Master Your Money & Secure Financial Freedom Ft. Katy Song - Chief Financial Planner At Domain Money

Summary

The Skinny Confidential Him & Her Podcast: Master Your Money & Secure Financial Freedom

Release Date: January 17, 2025

Hosts: Lauryn Evarts Bosstick & Michael Bosstick
Guest: Katie Song, Chief Financial Planner at Domain Money

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Introduction

In the January 17, 2025 episode of The Skinny Confidential Him & Her Podcast, hosts Lauryn Evarts Bosstick and Michael Bosstick welcome Katie Song, a seasoned Certified Financial Planner at Domain Money. With over a decade of experience, Katie brings invaluable insights into personal finance, aimed at helping listeners achieve financial freedom and reduce money-related stress.

Guest Credentials

Katie Song introduces herself as a Certified Financial Planner since 2008, holding an MBA from UC Berkeley and a Bachelor’s in Global Economics. Prior to launching her own financial planning firm in 2011, she worked as an investment banker with major tech giants like Microsoft, Intel, and Oracle. Her focus lies in assisting families with young children and couples starting their financial journeys.

Common Financial Mistakes

Lauryn and Michael delve into the prevalent financial mistakes people make. Katie identifies shame and aversion as the biggest errors (03:28). She explains that regardless of income level—ranging from $150,000 to $6 million annually—individuals often feel ashamed for not mastering their finances sooner. Michael shares his personal regret of not understanding saving and investing during the first decade of his career, emphasizing the lack of financial education in traditional schooling (04:33).

The Importance of Financial Literacy

Katie underscores the scarcity of financial education, noting that personal finance is rarely taught holistically alongside mental, spiritual, and physical health (05:15). She advocates for outsourcing financial planning to professionals like herself to save time and reduce overwhelm, allowing individuals to focus on what truly matters to them.

Building a Strong Financial Foundation

The conversation shifts to actionable steps for listeners to improve their financial health:

1. Constructing a Balance Sheet: Katie advises listing all assets (liquid accounts, investments, property) and liabilities (mortgages, credit card debt, student loans) to determine net worth (09:33).

2. Assessing Cash Flow: Understanding income versus expenses is crucial. Katie categorizes expenses to identify areas for adjustment, such as excessive spending on services like Uber or DoorDash (06:29, 14:30).

3. Debt Management: Katie recommends consolidating high-interest debt using 0% APR balance transfer offers. She explains that transferring debt can alleviate the burden of compounding interest, providing breathing room to pay off the principal within the promotional period (26:32).

Saving and Investing Strategies

Katie emphasizes the power of compounding and the importance of starting early:

• Roth IRA: Open a Roth IRA and contribute consistently to take advantage of tax-free growth (15:10).
• Automatic Investing: Set up automatic transfers to brokerage accounts to ensure regular investment without manual intervention (28:59).
• Diversification: As clients mature financially, Katie advises diversifying investments and utilizing tax-advantaged accounts like backdoor Roth IRAs to optimize growth and savings (37:16).

Renting vs. Buying a Home

The debate between renting and buying is thoroughly discussed:

• Flexibility of Renting: Katie points out that renting offers significant flexibility, especially for those who anticipate moving within seven years. She advises against purchasing a home if the time horizon is short due to high transaction costs and potential market fluctuations (38:55, 42:03).

• Long-Term Benefits of Buying: For those planning to stay in one place for an extended period (seven to ten years), buying can be a beneficial investment, particularly in appreciating markets (43:14).

Teaching Children About Money

Lauryn inquires about educating children on financial matters. Katie emphasizes leading by example, showing children the value of hard work and mindful spending. She highlights the importance of avoiding a scarcity mentality and fostering an abundance mindset to ensure children understand the worth of money and responsible financial behavior (24:35, 32:43).

Client Success Stories

Katie shares a transformative client story involving a family with three young children struggling with high childcare costs and excessive spending on conveniences like Uber and DoorDash. By creating a clear cash flow analysis, Katie helped them realize their overspending patterns and set realistic financial goals, ultimately deciding to continue renting instead of purchasing a more expensive home that would strain their finances (44:00, 44:22).

Advice for Young Professionals

Michael and Lauryn seek Katie's guidance on foundational financial pillars for those early in their careers. Katie advises:

• Start Early: Even small, consistent investments harness the power of compounding (16:36).
• Create a Financial Plan: Develop a clear plan that includes saving, investing, and managing expenses.
• Seek Professional Help: Working with a financial planner can streamline the process and provide tailored strategies (15:10, 22:00).

Promoting Domain Money Services

Katie promotes Domain Money’s offerings, including a free 30-minute strategy session for listeners. She outlines their three-tiered financial planning services:

1. Essential Plan: For individuals beginning their financial journey, focusing on cash flow, investing, and basic insurance needs.
2. Strategic Plan: For families and couples with more complex financial situations, including home affordability, investment property considerations, and advanced tax planning.
3. Comprehensive Plan: An all-encompassing service that includes estate planning, insurance optimization, and complete financial management for established clients (50:59).

She also recommends her book, Financially Fearless: A Tech Mom's Guide to Money, available on Amazon, as a resource for listeners seeking further financial education (55:16).

Closing Remarks

The episode concludes with Lauryn and Michael reiterating the importance of financial planning and encouraging listeners to take advantage of Domain Money’s free strategy sessions. They emphasize that understanding and managing money effectively can lead to a stress-free, empowered life, enabling individuals to focus on what truly matters to them (56:31).

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Notable Quotes

• Katie Song (03:28): “Out right now, shame and aversion.”
• Michael Bostic (04:33): “For the first, probably 10 years of my career, I had no understanding of saving and investing and making money.”
• Lauren Everts (16:55): “It's like reps, reps, reps. It's the little things that really add up.”
• Katie Song (31:17): “I am a strong believer in energy... you have to have a positive mindset when it comes to your money.”
• Michael Bostic (22:00): “The earlier you can start with this topic and understanding, the more seamless your life's going to be.”

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Key Takeaways

1. Start Financial Planning Early: Harness the power of compounding by beginning to save and invest as soon as possible.
2. Understand Your Financial Health: Regularly assess your balance sheet and cash flow to stay on top of your financial situation.
3. Manage Debt Wisely: Consolidate high-interest debt to minimize financial strain and expedite debt repayment.
4. Choose Between Renting and Buying Carefully: Base your decision on your long-term plans and financial stability.
5. Educate the Next Generation: Lead by example in financial matters to instill responsible money habits in your children.
6. Seek Professional Guidance: Collaborate with financial planners to create tailored strategies that align with your life goals.

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For more personalized financial advice, consider booking a free 30-minute strategy session with Domain Money by visiting domainmoney.com/himandher. Additionally, Katie Song’s book, Financially Fearless: A Tech Mom's Guide to Money, is available on Amazon for those seeking deeper financial insights.

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This summary is designed to provide a comprehensive overview of the podcast episode for those who haven't listened, capturing all key discussions, insights, and actionable advice shared by Katie Song.

Transcript

[Michael Bostic]

The following podcast is a Dear Media Production. She's a lifestyle blogger extraordinaire.

[Katie Song]

Fantastic.

[Michael Bostic]

And he's a serial entrepreneur, a very smart cookie. And now Lauren Everts and Michael Bostic are bringing you along for the ride.

[Lauren Everts]

Get ready for some major realness.

