BusinesssWorks 365 TM
MVP Kevin Durant Opens Up About His Childhood,
His Investments—and His ‘Real Life’s Work’
Jennifer Barrett, Editor-in-Chief
Acorns, Grow Magazine Exclusive
Work Smart
You know #35 as a former Rookie of the Year, eight-time NBA All-Star—and MVP of the NBA Finals that ended with the Warriors' decisive Game 5 win over the Cleveland Cavaliers. But Kevin Durant’s success reaches far beyond the basketball court.
In addition to earning big bucks from his endorsement deals—it’s reported he’ll make at least $36 million this year off the court, thanks to his partnerships with Nike and others—his startup, The Durant Company, has invested in companies like Postmates, Jetsmarter and, as of last fall, Acorns. As if that’s not enough to keep him busy, he also has a nonprofit, Kevin Durant Charity Foundation, which works to improve the lives of low-income kids through education and sports.
We spoke with the Golden State Warrior—who averaged 35.2 points per game during the Finals—about his childhood, the best money decision he’s made and why there’s no such thing as a slam-dunk investment.
You’ve talked a lot about the sacrifices your mom made for you and your brother, growing up.
How has she influenced your approach to your life and career?
Hard work! Plain and simple. It was so clear to me at a young age that if you didn’t get up every day and work till it was dark, you weren’t eating. So working hard and never cutting corners wasn’t even a question for me because we were starving. I’ll never forget seeing my mom before the sun came up leaving the house on a few hours sleep, over and over and over again.
How did watching your mom struggle to support you both while working two jobs affect your own relationship with money?
To this day, I still can’t believe the luxuries this game has afforded me. It’s almost embarrassing at times, but I understand it’s the market for my profession. I appreciate every moment and how lucky I am. Knowing how just a short time ago I had nothing has really been the leading motivation for me to have the right people work with me and help me manage my money. I want my kids and their kids to benefit from this time in my life and not ever have to go through what I went through. I’m also very driven to be as philanthropic as I can be. I don’t think I could enjoy my success without knowing I was doing all I could do to help others.
What’s the best financial decision you’ve made so far—and why?
Having the right people around me who I trust. And trusting my instincts and asking questions. You can’t learn and grow without leaning on others.
What’s the biggest financial lesson you’ve learned?
Nothing is a can’t-miss way to make money. There’s always a catch… Do your homework before investing or supporting a business or an idea. And save! Always keep building your savings because nothing in life is guaranteed. Ask more questions and trust yourself—just as I said before. But young Kevin had to learn those lessons for me to be who I am today and to be surrounded by the people I am with today.
What do you hope to accomplish through your namesake charity foundation?
To help as many underserved communities and children, especially through education, athletics and opportunity. It’s my real life’s work.
You own a stake in The Players’ Tribune, Tiger Beat, Postmates—and Acorns. What do you look for in the investments you pursue?
Things I connect to and believe in—and great executive teams. The people I’m investing in is really the first indicator of whether it’s something I want to be a part of.
Updated June 13, 2017
Football, Failure and Finances: An NFL Hall of Famer Opens Up
Acorns :: Grow Magazine
In order to be at the top of their game, pro athletes condition their bodies until they operate like machines. As a result, their remarkable physical power often overshadows the invisible, mental element of success.
But as NFL Hall of Famer Nick Lowery discovered, sharpening your brain power is just as important as toning your muscles. Not only did he harness his mental capacity to weather intense game-time stress, but he also persevered in the face of repeated rejection. Ultimately, he transformed from a pretty good player into the most accurate kicker in NFL history. Still, even with a much-longer-than-average NFL career, Lowery says the post-football transition was tough financially and emotionally.
We talked to Lowery about the strategies he used to become and remain a top NFL athlete for nearly two decades, what he’s done since retiring—and the financial lessons he’s learned along the way.
How did you learn to deal with enormous pressure?
You get used to it by doing it. The other part is persistence. Whether it’s learning to fly a jet plane, learning to be a brain surgeon, learning anything, it’s about putting yourself out there so many times that the initial sense of being an imposter… gradually dissipates into a certain level of ownership and master of the art. It can only happen by doing it. The best learners are those that are at peace with the notion that to be great requires them to make not less but more mistakes than anyone else.
Early on, you were cut 11 times by eight different teams. Did you ever think about throwing in the towel?
