YFP 137: How to Monetize Your Clinical Expertise


How to Monetize Your Clinical Expertise

Diana Isaacs joins Tim Church on this side hustle edition to talk about her journey in becoming an expert in diabetes and how she has been able to monetize her clinical expertise through speaking engagements, advisory boards, consulting projects and CE articles.

About Today’s Guest

Diana Isaacs, PharmD, BCPS, BC-ADM, BCACP, CDE is the Continuous Glucose Monitoring (CGM) Program Coordinator and Endocrinology Clinical Pharmacy Specialist at the Cleveland Clinic Diabetes Center. Her role includes clinical practice, teaching, and research. She provides medication management and runs a robust CGM shared medical appointment program.

Summary

Diana Isaacs shares how she monetizes her clinical expertise in diabetes on this side hustle edition.

Diana’s training after graduating college was in pharmacy practice and ambulatory care. She gained clinical expertise and took additional training to receive certifications and specializations. She fell in love with diabetes and started working more and more in the field. She now works as a Continuous Glucose Monitoring (CGM) Program Coordinator and Endocrinology Clinical Pharmacy Specialist at the Cleveland Clinic Diabetes Center. Diana was recently awarded the 2020 AADE Diabetes Educator of the Year.

Her passion for diabetes is palpable and has allowed her to become an expert in the field. When she’s working at night on her side hustle as a clinical diabetes expert, she doesn’t feel as though she’s working but more that she’s doing a hobby she loves. She’s monetized her passion and expertise in several ways, including speaking engagements and presentations, advisory boards, consulting projects and CE articles and courses. She earns the most from honorariums which varies between $500 to $3,000/event. Advisory boards come in occasionally and bring in between $1,000 to $2,5000/board. Diana receives $500 to $4,000/CE article and if she works on a consulting project she usually earns $1,000 to $2,500.

The biggest reason for her success has been her willingness to say yes to opportunities and to reach out to organizations or conferences in which she’s interested in speaking.

Diana says it’s hard to quantify how many hours she works, however she makes it happen! Her side hustle has increased over time so she didn’t feel the brunt of working several additional hours on top of her day job at once. She has a very supportive husband that works part-time and is able to take on more with the children and household tasks. She works at night after her children go to bed but takes off Saturdays and Sundays when she can to make sure she’s present for her children and husband.

Mentioned on the Show

Episode Transcript

Tim Church: Diana, thanks for stopping for and for being part of this side hustle edition.

Diana Isaacs: Oh, you’re welcome. Thanks so much for having me.

Tim Church: I first want to congratulate you on your recent award. And that is the 2020 AADE Diabetes Educator of the Year. And this is an award that honors a diabetes educator who has made a special contribution to the field through dedication, innovation, and sensitivity in patient care. Now Diana, this is a really big deal, and I wanted to ask you, what does winning this award mean to you?

Diana Isaacs: Oh, well thanks. Yeah, it’s been a really exciting year. Winning this award has been tremendous. I mean, I’m so grateful to be recognized for it. And it’s definitely opened up a lot of opportunities for me in terms of it almost seemed like overnight, people were like, oh, she’s an expert in diabetes. And it’s given me a lot of new opportunities to pursue.

Tim Church: That’s great. And when was the last time a pharmacist won this award? Because this isn’t something specific to pharmacists. This is really anybody in the diabetes space.

Diana Isaacs: Yeah, that’s one of the things I really love about the organization AADE, the American Association of Diabetes Educators, is that it is, it’s a multidisciplinary. You’ve got nurses, nurse practitioners, DAs, exercise physiologists, you’ve got dieticians, you’ve really got everybody. And so it’s just — it’s really special I think to be recognized by all the different disciplines. And in terms of the last time a pharmacist, I think when I looked it was like 12 years. So it definitely had been a long time.

Tim Church: That is so cool. And it’s really awesome to see you being recognized because as we’re going to jump into, you really have done a lot for diabetes in terms of your scholarship activities and a lot of the committees and things that you’ve been on. So I’m excited to jump into that. But obviously getting this award is not something that happened by accident. So I want you to talk a little bit about your career path.
Diana Isaacs: Yeah, sure. So let’s see. Going all the way back, I graduated from SIUE, it’s about 10 — actually exactly 10 years ago now. I did a pharmacy practice residency with an emphasis in ambulatory care at the Philadelphia VA. And then I was really fortunate to get my first position as a clinical assistant professor with a practice site at the VA, getting to manage diabetes. And I think through that, I really was able to gain clinical expertise in managing different types of patients and seeing different types of things. And I pursued my certifications, like my CDE and the BCEDMs, I’m board-certified in advanced diabetes management. And really, I think one of the things that really stands out is I say yes. I definitely say yes to different opportunities and also seeking out whenever there was an opportunity to be able to speak at a meeting, whether a local program or anything, really trying to grow myself professionally.

Tim Church: So a lot of those opportunities, did you have to be very intentional about getting? Were some of those given to you?

Diana Isaacs: So that is a great question. So yeah, the golden ticket, right, is when you get one of those emails that says, “Hey, will you do this? And we’ll pay you all this money, and we’d like you to present here and write this.” Those emails come sometimes, and they have fortunately come more often since getting this award, but no. For the most part, I sought things out. When I saw that a meeting was accepting abstracts to be able to speak, I drew up an abstract and I submitted it. I, you know, submitted lots of proposals for lots of different things. I worked really, really hard. And some of the things stuck, and many times, they didn’t get accepted. But I kind of just kept trying.

Tim Church: And did you have any failures along the way when you submitted those proposals?

Diana Isaacs: Well, I don’t like to think of it as failure, right? Because you’re trying to think of it as you’re growing. But yeah, I like to think of it as like I throw 100 darts at a board, and two of them stick. And that’s great. I’ll pursue those two things. So yeah, I feel like I apply for lots of things. I’ve tried to really do a lot of different things and yeah, sometimes I don’t make it, they choose someone else, I don’t get it this time, but I just kind of keep trying. And I really try to keep my ears open for opportunities. That’s something I’ve been pretty good about paying attention, you know, sometimes you get those emails where it’s like, you can apply for this. Like for example, with the American Diabetes Association, they have these special interest groups. And I’ve been wanting to get involved with ADA, and so I applied for that. And I ended up being appointed as communication director for the pregnancy and reproductive health group. And that was just an opportunity that hey, I paid attention to my email, I filled out the application, I submitted it. And it worked out. So I think, you know, a lot of it is reading your emails and seeing what opportunities are out there.

Tim Church: At what point in your career did you realize that you had become an expert and really had authority in this space?

Diana Isaacs: So I don’t — I guess I’m still growing, and I like to think I’m still definitely growing and evolving and there’s so much to learn with diabetes that I don’t know if anyone is a full expert. But I think, you know, definitely earning this award this year has solidified some of my confidence. And I think over — especially in my current position, so right now, I’m at the Cleveland Clinic Diabetes Center. And I think in this space, I see such complex cases. I get to do so many cool things here that I think I just realized, you know, when I interact with other people that I am seeing a lot more, a lot more diverse things that I’m becoming an expert, I guess you could say.

Tim Church: So what would be some of the examples of complex cases or things that maybe most pharmacists kind of in an amb-care setting may not see every day?

Diana Isaacs: Yeah, so I get to do a lot of work with the post-kidney transplant population. And that’s a lot of fun. So there, we do a bunch of kidney transplants there. And unfortunately, our patients were kind of falling through the cracks. That was a need when I came here, that they weren’t getting good glycemic management right after that transplant. It was hard to get into endocrinology. So that’s a service that I took on. And now I see a lot of those patients. And so it’s just, it’s very interesting because they’re on high dose steroids, they’re tapering over a month’s time, they just had a transplant so they’re acutely sick. Many of them, even if they didn’t have diabetes before, now they have steroid-induced hyperglycemia, and it’s really an art to it because there’s no specific protocols. It’s really every person’s different, and you have to very closely manage it. And then in addition to that, sometimes you see the pancreas-kidney transplant. Like I have a patient this week, she had it, and you know, you would hope, right, the dream is that if you get a pancreas transplanted, you don’t need insulin anymore. But it doesn’t always work like that. They call it like angry pancreas. Like it takes some time for that new pancreas to adjust. So then we have her on Metformin and like we’re trying to see, are we doing a DPP4 inhibitor and what else are we going to do? And so it’s just — man, it’s a lot of cool stuff, a lot of cancer patients, a lot of just everything, like post-bariatric surgery, hypoglycemia, people doing keto and de-escalating therapy, lots of CGM, diabetes technology, insulin pumps, just lots of cool stuff here.

Tim Church: So it sounds like that the providers are how they come in through the clinic, they’re like if they’re complex or it’s going to be difficult, we just send them to Diana. Is that pretty close to how it works?

Diana Isaacs: So I am so fortunate. I work with like the most amazing doctors, and I have an amazing, amazing team. So what I try to do when coming here — because I was the first full-time pharmacist put into the diabetes center — was I tried to find where would I be most useful? And some of the areas I recognized that were one, we were underutilizing diabetes technology, so like insulin pump adjustments and getting more patients on CGM. And then the kidney transplant need was really two areas where I decided that I would really be best utilized, and so those are kind of niches that I’ve I guess developed. But yeah, I try to be helpful wherever I can for the team.

Tim Church: That’s really cool, and I think those are obviously niche areas within diabetes itself, but through the organization that you work for, obviously if those are very frequent types of patients that are coming in, there’s certainly going to be a need. And I think that’s really cool how you positioned yourself to basically say, what are the needs out there and how can I best be a part of this service and impact patient care in that way? So I think that’s really cool the approach that you took.

Diana Isaacs: Thanks. Yeah, and I try — you know, a lot of times, pharmacists will come and ask me what they can do and how they can get involved, and I think it’s really every place is unique and it’s about assessing the needs and making sure you’re not stepping on other people’s toes but you’re adding value to the team.

Tim Church: So besides kind of positioning yourself as an expert by taking on very difficult cases, very unique cases that many people may not see all the time, you know, one of the things I thought about prior to our interview was the book “Outliers” by Malcolm Gladwell. And essentially, one of the conclusions of that book is that in order to become an expert, you need 10,000 hours. So a lot of people out there — obviously you don’t become an expert, you don’t become a member of the Beatles like overnight. The Beatles don’t become The Beatles overnight. It takes a lot of time and practice in order to get to that point. So what do you think about that in the context of your personal journey?

Diana Isaacs: Yeah, that’s a great point. And yeah, hard work is required. I mean, I work hard. But the thing is, it’s not boring or tedious. I just, like I really love diabetes. And I love that I can use my skills in diabetes to be able to help people. Almost 10% of people now have diabetes. So wherever I am, I’m able to make an impact and to directly help people. And so like for me, I love doing it so much that I don’t think of it as work. Like if I am working on a project or I’ll do this stuff in the evenings, and I don’t really think about it because I’m enjoying doing it. But absolutely, like the hard work is necessary. And I think on one hand, that should be inspiring because it’s not that you have to have like some special secret skill or talent. Like every person or every pharmacist should know, like if they work hard enough in a certain area, they can become a clinical expert.

Tim Church: And I think too — and I think obviously, you’ve already kind of talked about this, but just that repetition of seeing the number of patients over and over and over, and you start to develop certain patterns. You know, obviously you’re going to have some complex cases that you’ve never seen before, but it’s almost kind of like it adds to the — your own repertoire of knowing OK, I’ve seen a patient like this in the past and this is how he or she has responded. And I’ve kind of instilled that in the training programs is when we take residents — because for those that don’t know, I also do primarily diabetes management, but I’m always pushing the residents and students to really see as many different types of patients as possible because that repetition is so key, even if it seems monotonous and tedious at the time.
Diana Isaacs: Yeah, and I think the great thing about kind of the ambulatory care environment too is you’re interacting, you’re communicating with different types of people. So you can always learn from every person. And so that’s really the art of it that makes it really unique and something — I have a lot of trainees, a lot of residents and students that I work with. And that’s something, you know, you can have two exact same clinical situations but what you do may be different depending on like the patient’s attitudes and other factors. So yeah, that communication and, like you said, repetition, is very helpful for navigating different situations.

Tim Church: So who or what really inspired you to become an expert? I can tell like just from your voice, obviously this is where you’re already passionate about. But is there anyone who inspired you to basically continue to achieve, continue to get to the next level?

Diana Isaacs: Yeah. So I want to highlight, so Jess Kerr, who is faculty at SIUE where I went to pharmacy school, was very inspiring. She was faculty and had a practice site — or still has a practice site at the VA. And I wanted to do what she did. I guess that passion I saw, she had that passion for helping people and I really wanted — she seemed so happy — and I really wanted to be that. I was very fortunate to get a position like that. I think something else that actually stands out is my math teacher, actually in high school. I had a really bad attitude about math. And I was like, fine, like this is too hard. Like I’m just getting C’s, like I don’t care. This is just way too hard, I don’t feel like doing it. But she invested all this time in me. And she encouraged me to have a positive mental attitude, PMA, and she said things like, “Dream it. Believe it. Achieve it.” And that really shifted things. Like I learned that my attitude really dictates how situations will turn out. And just through changing my mindset, having a positive attitude, things can go really well. So I turned myself around, I went from C’s to A’s. And I think that that message really stuck with me in a lot of different areas, not just pharmacy and diabetes but in other areas of my life too.

