881: Don’t Panic! Here’s How to Take Control of Your Finances in an Uncertain Economy

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2:01The financial services industry is built on fees. And so they want you to feel confused because it means that you will pay people to do it for you. And if you're lower income, they want you to stay confused because debt is a hugely profitable business. I'm Jenna Kutcher, your host of the Gold Digger podcast. I escaped the corporate world at the age of 23 with nothing more than a$300 camera from Craigslist and a dream. Now I'm running a seven figure online business that feels even better than it looks all from my house in small town, Minnesota with my family. Here we value time as our currency.

2:44We mix the woo and the work, and we are in the pursuit of building businesses that give us the freedom to live lives that we love. I've always loved turning big goals into reality, and I'm here to help you do the same. This isn't just a peek behind the curtain. Come along with me and my guests as we tear the whole curtain down. Every week we tackle practical, no fluff marketing strategies and host honest discussions on what works and what doesn't. Join me and my expert guests for actionable insights to help you grow your dream business with confidence. Pull up a seat and get ready to be challenged, inspired, and empowered.

3:20This is the Gold Digger Podcast. What do Wall Street, TikTok, and pop culture all have in common? Well, one woman, Mrs. Dow Jones, and she's here to prove that managing your money can be as addictive as your favorite reality show, but way more empowering. Today's guest is Haley Sachs, aka Mrs. Dow Jones, and she's a self-made financial powerhouse who turned confusion into clarity and turned budgeting into a cultural movement. When she realized financial education felt like it was made by and for the Wall Street bros, she set out to change that and she succeeded. With over 1.4 million followers across platforms, partnerships with brands like Morgan Stanley and American Express, and viral courses like start here and let's invest, Haley has become the go-to guide for millennials and Gen Z looking to step into their financial power.

4:14Now she's back with her latest creation, the Moneybook 2.0, which is a revolutionary spreadsheet-based financial system that has already changed over 10 ,000 lives and counting. It's intuitive, it's secure, it's fun, and it actually works. No clunky apps, no confusing spreadsheets, just results, and she's breaking all of that down today. If you've been feeling anxious about the economy or unsure of how to take your financial life in your control, this episode is for you. We're digging into how to budget with confidence, how to not be afraid when you're looking at your money, and how to stop feeling behind, making your money work for you.

4:53No matter what the headlines say, you've got this, and Haley Sachs is here on the Gold Digger Podcast to lead you through it. Let's dive in. Haley, why do you think so many smart and capable women still feel intimidated when it comes to money? You know, the biggest reason that I think women are intimidated by money is just because we are never taught, you know, like the key to any confidence is having any sort of education and women especially were taught to scrimp and save, were told to coupon, were told that we love to buy lattes and that we can't hold on to a dollar. And men, on the other hand, are taught to invest.

5:39They're taught to ask for raises. They're taught that they are the breadwinners and that it is their responsibility and also that they are very capable of earning a living and growing like a fortune. And so I think that's the biggest reason is just lack of education and just sort of that society has somehow gendered money, which is so unfair because money is power. So it sort of goes to the root of women having less power by them gendering it. Yes. Oh my gosh, I couldn't agree more. and I think it's really interesting. I think we're sitting in really interesting times. I'll speak from my own experience, but I can feel the uncertainty everywhere.

6:27I think people are just feeling, it just feels weird. It just feels weird. And so I feel like in times of weird, people go back to some of the basics and some of the principles and they also kind of get a little nervous. And so when we are facing a time where things do feel uncertain, maybe there's a recession coming, who knows, layoffs, just not knowing like where we are headed in the near future. What are some ways that we can start taking back control? Absolutely. I think, you know, I always talk about how your first financial step is just building a buffer, building up your emergency fund, which is just cash that you have on hand.

7:07You keep it in a high yield savings account. It's easily accessible to you. And it's there for no other purpose except for peace of mind. That is your, I need to leave a bad relationship fund. It's I need to leave a toxic job fund, but it's also an I got laid off fund or I need an emergency dental procedure fund or, you know, it's that, you know, the, it's Newman's law, everything that can go wrong will go wrong. And that could mean the economy, it could mean a recession, but it could also just mean, you know, layoffs or pay cuts or reduced hours. And so most Americans, 56 % of Americans cannot cover an$1 ,000 emergency.