[Michael Bostic]

Welcome to the Skinny Confidential him and her. Hello, everybody. Welcome back to the Skinny Confidential him and her show. Today we have Katie Song on the podcast. She has been a certified financial planner since 2008. She has an MBA from UC Berkeley, a Bachelor in global economics, a former investment banker working with the world's largest tech companies, including Microsoft, intel and Oracle. And now she's working with Domain Money. On this episode, we talk all about personal finances, how to work towards financial freedom, how to understand money better, things that you can do with your families right now so that you can put yourself in the best financial situation possible. Whether you love the topic of money or you hate it, it's a fact that personal finance touches everyone. It's one of the biggest sources of stress for people on all stages of life. I hope this episode helps everyone reach their financial goals, get a better understanding of money, eliminate stress around money, and it helps you to create the financial freedom that you've been looking for with that Katie song. Welcome to Skinny Confidential, him and her show. This is the Skinny Confidential him and Her.

[Lauren Everts]

I am so happy that there's someone to take this conversation off my back. I carry this conversation on my back every morning.

[Michael Bostic]

You don't carry.

[Lauren Everts]

I open my eyes and Michael wants to talk about stocks and Bitcoin and all this shit. And I'm like, I need a coffee and a workout and like, maybe talk to me after 10. So you guys will have so much to talk about.

[Michael Bostic]

Well, Katie, I'm excited to have you on the show. We met before and I think, you know, whenever we don't talk about money and personal finance so often on this show, but whenever we do, people always want to know more. And I was saying we haven't had someone with credentials like yours come on Social, maybe to start a little bit of a brief background on you, your credentials, why you are the authority to talk to us about this subject and we'll go from there.

[Katie Song]

Absolutely. So I am a certified financial planner since 2008. Before that, I was an investment banker. I worked with some of the biggest tech companies in the world. Intel, Microsoft, Oracle. When I started my family, when I had my daughter in 2007, I realized it was time for a pivot. I wanted to have control over my, my calendar, my schedule, I wanted to be there for my kids. I know that you've talked, Lauren, about kind of that. That tug of, you know, mom needs to work, but mom also wants to be there. So I didn't. I wanted to work for myself. So in 2011, I launched Katie Song Financial Planning. My focus has always been on families with young children and couples starting their lives together. Because in the financial services industry, no offense, Michael, about the investing, but it's all about investing. And that, to me, is just one little piece of the pie. There's a lot more storing that comes with talking about money. You know, what are your goals? What are your aspirations? Why are you doing this? Like, why are you working so hard? Is it to provide financial security for your family? And what financial planning does is it puts the numbers to those goals and takes a lot of the stress out of even thinking about money and talking about money.

[Lauren Everts]

When you look across the board with all the people that you've spoken to about money, what is the biggest mistake that you see people doing? Like, if you could just call it.

[Katie Song]

Out right now, Shame and aversion. Like, people, it seems to be there's this kind of bell curve. The more money you make, the more shame you feel for not feeling like you figured it out yet. So I have some clients that make like 150,000 and some that make $6 million a year. And as you kind of go up that food chain, the shame actually becomes even greater because you feel like you should have figured this shit out.

[Michael Bostic]

Yeah, I think when we first sat down, I don't even remember I said one of the things that I've figured out in life, and I don't say this to Bragg, I just. I've had a skill that I've figured out how to make and generate an income. But for the first, probably 10 years of my career, I had no understanding of saving and investing and making money. So I look back and I'm like, wow, I was doing well and making money, but I had nothing to show for it. At the end of every year, I just. I had no discipline. I had no structure. And I think so many people get so frustrated. And there's that meme that's on the Internet where it's like, I'd like to learn how to file my tax returns. And the teacher's like, no, we're going to learn about Magma today. And I think a lot of us are in that situation where you go through school and you don't necessarily dive into this subject as much as maybe we should. And so there's this, you know, there's this pressure to go out into the world and make an income and make a living, but they don't really teach you how to keep it and what to do with it. And so even for me, I, I remember sitting at one point and telling Lauren, like, I don't know anything about personal finance, right? And so I dove into like seven or eight books to try to figure it out for myself. Unfortunately, have, have figured out a lot of it since then. But I think back on all of those years of the wasted potential on saving and investing a lot of it when I was very young that I and I could much further now. So I think maybe to start, why do people struggle so much with this topic and why is it not taught more?

[Katie Song]

I think that there's not a whole lot of financial literacy. You know, definitely in high school, it's not taught. The financial components of your life aren't looked at holistically. So you guys talk a lot about lifestyle, everything from like your mental health, your spiritual health, your physical health. The fourth leg of that table is your financial health. And what I find is that whatever you're weaker in, you're going to avoid, right? And unlike your physical health, where you need consistency, you need consistency when it comes to your money, but it's not a daily practice. So I think it's very overwhelming to say I'm going to dive in and I'm going to read 10 books, I'm going to figure it out myself. And that's where the whole financial planning profession and what I do comes in to save the day. So instead of you having to spend 60 hours trying to self learn and self teach yourself and like figure it all out on your own, you outsource five hours of your time to me and we figure it all out together and set you on the right path. So that's where reaching out for financial planning help makes a ton of sense. If you want to kind of get a leg up and kind of up level your game.

[Lauren Everts]

What are some tweaks that you do that are pretty common when you're financial planning with someone?

[Katie Song]

I mean, there are really three things that you can control. You can control how much money you make, how much money you spend in tax planning. None of it's sexy, right? It's not, it's not like, oh, it's not sexy. Terrible, right?

[Lauren Everts]

I mean, maybe how much money you make.

[Katie Song]

And it's amazing how many people I work with. So I've worked with 900 different families. So I'VE created that many plans in my career, which is a lot in the financial planning world. A lot of financial advisors will work with maybe a hundred people in their entire career. So I'm already at 900. So I have a lot of experience and a lot of stories. I've literally seen everything. So getting back to the things that you can control. So how much money you earn, like your human capital, in my view, is your biggest asset. So if you're sitting in a dead end job and you're not getting pay raises for years, you've lost out on that power of compounding your biggest asset, which is you. So I help my clients talk about tweaking. It's we get to the point of what is your break even point? Like what do you need to be earning to live the life that you want to lead? And when you figure, like when we come back with that number, let's say that you're making 150,000. And it turns out if you made 180, you could do everything you want to do. There's so much more motivation for you to consider asking for a promotion, doing a side hustle, starting your own business. If you don't have those numbers, you're never going to have the motivation to make a change.

[Lauren Everts]

Is there a different, when you talk to people, is there different categories across the board of what people consider poor, rich and wealthy? And what do you consider poor, rich and wealthy?

[Katie Song]

So to me, the definition of wealth is having complete control over my time.

[Lauren Everts]

Yes, I agree with you.

[Katie Song]

Okay, so it's not a number per se. That's why I started my business, because I wanted complete control over my time. It enabled me to have that balance of being present for my kid. I have, my daughter is 17 and a half. She's applying to college.

[Lauren Everts]

I thought you were going to say seven.

[Katie Song]

No, 17. And then son's in eighth grade, he's 14. And you can see the power of compounding in their behaviors and the way that they are from kind of the example that you set for your kids. So I definitely think that, you know, kind of owning, owning your journey and owning yourself and understanding kind of where you've been financially and setting that role model for your kids is really important.

[Michael Bostic]

I want to spend almost no time on this episode talking about how to make money because there's so many episodes that we've done great branding, marketing. You know, the side hustle, like the whole podcast is like how to build a career. Right. And how to take care of yourself. So I want to do this episode tailored to say, somebody now they've kind of figured out what they're doing for a career or a job. They have a little bit of income, but they have no idea what to do with their money. You know, maybe they're not. They're not saving yet, they're not investing. Where do you get someone to start when you sit down and make a plan with them? And let's take the, like, maybe the average person, maybe they have a little bit of credit card debt, maybe some student loans. Like, where do you say, like, okay, we're gonna look at your financial well being. We're gonna make a plan.