Tim Church: That’s really cool. And I think that a lot of people, they would not be where they are unless they heard some message, received some encouragement from somebody. So that’s cool. And I think it’s great that you highlighted those individuals. So obviously you’ve reached this expert status in managing diabetes and along with that comes some engagements and proposals and things where you can really show off those skills but also help other clinicians help patients. So talk about some of the ways that you were able to start monetizing your clinical expertise.

Diana Isaacs: Yeah. So it’s been exciting because I’ve done a lot of things over my career for free, put a lot of sweat and tears — not usually tears. But yeah, now I’m getting paid to actually speak and things like that. And I love — it happens to be that I love giving presentations. And so that now, you know, I get paid to give presentations. And part of actually what I’m doing with this Educator of the Year is I get to give presentations and then beyond the five that I will give and that I kind of already received an award for, I can do additional ones where they pay me and I’ve been able to set my price. And so that’s been exciting. And then another side benefit has been that industry has been interested in me too. So now I’m speaking for DexCom as well as I’m on the speakers bureau for Novo and for Zerus, and so that is very exciting.

Tim Church: So take a step back for the award, the Diabetes Educator of the Year, they’re already guaranteeing you five speaking spots? And are those individual speaking gigs, those are paid for? Is it one lump sum that they’re giving you?

Diana Isaacs: Yeah, so what happened is I got $5,000 up front for that. And in that, I agreed to speak at five places, which I got to choose — or places could request me, and then I got to choose from the list of people that requested me. And then beyond that five, then additional places can request me. But they won’t get the financial assistance. So they would have to pay for my travel and then pay for my honorarium on their own.

Tim Church: So besides speaking, what are some of the other ways you’ve been able to monetize?

Diana Isaacs: Yeah, so things like CE articles, so places like Pharmacy Times, Power Pack, they will basically — they will pay you to write CE articles or like give webinars. So that’s one thing I’ve been able to do. Also, like in the webinar and course development — so I actually do a lot of stuff with AADE. There’s a whole CGM course. And it’s going to be turning into a certificate. But I was involved in that. And so that’s led to a lot of honorariums along the way. We even most recently created videos for it on how to counsel on CGM. And so there’s been a good number of honorariums for that as well.

Tim Church: That’s great. So can you break down kind of the different ways you’re earning and what they would typically provide in terms of an honorarium? And that could be like a range.

Diana Isaacs: Yeah, so it really varies a lot from place to place. Like some places, you do a local program, and you speak, and you get $1,500. And that’s to cover — it usually would be like a one-hour program. Depending on the company, sometimes they’ll give you the slides. And sometimes, they’ll have you pick from slides or they’ll let you put together slides, depending on how much freedom you have. Usually, many places will pay — if it’s not done that way, they’ll pay you an hourly rate and then they will pay for presentation development. So like usually, that honorarium ranges from I would say from $200-300 an hour. And so that would, you know, if it takes 10 hours to prepare, say that would be $2,500. And then the presentation itself usually will be like a $2,000 honorarium as well. So I would say like usually, when I speak, I’ll get anywhere form like $1,000 to $5,000. $5,000 being the best and not usually so normal. But that’s kind of a range. And then they pay for travel and hotel and all that, flight and all that good stuff. Recently, I was asked to speak as part of this diabetes program, which is training people for CDE. And that, I think we agreed on like $600 per hour of speaking. But that wouldn’t be prep time, that would probably just be like the time. So if I speak for five hours, then it’s $3,000. So that’s kind of for the speaking stuff, that’s usually how it works out.

Tim Church: And then have you been able to cross — I mean, obviously with AADE, ADA, those are multidisciplinary organizations — but have you gone and done presentations specifically for physicians, for nurse practitioners, physician assistants?

Diana Isaacs: Yes, so I was just recently asked to speak for like the dietician organization. So I think that’s beginning to happen. I was asked to speak also for ADA post-grad sessions, which is in early February. So that’s exciting because that’s an organization, there’s a lot more physicians in that organization. And of course, I do a lot of speaking AADE. So I think I’m starting to tap into these other organizations as well.

Tim Church: You mentioned to me before we jumped on the call that besides speaking, besides CE articles, some of the other ways you’ve been able to monetize have been being a part of advisory boards and then also consulting. Can you talk a little bit about that?

Diana Isaacs: Oh yeah. Advisory boards are like the greatest thing in the world. They’re usually like these — it’ll be like four hours and you’ll get paid like $250 an hour, plus if there was any travel. But the best is when they’re local, and you just like go for four hours and you get $1,000. Those are wonderful. I love when those happen. Other things, like for consulting, just different types of like writing or I get asked a lot of stuff about CGM type of stuff. Like now, I’ll be working on a supplement for the Diabetes Educator for InPen by Companion Medical, so stuff like that pays. Oh, recently I got asked to do this Medscape thing, which that sounds actually really cool. It’s like about time and range. And they’re — I guess it’s more kind of like an interview. They asked me to pick a nurse that I like working with, so I picked my favorite nurse. And we’re going to go I guess to like New York to film this brief thing. But that was like another kind of cool thing that I was like, oh, wow. That’s interesting. So all that stuff’s been cool. And I guess one of the things I’ve learned is, you know, I’ve done lots of things for free in my life. And I love doing it. So sometimes, it’s like easy to get to be like, oh yeah, I’ll just do this. But recently, I’ve tried to set my boundaries that hey, if someone’s asking for a good amount of my time, to make sure that I am getting paid fairly for my amount of time.

Tim Church: Sure, I mean, I think that’s absolutely reasonable. And you’ve done a lot of the things in the past to get to the point where you are where you weren’t necessarily compensated. But I think it’s incredible all the different ways you’ve been able to monetize. And obviously, along the way, you’re providing a lot of value, whether that be organizations or education that ultimately gets in the hands of patients itself, which is really cool. Can you break down in terms of percentages — so all of these different things that you’re doing to monetize — can you break down kind of what is the highest in terms of bringing in the revenue? Without specific amounts, just kind of what percentages does speaking bring in versus advisory boards, consulting, CE, etc.?

Diana Isaacs: So I think speaking definitely brings in — if it’s like a big program where — like I’ll give you another example. Like at AADE, I had a bunch of presentations, but then I had this one presentation, it was sponsored by Abbott. And so the honorarium was like $2,000. So that’s something that just brings in money, I feel like quickly, especially if it’s a topic that I’m pretty comfortable with. Like another example was a CE article that I did, it was also on CGM, and that paid $4,000. And so those are topics I’m very comfortable with. So those are easy and much faster, I guess, to earn the money. Other things, like writing sometimes. You know, writing can take awhile, so especially if it’s a topic you’re less familiar with. So now I try to stay in the diabetes realm. But I actually, like last year, I wrote an article about hyperhidrosis, which was not as familiar to me as other disease states. So that one took a little bit more time. So I guess what I’m saying is it’s hard to completely break it down. But I think for sure speaking, advisory boards pay a lot, but those are really unpredictable. So you know, I could have two advisory boards in one month or I can go almost a year without an advisory board. It’s just, it really depends on the needs of the company and what area they’re targeting and everything. So I think it just really varies. Another thing that brings in revenue, though, which is kind of cool, is speaker training. So whenever you speak for one of these companies, they want you to get trained. And so like that, that’s amazing because you get your hourly rate for a bunch of hours and you’re not presenting or anything, you’re just learning. And so that’s pretty cool.

Tim Church: How does that work?

Diana Isaacs: Yeah, so like with Dexcom, I was really fortunate because I missed the original training, and two people came out to me and like just trained me for four hours. And like I earned $1,000 and it was amazing. Other ones, like I’ve been invited now for this year to go to a Dexcom and to a Novo training. And so those, I’ll be flying out to like to Florida in the winter, so it’s not like it’s so bad. I think the other one’s California. But it’s just basically like a day, and they’ll be paid an hourly rate. And the good thing about those is it will be with other people on their speakers bureau. So the opportunity to interact — but those are really interesting because you learn more about their product. And so I mean, I just find it’s incredibly helpful and interesting, and I get to earn money. So it’s really awe — I mean, it’s really cool to get to do that kind of stuff.

Tim Church: Yeah, it sounds like you’re getting just a tremendous amount of opportunities, which is really cool. Would you say that now at the point of where you are that most of these opportunities are already being asked of you where you’re not having to reach out as much anymore to get them in motion?

Diana Isaacs: So yes and no. So yeah, like fortunately with the pharma stuff, that’s been really exciting. But I think it goes both ways because I was pretty interested in Zerus and definitely let them know that I was interested in being a consultant for them. I’m definitely getting asked more, but I’ll tell you, there’s still things I apply for. So I think it depends the caliber of what it is. I am, fortunately, getting asked a lot more. But there’s certain things that I — I’ll give you an example, OK? So this isn’t so like — this makes sense. So like ADA Standards of Care, I would like love more than anything to be on the committee that develops the standards of care, OK? So that’s something you have to apply for. So that is something that I hope to apply for and if I were to get selected for something like that, that would be like a career dream. So I think it goes both ways, maybe my dreams are even higher now than they were before. But yeah, I still, I’m open to new opportunities and still — will still apply for things.

Tim Church: So looking back, now that you’ve obviously been able to monetize, you’ve been able to bring in extra income, what are you doing with the additional income that you’re bringing in with your side hustle?

Diana Isaacs: That is also a great question. So honestly, I just live my — I don’t want to stress about money, and I think bringing in the extra money allows me to live a very comfortable life without stressing. I work very, very full-time between my regular job and all these extra consulting opportunities. My husband, fortunately, is able to work part-time, which is good because then someone is home more for the kids and I feel like we have more balance, and he’s able to take care of some more of the stuff at home. So I think for us, it’s just really about not having this stress, being able to buy what we want, and then whatever extra, college funds, all that good stuff.

Tim Church: Cool. So how much time do you think in most weeks you’re spending kind of on consulting and all these other activities that are outside of your scope of your full-time positon?

Diana Isaacs: Yeah, that’s hard to quantify. I will say every Saturday, I completely disconnect and I am not using the phone, I’m not working, I’m like really just with the family. So I always have that day. And even Sundays, I try to really make family day. And I’m fortunate that I have a position that’s Monday through Friday so that I have my weekends off. I try really hard to do my extra work in the evenings when my kids go to sleep and like evening-weekend — or weekend-evenings. I try not to take too much time away when my kids are awake. It’s definitely a balancing act. I feel like I make it work. I don’t know. Maybe it seems like I work a lot, but I try — somehow, it all works.

Tim Church: I was going to ask you, what other tips do you have? Because I mean, you’re doing so much, you have a family, I mean, I think a lot of people when they think about the thought of taking on something in addition to their full-time job, it almost seems like it’s impossible.

Diana Isaacs: So I guess it’s built up like over time, so it hasn’t felt like oh, it’s this massive thing all at once except when I have an article that’s due and I waited until the last second to do it, which isn’t great. But I don’t know, I just, I don’t do — like I don’t watch TV really. I don’t go to movies, I try to minimize distractions. I’d like to say I’m perfect about social media, but I definitely like to post things on Twitter and stuff. But I try to really minimize the outside distractions. And when I am home with my family to really focus on my kids and not be distracted. And that way, when they go to bed, like I can really devote my time, you know, like whatever, from 8:30-10 on whatever I want to work on. So I just — and I think I just love what I do. I just love it so much that for me, it’s like my hobby, right? Like if someone else likes to paint or likes to do whatever, they would make time for that. So for me, this is kind of like my hobby. I just really enjoy it. And so I just — like I make time for it.

Tim Church: And it sounds like too that it sounds like your husband is very supportive in you doing these extra activities and things like that. And obviously, you said it makes it a little bit easier that he’s part-time. But would you say that he’s played a big role for you to be successful with all these other ventures?

Diana Isaacs: Oh my gosh, yes. Yeah. I mean, he’s the only reason that I can do what I do. He’s like really good at managing the kids, going grocery shopping, like he’s really on top of it, but also I have cleaning help. Like that’s a must. I definitely, I have cleaning help, a lot of cleaning help. So that’s another thing I use my money for lots of cleaning help. But yeah, I mean, you have to have that support. And he knows that I love doing this stuff, so he is supportive as long as I’m not out of town too much. And that’s the part I have to balance because all these speaking gigs, trying to just make sure — I like to be home on the weekends when I can and stuff. But yeah, it’s a balancing act, but it’s fun.

