Ep 487: From $100k to Millions: Tori Dunlap on Building Wealth That Lasts

Summary

HerMoney Episode 487: From $100k to Millions with Tori Dunlap

In Episode 487 of HerMoney with Jean Chatzky, host Jean Chatzky sits down with Tori Dunlap, the founder of Her First $100k and a prominent advocate for financial feminism. This engaging conversation delves deep into Tori’s remarkable journey from saving her first $100k to becoming a multimillionaire, her strategic investment philosophies, the unique financial challenges women face, and practical tips for building lasting wealth.

1. Tori Dunlap’s Wealth-Building Journey

Tori Dunlap shares her inspiring financial trajectory, highlighting the pivotal moments that propelled her from earning her first $100k to amassing a multimillion-dollar net worth by the age of 28.

Early Financial Education: Tori credits her parents for instilling a strong financial foundation. “My dad sat me down at my first corporate job... and explained how the stock market works, what a Roth IRA is, and how to choose index funds” (04:40).
Strategic Growth: Through entrepreneurship and strategic investing, Tori’s wealth grew exponentially. “We went from 100k at 25 to being a millionaire at 27 to multimillions at 28. That wasn’t accidental. It was very strategic” (04:50).
Advocacy for Financial Empowerment: Tori emphasizes the importance of women owning their financial power. “We are told all these narratives around investing... which is leaving us behind in terms of the wealth gap” (08:00).

2. Investing Philosophy: Embracing Index Funds

Tori advocates for a primarily passive investment strategy, focusing on index funds over individual stock picking.

Index Fund Dominance: “I am 99.9% in index funds... they’re diversified and low cost” (12:23).
Minimal Individual Stocks: While Tori occasionally invests in individual stocks like Costco, Bumble, and Shopify, these constitute a small portion of her portfolio. “When I buy individual stocks, it’s more about my personal stamp of approval and supporting companies I believe in” (13:00).
Avoiding Active Trading: Tori prefers a set-it-and-forget-it approach, minimizing the time and effort spent on active trading. “I have better things to do with my life than research hours every day” (14:00).

3. Overcoming Barriers for Women in Investing

Tori addresses the misconceptions and systemic barriers that deter women from investing confidently.

Misconceptions About Money: “Money is a learned skill, just like anything else... We believe we should be born with the good with money gene or the bad one” (07:39).
Gatekeeping by Financial Services: She critiques the financial industry’s tendency to “mansplain” to women and the inefficiency of many financial advisors. “Only 25% of professional stock pickers outperform traditional diversified investments” (08:10).
Encouraging Financial Literacy: Tori emphasizes that investing is not reserved for the financially elite and encourages women to educate themselves. “Investing is one of the easiest ways, if not the easiest way, to make your money work as hard as you do” (07:50).

4. The Great Wealth Transfer and Inheritance

The discussion shifts to the impending great wealth transfer, where women are set to inherit a significant portion of wealth but often lack the knowledge to manage it effectively.

Statistics on Inheritance: Jean shares a startling statistic: “Research shows that within a year about 40% of inherited money has been blown” (22:42).
Opportunities and Risks: Tori views inheritance as an incredible opportunity but warns of the emotional and financial pitfalls. “I want women to make the most of it... Ensure it’s life-changing for you” (22:50).
Psychological Impact of Inheritance: They discuss how inheritances are often tied to grief, leading to hasty financial decisions. “Money is emotionally loaded... Your first step is to go to therapy” (25:12).

5. Emotional Aspects of Money: Financial Self-Care

Tori and Jean explore the psychological dimensions of money management, emphasizing the importance of emotional well-being in financial decisions.

Money as Emotional: “Money is not just about math and numbers. It’s psychological” (26:00).
Financial Self-Care: Jean describes financial management as a form of self-care, crucial for overall well-being. “If you don’t have enough money, you can’t do any of those other self-care things” (07:02).
Processing Financial Trauma: They highlight the necessity of addressing emotional trauma before making major financial decisions. “Take $150 and go pay a good therapist... to process how you feel” (26:06).

6. Facing Backlash and Challenging Gender Roles

Tori discusses the backlash women often face when speaking openly about their finances and the broader issue of gender roles in society.

