Today’s post is an informal case study on why taking breaks is crucial for our mental and physical health and, therefore, our financial health.

I’ve now been officially back from maternity leave for about a month and a half and am slowly figuring out my schedule and the realities of being a working parent during a pandemic. The logistics are not simple and I’m not sure I’ll ever master them (perhaps that isn’t even possible). In general this is how things are supposed to go: I work about 20 hours a week. Vidalia is in daycare for 15 of those hours and the other five are cobbled together from other times throughout the week -- naps, times when she is with her dad, early mornings before she’s up...you get the picture. We will increase the amount of time she’s in daycare in the coming months, but for now this is what feels best for all involved, and, in theory, the plan works great.

In reality the whole system could fall apart at any moment because of any number of “children-are-gross-and-there’s-a-pandemic” reasons: 

• Vidalia could get sick and need to stay home

• Vidalia could get one of her parents sick and we’d have to keep her home because of Covid protocols

• One of Vidalia’s classmates could get Covid or someone in their home could get Covid and the whole classroom of kiddos would have to stay home

Basically there are a lot of ways that childcare can disappear at the drop of a hat. 

Because of that I often feel like I need to use every little moment I have available to get work done. A little voice in my head eggs me on reminding me that I don’t really know that I’ll get those 5 hours of childcare so I should really use this 6am hour on a Sunday to respond to emails. As you likely can imagine, that little voice in my head has been making me feel like I’m both always at work and never really working enough, when in fact I had a plan for working part-time in 2021 and if I just stuck with it then I could get what I need to get done. I won’t get everything done, but, as I said last week, that isn’t possible anyway.

This weekend I decided to try a different approach at making that little voice shut up. Instead of giving in to its demands, I resisted. I didn’t do any work on Sunday and Monday. I read a book. I journaled. I went on a hike with my husband and daughter. I drank my coffee while talking to my cat. I called my sister. I went on a run with a friend. I played with my daughter. And you know what? It was incredibly restorative. It is now Tuesday morning and I feel happy to use this little window of time to work on the newsletter and I’m looking forward to daycare time this afternoon when I can tackle the rest of my action items for the day. I don’t feel exhausted. I feel ready.  

I think the same thing happens with money work. Sometimes we focus so much of our mental energy on something, whether it’s squirreling away money in our emergency fund, whittling down credit card debt, or tracking our business revenue, that we become exhausted. Those goals are all good, but spending too much time on them can make us lose sight of the reason we’re shooting for them in the first place. So, if you’re working hard on a money goal and feeling exhausted, can I recommend a weekend away from it? Maybe just a little time apart will make you feel more motivated when you come back to it. 

XOXO

Last week Safiya Bouhouch of I Am Well shared a piece on mindfulness. In it she explained that a mindfulness practice doesn’t have to be super complicated - instead she recommends starting with three steps: hydration, meditation, and breathwork. Meditation and breathwork can seem slightly daunting to me on busy days, but I always feel like I can hydrate! So, since last week I’ve been working on making sure that I drink at least 8 glasses of water a day. And you know what? It is amazing. My skin is clearing up after a few weeks of frustrating breakouts, I have more energy throughout the day, and, most importantly, my thoughts are less muddled and I’ve gained back a bit of optimism that seemed to have disappeared in 2020. 

In fact, I started feeling so optimistic that I let myself get carried away with what else I thought I could achieve. I started thinking along the lines of, “If I can drink enough water and help my skin and clear away some of my anxiety, maybe I can make some other mindfulness tweak (meditation let’s say) and then finish everything on my to do list! You know, that real to do list that is a million miles long.” 

And that’s how I got to the subject line in today’s newsletter. You, unlike me in my moments of hubris, probably know that doing it all isn’t possible.  

Except, maybe, like me, a part of you really hopes that it is possible. You know it isn’t, but you can’t help but hope that with the right advice you’ll figure out what you’ve been doing wrong and all of a sudden you’ll be able to do everything you want all at once. I know I feel that way, and it is certainly something that comes up with clients. 

But, we all know deep down that we can’t actually do everything. There simply isn’t enough time. And, the older I get the more thankful I become for that fact. Having to choose means that I get to focus on the things that make me happy and prioritizing forces me to be more thoughtful. If I could do everything then nothing would actually be that special. 

Prioritization is necessary in all aspects of our lives -- we can’t do all the smart financial things at once because we don’t have enough time, money or support to do so. And that’s okay! The problem often is figuring out what in our list we actually should focus on first. So, if your list looks something like this: 

Buy a home

Save for retirement

Save for taxes

Save for emergencies

Save! Save anything!

Make a will

Find a financial coach

Figure out what to do with that old account

Find my login information for that IRA I haven’t looked at in ages 

Reach out to my CPA

Pay off my credit cards

Look into a personal loan

Open a business account

...and you’re not sure where to start, I have a quick piece of advice. Order the list based on how time sensitive each item is and then only focus on the first three things. You won’t get it all done immediately, but you’ll start making progress and knocking down that first domino is often the hardest part. 

Oh, and go drink a glass of water. 

XOXO

P.S. If your list feels daunting and you’re not sure what is actually the most time sensitive or you know, but you don’t know how to actually do the thing then financial coaching may be a good fit for you! You can schedule a free call with us here.

By Safiya Bouhouch

When you think of wellness, what comes to mind? For many of us, we equate wellness with green juices, yoga mats, and starting your morning with adaptogenics and wellness tonics, but the truth is wellness can be simple, and free!

While filling your body with nourishing foods is important to your wellbeing, there are three basic pillars of well-being that are non-negotable for me as a meditation coach and wellness practitioner: hydration, meditation, and breathwork.

Hydration - so it’s old news, but it’s true! Hydration is key to making sure our body is working optimally, and aids in digestion (and it’s free!) If you’re feeling tired, sluggish, or have headaches, check to make sure that you’re drinking enough water!

Switching out soda, juices, and sugar-heavy beverages with a glass of water and a spritz of lemon or lime is a great way to stay hydrated and is budget friendly too! Drinking half your body weight in ounces is a general rule, I make sure to drink 3-4 large mason jars of water a day.  