Tim Church: Well, Diana, this has been a great time. And obviously, it’s just cool to hear your passion in your voice. I mean, obviously, this is an area where you’ve become an expert and be able to impact not only clinicians but patients just in your full-time job but with all the work that you do. So what tips or suggestions would you have for others who want to become an expert in a particular clinical area?

Diana Isaacs: So this is going to go against all that burnout, resiliency talk that you hear. But just say yes. Like this whole thing about saying no to avoid burnout, I just, I disagree with it. And I think in order to be an expert, to have new opportunities, you’ve got to say yes. You’ve got to open yourself up to that because you never know, like when you say no because you’re worried, oh, it might overwhelm you, what you’re going to miss out on. And the thing is when you say no a lot, that really closes doors and people don’t want to ask you again. So I just, I like really encourage people to say yes or at least really, really think about it before being so quick to say no. And then the other thing is just look for those opportunities. Don’t expect that people are going to hand you things. You do have to work hard. It doesn’t happen overnight, but that’s OK. And just look for new opportunities.

Tim Church: Diana, if somebody wants to learn more about you and what you’re doing, what’s the best way to reach out?

Diana Isaacs: Yeah, so you can email me, you can find me on Twitter, @DianaMIsaacs. Yeah, I’d be happy to chat with anyone who’s interested in talking. So yeah, feel free to shoot me an email. If we’re going to one of the same meetings, we can meet up there. So yeah, happy to connect with anyone who’s interested.

Tim Church: Diana, thank you so much for coming on the podcast, sharing your story and your tips and suggestions. It’s been a lot of fun.

Diana Isaacs: Oh, you’re very welcome. Thank you so much for having me.

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YFP 136: The Ins and Outs of a Pharmacist Home Loan


The Ins and Outs of a Pharmacist Home Loan

Tony Umholtz, a Mortgage Branch Manager for IBERIABANK/First Horizon, joins Tim Ulbrich on the show. They discuss the considerations for financing a home purchase, the biggest mistakes people make when applying for lending, and a variety of lending options available to pharmacists including the Professional Loan Program (aka Doctor’s Loan).

About Today’s Guest

Tony graduated Cum Laude from the University of South Florida with a B.S. in Finance from the Muma College of Business. He then went on to complete his MBA. While at USF, Tony was part of the inaugural football team in 1997. He earned both Academic and AP All-American Honors during his collegiate career. After college, Tony had the opportunity to sign contracts with several NFL teams including the Tennessee Titans, New York Giants and the New England Patriots. Being active in the community is also important to Tony. He has served or serves as a board member for several charitable and non-profit organizations including board member for the Salvation Army, FCA Tampa Bay and the USF National Alumni Association. Having orchestrated over $1.1 billion in lending volume during his career, Tony has consistently been ranked as one of the top mortgage loan officers in the industry by the Scotsman’s Guide, Mortgage Executive magazine and Mortgage Originator magazine.

Summary

Figuring out financing is critically important in the process of buying a home. However, the decision to buy a home and how much home has to start well before digging into financing options. If you’ve decided that purchasing a home will work for your situation after you know your budget and understand all of the costs involved, you’re ready to start looking into financing options.

On this week’s podcast episode, Tim Ulbrich interviews Tony Umholtz, a Mortgage Branch Manager for IBERIABANK/First Horizon, to learn the ins and outs of the Professional Loan Program (Pharmacist Home Loan), a doctor’s loan that pharmacists are able to qualify for.

Tony talks about where you can go to look for current rates, different types of lending options that are available and the biggest mistakes people make in purchasing a home. Tony also discusses the interest aspect of loans, including a deep dive into adjustable rates.

Tony is happy to offer a Professional Loan Program through IBERIABANK/First Horizon. Programs like the Professional Loan Program are sensitive to the high student loan burden pharmacists carry. With this pharmacist home mortgage loan program, pharmacists can buy a home with 3% down and not be charged PMI. Compared to others, this is a lower cost to enter into a home. There is the option to put more down and you don’t have to take the full approval amount. This loan program also typically offers debt to income ratio thresholds as a protection to the borrower. The majority of people in this loan program opt for a 30 year fixed mortgage. The Professional Loan Program is offered in 48 states and is unique because most of these doctor loan programs do not include pharmacists.

The downsides or considerations to the Professional Loan Program are that if there is a market correction the borrower could be in a position of negative equity. Tony mentions that borrowers also need to understand what kind of investment needs to be put into the property (new roof, water heater, etc).

To learn more about the Pharmacist Home Loan, connect with Tony here.

Mentioned on the Show

Episode Transcript

Tim Ulbrich: Hey, what’s up, everybody? Welcome to this week’s episode of the Your Financial Pharmacist podcast. I hope everyone is having a great start to the new year and to 2020 as we turn the page onto a new decade. Today’s show is all about financing a home purchase. So in previous episodes of the podcast where we’ve discussed home buying — most notably, this would be episodes 040 and 041 where Nate Hedrick and I talked about 10 things every pharmacist should know about home buying, and then again in episodes 064 and 065, where Nate and I discussed six steps to home buying. In these previous episodes, I’ve emphasized that one of the most important decisions in the home buying process is figuring out the financing piece of the puzzle. Now, going through this process twice for my primary residence and now again with the start of refinancing my current home and working through the financing details with a couple investment properties, I can honestly say that this decision, although at times complicated, although at times it gets in the weeds and it can feel overwhelming considering all the options that are available, this decision of the financing is critically important. And so before we jump into our conversation with Tony about financing a home purchase, I’d be remiss if I didn’t emphasize, perhaps re-emphasize, that the decision to buy a home and how much home should start well before digging into the financing options. And this really starts with two key things: No. 1, knowing your budget and No. 2, knowing all the costs involved with home ownership to figure out whether or not you’re ready to purchase a home. Now, when it comes to knowing your budget, the question here is what can you afford? Not necessarily what the bank says, but what can you afford based on the rest of your financial goals and competing priorities? Because we know that there’s multiple costs involved with owning a home. We’ve talked about many of these in previous episodes of the Your Financial Pharmacist podcast, things like the down payment to purchase a home — and we’re going to talk about an option today that will help you there — things like closing costs, property taxes, insurance, interest, potentially HOA fees if you’re in an association, PMI if you don’t have 20% down and you’re pursuing a financing option that doesn’t eliminate PMI, and of course monthly utilities, upkeep, maintenance, and so-on. The costs of owning a home are real, and you have to know where do these costs fit in with the rest of your financial plan? And does this purchase make sense with the rest of your financial goals? So just a couple of quick notes before we jump in about evaluating mortgage rates and offers and first and foremost, where can you go to look for current mortgage rates? So many of you are probably trying to figure out if I’m ready to buy a home, what’s this going to cost me in terms of the mortgage and the interest, and if you head on over to FreddieMac.com/PMMS, again, FreddieMac.com/PMMS, you can find the most up-to-date rates that are out there. And that will help you as you’re evaluating different options and rates that are available from your local bank or perhaps some of the options that we’ll talk about here today. And as we talk about in many other areas, multiple quotes is always preferred. We talk about this with student loan refinance, we talk about this with professional liability insurance, life insurance, disability insurance. And here when we talk about purchasing a home, not necessarily just starting and stopping with your local bank or your parents’ bank perhaps but ensuring that you’re getting multiple quotes and you can find the best option and offer for your personal situation. So we fast-forward and let’s assume that you evaluated the decision to buy a home in the context of your goals, the budget, and the costs involved, and you determined that you’re ready to buy a home. Now we are ready to evaluate all the options that are available to you from a financing perspective. And one of the options that exists is a doctor or pharmacist home loan, which has some very unique features that can be attractive. And that’s why I’m excited to bring onto today’s show Tony Umholtz and the partnership that we have with Tony and IBERIABANK/First Horizon. Now, full disclosure, IBERIABANK/First Horizon is not the only lender that offers a doctor type of loan. And when I say doctor loan, these are generally those loans that are defined for higher income professionals that are lower risk to the bank and therefore, the lender requires a lower percent down, less than 20%, competitive rates, and they eliminate the PMI concerns. And we have explored several of these other doctor type of loan options, and what we have found is that the rate-limiting step of these products is the No. 1. They typically, many of them exclude pharmacists, and No. 2 is that they may not be offered widely enough across many states that it makes sense for us to bring this forward to the YFP community. So therefore, as we do with everything else, you know, we want to make sure that we’re bringing products and services to you that are as widely applicable as possible but also that we feel confident and comfortable in the partnership and product that we’re bringing forward as a consideration among others that you’ll evaluate. Also, we do have a relationship with IBERIABANK/First Horizon. And as with our other relationships, we want to be fully transparent with you about that relationship. We remain committed to bringing you solutions that we have vetted and have the chance to bring value to your personal financial plan. And yes, while we do get paid for several of these solutions, whether that be refinancing student loans, solutions for life and disability insurance, or here with a lending solution for home buying, we are committed to maintaining this approach of vetting solutions and ensuring they are of value to you, the YFP community. Alright, without further delay, let’s bring Tony in to talk more specifically about mortgage financing with the professional loan program that’s available through IBERIABANK/First Horizon. Tony, we’re excited to have you. Welcome to the Your Financial Pharmacist podcast.

Tony Umholtz: Thank you for having me, Tim. I really appreciate this.

Tim Ulbrich: So we’re really excited for our collaboration and to have you on the show to share your expertise in this area of mortgage financing as well as the collaboration to bring our audience forward an option that we, as I mentioned, haven’t been able to find as widely applicable knowing that we serve people all across the country. So Tony, before we jump into IBERIABANK/First Horizon’s professional mortgage loan program, give us a little bit of background on you personally and what led you into the role that you’re in with IBERIABANK/First Horizon.

Tony Umholtz: Oh, it’s a good question. You know, it’s funny. The mortgage business is an interesting one to get into. And I’ve been in the industry now for over 17 years. I started in the fall of 2002, and I was a finance major in college and also a football player. And I had a little bit of chance to play, bounce around with a few NFL teams post-my college career. And then always loved people and loved working with numbers. So I started working in the mortgage business, as I mentioned, a little over 17 years ago. And here I am today. I guess I look back, and time has flown. But I think we joke and we say, I think my team and I have done $1.4 billion in production probably over that timeframe. Over the years, we’ve really tailored our focus to helping many professionals, many different types of borrowers. But we’ve had a very dedicated audience in the medical professional field, so it’s been a big niche for us over the years.

Tim Ulbrich: Well, it’s been an opportunity to meet you and to get to know you a little bit more of your background. And as I’ve joked with Tim and Tim as I got to know a little bit about your background in football and obviously the mortgage business, as a diehard Buffalo Bills fan growing up in Buffalo, New York, when I saw that you played for the New England Patriots, you know, I think that’s the only knock that I have on you up until this point in time.

Tony Umholtz: Don’t hold it against me. And the Bills actually had a great year this year. So they’re coming back, Tim. They’re coming back.

Tim Ulbrich: They are coming back, although my wife reminds me I say that each and every year. So we’ll see if that will continue. So Tony, what are some of the biggest mistakes that you see people making when it comes to applying for lending and purchasing a home?

Tony Umholtz: You know, I think you really hit on it in your introduction there, Tim. It’s the planning aspect. This is the largest investment that most people make in their life. And it’s planning ahead and thinking through their budget. And I think that looking at where they’re going to be in their careers is another one too, you know? Planning ahead — and I typically recommend that if you’re going to be somewhere five years or more, it makes sense to buy. But if it’s only maybe one or two years, it may not make sense to buy. But I think just planning ahead because everyone’s needs are different.

Tim Ulbrich: Absolutely. And we see that a lot, you know, with our audience. We know we have a lot of pharmacists that are in transition potentially with residency training as one example or there’s some instability in the job market right now and they may be wondering, is this a temporary job? Am I going to pick up and move? So I think that timeline is such a critical piece. And obviously, you know, as we all know, the market can be so specific geographically. So the market here in Columbus versus D.C. versus New York City versus rural Iowa in terms of potential timelines of being there and breakeven and different lending products that are out there of course all influence that decision. Now Tony, in terms of lending options, before we talk about the professional mortgage loan option that is here applicable for pharmacists, walk us through, you know, even just at a high level — and I know we’ve talked about some of these in previous episodes — the different types of loans that are out there: conventional loans, VA loans, FHA loans and obviously here we’re talking about the professional mortgage loan. What are some of the nuances and differences between those loans?
Tony Umholtz: Yeah. So there’s really three main core products that are out there that are traded. I don’t want to get too much into industry jargon in this, but they’re basically supported by the secondary market. And that is going to be conventional loans, which are backed by Fannie Mae and Freddie Mac, the government-sponsored entities or GSEs. And then you have what’s called FHA and VA loans, which are backed by the federal government, and those are typically the core majority of loans are either going to be conventional or a government-backed program. Then there’s also what’s called jumbo mortgages, which are above the threshold, like the local limits for Fannie Mae and Freddie Mac and vary by state. But those loans are going to be above the conventional limits and are called jumbo loans. And oftentimes, those programs are held on a financial institution’s balance sheet. So they’re basically held by the bank or that institution. So that’s another type of product in the mortgage market. And then there are unique products that fall under that umbrella like the professional product, for example, or some other programs that focus on — whether it’s doctors or attorneys — oftentimes, they’re held by an institution directly on the balance sheet.

