the importance of prioritizing (there’s that word again) what you need first — you don’t always need a fancy website, or in a complex marketing strategy. A scrappy biz is just as viable as one where you invest a lot of money. CHARGING WHAT YOU’RE WORTH Along the topics of money, we also touched on how many female entrepreneurs struggle to charge what they’re worth. “We all start in that space of not valuing yourself,” she said, but it’s mostly just fear. Fear is what tells you you’re not worth more, or that your business won’t succeed if you charge too much. The best way to address this, Alisha shared, is to get clear on what you need to make per month or year. Once you’ve got that number, break it down by how much you want to (or can) work a week or a month. Then, you’ll know what you need to charge per product or service to make that. Breaking it down into numbers takes the emotions + fear out of the equation; it’s simply what you need to charge to live. Also keep in mind that you’re not serving yourself or your clients if you’re undercharging and over-stressing yourself. Of course, this led us into a conversation about what “Enough” looks like for entrepreneurs, especially when it comes to money. Alisha explained that “Enough” is important when first starting out, but it’s fluid and can change. What’s enough for you might not be enough for some else, and what’s enough for you NOW might not be what’s enough for you in the future. You can scale up or scale down based on your definition of “Enough” at any given moment, but she does recommend that you start with a bit more than your current definition of “Enough” — just in case something comes up. Sounds a bit like an emergency fund, right?  STRUCTURING YOUR BUSINESS TO MEET YOUR INCOME GOALS Last but not least, we also dug into Alisha’s business structure and how she’s diversifying her income through multiple offerings. She talked about her transition and how she’s supporting her business by offering services and products that her audience wants, while also focusing on ways she can serve them that aren’t offered in her niche. She also shared more information about her new community membership, which opened on October 22nd, and how she’s hoping to shift the majority of her biz income to that revenue stream.  There’s so much goodness in here, especially if you’re a female biz owner or an entrepreneur hoping to create a business that supports your life (rather than the other way around). Make sure to tune into the full episode and also check out all the great resources we referenced in the episode down below. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED Our Ikigai worksheet, which can be found in our FREE go-to financial and life planning resources Alisha’s book, Living Over Existing Living Over Existing podcast  Living Over Existing membership community Where to find + follow Alisha: Instagram @thealishanicole Instagram @livingoverexisting  Episode 051: How to Know Your Worth and Charge it  The Toujours Planning Quiz — Are we a good fit for your financial planning needs?   CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

We know that the title of this episode might not strike up the butterflies in your stomach or get you excited about life. But really, we’re talking about insurance because it. is. critical. We think that insurance is the most overlooked, undervalued, and denied aspect of your financial health. And yeah, it’s crazy boring. But you know what? It could save your

There are so many business owners and entrepreneurs who are #killingit out there today. But the majority of them started business after the 2008 financial crisis. In fact, some of them started their business after college, when normal jobs just weren’t available and they had to adapt. As a result, they have no idea what it’s like to own a business during a recession. They may have started at the onset of the recovery, but they’re not truly prepared for the effects of a recession. That’s why today’s episode is dedicated to asking the question: Is your business recession-proof? We’re not trying to scare you with this, but another recession is coming. WHAT YOU’LL LEARN [00:56] Why you need to prepare for a recession [02:47] The insights that financial advisors have into recessions [04:21] How Dustin + Danielle structure their business to be recession-proof [05:31] How technology parallels the impact of recessions [06:32] How recessions are like the tide [07:54] The risks of remaining ignorant of impending recessions [10:07] Why you should be using this information to gain an edge [13:05] What stops biz owners from preparing for a recession [16:28] Why you should be looking at technology as a potential competitor [20:08] Why in the world you should start investing when the stock market is on the rocks [22:49] What “normal” recessions look like (and how they’re different from 2008) [25:16] The real way to recession-proof your business    YOU’RE LYING TO YOURSELF Some of you reading this, or listening to this episode, might be thinking you won’t be affected by a recession. Some of you might even think that a recession isn’t likely because “2008’s was so bad.” Well, my friends, we’re sorry to tell you that a recession is, in fact, coming. And soon. We obviously can't predict when things will take a final downturn, but historically speaking we are “due” for a recession. As CERTIFIED FINANCIAL PLANNER™ professionals, we’re trained to prepare for this moment, and to help our clients navigate through it. But more than that, it’s also our job to help clients prepare for a recession. Even though you’re not a client, we figured this information was too valuable to keep close to the chest, so we’re shedding some light on how to prepare your business for a recession. LEVERAGE THIS INFORMATION TO PREPARE Instead of acting like a recession won’t happen — or that it won’t happen to you — let’s really talk about what to do so you can prepare. We know that it can sound overwhelming and downright scary to recession-proof your business, but we don’t think it has to be. In fact, Dustin loves talking about recession. He’s worked through one himself and came out on the other side with some really great ideas for building a recession-proof biz (which he has, here at Toujours Planning). So what are our big recommendations? We dive into them in the podcast, but here’s the gist: Make sure your business stands out What are you offering that’s different from your competitors? Are you poised for an influx of customers or clients when things go sideways? And do your audience or customers know that they can trust you to provide a great service or product, even when money gets tighter? Remember: recession-proofing your biz isn’t just about the financial side of things; it’s about making sure your clients/customers know they want to keep working with you. View technology as your competition Can you image technology replacing your products or services? Most people can’t, but that’s exactly what happens during a downturn economy. Businesses and consumers start looking for ways to cut costs, and sometimes that means turning to technology to do what you used to make money doing. Dustin had to deal with the rise of robo advisors (that’d be a cool book title) during the financial crisis and many brick-and-mortar businesses had to deal with online businesses taking their sales and customers. Are you ready for a shakeup?  Look at your competitors — and do better Are your competitors prepared for a recession? Like you, they’re probably not. But you’re preparing now, so figure out what you can do to get a step up on the competition. Do you know what your strategy is to win over your competitors’ customers and clients? Do you offer something they don’t that could convince people to make the switch when they’re pickier about where their money is going?  Build up your BULB We preach about the BULB all the time. If you’re new to BULB, it’s your Back-up Life Bank. If you get your BULB big enough, you’re totally recession-proof because you’re not banking on your business to pay your bills! Sound pretty great? Well, don’t waste time getting started on building your BULB.  