Farnoosh Torabi's Blog, page 9

Do this. Get richer.

Here’s a confession: For as often as my guests on So Money share advice on the importance of being grateful, there’s a lot I take for granted far too many days of the year.

My health. My home. My family. My friends. My work. My freedom.

The list is long.

I do try to be more conscious of my fortunes by slowing down my pace and pausing to recognize the many happy moments as they happen each and every day (even when it feels nothing is going right).

Like when Evan announces a new word or sentence completely out of the blue.

Yesterday he actually answered one of my 2,000 rhetorical questions of the day with, “I don’t know, Mommy.”

I nearly fainted, cried and screamed – all at the same time. What does one describe that emotional state? Hysterical?

I call that being so, so grateful in a way that words cannot express. And instead of doing all of the above, I rushed to kiss him. Multiple times. In that moment, my day was complete.

And as if we needed more reasons to be appreciative, studies show that the act of gratitude can actually make us richer. Like, dollars and cents richer.

It’s the topic of my latest column in the November issue of O, The Oprah Magazine.

Intrigued?

In the piece, I share four simple ways we can all practice more gratitude, even when you’re having a crappy day (or year).

One trick: express thanks well and often – and openly. A simple thank you can go a long way in others lives …. and yours.

On that note, today and every day, I’m grateful to you and your continued support of my work. You push me to deliver my best whether I’m recording a podcast, writing an article, working on a course or just being me.

Thanks for always being honest with me and keeping in touch here. While I may not be able to reply to every email, know that I do read each and every one and you are being heard.

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Saving for Retirement at Every Age

What exactly should you be doing to prepare for retirement and when should you be doing it? I stopped by the TODAY Show with Kathie Lee and Hoda to break down what to do in your 20s, 30s, 40s, 50s and 60s to make sure you have enough money to retire.

You can catch the full segment here and my tips below:

 

IN YOUR TWENTIES

Start An IRA If A 401(k) Is Not Offered

Goes without saying you should invest in your work 401k plan (you can contribute up to $18,000 this year) but if you don’t have access to one as many Millennial who freelance or work for starts-up do…open an individual retirement account or IRA. You can contribute up to $5,500 this year.

You may feel like you have NO money for this in your 20s, older people, including myself will tell you that even as we earn more, we wish we had saved more when we were younger Your twenties is when your probably don’t have a mortgage, don’t have children. It’s just you. Pay yourself before anyone else.

Think Twice Before Taking On Big Debt For Some Grad Schools

This is also a popular time to think about going BACK to school for a graduate degree…but before you commit to $100,000 in loans for a Masters in whatever…ask yourself – is it really necessary for me to advance? Am I going to earn enough in my next job to pay this back comfortably? In some cases you can take an intensive 8 or 10 week course at night or online offered by a number of certified institutions that’ll teach you new skills, offer training and even help you with your job search afterwards. And many of these programs make it possible so you can still work and keep a paycheck.

IN YOUR THIRTIES

Cap Monthly Housing Costs To No More Than 30% Of Take Home Pay

At this stage in life you may be contemplating becoming a homeowner. But it’s not for everyone. You have to do the math. Can you comfortably afford the mortgage as well as property taxes, home insurance, maintenance and keep that to no more than 30% of your take-home pay? If not, then you may be better of renting for longer until you earn more and save more.

Consider Long-Term Costs To Leaving The Job Market To Care For A Child

In the short-term it may make sense to quit your job for a year or longer to be a full-time parent. The average cost of childcare has been climbing over the years. Day care, for example, now costs an average $200 a week, according to Care.com. But beware of the long-term opportunity costs of leaving the workforce. You’re not just forgoing a salary. You lose the ability to contribute to a workplace retirement plan and you may end up with reduced social security benefits.

I actually found this calculator that will tell you how much you stand to LOSE in lifetime earnings if you opt out of the workforce for a given time. 

If you do take time off, keep your foot in the door. Stay on top of the news within your industry and tap into resources that can help with a smooth and fast transition back into the job market. There’s a new site called ApresGroup.com, which is sort of a LinkedIn for moms, especially, who want to re-enter the workforce after taking time off. It offers tools, content and access to career coaches. (Check out my interview with the co-founder of Apres, Jennifer Gefsky here.)

IN YOUR FORTIES

Prioritize Paying Off Your Mortgage

Start to get aggressive with paying down that mortgage so that you can be totally debt-free by retirement. One way to speed up the payoff is to add one extra monthly payment per year towards the principal, which could leave you mortgage-free years sooner and with lots of money saved in interest payments.

Don’t Jeopardize Retirement To Pay For A Private College

Prioritize your own retirement savings over college savings. And don’t assume a private college with a brand name is necessarily the BEST investment. If you plan it out and do your research you’ll find there are many public colleges and universities have fantastic reputations, great resources and massive alumni networks for a fraction of the price. And if you have your heart set on a private school, enlist your kids to research that school’s financial aid – scholarships, grants and other ways of attending that school more affordably.