Tim Ulbrich: So those, again, the different types of loans, you outlined conventional, VA, FHA, the jumbo loans, and then the professional loans. And we’ll talk more about that last category here in a few minutes. When it comes to interest on the lending side, you know, often you see commercials or you hear terms thrown around, fixed rates, variable rates, adjustable rate mortgages, ARMs or ARM-hybrid types of loans. Talk us through just for a moment, you know, basic terminology. Fixed versus variable, adjustable rate mortgage, types of definitions.

Tony Umholtz: Sure. So obviously the fixed rates are going to be permanently locked for the term of the loan. So for example, a 30-year fixed, which is very common, has got a fixed rate that amortizes, meaning it pays itself off, incrementally over 30 years. Then you have a 15-year fixed, which is going to pay itself off over a 15-year period, so that’s going to have a 15-year amortization. So those are the most common fixed rates. Adjustable rate loans, there’s a couple different kinds. They’re what I call hybrid adjustable. And what I mean by that is when you hear the term a 5-year ARM or a 7-year ARM or a 10-year ARM, they simply mean that the rate is fixed for a 5-, 7-, or 10-year period. So they still, in most cases, are 30-year loans that are going to amortize themselves over a 30-year period. But they’re going to have a fixed rate for only that set period of time, whether it’s 5, 7, or 10 years, that is going to be the fixed rate period. And the advantage to those programs is sometimes, they actually have better rates than maybe a fixed rate program would. But they still are a 30-year loan. And then after that fixed rate period, they adjust based upon the terms of that agreement and that loan, whether it’s annually or twice a year for the rest of the life of the loan.

Tim Ulbrich: And so in that example, Tony, one of the common concerns I would have or others would likely have is I might get better rate up front, but then obviously once that adjustable rate period kicks in, what are the variables that one should be considering? You know, things to me that would come to mind would be like, what margin would you have in your budget if your monthly payment would go up? What might interest rates be in the future? So talk to us about some of the unknowns that can happen in the adjustable rate market and that type of product and how one might plan for that if they are considering a product that would adjust because of a lower rate and potential savings there.

Tony Umholtz: Yeah, absolutely, Tim. I mean, it’s definitely a program you want to plan through and think through because if you know you’re going to have a loan for at least seven years, let’s say. So a 7-year ARM or a 10-year ARM would be applicable in that case. We wouldn’t want to do a five because that could open up a little bit more risk in most cases. But rates do move up. They move down. Right? It’s hard to forecast. And typically, most ARMs are going to tell you several months in advance of the adjustment date what you’re going to adjust to. And how ARMs is they typically have an underlying index. And that could be something backed by the treasury market, it could be LIBOR index, it could be some other index that is basically a floating index where that rate is adjustable. And then the financial institution will have some sort of margin above that index. And that’s how you calculate your rate. So ARMs can actually sometimes be good, especially in a higher interest rate environment, because if rates go down, your rate will go down. But there is an element of risk because it can adjust upward. The other thing I’d recommend is to know your caps. And what that means is the absolute highest the rate could go to. And often, most ARM products or a lot of ARM products that are out there in the marketplace have both a yearly cap that the rate can move to and a lifetime cap, meaning the highest the loan could ever go. So in your scenario with planning this and looking at an ARM, one of the best calculations would be just saying, hey, what’s the max this rate could ever go to? And run your budget and your payments off that max rate. And if it’s affordable, then the ARM may be a good fit for that person.

Tim Ulbrich: And that’s a great way of thinking about it, Tony. I know we talk about something similar on the student loan refinance side of things where, you know, again, borrowers will get presented variable rate options, fixed options, and the conversation I’m always having is recommending folks run the numbers, obviously, on the introductory variable rate. Where do those numbers lie compared to the fixed rate options they’re giving you? What are those savings? And then run the worst case scenario, obviously, on a cap type of situation, and how do you feel about that? What do the numbers look like? How does that fit or not fit your budget? What are the potential savings? Are they convincing enough? And all those variables can help you make some of those decisions. And speaking of student loans, student loans are one of the biggest barriers, we know our audience knows well. Many of them are living this pain in real time. We have the average indebtedness now of today’s graduate coming out of more than $170,000. So student loans are such typically a big barrier for pharmacists being able to purchase a home. I know that was true for my wife Jess and I. And for conventional loans, most type of conventional loans, student loan debt can obviously have a significant impact on their debt-to-income ratio and their ability to borrow. But the other big concern that we see, which takes us I think to discussing more of the professional mortgage product, is that big student loan debt balances plus lots of competing financial priorities typically may prohibit somebody from being able to save up a significant percentage down while they also have aspirations to purchase a home. Now, we always have talked about ideal situation, 20% down, you don’t have to pay Private Mortgage Insurance, you’ve got some built-in equity into a home, and I think for those that are able to go that path, that still is a great solution opportunity. But we know that reality is many people are not putting 20% down. And they may not be in a position to get there in a timeline that is reasonable for their own personal situation. So this is a nice segway into the professional mortgage option that’s available and specifically talking about the option that we have available in our partnership with you and with IBERIABANK/First Horizon. So talk us a little bit more about the product, you know, how the down payment differs from a conventional, 20% down type of model and then obviously the next evolution of questions that would happen in terms of the terms, how Private Mortgage Insurance works, maximum loan amounts, those types of things with a product like this that would be available to pharmacists.

Tony Umholtz: Sure, Tim. And you hit on it absolutely accurate. I mean, student loans are very much a challenge for pharmacists, for many professionals. We see it all the time. And we see the cost of higher education continuing to rise. So I think that that’s going to be something we’ll be dealing with for a long time. But at the same time, programs like the professional product are sensitive to that. So you can, in many cases, be a first-time home buyer especially, as little as 3% down, you can buy a home without PMI and have the ability to get into a property at a lower cost than most people can, right, because of your profession. And there’s options to put more down. That’s not mandatory to put 3%. But that would be the minimum down payment in that situation. So and typically, there is debt-to-income ratio thresholds that we go to because we want to protect everyone, right? And the other thing I want to hit on too is just because we can approve you for a certain amount doesn’t necessarily mean that’s what you should do. Everyone is unique, and everyone’s budget is different. So you can definitely buy below your means and below what you’re approved for. But at the same time, we do calculate debt-to-income ratios, we do keep some accountability there where there’s a threshold of where everyone can qualify, you know, that it’s a standard percentage that we look at.

Tim Ulbrich: And such a great reminder, Tony, as we mentioned earlier in the show, just the individual setting the budget, not the bank, and really separating those two things out, the threshold the bank is using to evaluate your risk to the bank and the institution and what you’re able to purchase should be, most likely, a very different comparison and evaluation for the individual determining what they’re able to afford and how it fits in the context of all their financial goals. One of the best examples I like to use is when Jess and I moved down here to Columbus and we kind of had set our budget and we’re looking at homes and it was really the peak of the market here in Columbus. And so that was pushing a little bit of the boundary of our budget, what we were comfortable with. And then we went to the bank, and they basically said, “Double that, and that’s what you can have.” And it just made us obviously uncomfortable to go anywhere near that amount and we were able to hold true to the budget and the original numbers that we set. But if you don’t first establish that, I think it’s easy to get into a trap where you then start looking based on the numbers the bank provided you. And all of a sudden, you may be looking at homes that are going to take you out of reach of your other goals. And the bank isn’t necessarily thinking about all the other financial goals and what disposable income do you want to have available to achieve your other goals? So I think that’s such a critical piece. So Tony, obviously we can’t and shouldn’t talk about rates on a show like this. We know they can change and this wouldn’t be timely let alone there’s individual situations, credit scores, debt-to-income ratios, other things that will determine rates. So rates aside, can you talk to us a little bit more about beyond the 3% down as a minimum, obviously people can put more down than that, no Private Mortgage Insurance, are we looking at 15-year, 20-year term, 30-year term? Are these variable? Are they term rates? What’s some more details on those types of options that are available in the professional mortgage loan?

Tony Umholtz: You know, Tim, we find the majority of our clients opt for the 30-year fixed option. And that seems to be — especially given the market that we’re in right now, we’ve seen the federal reserve really compress interest rates again. And then we saw interest rates fall last year in 2019, so it’s made fixed rates very attractive. So a majority of our clients in this space have been opting for a 30-year fixed option. So that’s the majority of what we’re seeing. There are some other options available, but to answer your question, the majority of our clients just given the safety of it and just the fact that the federal reserve is really in the mortgage bond market has compressed and elongated the curve and caused fixed rates to be very attractive. So that’s where we’ve seen most people go, but there are some other options as well, ARM, ARM options as well. But the fixed has been where most people go.

Tim Ulbrich: And Tony, looking at this program, I alluded earlier in the show about there’s several other doctor loan type of programs out there. Many of them exclude pharmacists. And I mentioned geographically as well being a limitation. So for us and why we were so interested in bringing this opportunity for our community is I understand that not only are pharmacists eligible for this, but you also have coverage to 48 states in the United States, which obviously increases the accessibility. So talk to us a little bit more about the advantages of this program versus other doctor type of loans that are out there in terms of the applicability to the pharmacy population and our community here at Your Financial Pharmacist.

Tony Umholtz: Sure. And we have several different programs here for professionals. But some will only cater to MDs and DOs and veterinarians. But this particular product encompasses pharmacists, which is very unique. I haven’t — that is something that a lot of the industry has not really targeted that profession, our profession here. And the advantages — and the geography is great. I mean, that is one thing that I’m very excited about, the ability to help a lot of different people in different areas of the country. But again, the unique nature is many of the banks in our industry have only focused on MD and DO physicians, right? And that’s been the majority of the institutions that have a doctor product. And we have one too, and it has a little bit higher thresholds on loan amounts. But I’ve been very excited about this program. It’s been very well received by our clients.

Tim Ulbrich: And obviously I would be remiss if we didn’t make our audience hopefully think about, as we’ve already done a little bit here already, what might be some of the downsides or considerations? And we’ve talked about one, but I want to even get there a little bit further in that, you know, obviously making sure that somebody is setting a budget and they’re determining what value of a home fits in with the rest of their financial goals. Other potential downside I see is if somebody perhaps is not ready to buy a home and they’re able to get into a home with only 3% down, lower equity position in terms of the market changes and home values go down depending on their individual market, they obviously could be in some difficulty there. Are there any other downsides that you see as we think about the education side of this and where this product may fit well and for individuals that it may not necessarily be a good fit?

Tony Umholtz: Well, I think that in everyone’s planning, the nice thing about these loans is they’re amortized. So they’re paying principal and interest in the payment. So over time, even if your house value did not go up at all, you’re slowly building equity just through making your payments. And there is no prepayment penalty to pay the initial principal if you’d like to. But clearly, the downside is if there is a market crash and you put very, very little down and you have to move for one reason or another or relocate to another part of the country, you could be in a position where you have negative equity, you know? And I mean, obviously case show and there’s different positive forecasts for the nation, but every market is different in this country, right? And I think that that would be – the biggest risk is just what happens to the individual? And the other side of it is what kind of investment do you have to put in the property? Does it need a new roof, right? Does the air conditioner need to be repaired. These are things that are costs that you as a homeowner have to take on that if you’re a renter, your landlord does. But in your case, you’d have to take on those costs. So that’s just part of owning a home. And so just cost of ownership, maintenance, those to me would be the things you’d have to plan for. But clearly, it’s the low down payment versus having to move quickly that can be the most impactful downside of the program.

Tim Ulbrich: So I would remind our listeners too — and credit here to Tim Church who built out some great content and information, Five Steps to Getting a Home Loan — if you go to YourFinancialPharmacist.com/home-loan, again YourFinancialPharmacist.com/home-loan, you can go there to compare multiple lenders. You’ll also see there an option that says, “Apply for Pharmacist Home Loan.” And if you click on that, it will take you to a page that has Tony’s information, including his email address and I see here some beautiful palm trees. He’s based out of Florida while we’re freezing here in the blistering cold of winter in Ohio. But one of the things that most excited me about this opportunity, in addition to finding a product that was competitive, that was available to pharmacists as well, and that also covered a wider range of states, was the idea that we have an individual in Tony to work with, to connect with, and for those that are going through the process that they can work with an individual and build that relationship. So Tony, we appreciate you taking the time to come on the show. We’re looking forward to this collaboration and this partnership. And what would be the best way for our listeners to get in contact with you if they have more questions about this interview, about the product, or they would like to learn more?