[Katie Song]

So the start for everybody is building the balance sheet just like you would for your business. So, like, what are all your liquid accounts? You're checking your savings. Then I move down to kind of taxable brokerage, like stuff you can take out to buy a car, buy a house, and then move down to retirement. Add on, you know, if you have a house, if you have, you know, personal belongings, like a motorcycle collection or guitar collection or, you know, lots of handbags, potentially add all those up and that's your assets. And then we have to add up all your liabilities. So do you have a mortgage? Do you have credit card debt? Do you have student debt? And so the mathematical equation is assets minus liabilities equals your net worth. So that net worth is your starting position. The goal of being in your 20s, 30s, 40s, and your 50s is to grow that number over time. We don't have a starting point. We don't know if you're making any progress. So I usually see that number go up between 5 and 10% per year. That's kind of like an organic cadence that you should be paying attention to. If you're not making that 5 to 10% number and improving your net worth year over year, you need to look to see why. Like, you know, there are three main reasons that I've seen people's net worth not impr. Not increase at that rate. One would be what happened in November 2021? The market crashed. 30% down. You can't do anything about that. You don't have control over it. The other is prolonged unemployment. So I live in San Francisco. When tech companies lay off a ton of people, it's really hard to find your next job because you've got a lot of really qualified people vying for fewer positions. And then the third thing that I've seen really post Covid has been we started a renovation project. It was supposed to be 300. It ended up being 600. So those are, like, the three main reasons I've seen in the last, like, eight years of why people's net worth wouldn't improve. So that's like, step one is like, where are you today? And how do you progress and looking at that annually? I mean, Lauren, you don't have to look at this every day. You definitely don't. And you don't need to talk about it every day. But if somebody in the relationship is like, that's very common in relationships. Or somebody's super gung ho and somebody else is like, fucking talk to me about this, like, two times a year. Right? Like, that's good. And I talk to some of my clients. We do this annually.

[Michael Bostic]

Lauren comes to me and says, I think someone stole my credit card every single month. I'm like, nope, Every single month. It was you. Every single time.

[Lauren Everts]

You know what I just saw? This is the perfect episode to announce this on. Michael got me a beautiful anniversary gift. It's gorgeous. And I was just on the phone. Katie will be happy with the person that I go over my AMEX spell with. And at the top is the gift that Michael gave me. Michael used my credit card to get my anniversary gift.

[Michael Bostic]

Yeah, I used it. I used. I used one of these things that.

[Lauren Everts]

Is called someone stealing my credit card and then rebranding it as a gift for me.

[Michael Bostic]

I don't know what you saw, because I don't know if actually you saw the right thing. Now I'm worried that you saw the Christmas thing. But anyways.

[Katie Song]

Oh, is it a joint card?

[Michael Bostic]

That's joint.

[Katie Song]

Okay. I don't like claims to have joint.

[Lauren Everts]

It's a joint card.

[Katie Song]

Just so you know. But I don't like claims to have joint cards, because if he messes up, then he screws up your credit card score.

[Lauren Everts]

So.

[Katie Song]

Always have.

[Lauren Everts]

I'm not worried about him messing up. He should worry about me messing up.

[Michael Bostic]

Katie, at this point, we. I mean, we've been together so long.

[Katie Song]

Yeah. What anniversary is it?

[Lauren Everts]

What number we. Actually, it's. It's. It was number eight.

[Michael Bostic]

No, we don't have any. I mean, at this point. It's funny because. And I'm not gonna get into this topic either, because this is a heavy topic of prenup. But we've basically. We've been together since we were 20 years old. So, like, everything we have is together.

[Lauren Everts]

Yeah, We. We have managed, though, to not make money an issue in our relationship, even when we had none in the beginning.

[Michael Bostic]

Well, this is. Maybe we've Talked about this with couples before too. This is. We decided just as a general thing for our relationship that like, basically it's all one thing, all together, because that's.

[Lauren Everts]

What works for us. Everyone's.

[Michael Bostic]

Yeah, I mean, everybody's different and obviously we've been building together. But I think, like, what's that quote?

[Lauren Everts]

What's. What's his is mine and what's mine is mine. Yeah, that's how I think about it.

[Katie Song]

But anyways, all women should.

[Michael Bostic]

Yeah. I think, like, for us, for it to not be an issue, we just look at it as like, if I make a dollar, it's our dollar. If she makes a dollar, it's our. It's easier that way. I know some people, like, kind divvy up.

[Katie Song]

I mean, so even clients that I have that keep separate accounts and keep separate cards and keep it all separate, we still have to aggregate it as a family to be like, okay, so what does it really take to live your life? How much are you spending? So, like, getting to the next step of what I want. So construct your balance sheet. The next thing is really cash flow. So we're not going to talk about earning more money. Right. But what we need to see is what's going out the door and what does it cost to live your life. I mean, when you've got two kids under the age of five, it is the cash hemorrhaging years. Like, these are the years that childcare is really expensive. You're also supposed to be buying a house, renovating a bathroom, taking a vacation to Nantucket, you know, like doing some fun stuff like that. And so I help my clients. So I focused on this area is I help my clients figure out how do we do it all and how do we still save for college, get debt free, all those things.

[Michael Bostic]

So I want to talk though, and I would argue, listen, I know what people are going to say. Lauren and I have been fortunate that we've been working and we've now been successful. Successful for a while. I mean, we've been building this show for a decade and before that today. So it's. We've learned a lot. But I, I think back on the early years, you know, when she was bartending and when she was putting herself through college and doing the blog. And when I was starting out and we were, we. And we didn't have anything, we were trying to figure it out for somebody who's just getting going, if you could coach them and say, listen, I want to set you up with some foundational pillars that you can carry forward year after year so that you can save, invest. Like, how do you. How do you coach those kind of people and structure, you know, their financial planning?

[Katie Song]

Well, so, for example, we were at. We stayed at the Fairmont while we were here in Austin, and the guy who, you know, the bellhop guy, or helping us get into the car, he said, I'm studying finance. What are some tips that you give me? I'm 24, all right, so maybe a little bit younger than my general audience. And I said, you know, know your cash flow, know how much money you're spending, and open up a Roth ira. All right, Just start putting in money. And he. He kind of knew the amounts. He's like, yeah, I think I can put in 6,000. I'm like, well, it's actually seven. But you want to try to put in as much as you can. You're 24. Time is on your side. So I think that it was in your episode with your personal trainer, who. Which I thought was brilliant, but it's kind of that consistency and the power of compounding. So, like, if you start working out in your 20s, you have a lot of time to build muscle memory and to make sure that you can stay fit throughout your life. It's the same thing with money, right? So if you're in your 20s and you're just starting out, you don't have to devour seven bucks and become a master of day trading. But even if you open up a Schwab Fidelity, a Vanguard account, and you start putting 10 bucks and just start investing in the S P, you will witness the power of compounding, and you don't even have to work for it. So, like, one of the things that, you know, makes rich people richer is their money's making them money. But if you don't ever start, and you don't ever start the power of compounding, you're never going to get to that point.

[Lauren Everts]

I try to look at everything in my life as reps, like you just said. And it's like reading. People are like, how do you have time to read? You have 10 minutes a day. If you read for 10 minutes a day, every single day, you read more than 90% of people, I think. And money's the same way. It's like reps, reps, reps. It's the little things that really add up.

