My Money Story

Since October is gifting us with a fifth Monday, I decided to share the interview I did for my first podcast episode, when I launched Money Mondays with Sorana. If you prefer the audio version, please check out this and all the other episodes in the player on the right side of the page at the top. Here is the transcript:

1. What is your biggest money accomplishment?  

I think that my biggest money accomplishment is the fact that I have been able to be self-employed for over 10 years now in my adoptive country; and just being able to maintain that, and not having had to depend on anyone for a paycheck, represents an accomplishment that I’m proud of. And for me coming from a background within a blue-collar family that always depended on a paycheck, I think that is a major accomplishment. I am able to sustain my lifestyle and do the things that I want to do and not really depend on a 9 to 5 or a regular steady paycheck. Once I learned about

entrepreneurial ventures and the way they can work in the 

U.S., building my own business became a no-brainer. I’m happy to see the fruits of my labor and to wake up every morning knowing that I’m one step closer to my goals and dreams. 

2.     What is a money memory from childhood that comes to your mind right now?  

Well, growing up, my parents were, like I said, blue-collar. So, they went to work and brought home a paycheck. Back then it actually used to be cash. My mom’s job was to actually give out the wages in her department within the plant. Sometimes she would bring home new bills because since she was giving out the wages, she tried to put those to the side. So, she would take the money I had saved and trade it for new, crispier bills, better looking, prettier ones than I had at that time. And, for me, that was really cool because I liked the new money. Actually, to this day, I like the new bills that have no creases, and I’m still inclined to save them. 

So if I would get any new bills – let’s say instead of what in the U.S. would be five $20 bills, I would get one $100 bill – it would help me save money. I always had some cash stashed somewhere because I liked the feel of new money and I didn’t want to part with it. The newer and the bigger the bill, the better, because I would hold on to it the longest and I would not feel compelled to spend it on trivial things. I guess you could say this was how I learned to save.  

 

3.     What is your biggest money challenge? (currently or ever) – if past, how did you overcome it?

For me, the biggest thing was coming here (to the U.S.) and having to figure out how things are done in this country. Before coming to the U.S., I didn’t even know what a credit card was. I knew what a mortgage was only because we had one of those when I was growing up (though a lot different set up than here), but not what a credit card was. I didn’t know how those interest rates can cripple your finances for many, many years. So, I learned those lessons: some of them the hard way, some of them from other people. But it was a good lesson to understand all of that.  

My husband (the one I married before coming here, and whom  I’m still married to) is of the opinion that if he didn’t have enough money to pay it off, he would not buy it. And when I first arrived in the U.S. we needed reliable cars – or at least one, since at the time I was not driving. So, we got some clunkers for cars because he didn’t want to have monthly car payments. When I finally decided that was not going to work for me anymore, I had to learn how car financing worked, because he never needed it. So I had to learn on my own.  

We had 7 cars in my first 2 years in the U.S., and that was not because we had a lot of money and we wanted to have 7 cars, but because they were dying. At the time my husband was driving me everywhere. Based on that experience, when I started driving myself, and while having a career that required transportation because of a lot of field work, plus being a woman driving mostly by myself, I had to have a reliable car.

I had to have a car that would not die on the side of the road. That was a big one for me. From my need for reliable transportation, I learned a lot about credit purchases, credit score and credit history. It was quite stressful at the time but also very educational for someone who had no experience with the U.S. credit system. 

4. Share a money lesson you guide yourself by – your money mantra or belief.  

The most significant thing is to make sure that I have some money left at the end of the month. This way I know I’m OK at the beginning of the month. And the reason I’m saying this is because I’m self-employed, and I have to make sure that my months run together smoothly. I don’t know when the next check is coming, so I have to make sure that I have enough money for the next bill. That way, when I get my next paycheck, I have enough for the next bill. So that is my plan. As someone who had been working on commission for many years now, the planning from one check to the next is a little different from the employees with a predetermined amount coming to their bank account every week or every other week. 

I would not say I’m great at budgeting every dollar, but I became really good at establishing priorities and making sure the income went toward necessary expenses before going to unimportant things. Fluctuations in income (as all entrepreneurs can relate to) taught me to classify my expenses in 3 categories: fixed, flexible and discretionary. And this is how I managed my finances. 

5. If money were no object, what would your perfect day look like?  

Well, I’m an animal lover, so I would probably spend it with cats. I know that is not expensive, so it is not about the money, but that is what I would enjoy. I also like traveling so if money were no object, I would travel a lot more than I do now – and I already travel quite a bit. And if money really were no object and I had all the money I needed, I would probably take my cats with me on trips – which would be really interesting.   