IN YOUR FIFTIES

Investing In Your Health Can Lead To More Savings For Retirement

Take care of yourself! Physical health correlates to financial health and reduced health costs decades down the line. The cost of health care is a wild card in retirement…But there are preventative measures we can all take to mitigate those health risks and health costs by exercising, eating right and staying on top of doctor visits.

Take Advantage Of 401(k) Catch-Up Contributions

If you haven’t been saving much or at all up til this point in your life, you need to get super aggressive. That means paring down costs and saving more than a third of your income. If you have a 401k at work take advantage of catch up contributions. Those who are 50 and older can contribute an extra $6,000. If you have an IRA you can contribute an extra $1,000.

IN YOUR SIXTIES

If Possible, Delay Collecting Social Security Until Age 70

Delay social security payments until 70 when you’ll receive the maximum benefit. If you can wait until then your monthly social security benefit will be 76% greater than had you started collecting it at age 62. Instead, if you need to, tap your IRA or 401k instead of social security…until age 70.

Think Twice Before Providing Financial Handouts To Children

Don’t become the bank of Mom and Dad. Your kids are grown but they may start coming to you to help with the down payment on their new house or whatever else they need. 1) You don’t want to enable your kids to think they you’ll always be there to bail them out and 2) Don’t compromise your savings and let your emotions of being a parent cloud your financial judgment. If you can’t afford it – say so!

Improve Your Work Skills & Prepare For Next Stage In Life

Age discrimination is unfortunately a real thing as we got older. If you hope to still work in your 60s…One way to combat that is to stay on top of your skills and start thinking about how you want to transition out of your current career. Think about what do you want to retire TO…and what will that mean as far as laying the foundation for that – new skills, networking. Start thinking ahead.

Then you'll love my newsletter. Join my private online community and receive exclusive content, updates and freebies. Plus, get instant access to my new mini e-book, So Money Secrets, a compilation of expert financial habits shared on my new podcast, So Money.

Money In A Minute on the TODAY Show

I stopped by my family at the TODAY Show and did a fun, new segment with Tamron Hall called, “Money in a Minute.”

According to a new study, 84% of Americans have financial concerns and about 50% struggle to meet their household expenses each month. We picked three viewers questions addressing three major topics – saving for retirement, building up an emergency savings and improving your credit score before purchasing a home – to answer in under a minute.

Check out the segment below:

Then you'll love my newsletter. Join my private online community and receive exclusive content, updates and freebies. Plus, get instant access to my new mini e-book, So Money Secrets, a compilation of expert financial habits shared on my new podcast, So Money.

Finances and Budgeting with Parents Magazine

I saw down with Parents Magazine editor David Sparrow to talk about the cost of raising kids. (Hint: It’s a lot.) I share tips for what you can do to stay on budget, defeat debt, and feel financially secure.

Check out our Facebook Live chat:

 

To check out Parents Magazine’s family finances survey click here: http://bit.ly/2cNUyka

Then you'll love my newsletter. Join my private online community and receive exclusive content, updates and freebies. Plus, get instant access to my new mini e-book, So Money Secrets, a compilation of expert financial habits shared on my new podcast, So Money.

Make an extra $500 a month

You know I’m all about finding ways to earn more money…and less about doubling your double coupons. (cue: So Money soundtrack)

For those of us who need to pay down student loan debt or save up for a house or grad school, “borrowing” your neighbor’s WiFi isn’t exactly the solution. (Not that I’ve done that.)

Nor is buying generic canned tuna. (But, I have done this.)

Enter: The side hustle. I did this in my twenties while working a full-time job as a news producer.

Babysitting, petsitting, freelance writing. Been there, done that.

In my column for this month’s O, The Oprah Magazine I interview 4 working women who are all bringing in an extra $500 or more a month.

With so many money-making websites and apps these days, it’s never been easier (or faster) to generate an extra revenue stream or two.

These amazing women use existing resources (e.g. their cars, laptops, etc.) to bring in the extra dough.

And they do it when they feel like it.

#Winning

I hope you’ll check out their profiles for more inspiration.

Here’s to boosting your bottom line!

Then you'll love my newsletter. Join my private online community and receive exclusive content, updates and freebies. Plus, get instant access to my new mini e-book, So Money Secrets, a compilation of expert financial habits shared on my new podcast, So Money.

Make money without *really* working

This week I joined the hit show The Doctors to share my favorite money-making apps. Making money from your smartphone has never been easier and doesn’t require all that much work.

Tune in to see what made my list of favorites:

Then you'll love my newsletter. Join my private online community and receive exclusive content, updates and freebies. Plus, get instant access to my new mini e-book, So Money Secrets, a compilation of expert financial habits shared on my new podcast, So Money.