[Michael Bostic]

I have very few regrets in my life. I just don't. I try to be someone that looks forward and not back, but one of the only regrets I have is that I didn't learn about this and compounding earlier because like I said, there was 10 years wasted in income producing years that I was not investing or saving anything. So I tell anyone that will listen and especially our sisters and our family members that are younger, like even if it's a hundred bucks a month or 50 bucks a month or something, $10 a week, whatever it is, because, and I was telling our younger sister, Mimi Lauren sister, like if you're 20 years old and you can even figure a way to squirrel away 500 to 1,000 bucks extra, you know, a quarter, and you do that for the next 30 years, like you'll be a millionaire by the time you're 160, you'll never have.

[Katie Song]

To say the math works.

[Michael Bostic]

Yes, it's crazy when you hear those numbers and you just say like, hey, $1,000. I mean, if you could do $1,000 a quarter or $2,000 a quarter, and you do that for 35 years, you're set for life.

[Katie Song]

So some of my clients that when we first start out, they're starting with like 100 bucks a week, you know, like they're trying to pay down their student loan debt. They're, you know, wanting to save for a house but also balance out, you know, living in expensive, you know, if they live in New York or LA or you know, wherever they might live. And then when they get to their 30s, they're in this cash hemorrhaging phase, you know, where they're spending all this money on childcare. And then you get to a point where that goes down. Like your kids go to hopefully public school. If, if you can be in a nice neighborhood and, and have that happen. And then you start setting aside the thousand bucks, the seven. I mean, like, I've got some clients, they net cash flow seven grand a month. And watching the flexibility and opportunity that gives them later in life, I mean, they're, I can't tell you how many people in their mid-40s come to me and they're asking, what is enough? How long do I have to do this for? Like, I'm tired, I don't, I don't want to do this anymore. And if you're starting in your 40s, it's never too late to start. It's just like working out. But it's a lot harder to find flexibility and opportunities. And you just like, if you can do that in your 20s and 30s and set it on autopilot and I mean, I'm a financial planner. I talk about money all day long. Do you know how Often I look at my stuff, I look at my cash flow once a month. I mean I know what I spent. Right. I've been doing this long time. I look at my investments once a year.

[Lauren Everts]

That sounds fun.

[Katie Song]

Yeah, I like that.

[Lauren Everts]

Well, you know, why are there so many 60 plus year olds that are broke? Because this is, I've talked to a lot of different walks of life and there's something about 60 plus in this climate Right now they're broke and I've, I've noticed it. What is that from?

[Katie Song]

So I think that there are kind of two things. Like a lot of my clients come to me and they're first generation professionals. So like their parents who are in the six their 60s don't know anything about money. Like they don't have a, they may not even have a savings account. Like they've got a checking account. Maybe they live, they, most of them will not most of them. But some of my clients parents are living paycheck to paycheck. And then my client, this generation is petrified about having to support their parents. You know, am I going to have to pay my mom's mortgage? Is she going to have to come live with us? Like am I going to have to pay for her health insurance? So these are the kind of worries that people have. So why are they broke? I mean some people, you know, they just didn't ever have the financial acumen or even their parents generation to teach them how to take care of themselves this way.

[Lauren Everts]

So if you were 60 plus and you were broke in this like right now, what are you doing?

[Katie Song]

Well, it gives me heart palpitations first of all. Like I was saying before, like you, you will have to keep working. Your Social Security when you take it will not be enough to live your life and you better live in a low cost area. Like maybe you're moving to Alabama, but you're not going to be living in New York City. And maybe if you have a rent control and it's really good, part of it is lifestyle, lifestyle creep. Like people, it's the hedonic treadmill. Like I don't know if you've heard it, like think about the hamster wheel. So the hedonic treadmill is like the more money you make, the more money you spend, the more money making more money you spend. But there's this like degree of happiness that if you make about $175,000, any dollar you make more than that actually has diminishing returns of happiness.

[Michael Bostic]

Yeah.

[Katie Song]

And so those 60 year old broke people have never gotten to the 175,000. Like they've never probably really realized their earning potential. They probably, you know, I mean everybody has their own story. Right?

[Michael Bostic]

I know we have some 60 year old plus listeners and viewers and I empathize with that situation. But I do want to keep this focus and again I just want to stay like away from how to make money because we've talked about it so much. I do think those stories about people that get older and end up in those situations should be cautionary tales younger because I think there's this situation where there's delayed gratification that people have, they struggle with.

[Katie Song]

Yeah.

[Michael Bostic]

And what I try to tell our siblings all the time, and I guess I would tell this, any of our listeners that are interested in this topic is you're not. It's not easy to do it later, but it's very easy to do it early, if that makes sense.

[Katie Song]

Yes.

[Michael Bostic]

Like you don't have, like we now have children and they're in school and we have to have childcare and we have all these things into your point, like more money's going out the door than ever before at this point of our life because we have to take care of them when we have a house and all these things. But when I was in my 20s and Lauren, like all we had to do was like pay our rent and like our meals and entertainment and stuff that we're doing. But we had really no oblig, like if we went broke it was okay. We, you know, you're young at home.

[Katie Song]

For a little bit.

[Michael Bostic]

Yeah, whatever. But so I would say like young people just think they have all the time in the world, but this is the time you should take those extra dollars and throw them. Because the compounding adds up so much that you could completely avoid being broke later in life just by starting a.

[Katie Song]

Little bit now I find though that, you know, I'm 49, so I'm, you know, Gen X. I think that the younger generation has so much more access to content and information and shows like this that they're actually savvier than those 60 year olds were when they were 20. Right. Like they just have tremendous more and that and they're more mature. So I find that people are coming to me kind of with their shit already figured out and they're like, hey, I already have my betterment account opened up. I'm already automatically investing. I want you to teach me more, Katie. Teach me like why I should invest here. Invests here. Should I buy a rental property? Should that Be a goal of mine. In your 30s, we're kind of more finely tuning. Like, you're spending more money like you said, but you also should be earning more. So we want to make sure that your money is going into the right type of accounts because get back to the unsexy things like tax planning. I want to make sure that my clients are taking advantage of every opportunity to pay the least amount of taxes and make sure that things can defer and grow tax free as much as possible. And again, that gets back to kind of time is on your side and in your 40s. That's when I really focus with my clients on making sure you're better diversified. Are you on track for your goals? If you're ahead of schedule, do you have other goals that you want to do? Do you want to try to retire early? Do you want to buy an investment property? Do you want to buy a second house, whatever it might be? And then in your 50s, I mean, if you haven't planned yet, it's never too late, like I was saying before. But you need to really put the pedal to the metal and really focus on optimizing how much you can save. Because if you don't do it in your 50s, you don't want to be fucked when you're 60 and realize that you're going to have to work till you're 80 if you don't want to. There are some people that love working and they're going to work until they're 80.

[Michael Bostic]

Yeah. I just look at you. I look at it at that age. Hopefully you have the optionality to do it because you want to do it, not because you're forced to do it.

[Katie Song]

Yeah.

[Lauren Everts]

How did you teach your children about money? Was there like a book? A piggy bank? Did you get Monopoly money? What did you do?

[Katie Song]

I think that when your kids see you working hard and they see you happy about working hard, they realize the value of working hard themselves. So if you're miserable at your job and you come back every day from work and you are grumpy and you talk shit about your work, your kids are not gonna value that. They're gonna be like, that looks like a waste of time and like really unpleasant. So I think that first of all, it's kind of loving what you do or at least liking what you do. I think that also the value of a dollar, which is if you give your kids everything and don't teach them about, you know, the price of what things cost, I think you're doing them a disservice I mean, I loved. I think it was Dr. Becky that you guys had on.