Meditation - the benefits of meditation are endless, from lower stress levels and better emotional regulation to higher cognitive function. Meditation allows us to create space between ourselves and our thoughts and emotions, and it gives us more clarity on how we can navigate challenges - whether emotional, financial, or physical.

I start my day with 10-20 minutes of meditation before looking at my phone or checking emails. If you find your mornings or hectic, see if waking up 30 minutes earlier to get some meditation and reflection time works well for you! There are endless meditation apps and platforms to use, my personal favorite is doing this 5 minute simple breath focused meditation. 

Breathwork -  If the thought of looking at your finances brings up a lot of worry or stress, breathwork is a great tool to help regulate stress and bring some mindfulness around your emotions. One form of breathwork I practice whenever I find myself feeling stressed or worried is conscious 3 part breathing.

As you inhale through your nose, visualize your breath filling up your lower belly, and then rising into your chest. As you exhale, gently pull your belly button into your spine, releasing out your nose. If you’re able to slow down your inhales and exhales to a 6 second count, your body is able to enter a state of coherence where your nervous system relaxes and the physical symptoms of stress dissipate.

If you start with these 3 simple tips and start to create habits in your day where you’re mindfully breathing, meditating, and recharging your body with rest and hydration, you’ll start to find that your energy levels will increase, and your stress levels will lower.

Making shifts in your well-being can feel daunting, but if you take it a day at a time and start to build in routines and rituals, you’ll find that sometimes the smallest changes are the most impactful!

Bio: Safiya Bouhouch is a meditation coach for entrepreneurs who are ready to step into their power and leave anxiety and overwhelm behind. As the founder ofI Am Well, Safiya uses mindset and meditation as tools to support solopreneurs in healing from burnout and reconnecting to their intuition through mentorship, events, and retreats.

Marguerite and I talk about mindfulness with our clients regularly, but we don’t always use that term. Instead we ask clients to consider their emotions when they are dealing with their finances. We ask them to “check in” and use that information when creating goals and plans. Those check ins are crucial for creating new money habits that are sustainable for their lifestyle and aligned with their values, but sometimes, in order to really get aligned, it is important to go a step further.

I’ve recently realized that my additional mindfulness habits have become a little shaky. As such, I’m not positive that how I’m dealing with my money is fully aligned anymore. This happens naturally over time since our values and lifestyles change, but it has been a bit more extreme for me than in the past because of how drastically my life changed in 2020. My first child was born in September and since then almost every waking moment (and, tbh, most sleeping moments) are focused on her. 

I’m not sure I’m actually misaligned, but I do want to be sure, so I can figure out what money habits and goals I need to change. Since I no longer have the same flexibility in my schedule, I’ve had to modify my old habits for my new life: 

I’m thrilled to announce that the incredible Safiya Bouhouch of I Am Well Community will be sharing a guest post next week. She is much more knowledgeable about mindfulness techniques than Marguerite or I will ever be and is planning on sharing a few gems that can help us all on our money mindfulness journey.

XOXO

The Verdi Money Club starts in one week and Marguerite and I have been spending a lot of time thinking and talking about how to help club members reach their money goals. Reaching these goals can be very challenging, but we’ve often found that the more difficult part is actually determining what the goals should be in the first place.
​

Folks tend to go in one of two directions. Either they start dreaming about a financially perfect life and go overboard on the scale and number of goals to set for themself or they get so wrapped up in the how (i.e. I’ll order takeout only once a week, I’ll cancel all those subscriptions I don’t use, etc.), that they end up creating goals they feel like they can reach (or should reach) and not that they want to reach. Goals that aren’t aligned with your true desires are hard to stick with, but, on the other hand, goals that are aligned with your desires, but aren’t grounded in reality are fun to think about, but impossible to reach.
​

I was thinking a lot about this goal issue when I sent out a newsletter with some thoughts on the concept of manifestation a couple of weeks ago (you can read it here if you missed it). I shared how Marguerite and I get really frustrated with manifestation for a whole host of reasons, but one in particular that Marguerite brought up is especially relevant when talking about money goals. She told me about studies that show that if someone tells you you can get $5k by saying that goal out loud, and you say it, but you don't get the money, studies show you're likely to be hard on yourself, as if your "low frequency vibration" is a personal failing. It isn’t a personal failing! It is just indicative of something wrong with the goal. Maybe the goal itself isn’t based on your financial reality (i.e. you’re in school and lost your part-time job, but your goal is to buy a new car in the next 3 weeks) or maybe the action items that will help you reach your goal aren’t correctly aligned (i.e. you’ve decided you’ll save $300 a month by changing your food buying habits, but you don’t actually know what those habits are or how to change them), or maybe you don’t have action items to follow at all and you’re leaning in towards the extreme side of manifestation and hoping that saying your goal out loud will make it come true (it won’t).
​

Some folks are excellent at determining goals and action plans for themselves, but most of us aren’t -- myself included! Even though I can create appropriate action plans, I need help creating the goal itself. And that is one of the reasons we created the Verdi Money Club! Without goals it is hard to improve your financial reality, but with bad goals it is impossible.

We’ll help you figure out:

1) what you really want

2) what makes sense for you and your life right now

3) how you can get there and then keep going!

​
Does that sound like something you need in your financial life? If so, there’s only one more week left to sign up and we don’t want you to miss out! If you’re ready to join click here. Want to schedule a time to chat with us first? Click here.

xoxo

Throughout my maternity leave Marguerite and I have had weekly check-in calls. These calls were originally scheduled so that we could discuss client issues, emails, and client work while I was on leave. That certainly has happened, but something else happened during these calls that I wasn’t anticipating: we’ve gotten a chance to chat casually about financial topics that are on our minds. It is such a simple act and yet one that I hadn’t realized I desperately needed. I had been running Verdi Advising solo for several years before Marguerite joined the team in the beginning of 2020 and I am continuously thrilled by not being alone on this journey anymore. Pre-M (as I think of 2019 and before) I had to have these conversations with myself. Or my cat, who, while being an excellent listener, isn’t so great at the give and take of a conversation. All that is to say that last week we got started on a topic that gets us both really angry. 

Manifestation. 