At the end of my second year, I had pretty much given up and had a great job [in the off season] as a legislative aide. But I figured I owed it to myself to give the NFL one last go. I got an offer from the Kansas City Chiefs a week or two after tryouts. I went on to play for 17 more years and got the all-time record for accuracy for most 50-yard field goals and best percentage for extra points. None of that would have happened if I had given up.
How was the transition to post-football life after 18 years?
It’s a difficult transition and also an emotional one. The statistics show about 80 percent of athletes have financial issues within 2 to 5 years after leaving the NFL…so those are difficult transitions. And suddenly you’re not part of the constant limelight and you have to learn how to shift your focus to some things that feed your spirit a lot more and the players that do that early on are the ones who do better.
What financial lessons have you learned over your career?
I was not a number one draft pick, so I can’t say, hey, I got this million-dollar bonus and invest in this. My parents were not that wealthy… And even an 18-year NFL career is never long enough. There are an enormous number of NFL players and pro athletes who are bankrupt after a few years of leaving the game. So to be able to live within your means really helps you. Make sure you enjoy it, yes, but not getting ahead of yourself is pretty important.
Did you have to learn that lesson personally?
Like a lot of people, I got ahead of myself with the house I was in and we refinanced like a lot of people leading into the financial and real estate downturn in the market in 2008. So I’ve had to learn to be much more disciplined about it because I always want to pour more money into the foundation. I love the house I’m in now. It’s smaller, it’s happier…When you have more money and you spend it on more things it also means that you have to manage more things. So there’s a big lesson right there: having more things does not give me peace of mind at all. So having a house that’s the right size, beautiful backyard, beautiful view, and making that my sanctuary is so much more satisfying than what I call the narcissistic athlete’s house I had before. You know, the look-how-successful-I-am house.
What’s been your best investment?
The investment I put into making a difference in this world. My foundation fills me up.
What financial advice would you give people in their 20s and 30s?
First, save at least 10 percent of everything you earn. Second, pick up what you pay on your mortgage—even if it’s only an extra $50 or $100 a month. It’s unbelievable how much [faster] you will pay it off. One of the most consistent sources of depression is feeling like you’re chained to debt. It’s important to have an intentional strategy for paying it all off, so that you can be free. ----This interview has been condensed and edited.
September 27, 2016
Are You a Natural Entrepreneur?
...Take the Quiz
Acorns :: Grow Magazine
Being an entrepreneur comes with a lot of lifestyle perks: I set my own hours, travel whenever I want, decide which projects to take on and carefully select who I work with. I can’t imagine my life any other way.
At the same time, there are plenty of inherent risks, pitfalls and opportunities for failure. In fact, an estimated 80 percent of businesses fail in their first 18 months. That’s a lot of people who set out with big ideas and dreams, only to pack it in once they don’t work out.
What distinguishes successful entrepreneurs from the 80 percent? For starters: “Real entrepreneurs know good ideas are cheap and that success comes from hard work, not a stroke of genius,” says best-selling author and entrepreneur Nir Eyal.
Think you’ve got what it takes? Take this quiz and find out.
Quiz :: What's Your Money Type?
Acorns :: Grow Magazine
You already know your personality influences everything from the friends you attract to the kind of career you’ll thrive in to how your love life unfolds. But your innate traits also shape your finances.
Drawing on the classic character types described in the well-known Myers-Briggs test, we worked with financial psychologists Eric Dammann, PhD and Olivia Mellan, author of “Money Harmony,” to identify four money personalities.
Take the quiz to discover which you are (keeping track of how many As, Bs, Cs and Ds you get), and what your results could mean for your bottom line.
April 10, 2017
4 Habits That Helped Me Save $100K
in Less Than Four Years
By Bola Onada Sokunbi
for Sapling
Saving a large sum of money can seem unrealistic, especially with a mortgage, a $54,000 salary and no outside contributions. But it’s very much possible. In three and a half years—starting right after I graduated from college—I saved more than $100,000.
Here’s how I did it ::
I contributed to my retirement accounts. When I first started working full time, I didn’t have a clue how to save for retirement (though I’ve since learned about asset allocation, diversification, fees and all that fun stuff). All I knew was I was being offered free money through my 401(k) employer match (they matched 100 percent of the first 6 percent I contributed) and I wanted it. By contributing 15 percent of my salary, I was able to put away about $40,000 in three and a half years. If your employer offers a match, you have to take it. If you can’t afford to max out the contribution right away, raise your contribution rate by 1 percent each quarter or year until you get what’s yours.