Tony Umholtz: Well, Tim, first of all, thank you for having me. I’m very excited to be a part of this with you guys. And you guys are doing some great things here for your audience. And I’ve got obviously my contact information is accessible on the website. But one of the biggest joys I have in this industry is helping others. I’ve always been kind of a pay-it-forward person. But I do have a staff, a team, and several of my team members have been with me as long as 14 years. So I have three assistants and myself, and we’re all very, very much industry veterans and can answer questions. So email, call to the office, our office line is the best way to reach us. But we’re very accessible and excited to help. And thank you again, Tim, for having me here, for having me on.

Tim Ulbrich: Absolutely. And for our listeners that want to get directly to that email, it’s [email protected]. So again, [email protected]. So as one final reminder, if you’d like to learn more about the steps, considerations to getting a home loan, make sure to check the post on the YFP website, Five Steps to Getting a Home Loan, by visiting YourFinancialPharmacist.com/home-loan. And as always, if you like what you heard on this week’s of the Your Financial Pharmacist podcast and our episode this week, please leave us a rating and review in Apple Podcasts or wherever you listen to your podcasts each and every week. We appreciate you for joining us on this week’s episode, and we hope you will join us again on next week’s show. Have a great rest of your week.

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YFP 135: How Jessica Applied KonMari Principles to Jumpstart Her Financial Plan


How Jessica Applied KonMari Principles to Jumpstart Her Financial Plan

Dr. Jessica Louie joins Tim Ulbrich on this week’s episode. Dr. Louie is a Certified KonMari Consultant and Coach, creator of Clarify Simplify Align, host of The Burnout Doctor Podcast, Board-Certified Critical Care Pharmacist and Associate Professor of Pharmacy Practice at West Coast University College of Pharmacy. She shares about her journey being trained as a critical care pharmacist, how she quickly found herself burned out, how the KonMari method helped her and how she applied the KonMari method to her financial plan. These small intentional daily steps led to big changes in her financial plan including being completely debt free and having over 6 figures in savings.

About Today’s Guest

Hello there! I’m Dr. Jessica Louie, the founder of Clarify Simplify Align & The Burnout Doctor Podcast where I help BURNED out pharmacists get out of overwhelm and live with LESS clutter and MORE energy. As a former shopaholic, workaholic and pharmacist struggling with burnout, I know how it feels to live a life in overwhelm without clear goals or a clear purpose. Fortunately, I was saved by decluttering and simplifying my life and now my simple framework – Clarify. Simplify. Align Method – helps YOU go from cluttered & stressed to leading with confidence & curating a life YOU love! Are you ready to get started?

Summary

Dr. Jessica Louie shares how she became burned out as a pharmacy resident, how the KonMari method helped her recover from that burnout and how she applied the KonMari principles to her financial plan. Jessica realized that she was burned out in 2014. She thought that she was going to enjoy life after all of her pharmacy training but ended up not being fulfilled as she got closer to the finish line. She turned to shopping as a coping mechanism and wasn’t living intentionally. Her aunt suddenly died and she had a wake up call that life is short.

Jessica discovered the KonMari method which saved her from the burn out. She started looking at her life and seeing what things in her life that she spent her time and energy on sparked joy. Jessica shares that the KonMari method can be applied to not only your home but also your life.

Jessica went to a private school that cost $500,000. After grants, work study and an internship, she had to pay $300,000 out of pocket. When she finished her PGY2, she had $35,000-$40,000 in debt. Jessica was looking for another Japanese philosophy that she could use to take control of her finances and discovered the Kakeibo method which translates to “household ledger”. With this method, you track your spending with a pen and paper and break up your expenses into four categories: survival, optional, cultural and extra. Jessica reflects on her purchases each day to see where her money is going.

With this tracking system, Jessica was able to become very intentional with her spending, delay gratification by not purchasing items on a whim, and really put quality purchases and experiences in front of the quantity of them.

Mentioned on the Show

Episode Transcript

Tim Ulbrich: Hey, what’s up, everybody? Welcome to this week’s episode of the Your Financial Pharmacist podcast. It’s a pleasure to welcome back onto the show Dr. Jessica Louie. Dr. Louie came on in Episode 086 to talk about how to spark joy as an entrepreneur. And on today’s show, we talk more about her applications of the KonMari method and principles on her financial plan and the transformation that that has had. Jessica, welcome back to the show.

Jessica Louie: Thank you, Tim, for having me on the podcast.

Tim Ulbrich: Very excited. It’s been fun to track so much of what you have been doing in your own journey since Episode 086, so I look forward to bringing our audience up to speed as well as talking about some of the wins that you’ve had and how you’ve been able to tackle your own financial plan. So while I know that some of our audience is already familiar with your background from listening to Episode 086 or potentially following your podcast and the work that you’ve been doing, I certainly don’t want to make that assumption for all, considering that your background is such an important part of this story that led to the transformation that we’ll talk about in detail today on the show. So you do hold, as I mentioned in the introduction, you hold several roles, both as an entrepreneur and as a healthcare professional in the academic setting as well. So let’s start in the pharmacy space. What’s your current position at the university? And can you share about how you got into that work?

Jessica Louie: Yes, of course. So I currently am an associate professor of pharmacy practice at West Coast University School of Pharmacy in Los Angeles. And I’m a 2013 graduate from University of Southern California. And I then went on to pursue a PGY1 in pharmacy practice and then a PGY2 in critical care at University of Utah. And after I finished my residencies, I joined as an assistant professor at West Coast in 2015.

Tim Ulbrich: Awesome. So you know, as I think about, Jessica — and I know you and I have talked about this before offline, obviously you went to pharmacy school, we all know the work that needs to be done before you even get to pharmacy school. You then go through extensive residency training. And as you’ve talked about before, it took you nine years to get through the training and become a board-certified critical care pharmacist, which our listeners know it takes a lot of time, a lot of effort. But I think many people think, wow, you’ve got everything that you needed and you’ve wanted. You’ve got obviously the PharmD, you’ve got residency training, you’ve become board-certified, you finally have made it to the finish line, it’s time to enjoy life. But that really wasn’t what happened when you got to that point. You found yourself burned out. So talk to us more about how you got to that realization of getting to that point of getting burned out.

Jessica Louie: Yes, that’s a great observation, Tim. I think that a lot of us feel that when we get to the end of our training and we get all the certifications, you know, life is going to be great. We’re going to be happy and fulfilled by it. And I definitely felt that that was the path I was on. I was going to enjoy my life. So back in 2014-2015 when I was finishing up everything, I realized that getting to the finish line was not fulfilling. I was so burned out from residency, my first year in academia, and to cope with all of that, I was turning to other things. And one of the things I was turning towards was shopping to try to fill these feelings of frustration and unfulfillment. So you know, I’ve talked a little bit about my journey before, but basically, I wasn’t living intentionally, I wasn’t bringing joy into my life. So when a life event happened, it really woke me up to show me how I was living and how life can be so short. So I invested a lot of time, a lot of money, into changing my situation. And you know, that’s how it’s led into my business. And I can go into a little bit more details if you’d like.

Tim Ulbrich: Yeah, and we will — just real quick, we will link in our show notes to The Burnout Doctor podcast. I know you’ve documented more of your journey there, and I think our listeners, many of whom may be struggling with similar challenges, would get lots of value from not only hearing more about your story but also the great content and work that you’ve done with that podcast. So you mentioned some of the behaviors, you know, you mentioned the shopping piece that was really kind of a coping mechanism and that. How did you self-realize that, you know, something’s got to change? And then ultimately, talk to us about the KonMari method, what that is for our listeners that may not know and how that played such a big role in helping you get out of that cycle.

Jessica Louie: Yes. So I think that what really woke me up was the combination of a few things: realizing that I was still keeping residency hours during my first career. And you know, 60-80 hours a week wasn’t necessarily sustainable in the long term. And you know, one of the things that played into that was my partner and boyfriend was also in residency in medicine, so he was keeping long hours. So I realized, you know, maybe this isn’t normal in a full-time job situation. And I was putting work first all the time and still was not enjoying friends and family. And then when my aunt passed away suddenly from a very aggressive cancer, that’s really what woke me up and realized that wow, I really hadn’t been traveling and spending a lot of time with family that I really wanted to. So the KonMari method is what I consider saving me from a lot of my burnout. You know, it is a decluttering and simplifying technique, popularized in Japan by Marie Kondo. So it really is about how you spark joy in life and what you focus your time and energy on so that it is about decluttering a physical space first because that’s what is closest to you, that’s what has the largest impact on most people and can create a lot of distraction and overwhelm in your life. So you apply it to your home first, and then you’re able to apply the same techniques to other areas of your life. But you know, what made it a little bit more popular I would say is the technique creates this life-changing transformation because people don’t rebound when they go through the technique from beginning to end. So you’re not consistently organizing or hiring professional organizers multiple times in your life. You’re doing it once, however long it takes, one month, six months, a year, and then it really changes your habits of how you view physical items and that leads into how you spend your money and things like that.

Tim Ulbrich: So before we get into the weeds about the application of those principles to the financial plan — because I think that’s a really neat connection that those that are even familiar with the KonMari method may not see that. I know many people are aware of this through the Netflix series and others that came out. And I think people think about it — many people I think think about it more as just an organization, simplifying of your stuff at home, which obviously has impacts on your finances. But I think we’re going to talk in more details about how that can result in tracking spending and reflecting on spending. But for those that may not be as familiar, I want them to be able to visualize this, even about the physical space, before we talk about the financial aspects of it and how you apply to that. So if you’re working with somebody, and you’re going into the home and the goal is to simplify, walk us through like what does that process look like? And what are the common things that you see that are barriers that people may not even see themselves, right?

Jessica Louie: That’s a great question, Tim. So when I’m working with clients in their homes, the first step that I think a lot of people miss in the KonMari method is we don’t just start pulling things out and decluttering right away. We really take this intentional moment and my clients usually work on this as a pre-work in our workbooks to really set up the ideal vision for your life. So that’s what I call the Clarify step in my method. And you’re clarifying your why, your purpose, your values and really visualizing how you want your space to feel when you’re standing in it. So it’s not only about what it visually looks like because, you know, honestly, I don’t live in a Pinterest-worthy home or anything. And most of us don’t. So it’s more about what it feels to you when you’re standing there. And many people want that feeling to be calm, peaceful type of sanctuary in their home settings. So we’re really diving deep into that and getting into why you really want to get this done. You know, if you get stuck during the process, what’s going to help propel you forward? So we get that very well written down and on paper so it’s a good goal and very clear. And I think that you and Tim Church have talked about this as well with how you clarify in the financial process. So it’s very similar.

Tim Ulbrich: Ah, the ever-talked about why, right? We talk about that a lot on this show, as you mentioned, and I think it’s so important to the financial plan but also important here in what you’re talking about, certainly connections. And I know for you, speaking of the why, “Start With Why,” Simon Sinek’s book, which is such a great read, we’ll link to that in the show notes, was so critical for you in your own journey. So talk to us for a moment about that concept, the concept of start with why and why that’s so important as folks are thinking about this and how they may apply it to their own personal situation.
Jessica Louie: Yes. So Simon Sinek’s books are definitely transformative for me. It was actually my brother-in-law, who is a former pharmacist, who recommended them to me. It took about nine months for me to actually read them when he saw that I really needed that process. So Simon Sinek’s “Start with Why” process, he has three or four books now. And it’s really about we live life, and a lot of times, we live it on autopilot and we don’t realize a lot of things in our lives connect to one another and really sitting down and writing out how our life experiences have shaped us and getting clear on why we get up in the morning, that’s really what it comes down to. And we don’t get up in the morning for a tangible things like money and family members, we get up for a larger purpose that we won’t necessarily achieve in life but we have in the forefront of our mind when we’re making decisions. And that kind of plays into our value system and how we do things the way we do them. So I actually went and trained with Simon Sinek’s team in New York back a few years ago. So it was really helpful to get those down on paper so that what you do is not what you’re defined by. It’s why you do things and how you make decisions then. So I definitely recommend the process. It’s a great read. Also an audiobook as well. It’s really helped me in how I view life and then how I view leadership as well.

Tim Ulbrich: Absolutely. So good. And I know he’s got some really cool resources, obviously the book but also some workbooks and things that you can do that help you to articulate and go through the activities that will help you define your why. So important to everything we talk about on this show. So before we talk about the method and the steps of how you paid off your loans and have put yourself in the financial position that you’re in that I think our listeners will be able to apply as well to their own personal situation, let’s start with the position you were in. So talk to us about the debt that you accumulated through school and what was the amount that you were working with before we actually get into the how you paid that off.