I know, I know, it is a very popular term, especially in the crunchy, feel-good coaching instagram community of which we are peripherally a part. And books by Jen Sincero and others have made it even more popular. Don’t get me wrong, mindset is incredibly important. If you don’t believe that you are capable of something then it makes it very unlikely that you’ll actually do that thing. Money mindsets are often negative and can be extremely destructive. And, because money is a taboo subject in this country, these mindsets are often very deep seated, but not consciously explored. That is a powerful(ly bad) combination. Therefore, we often work with clients on mindset issues by exploring their origins and rewriting the narratives to better fit their goals and reality. In fact, those mindset issues are the first thing we tackle in the Verdi Money Club! 

It isn’t mindset that got us raving, it is this idea that if you just say your goals enough they’ll happen. It is the glossed over version of manifestation that is popular on social media -- the one liner, the mantra, the perfect insta picture. Yes, saying your goals over and over to yourself will likely help you reset a negative mindset, but if you don’t have the knowledge or skills that you need to actually achieve those goals then they won’t come true. No amount of chanting “I will make $5,000 today” will bring me that $5k. Moreover, manifestation can backfire. If someone tells you you can have $5k by saying it, and you say it, but you don't have it, studies show you're likely to be hard on yourself, as if your "low frequency vibration" is a personal failing. It is not.

Unfortunately, Marguerite and I see that belief come up all the time and we want to tell you it’s not your fault! Making changes in your money life is incredibly hard and manifestation seems like an easier route -- we get it! But, if you really want to make changes, whether to your spending habits, debt, credit, saving, or income, you will likely need a few things other than a mindset shift. You will likely need some new skills, an accountability system, and some knowledge to help you implement new actions. That’s why Marguerite and I do the work that we do -- both with 1:1 clients and in the Verdi Money Club. 

So, as we round out the year and you start thinking about 2021 goals, we encourage you to look at those money goals and ask yourself what supports you need. Maybe it is as simple as doing a little googling. Maybe you need to reach out to a friend who will help you stay on track. Maybe you need support from a coach or a group coaching community. Whatever it is, be kind to yourself, be honest with yourself, and we promise you’ll be way more likely to reach that $5k in a day goal than if you just repeated that phrase over and over in the mirror. 

XOXO

We are in the thick of the holiday season and Verdi Advising is closed for the week so today’s newsletter is going to be pretty short. Instead of a lengthy post, Marguerite and I wanted to share a little tax advice that could help out some of your favorite organizations.

Before sharing that tip, I want to take a moment to thank you for your continued readership and support throughout this bonkers year. I founded Verdi Advising on the belief that everyone is capable of handling their money well if they are given the opportunities to become financially literate. This year has confirmed that belief (over and over) and I’m so thrilled that Marguerite joined the team so that we are able to help more people reach their goals. We have several exciting things launching in 2021 (course with ilovecreatives, new workshops, the Verdi Money Buddies) and we can’t wait to tell you all about them! Please stay tuned, be kind to yourself, and don’t hesitate to reach out with questions, comments and concerns. 

And now on to a quick tax tip! 

You can deduct up to $300 of charitable donations from your 2020 income when you file in 2021! This means that on top of the standard deduction ($12,400 if filing single or $24,800 if filing joint) or your itemized deductions (which you should do if you can deduct more than the standard amount) you can deduct $300 if you give that much to 501c3 organizations. Nonprofits have been under an enormous amount of strain this year and, if you are financially able, I know they would really appreciate your help. If you haven’t quite finished holiday gift shopping yet this can also be a great last minute gift idea. It helps your favorite organization, gives warm and fuzzies to your family member or friend, and helps your tax liability. Win, win, win!

XOXO

Last week I shared information about bankruptcies -- the basics on the two most common personal bankruptcy types and when it may be time to look into filing. If you missed the post you can read all about it here. This week I’m going to share more about the repercussions of filing for bankruptcy. For some people who are considering filing, these repercussions may be severe enough to hold off and continue to look for other options. For others the repercussions may feel completely worth it in order to become debt free. If you feel that way then that is often a good indicator that bankruptcy may be the right decision for you. 

The consequences of filing all really fall into three categories: 1) cost, 2) loss of property, and 3) damage to your credit score. Let’s focus on cost first. 

Even though you can file for personal bankruptcy without the help of a lawyer, it is advisable not to do so. Filing is a complicated process and having a lawyer to help you will make it a whole lot less stressful and often means the debt plan that is created for you is more in your favor. Not surprisingly, attorney fees range pretty widley, but generally the less complicated your case, the less it will cost. At most it is likely a few thousand dollars. Of course even if it is a lot less than that the cost can seem insurmountable (I mean, that’s the whole reason you’re looking into bankruptcy in the first place, right?). The good news is that most attorneys will help you work out a payment plan ahead of time and some attorneys will actually take bankruptcy cases pro bono. The other major cost for filing bankruptcy are the court filing fees, which typically are between $300-400. 

The second consequence of filing for bankruptcy are the assets you’ll lose through the bankruptcy agreement itself. If you file for chapter 13 bankruptcy then your agreement will likely let you keep most of your property, but you’ll definitely still have to give up some assets. If you file for chapter 7, then you’ll likely have to give up a lot more. Depending on what you own and how you feel about those things this may or may not feel like a big ask if in return you are able to get out of debt.

The least straightforward consequence that you’ll need to consider is the damage bankruptcy does to your credit score. Chapter 7 bankruptcies stay on your credit record for 10 years and Chapter 13 bankruptcies stay for 7 years. That is a really long time to deal with a hurt score! During that time period potential lenders will be able to see that you filed and may not be willing to lend you money for fear of not getting their money repaid. Since the ease of getting a loan is in part due to the wider economy (i.e when the economy is strong lenders usually feel more optimistic and are more likely to lend money), it is hard to say exactly how difficult it will be to get a loan or a credit card while the bankruptcy is on your record, but it will definitely be challenging. For some people that may feel totally worth it. In fact, a lot of folks have no interest in going into any kind of debt after having been in it in the past. Just don’t forget that car loans and mortgages also count! For some reason our society looks at those as “good debt” and therefore we sometimes forget they are still debt and we need approval from lenders to get them. 