Determine how much you need to live on annually and then multiply that by 25. It’s pretty simple math. And that number shows you exactly how much you need in savings and investments to get by without working — now all you have to do is start saving... and investing. Start investing “Wait what?” you might be thinking. “You want me to invest in the stock market when there’s a recession coming??” Yes, we do. And no, we’re not crazy. The truth is, if you want to recession-proof your business, you need to be investing your income (you know, that stuff you pay yourself each month!) to build up your BULB. Because you can’t build your BULB with savings alone — it would take forever. So instead, we want you to embrace the Law of Compounding Interest. Because when you invest, you accrue interest. That interest continues to build and build, even after a recession seemingly “takes it all away.” After 2008, we’ve seen a lot of people shy away from the stock market — they’re skittish after losing it all. But the reality is: if they had stayed disciplined and stayed the course, they’d be sitting pretty right now. Unfortunately, they sold when the market tanked and they missed out on the highest return in the stock market’s history — upwards of 10%. Imagine getting 10% back on the money you invested. That’s the fastest way to get to your BULB, and to recession-proof your life and your biz.  STOP PROCRASTINATING We know that recession preparation takes time, (sometimes) it takes money, and you don’t know where to start. But that doesn’t mean you shouldn’t start. We’re calling all you bosses to start looking at your business from the lens of a recession: would you survive? Would you thrive? And what do you need to do today to become recession-proof?    Don’t put it off.   And if you’re listening to this in the future and we’re currently in a recession, please don’t think we’re trying to make you feel bad for not seeing it coming. (Although #toldyaso.) Instead, see this as us giving you the tools to get yourself out of the worst parts of a recession. Start building your BULB. Find ways to innovate. Find ways to make your biz more competitor. And don’t wait ‘til tomorrow to do things you know will protect yourself and your business in the future. If you want help preparing for a recession and to strengthen your business so you feel secure,  Check out this episode of Worth It. You can also dive deeper into the BULB, why you should be thinking about a recession NOW, and more in the shownotes below. This material is for general information only and is not intended to provide specific advice or recommendations for any individual.   RESOURCES & PEOPLE MENTIONED Our BULB Calculator, which you can find in our FREE go-to financial and life planning resources   All about “BULB”: Ep. 85: Adulting 101 Series: Saving Ep. 063: Self-Employment & Retirement   The Toujours Planning Quiz — Are we a good fit for your financial planning needs? Peter Mallouk - Tim Ferriss Show    CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

If you don’t work a “traditional” job, one with an office and a salary, you’ve likely dealt with the challenges of variable income. Sometimes, entrepreneurs can barely pay themselves as they try to scale a new venture, while small biz owners are at the whim of seasons, customers, or contracts. Basically, you might not know what’s going into your bank account during a given month. And while that’s part of the thrill of the hustle, it can also be the downside of self-employment. We all want some stability in our lives, even if we want the freedom that comes with entrepreneurship. So how can you create security while also navigating the world of variable income? In this episode of Worth It, we share our stories and personal experiences with variable income, how we worked through it, and ways YOU can find more security and consistency with your business. WHAT YOU’LL LEARN [02:00] Dustin & Danielle’s history with inconsistent income in business and previous careers [04:35] How they combated slow months and seasons [05:45] How variable income affects your personal life + business [06:29] The downfall of “last-minute money-making” when building a successful biz [07:59] What you want to experience when you have a slow month [08:25] What you can do when months (or seasons) are slow [09:32] How passive income can help you meet your minimum living expenses [11:15] Why you might consider shifting away from transaction-based models [12:57] What it means to fall into the “good times trap” [14:48] Why saving and investing is essential, even in down months [15:25] How you can generate passive income from your savings [15:43] How to calculate your BULB [16:34] How saving and investing can help you live a work-optional lifestyle   THE PROBLEM WITH VARIABLE INCOME Most of us love what we do. We’re in business for ourselves because we enjoy the freedom that comes with (probably) not having a 9 to 5… but that doesn’t mean it’s all rainbows and glitter. One of the biggest complaints we hear from our entrepreneur clients and listeners is that “I don’t always know what I’m going to make in a month.” And boy, do we hear you.  Dustin, when he was new to the financial planning world, struggled with the compensation models in the profession — it was essentially sales-based and he didn’t always know if he’d make his sales quotes or commissions each month. Thankfully, the industry has changed and our financial planning firm now offers more fee-based services (more on this in a bit). For Danielle, working in marketing, direct sales, and eventually social media management, the variable income struggle was always real. To make ends meet sometimes, she’d need to take part-time jobs. We’re sure that’s something a lot of you can relate to… but it’s a cycle we want to help you get out of.  That’s because we see how variable income can affect a person and their business efforts. You might have to rely on personal credit cards to keep things afloat at home, or you might end up hustling yourself to death just to make some last-minute money (Guilty!). But worst of all, you take on clients, projects, or ill-fated investments that aren’t aligned with your business or what you really want for yourself. We want to help you build long-term success, not month-by-month success. So, instead of talking about how to make money at the 11th hour, let’s talk about what to do when there’s a down month. WHAT TO DO WHEN YOU HAVE A DOWN MONTH Have you ever tried to make your “down months” an opportunity? It’s hard as hell, we know. You’re probably sweating bullets over making ends meet, or thinking about how to find clients for next month. But we want you to try a slightly different tack (at least for a few hours). Invest in the biz Try to see a down month (or season) as a good time to invest time in your business. Not financially, but with “man-hours” and attention. Create systems and learn new things that can support you when things pick back up. Maybe institute email organization, project management tools, or update your contractors and onboarding sequence. This way, your business will be turned into a well-operating machine when the work starts rolling back in. Get clear on your numbers Secondly, use this time to figure out your minimum living expenses. We all tend to tighten the belt when the income slows, but we think minimum living expenses shouldn’t be an “emergency response,” but rather the basis for your entire finances. To do this, look at your annual expenses, both personally and professionally.  Tally up your personal expenses by total for the last year (don’t worry about divvying them out by category or expenses) and then divide by 12. This should give you the average per month that you need to get by. Of course, some months are higher than others, i.e. when your car insurance is due or when the holidays roll around. But in general, you’ll have a minimum income amount to work with. Now, you can create systems within your business that help you ensure you’re going to hit that minimum number. Anything over that? We’ll talk about what to do with it in just a bit