Jessica Louie: Yes, definitely. So I will say that my dad was really influential in this. My dad is Chinese, and he actually kept all these Excel spreadsheets. So I actually have pretty exact numbers. So looking at it, so I went to a nonprofit private, so USC is private. And I was there for seven years for my bachelor’s degree and pharmacy school. So the school cost about $500,000. And I received $115,000 in school grants, so that’s money you don’t need to pay back. I took out $50,000 in student loans — so that was about $14,000 for undergrad. I spent three years getting my bachelor’s degree for that; I shortened it by a year intentionally — and $36,000 for pharmacy school. And then I rounded it off with about $40,000 in work-study and my intern pharmacist position at the hospital at USC. So out-of-pocket costs were just under $300,000 for my schooling.

Tim Ulbrich: Wow. Wow. So obviously big price sticker tag for what’s known as a great school, of course. And obviously, you mentioned having some grants, which is money you don’t have to pay back. You mentioned having some work-study components but still a huge out-of-pocket component. So when you found yourself — let’s fast forward and roughly, if you don’t have the exact numbers, but it sounds like maybe you do. You know, you’re at the point of graduation, you start one year of residency, two years of residency. Obviously, we’re talking big numbers, limited income during residency. So take us to the point where you finish your PGY2. Where were you at there at that point in terms of debt that you were working through and trying to pay off? And what was the mountain that you were after at that point?

Jessica Louie: So during residency, I was paying on my student loans. I wasn’t paying a large sum, I would say, but I still was paying probably about $300-500 a month, I would say.

Tim Ulbrich: OK.

Jessica Louie: And I came out, I want to say around $35,000-40,000 left. And after my PGY2 — so I started working in July of that year at the university. And it took me seven months to pay off the rest of the loan. So I want to say it was around $35,000 when I came out of residency.

Tim Ulbrich: OK. So even though — and I think it’s important for our listeners to hear that. You know, we obviously talk a lot about the national debt loads right now, Class of 2019, the average was about $172,000. So here we’re talking about a lower payoff amount but a very aggressive window in which you were able to do that. And obviously, we’ll talk about the method that you were able to do that. Short period of time, aggressive repayment, but there was also things that I don’t want our listeners to lose that you were able to do through working, through work-study, through pursuing grants that helped to minimize that while you were in school as well. So let’s talk about the method that you were able to use to help ultimately pay this off in an aggressive period of time based on the KonMari principles, the Kakebo method. Talk to us about what exactly is that? How is it used? And then we’ll dive in further of exactly how people may apply that month in and month out to their own plan.

Jessica Louie: Yes, of course. So you know the KonMari method is a Japanese philosophy, so I actually was also looking for all their philosophies, and I came across the Kakebo method. And you know, translated, it basically stands for “household ledger.” And it is a really simple philosophy and concept, in my opinion where you’re able to track your finances on this ledger. So you basically use pen and paper, going back old school, to track everything. And each month, you come up with a plan of what are your fixed expenses and you’re going to track everything that you spend money on. So I consider this a daily practice as part of my evening routines. And then you have a savings goal as well. And then at the end of the month, you look at how you did. And I also do a weekly practice to check in and then the end of month practice. So when you’re tracking, it’s not the typical tracking, I would say. It’s broken into four different pillars. So the pillars are Survival, Optional, Cultural, and Extra.

Tim Ulbrich: So you’re categorizing as you’re — let’s say you’re making charges on a credit card, those charges are coming in, you’re manually tracking those. And then you’re assigning those to one of the four categories. Is that accurate?

Jessica Louie: Yes.

Tim Ulbrich: OK. So break those down. Let’s go through those one-by-one. Survival, Optional, Cultural, Extra. So give me some examples — probably this one more self-explanatory than the others — but Survival items would include things like that?

Jessica Louie: So those would be things that you need to survive, so a lot of your fixed expenses, so your housing cost, if you have transportation costs, general food costs like groceries, and like health insurance, things like that. So things that are more difficult to change but things that are probably a large portion of your overall expenses.

Tim Ulbrich: So we often, as we’ve talked about budgeting before on the show, we would categorize these as necessary or essential expenses. So same idea. And I like to think, you know, making the connection here to something like an Emergency Fund, this is usually the number that I’m using when I think about 3-6 months of what I’m basing that off of. So that’s the survival category. What would you then put in the Optional category that I think we often refer to as the discretionary expense?

Jessica Louie: Yes, so these would be things that aren’t necessarily survival mode. So instead of groceries, this would be eating out, fast food, and those luxury type of expenses, so clothing that’s not necessary, skincare, nail salon, things like that.

Tim Ulbrich: OK. And what intrigued me is we — I see here that again, we have four buckets: Survival, Optional, Cultural, Extra. And when we tend to think of discretionary expenses, I see some crossover between the Optional and the Cultural bucket. So break down for us what would be some examples of things that would be in the cultural bucket. But why also is that important to separate that out from those things that are considered Optional?

Jessica Louie: Yes. So I think that the Cultural really plays into the Japanese philosophy of how we invest in ourselves, personal and professional development. So this is getting back into thinking about going to the theater and things like movies, music, that we consider more cultural nowadays. So it’s really about putting those experiences and memories into play. So the KonMari method really emphasizes creating memories and experiences in your life over investing in stuff. So this method also goes into that with how you view things that give back to your community or just have great memories that you don’t necessarily need to travel to.

Tim Ulbrich: I love that. I’ve never seen that separated out before, Jessica. But I love that because I think it does exactly what you just said is it forces you to be a little bit more intentional about prioritizing those things whereas I think especially if you’re in a mode of either trying to cut, cut, cut to pay off debt or you’re just a really aggressive saver and you have a hard time spending money on experiences and things like music and theater and books, things that would fall into that category, I like that there’s a manual process to keep yourself accountable to that and calling it out as a separate category. So that’s the cultural bucket. What would fall, then, into the Extra category?

Jessica Louie: So the Extra category would be kind of a sinking emergency fund. So these would be things that like unexpected car repairs, unexpected health things that come up that, you know — it can also be holiday gifts or gifts throughout the year that are just extra that aren’t always monthly expenses.

Tim Ulbrich: So car repairs, maintenance, gifts, holiday types of things. So are you saving for these in advance like in a sinking fund mode where you say, OK, I’m going to — I don’t know — put away $200 a month and then as these expenses come I already have the money saved? Or are you simply just tracking these expenses as the Extra category when they come to be?

Jessica Louie: So in the Kakebo, it’s really just about tracking. But you definitely can create those funds for you in different buckets.

Tim Ulbrich: OK. So each day, you’re tracking your spending, which I think what I love — and I hope our listeners are catching the intentionality here. When you’re doing this daily and you’re thinking about this daily, you’re manually tracking this daily, you’re doing it old school pen and paper, you know, I think there’s power — obviously there’s effort and work — but there’s power, as you and I talked about before we hit record today, in really making that emotional connection back to your financials. I think with the advancement obviously in credit cards and great apps and tools — and I’m not suggesting people shouldn’t use those if that works as a system, I know it does for my wife and I — but sometimes that manual process is really what allows you to take a step back and reflect on and have probably some of those Aha! moments of wow, I had no idea I was spending this much here or there. And I know my wife Jess and I often have conversations where it’s like, oh my gosh, we forgot we spent this charge four days ago and how quickly that can happen, and obviously the tracking helps bring that back into play, back into perspective. So each day, you’re tracking your spending, you’re categorizing them into these four different categories, Survival, Optional, Cultural, Extra. And then at the end of the day and the week, you’re reviewing them, end of the month, you’re asking questions such as how much do I have right now? How much am I spending? How much do I want to have? How can I change my habits? So give our listeners some reflection, some example. What are some of the things that you’ve identified or you and your boyfriend have identified as you’ve gone through this that might some of those Aha! moments that you wouldn’t have otherwise identified if you aren’t using a method like this.

Jessica Louie: So I think that just seeing it on paper can be really impactful because, you know, I do use credit cards and I rarely use cash. So it is being able to see that without just scrolling through an app on your phone or your desktop. So in terms of some Ahas!, I think that really seeing how much some of those luxury type of things cost, you know, I used to have my nails done at salons, I have since don’t do that almost at all and I learned how to do that at home if I really wanted to. And just seeing restaurants — so one of the things that we’ve talked about, my boyfriend and I, is when we go to restaurants, we love to have like a main meal together because we don’t cook very complex meals at home. We’re very simple at home, so we enjoy that at a restaurant, but we don’t indulge in extra things we can have at home. So beverages besides water, we don’t usually order. And we don’t usually order dessert or appetizers. So those are all things that we can just have at home if we really want to, make our own cocktails at home, have some desserts at home and not spend that extra money when we’re going out for an optional type of item.

Tim Ulbrich: OK. And I’m guessing there’s already tracking sheets and things that exist to help people do this. Or is that something that you developed to do this categorization?

Jessica Louie: Yes, so you can pull a journal out. I do have a template that walks you through this and reminds you. You can write down what you want in each of the four categories. So that’s all on my website, free to download in a short workbook. And it has the template in there.

Tim Ulbrich: Awesome. We’ll link to that in the show notes. And I’m curious to hear more, Jessica, from you on the reflection piece. I think we talk a lot about reflection, we know it’s important, you hear people say how valuable it is, but it’s often hard to put a finger on what does that look like? So talk to us, what does that look like for you? As you’re doing this reflection piece, like what are some of the things you’re reflecting upon? And how detailed is that method? Is there any guidance there? Or are you just looking and kind of making some observations and notes along the way?

Jessica Louie: So in terms of reflection, you know, it’s obviously adding up some of the categories and then putting numbers, real numbers down of what are you able to put into savings this month? What are you able to put towards your loans or other sinking funds that you have going? I also track other benefits like retirement benefits when I’m going through my monthly check-in process. But really for the reflection journaling process, I think that it’s important to think about the method really emphasizes being able to invest in quality items instead of the quantity of items. So it really helps you with that delayed gratification step of we’re saving towards something that is going to be a quality trip and experience for us or quality item that’s going to last years in our home or some other place in our lives. So you’re able to take a step back and say, “Oh, I really want that now. But we’re waiting and we’re going to have this anticipation up to getting that trip or thing in your life.”

Tim Ulbrich: Absolutely.

Jessica Louie: So one of the things that we’ve done is that relates to our cars. We’ve been able to — even though we would like to both have new cars, we’ve still delayed that gratification step because it’s still kind of an Optional category for us. It’s not a Survival category yet.

Tim Ulbrich: Yeah, I’m glad you brought that up. It’s such a richer experience when you save up for something, you think about it, you anticipate it, and then you enjoy it, knowing that you’ve had that much effort and intentionality along the way. I think that’s a great reminder for me and hopefully for our listeners as well. So a couple fun questions I have for you before we wrap up here. This has really been excellent. I know I’ve taken a lot away myself. You know, I have to ask you, as somebody who is running and created a podcast, The Burnout Doctor podcast, obviously we know that burnout and wellness is a big issue right now in our profession. Many are struggling. I can’t help but think here you are, working a busy, full-time academic job. And I know as myself as an academic, usually that’s not just a 40-hour a week job. You also have multiple businesses that you’re working on that I’m sure are taking up lots of time. You have these experiences that are important to you, obviously relationships that are important to you. So I’m assuming time is limited for you, and often you may find yourself in a position of being stressed and potentially burned out. So how do you functionally deal with that as somebody who teaches on this topic but obviously also needs to apply it in your own life?

Jessica Louie: That’s a great question, Tim. So I think you know, when you go through burnout, I don’t think that you ever solve it, you ever cure it. You really come up with strategies that are going to work in your life to really help you reset those feelings of burnout and make sure that it’s under control and you’re still thriving in life instead of just surviving. So what I teach my students as well and other pharmacists has been to come up with strategies where you are able to focus your energy levels because, you know, energy and time are some of our limited resources. So that’s really about — I focus really on the personal, what things you can control in your life versus outside things. A lot of people in the burnout world focus on organizations and leadership, but that’s really not my focus. So for me, it’s really focusing on how do I feel throughout the day? So that means that you’re time-blocking out your day and taking these intentional breaks every hour and getting up and moving. You’re really mastering transitions throughout the day to save up your energy levels. And when you’re not at work, you’re physically and mentally not cluttering your brain with thinking about work. So that means having healthy boundaries related to email and how you work and integrate your work into your life. And I think that’s been really helpful and that’s how you really align everything together in your life so you find harmony. So those are a couple things I do. I definitely go into individualized type of plans with my clients so that we can really figure out what’s going to work for them and really tackle the biggest struggle they’re having first before we tackle other items in their life.

Tim Ulbrich: That’s great stuff. And I hope, you know, for our listeners, one word of encouragement I would send out there, which I heard from what you just had mentioned, has been so important in my life is just starting with reflection. Like being aware and building some of that self-awareness of what are the moments where I’m carrying extra stress? Or what are the moments where I find myself, work is melding with home and cluttering my mind? And being able to feel those and identify those first obviously I think is such a critical step before you even put in solutions towards those. So I know you’re a big reader, and I know you draw from lots of different resources for inspiration. Is there a book or potentially two or something that you are currently reading, have read recently, that you’ve drawn inspiration from that you would recommend to our listeners?