I kept my expenses low. Keeping my expenses down was another big factor. After contributing to my retirement account and paying for health insurance, my main expenses were my car ($150), auto insurance ($80), housing ($900) and utilities and cell phone ($170). I lived close to work, so I didn’t have to buy gas often. Whatever I had left over, I tried my best to save. “Going out” was hanging out at a friend’s house with Netflix and board games. I also packed lunches, worked out at home or the park, carpooled and didn’t eat out often.
I saved 40 - 50 percent of each paycheck—and anything extra. My first year working, I tried to save at least $600 from each $1,350-$1,400 paycheck. I also saved my annual bonus of $1,500 (after taxes) and the bulk of my tax return. This allowed me to save about $18,000 per year, which totaled well over $50,000 after three and a half years. The best move I made was making my cash savings automatic. The money was never in my main checking account, so I never saw it. You can’t miss what you don’t have!
I started a side hustle.
I started a side business. About a year and a half into saving, I became very interested in photography. I took a bit of money from savings, purchased some mid-level equipment and ended up with a very profitable part-time photography side business. I reinvested some of my profits into the business—$10,000 the first year, $30,000 the second, and more in subsequent years—and put the rest into savings. I worked hard, but it was worth it.
Bonus:: Around this time, I started learning about investing outside of my retirement account, so I used some of the money I earned from my business to do that. These earnings ultimately pushed my savings over the $100,000 mark.
Originally appeared on "Sapling".
14 Ways to Do What You Love for a Living
By Brittney Morgan,
Business News Daily Staff Writer
& Senior Writer Chad Brooks
Here are 14 tips for doing what you love for a living.
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Do some soul searching.
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Make time to make it happen.
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Figure out how to profit from your passion.
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Be realistic.
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Surround yourself with supportive people.
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Find mentors.
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Consider the environment you want to be in.
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Don't wait around.
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Take classes
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Swallow your pride
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Stay humble.
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Find ways to validate your decision
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Don't try to do it all on your own
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Be patient.
January 5, 2016
Get Inspired
Young Millionaires: 4 Ways to Hit $1 Million By 40
Acorns :: Grow Magazine
It can feel like hitting the $1 million mark requires having a Wall Street job, a trust fund—or decades to save. But these millionaires may change your mind. All four hit the major money milestone before turning the big 4-0—thanks to a mix of smart investing, sound money management and a little entrepreneurial savvy. Here's how they did it...
The Frugal Investor
Chris Reining, 38, Madison, WI
"Investing is the best way to build wealth, but it's not an overnight process. I began in my early 20s, funneling just $66 a month into low-cost index funds. My first big financial milestone came years later when I made my first $1,000 from investment returns. I kept at it, increasing the amount when I could afford it. By 27, my brokerage account had grown to $100,000—a combination of my own contributions and market returns—but I was still a slave to the 9-to-5 grind, earning $75,000 a year then as an IT specialist.
So I made a goal right then to grow my wealth to $1 million by 35. To accelerate my progress, I slashed my spending—cutting everything from lattes to hobbies. This freed up more than $1,000 per month, which I automatically transferred to my brokerage account, on top of what I was already contributing. I also increased my income over the years, so that by 2013, I was saving and investing over half of my salary (which never hit $100,000).
I eventually hit my goal of becoming a millionaire at 35, and even retired at 37. (My plan was to withdraw and live on 4 percent per year, but since my investments have continued to grow, I’m living on just 2 percent.) This kind of freedom and flexibility is worth all the sacrifices I made." His advice for others: "There have been periods when I lost a lot of money in the market. During one nine-month stretch during the recession, I lost $55,000. As scary as this was, I didn't react. Market volatility comes with the territory and is simply part of building wealth over the long term."
The Side Gigger-Turned-Business Owner
Nick Friedman, 35, Tampa, FL
"The summer before my senior year of college, my best friend Omar had an idea that would eventually change our lives: We'd take his mom's beat-up cargo van to do odd jobs and earn extra cash. We called ourselves 'College Hunks Hauling Junk,' and brought in $5,000 before the fall semester started, when we put the business on the back burner.
I graduated in 2004 and landed a corporate job doing economic consulting, but the 9-to-5 life was excruciating. That's when Omar and I decided to take a chance. I quit my job the following year, and we launched College Hunks Hauling Junk as a legit moving and junk-hauling business. We each contributed $10,000 from savings to get rolling and did everything ourselves, from truck driving to booking gigs.