Amy Northard, CPA, has a passion for helping small business owners manage their finances and accounting so they can focus on growing their business. She also loves teaching accounting basics to online entrepreneurs who are just starting out. We were lucky enough to have her on this episode of Worth It, where we talk all about her CPA firm, what a CPA does, and when a creative biz owner (like yourself) might need to bring a CPA onboard. WHAT YOU’LL LEARN [01:48] Amy’s journey as a CPA [04:01] How Amy formed a niche making accounting easy for business owners to understand [06:05] Why finding experts who are “wired” for their work is so important [11:16] The nuances that come with serving entrepreneurs and business owners [13:17] Signs it might be time to hire a CPA [14:12] The difference between a bookkeeper and a CPA [15:33] What to look for in a CPA [18:28] The difference between a CPA and a CERTIFIED FINANCIAL PLANNER™ [22:11] Who Amy’s Be Your Own CFO course is right for [24:01] The benefits of keeping it in the family [26:23] What Amy wants to do in her “revivement” [29:21] What’s next for Amy and her CPA firm   Amy's Journey to Owning Her Own CPA Firm Amy is one of those rare breeds who loves taxes, following processes, and managing small business finances. She started her relationship with accounting in high school when her dad encouraged her to take classes, and the rest is history. But when she received her CPA designation and started working in a bigger firm, she quickly realized that working in a cubicle and doing the same work day in and day out wasn’t filling her up. So, like a true entrepreneur, Amy started looking into starting her own CPA firm. As she started attracting her own clients, she quickly realized that there was a real need in the small business space. When it came to finances, creative entrepreneurs and biz owners were really struggling to understand their finances and basic accounting principles. In fact, traditional accounting “speak” was downright overwhelming to them… so Amy sought to find ways to help. Today, she works with creative entrepreneurs and biz owners all over the US navigate taxes and set up bookkeeping systems so they can get back to the part of the business they love – the creative part. Of course, we talk all about when our listeners might want to hire a CPA and what a CPA even is because we know a lot of you are too afraid to ask that question

How often do you hear an entrepreneur or business owner say “I made 7 figures last year”, and you assumed that meant they took home 7 figures? We’re here to break it to you real nice: 7 figures in revenue is not the same thing as 7 figures in profit. You want to aim for the stars when it comes to both your revenue and your profit, but it’s also important to know the difference so you can properly plan and leverage your business’s money for long-term growth and stability. Interested in how to do that? Listen in on Episode 90.   WHAT YOU’LL LEARN [01:02] The definition of revenue [01:09] The definition of profit [01:24] What’s really going on when people say they make 6 figures in their business [02:37] The “Ritz Carlton” difference and what it means for your brand [06:20] The value of sacrificing short-term profit for the long-term  [07:22] Deciding which is more important in your biz: profit or revenue [07:49] Why increasing revenue is much more valuable than cutting costs [08:07] The parallel between your business and the national economy [08:34] How profit can be manipulated [09:37] Ways long-term profit can be “secured” by investing in your business [11:00] Why you don’t want to be Kodak [12:42] How to review profit through a different lens    THE DIFFERENCE BETWEEN REVENUE & PROFIT Do you know the actual difference between revenue and profit? It’s cool, a lot of people use the terms interchangeably. But they’re not interchangeable — and they mean very different things. Revenue, for example, is any income coming in from your business. This is every dollar you get paid. Profit, on the other hand, is revenue minus your expenses. So you might make $25,000 a month in revenue, but you have employees, a lease, and monthly subscriptions of pay, so you only have $16,000 left. Then you have to take taxes, retirement, healthcare, etc. into account. Your profit is the money you have left after everyyyyything else comes out. Got it? K, good.   WHICH ONE COMES FIRST: PROFIT OR REVENUE So, when you’re thinking about building a business that really lasts, which one do you need to be really focusing on: revenue… or profit? Because revenue means you’re killing it at what you do, and profit means you’re probably taking more way more money. They’re both pretty great. However, if your goal is to make this whole thing last, you might want to consider focusing on revenue. It’s counter-intuitive, right? Profit means that you’ve got a lot of money leftover after expenses, but when you focus on revenue (making 7 figures as a business, for example), it means you have an even higher threshold of income that you can use to really grow and stabilize the business. Let’s take, for example, the Ritz. You know it’s a hotel, but you also know that it’s almost become an adjective for high class. Part of that process — and why the entire franchise is still so successful — has been to re-invest in the hotels in ways that their guests love. The owner of the Ritz has been known to put piano players in lobbies, and to pay for much higher-end touches than other hotels. They’ve even gone above and beyond to get a stuffed giraffe back home to a young guest. While, yes, these things all decrease their overall profit, it improves the customer experience and makes it more likely that people will come back for more. That increases long-term revenue. And that, friends, is what you should be focusing on. SHORT-TERM REVENUE = LONG-TERM SUCCESS What you’re making right now as a business will inevitably advise your long-term success. Even if you’re not a wildly successful hotel chain like the Ritz, you do have some way you can invest in your business so it is even more sustainable down the road. For example, you might have grown your business from the ground up as a one-person operation. But to really make it successful in the long-run, you need to invest some of your profit into hiring someone to help out. Other businesses might need to invest profits into software, or a new storefront, or a business coach so they can take their brand to the next level. And to do all of that, you can’t just cut corners. You need to make enough revenue. Period. EXPENSES OR INVESTMENTS? So, how can you start focusing on revenue to build long-term success in your business? Consider your expenses through an investment lens. Are you spending money that’s just going out the door, or are you spending money on things that will help you grow in the future? Here’s a good example: are you wasting money on “amenities” for your office that you don’t need — like that ping pong table you see in all the startups in movies? Or are you investing in things like office space for your growing team, which is going to help you grow faster than before? Maybe you’re investing in a better camera to take better social photos which help you attract new customers or clients, or maybe you’re just spending money on software you don’t use or doesn’t do what you need. Take a good hard look at what’s cutting into your profits to make sure it’s useful. From there, you can increase your profit margins and grow your business. But it all starts with making sure you’re making enough revenue and investing it where it really matters. For more tips on how to focus on revenue > profit, check out this episode of Worth It. You can also see all the resources we referenced in the show notes below. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED Our FREE go-to financial and life planning resources The Toujours Planning Quiz — Are we a good fit for your financial planning needs? Joshie the Giraffe story   CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