[Michael Bostic]

She's great.

[Katie Song]

Yeah, she was. I felt like I learned so much about, like, what a boundary was. I was like, huh.

[Michael Bostic]

I went back and listened to the episode again. Even though I did the episode with her, I went back and listened and.

[Katie Song]

I feel like, even when she was talking about, like, having the milkshake for breakfast or having ice cream for breakfast and kind of, you know, it's. It's teaching your kids that, you know, buying an Aviator Nation 200 sweatshirt that costs $200 and you could buy one at Old Navy or go thrifting and it costs you five. So let's think about where we want to spend our money.

[Michael Bostic]

Although we are friends with Paige and you should buy Aviator Nation.

[Katie Song]

It's beautiful stuff. It's absolutely beautiful stuff. I'm just not sure how many 5.

[Lauren Everts]

Durable I've ever worn.

[Katie Song]

They're so pretty.

[Lauren Everts]

Truly those comfortable rule.

[Katie Song]

Yeah.

[Michael Bostic]

So let's, let's. Okay. When it comes.

[Katie Song]

I should pick a different brand. Sorry.

[Michael Bostic]

It's okay. When it comes to debt.

[Katie Song]

Yeah.

[Michael Bostic]

Credit cards, student loans. Say someone's mid-20s and they're. And they have some debt and they're trying to figure out how to tackle it. Where do you. How do you coach people on how to think about debt?

[Katie Song]

So it's this, the first step is what's the source of the debt? Is it overspending? So you have to live within your means. So even if you've accumulated debt because maybe you were unemployed for a while or there was a medical issue, or you were being stupid and you bought a car that was too expensive and now you've got $20,000 in debt and you're like, fuck, how am I going to pay for this? We have to address the source of it first so we can make sure it's not going to be a recurring pattern. And then we want to alleviate the high price of that debt. So, like, if you have a 2127% credit card, the interest and finance charges alone will make it so you will never get ahead. So if you go on like a website like Nerd Wallet, you're going to see there is 0% APR. Balance transfer offers consolidate your debt. Like, alleviate the pressure of that compounding interest and finance charges so that you can at least give yourself some breathing room.

[Michael Bostic]

So explain that a little bit more. What someone can do, they could take, you know, say they have two credit cards that they're carrying. They're. They're paying you know, small payments every month, and they're carrying all that interest and they want to clear it. What. What would you tell them to do?

[Katie Song]

Yeah, so I would find a 0% APR card, apply for it. They tend to lowball you with the credit limit they're going to give you. They're like, okay, here's five grand, here's seven grand. Here's a tip. Just call the credit card company and say, I want 10 grand, I want 15 grand. Try to get as much as you can to transfer your high interest debt to the 0% card. The goal is really if the promotional period of that card, so you transfer it, there's always a transfer fee. There's going to be like a 3% charge. No matter what, it's going to be less than you're paying in finance charges and interest charges. So it's going to be worth it.

[Michael Bostic]

So if you had 5,000 in credit card debt and you were carrying all this interest, you could, you could essentially transfer this to a new credit lender. But they're going to charge you 0%, and then you're not fighting against the interest that's being accrued against you.

[Katie Song]

Yeah. And so let's say the promotional period's 15 months or 18 months. You're going to divide the 15, the 5,000 by whatever the promotional period is, and that's your goal to pay that off during that promotional period. So it just gives you a chance to. Instead of your money just going to feed that high interest, you're actually paying back the principal.

[Michael Bostic]

Okay. And now say that you've got to a place where, you know, fast forward 15 months or 12 months or however long it takes, you've cleared your debt, and you're saying, okay, I want to start saving. Where do you start with saving? And. And how do you coach people and. And how much to save?

[Katie Song]

Yeah. So the first step is always to open the account. Like, you can't start automatically saving or investing if you don't have the vessel, like, sent out there into the universe for you to have the money transferred into. And like, money, my feeling is money is supposed to flow. So a lot of times people are like, ooh, I'm gonna hold on to this like a squirrel. Like, these are nuts. I'm keeping my savings account. And they're not earning any interest. Like, we want to do something with your money. We want your money to earn you money. So the first step is to open the account. People get very paralyzed with indecision and fear even when it comes to that. So just so your listeners know there's really no difference between Schwab, Fidelity, Vanguard, Betterment, Wealthfront. They're all the same. It is a commodity. You open up a brokerage account. So it then gets confusing. Like, what kind of account do I open? So you want to open up an individual brokerage account that's just a taxable brokerage account, and you can take the money out at any time. That's the type of account I want most people to set up. And then all these platforms have automatic investing for free. So you want to set up that automatic investing. It'll come out of your checking account or your Savings account again. $10 a month, $20, 50. Yep.

[Michael Bostic]

What we've done and what we did in the early days, now it's a little different. But what I found useful is if you just take a certain percentage of it and you pretend you never get it, you never put it in your checking account. You don't put it even in your savings account. It just goes into that savings account, make it hard to access. Meaning, like, for us, the way that I would have to access that is I would have to physically go into the bank and get a check. So, like, every time I would think about, like, oh, that's a pain in the ass, and so you just leave it there. I think the. The easier access you have to it or the more that it hits your personal checking account, the more likely you are to spend it. But if you just put it off to the side, whether it's 200 bucks, 300 bucks, that whatever you can save, I found that to be useful.

[Lauren Everts]

I agree this is maybe a weird question, but I am someone that believes that your thoughts create your future. And I remember being really broke, like, no money, when I was bartending. And I remember deciding to. Whenever I thought about money, to envision it growing on trees. So I remember being, like 21 years old, and anytime my brain would go to money, I would automatically think about it growing on trees. Do you believe that there's something sort of behind that, that your thought around money helps you make it?

[Katie Song]

I am a strong believer in energy. Like, that's a big part of my life. That's part of, like, my spirituality. You know, when we talk about the four table legs again? And I think that you have to have a positive mindset when it comes to your money. And that's where a lot of people get stuck. They come into adulthood with these stories from their parents. These night, we're like, oh, my God, we were poor then, we were rich then we were poor, then we were rich. I have whiplash. I spend whatever I have because I didn't. I don't know if I'm going to have it anymore. So as an adult, you can choose to change your story to reframe it. And part of that is deciding, you know, like, what. Who do I want to be when I grow up? Do I want to be, like, the nervous person who's 60 and broke, or do I want to kind of manifest having that flexibility and those options? And even just to me, sending that message out to the universe helps you take that first step forward.

[Lauren Everts]

I also think what you talked about with flow, I believe, like, what you give out comes back to you too, if you're constantly, like, stowing away your money like a squirrel. I mean, I knew someone, an ex boyfriend of mine. His parents were so cheap. Everything was. The whole conversation around, everything from how much an onion was at the grocery store to how much a car was, was about the money. That there was, like this scarcity mentality. Like, there wasn't enough. And it really projected onto him. I mean, I remember going out to dinner and he was asking the waiter how much the amuse bouche was. Oh, like, it was just, like, very.

[Katie Song]

Like, it was free.

[Lauren Everts]

And I think, like, there was just, like, it. You. It does rub off on you. So I think it is important to examine when money comes into your head, what are you thinking? Are you thinking there's not enough? Or are you thinking that there's so much abundance?