Incredibly, we were profitable within three months, and by 25, I'd personally hit the $1 million mark. I feel very fortunate—the money has afforded me a nice house, the ability to occasionally splurge on loved ones and opportunities to invest in rental properties, earning me $20,000 per month. One of the most valuable things I've learned while building wealth is to pay myself first. While I've always reinvested money into the business, I've never failed to take care of my own savings and investment goals, too.”
His advice for others: "Keep your eyes open for opportunities. What started as a fun way to make extra money turned into something I never expected: Today, the company is worth over $40 million, and we have more than 100 franchise owners around the country! Had I not trusted my gut and gone all in, which included leaving a comfortable corporate job, I never would have grown my wealth the way I have."
The Real Estate Investor
Abhi Golhar, 32, Atlanta, GA
"I've always enjoyed tinkering with computers. In high school, I made $25 an hour doing repair gigs in the neighborhood. But while earning my degree in electrical engineering, my enthusiasm wore off. I started reading a ton of books about cultivating wealth and consistently noticed a recurring theme: real estate.
Infatuated, I began ‘wholesaling properties’ my junior year: Basically, I’d connect eager home sellers with active buyers—investors I met through local real estate groups, for example—then get a piece of the profits.
Next, I tried flipping homes in Detroit, but lost money, due to my lack of experience. Still, before graduating, I'd earned about $45,000 from my wholesaling projects, which helped me recover. In 2007, I started my own investment company in Atlanta, where I continued wholesaling and eventually started flipping residential properties as market conditions improved.
Today, that company is thriving, but I’m still diversifying my income and expertise in other industries, like medical education, where I earn roughly $90,000 per year as a consultant. In total, my businesses earn a few million a year, and I surpassed the $1 million mark personally in my late 20s. I feel great about my accomplishments so far, but there's still a long way to go—more businesses to start and people to help.
His advice for others: "Find a mentor before flipping real estate. I jumped the gun in Detroit, investing in three rental properties before I was ready. Between repairs and decreased home values, I ended up losing about $6,000. Remember, too, that becoming a millionaire isn’t about status. It’s about having the financial security to spend your time on things that really matter, like family and passion projects."
The Serial Entrepreneur
Michele Romanow, 32, San Francisco, CA
"I'm no stranger to rolling up my sleeves and getting to work. At 12, I was mowing lawns and changing tires to earn my allowance, which my dad taught me to save and manage like real earnings. I went on to study engineering, but soon learned I wanted to build businesses, not bridges," says Romanow.
After graduation, she and two former classmates used the $120,000 they won through business competitions to launch their first venture, a sustainable sturgeon aquaculture facility that delivered caviar to hotels and restaurants. That business went under when the recession hit, but Romanow was hardly daunted. After a stint at Sears Canada, she and the same two partners launched Buytopia, a daily deal platform that became one of the fastest growing companies in Canada, acquiring 10 competitors and signing up more than 7 million subscribers.
In 2014, she left to work at Groupon after it bought her Buytopia spinoff, a coupon app called SnapSaves, and also joined the cast of "Dragons’ Den," a Canadian version of "Shark Tank." Last year, Romanow left Groupon to become co-founder of her fifth business venture, Clearbanc, a financial services platform targeting freelancers and self-employed contractors. "I’ve always believed that you don’t need to have every certification and years of education to build a business," she says. "It’s all about taking risks and pushing forward."
Her advice for others: "Invest in yourself. I started building businesses early when I didn’t have the responsibilities of a mortgage or children and I could spend every minute making something work. Starting early and investing in myself were the best decisions I made."
10 TV Shows
Entrepreneurs Can Learn From
Inspiration for running a business can come from anywhere. Wisdom is found in kernels throughout life, and you can find quite a bit in the media you choose to engage in during your off time. Even shows seemingly unrelated to business can provide great ideas about running you business, so long as you know what to look for. These ten shows have plenty of lessons. If you are an entrepreneur, you should take notice of these shows:
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Dragons' Den: This show is the Japanese version of Shark Tank, where entrepreneurs pitch their ideas to venture capitalists who are looking to invest in the next big thing. You can pull plenty of pitch do's and don't's out of this show, so it is well worth your time to watch, Plus, it is pretty interesting television.
