The Money with Katie Show

Episode: A CFP on Outdated Advice, "Jumping" Social Classes, & Why Money Mindset Matters
Date: September 3, 2025
Host: Katie Gattytosan
Guest: Adriana Adams, CFP (Domain Money)

Episode Overview

In this episode, Katie invites Certified Financial Planner Adriana Adams to dig into a backlog of listener questions that range from rethinking classic financial advice to navigating complex career and life transitions. They explore outdated “rules of thumb,” the emotional realities of jumping social classes, the nuances of career moves and entrepreneurship, and the mental aspects of money management. Emphasis is placed on the individuality of personal finance and the interplay between hard numbers and personal values.

Key Topics & Insights

1. Challenging Outdated Financial Advice

• Listener Q (Shin): What commonly used financial rules are outdated or unrealistic today?
  • Adriana Adams [05:19]: "There is no one size fits all. These rules are great benchmarks, but they're not rules to live or die by, because nothing is for everybody."
    • The 50/30/20 budget, 4% withdrawal rate, and 3-6 months emergency fund are all “back-of-the-napkin” tools—helpful, but not universal.
    • High cost of living can distort standard allocations; personal goals and situations matter far more.
    • Savings guidelines: 15% is a good general target, but may need to be higher for aggressive goals (e.g., FI/RE).
• Katie [06:26]: Points out practical reallocation (e.g., higher housing costs in NYC balanced by lower transportation).

Memorable Quote

"Comparison is the worst thing that you can do... It's all about what you want to achieve and what your timeline looks like."
— Adriana Adams [06:55]

2. Planning for Uncertain (and Shorter) Futures

• Listener Q (Mary): Planning for retirement after major illness, with heightened risk of a shorter lifespan.
  • Adriana Adams [09:22]: “Uncertainty is your worst enemy… If you don't have an A plan and a B plan, that's where we can make... detrimental decisions.”
    • Run multiple scenarios: Plan for longevity (~age 95), but also what life looks like at 65, 85, etc.
    • Balance the benefits of tax-advantaged accounts with need for flexibility; sometimes, a taxable brokerage is better if early access may be needed.
  • Katie [13:31]: The 10% early withdrawal penalty on retirement funds isn’t always a hard stop—sometimes flexible access trumps maximum savings, especially if tax savings today are significant.

Memorable Quote

"Sometimes...the 10% penalty isn't necessarily something that you should avoid at all costs."
— Katie Gattytosan [13:31]

3. Grad School Finances and the Comparison Trap

• Listener Q (Sarah): Managing money and avoiding feeling behind while pursuing a PhD and watching peers earn full salaries.
  • Adriana Adams [17:29]: "You are doing a lot right… What I would tell Sarah... she's doing wrong is comparing herself to other people."
    • Invest in your future; avoid constant comparison.
    • There’s no hidden financial trick for students—budget, save where you can, and recognize the investment in future earning potential.

4. Navigating Career Trade-offs and Purpose

• Listener Q (Paige): Balancing meaningful, lower-paid government work vs. making more in the private sector.
  • Adriana Adams [20:48]: "There's so much in financial planning that is about the trade-off… I need to get to the root of what Paige is really trying to accomplish here."
    • Explore what extra income would really buy—donating more, greater autonomy, etc.
    • Project into both life paths: Which would you regret more? Staying or leaving?
    • It’s normal to reevaluate, even if you “picked” your career at 18.

Memorable Quote

"It's okay to reevaluate these things and say, this actually isn't going to give me the life I want... It's okay to take the leap and do something different."
— Adriana Adams [28:38]

5. The (Weird) Social Realities of Inheritance and Changing Social Class

• Listener Q (Anonymous): Inheriting wealth and feeling alienated from peer group, struggling with privilege and new identity as landlord/investor.

  • Adriana Adams [34:37]: "This is so common... what I would tell [them] is... work with somebody that they can talk to about these things without judgment."
    • Class “jumps” happen via inheritance, business sales, and more.
    • Self-awareness is good, but don’t take on debilitating “bourgeois guilt.”
    • Give yourself credit for positive choices with inherited money.

• Katie [35:51]: Healthy to recognize privilege, but inheriting enough for a secure retirement does not make you a villain: “You’re not Elon Musk.”

6. Entrepreneurship: Trade-offs, Debt, and Autonomy

• Listener Q (Anonymous): Left stable $80k job to start a business, incurred debt, now at $120k income but feeling behind peers.

  • Adriana Adams [41:00]: "Most businesses take several years to turn into a success... There absolutely should be no regret, considering where you're at today."
    • Opportunity cost: Debt isn’t ideal, but now you’re positioned for upside.
    • Tactically, consider balance transfers or using cash reserves toward high-interest debt.
    • Calculate your “break even” income—the number that covers expenses, taxes, and desired savings.
    • Value your autonomy as part of your compensation—how much is it worth to be your own boss?

• Katie [43:59]: "No, you're not back where you started. You are ahead. ...All the benefit of what you're building is going to accrue to you."

  • “Stability” of W2 jobs can be overstated—they’re not always secure.
  • Don’t underestimate the freedom and flexibility you’ve gained.

Memorable Quote

"If you have a lot in savings and you have this number of 'this is the emergency fund that I can't go beneath' but we have this credit card debt... there is a situation in which it actually makes more sense to use some of that emergency fund to pay down that debt."
— Katie Gattytosan [47:12]

7. Bonus: Renting vs. Buying “Can of Worms”

• Adriana Adams [49:54]: Challenges the assumption that homeownership equals stability; sometimes renting means greater financial flexibility and security, especially for those with uncertain futures.

Notable Quotes & Moments

• [05:19] Adriana Adams: "There is no one size fits all... These are great kind of benchmarks, but they're not rules to live or die by."
• [09:22] Adriana Adams: "Uncertainty is your worst enemy."
• [17:29] Adriana Adams: "What I would tell Sarah that she's doing wrong is comparing herself to other people. Everyone's path looks so differently."
• [20:48] Adriana Adams: "So much in financial planning is about the trade-off... we have to get to the root of what you want."
• [28:38] Adriana Adams: "It's okay to reevaluate these things and say, this actually isn't going to give me the life I want."
• [34:37] Adriana Adams: "This is so common... class jump can happen in many ways. The important thing is to find someone you can talk to without judgment."
• [41:00] Adriana Adams: "Most businesses take several years to turn into a success... There absolutely should be no regret, considering where you're at today."
• [49:54] Adriana Adams: "Owning a home does not always mean more financial security... sometimes renting gives you more stability."

Timestamps for Key Segments

| Timestamp | Segment | |-----------|-------------------------------------------------------------------| | 05:19 | Outdated financial advice and personalized planning | | 09:22 | Navigating illness, risk, and future planning | | 17:29 | Grad student advice and comparison traps | | 20:48 | Career trade-offs, values, and the freedom vs. money dilemma | | 34:37 | Inheritance, class jumps, and financial identity | | 41:00 | Entrepreneurship, debt, and risk/reward reflections | | 49:54 | Renting vs. buying “can of worms” |

Episode Tone & Takeaways

The episode is warm, practical, and emotionally intelligent. Katie and Adriana emphasize that personal finance is profoundly personal—not just about dollars, but about values, timing, goals, and feelings. They offer reassurance, perspective, and actionable tactics for some of life’s thorniest financial questions.

If you’re seeking permission to break free from outdated advice, reimagine your financial path, or process tough feelings about money, this is required listening.