[Katie Song]

Well, the financial services industry is based off of fear. Like, every marketing you say is about the mistakes you're going to make and how you're going to fuck it up. And you better give your money for assets under management to some dude to, like, you know, manage it for you. And you can't possibly, Lauren, know what you're doing. Right? So I've always approached. I've always been a registered investment advisor, but I never have managed money. So I give investment advice as part of my flat fee. So I'm giving kind of holistic. Like, here's everything from your balance sheet to your cash flow to how much insurance you should have to how much you should put in your brokerage account. How much did you spend on a house? What do you need to be saving for college and retirement? And I've always taken an approach from abundance. And I think that's why I attract the clients that I attract totally because they're looking to change their lives. Like, my whole goal. And I say this in the book, that I wrote, which is like your time is finite and so your money isn't. You can always make more money, you can always spend less money. But we want to make the most of your time. So if working with a financial planner is going to save 60 hours of you self educating into this, then it's worth it. Right? Like we want to make the most of the time that you have on this planet so that you can live the life that you truly want to live. And like getting back to like couples and how they, everybody is different in a couple. Like they're no, there's no one couple I've met where they both are just like, yeah, I love talking about money, let's do this all day long. It just doesn't happen. But when you have open communication about this, you have better sex. Like, I mean it comes down to like, you are able to be more intimate because you don't have that friction in talking about this one topic. And it's a huge cause of divorce.

[Michael Bostic]

Yeah, I was going to bring that up because I was reading a stat one time and they were saying one of the biggest reasons people get divorced is because of financial reasons. Right. And stress around money. And I. And you nailed something there when you were just talking about like and, and I think people should think about this. Like you can always make more money. There's always opportunity. And I'm not saying it's easy to make money, but that possibility is out there. You can't get back your time. Right. And so that's, that's fine, it's your point. But I think that there's this thing, like I have some friends that constantly are talking about how bad they are at dating and how bad their relationships. And I'm like, yeah, you're terrible. Like they really are. And I'm like, but you also reinforcing that to yourself all the time. And so you're putting that out there. So every time you start to go on a date, you're starting it with, oh, I'm bad at this and I'm not good at being in a relationship. And then that's exactly how that manifests. And I think the same thing around money is you will say, oh, I'm bad with money or I'm bad at saving or I don't. And like, you can change that. In my case, I went down the rabbit hole and read all the books. But you can work with someone like yourself and actually start to say, actually I'm good with money or I'm improving. And I think when you make that flip. It's going to completely change the way that you view, have save all the things around. Finance. Finance. It's just that if you keep telling yourself, I'm bad with this or I'm not good at it, or nobody ever taught me, like, you're just going to stay that way.

[Katie Song]

Well, the one good thing about stress that I think is that it causes pain. And when you're in pain, you're more likely to change, right? So if you're stressed about money, that's okay. And if it's causing you pain, it's your opportunity to change. And usually by the time people call me, the decision's already been made. Like, once you place the phone call, you book the consultation, you're ready for change. And those are the type of people that I like to work with because I can make the most impact. And the impact from financial planning is immediate. Like, people feel an immediate sense of relief because somebody else is there to help carry the load and understand them and listen to them. And that's really the first step. Again, like, once you get a plan, you know what your goals are. You start on that pathway to either financial literacy or just knowing that somebody's got your back and you meet with them annually to make sure you're making the progress you want to be making, your life is better.

[Michael Bostic]

Do you find when you sit down with people that they struggle to articulate exactly how much money they even think they should have or save? Meaning, like, oh, yeah, I talk to people, especially young people, and say, well, what do you want to do? Like, well, I want to make $10 million. And I said, well, why? For what? And it's like, these people just pull numbers out of the air. What I found to be helpful is like getting so specific with what your numbers are. Do you, do you help people work through that?

[Katie Song]

Oh, I. I am as delineated as you can possibly be. So when it comes to kind of, what do you need for your financial independence? What do you need for retirement? A lot of people my age are looking for work optionality, like, what does it take to get me to, like, where I don't have to work for somebody else anymore, or I can just consult if I want to. So I tell them specifically what that number is in today's dollars, and if they're there, congratulations. I'm so happy for you. You've achieved this. And if they're not, I tell them specifically how much they need to be saving every year and then get even more granular into, like, okay, which account, should it go into, you know, which is the most tax effective? Do you need to start diversifying from your 401k into a backdoor Roth IRA so that when you are retired, you've got different pockets of money to pull from? So, like, as you get older, it's even more important to start really looking the diversification, not just of investments, but of the types of accounts and pockets of money you have to pull from.

[Michael Bostic]

And is that number different for most? Like, I'm assuming your number, your number, everyone's numbers kind of different, depending on what they want to do.

[Katie Song]

It comes down to lifestyle, you know, so, you know, what are you spending? What is your life going to look like? You know, what does it look like today? I mean, the big driver is what does it look like today? Hopefully you're not still paying a mortgage in 30 years. Like, the goal is to have that house paid off. And that's usually everybody's biggest expense is like mortgage, property taxes, not going anywhere.

[Michael Bostic]

How do you feel about renting versus buying? This is a big debate that people have online.

[Katie Song]

Yeah. I find that my millennial clients are less obsessed with the idea of homeownership. I'm not obsessed with it.

[Lauren Everts]

I want, I want fluidity and uncertainty in my life. I don't want to, I don't want to put myself. I mean, it's just like, I don't want to live in a house for 30 years. That doesn't, but that's me. I want to be able to move around and be malleable.

[Katie Song]

There's a huge flexibility in renting. But I would say that, like, so I'm a homeowner. My husband, we've been married for 21 years. We bought our house in 2005. In 2017, we moved to Bordeaux, France.

[Lauren Everts]

Like, how fun is that? It was great. By the way. I, I, I, I love buying. I'm just saying, like, to stay there.

[Katie Song]

Forever, I'm, I'm with you. I can't stay in the same place. I mean, eight years to me is a freaking eternity. Like, that is. Yeah. So I like to kind of move around every four years. It's harder with kids. Right. So my daughter was starting middle school, my son was in second grade, and we moved to Bordeaux, France.

[Lauren Everts]

How fun.

[Katie Song]

I spoke French. Nobody else did.

[Lauren Everts]

Love it.

[Katie Song]

So now my kids are fluent. My husband does pretty well. And we loved it. It was the best three years.

[Lauren Everts]

How long did it take for your kids to be fluent?

[Katie Song]

I mean, my daughter was in French school eight hours a day. So I mean, by the end of.

[Lauren Everts]

The first year, we're moving to France.

[Katie Song]

Yeah, that sounds good. I don't know.

[Michael Bostic]

Their tax rate's about 60% now, so I don't know about that.

[Katie Song]

Well, we didn't have to pay French taxes to get the long stay visitor visa. You have to claim to, like, not take a job from a French person. So I just ran my business remotely.

[Lauren Everts]

Yeah, I do love France.

[Michael Bostic]

I just don't love their tax rate.

[Katie Song]

What I was getting at though is that we rented our house out. I mean, it was. We rented out for $10,000 a month. So the three years that we were in Bordeaux, my husband didn't have to work and I love my job, so I worked. But we traveled and the kids learned a language and you meet other people who are looking for adventure. So we made these amazing friends. You know, we go, let's go rent a castle. Let's go kayaking into Brnik. Like. And it was Covid. It eventually became Covid. And there were no Americans and nobody from Asia. So we had like full reign of the continent. It was amazing.

[Lauren Everts]

That sounds absolutely amazing and how magical. That's a rich life to me. Like the fact that your husband didn't have to work. You guys did the home situation where.

[Michael Bostic]

You took me to France. Lauren, let me just chill out for a while.

[Lauren Everts]

I'm ready to go.