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The Apprentice: Even though reality television is mostly geared at entertainment, it does do a good job of showing some group dynamics (albeit slightly dramatized). The Apprentice is a great example of this, where even though entrepreneurs are put on the same team in the beginning, they are still primarily concerned with their own success. You can learn from their explosive conflicts on how to avoid similar ones in your business.
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Shark Tank: Even though this is the same premise as Dragons' Den, the domestic aspect of Shark Tank makes it a bit more relevant to many entrepreneurs. You should watch both to get a foreign perspective on your business pitch as well as a domestic one--knowing how to interact with both markets will put you at the forefront of your niche.
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Keeping Up With The Kardashians: Yes, even this show has something to teach you! The Kardashians may not be everybody's style, you cannot deny the fact that their branding is impeccable. You can use the same tricks to get to the top of your industry just by watching their show. As long as you know how to adapt them for your business, you can build a better brand one day at a time.
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Ramsay's Kitchen Nightmares: Forget the US version of this show; it is far too dramatized for any solid takeaways. However, the UK version does an excellent job of analyzing why the restaurants are failing and gives pragmatic solutions to turn things around. This well articulated business advice is something you can take with you.
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House Hunters: Not every television show that you can learn about running a business from focuses on business. House Hunters shows how people make large purchasing decisions and can give an entrepreneur great insight on how to gather the attention of potential buyers and convert warm leads into solid buys.
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Game of Thrones: While this show is more known for its political intrigue and sex appeal, the conflicts in Westeros can certainly show you how to (and not t0!) manage people. While the ruling class fumbles with managing large groups of people, other factions inspire loyalty and succeed at their goals. Noting the personal differences in the well-developed characters will give you plenty of help in managing a team of employees that can be just as varied.
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The Bachelor: You may find yourself asking how a show about dating can help you run a business, but The Bachelor teaches a lot of lessons--how to deal with different types of communication, how to play the game, and how to get along with your competitors. Cooperation and a healthy sense of competition are what drives businesses to innovate and continue to grow, so to better your business, make friends with them, but also learn when to let go.
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Techstars: This reality TV show about a tech startup incubator shows how to use these incubators to your advantage to build the strength of your business from day one. The lessons here are both obvious and valuable.
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Parks and Recreation: Managing a government is similar to managing a business--both have to turn revenues, deal with competition, and clashing employees. When you follow the residents of Pawnee, Indiana, on their road to success, you can see different ways of approaching situations in changes and operations across the board.
The opinions expressed are by author, not those of Inc.com.
By Murray Newlands
Inc. Magazine
OCT OBER, 2014
Listen Up
The Rapper Behind "Sallie Mae Back"
Has More Money Lessons to Share
By Molly Triffin
"I wanted to do something different than what rappers had taught me growing up."
Bragging about overspending is standard in the world of hip-hop. But boasting about paying off your student loans or driving a 19-year-old Honda Accord? Definitely not.
Yet New Orleans rapper Dee-1’s songs about paying “Sallie Mae Back” and being smart with his money have blown up—drawing millions of views on YouTube and Facebook. That’s led to a partnership with consulting firm PricewaterhouseCoopers to talk to students around the country about making good choices with their money.
We spoke with Dee-1 about the unusual trajectory of his music career, how he resists splurging on Benzes and Beemers—and his life-changing money moment.
Your song “Sallie Mae Back,” about using the proceeds from your record deal to pay off your student loans, struck a chord with college grads dealing with student debt.
Why are you so passionate about the topic?
After I graduated [from LSU], I was working as a teacher, money was tight and I was getting phone calls from the lender every month. I know the pressure that comes along with that. I also knew that the quicker I could pay my loans off, the less money I would have to pay overall because of the interest. So when I signed my record deal, the first thing I did was knock them out.
I wanted to do something different than what rappers had taught me growing up: spend money on cars, clothes, the club experience and jewelry. But most of these things depreciate and have no long-term value. I said if I ever become a successful rapper, I want to change that narrative.
You spent two years as a middle school teacher while getting your music career off the ground. How were you able to dedicate the time and money to do that?
As I neared [college] graduation…I thought it would be cool if I could do my music full-time. I didn’t have enough buzz to do that, but it had become such a passion that I didn’t want to stop because of my 9 to 5. That was actually part of the strategy behind becoming a teacher: It would give me weekends, holidays and summers off, and school ends at approximately 3 p.m. I’d have a bunch of flexibility to do my music.