I would also go back to Florida and visit the Big Cat Rescue, which is a sanctuary for big cats. And if I could have all the money that I wanted on a regular basis, and not just as a onetime lump sum but as cashflow, I would like to be able to donate to them enough to keep a tiger there. When I was there I learned that it takes about $10,000 per year just to feed the tiger – it doesn’t include housing, medicine, surgeries or whatever they might need. So I would like to literally adopt a tiger there – just feed that tiger for the rest of his or her life. 

Being able to help animals, especially cats big and small, and be a voice for them to enact changes in legislature and people’s behavior is my WHY for working on my business to grow it and make it a financial success. 

      6. Share a goal that you achieved that had a price tag.  

In 2015 I bought a brand-new car. I really needed it because my old one, even though it was still good and working, was kind of old by then. And I was able to buy the car paying it off in cash. That was really awesome because I don’t have to worry about a car note. I have a new car that hasn’t needed

(thank God) any repairs. And probably won’t need any for a long time. I’m a big fan of Corollas. I’m still in the same brand family, nothing fancy. But it is a car that I know I can rely on to take me where I need to go – and I do drive a lot. So I like to know that wherever I need to get, I can get there and I won’t risk dying on the side of the road because of the car failing.  

Achieving this goal was great not for flashy reasons and vanity but for practical reasons and because I wanted to practice what I preach. The new car was a necessity; a luxury vehicle was not. So I took care of what was necessary in setting and achieving my goal.  

For those listeners who want to get a car and cannot pay for it in cash and will have a 5- or 6-year loan, my advice to help pay that faster is to wait a little bit if you can. Look at your credit score and fix whatever you can on your credit report to raise your credit score – if it is not an emergency. If it is an emergency, then, of course, you go ahead and buy. If you don’t need to worry about your credit score, then you can buy. But most people have little bumps and bruises on their credit report. Fix your credit report as much as possible before committing to a purchase with a payment whose size is determined by your credit score. The higher you can get your credit score, the lower your interest and your monthly payments will be.  

Once you get the car, pay a little extra each month (however much you can, without putting yourself in a bind). My first car that I financed, the car I traded in last year, I had a 5-year loan on it. I wanted to pay a little more; so I actually didn’t take the whole 5 years on it. It feels really great not to have a car payment. That is why, though I wanted a new car, I was really determined not to get a new loan, because I knew how good it felt not to have a payment. So, if you can, and there is a way to ask them to put the extra toward the principal, that is what you want to do – make sure that principal goes down. 

7. If you could double your income, what would you do with the extra money?  

At this point, if I doubled my income I think that I’d probably save some of that toward purchasing my dream home. We do own the house where we live, but it is not the dream home. It is the house that we got, and we are glad to have it. It would be great to have a dream home at this time because I don’t want to be retired and cut grass and do maintenance, so by then, I would probably be ready to downsize. Therefore, if I can hurry up and get my dream home now, I can enjoy it for some years until that time comes. That would probably be what I would do with the extra money. And, of course, save some for later, because I’m always planning for my retirement. 

I need to point out that I don’t see retirement as a vegetative state – posing as a couch potato – but as a time when I work because I want to, and not because I have to. I also see retirement as a time when I focus more on giving back – through the charities that I support, and working on changing the world. Just heard the phrase “going from success to significance” recently and it spoke to me; it suggests a time when I would focus exclusively on helping the community, and most of all, the animals I love – without tracking numbers (activity and revenue) for my business. 

8. What is the one thing you wish you knew when you were 21?  

At 21 I graduated from college back in Romania, so I really had no idea what I wanted to do with my life, other than start a career in the travel industry. I started working for a travel agency that was owned by somebody that I didn’t really respect a lot because he didn’t seem to know what he was doing within the agency. If I could look back from where I am now and talk to myself back then, I would say “Don’t worry about working for these people, because that is not what you are going to do for the rest of your life, so you don’t really need this kind of experience.” But it is funny how we go to school… and actually my degree is in tourism – and I really wanted to work in travel agencies. My goal was to travel to different places and know more about places where I can tell people to travel. And once I moved to the U.S., even though I’m still traveling, I don’t do that for a living. So it is funny that I just am on a totally different career path. I would probably say that it is best to learn as much as you can about the business side of whatever business you are in. 

Even if it is not your own, don’t learn just how to do whatever your job is. Learn how the business is run because if at any point you want to start your own business, that is the number one thing that you are going to use. That is the most important knowledge: be an apprentice of the business, not just the craft. You can then use the knowledge with whatever craft you develop later. 