When you’re an entrepreneur, it’s hard to separate work from life. When you’ve built a business (or multiple businesses) from the ground up, it can be even harder. After all, you have big dreams. Maybe you want to scale that biz, hit 7 figures (or 10 figures, you do you!), and work remotely while building your empire. Whatever your vision for your business looks like, odds are that vision also bleeds into your life. It becomes “When I hit 7 figures, I’ll buy myself that Tesla,” or “I want to live in New York so I can build more contacts for my business.” All of this sounds a-freakin-mazing, and we’re totally here for it, but we want to make sure you’re not just tying your life vision to your business vision. They should still be separate, at least somewhat. If you’re wondering if you have tied your life vision to your business vision (or you know you totally have), this episode will give you some tips on how to separate the two, and a few resources you can use to get clear on what your visions for life and work really are.   WHAT YOU’LL LEARN  [00:43] Why entrepreneurs have to be careful about biz decisions that affect life [02:01] How to consider if your business vision counteracts your life vision [04:01] Factors that can affect your long-term happiness  [05:22] The difference between a life vision and a business vision [07:06] How a business vision might look, separate from your life [08:07] Why most people regret working so hard [09:13] The risk of putting off your life vision for “later” [11:26] Why revivement (instead of retirement) can align those biz and life visions [13:14] The first step you need to take to feel harmony between your business and life [14:18] How to get your business goals to move you toward your revivement   YOUR BUSINESS OR YOUR LIFE? Have you ever had an amazing business idea, or a goal for your current business that you just couldn’t wait to get started on? But then you started thinking about all the hours it would take, the level of effort and money it might require to get off the ground? Did you think about weekends lost, time with your spouse or partner you wouldn’t get, or the difficulty it would require to move and leave family and friends behind? Sometimes, our business visions can be so powerful (and so exciting!) but they come at such a cost to our life vision. Maybe your life vision is to start a family and live close to your parents, but your vision for your business requires you to work 7 days a week in a city far from home. Which one wins out in that scenario? On a less obvious scale, entrepreneurs face these kinds of decisions everyday. Maybe your life vision is to be fit and run marathons, but your business needs you working all the time and you have no time to train. Maybe you want to travel the world but you’re too busy to take the break from work. Whatever it is, this is how we all have tied our life vision to our business vision in some way or another. It’s not necessarily a bad thing, until we sacrifice what we really want out of life to keep the business vision afloat. Instead of allowing one to overpower the other, let’s talk about how to make these visions live in harmony.   BALANCING YOUR LIFE & BIZ VISIONS Y’all, we don’t want you to miss out on life because you’re too busy building your business. We’ve seen it too many times, and you probably have, too. Your work should revolve around your life, not the other way around. So, to really balance out what you want for your life and what you want for your business, you need to blend them together and make sure that one doesn’t overwhelm the other. Ask yourself: What would my business look like if I got to do what I wanted in life? What level of success would I need to reach in my business to sustain the life I want? What would I be doing if I wasn’t working? How can I get to that point? What do I want to do in life before I die? What can I plan to make that happen?   Of course, this isn’t just a quick thought exercise. You’ll need to put some muscle into it! Especially if you’re looking around and realizing you’ve already tied your life vision to your business vision; it’ll take some time to unravel that. In this episode, we give you some resources (linked below) that you can use to make the separation of life and business clear, so that you can make sure the pieces meld together in a way that is healthier for you!  Remember, all of your business moves should be designed to give you the life you want — not the other way around.   This material is for general information only and is not intended to provide specific advice or recommendations for any individual.   Resources & People Mentioned Our Vision Worksheet in our FREE go-to financial and life planning resources Revivement (instead of retirement) The Toujours Planning Quiz — Are we a good fit for your financial planning needs? Tyler J. McCall @tylerjmccall The Top 5 Regrets of the Dying by Bronnie Ware   Connect With Danielle and Dustin Ask Your Questions On Facebook On Twitter

As entrepreneurs and business owners, money is a huge part of our everyday lives — from the few bucks we spend on that morning latte to our home expenses and how we use it to invest in new hires for our business. We all have a different experience with money, and most of us have different “money styles” than our loved ones or business partners. Why is that? Well, we think it’s because most people boil down to one “type”: a Spender or a Saver. Now, we know this is a generalization and that we all have a little Spender and a little Saver in us. However, we think that, in general, people lean more one way or the other. We also think that your “type” dictates a lot about how you work with others, whether it’s a spouse or a business partner. Do you know which type you are? Listen to this episode of Worth It and read on to identify your “type” and to get some tips for how to work with your type (and your partners who may be the opposite).  WHAT YOU’LL LEARN  [01:43] The spending styles of Dustin and Danielle (and their partners) [09:46] What role childhood plays in your spending or saving style [12:50] How spending/saving types affect business partnerships [14:17] Considering when to spend on things like new hires and tools to grow your business [15:11] Why Spenders may be able to grow faster in business than Savers [15:45] The tendencies of a Spender [17:25] The cycle of Spenders’ guilt [19:37] Why a “certain standard of spending” is hard to come back from [21:16] The tendencies of a Saver [23:14] The downside of being a Saver when it comes to building long-term wealth [24:03] How to know where YOU fall on the spectrum of Spenders & Savers [24:34] How the differences in spending/saving types play out IRL [25:57] Navigating a business relationship between a Spender and Saver Tendencies of Spenders and Savers When it comes to saving and spending, many of us believe we’re somewhere in the middle. You can spend when the occasion arises, but you save if you need to. But we think that, in general, we all fall closer to one side of the spectrum. So… which type are you? Below are a few signs you might be a Spender or a Saver. Spender: You work hard and believe that makes up for/gives you license to spend as you see fit. You don’t (usually) worry that money will run out. You may make hasty spending decisions and wonder why you spent so much later. Prompt: Do you look at prices on a menu before you order? Do you want to buy the most expensive thing on the menu because “it has to be good”?  For example, Dustin is the Spender in both his marriage and his business (you’re shocked, we know!). This means he tends to order the Surf n’ Turf at any restaurant he visits and he loves spending money on high-quality items that will last a lifetime. He does tend to spend a lot of money easily and sometimes worries he’s spent too much. But he works really hard and makes good money, so he feels he is justified. Saver: You’re afraid the money is going to run out. You may have had a situation in childhood that made you feel there wasn’t enough money. You compensate for others’ spending tendencies, especially if you have a life or business partner. Prompt: Do you find the lowest-priced item before you decide what to order from a menu? Do you limit going out because you worry about spending too much? Danielle has always been a Saver, although she can spend money where necessary (and sometimes just for fun). When she does spend, she usually has buyer’s remorse, aka spending guilt. She remembers her dad talking about “tightening up” on spending when she was younger, and worries there won’t be enough money down the road so she shouldn’t spend now. She’s also the Saver in her marriage and feels the need to spend less if her husband spends more (her dream dining table notwithstanding).  Of course, these are by no means the only examples Spender and Saver personalities; it’s just what we’ve seen in our work and lives. Now that you have a general overview of Spenders and Savers, let’s talk about how these play out “IRL.”   