Filing for bankruptcy shouldn’t be taboo the way it is in this country. Of course it would be nice if we all could have perfect financial records and never get into hot water, but in a country that encourages debt and does not provide sufficient supports for folks to earn livable wages, it seems inevitable that bankruptcies exist. About 70% of Americans have less than $1,000 in savings. That means one medical bill or one car repair could wipe that out plus some. Until we, as a society, are in a more stable place we need to accept that all ways of getting out of debt are legitimate and good.  

XOXO

Bankruptcy. 

Does that word send chills down your spine? Give you heart palpitations? Make you think about certain politicians who seem to use it as a get out of jail free card? All fair, but the truth of the matter is that most people don’t really understand what it is or how it works. And, unfortunately, it is one of those financial topics that has become so taboo in our society that it can be hard to figure out the truth about it. 

Next week the newsletter will focus on the short and long term repercussions of filing for bankruptcy. Today we’re going to start with the basics: 1) What bankruptcy is (and is not) and 2) When it may make sense for you. 

Bankruptcy is one option in getting debt relief. Individuals and businesses can both declare bankruptcy, but the legal ins and out for each are different. I’m going to focus on personal bankruptcy today, but if you want to learn more about business bankruptcy, shoot me an email and I’ll add that to an upcoming newsletter! 

The two most common types of personal bankruptcy are Chapter 7 and Chapter 13.

CHAPTER 7 BANKRUPTCY:

• Known as a “straight” bankruptcy

• A federal court trustee supervises the sale of your assets (things you own)

• The proceeds from the sale go to paying your creditors 

• The debt that is still owed after the sale is forgiven, or discharged

CHAPTER 13 BANKRUPTCY:

• The court and your lawyer negotiate a repayment plan (this usually lasts for 3-5 years)

• After you complete the 3-5 year plan then whatever debt you still owe is forgiven 

• You get to keep your assets 

Unfortunately, not all debt can be forgiven through the bankruptcy process. Debts that can’t be forgiven through bankruptcy include: 

• Court ordered payments (i.e. child support) or fines

• Most student loan debt 

• Government fine

• Federal taxes

• Any debt that is reaffirmed during the bankruptcy process

Okay, now that you know the nitty gritty basics, the real question is: Is bankruptcy the right choice? And, not surprisingly, that really depends. Bankruptcy doesn’t work if the debt that you are overwhelmed with is one of the non-forgivable types. It also isn’t something that will be easy or quick. The process can be extremely tedious and time consuming, not to mention emotionally charged. I never recommend looking into bankruptcy unless you’ve already looked into all of your other options. Other options to exhaust first: 

• Make sure you know what you’re dealing with first. So often we are scared to know our own money truths and therefore don’t take the best actions to fix the problem. Not sure how to organize this? Check out the Know Your Numbers template on our website! 

• Call all of your creditors and ask for help. It doesn’t always work, but when it does it can be a game changer.

• Look into personal loans and balance transfer cards to try to lower your monthly interest payments and make your debt more manageable.

• Reach out to friends and family to ask for a low or no interest loan to help relieve you of the highest interest debt. This is absolutely not an option for everyone either because of the financial situation of their loved ones or because of inevitable emotional baggage that would come with a friends and family loan. 

• Make sure your overall spending is in line with your financial goals. I also encourage clients to use a Money Diary for at least a month to determine how you already spend money and then decide whether or not that spending is right for you. We have our own fancy Money Diary here, but you can also use pen and paper or make your own spreadsheet. 

• Coaching/counseling to get expert help on how to eliminate debt. Curious about working with us? Reply to this email, schedule a free consult call or DM us on instagram.

If you’ve exhausted your other options, bankruptcy may be the right choice, but I can’t stress enough that it shouldn’t be taken lightly. Next week we’ll go into short and long-term repercussions of filing bankruptcy, which may help you make a decision.

I know this is a heavy topic (thanks for reading to the end!), but these are heavy financial times and we, collectively, must gain literacy around the difficult financial work that needs to be done.

XOXO

P.S. This topic is in the newsletter because an amazing reader (like you!) replied to a past newsletter and requested it. In fact, most newsletter topics are actually from reader requests. If you ever have a financial topic you’d like to learn more about, please don’t hesitate to reach out!

Hi from Maternity Leave! Every other newsletter that has gone out since the end of September I prepped ahead of time, but I knew that the one that went out this week couldn’t be planned. 

This morning I woke up with baby Vidalia (V-Eye-Day-Lee-Uh) at 4:30am. I fed her and put her back to bed. Hiccups and a fart that I couldn’t believe came from an infant woke her up about an hour later, but by that time, I was wide awake. I had read what felt like the entire New York Times and was on to scouring other news sites. None of it was helpful information (or at least not new information) and none of it was helping my mental health.
Thank goodness for hiccups and farts! 

While part of me wanted to continue down my sad news spiral, I didn’t get the chance. Instead I was up with Vi -- chatting, changing diapers (you would not believe the number of diapers this child goes through, or perhaps you would - maybe I was the only one under false pretenses there), doing tummy time, feeding her again, and finally getting her back to sleep. 

Now it’s 9:00am and even though a big part of me wants to go back to my scrolling I’m going to resist. Baby Vi gave me the opportunity to get out of that spiral and, at least for now, I’m going to take advantage of the break and try to stay out. 

I know a lot of you are probably walking into similar spirals and I hope that this newsletter acts as your own personal hiccup-fart. No amount of scrolling, wishing, or pulling your hair out is going to make any of the sitting and waiting for information go any faster. 

And, as my amazing partner in coaching, Marguerite, says: your mood won’t impact the election. 

Instead, I encourage you to find something to do that will help get your mind off things. Here are a few ideas: 

• Read a book that you loved as a kid -- preferably one with some good juicy chapters or a fantasy that can completely take you out of your head. I recently re-read this series and loved it. 

• Doodle. I particularly like closing my eyes and making a random squiggle and then trying to turn that into a picture of something. 

• Have a money date with yourself! Go through your recent transactions and ask yourself if they are aligned with your values and goals. 

• List out all the ways that you can impact change and create positivity in your life/community. Often we get so caught up in national politics that we forget that most of our day-to-day lives are impacted by decisions made much closer to home. 

• Move your body! Find an old mix CD (am I dating myself?) from high school, turn it up really loud and dance out all of that anxiety. 