A Personal “So Money” Announcement

I’m beyond-the-moon happy to share that starting this month I’ll be contributing to the Mint blog as a weekly financial writer! [Cue dance of joy!!]

I’m grateful to give back to the platform that’s given me – and my financial life – so much encouragement and guidance over the years.

I first joined the money management and budgeting site in my 20’s when struggling with a pile of debt and the high cost of living in New York.

What I loved about Mint back then (and still) was that it held me accountable. It was the honest friend who called me out when I made bad money choices – and even some good ones!

So, when Mint reached out to see if I’d be interested in joining their editorial team, I jumped at the opportunity. I was honored.

You can start reading my column this week. My first piece answers an audience member’s question about the best ways to save for college beyond a standard 529 plan.  [Because what if your child doesn’t go to college? What’s the best way to protect your investment?]

I hope you’ll join me there. The goal of the column is to serve and help you better navigate your finances, so please continue to send me your top questions and share your stories with me, via Ask Farnoosh or email me at Farnoosh@SoMoneyPodcast.com. 

Then you'll love my newsletter. Join my private online community and receive exclusive content, updates and freebies. Plus, get instant access to my new mini e-book, So Money Secrets, a compilation of expert financial habits shared on my new podcast, So Money.

My top shopping hacks

I love nothing more than scoring a sweet deal on something I need.

Like that time I strong-armed (er, negotiated) the car salesman to give me the price I wanted. He kept coming back (after “meeting with his supervisor”) with too high a price.

No go.

My next move: I politely asked him to make a photocopy of all the paperwork detailing the price and specifications of the car we wanted…and said that I would need to compare his offer at other dealerships.

Also worth mentioning: We’d been there for 3 hours.

As we were about to walk out the door, he said, “Ok, we have a deal.”

Farnoosh 1. Toyota Dealership of Manhattan 0.

While my car haggling story was more a game of “who can hold their breath the longest?,” snagging a deal doesn’t always have to be as time-consuming or laborious.

And with Labor Day sales fast approaching, I want to provide you with some of my best advice for getting shopping discounts.

They’re right here in my latest for O, The Oprah Magazine.

You’ll learn… 

How to always get a discount at some of your favorite stores even when there’s NO sale in sight.
A new online tool that’ll help you get a price adjustment on your purchase if the price drops (so you don’t have to worry about it.)
The truth about “charm discounts.” How they work – even at Prada!
The best things to buy in September.

I hope you can put some of these pointers to use this weekend or on your next shopping trip.

Happy saving!

Then you'll love my newsletter. Join my private online community and receive exclusive content, updates and freebies. Plus, get instant access to my new mini e-book, So Money Secrets, a compilation of expert financial habits shared on my new podcast, So Money.

In New York? Meet Me + a Basketball Super Star TONIGHT

In the Big Apple? Need fun plans (or free food) for tonight?

As part of my partnership with Chase Slate, I’m hosting a FREE special event with Brooklyn Nets breakout star Rondae Hollis-Jefferson in Brooklyn Heights this evening and I’d love to see you there!

In between bites, Rondae and I will be having a candid conversation about my favorite topic, money.

Some of my 60 Minutes-style questions will include:

How does Rondae avoid the pressure to live beyond his means in a flashy industry?
What financial lessons did he learn as a kid growing up outside Philly?
What are Rondae’s goals beyond basketball? (Turns out, he has a pretty big list, including finishing college in the next two years!)
How is he managing his $1M+ income to make sure he’s prepared for a future outside of sports?

And Rondae, because he’s a total sweetheart (I mean, really, you’re going to want to be his best friend by the end of the night), will also be happy to take pictures with fans.

The event, sponsored by my teammates at Chase Slate, is from 6-7:30p at the Chase Brooklyn Trust Branch located at 177 Montague Street (Take the 2, 3, 4 or 5 lines to Borough Hall or the R to Court Street and it’s a few short blocks away).

Hope to see you there!

Then you'll love my newsletter. Join my private online community and receive exclusive content, updates and freebies. Plus, get instant access to my new mini e-book, So Money Secrets, a compilation of expert financial habits shared on my new podcast, So Money.

Big Questions: Talking Credit, Small Business, and Puppies with Bark & Co.’s Henrik Werdelin

As a financial education partner with Chase Slate, I sat down for their Big Questions series with Mental Floss and interviewed the co-founder of Bark & Co, Henrik Werdelin. We talk about how he created credit for himself after moving to the U.S., starting his own business, managing his family finances and more.

Catch the full interview here:

Then you'll love my newsletter. Join my private online community and receive exclusive content, updates and freebies. Plus, get instant access to my new mini e-book, So Money Secrets, a compilation of expert financial habits shared on my new podcast, So Money.