7:55And so what happens is that when you get into, and most of them view their credit cards as their emergency fund. And the issue with that is that credit card debt is so expensive. And so if you put the cash on hand, if you build that buffer beforehand, then when you need it, it's going to not only be less expensive to use it, but it will also take out so much of the emotional shock and stress when you're in those situations. It's like the most amazing gift that you can give yourself is really that emergency fund. Yes. Oh my gosh. I couldn't agree more in terms of like the cost of our peace too.

8:36I think that when you have that accessibility, you aren't so afraid of everything. What would you say though, for people that are struggling to just make ends meet? Like how do you even get to a place of having an emergency fund? Cause I can hear the questions coming in my brain. Totally. When you're in that position of being paycheck to paycheck, it's you roll your eyes a little bit when someone says, Oh yeah, just build a buffer. That's what you should do. And you're like, okay, well, where's that money come from? Like everything that I make is going to bills and to food and to, you know, just getting through this month.

9:15So I totally understand that. But I think that any way that you, the first step is really to drop an anchor and to like, look at your finances. I think like even when you're in tough times economically, or you are struggling to make ends meet, a lot of the times there's this stress around your finances and it prevents you from like looking at them straight on, you avoid them because it's, you know, it's something that it feels uncomfortable. And because of that, that can mean that maybe there are subscriptions that you forgot that you're paying for. Or, you know, if you look, if you actually drop an anchor and you're able to look through your bills, your credit card statements, and figure out where you're at and where your spending is, then you may be able to find some wiggle room.

10:04And then I would also say like, and I think this is especially true for women is like, we're always taught that if we need to improve our financial situation, that we should cut, cut costs, cut, cut, cut, cut, save, save, coupon, coupon, coupon, whatever it is. And I am a big believer in earning more, which again, might make people roll their eyes, but Hey, guess what? It is actually a lot easier to, to, I find, to make more money, to side hustle, to try and sell something online, to do these, you know, little tasks that could mean$50 extra in your pocket,$100 extra in your pocket, then, you know, all of the energy that you put into cutting back, you know, like, and you are abundant.

10:53There's so much money out there in the universe. And if you have skill set, which I know, you know, you have such an amazing audience and each of the women who are listening, they tap into what they're good at. There's got to be something that they could monetize and get paid for, you know, finding ways to build that up and to bring in a little bit of extra cash will really help you build that emergency fund, help you build that offer. And so like, don't just take at face value what you're making as that being your salary, you know, try to think a little bit outside the box. And I know it sounds stressful and it's, you know, annoying.

11:33And if you're already working so much, then the last thing you want to do is work more, which I also understand. I think that a side hustle is unrealistic in that case. But like if you do have any bandwidth, I think that trying to find ways to increase your income is always a good idea. Yeah, absolutely. One thing I love about you is you make finance cool. Like you make it feel fun and approachable, not like that scary kid in the corner that you don't want to meet. And so what has been your secret to helping people not only understand money, but like actually learn to care about it? Well, first of all, I think that I come from it.

12:15Like, I think a lot of people or a lot of financial experts are people who like were born really just naturally good at this. Like it's like those 10 year olds who are hustling at their lemonade stands and like Warren Buffett bought his first stock at 11 years old. And I was so not that like I was scared of money. I doubted my own ability to make it. I ignored it. I did not have high paying jobs at all. Like in my, you know, when I was starting my career, I was firmly in like$40 ,000 range, you know, in New York City, which is psycho. And I, and most of all, like I just, my energy towards money was very blocked.

13:00Like I was really, um, uninspired and I, I didn't feel at all like it was possible for me to really be good with it. And then I've had this amazing transformation and it's obviously completely changed my life, completely changed my career trajectory. Now my whole life purpose is about bringing that to other people too, helping them to feel empowered, taking the fear out of finance, making it fun and easy to understand it and accessible. But I think that coming at it from that perspective is sort of part of what works about Mrs. Dow Jones too, because I'm never going to be the person who shames you for spending or who can't understand where you're coming from if you feel really blocked because I was there too.

13:46But then also, I also use celebrities and pop culture and humor. And I think that adds to the mix as well. What was your big transformation? Let us into what that is, because there are so many people listening who have stuck money beliefs or who have been raised to think certain things about money. And money is like almost like a naughty word for them. So tell us about that transformation. Yeah. I mean, besides like sex and death, I think people hate talking about money. That's the third one. So I totally get that. So when I was in my early 20s, I really wanted to be in entertainment. So I started my career working for David Letterman.

