Financially Naked with Irene
At the Financial Gym, we call the first meeting you have with a trainer, the “financially naked session.” In this meeting, you share everything about yourself financially so that the trainer knows where you’re starting so that they can make the plan for how you can get where you want to go. Above all other meetings, this one scares clients the most because they are afraid or ashamed of their financial situation. Over 3 years ago now on this podcast, I shared my financially naked session and it led to a request for more and now this is a regular series on this podcast. Getting in the hot seat today is Irene. Irene had been a long time podcast listener that took a risk and joined the Gym right at the beginning of the pandemic. She shares her story from student loan debt, to job changes and everything in between.
What are we drinking?
Irene - Blend of 7 different teas, The Windy City Blend
Shannon - Black Cherry Schweppes
Podcast Notes
Irene's dad passed away when she was six years old, and her mom raised the family as a single parent. They always had what they needed money-wise, but she was aware of the tension it caused for her family.
She's always loved animals, and after graduating college, Irene got a job with the local animal shelter where she volunteered. The work was fulfilling, but there needed to be an opportunity to make the money she needed. Working this job meant she couldn't go on vacation or get the surgery she needed. A friend recommended looking into UX (User Experience) Design.
Upon graduating with her master's degree, she got a job but had a total of $97,000 in student loans. It didn't worry her too much at the time because everyone around her had student loans, and it didn't seem like a big deal.
She came across the book Rich Bitch, by Nicole Lapin. The catchy title sucked her in; it was her first personal finance book. One step in the book is calculating your net worth, which Irene had never done before. She did the math and realized her net worth was around -$100,000. She started Googling, 'How to get out of debt?' and came across The Dave Ramsey method.
This method had Irene on a strict budget, and she was focused intensely on the debt. The plan worked for a while but needed to be more long-term sustainable. While Irene did get results, there were a lot of tears and anxiety involved. She had paid down $57,000 of debt but was not doing well emotionally.
Shannon and Irene met at a Chicago Financial Gym event in March 2020 before everything shut down. Irene remembers it vividly because no one was hugging or shaking hands. After all, things were very uncertain. She became a member shortly after the event and started working with Sara B. It felt like the perfect fit for Irene, and she's been a member since.
The Financial Gym is all about progress over perfection and a balanced approach. The advice is personal in a way you can't get from research online alone.
Let’s get to the digits:
Salary: $157k yearly
Take-home pay: $3,877 twice monthly = $7,754 per month
Assets
Checking 1: $739
Savings 1 - General: $325
Savings 2 - Pets & Auto: $325
Savings 3 - Travel: $2,325
HYSA Amex: $10,000
Betterment: $15,142
Traditional IRA: $79,955
Roth IRA: $11,268
401k: $37,268
ESPP: $5,500
RSU: $14,500
Liabilities
Student loan debt free!
Auto Loan 3%: $22,000 - $234 monthly payment
Mortgage: $274,000 - $1,500 monthly payment
Credit Score: 809
Expenses:
Mortgage: $1,500
Avg monthly expenses: $5,000
Insurance:
Life Insurance through work
Auto & Home Insurance
Goals:
1-3 Years:
She would like to build up the sinking funds so she can travel more and always be ready for pet emergencies.
3-5 Years:
She is living in a condo now and would like to buy a house in the future.
10+ Years:
She would love to be financially independent and possibly own some land with enough space for all her animals and more.
What is important:
Animals
Travel
Control of her time
Takeaway:
My biggest takeaway is to make sure that before you take on more student loan debt to further your education that you have a good idea that the move will lead to a higher income down the road from you. I’ve seen too many people take on more debt and end up with the same or less pay over time.
Random Three Questions
What’s the best way to find the right fur baby to adopt?
What is something you are binging?
If you had a million dollars, what would you do with it?
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at Shannon@fingyms.com, or join the private Martinis and Your Money Facebook group, and let me know what you want to hear.
We are fast approaching the end of another year and we need to start preparing for a new year. If you or someone you know would like to have a supportive best financial friend along the ride with you for this journey, please check out financialgym.com. With memberships starting as low as $35 a month, we are the inflation-proof source for financial wellness for anyone. So head over or send friends to financialgym.com and schedule a warm up call today. As a reminder, our warm up call team is staffed with amazing and current Financial Gym clients that can answer any of your questions about our program.