A lot of people fail in their businesses due to not knowing the business aspect, not because they are not good at whatever their business is. If you are a fantastic baker, you may have the best cupcakes or the best cakes ever, but if you don’t know how to run a business, you can still go bankrupt. Or if you are a good plumber, it doesn’t mean you know how to run a business. So that is probably what I would tell myself: “Learn as much as possible about running the business, not just the activity you are responsible for.” 

9.     What advice would you give a woman just starting her business/career?  

If she hasn’t started the business yet, I would say “Talk to somebody who is in the same business you are interested starting, someone who is already successful in that field, someone you admire and respect. And ask them if you can hang out with them, help them around their office or anywhere in their company and learn how things are run. Offer to be an unpaid intern and see what you can soak up.” You don’t have to do it forever. And don’t look at it like you are just slave labor and you have to work for free and they don’t pay you. But look at it as an opportunity to learn how the business is run. This is an opportunity to learn for free, whereas in college you have to pay for the information. Take advantage of this free education opportunity. 

Like I said, you may be the best baker but you have to have some business acumen. And really the only way to learn it is by soaking up from somebody else who is great at it. Because you can read books and go to school, and the professors can tell you, but ultimately, they are just professors, it is not like they have businesses – some might, but most don’t. 

So, if you talk to whoever you are working with, find a mentor that can guide you. Look for the person that you want to be when you grow up. Find that person, and then try to hang out with them as soon as possible and for as long as possible. Because that will help you learn a lot about how to achieve what they have already achieved. It is an opportunity to learn from the best. 

10. If you could spend 3 days with a millionaire/ billionaire, who would that be and why?  

One of my favorite people is Jon Bon Jovi – I really love his music. I’m not sure if he is really a multimillionaire (many times over) but I know he is very successful and I would love to spend some time with him and see how he runs his companies. If I could hang out with him for 3 days, I think I would learn a lot because it is not just about the fact that he can sing – which he can. Ladies, I hope you agree with me! But he also does have a great business mind.  

I was watching a documentary, and he was calling somebody about setting up a meeting, and they were giving him the runaround. And he said “I am the CEO of a multimillion dollar corporation, I demand that we do this or otherwise I don’t care; I’m not interested.” And at that point I realized that he is absolutely right; he does run a multimillion dollar corporation.

So I would love to learn something from him. I believe he knows what he is doing. Another great point I still remember from the same documentary is him saying “this is not a democracy” – when referring to the Bon Jovi company. I took to heart the idea that someone has to make the executive decisions and take responsibility for the outcomes.  

Keep More Money Month - Chapter 4

Since we talked about tax deductions last week, we will finish off the month with a few more words about the way you can save money on your taxes. There are many things that people think they can deduct but that in fact not deductible. The one thing that comes to mind is the expense for clothes. I have talked to many women who think that the expense for business clothes is tax deductible.

Much as we can justify paying for business suits and using those suits to make a great impression, the expense is not a business tax deduction. Since the business outfits can be worn outside of business meetings, these expenses are not exclusively for business purposes, and therefore the price of the business clothes is not deductible. The only clothes that you can deduct are those that have a logo. If you wear apparel with your company logo you can take a deduction for the price. Besides, when you wear this outside of business meetings, you will be advertising your business all the time.

The opportunity to share your business with everyone you meet is also an advantage when it comes to tax deductions. You may not want to spend a lot or money on personalized apparel in the beginning, however it could be something to consider in the long run. This is one more reason to create a logo that you like and that represents you and your brand well. Of course, nothing is set in stone - there is always an opportunity to do better once we know better. And the same applies to your branding.

One tax deduction that a lot of people miss out on is the expense they incur with their car. Most women in business that I have talked to take the deduction, they are aware of the fact that the auto expenses are tax deductible, however, they don't keep good records of the mileage driven for business and therefore the tax deduction is many times a guesstimate. The biggest issue is that without good records, the IRS can decide that the deduction is invalid in case of an audit. The second issue is the possibility of the deduction taken being smaller than the correct amount; in this case the women business owner end up paying more taxes than required.

There are a lot of apps now available for mileage tracking. The most common ones are TripLog and MileIQ. Some of the business programs used for accounting and reports can also be used for mileage tracking - the one that I know of is TaxBot. If there are others, I would love my readers to post their favorites in the comments. I would like to know what others use, and what programs can do, so that I can check them out, and also improve my tracking for business expenses and deductions. 

