Why It's Hard to Take Financial Advice from Family Members
Podcast Notes
Haley works in HR for a luxury clothing company that has headquarters in both Paris and New York City. She never really thought about her savings until the last year. She grew up with a father in finance, but she never did anything with her own. She is the spender of her siblings.
Victoria recommended Nick to be Haley’s trainer. Victoria was Nick’s mentor, when he started at The Gym. Nick has three siblings, and when he tries to coach them on things, they don’t follow through. It is difficult for most of us to have frank conversations about money with family, whether it is with a parent or sibling.
The best thing about Nick for Haley is that he is an unbiased third party. Haley has always had champagne taste and her siblings are humble, modest, and can live with less and it isn’t easy for them to understand or grasp what’s important to her and why. She doesn’t see a challenge working three jobs, if she can buy a Chanel bag at the end of the year.
Haley feels less judged when she talks to Nick about her finances versus Victoria. An unbiased person doesn’t have emotional connections to you. Nick cares about the success of his clients, but his goal is to help them reach their goals regardless of what those goals are.
Haley’s non-negotiables at her first session with Nick were biweekly gel manicures ($100 a month) and coffee at local coffee shops ($50 a month).
Victoria encouraged Haley to join The Gym, but Haley needed to come to that decision on her own. There came a point where she didn’t understand where her money went and why she wasn’t saving. Their family didn’t grow up talking about money, and Haley always worried they would run out.
Haley did subconsciously learn it was important to pay off her credit card in full every month and not to buy something if she didn’t have the money for it.
Victoria was 16 during the 2008 financial crisis and Haley was about 13, and Victoria remembers that her parents were worried about the stock market. They understood growing up if they wanted things, they needed to work for them.
All of us have some sort of relationship with money that we need to work on when we move out of our parents’ house. We learn certain things from our parents and our upbringing.
Nick’s parents were theater people and they weren’t poor, but they were not great with money. His parents made sure that even if they were struggling, they made Nick and his siblings feel valued and understand the value of money.
Nick received a $.50 weekly allowance as a child when he did chores and he was encouraged to get a paper route when he was old enough.
Nick was in college during the financial crisis, working two jobs, and he graduated during the recession. He was doing fine with his finances, but he didn’t create an excess in his income, he was living paycheck to paycheck, and then something came up. This sparked his interest in personal finance.
There is so much information available, but it is difficult to figure out how to apply it to your situation. The previous generation’s path to wealth may not be the same path as yours.
During COVID, Haley was on unemployment for a while and she tried an influencer side hustle on Instagram (@itshailzbailz) to make a little money. She also has worked as a waitress at a restaurant for almost 10 years.
Before the pandemic, Haley was doing freelance work for Instagram influencers. She was an assistant to one influencer. When the world shut down, Haley lost her job. However, during that time, she built a network with other influencers professionally and personally.
She started marketing herself as a graphic designer/brand consultant, and she started doing work for free for well-known bloggers who would give people her name. Six months into the pandemic she applied for unemployment and she was able to get some assistance.
She now has companies reach out to her on Instagram and try her products. If she spent 40 hours a week on her Instagram, she could monetize it, but she wants to give the corporate world a try.
The influencing market is huge right now and brands are spending a lot of money on it. Haley gets free products and services that she would not pay for herself, including spa treatments and fitness classes.
References mentioned:
Haley’s Instagram @ItsHailzBailz