• Spend some time journaling on your short-term and long-term money goals. What do you want to achieve? Why do you want to achieve it? 

And, if all else fails, let yourself doom spiral. Who knows, I bet for some of you that is what feels best today. 

As always, I’m here for you and your money journey. I’m still on maternity leave, but please don’t hesitate to schedule a time to chat with Marguerite here, or reply to this email to ask me questions or share comments. I’m not being very speedy at return emails, but I promise I’ll get back to you as soon as I can.

Now off to change another diaper :) 

XOXO

I have a complicated relationship with debt. Growing up, my mom had a lot of credit card debt. It felt like the reason we could never do anything as well as the reason we could ever do anything. I was terrified of debt, and yet when I found myself in my early twenties, underemployed but pursuing my dream, it felt like the only option. And, truthfully, maybe it was.​

I was able to pay down my debt when I landed a really good job, and I stayed debt free for a while. But after a few years, I fell back into debt. And it paralyzed me. It drained my self-worth to feel beholden to these companies and pay more in interest than the things I bought were actually worth. I didn’t want to look at the amount of money I owed and I didn’t want to look at my relationship with money. This avoidance kept me from paying down the debt, and perhaps more significantly it kept me from pursuing educational opportunities that I dearly wanted to accept.

A few years ago, I reached my breaking point. I had pretty good credit from making timely payments (don’t get me started on the credit rating system, that’s for another post) and I was eligible for a decent balance transfer offer. “Great!” I thought. “I’ll just scoot this money over here real quick and pay it off in 18 months. No prob.” Y’all, that balance was about $3k at that point. And that was not the only balance. Not only did I not do the math to figure out what the monthly payment would be to pay it down in time, I also made new purchases on the card. It was a 0% interest rate! It was basically free money! And I would be getting paid “soon”…

A few months after that, I realized what I had done. My debt was bigger. The solution? Get another balance transfer card! But this time, I wouldn’t use it. I would just pay it down. I had also recently come to realize that the interest that I was paying was going to institutions that invested in fossil fuels. So this new card had to be at an institution that didn’t do that.

OK: ethical credit card company? Check. Not using that card? Check. But I was still earning less than I was spending, which meant that eventually I had to use the cards again. And I did.

It took a few more steps forward and a few more steps back before I put together the pieces of the puzzle that equaled living within my means - the real key to getting out of debt. I had to get a second job (even more challenging these days than it was for me then) and cut back on a lot of spending. The process was hard, non-linear, and involved self-reflection, sticking my cards in a bag of water in the freezer, and finding a really good rate on a personal loan from a credit union (which I’ll still be paying for another 10 months or so).

​I’m now at a point where I feel ready to take on debt for the right reasons. I’ll need to buy a new (to me) car soon, and I’ve done the work to set aside some money for a good down payment so I can keep my monthly payments low when the time comes to buy. I still feel nervous about it, but I can calm my nerves by reminding myself that I’ve built strong financial skills, and also that a newer car is in line with my values of being kinder to the earth. And in this case, the debt also leads to an asset, which is a building block of wealth.

There’s so much more to say about debt and my debt relationship. For now, just know that there are resources available to move you from where you are to where you want to be.

​Do you have specific questions about debt? Hit reply to this email. No judgment, no shame, no embarrassment. I've been in your shoes before and I can help you address your questions around debt.

You got this,

- Marguerite

This is my last week of client facing work before my maternity leave starts. I cannot believe it is already here! I feel like just last week I was complaining about early pregnancy morning sickness and fatigue and now I’m about the size of a mutant watermelon and am a pro-waddler. While I’m on maternity leave the newsletter will be filled with some past goodies (updated with new information and context!), some new musings by me, and some new musings by Marguerite. Many of you respond to the newsletters with questions and comments and I love those! However, please note that I will be slower to respond to those over the coming three months. 

As is my custom, I wanted to share a little bit more with you about how I’m making this leave work monetarily. Because I work for my own company and I am the first employee to take maternity leave I didn’t have a clear plan mapped out way in advance. However, I knew before I got pregnant that I wanted to take at least 12 weeks of leave and that I wanted to maintain my usual income. What that meant was saving, saving, saving! Over the course of about 15 months I saved up enough to cover the ongoing company expenses, some new expenses related to my leave (I need other people to take things over when I’m not here!), and part of my salary.

The rest of my salary is coming from a combination of state benefits paid for by the State Disability Insurance taxes I pay every time I run payroll. Disability Insurance will cover a portion of my salary for about 4 weeks and the Paid Family Leave will cover another portion for about 6 weeks. I say “about” mostly because the benefits haven’t actually kicked in yet and I’m not entirely sure what to expect (i.e. How long will it take? Will it actually last the amount of time I expect? Will there be any hiccups?). If for some reason these state benefits don’t turn out the way I expect I have backup savings at the company that I can dip into as well. Although, I’d love to not do that and instead use those for other investments in the new year! 

Do you have other questions about my maternity leave? About maternity leave in general? About anything else? Let me know! 

XOXO

We’re all about knowledge, transparency, and empowerment here at Verdi and what that really means is that we all need to know some specific things about our financial realities so that we can create healthy money mindsets and financial systems for ourselves.

A few weeks ago we talked about some key metrics that the government uses to track the health of our economy (GDP, unemployment), but we also need personal metrics to track the health of our personal economies (i.e. money realities). Aaaand, because we love you we have a FREE template that you can download and use to track these numbers!

Let’s dive into the metrics: 

• Account Balances: this includes all of your liquid (easily accessible) and illiquid (would need to sell securities) accounts such as your checking, savings, IRAs and CDs. 

• Assets: this includes all of your tangible assets such as a home, car, artwork or equipment.

• Loans: this includes all of your debt such as credit cards, personal loans, mortgages and student loans. 

• Net Worth: This number is simply all of your accounts and assets minus all of your debt. If you have more debt that accounts and assets then it will be negative. If you don’t, it will be positive. It isn’t necessarily a bad thing to have a negative net worth, but knowing where you stand will help you see your situation more clearly and therefore help you determine your goals. 

• Salary: This is exactly what it sounds like! 

• Other Income: This is any other income you may get from side hustles, personal sales, or investments.

• Credit Score: This is a numerical score that shows how well you’ve repaid loans in the past. 