Backlash for Financial Boldness: “When women speak boldly about money, they get backlash” (27:30).
Threat to Masculinity: Tori explains that some men feel threatened by financially independent women, challenging traditional gender roles. “Patriarchy has convinced women that there’s one seat at the table... pushing every woman out of the way” (27:50).
Supporting Each Other: She advocates for women viewing each other’s success as opportunity rather than competition. “See other women’s success as an opportunity... that’s not serving me” (30:00).

7. Maximizing Credit Card Points: Practical Tips

In the final segment, Tori shares her expertise on leveraging credit card points to enhance financial benefits.

Choosing the Right Card: Tori advises selecting versatile credit cards like Chase or American Express over store-specific ones. “Never sign up for a store credit card... it’s going to put you in debt” (32:37).
Avoiding Credit Portals: She recommends transferring points to airlines or hotels instead of booking through credit card portals for better value. “Don’t book through the portal... transfer your points to the airline” (35:55).
Managing Annual Fees: Tori discusses evaluating the benefits versus the costs of credit cards with high annual fees. “Your cards should be working for you... consider downgrading or canceling if not” (36:19).

8. Conclusion and Resources

Jean and Tori wrap up the conversation by sharing resources for listeners to continue their financial education and empowerment journey.

Follow Tori: Listeners can connect with Tori on Instagram @herfirst100k and explore her free personalized money plan at herfirst100k.com/quiz.
HerMoney Programs: Jean highlights HerMoney’s programs—Finance Fix, Pre Retirement, and Investing Fix—designed to help women gain financial confidence and control.

Notable Quotes:

“I am 99.9% in index funds... they’re diversified and low cost.” — Tori Dunlap (12:23)
“Money is a learned skill, just like anything else.” — Tori Dunlap (07:39)
“Perfectionism is just fear and stilettos.” — Tori Dunlap (10:11)
“Wealth means options. Having money means options for your life and choices.” — Tori Dunlap (08:00)
“The first step is to go to therapy.” — Tori Dunlap (26:43)

Timestamp References:

For a comprehensive understanding of building lasting wealth as a woman, this episode offers invaluable insights, actionable strategies, and a motivational narrative to inspire financial empowerment.

Summary

HerMoney Episode 487: From $100k to Millions with Tori Dunlap

1. Tori Dunlap’s Wealth-Building Journey

Tori Dunlap shares her inspiring financial trajectory, highlighting the pivotal moments that propelled her from earning her first $100k to amassing a multimillion-dollar net worth by the age of 28.

Early Financial Education: Tori credits her parents for instilling a strong financial foundation. “My dad sat me down at my first corporate job... and explained how the stock market works, what a Roth IRA is, and how to choose index funds” (04:40).
Strategic Growth: Through entrepreneurship and strategic investing, Tori’s wealth grew exponentially. “We went from 100k at 25 to being a millionaire at 27 to multimillions at 28. That wasn’t accidental. It was very strategic” (04:50).
Advocacy for Financial Empowerment: Tori emphasizes the importance of women owning their financial power. “We are told all these narratives around investing... which is leaving us behind in terms of the wealth gap” (08:00).

2. Investing Philosophy: Embracing Index Funds

Tori advocates for a primarily passive investment strategy, focusing on index funds over individual stock picking.

Index Fund Dominance: “I am 99.9% in index funds... they’re diversified and low cost” (12:23).
Minimal Individual Stocks: While Tori occasionally invests in individual stocks like Costco, Bumble, and Shopify, these constitute a small portion of her portfolio. “When I buy individual stocks, it’s more about my personal stamp of approval and supporting companies I believe in” (13:00).
Avoiding Active Trading: Tori prefers a set-it-and-forget-it approach, minimizing the time and effort spent on active trading. “I have better things to do with my life than research hours every day” (14:00).

3. Overcoming Barriers for Women in Investing

Tori addresses the misconceptions and systemic barriers that deter women from investing confidently.

Misconceptions About Money: “Money is a learned skill, just like anything else... We believe we should be born with the good with money gene or the bad one” (07:39).
Gatekeeping by Financial Services: She critiques the financial industry’s tendency to “mansplain” to women and the inefficiency of many financial advisors. “Only 25% of professional stock pickers outperform traditional diversified investments” (08:10).
Encouraging Financial Literacy: Tori emphasizes that investing is not reserved for the financially elite and encourages women to educate themselves. “Investing is one of the easiest ways, if not the easiest way, to make your money work as hard as you do” (07:50).