Teaching isn’t the highest paying job, but I’ve become a pro at making a little bit of money stretch. I didn’t buy a new car after graduation or splurge on a new wardrobe. I made a moderate salary, but I was able to cover the expenses for my music career.
My music gradually gained steam, and I was putting out viral videos. I found myself saying, do I go to New York City and do a concert or stay here and grade math tests, when what I’m being paid for the concert is more than what I make in two weeks as a teacher?
The principal at my school saw my rapping as a distraction. Although it was a positive message with no profanity, he told me I would have to choose if I wanted to teach or rap. All of these factors made it easier for me to retire as a teacher in 2011.
How has your financial life changed since becoming famous?
When you work for yourself, you have to…pay your own taxes and business expenses. As a teacher, I had little-to-no business expenses and the infrastructure was provided to me, as far as the place where I worked and the materials I needed to teach. [But] I’m able to make more money now, and it’s a worthwhile tradeoff.
Rappers are known for spending money pretty lavishly. How do you manage the temptations?
It’s just discipline. I know that anything I spend has a consequence. I wasn’t raised to need the things other rappers may need—like, you’ve got to have this many karats of diamonds or drive this type of car. I don’t need those things to feel fulfilled.
I also want to set a good example. I don’t want to be in trouble, living above my means, and educate others to not do the same.
I don’t make the most money in the world. I’m not sitting here making Dr. Dre, Lil’ Wayne, Jay-Z, Eminem type of money. I know people who make millions every year, but they still end up mismanaging it. That motivates me to be different. Whatever I’m given, whatever I’m blessed with, it’s in my heart to be a good steward of it.
What inspired you to write your new song “No Car Note”?
I drive a ‘98 Honda Accord with almost 300,000 miles on it, but it’s still ticking. I’m a point A to point B type of person in terms of how I view cars. It’s not a fashion statement. Before I had a record deal, I was still riding around in that car, so it keeps me humble.
I have been seeing a lot more success in the past couple of years, but I don’t want to turn into someone who is splurging on things like cars. That’s not to say I can’t treat myself to a new car if I want to—but it’s more of a want than a need, and I know how to separate my wants from my needs.
What money lessons did you learn growing up?
Honestly, I saw a lot of mistakes being made. I used to hear about student loans and credit card debt from my mom—not lessons of how to pay it off, but the stress associated with having that debt. I was like, yo, it must be tough to be an adult because I hear about all these bills every month.
I definitely wasn’t taught about financial literacy in school. I’ve always been infatuated with math and numbers, but that didn’t translate into learning about money. And I wasn’t hearing it in the hip-hop music I listened to, which was about getting money, making money and spending money. None of it was about saving or being [financially] literate.
What’s the smartest thing you’ve done with your money?
Paying off my student loans before the time I was required to. I felt like The Man, like I accomplished something. The joy I felt led me to make the song that is the motivational anthem for a lot people waiting for that day.
Any financial regrets?
My mom used to get on me about putting money aside for retirement, and it wasn’t until recently that I started doing that. I don’t know if I would call it a regret because I felt it was the only option I had—I barely had enough to stay afloat—but it’s something I’ve wondered about: What if I had been putting money away for these few years? I know how it can accrue.
What’s the best money advice you ever got?
When I was around 12, my grandparents’ cars both stopped working at the same time, so I made a joke about them taking the bus with me. My grandfather called me into his music room where he kept his jazz records, and told me to open the cover of one of his albums. Inside was $25,000 in cash. He told me it was important to put money aside for a rainy day. That lesson stuck in my mind and played a big role in me learning to manage my money properly, so I’m never stuck.
What financial tips would you give to people in their 20s and 30s?
If you’re still in school, don’t take out more in student loans than what you expect your starting salary to be. Once you’re in the workforce, you can’t get caught up trying to live the lifestyle that your friends are or that social media is glorifying to the point where you’re living above your means.
You also have to be able to separate your wants from your needs. And don’t overspend on food: As millennials, we are always busy and on the go. Cooking can feel too slow-paced or boring—but it helps a lot to save money. When it comes to cars, avoid having a car note at all costs. Lord willing, I’ll never have to have a car note in my entire life.
This interview has been edited and condensed.
February 14, 2017
Work Smart
Actress Brooke Lyons on the Financial Realities of Life Before the Big Break
Acorns::Grow
Between red carpets and star-studded all nighters at the Chateau Marmont, life as a working actress may sound glitzy and glamorous. But when it comes to finances, there’s a gritty underbelly to Tinseltown’s sheen.