None of these numbers is particularly important on its own, but when you track them all together you’ll be able to see your financial health grow and change over time. And if you don’t know where you are now, how will you know how proud to be in the future for all of your hard work?! 

XOXO

Last week we talked about why it is so important to talk about money with children. We narrowed in on ways that you can start having these conversations (and bonus - they work with adults too!). This week, we’re going to focus on how to determine your end goal for the conversations. Knowing that end goal will help you decide which of those action steps from last week really work best for you. 

There are a ton of good reasons to talk to children about money: 

• Increased financial knowledge

• Decreased underlying worry or fear around money

• Financial empowerment

• Increased curiosity about money and the economy

• Overall degradation of the money taboo 

The question is: why is it important for you to talk to your kids or loved ones about money? If it is really about financial knowledge, then it is important that your conversations are about imparting wisdom (not sure you have that to impart? Check out the Verdi Money Club!). If, instead it is about decreasing worry and increasing curiosity, then it is important that your conversations are about encouraging questions and discussing money emotions (not sure you’re ready for that? Check out this series on money emotions: part 1, part 2, and part 3).

Once you know your “why” it is a heck of a lot easier to move forward with the actual action steps. Your why is your guide -- it encourages you to get out of your comfort zone and reminds you of the good that you are doing. That’s not to say that it’ll be easy. Most of us have been taught that talking about money is inappropriate and those social norms are often deeply ingrained into our beings. Practice will make it easier though! The more you recognize those uncomfortable feelings and then respond to them by acting in opposition to them, the less uncomfortable you’ll feel. 

Next week we’ll switch gears and talk about which numbers are important for everyone to know about their financial reality. 

XOXO

For those of you who aren’t aware, I’m pregnant. Like, really pregnant. I’m rounding up on month 9 and will be going on maternity leave sometime next month. A lot changes during pregnancy and, while very few of those topics are on brand for a money centric newsletter, one thing that I’ve been spending a lot of time thinking about recently absolutely is: how to talk about money with children. 

For those of you without children, I urge you to keep reading because talking with kids about money isn’t too different from talking to other adults (or yourself!) about money. 

As regular readers know, I’m obsessed with financial transparency (check out this, this, this and this). However, I grew up in a household where money conversations did not happen and if the topic came up naturally in conversation it was quickly squashed by my parents. I now understand that that familial trend contributed to a really unhealthy money mindset that I had until my late 20s. I know that it contributed to a serious lack of knowledge that led me to make some pretty poor choices. I also understand why my parents didn’t talk about money in front of me and my sister - they had no roadmap for how to do so and had culturally been taught that it was wrong. 

I’m determined that my daughter will experience money conversations in a completely different way than I did, but I don’t yet have a clear roadmap of how to do that either. Unlike in the 80s, there are now a lot of resources out there that tell you how to handle these conversations (just google “how to talk about money with kids” - you’ll get 2 million+ hits), but much of the advice is incredibly vague -- i.e. be age appropriate, impart the value of hard work, use teachable moments. None of those ideas are bad, but they also aren’t terribly helpful because 1) most adults don’t feel confident enough in their own financial literacy to follow through, and 2) the decision on how to talk about money with children is really about what you want children to walk away with as young decision makers and vague, blanket advice doesn’t take that into account.

Tackling both of those issues in one newsletter is a bit much, so today I just want to focus on #1. While it is impossible to directly impart specific knowledge to children that you yourself don’t have, there are still wonderful ways to make sure that children grow up financially literate and that you are part of that conversation. 

Here’s a starter kit of ideas: 

• Allow conversations about money to happen in front of children. Even things as simple as, “did you pay that bill yet?” or “how much were groceries this week?” are great. This teaches kids that money conversations are normal. 

• Talk about how you weren’t taught about money and why you want that to be different for your children. This could be a serious sit-down conversation or just something you share in passing when it comes up. For example, if you choose to give allowance and you discuss how that money is being used you could say, “did you know that I got allowance when I was a kid, but your grandparents never discussed it with me? I’m really glad we get to talk about it so you can ask questions and decide how you want to use the money”. 

• Learn and ask questions together. It is okay to not know everything! Heck, I don’t know everything. That’s why I’m constantly researching and learning about new financial topics. If a question comes up that you don’t know the answer to, use that as an opportunity to learn together. Do some online research, find a book on that topic, or call us! 

• Most importantly, when the topic naturally comes up don’t squash it. Kids need to know that money is an integral part of our world and therefore it is okay to talk to talk about 

You can use this same list with friends and loved ones. If the ultimate goal is that more of us are financially literate and comfortable being able to discuss money matters, then it doesn’t really matter if you’re talking about having these conversations with toddlers, teenagers, or adults. 

Next week we’ll tackle #2: determining the end goal for money conversations with children.

I’d love to hear from you! What money questions or topics would you like to see addressed in the blog? What questions do you have about today’s topic? Just hit reply to send me your thoughts!

XOXO

Last week we talked about the recent not-so-good news on the U.S. economy and dove deep into why GDP is used as a metric and how it can be misleading. 

This week I’m going to share more about another metric that is getting a lot of attention these days: the unemployment rate. On Friday of last week unemployment data for the month of July was released and, although 1.8 million jobs were added during the month, the unemployment rate is still above 10%. 

But what does “unemployment” actually mean? 

Colloquially unemployment just means exactly that - someone without a job, but the Bureau of Labor Statistics calculates it a little differently. The U-3 unemployment rate (which is the most common statistical measurement of unemployment) includes folks who are: 

• Available to work

• Actively seeking work 

• Are furloughed 

It does not include folks who are: 

• Employed in part-time jobs, but who want to work more

• Underemployed

• Work 15+ hours a week of unpaid “family work” 

• No longer seeking work because they haven’t been able to find work for a long time (these people are considered “out of the labor market”)

It also, unfortunately relies on answers from folks who may end up misclassifying themselves. For example, a freelancer unable to find work during the COVID-19 pandemic might not say they are “unemployed” and therefore wouldn’t be counted in the rate. However, they likely should be as they are not bringing in income. 

There is a better indicator: the U-6 unemployment rate includes folks who are working part-time, but want to work full-time and folks who are “marginally attached to the labor force”. Being marginally attached includes people who have given up searching for a job.