Money Lessons from 2 Countries - Chapter 4

After talking about college education and the cost of it, and credit cards and other credit tools that are available more in the US than in Romania, this week we will talk about the way to earn money through work and investments.

I grew up during a time when all employees were paid in cash - in fact, my mother worked in the department that was in charge of giving out the wages 2 days a month. I remember my mom bringing home new bills, and then exchanging my savings to new crisp bills - the higher the value, the better. I have talked to many American friends who have memories from their childhood regarding saving money, and many of their stories are similar to mine. The main difference is the time of the childhood. My American friends talk about the 1960's and 1970's while my memories date from after 1985 - guess Romania was a little behind in adopting the plastic and the ACH as a method of collecting wages.

During the communist regime, we only have a central bank in the country and all the savings went there - building up a small interest for staying parked in the account. I remember taking a long time to collect an amount that I liked looking at and dreaming about. The system was set up in an artificial way that limited the inflation, therefore the value of money didn't go down much over time.

As soon as the Revolution changed the financial system in Romania - among other things - the inflation hit full force and many Romanians (including me) saw the value of the savings accounts shrink. the new "fashionable" savings accounts became the ones in foreign currency. This was quite profitable for a time - until the interest on in became so low that it lost all its appeal. The main challenge for the Romanians came a little later, when the banks caught on with the appeal of making more money from foreign currencies and started offering loans in foreign currencies. I have friends who are still struggling to pay off loans taken out in Swiss Francs many years ago.

From my experience with the financial system in the United States, I learned to appreciate the stability of the national currency that maintains the values of loans as well as savings on a level that can be easily understood. Since the banks make profits by trading money, the interest on savings is always lower than the interest on loans. This makes sense on a logical level, however much it affects the average Joe or Jane who is trying to make their money work for them. 

For now, I will stop the stories of my 2 countries. Next month we will be talking about money tips that can help you keep more of the money you make.

New Year Resolution... again?

This is the last time we talk in 2016, so I will keep it nice and short. And I first want to wish you a VERY HAPPY 2017!

As we are getting closer and closer to the end of the year, it is perhaps the best time to reflect on the good, the bad and the ugly for 2016. It is a time to make plans for the New Year – what most people call RESOLUTIONS. Well, this is also your chance to make a choice: the choice that this time you WILL do those things you have been promising yourself you will do.

Do you know how many people decide there are going to lose weight or get out of debt in the New Year? Though I don’t know the exact number, I just found a statistic that shows the top 10 resolutions for 2016, and “Spend less, save more” is number 3, behind only “Lose weight” and “Getting organized”. Wow, by comparison, “Falling in love” and “Spend more time with the family” are the bottom 2 in this top. Does this surprise you? For me the surprise is that I was right. I thought that the HARD WORK type of resolutions top the list.

The other scary statistic is that only 45% of Americans even set a New Year’s Resolution, while about the same number (39%) say they never do it. And what is even more scary is the fact that from those 45%, after 6 months, almost half (46%) even keep track or work towards achieving those resolutions.

All things considered, my wish for you is to make your MONEY RESOLUTION for 2017 your last attempt at achieving it. I want to talk to you in 2018 and beyond about how you are maintaining the great systems you set up, and not how you are starting to save.  And in order for this to happen, I would like you to start working on your financial goal NOW. Remember, the Chinese said “The best time to plant a tree was 20 years ago; the next best time is now”. 

What is your goal for 2017? Please share, and I promise to hold you accountable for it to be the last time you set that exact goal - because it will be accomplished.

Thanksgiving dinner conversation

If you just spent your holidays with your aging parents, you probably worried (or maybe even talked about) the set up for their final arrangements. Maybe you are already in charge of their affairs because they cannot take care of certain things by themselves anymore…

If you are one of the few lucky ones to know what is going on with your parents’ estate planning, and where their documents are located, I would like to congratulate your parents! Most of the people I have spoken to were not that fortunate when something happened with their loved one. This is a topic that we don’t usually talk about. However it is very necessary, since death is the only certainty we have in life. And whether we talk about it or not, someone still has to deal with it -  either us while we are still of sound mind and body, or a loved one, when we are not around anymore.

So, let me ask you: when was the last time you talked to your family about your estate or your wishes (should you not be able to express them)? And if you told them what you wanted in case you become incapacitated, did you put that in writing? And, most importantly, do they know where the paperwork is (if you have it)?

Most Americans don’t have their wishes written down. And, unfortunately for the families left behind, of those who have it in writing, many don’t tell their family where the paper are.