After all, most professional jobs come with a steady paycheck, regular hours and benefits like health insurance and a 401(k). That’s rarely the case for the Hollywood set—which begs the questions: How can actors save when they never know when their next gig will come through, how long it’ll last or what they’ll earn? And how do they balance those challenges with pressure to project a luxe lifestyle.
We caught up with 35-year-old actress Brooke Lyons—who’s best known for her recurring roles on “The Affair” and “2 Broke Girls,” and recently appeared in “The Mindy Project” and “Grandfathered”—to dig deeper into the financial realities of working in show biz.
What inspired you to pursue acting as a career?
Growing up, my parents encouraged involvement in the arts: liberal arts, visual arts, performing arts, you name it. By the time I reached college, I had many passions, but no clear idea of what I wanted to do.
Because I was open to anything, I studied everything—and one of those things was acting. By senior year, it was the only thing I could imagine doing. I was young and idealistic enough to buy a one-way ticket to Los Angeles.
How did you get your foot in the door in L.A.?
I enrolled in an acting class and regularly [looked] for low budget and student film auditions, in hopes of getting some on-camera experience. I [also] got a job as a hostess at a Beverly Hills restaurant where agents and managers were known to lunch.
Soon one thing led to another: I met a manager who signed me. Through him, I booked my first television job, which made me a member of the Screen Actors Guild. A friend asked me to perform with him in a showcase, and my first agent was in the audience that night. Small roles led to bigger roles.
What are some of your career highlights so far?
Though a public profession, acting has its fair share of private moments. Some of the quietest moments of my career have been highlights: giving the performance of my life in an audition for a role I didn’t ultimately get; developing behind-the-scenes friendships that have become pillars of my personal life; picking myself up after massive disappointment and coming back stronger. In a visible way, I’d say the highlights have been my favorite jobs, namely “2 Broke Girls” and “The Affair.” They gave me the opportunity to team with creatives I’d long admired and collaborate with them in exciting ways.
Acting—like a lot of creative fields—is so unpredictable. How do you manage your money?
Budgeting based on an income comprised entirely of acting jobs, which is what I do, involves a lot of living within my means and saving for a rainy day. Years ago, I started putting 10 percent of every paycheck, regardless of the amount, into savings. If I couldn’t afford something without dipping into savings, I wouldn’t buy it. Of course there were times when I’d need to drain my savings to pay rent, and in those times, I’d go on as many auditions as I could, get a day job and start all over again. But once you have enough savings, you can start to think about investing and retirement, neither of which I even considered before 30. Being an actor…takes discipline to set limits and plan for the future. Bonuses and 401(k)s are simply not a part of the culture.
Have you considered a backup career?
I don’t have a backup plan. This is not an easy industry, and many people in it would give the advice that if you have a backup plan, you should do that instead.
On the other hand, it’s natural for people to grow out of one career and begin another. One of the things I love most about the entertainment industry is its variety. If you’re acting, you’re not just going out for film and television roles. If you’re smart, you’re diversifying with commercials and voiceover work. [Plus], if you’ve been acting for a long time but find that the work has stopped, an organic transition could involve writing, producing or directing. Having been an actor prepares you for all three.
What’s a common financial mistake actors make, but you try to avoid?
Something unique to being an actor is that your life can change overnight. One day you’re driving an ’87 Corolla and have no health insurance, and the next day you score a $30,000-a-week television contract for 22 weeks a year.
A lot of people would buy a new car, move to a great apartment, maybe go on vacation. But you never know how long a show will last or, in the event that it tanks, what your next job will be. Maybe the network will cancel it after two episodes, so your gross income is $60,000, of which you take home about half, after taxes and agent and manager fees. An annual income of $30,000 in an expensive city like L.A. will make you wish you still had that Corolla.
It seems like there’s a lot of pressure in Hollywood to maintain a certain image. How do you deal with that?
While it is important, in an image-based industry, to present a certain way, I choose to limit that to my professional life. I may spring for a plane ticket to do a job in New York or a red carpet dress for a premiere, but in my personal life, I surround myself with low-key people who do not need to spend a lot of money to have a great time.
When it comes to photo shoots and events, I’m a big fan of borrowing and trading. A makeup artist will lend me her services for the day if she can use my photographs in her portfolio. My blogger friend receives a lot of clothing from companies she features on her blog, so if I have an event, I’ll raid her closet instead of spending a fortune on something new.