So, while July’s U-3 unemployment rate was 10.2%, the U-6 rate was 16.5%. Not to be a negative Nancy, but I’m going to go ahead and say that the U-6 rate is much more accurate and is the metric we should actually be using when we’re talking about employment in the U.S. I mean, how are we supposed to successfully tackle the problem if we’re not even talking about the numbers accurately? 

I talk about being financially transparent with yourself all the time and, while I am usually talking about personal or small business finances, I think that same advice goes for the government as well. One of my favorite templates I use with clients (that you can get for free here!) is the Know Your Numbers spreadsheet. The purpose of the template is for you to be able to see all of your key metrics in one place:

• How much liquid (i.e. easily accessible) cash you have in checking and savings

• How much illiquid (i.e. would have to sell to access) savings you have

• How much debt you owe

• How much your assets are worth

• What your income is

• What your credit score is

All of this information is valuable because it can help you see where you financially stand now and recognize areas that you’d like to change. 

For example, when I look at my Know Your Numbers spreadsheet I feel proud of my lack of credit card debt and increasing savings, but know that I haven’t reached all of my savings or investing goals yet. Seeing that clearly helps me know what my next steps should be. On the other hand, if I have to open seven different tabs in order to get this information I’m likely going to be pretty confused and will not have an accurate read on my real numbers. I might end up thinking because I don’t have credit card debt that I don’t need to do anything else to improve my financial outlook. Or I might end up focusing in on just one account and miss the forest for the trees. Looking at the U-3 unemployment rate is very similar. It may look better than the U-6 rate, but it doesn’t tell the full story and therefore likely doesn’t point us in the right direction for how to make improvements. 

XOXO

On Thursday of last week the U.S. government released economic statistics from the second quarter of 2020 (April - June) and to put it mildly, they were terrible. The indicator they used, GDP, is often talked about, but rarely explained, so today’s post is all about what that indicator means, why it is used, what looking at it tells us about the recent state of the economy, and what it might show about the future. 

To start - just about every headline I saw about the economy on Thursday said something like “the worst ever” or “record low”. To be clear - GDP was not used as a metric until the mid-40s so we aren’t comparing our current economy to the Great Depression, just everything over the past 80 or so years. 

So, what is GDP anyway? GDP stands for Gross Domestic Product and is a measure of the total market value of all goods and services produced within a country’s borders. Note: GNP, or Gross National Product, is the same, but includes foreign investments. 

I think sometimes looking at the mathematical formula for GDP makes it a little clearer: 

GDP = C + G + I + NX

C = consumption (everything we bought)

G = government (all government spending)

I = investments (all stock market and other investments)

NX = net exports (value of all of our exports minus the values of all of our imports)

Basically, the more all of us spend, whether it is at a grocery store or an investment in venture capital, the better off GDP looks. The thinking behind using this as an economic indicator is that if folks are comfortable spending and are spending more than they used to then that means they have enough income and are feeling confident in the economy. While I think GDP is helpful, I don’t love this as a standalone indicator because it doesn’t take into account the overall picture of economic health -- it just shows overall spending. For example, over the past decade GDP has been growing and yet the wealth gap was also growing -- looking just at GDP makes things look good, but we know that the reality in many households is completely at odds with that. 

There are a lot of scary things about Thursday’s statistics from the Bureau of Economic Analysis, but the one that I find most worrisome is that the country experienced its worst quarter on record while at the same time the government (remember G! Government spending is one of the parts that make up GDP!) was pumping $2.2 trillion dollars into the US economy through the Cares Act. Now that most of that funding has either been used up or discontinued (think PPP and the additional $600/week in unemployment benefits) it seems like the third quarter (July - September) will look even worse, especially if the coronavirus continues to spread at the rate that it has been. 

But, because I am solidly a “glass half full” person, I can’t leave us on that depressing note. Instead, I’d like to end on a reminder: GDP is not an accurate metric for the economy as a whole. There have been institutionalized issues with our economic system for decades (think wealth inequality, unlivable minimum wage). GDP’s downfall makes all of that even more obvious (I know, I know, that’s even more depressing - hold on). 

As the economy slumps this is a perfect time to be able to rebuild in a way that is inclusive, focused on true equal opportunity and in harmony with long-term goals of environmental and economic protection for all. You may not be the one to decide to pump $2.2 trillion dollars into the economy, but you do make an impact towards this larger vision. You decide how to vote politically and you decide how to vote with your wallet -- you decide where to spend money, where to avoid, who to donate to and where to offer your resources and services. Things aren’t looking great, but I believe that we can use that outlook to make 2021 better. 

Next week I’ll be diving into a few other metrics that may be better (or worse!) ways of measuring our economic health. 

XOXO

Last week I shared a post on why acting on your economic privilege matters. Today we are going to dive into the how. How should you act on your privilege? What action steps can you take? 

Before we start I want to make clear that every single one of us is going to have a different answer to these questions -- and that’s a good thing! We are all different, have different life circumstances and different values and therefore have different goals. The important thing here is that if we all act, we will be able to make real change in the world around us. 

Step 1:

The first step to creating your individualized action plan is to determine what kind of actions work best for you. Answer the questions below to start narrowing in on a path: 

• Do you have a platform that can be used to share information and action opportunities with others? 

• Do you have wiggle room in your budget (or can you make some that is aligned with your values) to be able to give money to organizations and/or people? 

• Do you have time that you can donate to organizations or causes? 

• Do you have connections to resources that could help others?

• Do you have specific skills that can help others? 

Step 2:

Once you know what type of actions work for you, then you need to determine what values are most important to you. This can be done with a simple brainstorm. Try to narrow down to 1-5 core values that are most important to you. Here’s a list of potential answers just to help you get going:

Climate change, affordable childcare, racial reparations, affordable housing, voting, health and wellness, access to education…

Step 3: 

After you’ve narrowed down to a list of specific values and a list of specific types of actions you want to take, all you need to do is combine them! Note: that is often way easier said than done. I recommend taking at least 30 minutes to map out the specifics (i.e. I will donate to X organization, I will share Y resources with Z group of people). 