[Michael Bostic]

What's wrong with you financially, though? Do you have a strong perspective on renting versus buying? Because people get up in arms about this topic and I would caveat by saying, Lauren and I rented for as long as possible. And then when we had kids and settled down, we bought because kids.

[Lauren Everts]

Don't you think that people are projecting though, what, what they're doing? Meaning, like if they're, if they bought a home, they're going to project about, about buying a home because they, they're in a way scared that they bought the home. Does that make sense?

[Michael Bostic]

I personally, and then you may disagree with this, I personally put my home as a liability and not an asset. And I'll say why? I believe that rent is the most you'll pay and a mortgage is the least you'll pay. Meaning, like I've been a homeowner and I've got a great interest rate and all that, but there's always something breaking. There's always some maintenance thing. There's always some upkeep, there's the property tax, all this stuff.

[Lauren Everts]

There's always someone designing a different room.

[Michael Bostic]

If you can sit in it for seven to 10 to 15 years, likely you're going to get some appreciation and do well. But a lot of people, if they can't afford to sit in it for that long, a mortgage could be a real liability.

[Katie Song]

Yeah. So from a time perspective, don't ever think about buying real estate if you're not going to stay in it for seven years. So in my opinion, the idea of the starter home is dead. Like, real estate's too expensive, mortgage rates suck, and it's just too much to get in. And from a, you know, a real estate transaction cost, you're going to not make a single penny if you're not going to stay in that house five to seven years. So if your time horizon's less than that, don't make that mistake. Absolutely, do not make that mistake. If, I mean, there, I've got clients and my husband's this way. Like, he loves our house. He fiddles and battles with all the things and, you know, he grows his garden and stuff like that. Like, I'm like you, Lauren. Like, I'd be perfectly happy. Like, let's go spend the summer in Portugal. Let's go here. And he's like, oh, what about the garden? You know, who's going to tend to it? He likes being home. I think that taking it down from like an emotional projection standpoint, what are the numbers? So, like, if you can rent a place for $3,600 and in order to buy that same house is going to cost you $7,000, which that's the case in San Francisco, then it makes more sense for you to rent, especially if you're not going to be able to afford the down payment, which takes a.

[Michael Bostic]

Lot, and you're taxed on pulling all that down. You're. It's, it's a massive payment for young.

[Katie Song]

People and property taxes. Austin is not cheap either when it comes to property taxes. So there, there are certain areas where property taxes are not bad. Like if you live in. I've got some clients that live in Denver. Like, it's not that bad. Right. It's bad in San Francisco. I mean, all of California, it's pretty bad in Texas, it's not cheap in Washington. Like, any place where you have no income tax, they're going to make it up by charging a lot more in property taxes.

[Lauren Everts]

That's interesting.

[Michael Bostic]

You know, property taxes. She has no idea.

[Lauren Everts]

I think I do know our property taxes, actually.

[Michael Bostic]

When do you pay?

[Lauren Everts]

Well, I'm not going to say it.

[Michael Bostic]

On air, but I, you know, do you know when we pay it?

[Lauren Everts]

No.

[Michael Bostic]

Okay.

[Lauren Everts]

Why would I know that you. You do that. I do.

[Katie Song]

December and April.

[Lauren Everts]

I do other things.

[Michael Bostic]

January.

[Lauren Everts]

What is a story that you've had with a client where they've come to you feeling like they didn't have their finances together, and you sort of helped change everything around, and you're really proud of it.

[Katie Song]

I mean, I feel that way about everybody that I work with.

[Lauren Everts]

Is there someone in particular, though, that you just like. You're just. This story just, like, rocks your world.

[Katie Song]

So there was, you know, always the. There's recency bias, like the one that you worked with most recently is going to impact you the most. So there was a client that they just had their third baby.

[Lauren Everts]

Okay.

[Katie Song]

The baby's three weeks old, so the dad is still on paternity leave. And he's like, we need to get this, because I think I need to buy a house. I think we need. We're renting. Their rent's $8,000 a month. Not insignificant. But to buy the house he wants to buy was going to cost him 12. So when I started doing their cash flow and looking at their spending, now that they've got three kids, they're spending $90,000 a year on childcare.

[Michael Bostic]

Whoa.

[Katie Song]

All right. So when I started showing them their cash flow, I'm like, you're in the hole $145,000 a year. Most of it's because of childcare, but the other part, he didn't realize he was spending two grand a month on Ubers and they were spending over $3,000 a month on doordash because they're tired. They've got little picky kids. They're not. They don't feel like cooking. So they knew they were spending more because their savings account, that down payment that they had, had been dwindling. Not quite. You know, they just got a no pair. There's always a moving piece. So even just giving them the clarity of looking at their numbers, he was like, oh, my God, it's just laziness. I'm taking those Ubers because I'm waking up late and not getting my ass to the ferry in order to get to work. So immediate behavior changes happen just from having clarity into what your numbers are. And then even me just telling them, like, listen, it does not make sense for you when you've got three kids with childcare, for you to be buying a house, it's going to cost you 12 grand instead of 8 grand. Just stay in your rental. It's bigger than a house that you're going to be able to Afford to buy and you're eating up your down payment because you're overspending.

[Lauren Everts]

Isn't it sometimes too, you're spending more on childcare than you're even making.

[Katie Song]

Well, in this case, they were making more.

[Lauren Everts]

Okay.

[Katie Song]

Yeah.

[Lauren Everts]

So like there are cases where it's not.

[Katie Song]

Yes. And in those cases, like I, I was on.

[Lauren Everts]

Are you just paying for a break from your kids?

[Katie Song]

Well, the hardest job is to be a full time mom for sure. Right. Like six weeks after my son was born, I was back at work. I mean, it's my company and I like my baby, so. And you know, my office is behind my house, so I wasn't that far away from him. So for this couple, they had like immediate relief knowing that like, you know, they could give up, not give up, but they could table the whole idea of buying a house.

[Lauren Everts]

Yeah.

[Katie Song]

You know, these are really big decisions.

[Michael Bostic]

Yeah. I think the biggest change, I think for us personally was like I said earlier, we were, we started to struggle for a while and then we, we got decent at generating an income and then didn't know what to do with the income and then made it and lost it and then finally took hold of it. But one of the biggest changes was actually starting to pay attention to all these things like, where's the money going, where's it being saved, where's it being invested, how's it being spent? All that. And it was like, I remember for, in the beginning it was looking at it a lot so that we could analyze what was happening, at least for me. Now I don't have to look at it as often because you kind of get a baseline over time. But I remember in the beginning there was this huge feeling of anxiety, just like addressing the credit card bills and addressing the rent bill and all of those payments. I think that like, for me with the first step was just like looking at it in the face and saying like, oh, this is what's actually going on and these are where the dollars are going and lost or spent or whatever.

[Katie Song]

Well, one of the things that is helpful of working with somebody like me is that I can kind of do some social benchmarking. So a lot of people come to me and they're like, we're spending, you know, the husband will be like, we're spending too much money on food. And she's like, well, now we're not. And then, you know, the wife will be like, you're spending too much money, you know, on fantasy football. And so when I look at their numbers and I compare them to other families of four. And I'm like, no, you're fine. You're absolutely fine. Let's talk about the fun stuff. What do you guys want to spend on travel next year? You know, let's talk about your trips. Let's plan this out. The holidays are coming up. I want people to be more mindful. I mean, it's really easy to get caught up in the lights and the glamour and the smells of candles and all that kind of stuff and just like spend, spend, spend. And then in January when you get that damn credit card bill, you're like, you're stressed. Like, how did this happen? How did we spend an extra $3,000?

[Lauren Everts]

Someone stole my credit card.

[Katie Song]

Could be.