14:26And then I worked for Lorne Michaels, who started SNL. And that was a really exciting job for me that I was really serious about. And I thought, I'm going to get the keys to Hollywood. And this is going to make me. And I completely went all in. And it was my first full-time salary job and I had no financial literacy. And so the first day, and I just wanted to sound smart and them to be impressed by me. And so then the first day they're asking me about 401 keys and health insurance and all this stuff. And I was like, absolutely. Like, love, that's a road race, right? Like I had no idea. And so then I went home and I, cause I didn't want to show up the next day, not, you know, having the answers to those things.

15:12And so for the first time I tried to research and I was, you know, sort of taken aback by what was available to me to learn about it. Like it was just so stiff and unaspirational. Like there was no one who felt like my friend who I wanted to, you know, learn from. Like I feel like something that's made you so successful. And I was telling you before we started that like I am first and foremost a Jenna head. Like I love you so much. But it's like because we all feel like you're our friend. And you're our big sister. You're this person that we trust. And so I couldn't really find that in the finance space.

15:47And so I was like, okay, you know what? I'm going to try and become that. And so I went through this process of teaching myself sort of in the way that I wanted to be taught. And I thought no one really likes learning about money, but everyone loves pop culture. Everyone loves memes. Everyone loves humor. So what if I put the spinach in the brownie for myself? First, I'm always patient zero. Always say I influence myself financially first and foremost. like that goes across the board. Like anything that I'm telling you guys to use or do, like I've done it. Like it's, I drink my own Kool-Aid. So that is definitely, yeah.

16:22So that was the aha moment. And then I ended, so I sort of started then. And then six months later, I got laid off from that job. And so I had sort of this pivotal moment of do I, and Mrs. Dow Jones was an account at that time. And it had a, you know, I'd started it sort of just teaching myself and it was going well but I had that moment of okay so what's next for me in this entertainment career do I now go grovel for a job at like Comedy Central which would have been a similar place as working for like SNL and Lorne Michaels and it would have been probably fifty thousand dollars a year and you know you're giving them everything or do I try and do this so I you know was freelancing and I tried to do it on my own and then yeah it started to take off but the aha moment was really just realizing that it wasn't that hard.

17:08Like that was it was I was like, Oh, I've been really catfished by this. Like I've sort of been playing myself. And that's, that's like the vibe that I try and teach people to is it's like, you know what, like it's they actually lied to you. It's not that you're not smart enough to do this. It's not that you're missing some sort of chip to understand this. It's actually that the financial services industry is built on fees. And so they want you to feel confused because it means that you will pay people to do it for you. And if you're lower income, they want you to stay confused because debt is a hugely profitable business.

17:48They want you to overdraft. They want you to have credit card debt. The financial illiteracy keeps this country going. So, you know, there's forces way bigger than us who are pushing, pushing, pushing that. And then when you actually like peek behind the curtain, you realize, hmm, not entirely sure this actually is so complicated. Seems actually pretty simple. And like anything else in life, you just have to be sort of consistent and patient with it and diligent. And then you'll see great results. I love that. This podcast is brought to you by Mercury, banking that helps entrepreneurs do more with their money.

18:33Okay. I remember in the early days of my entrepreneurship journey, clients would literally mail me checks and then I would have to drive all the way to the bank to deposit them. It took me literal years to make things go digital. And I am ashamed to admit, I still have a filing cabinet with paper contracts because I'm way too afraid to throw them away. But that's the beauty of growth, right? Like you learn what systems serve you and which ones hold you back. Mercury is one of those systems that just works. Where traditional banking websites and apps are clunky and hard to use, Mercury is meticulously designed to make doing just about anything with your money feel effortless.

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20:28Go to shopify.com slash gold digger. Shopify.com slash gold digger. I love one of the things that you're so passionate about. And I'm like, yes, girl is budgeting. Budgeting is so amazing. And it's so funny because I before I could graduate from college, at a double major with business and communication. And I had to take a personal finance class. And I think that a personal finance class should be a requirement in high school before you ever go out on your own. Because what we had to do is literally like make a spreadsheet of every expense we have and how much money we're bringing in and where it's all going.