Step 4: 

This can be the toughest one: follow through. Schedule time on your calendar so that you actually take the time to do the work you need to do. Set reminders on your phone so that you don’t forget. 

Recognizing, understanding, and acting on your economic privilege is not something that you can do once and be finished with. In order to create more economic justice in the world around us, this will need to be a continuous process. I’ve shared a framework to help get you started, but please note that this is just one of many paths you can take. For some of you it may not feel like enough right now and that’s great - go further! For others of you it may feel like a bit too much and that just means you need to take more time to reflect and work through those feelings. That’s okay!  

As always, I’m here for you and your money journey, wherever you may be on that road. 

XOXO

Last week I shared some tools for how to better understand your economic privilege and a few ways to act upon that privilege. At the end of the post I wrote that this week we’d be discussing how to determine what actions make the most sense for you and how to get started on those actions. However, as the week progressed and I worked on that draft it became clear to me that there was a missing link: why you should act on your economic privilege. So, I’m rearranging the posting schedule and moving forward with the why this week.  

The United States has an economic disparity problem. Income inequality is higher than in any other G7 country (Canada, Germany, France, Japan, Italy, UK). The wealth gap between the richest and poorest families has more than doubled since 1989 (read that again please), and, compounding this, the redistribution of wealth through taxes and federal spending does very little to shift the income distribution throughout the population.

This isn’t a political issue - it is a humanitarian one. We can have a range of beliefs on the government’s role and correct economic structure for this country and can still agree that the widening wealth gap is problematic. It is problematic because:

• It causes health disparities that in turn cause inequalities in access and outcomes (i.e. more disease and more death for those lower on the socioeconomic ladder - just check out the stats on COVID-19 if you’re skeptical).

• The current system doesn’t allow for free-will and ownership as it is almost impossible for folks to move up the socioeconomic ladder. This trend goes in direct opposition to one of the core values in the founding and creation of the US: individualism.  

• The wealth gap is intertwined with environmental disparities that cause physical and mental health issues and contribute to global environmental issues as a whole.

• The wealth gap stifles creativity and ingenuity, thus hurting our economy and well-being as a whole. Just think of all the businesses, medical breakthroughs, and inventions that are not being made because folks are unable to get access to capital, time, or other resources to make them reality. 

While there are larger, structural forces that could impact the trends in our economic disparity, I believe that it is too big of a problem to wait for those to be put into place (if they ever will be). Instead, we, as individuals, have the power to use the areas of privilege that we have to improve the lives of those around us, and, I hope, that if you are reading this newsletter you agree with me. 

Next week we’ll revisit specific action steps you can take and the process for how to decide which make the most sense for you, your values and your lifestyle and money goals. 

As always, I’m here for you and your money journey, wherever you may be on that road. 

XOXO

Last week I shared the first of several posts in a series on economic privilege. I talked about how many people are beginning to touch on their own privilege during the current social justice movement, but that recognizing it alone does not do enough. 

This week, I want to dive deeper into how to unpack and recognize your economic privilege and how to begin to transition this understanding into actions that are aligned with your values. Be forewarned: this is not something that you can just do in a day and be done with. As a lover of checklists I am always tempted to action-item away my own personal emotional and developmental work, and I suspect a few of you have similar tendencies. So, for those of us who like to cross things off lists, know that working on your own understanding of privilege and how you want to move through and impact the world around you will be an ongoing checklist item. Think about it more like “drink water” as opposed to “file taxes”. 

In the last post I shared a list of common instances in which folks experience economic privilege. Today, I want to walk you through a couple journaling exercises that I have put together to help folks dive deeper into their own understanding. This is HARD WORK, so I recommend starting with whichever prompt speaks to you first. Don’t worry about going in order and don’t worry about fully answering the question in one sitting. Instead, try out a prompt for about 10 minutes (or as long as you’d like!) and then give yourself some time to let it ruminate in your head. Come back to that same prompt in a few days and see if you have anything to add or if any new ideas have come to mind. Do the same with each question that feels relevant to you. 

Journal Prompts to Help Uncover Your Economic Privilege

1. What are some examples of times when you were given opportunities that other people may not have been offered? Did you recognize that as privilege at the time? In what ways have those opportunities helped you throughout your life? Note: one helpful way to answer this may be by creating an impact timeline (i.e. because of that unpaid internship I met the person who connected me with my first boss. That first job helped me learn x, y, and z which then made it possible for me to…).

2. Imagine that as a young adult (18 years old) you had the responsibility of economically caring for other members of your family. What school and career decisions would you have made? How would that have changed your life trajectory? 

3. Most people take their economic privilege for granted. When are some times that you have taken it for granted in your life? What if instead you recognized your privilege at that time? How would that have changed your attitude or actions? 

4. How would your life trajectory have changed if you had/have large student loans? Would you have made the same career choices that you have made? How would that impact your day-to-day life experiences?

Once you are primed and have begun to really understand your place in the spectrum of economic privilege, you may be asking yourself: “but what do I do with this information?”. The answer is, unfortunately, that it depends. It depends on your values and how you want to interact with those around you. I hope that for all of you it means that you’ll decide to use your privilege in a way that helps others, but the way you help will likely differ greatly. Below are a few ideas to get you started. 

• Use some of your cash privilege to donate to organizations that are aligned with your values (check out this post, this post, or this post on voting with your wallet)

• Use some of your material privilege to donate items to organizations that can help others

• Use some of your economic privilege to sponsor events 

• Use some of your economic privilege to donate your professional time to others (i.e. Verdi Advising has an ongoing pro bono client program and is now expanding to include regular pro bono workshops for nonprofit organizations and their communities)

• Use some of your connection privilege to help those who are less privileged than you (individuals or organizations) get connected with potential employers, mentors and donors. 

• Use some of your time privilege to volunteer with organizations that are aligned with your values. Not sure about venturing out in public during the pandemic? Totally fair! Lots of organizations have opportunities to help remotely. 

• Use some of your privilege to reach out to your political representatives (don’t forget your local ones -- they often are the most important!) to encourage them to vote in a way that is aligned with your values. 

  • Not sure who to call or what to say? Check out 5calls.org as a great first resource. 

Next week we’ll discuss how to determine what makes the most sense for you and how to get started on your actions. 

XOXO