Farnoosh Torabi's Blog, page 4

Celebrating National Credit Awareness Month with Chase Slate

Did you know that October is National Credit Awareness Month?

In celebration of this, and as part of my brand partnership with Chase Slate, we did a fun money-minute video addressing credit, debit and splurges.

Plus, find out who has a better credit score: Me or Tim? And, did I always want to be a financial expert?

Check out the full video below:

 

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Mint Money Audit: Affording Life After Grad School

With a brand new PhD under her belt, our latest Mint audit recruit, Renee, is ready to take on the real world with gusto. The 34-year-old is eager to buy a home and ramp up her retirement savings. She currently lives in San Francisco and has just started a full-time earning $87,000 a year (before taxes).

Renee also received a sizeable inheritance, totaling about $200,000 of which she used $30,000 to pay off her student loans.

So, why does Renee want an audit, exactly? Her finances seem perfectly in order, it seems.

As Renee explains, she wants advice around the best ways to plan for big goals like home ownership and retirement. “I’m especially eager to buy my own apartment, but it is extremely daunting (and expensive) in the Bay area,” she says. As a result, she’s leaning to move to New York City (Brooklyn, specifically, where she thinks may offer more bang for her buck in some neighborhoods.)

She wants to know how much of a down payment she can reasonably afford and how to budget for monthly housing costs.

First, though, I wanted to learn more about Renee’s finances. Here’s what the quick audit revealed:

Retirement savings: $40,000 in a 403(b) and Roth IRA. She allocates $200 month from her paycheck to the 403(b).
Rent: $1,850 per month
Groceries: $400 per month
Where is all that savings parked? $100,000 in index and mutual funds, another $50,000 in an 11-month CD earning 1.5%, and remaining $20,000 in checking.

To check out my advice for Renee visit the Mint blog.

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#OwnYourFuture at S.H.E. Summit 2017

Yesterday, I had the pleasure of sharing the stage with former So Money guests Bobbi Rebell and Amanda Steinberg as part of the #OwnYourFuture panel at S.H.E. Summit 2017, a global leadership conference.

During the panel we discussed how to earn more, the #1 question to ask your human resources team at work if you hope to get a raise, and how to gain 2 hours of sleep in 20 minutes. Catch the full live stream of our panel here.

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The Most Enterprising Woman In The World

Many of you have said that your favorite So Money episode was the one where I got the chance to interview my parents.

Through that conversation we learned how my mother and father got their footing in America after leaving Iran in the late 1970s, the financial values they instilled in us and how growing up in the Torabi household made an impact on how I relate to money.

Just this week, I got the chance to share another layer of my personal story with the incredible team at MMLaFleur. (You may recall I interviewed their founder, Sarah LaFleur, on So Money.)

I’m not sure about the title…calling me The Most Enterprising Woman…I can think of a few others (Oprah? Sarah Blakely?) but, I am grateful for this spotlight and hope that it offers readers a better sense of who I am. We’re all influenced by our experiences growing up – the good, bad and ugly. It’s important to recognize some of these moments and, for me, I like to think that even the tough stuff was a blessing. A guest recently told me that life doesn’t happen TO you. Experiences happen FOR you so that you can learn and become stronger.

To check out the full interview and more about MM.LaFleur’s Most Remarkable Women Campaign, click here.

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I can’t believe I said that (+ a new So Money record)

Question for you: What’s the worst advice you’ve ever received?

That’s a tough one, right?

My dear friend and #NoLimits podcast host Rebecca Jarvis asked me this question on her show this week.

And I fear I may have veered off into #TooMuchInformation land.

I found myself talking about things I never expected to share so openly. About love, marriage, intimacy. (I begged her producer to edit it out, but she said I was being silly.)

So, you’ll have to listen and let me know how I sounded…Honestly, it was fun to be interviewed for a change. And damn, Rebecca is SO GOOD at her job.

RJ and I also discussed the power of being an outsider, my experience growing up with immigrant parents (parsley in your bologna sandwich, anyone?) and the bosses that helped shape the course of my entire career.

And even though Rebecca appeared on one of my inaugural So Money episodes, I thought it would be fun to bring her back for a So Money/No Limits cross-over.

Since we last connected, Rebecca’s become a major INTRAPRENEUR. She’s launched her podcast connecting with big names like Robin Roberts, Jewel and Randi Zuckerberg and she continues to SLAY as ABC’s News’ Chief Business, Economics and Technology Correspondent. (She was also a finalist on The Apprentice. No big.)

We cover it ALL.