4. The Great Wealth Transfer and Inheritance

The discussion shifts to the impending great wealth transfer, where women are set to inherit a significant portion of wealth but often lack the knowledge to manage it effectively.

Statistics on Inheritance: Jean shares a startling statistic: “Research shows that within a year about 40% of inherited money has been blown” (22:42).
Opportunities and Risks: Tori views inheritance as an incredible opportunity but warns of the emotional and financial pitfalls. “I want women to make the most of it... Ensure it’s life-changing for you” (22:50).
Psychological Impact of Inheritance: They discuss how inheritances are often tied to grief, leading to hasty financial decisions. “Money is emotionally loaded... Your first step is to go to therapy” (25:12).

5. Emotional Aspects of Money: Financial Self-Care

Tori and Jean explore the psychological dimensions of money management, emphasizing the importance of emotional well-being in financial decisions.

Money as Emotional: “Money is not just about math and numbers. It’s psychological” (26:00).
Financial Self-Care: Jean describes financial management as a form of self-care, crucial for overall well-being. “If you don’t have enough money, you can’t do any of those other self-care things” (07:02).
Processing Financial Trauma: They highlight the necessity of addressing emotional trauma before making major financial decisions. “Take $150 and go pay a good therapist... to process how you feel” (26:06).

6. Facing Backlash and Challenging Gender Roles

Tori discusses the backlash women often face when speaking openly about their finances and the broader issue of gender roles in society.

Backlash for Financial Boldness: “When women speak boldly about money, they get backlash” (27:30).
Threat to Masculinity: Tori explains that some men feel threatened by financially independent women, challenging traditional gender roles. “Patriarchy has convinced women that there’s one seat at the table... pushing every woman out of the way” (27:50).
Supporting Each Other: She advocates for women viewing each other’s success as opportunity rather than competition. “See other women’s success as an opportunity... that’s not serving me” (30:00).

7. Maximizing Credit Card Points: Practical Tips

In the final segment, Tori shares her expertise on leveraging credit card points to enhance financial benefits.

Choosing the Right Card: Tori advises selecting versatile credit cards like Chase or American Express over store-specific ones. “Never sign up for a store credit card... it’s going to put you in debt” (32:37).
Avoiding Credit Portals: She recommends transferring points to airlines or hotels instead of booking through credit card portals for better value. “Don’t book through the portal... transfer your points to the airline” (35:55).
Managing Annual Fees: Tori discusses evaluating the benefits versus the costs of credit cards with high annual fees. “Your cards should be working for you... consider downgrading or canceling if not” (36:19).

8. Conclusion and Resources

Jean and Tori wrap up the conversation by sharing resources for listeners to continue their financial education and empowerment journey.

Follow Tori: Listeners can connect with Tori on Instagram @herfirst100k and explore her free personalized money plan at herfirst100k.com/quiz.
HerMoney Programs: Jean highlights HerMoney’s programs—Finance Fix, Pre Retirement, and Investing Fix—designed to help women gain financial confidence and control.

Notable Quotes:

“I am 99.9% in index funds... they’re diversified and low cost.” — Tori Dunlap (12:23)
“Money is a learned skill, just like anything else.” — Tori Dunlap (07:39)
“Perfectionism is just fear and stilettos.” — Tori Dunlap (10:11)
“Wealth means options. Having money means options for your life and choices.” — Tori Dunlap (08:00)
“The first step is to go to therapy.” — Tori Dunlap (26:43)

Timestamp References:

For a comprehensive understanding of building lasting wealth as a woman, this episode offers invaluable insights, actionable strategies, and a motivational narrative to inspire financial empowerment.

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Summary

1. Tori Dunlap’s Wealth-Building Journey

2. Investing Philosophy: Embracing Index Funds

3. Overcoming Barriers for Women in Investing

4. The Great Wealth Transfer and Inheritance

5. Emotional Aspects of Money: Financial Self-Care

6. Facing Backlash and Challenging Gender Roles

7. Maximizing Credit Card Points: Practical Tips

8. Conclusion and Resources

Summary

1. Tori Dunlap’s Wealth-Building Journey

2. Investing Philosophy: Embracing Index Funds

3. Overcoming Barriers for Women in Investing

4. The Great Wealth Transfer and Inheritance

5. Emotional Aspects of Money: Financial Self-Care

6. Facing Backlash and Challenging Gender Roles

7. Maximizing Credit Card Points: Practical Tips

8. Conclusion and Resources