Jessica Louie: So many great books, I would say. But I’m going to pull from not necessarily a business book. But I really have enjoyed Tonya Dalton’s “Joy of Missing Out” book. So if you’ve heard of the acronym JOMO versus FOMO, it’s really about how do you look at life and find joy in missing out on things and experiences that maybe you compare yourself to others. So I think it’s a great read. It has some very similar philosophies to the KonMari method and Simon Sinek and everything.

Tim Ulbrich: Awesome. I’m putting it on my GoodReads wishlist right now and on my Audible list as well. Thank you for that. So where can our listeners go to learn more about your work and connect with you?

Jessica Louie: So they can go to my website — it’s my name, Dr.JessicaLouie.com — and get free resources on The Burnout Doctor podcast. And I’ll be launching a free Master Class on five ways to cultivate joy at work this month as well. So you’ll be able to listen to that for free and see if one of the programs on burnout is something that you are interested in. My next 12-week program launches in March 2. So we’re taking applications now through March.

Tim Ulbrich: Great. So we will link your website in our show notes. And really appreciate 1, you coming on the show and taking time to share your journey but also, it’s been fun to watch from afar here in Ohio the great work that you’re doing in California, helping many, many pharmacists and professionals that are struggling with many of the things we talked about here on the show. And I continue to look forward to watching your success in the future. So thank you for taking time to come on the show. We really appreciate it. And to our listeners, as a reminder as always, if you like what you heard on this week’s episode of the podcast, we would really appreciate if you would take just a couple minutes to leave us a rating and review in iTunes, Apple podcasts, wherever you listen to your podcasts each and every week. As always, thank you for taking the time to join us on this week’s episode of the Your Financial Pharmacist podcast. And we look forward to having you back again next week. Have a great rest of your week.

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YFP 134: One Couple’s Coast FI Journey


One Couple’s Coast FI Journey

Cory & Cassie Jenks join Tim Ulbrich to share their specific path and plan towards achieving financial independence through a Coast FI approach. They talk about why and how they have aggressively saved for retirement early in their careers, how they have worked together to achieve their goals, and how Cory’s side hustle doing improv comedy has helped their financial plan all while filling a bucket of doing something he loves.

About Today’s Guests

Dr. Cory Jenks PharmD, BCPS, BCACP, earned his PharmD from the University of South Carolina in 2011 and completed a PGY1 residency at the Southern Arizona VA Healthcare System in 2012. His past pharmacy experience has included time as a retail pharmacist, outpatient clinical pharmacist, and inpatient clinical pharmacist. Currently, he practices as an Ambulatory Care Clinical Pharmacy Specialist where he applies his passion for lifestyle interventions in the management of chronic disease. Cory is also an accomplished improv comedian, having started on his comedy journey in 2013. Since then, Cory has coached, taught, and performed improv for thousands of people. His passion for improv comedy led him to start ImprovRx, where he provides seminars and workshops for businesses and healthcare organizations on applying the skills of improv comedy for their employees and leaders.

Dr. Cassie Jenks, DNP, earned her Bachelor’s Degree in Nursing from the University of Arizona in 2009, and her Master’s and Doctorate of Nursing Practice from the University of Arizona in 2015. She currently practices in the Outpatient Pulmonary Department at the Southern Arizona VA. Beyond her pulmonary practice, Cassie holds a Blue Belt in Brazilian Jiu Jitsu and loves pursing her passion for physical fitness and nutrition. She lives in Tucson with her (very handsome) husband and 20-month-old son.

Summary

Cory and Cassie Jenks share their unique journey to achieving financial independence through a modified Coast FI approach. Cory, a pharmacist at the VA, and Cassie, a Nurse Practitioner at the VA, were born in Tucson, Arizona and live there today. Cory became interested in personal finance when he came across the Mr. Money Moustache blog. He thought that they were doing a good job with their finances, but quickly realized there was a lot more they could be doing. Cory was empowered to dig into personal finance and saving for retirement and knew he was capable of learning it. This ultimately sparked his interest and really pushed him to focus on where their money was going.

Cory and Cassie are using a Coast FI approach to financial independence, which is a variation of FIRE (financial independence, retire early). A purist FIRE approach says that you should save enough for 25x your annual expenses which you can then withdraw indefinitely at a 4% rate. To get to that point, you have to work really hard for 10 to 20 years. Cory explains that FIRE is a very viable path and if they would have discovered it in their mid 20s before they had kids, they might have taken that approach.

After having a child, they realized that they wanted to spend as much time with him as possible. They worked with a financial planner previously who mentioned three different pathways to saving. One of those pathways sparked their interest and Cory later learned that they were using a Coast FI approach. Coast FI (financial independence) says that if you save enough at a high rate for a short period of time early on in your life and career, it’s going to have time to compound and grow to what it needs to be by the time you want to retire. This allows you to scale back your work, or stop entirely, and use your time in a different way. Cory and Cassie don’t want to hit a number and then completely stop working and contributing to retirement, however they do want to contribute less and work less while spending more time with family and doing things they really want to be doing. Cory and Cassie’s why behind pursuing this approach are that they want control and flexibility in their schedule and are ultimately seeking more time, not money.

To figure out your Coast FI number, look at your current spending and expenses to see what you need now vs what you may need in retirement. Currently, their savings plan will give them $80,000-$100,000 a year in income. They are saving for retirement by maxing out their thrift savings accounts, a backdoor Roth IRA account and they then put any excess into a tax brokerage account all while paying extra on their mortgage principal each month.

Mentioned on the Show

Episode Transcript

Tim Ulbrich: Hey, what’s up, everybody? Welcome to this week’s episode of the Your Financial Pharmacist podcast. Joining me today is Cassie and Cory Jenks to talk about their journey towards financial independence. Now we’ve talked before on this show about the Financial Independence Retire Early movement, aka the FIRE movement. And we did that in episodes 104 and 111. And we’re going to talk today with Cassie and Cory about a modified approach to FIRE, the Coast FI journey. And I think this is really going to resonate with many of our listeners that don’t want to necessarily grind it out with super aggressive saving rates for a long period of time but really also don’t want to follow a traditional path to retirement, which is work for 40+ years, save up a bunch of money, and then sail off into the sunset and hope there’s enough time and health to enjoy all that life has to offer. So Cassie and Cory, welcome to the Your Financial Pharmacist podcast.

Cory Jenks: Thanks so much for having us on.

Cassie Jenks: Yeah, thank you. We’re excited to be here.

Tim Ulbrich: I am excited as well. And I’m typically a ladies-first kind of guy, but I’m going to break that pattern today and Cory, have you introduce yourself first as you are the pharmacy representative here in the relationship. So give us a quick background on your path into pharmacy, where you went to school, and the current work that you’re doing.

Cory Jenks: Sure, well, I grew up — we live here in Tucson, and I grew up here in Tucson. And so I made the obvious choice of going across the country to the University of South Carolina for undergrad and pharmacy school. And so when I was there, I had chosen pharmacy as a path in high school, and so I picked my college based on the availability of a college of pharmacy. And really enjoyed my time as a Gamecock, and when I was finished, I realized that all of my family was here back home in Tucson. And as much as I loved it out in the southeast, I wanted to come back home. And so I came back to Tucson and did a residency here at the VA in Tucson. And I’ve been there ever since I graduated in 2011.

Tim Ulbrich: Awesome. So you have one of the highly sought-after VA jobs that I feel like many pharmacists — Tim Church, our very own at YFP, works at the VA in West Palm Beach, Florida, and loves it for many reasons. And I think it’s just such a good example of the level of practice that we often think of as the ideal level of practice for what a pharmacist should be doing. So Cassie, with that background, tell us a little bit about the work that you’re doing, your background, and a little bit about where you went to school.

Cassie Jenks: Sure. I’m also in healthcare, so I stayed here in Tucson. I went to the University of Arizona for my undergrad. And then got my bachelor’s of nursing in 2009. And after doing that for a few years, got a little restless. I toyed with the idea of med school but decided I wanted to have a life.

Cory Jenks: She met a strapping young pharmacy resident in 2012 that sort of —

Cassie Jenks: Yeah, met Cory —

Tim Ulbrich: That’ll happen.

Cassie Jenks: The year we met, I ended up starting grad school that year and became a nurse practitioner. And I finished with that in 2015. So I’m at the VA also, and I’ve been there pretty much since before I was even a nurse. So I’ve kind of grown up at the VA throughout my healthcare career.

Tim Ulbrich: So do you guys get to commute together or are schedules different enough that you’re kind of off sync with one another?

Cory Jenks: We had a good run of commuting. And then we had our first kid, and so the coordination of day care dropoff and pickup has sort of put a damper on the carpooling. But we did for a long time. And despite what many couples might experience, we actually really enjoyed the extra time together in the car. It’s something I kind of miss.

Tim Ulbrich: Awesome. And I was curious, we’re going to talk in a little bit later about cutting expenses and just curious if that was one area you were able to become more efficient on in terms of obviously gas and car maintenance. So let’s talk — before we dig into the Coast Fi and your journey to financial independence and how that differs from both the traditional, purist FIRE model as well as a more traditional retirement approach, I would love for our listeners to know why did you even become interested in this topic of personal finance to begin with? I’m always fascinated about where does this spark of an interest in this topic of money come from? Because I think you really see when people catch fire with this, it really just takes off. And often, in a couple, it can be for different reasons and maybe even different motivation levels, which is OK. So Cassie, why don’t you start? Talk to us a little bit about why and how you became interested in the topic of personal finance.

Cassie Jenks: Well, I’m going to have to give Cory some credit here. I hate to admit this ever. And especially so publicly. But he really started this for us when he came across the Mr. Money Mustache blog. He can tell you a little bit more about how he found that, but he kind of dove into that rabbit hole. And we both were always reading books and trying to learn new things, so whenever one of us learned something, the other person usually is at least willing to entertain the idea. So I started diving in myself, and it was kind of like a red pill moment. Once we started looking, we couldn’t stop.

Tim Ulbrich: So Cory, let’s talk about the triple M, the Mr. Money Mustache. So what was it about Mr. Money Mustache or even maybe some of what else you were reading that really ignited this passion to really get your financial house in order and then ultimately be on this path toward financial independence?

Cory Jenks: I think it was the gut punch of thinking that we were doing really well and realizing that there was so much more that we could be doing. We had worked with a financial adviser, and he actually had laid out — as we’ll talk about later — the different paths of savings. And so we were saving what we thought was well, and we had a couple vehicles we were using that maybe we regret, whole-life, for example, or high fee investment, after-tax investments. But it finally empowered me to feel like I can learn this. And so it’s just you read one article and then another, and it links to another blog that talks about it. And so from there, that like sparked our interest of wow, we’re spending — we’re saving “well,” but we could be saving so much more. And where is all of this money going that we work so hard to earn?

Cassie Jenks: Yeah.

Cory Jenks: And it was like a couple — it was like two periods. It was like the initial, this was 2017 of this freakout of like, oh my gosh, what are we doing? And then the sort of second impetus was as we got pregnant for the first time, thinking about moving to a new house, raising a family at a different place, we wanted to save for a down payment on our next house, and we looked down, and we’re like, well, we’ve read through Mr. Money Mustache, we’ve cut a lot of expenses, but where else is this money going that we’re going to save for our next house? And so it was just coming across YFP and any number of other different podcasts and books. And because we had done Mr. Money Mustache, it was a lot of library time. But.

Tim Ulbrich: Yeah, and I think you hit the nail on the head, you know, the magic question of where is all this money going? That’s what we hear a lot from people in our community. I know Jess and I often talk about that. We’ve talked and thought that in our own journey. And one of the other, Cassie, you said, and Cory, you alluded to, which I’ll ask you a question at the end about what are some of the recommended resources or books, but I sense from both of you really a passion to learn, you know, a passion to read, to read blogs, to read books, to listen to podcasts, and I think that’s such an important takeaway for our community that man, once you catch that fire, it is a rabbit hole that you go down. And I think that’s true of so many things in life. But here, we’re talking about really catching that personal finance fire to say, OK, what would financial independence mean for us as the Jenks, as a family, what would this mean for us? And what are we willing to sacrifice to get there? And what would that sacrifice look like? And how do we get on the same page of doing that? So let’s dig into your approach to financial independence, which we’re going to refer to here as the Coast FI journey. And we’re going to link to an article in the show notes. And we know that you’re taking a little bit different path and modifying it, but really going to compare that to a traditional kind of purist FIRE approach, and as I alluded to in the into, a typical traditional retirement savings model, which is really work for 40 years, maybe save 5%, 10%, 15% of your income and then hope, as I mentioned, that you’re happy and healthy enough to enjoy everything that life has to offer. So Cory, walk us through briefly — even though we’ve talked about it in previous episodes of the podcast — walk us through the purist FIRE approach. What is FIRE? And then what really differentiates the Coast FI path from that purist FIRE approach?