ALSO, TRIVIA: Can you guess which So Money episode has had the MOST downloads this year? Hint: It aired last week and the conversation focused on a three-letter word.

If you’ve yet to hear the popular (most popular!) interview with motivational speaker, author and marketing whiz Simon Sinek, I encourage you to tune in and, as Simon says, find your WHY.

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My latest gig with Johnny Depp.

Imagine earning $650 million over a stretch of ten, twelve years.

What would you do with all that cash?

If you’re Johnny Depp, you’d apparently LIVE

Financial Tips for Managing Your Side Hustle

This week on Facebook Live, I joined Intuit’s Angie Robert and Kimmie Greene to share financial tips for managing your side hustle. In case you missed it, check out the full video below:

 

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Paying off $30K in Debt and a Baby on the Way

Julia and John, both in their early 30s and living in Queens, are expecting their first child next spring and desperate for a financial audit to help them find ways to reduce debt and save up before embarking on parenthood.

The good news: Julia loves her job as a special education teacher, earning $70,000 a year. She is currently halfway through a certification program that will give her the credentials to advance and earn closer to $100,000. Their monthly expenses are also not crazy high. Altogether they spend about $3,000 a month on items including rent, utilities, cable and car payments. They would like to curb their eating out and entertainment expenses, currently averaging $100 per week.

The challenges: They have no savings and $30,000 in credit card debt across three cards, which they’re paying down minimally. The couple also owes $5,000 in a personal loan to a friend. After all their expenses and debt repayments, they’re left with little to nothing to save.

Regarding John’s career, he recently left his commission-only job in insurance sales because it paid very little. Now, he’s stringing together some side gigs, earning about $500 per week, until he can land a full-time job elsewhere with a steady, more robust paycheck. With only an associate’s degree, he’s also contemplating going back to school and getting the full bachelor’s degree. He’s not sure what he would want to study just yet. Plus, completing school would be a huge time and financial commitment. Is now the best time to enroll? Will it be worth it in the long run? The couple wants advice.

Check out my recommendations to help get them on track financially over on the Mint blog.

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Checking In: How is Aaron Progressing on His Goal?

The summer’s been a trying season for our friend Aaron who’s determined to erase $11,000 worth of debt over 12 months.

He is now nearly six months into his plan and says the path has been harder than he could have ever imagined. I wrote earlier that he’s also trying to simultaneously build up his cash reserves, which makes it even more difficult to avoid using his credit cards when unforeseen expenses pop up. Between his cat’s medical emergency and a rise in car maintenance costs, Aaron estimates that he is about $700 off his original debt pay off pace. He’s hoping to play some catch up in the coming months.

Here’s an overview of how Aaron’s trying to plow ahead.

A Failsafe Plan

Aaron’s cut up all of his credit cards, except for one…which he’s deactivated and given to his girlfriend to avoid using it in a pinch. “It’s our double-failsafe way of having it if we need it, but we definitely do not want to use it,” he says.

Knowing that the holidays are an easy time to rack up credit card debt, Aaron’s also begun to save in a separate fund for those anticipated costs such as gifts and travel. The goal is to not use credit at all this year. “We have about $450 in that holiday fund so far. We have a goal of $800,” he says.

To check out the rest of Andrew’s progress, head over to the Mint blog for the full story.

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How to Spend Your Student Loans: Do’s and Dont’s

Several years ago, a fellow college grad mentioned how she was over $100,000 in debt from school. It surprised me because I didn’t recall tuition being that expensive at our in-state college at the time. “Well, I used the money for my living expenses, too,” she explained. Then I remembered the studio apartment she rented during senior year and her insistence on eating organic food. And it all made sense.

Looking back, this probably wasn’t the best use of the funds. Just because a lender (or a group of lenders) gives you a six-figure loan doesn’t mean you have to spend all of it.

In general, colleges first apply a student’s federal student loan towards tuition, room and board. Money left over gets sent to the borrower by check, cash or a direct deposit to a bank account. Private student loans typically get disbursed in a similar fashion, although in some cases, depending on the loan, borrowers may receive all the money up front in their bank account.

Suddenly, a college student who’s used to never having any money in her bank account, feels rich! My friend’s student loan deposits in her bank account may have given her an inflated sense of what she could “afford.”

But, as tempting as it may be to use some of that money to buy a new fall jacket or live off campus without roommates, be careful. Your graduated self, a few years down the road, will thank you for practicing some self-control and putting those student loan dollars to more responsible use.

Check out my tips on the Mint blog on how to properly spend and manage your student loans to avoid regrets or remorse down the road.

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