How Spenders and Savers Interact With Life and Business Partners While we’ve talked before about spending vs. saving, we haven’t really talked about how this plays into your relationships or how it affects your business. That’s why, on this episode, we talked about the different “roles” Spenders and Savers play in their romantic relationships and in their businesses. Because “opposites attract,” there are often Spenders and Savers in the same relationship — whether romantic or business. This balances you both out well, but it can also lead to problems. For example, Spenders may feel “looked down on” by their Saver partners, or rebel against the restrictions a Saver puts on spending.  Savers, on the other hand, might feel like “The Bad Guy,” always imposing rules or shooting down new ideas that require a large investment. They may also feel resentful that they “can’t” spend as their Spender partner does. Overall, though, they have a practical mindset when it comes to money and believe that they balance out the Spender in their relationship well. In both cases, working together to talk about your decisions can help balance you out well. Communication is key when you have different personalities and values. It’s also important to work together to cultivate the view of “investment” instead of “spending.” When Spenders and Savers think of spending, they have two different reactions. Whereas, if they focus on what they’re investing in, they may have an easier time finding middle ground. We also talked about how Savers and Spenders have the same weakness: building wealth.   Spenders & Savers & Wealth, oh my! You’d probably think that it’s just the Spenders who aren’t able to build wealth. But it’s actually both Spenders and Savers equally — and sometimes it can be even more of a problem for Savers. How in the world!? Well, Spenders obviously spend too much and don’t save (or invest). But Savers often save too much — and put money in places where it’s actually not doing them any good. For example, many Savers are afraid to invest in things that make their lives or businesses better. We’re talking about the new AC unit that will help reduce your monthly energy bill, or that new hire who will help you scale your biz. Spenders may also put all their cash in a low-interest savings account, when they could actually invest those funds and accumulate compound interest that builds wealth. As a general rule of thumb, both Spenders and Savers should be saving or giving 25% of their income. Once certain “funds” are funded — like your emergency funds and any short- and medium-term saving goals — you can start investing your money. For Spenders, this may take a while if they’re not used to saving anything. For many Savers, though, it might be feasible to start investing sooner because they have already built that habit of saving. The key here is to not just keep saving in a basic savings account. You want to build wealth, not stagnate it! For more tips on how to build wealth based on your spending or saving type, check out this episode of Worth It. You can also see all the resources we referenced in the show notes below.   This material is for general information only and is not intended to provide specific advice or recommendations for any individual.   Resources & People Mentioned Our FREE go-to financial and life planning resources The Toujours Planning Quiz — Are we a good fit for your financial planning needs? Adulting 101 Series: Life – Episode 83 Spending vs. Saving: Mindset and Differences - Episode 67  

Do you feel like a total baller because you make a bunch of money each month? Are you living high on the hog because your business is making 6 or even 7 figures? That’s great! Hats off to you. But… we’re here to burst your bubble a little.  While you may be making a really great monthly or yearly income, and you are totally killin’ it at what you do, income is not the same as wealth. Income is literally what is coming in each month from your work or revenue streams. But wealth is the “abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions.” Basically, they’re what you already have that you can use to get by — and thrive. So, this episode, we’re getting into why income is not wealth and how you can actually start building true wealth so you can feel really rich. WHAT YOU’LL LEARN  00:48 The perfect example of a business owner who relied on income, not wealth 03:20 What happens when people hit the 6- or 7-figure mark 03:45 What “wealth” really entails 04:05 4 scenarios where you’re not truly wealthy 04:56 The risk of assuming people are wealthy when they have a lot of money 06:33 How we define wealth 07:53 The importance of protecting your wealth with insurance 09:56 How to transition your business income from money to wealth 10:54 Why you should treat your income like a well  12:24 Ways you can restructure your business to move beyond working IN it 13:04 Diversifying businesses, investments, and saving strategies for maximum wealth   You’re not as wealthy as you think First and foremost, we want to talk about a few scenarios we see play out time and time again with clients. They are making a ton of money (yes, sometimes over a million a year!), saving a bit of it, and really rockin’ in their business. But we tell them they ain’t that wealthy. Why?? Because they usually fall into one of four categories:   They have a ton of debt. Now, we know we just talked about how you can leverage debt, but these people usually have high-interest debt — and a lot of it. If you have a lot of money in the bank, but you have debt coming out your eyeballs, you are not wealthy. They are spending like there’s no tomorrow. If you’re spending just as much as you’re making, and you’re not leaving anything to save, you’re not wealthy. They don’t have insurance. You may have a high net worth, money in the bank, money in savings, and still not be wealthy. How? By not having the full spectrum of insurance. We’re talking life, disability, health, business… the whole enchilada, you guys. Their only source of income is their biz. We’ve said it once and we’ll say it again: your business(es) aren’t going to build wealth. If your only source of income is from a paycheck or salary, that means you only have money coming in if you work. True wealth means diversifying your income streams so you can cover your behind if an illness or recession strikes, you want to retire, or you sell your biz. Business doesn’t count as diversification; saving and investing do.   So, if all of the scenarios above don’t make you wealthy, even though you’re making money, what does? How we define wealth   In this episode, we get real clear on what we mean by wealth. Wealth is your net worth, straight up. It is your total assets minus your total liabilities, and the more assets you have than liabilities the better. Notice how we said assets, not income. Assets include things like stocks, bonds, property, businesses, art, etc. How do you get these assets? By having income, of course. But you need to be putting that income to use by saving and investing in assets that keep you wealthy well after you stop working for a paycheck.    So… how do we build wealth? If you’ve read this far, now would be a good time to pop over to the podcast and listen. Because we drop a few actionable steps you can implement to build (and protect) your wealth. Things like: Turning your business from income to investment. While this is definitely a process, you can set your business up to be more of a passive income stream for you, than to just start a business that you have to work in all the time. Turning your business into something that you can walk away from, without everything falling apart. Turn your contract work into an agency, for example, and scale your team so someone else runs the show. Setting up umbrella insurance. We’re talking the full spectrum of life, health, business, disability, etc. so you’re not risking your chance at long-term wealth if something happens. Setting up a bucket strategy to make sure you’re setting aside enough money for short-term, medium-term, and long-term goals. You should also be doing all of it if you want to truly diversify your income and build wealth. So if you want to dive into this topic and really figure out how to move from “money-rich” to “wealthy-rich,” tune into the episode. And then go build dat wealth! This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED Sophia Amoruso  The Toujours Planning Quiz — Are we a good fit for your financial planning needs? The Bucket Strategy: Episode 57: Why Your Money Needs Direction  Our Net Worth Calculator in our FREE go-to financial and life planning resources CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter

If you’ve been in the entrepreneurial space for more than a hot minute, you probably know Charlie Gilkey. He started out with a blog, but now he is the creator of Productive Flourishing, a podcast and a site that helps people do the work that matters so they can become their best selves. Believe it or not, we nabbed Charlie as a guest on Worth It, and we’re really excited to share this interview with you. So, let’s get to it. WHAT YOU’LL LEARN  00:40 Who Charlie Gilkey is — and why we’re so excited to chat with him! 01:40 Charlie’s background as an Army logistics officer 03:23 How he took his first blog to a full-on business and podcast 03:43 Why his new book, Start Finishing, is different from other productivity books out there 04:46 Charlie’s view of the “bro” productivity literature that currently exists 06:19 Why our focus on work (rather than our lives) is a crisis of priority 07:40 The hamster wheel so many of us find ourselves on 09:15 Why money is an instrument, not the end goal 11:10 What happens when you add intention and purpose to your money 12:16 How to make more space for those projects you want to finish 12:57 What “thrashing” means 13:51 How most of us are going about “finishing” the wrong way14:20 The 5 Projects Rule 15:25 Why choosing what you’re NOT going to work on frees you to start finishing 16:49 The 2-Hour Rule 18:15 The risks of not scheduling in your project-based work 20:35 Why we tend to justify economics but not emotions when we outsource our work and lives 23:15 The idea of “Project World” 24:35 What Charlie means by “No date, no finish” 28:30 The problem with to-do lists (and how we use them) 30:05 The 15-second or 2-hour decision you’ll need to make with each to-do list item 31:01 The 3 ways we experience time 33:23 Why we run and hide when we don’t have our projects properly aligned 34:23 The risks that come with thinking motion means progress 35:29 How to take back your time by being mindful of your device use 37:58 The risk of planning too far in advance 41:05 Why Charlie often recommends that entrepreneurs don’t plan for more than 6 mos out 42:43 How to handle multipotentialite tendencies 43:10 The benefits of finishing something at a level of mastery 47:39 Charlie’s mission in life  THE PROBLEM WITH “NEVER ENOUGH TIME” While most of our conversations center on money and how to build wealth, we know that most of our audience are entrepreneurs who have multiple interests, love exploring new business ideas, and who want to make the most of the time they’re working. After all, you started your own business so you could have time to do what you love, right?? And yet, as Charlie talks to us about in this episode, we tend to prioritize work to the point of sickness or burnout, and we do it all in the name of money or “getting things done.” The result is that many of us feel like we’re just working for money, that we’re not in alignment, and we don’t have time to do the things we really want to do — or even need to do.  Charlie goes into detail on why this is in his new book, Start Finishing, and he was nice enough to shed some light on this during our chat. In fact, he calls it out pretty early in this episode: If you’re struggling to find the time to do what you want to do, it’s not because there’s not enough time. It’s because your priorities aren’t aligned.    GET OFF THE HAMSTER WHEEL We all have busy lives. It can feel like we’re running from one thing to the next, trying to get ahead. And it can feel like a hamster wheel. We’re not really getting traction and we’re not doing what we feel most called to do because, you know, you have a lot on your plate.  But let’s be real. You get to choose what you’re working on — and what you’re not working on. It can be hard to change what you’ve already set in motion (yes, you have to finish that client project or get those meetings done before you can really make space for what’s important to you), but you can set yourself up for success starting now. How? Charlie calls is the 5 Projects Rule. The 5 Projects Rule This rule is one that Charlie highly recommends, especially for those in the entrepreneurial space. Basically, it means no more than 5 projects per time slice (a day, a week, a month, a quarter, a year). Many of us have 5+ projects we work on in a day, like “Do the laundry, finish that work project, mow the lawn, do the groceries, schedule the vet visit, figure out the water bill” etc. — and it’s no wonder we don’t have time! We are literally cramming our day with projects. Instead, Charlie recommends cutting it back to 5. 5 a day, 5 a week, 5 a month, whatever it is. But no more than 5 in a time slice. To do this, you’ll need to figure out what you don’t have to do, or what you can delegate. Get real with it, and don’t let other people’s priorities or emergencies affect this once you’ve made a decision. Stick to your project plan! And if your time slice is bigger than a day — a week, month, quarter, year, etc. — you can break those projects down into smaller time slices. In a really good planning world, Charlie says, you’d have a long-term project chunked out into smaller projects, i.e. a month-sized project broken down into week-sized projects. If you’re wondering how to break down your projects by week or even day, Charlie has a recommendation for that, too. 2-Hour Rule Ask yourself what a 2-hour chunk looks like for your project breakdowns: what can you get done in 2 hours and where you can fit that block of time into your schedule? Charlie also shares that you can ask yourself which items you can get done in 15 minutes, because you knock things off your list really quickly when you see those things come up. He also adds that we all underestimate how long it takes to get stuff done, so build in a buffer! For a rough buffer, Charlie says you can multiply the time you think a project (or work block) will take by 3. So that 15 minute project… it might actually take you 45 minutes. Plan accordingly.   FINISH THE DANG THING Charlie shared his big productivity secret on this episode: “No date, no finish.” If you don’t have a date for that big project you want to finish, or that little project you want to start, it’s never gonna get done. And picking a date is only half the battle. From there, you need actionable breakdowns — those 5 projects per time slice we talked about. What are you doing today/tomorrow/this week/this month to move you closer to that goal?  There’s another important point that Charlie made: we tend to run and hide from our commitments to our own projects. How often have you stared at your to do list, started to write that email, or tried to find information about your new pet passion… and froze? Maybe you ran straight to a client or customer issue to resolve, or you decided to open Instagram, or maybe you buried yourself in email busy work. #Guilty But the problem with this is: We trick ourselves into thinking “At least we did something.” But it isn’t the work you should be doing, and you know it. So get real with yourself, make a plan, and make it actionable.    START FINISHING: THE BOOK This is just the tip of the iceberg in terms of what we talk about in the podcast. Charlie also covers the problem with how we all manage our to do lists, the risks with planning more than 6 months at a time, and more. We talk about all of it in the podcast, we but we also talk about his new book: Start Finishing.  While this is technically a “productivity book,” Charlie says it’s different in three ways:  It talks just as much about the work of our lives, than the life of our work It’s not like “bro” productivity literature that can be exclusionary It focuses on the work that calls to you, rather than the things on your to-do list He hopes to help people thrive in their businesses, homes, and communities, and we think he’s well on his way. If you want to know how to finally start finishing, juggle all of your many interests, and create a schedule that lets you do more than work and feel guilty… this episode and Charlie’s new book are perfect for you. Check them out! This material is for general information only and is not intended to provide specific advice or recommendations for any individual. RESOURCES & PEOPLE MENTIONED  7 Habits of Highly Effective People - Stephen R Covey Getting Things Done - David Allen Start Finishing - Charlie’s new book out 9/24/19 Charlie’s “home” on the interwebs: productiveflourishing.com     