What’s the biggest financial mistake you’ve made?
Getting into debt was a mistake. It’s tempting to think, `I’ll just use my credit card for these necessities while I’m in a pinch, and then I’ll book a big job and make a lot of money and everything will be fine.’ I wouldn’t recommend that. Now I know that when I do book a good-paying job, it’s icing on the cake, rather than triage. It was also a mistake to delay taking an interest in my financial future. Actors, like many artists, just want to create. I had no interest in the business side of things. But as a performing artist, you’re basically the CEO of the company that is you. I had to learn that embracing the business of show business was the very thing that would make it possible for me to continue doing my art.
What’s the best financial advice you’d give to people in their 20s?
Whether it’s a savings account that you don’t dip into, an IRA or another kind of investment, the sooner you start, the better. Honor this practice as you would any other commitment. Position yourself not to live paycheck to paycheck, but to have your money make money.
August 12, 2016
All About the Hustle
I Paid Off Almost $50,000 of Debt By Side-Hustling on Fiverr
By Joel Young,
As told to Marianne Hayes
Fiverr is an online platform that connects freelancers and buyers, with popular categories including graphic design, digital marketing, programming and more. In-depth services like whiteboard animation go for about $25, while quick photo retouching falls in the $5 range.
While Joel’s story is impressive, no two sellers are alike and earnings can vary widely. Fiverr also takes a 20 percent cut of each job sold.
Six years ago, my job moved my family from Cincinnati to South Florida, where the cost of living is significantly higher. We lived off my modest pastor salary—which sat well under $100,000—while my wife Jenna stayed home with our two toddlers.
Our rent was double our old mortgage, and necessities like groceries and gas were considerably more expensive. We’d also moved with a $12,000 car loan and $25,000 of personal loans and credit card debt, thanks to a period of unsteady income. And in 2012, we got hit with $10,000 of unexpected medical bills.
The day we tallied it all up—realizing we were nearly $50,000 in debt—was our wake-up call. If we didn’t reverse course, debt would eventually swallow us.
So we started looking for ways to wipe out our debt.
Around that time, I was tasked with outsourcing some creative work for my church. Someone suggested Fiverr, where I easily found someone to produce videos and do voiceover work. That’s when Jenna encouraged me to try freelancing on Fiverr myself. I was no “voiceover artist,” but had plenty of public speaking experience as a pastor. As a former musician, I even had a recording mic.
So I created a profile, in hopes of making $100. To make it worth my while, I made $5 for about one minute of voiceover work. Surprisingly, I ended up booking $400that first month, all of which went toward debt. (That said, Fiverr can be tough to break into. When you’re starting out, your services are cheaper than experienced sellers’. But it’s all about the hustle.)
I was hooked. When I made a personal video for my profile to better advertise my services, I ended up finding clients who wanted me to create videos for them, too. So I began selling video editing and on-camera spokesman services, using programs like iMovie and GarageBand. I loved the creative outlet and opportunity to sharpen my skills.
At first, I worked on Fiverr gigs, which I completed in anywhere from a few minutes to a few hours—for an hour or more a night. But as things took off, I started putting in four to five hours, and my sale price soared to $25-$35. I ended up grossing $35,000 the first year, throwing all of the post-tax income toward debt. Six months later—18 months after starting—we were completely debt-free!
After that, I funneled all the extra income to savings.
By July 2014, I was routinely working six or seven hours a day. So I quit my job to concentrate on the six-figure business I’d created. This wasn’t easy; my heart was—and is—devoted to the church. But I knew it would give us more freedom and stability. For example, being location-independent meant we could move back to Cincinnati, and earning more allowed us to be more generous at church, where I still volunteer.
Once we topped off our emergency fund, we moved home.
My business has grown more than 100 percent in revenue every year.
Earning multiple times my old salary has opened so many doors: We were able to buy a larger piece of land and really enjoy country living. And we’re even in the process of adopting a third child. Today my Fiverr gigs, usually for animation or video production, sell for $300-$500. My clients value quality work—and my five-star reputation means I can demand those higher rates.
My advice for people interested in Fiverr is that there’s no substitution for hard work. Persistence is key, and it might take years to earn a sustainable income. So diversify your efforts across multiple channels. Fiverr only represents about 50 percent of my business now—the other half comes from direct relationships grown through referrals and marketing efforts, like my YouTube channel.
Again, it’s all about the hustle.
April 19, 2017