21:09And it's so funny because I still have my initial budget. And it was when I entered into the corporate world, I think I was making 50 or 55 K a year and I had student loans and I was like figuring out everything. I mean, I had a budget for like going to the movie, right? Like this is my movie budget and it is so powerful. And I think a lot of times we get so far away from that, or we were never even introduced to budgeting in the first place. And it was hilarious because the other day we were on vacation with our kids and we went to this cute little market and my daughter goes, Ooh, oh, can we get a budget, mom?

21:44I love a budget. And a lot of times we'll take our kids out and we'll say, your budget is$5. And they'll hold something up and we'll be like, oh, I'm sorry, that's outside of your budget. And so they have to figure out how are they going to spend their money. And it was so interesting because my three-year-old ended up saving her$5. She didn't choose anything. And then my older daughter found something that was within her budget. And so it was funny where I'm like, oh, budgeting can absolutely one, be learned, but two, it can be exciting. It gives you parameters to have an understanding of what is within reach, what you might need to save up for and do that.

22:21So talk about budgeting because clearly I'm really excited about it. Oh, I love how you're teaching your kids. That's so fun. And I want to like know more about your daughter who was like, you know what, actually I'm going to keep this. She's three. I'm like, you know what this means? She's going to be running the world soon. She knows about the time value of money. She's ready to go. Well, budget is obviously a curse word. So we'll have to bleep that out from the whole episode. Because yes, it's like, think about the thing that you want to do the least. And then yeah, right after that budget.

22:56But when you think of, I'm really passionate about budgeting because I'm really passionate about spending. I love spending money. I love money. I love enjoying my life. And I love the like freedom that comes with being able to afford the things that I really value. And I think that through budgeting, you're able to really identify what actually moves the needle for you. Like, what are your categories? Like, what are your three to four things that like, absolutely bring you joy? Like when you buy them, you really are like, that was awesome. Like I, you know, like I I love to get my nails done. I'm horrible at doing that.

23:37And I took a year off from getting my nails done because I was like, I'm going to save money. And then I went back and I was like, you know what? This actually is something that I really want to add back in. But then there's other things that I don't do. I don't order in food. So it's like, you know, it's all about having that give and take. And so when I started budgeting, though, I was really confused and I wanted to find a way to budget that could clearly map out for me what I was working on the next month. Like budgets are so much in the past, but I wanted like a hybrid of a budget and a financial plan because it's like, what good is it to know what I already did?

24:25The money is gone and I've got to pay the bills, but like, how am I improving? And so I started to work on this spreadsheet that is based on the 50-30-20 budgeting rule, which is this rule that Elizabeth Warren created that splits your after-tax income into three buckets. So 50 % on needs, 30 % on wants, and 20 % on future you. And as a baseline, it's great. Like, obviously, if you live in really expensive cities, like I live in New York, you live Los Angeles or whatever, your 50 and your 30 might be a little bit different because oftentimes you have to spend more on housing. But obviously by living in those places, you're getting great opportunities professionally.

25:10So hopefully in the long run, it's paying off. But as a baseline, it's really helpful. And so the money book is based on that. So basically you put in all of your... It automatically uploads all of your transactions, which is amazing because it's a Google Sheet. So it's like, you don't have to actually give over any data, like a budgeting app, which can sometimes feel a little creepy. Like you're like, what's plaid? I don't want to like put the login for my, you know, chase account. Like that sounds scary. There's so many scams. So first and foremost, I love it because it's really safe. Like it's on Google Sheets.

25:46It's, I don't see, it's all your data, no one's seeing it. And so you upload your transactions, you, all you have to do, it automatically uploads them. All you have to do is categorize them like a need, a want, or a future you. And then it will show you exactly how you are spending compared to the 50-30-20 rule. So it could be like, Jenna, you're actually spending 60-30-10. And then it will help you identify what you can do to get closer the next month to the 50-30-20. And it also tells you what to do with your 20, which is like your future you money, or I like to call it your action money. So that's the money that you made, you didn't spend, and then you have like to take action with to improve your financial life, which I think is also really another confusing premise in finance.

26:40Like, what are my steps? What do I do? Okay, great. I didn't spend all the money. And then for a lot of women, we just leave it sitting in our checking account because it makes us feel safe. Yes. We love to open our bank account and see that we have that money that we didn't spend and that feels like success to us. But actually, when you leave your money sitting in your checking account, you're losing money due to inflation because checking accounts have such a low interest rate, but prices are rising all the time. So what you could have been able to buy with that$10 to$5 at the store, your daughter, a year from now, they're going to be able to buy the same amount for$3 or whatever it is.