Do you think about saving money and instantly feel guilty and/or defensive about your lack of savings right now? You are so not alone. And while we’re here to tell you a bit about how much you should be saving, we spend some time in this episode of Worth It talking about why you should be saving. We hope it gets you fired up and ready to save, so let’s dive in.   WHAT YOU’LL LEARN  [02:20 How Dustin managed to build wealth through savings… even during the 2008 financial crisis [07:45 What Warren Buffet says is the hardest skill to craft [09:35 Why you can still have luxury taste and save for the long-term (if you make the money) [11:00 Using windfalls to build up future wealth [11:40 How to leverage market ups and downs to build wealth [13:30 Why you shouldn’t wait for the market to drop to start investing  [16:00 The importance of saving more for a work-optional lifestyle [00:30 How to shift your mindset from scarcity to abundance [03:15 The difference between splurging and celebrating [03:45 Why should think about saving as putting your money to work for your future [04:30 The risks of pushing saving off to “one day” [06:35 Addressing your mental blocks about saving [07:15 Why saving can sometimes feel like a penalty [08:20 Thinking about your future self coming to collect on everything you’ve saved [11:15 The importance of automating your savings   BUILDING WEALTH, EVEN THROUGH A FINANCIAL CRISIS It’s hard to believe that anyone came out of the 2008 financial crisis with more wealth, but those who “weathered the storm” and kept saving and investing during that time actually did. Dustin is proof. While the markets continued to bomb, he continued to set aside money to invest. The result? He’s got beaucoup bucks in his accounts now… and it’s all because he committed to saving and investing at the age of 24.  The basic truth of saving is this: You’ll build more wealth if you start saving (and investing) now. You should save up for emergencies, and we usually recommend 3-6 months of personal expenses and 3-6 months of business expenses. Then you can start funding your Backup Life Bank (BULB), which is about 25x your minimum income requirement. And beyond that… you should be investing.  Why? Because you can add more money each month to your accounts and benefit from long-term interest growth on those higher balances. It’s the Law of Compounding Interest we are always going about and it’s real! But before we overwhelm you with the idea of investing, let’s talk about how much you should be saving.   WHY NORMAL SAVINGS RATES AREN’T GOOD ENOUGH “The experts” (who are they and where are they hiding?) say the average person should save about 10-15%, but if you’re a business owner or entrepreneur, we really think you should up that to about 25%. Automatically set aside 25% of your monthly income to your emergency funds and, once you hit those savings goals, you can start investing 25% of your income to really build up your BULB — because, let’s be real, investing will net you more compound interest than a savings account ever will. And when you hit your BULB goal? It’s time to ball out. Go crazy and buy yourself a Tesla with cash, or buy a cabin in the woods. We don’t care how you spend your money, once you’ve paid your future self. The best part about all of this? You can build wealth on your savings and investments, and can make more money on the interest alone — all while you enjoy your extra “spending cash.” You might be thinking, “I don’t know, Dustin and Danielle, 25% seems pretty steep…” If that’s you, it’s time to talk about mindset. WHY YOU NEED TO SHIFT YOUR MINDSET ABOUT SAVING We know mindset is a big buzzword here, but we’re gonna use it in a different capacity than other people might. From a financial mindset perspective, you need to really think about your savings as improving your future state of affairs. It’s also important that you shift your mindset from one of scarcity (“I can’t save that much money! I wouldn’t have any money left!”) to one of abundance (“Look at what I can save for my future while also enjoying what I can spend today”). Of course, we’re not gonna just leave you hanging with some vague “Change your mindset” crap like that. Here are a few actionable tips you can use to actually shift your mindset from saving = scarcity to saving = abundance: Try thinking about your savings as an absolute must. Think about it like your rent, your utilities, your non-negotiable plant subscription kit you get in the mail every month. Think about your future self coming to collect. Do you want to live a work-optional lifestyle by the time you’re 40? Do you want to retire in your 50s after your kids go to college? Wherever you see yourself using up all that cash you’ve stashed, take a minute to visit yourself in that future. See yourself living in your “revivement” cashing in those checks, withdrawing that money, and living your best life.  Automate it. Don’t think about setting aside money every month, just set it to auto-transfer. You might freak out when you have to manually do that transfer and accidentally sacrifice your future wealth for your current comfort. Don’t spend it all at once. There’s another skill you need to develop, y’all, and it’s not assuming that “abundance mindset” means “spending every last dang dime.” Yes, you can celebrate and yes you can spend the money you’ve worked so hard to make, but true abundance comes when all of your needs are taken care of. So don’t neglect saving!  There’s another thing we want to talk about: changing your assumptions about saving.    YOU KNOW WHAT THEY SAY ABOUT ASSUMPTIONS Have you ever heard the phrase, “Assume means to make an ASS out of U and ME?” If you haven’t, you’re welcome. But now we want to talk about your assumptions about savings… and how they might be making an ass out of you.  Let’s see if you’ve said this to your (or your besties after a few mimosas): “I’ll start saving one day, but for now I’m just enjoying the money while it lasts.”  You do see the problem there right? Because, if things went south tomorrow, you wouldn’t have any money to enjoy. So you need to re-evaluate your goals and make sure you can take care of yourself beyond tomorrow!  “Business is booming now, so I don’t need to save right now.”  You know, while you’re making those big bucks, you could be setting aside just 25% (when you make a lot of money, 75% of your income is still a lot of freaking money) and building massive wealth. Save and invest when you have those windfalls — Dustin did, and he’s sitting pretty now! Plus, your business could fail… and then what? “My businesses will keep me afloat.” Let us make one thing very clear: you can diversify where you save and invest your cash — bonds, stocks, different asset classes, etc. — but you can’t diversify your businesses enough to build true wealth. Because multiple businesses won’t necessarily cover your