[Lauren Everts]

I'm a little worried about how much I just spent on the lights outside our house. You could see our.

[Michael Bostic]

See, that's another thing, the cost of the house. And we got the lights on the house. It was a rental. I'm not putting the lights on the rental.

[Lauren Everts]

But I wanted to make it sparkly for my kids.

[Michael Bostic]

But again, like, I think I just want to articulate, like we, a lot of these things that we did. I want, for listeners that are not as far along or especially young people, I want to articulate the things that I wish we did.

[Katie Song]

Yeah.

[Michael Bostic]

Which was have these kind of conversations. Understand finance, learn how to save, learn how to invest. Because it's so much harder now. I mean, fortunately we've, we've done okay. But as you start to have more responsibilities and maybe you do have a mortgage and you have, and you do have kids and you're, and the kids have to go to school and they need clothes and all these things, like it's, it, it can get really challenging. But if you build that buffer zone early and that compounding takes effect, it just makes life so much easier. And as much as people maybe dislike to hear this, money is always going to be a huge part of living as a person, being in society. It's, it's how you transact, it's how you get things. It's how you take care of things. It just, it just, it's just a fact of life. And so I think so many people kind of disregard and kind of push it off to the side and then they suffer way longer than they need to.

[Katie Song]

Well, we live in a hyper capitalistic society. So like un. Unless you have found some la la land to live where money doesn't exist, like you have to pay attention to this stuff or you're never gonna be successful. Yeah. And I don't even successful, like as in having a lot of money but really enjoying your life.

[Michael Bostic]

Yeah. And you know, whenever I hear people say like, I don't care about money, I'm like, well, it's money. Money cares about you. Like it, it matters because that's how you do everything. And I don't. Not about how you get measured, but just again, how you eat, how you live, how you take care of your kids, all of these things or how you give.

[Katie Song]

Like, you could become really charitable. You could decide that. I mean, I have a lot of clients whose stocks did really well this year. And all, you know, everybody's like, should I do a donor advice fund? Should I get a big tax deduction for, you know, gifting my appreciated securities? I'm like, absolutely. If gifting is something that matters to you, there are really great ways to go about doing that. So sometimes money just enables you to be the person that you want to be.

[Lauren Everts]

You guys. For a limited time, Domain Money is offering a free 30 minute strategy session to all show listeners. Yeah, that is very, very generous. And you get to see which financial plan's right for you.

[Michael Bostic]

So let's, let's talk about Domain Money for a second.

[Lauren Everts]

Amazing. Tell us what they're, tell us the breakdown of that.

[Katie Song]

So we offer three different planning services. But before I get into that, like, the free strategy session is, gives us a chance to like, hear about our clients, hear about like, what is your pain point? Like what's going on in your Life? Are you 20, 30, 40, like what, what's your situation? And giving even in that call some real tactical advice if it's the right fit. And we think that you would benefit from this and you feel like ecstatic and like, okay, this is exactly what is going to make me feel better about 2025 or 2026. And going forward we've got three different plans. So I've been doing this for 15 years and kind of the method methodology here works really well for my clients. So like, the first plan is kind of like our starter plan. It's, it's called the one page plan. I think we're changing the name to the Essential plan because it's not really one page, it's multiple pages. But that's really for like our clients that are starting to figure out that you're wanting to figure out their financial life. They don't own a home yet, they probably don't have kids yet, but they want a framework for, you know, what is my cash flow? What's my starting point? How should I be going about investing. How do I make sure that I have the right investments in my 401k or my IRA or whatever account. Do I need insurance? What kind of insurance should I have? Once you have kids or own a home, you move up to what we call a strategic plan. Your life is more complicated. There's usually a couple involved and it's not just like a single person. And we're focusing on three key areas. Most of those areas tend to be cash flow and retirement. Always two of them. And then the third area tends to be like, how much house can I afford? Sometimes it's like we need to upgrade. We had an extra kid. Or you know, we want to buy a rental property or we want to do a massive renovation. Should we move or should we renovate? Or we're looking at investments and education, savings. How do we, how do we optimize that? The third plan is our comprehensive plan. And it is just what it sounds like. It's everything in your life with a dollar sign. Clients tend to self select into that, like my financial planners. And I don't push that because it's a lot of information. So like Lauren, for you, you'd be like, hell no. Like, I do not want to hear about my homeowner's insurance on my section 1A coverage and me having to increase my deductible.

[Lauren Everts]

I like to delegate that to Michael.

[Katie Song]

Exactly. Exactly. So for my clients that are like, I've been, they're usually in their 40s or 50s and they're like, I've been meaning to do this for 15 years. Why didn't I do this 10 years ago? They want to rip the band aid and they want us to look at everything. Employee benefits, insurance, estate planning, all their investments. They probably have old retirement accounts that they've just been too lazy to move over or haven't known the process. So for us, it's really about teaching a woman to fish or a man to fish eat for a lifetime. We want to hold our clients hands to get stuff done. So if you've got old 401k plans that you just haven't rolled over, we make sure it all gets done. If you've got stuff that's sitting in cash and needs to be reinvested, we teach you how to do it. We have our clients share their screen with us. We walk you through how to place a trade. For some people, it's the first time they've ever done this stuff before. And then there are others that are, you know, are really comfortable doing it, so it's kind of the full spectrum.

[Lauren Everts]

I think this is really amazing for everyone who's listening to take advantage of a free 30 minute situation. That's incredible.

[Michael Bostic]

Yeah, I mean, listen, I, I can't stress enough how much personal stress we could have avoided in our life if we would have taken an interest in this earlier. And I think this topic, as we've talked about on this show, money stresses people out, especially if you'd have little or low understanding of it. And so I think the earlier you can start, you're going to save yourself so much stress and so much hardship in your life. Just being able to kind of get a plan in place and then stick to the plan and then you kind of like what I realized. And as, as I've gone on, it actually kind of starts to become a little bit of a game. It starts to kind of become fun. You're like, oh, this goes in this bucket, this goes in this. And it gives you these kind of parameter parameters that you can operate in.

[Katie Song]

And I just find it easier progress like sometimes like, you know, I, I like to lift weights and it is a slow going process. You know, I do it four times a week and now I'm like looking at my abs and I'm like, yeah, I like what I see. But it takes a long time. With money it can be fast, like just putting in place some basic simple habit stacking type stuff will compound really quickly.

[Lauren Everts]

Go to domainmoney.com himandher you guys can book today. And also they should get your book, which is on Amazon. Financially Fearless A Tech Mom's Guide to Money. That's a good one.

[Katie Song]

That was like my, my first real group of clients that kept coming and kept coming and kept coming. And I was a solo practitioner until I sold my business to Domain in December of 2023. And so I couldn't help everybody. So I finally, you know, I was meeting with my energy person and they were like, you need to write a book. And I wrote it in 30 days, hired an editor and it's out there and it's kind of, it's everything that was in my brain to help as many people as possible. And that's why I joined Domain is I have a team of certified financial planners. And our goal is to help as many people as possible and really level the playing field because the financial services industry is really focused on the people who already have. So we want to really help the people who have what they have now and help them live their best life.

[Michael Bostic]

Thank you for doing this guys, I can't stress enough. The earlier you can start with this topic and understanding, the more seamless your life's going to be. I really think everyone should dive into this domainmoney.com himandher to check it out.

[Lauren Everts]

Where can everyone find you if they want to come say hi in your DMs?

[Katie Song]

KatieSongMoney Instagram Love it.

[Lauren Everts]

And omainemoney and omanainmoney. Thank you Katie thank you Katie.