If you are a grown child of an aging parent who mentioned a long time ago that they want to be cremated, or that they don’t want to be kept on life support… maybe you can ask them if they still feel that way now. And maybe the next time you see them, you ask them to put it in writing. Also, make sure to ask where the papers are located.

When adult children move out, the parents move things around the house, and some of the things that get moved, are the important papers. Once you move out, you may not know where your parents keep their paperwork. It is always a good idea to check with your parents where their papers are now located.

If you are participating in the gratitude challenge from earlier this month, maybe something to be grateful for is the fact that you are still capable to take care of all your important documents and don’t have to leave your family to deal with everything in their time of grief. And then get it taken care of NOW.

What are you grateful for TODAY?

This is the month of Thanksgiving – the month of Gratitude. Not that we should not be grateful all year long… But in case you kind of forgot this year… let’s talk GRATITUDE today. It is not too late to start now. And if you read this post, I hope you take me up on the challenge I will issue at the end of it.

For now, let’s get started on what is the connection between money and gratitude. And how can your gratitude and appreciation for the things you have and the things you are able to do in life can translate in more money for you.

Tony Robbins often says “Where your energy goes, that grows.” That is true. We are beings made of energy and can influence the energy of our surroundings. Therefore, if you focus on plenty you will have plenty, and if you focus on scarcity, you will have scarcity. I know that I always say that my focus on sharing my thoughts is more on the practical side of money and I will get to that in a second. Though I need to make clear the fact that if you believe you have enough, that there is enough out there for you, then you will have it. Sometimes it may not seem like it, and that is the toughest time to believe. However, that is necessary for you to achieve.

When you believe it, then you can achieve it – may IT be money, a career or any personal goal. So that is why it is important to not just do the mechanics, but also get our brains and our feelings involved. When we start the day off with a good thought and happiness for the things that will come our way, we get more things that can make us happy. When we are grateful for what we currently have in our life – and we all can find at least one thing that we like and we appreciate – we will attract more things that we like and appreciate.

Zig Ziglar always said that if you want to lose weight, you cannot think like a fat person. Your brain does not understand the word NO, so it will bring into your life more of the things you are thinking about. So you cannot think like a poor person, and I believe we are all rich in our lives. You may say that is not the case with you but I know that money is not the only thing that measures the riches. And I will be the last person to tell you that you should not focus on money – after all, this is a blog about MONEY. All I’m saying is that you need to start somewhere.

Think about the things you have in your life that you are grateful for, and not the debt or the bills or the worries. Think of the good you will do with the money coming into your life, and be grateful you are here today to have a chance to work towards that good. And more good will come your way.

So my November challenge for you is to write down 3 things you are grateful for. And not just one time but every morning before starting your day, for the rest of the month; or the rest of the year if you are even more courageous. And then, come back and leave a comment with the 3 things that are on your list that day, or the most frequent ones. I would like to know and be your cheerleader.    

Money Mondays Episode 6

spreaker.com/show/money-mondays

Check out the new episode to learn more about a topic you might find scary... Budgeting. We are helping you make friends with your budget, so you can achieve your goals and take confident steps toward your financial serenity. Emerald Sparks shares her money story, and you can learn how a young woman was able to buy her first car while in college, without having to take on a car payment. Can you learn anything from her story?

Money Mondays episode 5

https://www.spreaker.com/show/money-mondays

We talked about different types of insurance, and which ones are necessary to have and which are nice to have. And if you listen to Regina's story, you can learn how all the best laid plans can go awry and sometimes you have to pick yourself back up and keep going.

Money Mondays episode 4

https://www.spreaker.com/show/money-mondays

We talk about protecting yourself and your family. We talk about responsibility. And then Bunny Young shares her money story with you - a story from the heart with a lot of heart, and money lessons that can serve you well, on the way to your Financial Serenity.

Money Mondays episode 3

https://www.spreaker.com/show/money-mondays

This show introduces you to Dr Samantha Madhosingh and her money story - and it is a genuine treasure. We also talk about retirement and how to prepare for it. One more step towards your Financial Serenity.

Money Mondays episode 2

https://www.spreaker.com/show/money-mondays

Listen to Amy's money story, learn from the lessons she shares and build your goals. This episode will also teach you a painless way to save for a rainy day.

Money Mondays episode 1

 

https://www.spreaker.com/show/money-mondays

This is the premiere episode of a new show where we break down the money lingo, so we all can achieve Financial Serenity. Learn about SMART goals and how to achieve Financial Serenity.