We hear it all the time: “I feel like I’m not actually an adult because I have debt. And debt is bad!” Do you resonate with that? Well… we’re here to tell you a few things about debt that just might blow your freakin’ mind. Check out the fourth installment of our #Adulting 101 series about *drum roll please* debt repayment. How much should you be paying to debt? You’ll probably be surprised. WHAT YOU’LL LEARN 02:19 What people sacrifice for the sake of paying down debt 03:20Generational fear and hatred of debt 03:46 Dustin’s chart that “explains everything” 05:00 Why the truth is that not all debt is bad — and why not all debt should be treated equally. 07:42 Why you should treat interest rates like a game 08:26 The definition of interest  09:09 The good, the bad, the ugly debt 10:56 At what percentage you should start focusing your debt repayment 11:26 What Dustin thinks is “horrifying” 12:58 How much should we be paying off our debt? 13:29 How to shift your savings goals around to pay off high interest debt 14:10 Why debt should be viewed as a tool that gives you leverage 16:29 How paying down debt can actually risk your long-term wealth 17:40 Why you may be risking stability in a recession IT’S NOT THE 80’S ANYMORE, MOM Do you have parents, grandparents, or older family members/peers in your life who talk about “debt being dumb”? Maybe you’ve heard a shall-not-be-named “money guru” say that and thought, “Well crap, I must be dumb.” We take issue with this approach to debt. Why? Because it’s the not the same world anymore, and sometimes debt is kinda smart. Yeah, we said it. From the early 70s all the way up until the financial crisis in 2008, there was about 40 years of high interest rates. These interest rates were way higher than historical averages — and even what we’re looking with now. That means, if you’re a Millennial, your parents were maybe paying 14% interest on their mortgage. Insane right?! What’s even crazier is that today, we’re looking at the lowest interest rates in over 200 years. So, when we talk about debt “back then” and debt nowadays, we’re talking about apples and oranges. This means that owning a house with a 4% mortgage is wayyyyyy better than owning one like your parents did (and probably paid off) at 14%. This means that your car loan at 4 or 5% is wayyyyy more affordable than your dad’s old T-Bird. And you know what? The cost of college has increased 260% since 1980. So thanks, Aunt Linda, for the story about how you paid your way through college, but the reality is we need loans to get that same education. So, when we talk about debt, know that we (as in Dustin and Danielle) know that we’re actually talking about interest rates. And as Danielle puts it, interest rates are really just a game you gotta play.  HOW TO PLAY THE INTEREST GAME To put it simply, interest is the cost of acquiring money. How much does it cost to borrow the money you need? How much will it cost you to take out a loan to buy a house? How much does it cost to get money to pay for your education? And is the interest worth that cost to you? Really, that’s a good measurement of your need for debt. Do you want to pay 7% extra for that car… or would you be cool with paying 7% on a cheaper car that still gets you where you wanna go? And interest has another important role in your debt: it helps you decide which debt is “good,” “bad,” and “ugly.” THE GOOD, BAD, UGLY DEBT We’re not telling you to ignore your debt if you have, let’s say, a 0% interest rate on your new car or home furniture. What we are saying is that you shouldn’t push yourself to the brink to pay down debt that has a low interest rate. But yeah, sometimes we make mistakes and go into credit card debt over stupid crap like a new phone and some killer blue suede shoes. Those are the kinds of debt that we want to avoid — and pay off faster. Other times, things like predatory lending can get us in a bind and we may be paying 20-30% on things like cars, payday loans, and credit cards. So that leads us into the good, the bad, and the ugly — which we talk about in depth on Episode 60. But the gist is this: “Good” debt (and yes, we use that term loosely) include:  Mortgage Auto loan Student loan Business credit cards or loans (with good interest rates) These are used to improve your situation. “Bad” debt: Adjustable rate mortgage (you buy a house and the rate can be changed over time, sometimes ridiculously high) High interest student loans (that you’re just paying the minimums on) High interest car loans (this happens if you have bad or no credit) A good frame of reference for bad debt: anything higher than 5%. If that’s where you’re at with a loan, it might be good to buckle down and pay more. “Ugly” debt: Credit card debt Store credit debt Payday loans    “Ugly” debt usually is qualified by interest rates in the 20-30% range, and they require you to really do some work to get them paid down. Why? Because you’re paying up to a third more than you spent — that “cost” associated with the money is totally not worth it.  But, now that you know which debt you should be prioritizing, how much more should you be paying to your good/bad/ugly debt? HOW MUCH SHOULD WE BE PAYING TOWARDS DEBT? This doesn’t apply to every person, but a good rule of thumb is to spend about 5-15% of your income on debt. This includes your credit cards, your student loans, your car payment, etc. It does not include your mortgage, which is part of our housing episode (jump to Episode 81 here).  And, again, it depends on the interest rate! Are you at a smaller interest rate like 4%, or high percent like more than 17%? If you’re at 6% or higher, you should probably lean more towards the 15% of your income range going to debt repayment. But not at the cost of your savings! Remember your savings and investing. You should be saving (and giving) about 25% of your income but, if you have a lot of high interest debt, you might want to cut back on that investing if your interest is high. Then, once those higher interest debts are paid off, you can ramp up the savings and pay down the other lower interest rate debts over time. Why do we say this?   Because investing can net you 3-6% on average… which negates any sort of interest you’ll be spending on low interest debt.   How? Because as you compound interest on your savings and investments — meaning you grow your accounts because you’re getting paid interest into them — you continue to add more money, and get paid interest on those higher amounts. You’re making money on the money you’ve earned. It’s freakin’ magical. You know what’s not magical? Going broke to pay off low-interest debt. DEBT ISN’T YOUR RISK; IT’S THE FINANCIAL INSTITUTION’S We’d like to leave you with one last note: People think all debt is bad because it’s a financial “burden” that rests on them. But that’s not the truth. The party carrying the real burden are the banks that loan us the money. Essentially, you could never pay that money back (sure, you’d be screwed, but they’d be out the money), so they are the ones more at risk than you are. We hear this all the time when we see Facebook rants about how “China owns our debt!” What you need to understand is: we don’t have to pay back that debt right now. We have more money in our bank account because they (China or the banks) are holding that debt for us. This frees up more cash in our accounts to pay them back, but also still keep living. And there’s psychological value in knowing that we can pay things back over time — making it possible for us to do other things in life, like buy a house, have a baby, build a business, etc. We’re not saying don’t pay down your debt, or to only ever pay the minimums. But we are saying that you can do it at a pace that allows you to fill your other buckets.  DON’T PAY DOWN DEBT AT THE RISK OF YOUR OTHER NEEDS We’re just gonna say it: having an emergency fund so you don’t have to go into credit card debt in case of an emergency is much more important than just paying off your credit card right now. Being able to afford the roof over your head while also paying down your student loan debt is more important than going all in to pay down your debt — and losing your roof in the process. And building long-term wealth is more important than paying down “good debt” for the sake of saying you are debt-free. #JustSayin The biggest advantage of being young is that you can save so much, and therefore gain so much compound interest, that you can build vast amounts of wealth over time. But if you’re focused on paying back “good” low interest debt, you’re losing out on those prime saving years — and setting yourself up for more risk if something not-so-fun happens. So let’s reframe your debt: low-interest debt can give you power and leverage, rather than be a burden. It’s not 1985 anymore, so don’t let older generations tell you all debt is bad. Instead, lay out your debt, look at the interest rates, and figure out which debt gives you power and which debt is taking AWAY your power.    This material is for general information only and is not intended to provide specific advice or recommendations for any individual.   RESOURCES & PEOPLE MENTIONED Ep. 81: Adulting 101 Series: Housing: Episode 081 The Toujours Planning Quiz — Are we a good fit for your financial planning needs? Our FREE go-to financial and life planning resources   CONNECT WITH DANIELLE AND DUSTIN Ask Your Questions On Facebook On Twitter