Cory Jenks: Yeah. So you’ve had a couple great guests talk about their FIRE journey. But it’s essentially Financially Independent Retire Early. So you save enough and the number that is commonly used is you save enough until you have 25 times your annual expenses and then theoretically, you can withdraw that indefinitely at a 4% rate. And to get there, basically you’re going to have to really bust it for 10-20 years, depending on what your savings rate, depending on what your own spending rate is. And as Mr. Money Mustache and hundreds of other bloggers and people have shown, it’s a very viable path. And I think that if we had found that in our mid-20s before kids, like, OK, we could have sucked it up and both worked full-time hardcore to get there. But then we had a kid and realized we want to have time with them, as much as he can be a little pain. And so I came across this idea of Coast FI. And so the FI being Financially Independent. And this says that you, if you save enough at a high rate for a short period of time early on in your life and career, you’re going to have the time and compound interest to have it grow to what you need it to be by the time you retire so that if you hit this Coast FI number, you can scale back the work you’re doing, you can take a job that has a little bit more risk, knowing that you don’t need to continue to contribute to your retirement in order to hit that number. Now I love how you like to personalize this idea of personal finance because traditional FIRE people would get angry at you for not just going all the way through and maybe Coast FI people would get angry at us because our version of it is to try to get to a number but then still work some in order to save some. I don’t think we want to hit a number and then stop. So our version is like to get to the number we want and then have the freedom to contribute a little bit less as our lifestyle changes with our family.

Tim Ulbrich: And I love, love that, the personal approach. I think for many pharmacists and maybe some heard our previous episodes about FIRE and said, ‘Hey, that’s me. I really want to be there. I want to aggressively save for 10 years, I want to get to this 25x income or the amount that I would need and do the 4% withdrawal and stop working because I either don’t like my job or want to do something else,’ whatever. But I think many others, what you’re describing here is what really would resonate as well to say, ‘Hey, I want to put myself in a position of financial independence. Maybe I even love my job, but you don’t know what life will throw at you.’ It could be that you want to have more time with family, it could be that eventually hours get cut or positions get cut or one spouse in a relationship wants to have an option to work part-time or there’s a sick family member, whatever, but you put yourself in a position because you’ve gotten to some point of financial independence that as I like to say, the exponential curve of savings takes off. And I know our listeners who are in the weeds of saving right now, especially in that first five to seven to 10 years, you know what I’m talking about where you’re saving, saving, saving, grinding it out. It feels like it’s not taking off from a compound interest standpoint. And then boom! All of a sudden that really starts growing and you see that exponential growth. So Cassie, what resonated with you about this model? And really, how did you buy into this as a vision for your family?

Cassie Jenks: So the interesting thing is way back when we thought we were making smart choices and working with a financial advisor, he presented us with three different saving strategies. One was the kind of middle-of-the-road standard, save a little every year until you’re retired, one was you wait way too long and then you have to save a bunch at the end, and then he showed us one where you save aggressive up front and then it was 0s from there down and you were done saving. And we both saw that and not even knowing anything about FIRE or Coast FI, we thought, that looks smart because we don’t know what’s going to happen in the future. So that’s almost kind of always been our mindset to begin with was always do as much as you can up front. And then as I got into my working career, like you said, it’s not about not liking your job or not wanting to work. I realized I want control. I want flexibility, and I want to be able to make decisions that are the best for my family right now. And so that’s where bringing in the concepts of FIRE and Coast really made that initial idea really turn into what it is now.

Cory Jenks: Yeah, we were like accidentally Coast FI. Like we were doing this thing that we had not labeled on the Internet yet. And so I happened to come across this article about Coast FI, and I was like, “Honey, I think this is what we’re doing and now there’s a label for it.”

Tim Ulbrich: That’s awesome. You should have branded it back then.

Cassie Jenks: Totally.

Tim Ulbrich: So you know, Cassie, one of the things that you mentioned when you met with the advisor that presented three different options, you know, the one that really resonated with you guys was aggressive upfront savings and then you can obviously continue to save, but you really could take the heat off in terms of needing to continue to save at that rate. And I think while that may resonate with many because obviously our listeners are very well educated on compound interest and time-value of money and the earlier you save, the better, the two biggest barriers I typically see to being able to do that model as it’s presented to them are student loans and that they may be in a home position that is sucking up such a big percentage of their income. So talk to us about those two areas for you guys: student loans and then ultimately the home — and I’m guessing maybe there’s some lessons here learned as well along your journey. But how have you been able to do that, despite what many pharmacists are facing, typically in high student loan debt as well as usually home expenses that certainly eat into that available income?

Cassie Jenks: So for the home expenses, I believe it was 2017, Cory did an Excel spreadsheet. And we looked at where every single penny we spent went, kind of coming back to what we were talking about earlier, where does your money go? And that was when we really started dialing down our home expenses. And we looked at all the places where we were spending money that wasn’t adding value to our life. So we stopped buying books and started going to the library. We started getting less expensive haircuts.

Cory Jenks: Cassie doesn’t charge me anything for my haircuts now.

Cassie Jenks: Yeah, I cut Cory’s hair now.

Cory Jenks: Huge savings.

Cassie Jenks: You know, they sound like little things. But we cut our phone bill, and we got rid of cable. And when we started adding all this up, it really changed our monthly expenses dramatically.

Cory Jenks: Yeah, there were a couple missteps when it comes to our housing and our student loans. I guess chronologically, I, again, am a proud Gamecock for life. But my dad teaches at the University of Arizona, not in the College of Pharmacy, but I could have had significantly reduced tuition. But they wanted me to go out of state, and so I did. And those were back in the good old days when it was only $100,000 of student loan debt that I had coming out.

Tim Ulbrich: So Cory, I think as I understand, working with the VA really afforded you an opportunity to have some of your student loans, even though you went to an out-of-state institution, had a cheaper option available, really afforded you the opportunity to be able to take some of the weight off your shoulders so that you could free up income to do other things. So tell us a little bit about what the VA provided for you in terms of student loan forgiveness.

Cory Jenks: Yeah, I was very fortunate at the time that they were offering student loan reduction program. It’s EDRP, Education Debt Reduction Program, that basically you give them your student loan debt, and they give you an amount that if you work for five years, you get x amount per year that you work. It’s an incentive to keep you employed at that particular institution. So I was fortunate enough to get that, and that really helped to cut down on my student loan burden, obviously, and I’m very fortunate to have gotten it. And so I was able to pay my loans off by 2017 I think they were totally gone. And so when you take that amount out every month, it really frees up what you have to work towards a goal like this. And for Cassie, her nurse prac school, we almost cash flowed that. She came out with like $7,000 or $8,000 of student loan debt. So that was another fortunate thing where we found each other and were able to help each other out in our journey. Once she was out and making full-time prac salary, we didn’t have that burden of her loans.

Tim Ulbrich: I love the ‘nurse prac’ lingo. I’ve never heard that before, but I feel like I’m in the club now. So that’s good.

Cassie Jenks: Nurse practitioner is just such a mouthful.

Tim Ulbrich: Yes, right? So we’ve established with this model what worked for you guys is really saying, OK, we’re going to aggressively save up — not to the level of a traditional FIRE purist approach but more so than a we’re going to save a small percentage over 40 years, we’re going to save more up front, we’re going to let that really accrue in a short period of time, and then of course, we’re going to allow compound interest to continue to do its thing over your career so you can achieve your goals but also have options to reduce hours, change jobs, stay the course, whatever. But you’re in a position of decision-making. And we established that what, in part, allowed you to do that was putting yourself in a position obviously from student loans, we talked about some of the home buying, so I want to get in the weeds a little bit more, Cory. Can you talk to us about some more details of what is your savings goal? How did you determine that number for our listeners that are maybe trying to figure out OK, what does this look like? Where do I begin? And where are you saving that money? Because I know that’s obviously a point of interest and hey, I’ve got lots of different options and should I do this in traditional retirement accounts or brokerage accounts? So talk to us a little bit more about the specifics.

Cory Jenks: Yeah. I think what we did when we were trying to figure out our “Coast FI number” was to look at what our current spending rate is now and adjust around within our budget — we meet every month and have a little budget party — and so look at what our expenses we will have now, what our expenses we likely won’t have at our time of retirement, and just come up with a number. And then we padded some to that just assuming there could be other things that we want to do or will come up. So that’s where we came up with our number of somewhere between $80,000-100,000 a year of income in retirement, which is more than we spend now. But no one’s going to be upset having a little bit more than they need. And so that’s where we came up with that number. And of course, we haven’t heard the YFP Crystal Ball segment yet, so we don’t know what life is going to be like in 30 years. So this is our best guess, our best idea of what we’ll need.

Tim Ulbrich: Sure.

Cory Jenks: And so what we do to save, we maximize our Thrift Savings Plans, which is the government word for 401k. And we also utilize backdoor Roth IRAs and any excess that we have, we just put into an after-tax brokerage account at Vanguard in just the total stock market fund. And that way, for us, that’s our other — when there’s nowhere else to put it in a tax-advantaged place or retirement-advantaged place, we put it into Vanguard. And then something that isn’t necessarily “saving,” but we do pay down our mortgage principal extra every month as well.

Tim Ulbrich: Awesome. Yeah, I was just trying to kind of figure out — and I think this helps our listeners, you know, if you think about a traditional 401k or here a TSP, we’re looking at $19,000 a year. You think about a backdoor Roth IRA is $6,000 per year per individual. We’re going to see those go up obviously in 2020, but here we’re talking about 2019. So you start to put the numbers together, and you guys are making big savings progress, obviously those are big numbers, it’s a big chunk of your income, but it’s not the massive percentages that you see in a traditional FIRE type of model. So I think that really highlights the differences in what we’re talking about here. So I want to dig in, Cassie, to a little bit more of the why. And we’ve dodged around it a little bit, you’ve mentioned obviously for you guys a pivotal moment was the birth of your son. But talk to us a little bit more about your why, your motivation for achieving financial independence and really trying to get to this point of what’s behind the effort and at some level, the grind of both cutting expenses as well as aggressively savings, which means that you’re of course giving up some things in the short term. So talk to us a little bit about what really resonates for you, what’s most important, and then how did you and Cory have this conversation and ultimately get on the same page?

Cassie Jenks: Probably the word that would sum it up the best is control, getting to have control over how you spend your day, how you spend your time. I’ve always just not understood this idea that we’re all supposed to work 40 hours a week. It just didn’t ever make sense to me. And being able to pursue other passions, there’s things we both — we don’t dislike our jobs, but there’s things we really want to do that we can’t fit into the weekends and hobbies we want to pursue. Having time for family I think most people probably resonate with that.

Tim Ulbrich: Totally.

Cassie Jenks: Getting a balance of feeling like we are raising our child but also getting to be productive employees at the same time.

Tim Ulbrich: And Cory, what about for you?

Cory Jenks: Yeah, I think that the ultimate commodity we’re saving is not money. It’s time. And when you kind of lay out, we’re weirdos. We do a budget, but we also do a time budget every month, and so we sit down on our calendar and we have our friends that we want to see every month, we have family, we have — like Cassie said — our different hobbies and pursuits. There’s not a whole lot of other time left over after five days a week of work. And so to us, we use the term sacrificing. I think Cassie and I, we talk a lot about the gratitude is a word we throw around a lot, the idea of wanting to work less is not that we’re not grateful for all that we have, but we are very fortunate in the jobs that we pursued. My parents were both teachers, her father was in the military, so we grew up quite middle class. And so we’re very fortunate to what we have. So it’s to have that time, but it really doesn’t for us feel like it’s a sacrifice. I think we’re fortunate we found each other and that we have very similar values, dreams, ideas about money. And we frame it, we take care of veterans every day. They’ve had much rougher days at work than we’ve had. Our grandparents grew up in the depression, and they had to be frugal out of necessity, and we’re fortunate to be frugal out of kind of the privileged world that we live in now. And so when we frame it like that, it doesn’t feel like a sacrifice. And then the ultimate goal or endpoint of that is to have more time with the people we care about and to do the other pursuits aside from our 9-5 day jobs that we care about.

Tim Ulbrich: Yeah, I really admire, Cory and Cassie, just — I respect and understand that you guys are on the same page with this, which is awesome. When two people really come together and they have a vision and you start to execute it but also don’t want our listeners to take for granted that this is hard. Two people, even when you’re often on the same page, you know, we know the friction money can cause. And I sense very much for the two of you an openness of conversation, a willingness to work to get there. And I think it’s such a reminder for me and Jess and for our listeners that it’s so fruitful when you can have those really big conversations. And then the budget, the month-to-month, really becomes an execution of the vision. And I think that’s when things start to get I guess “fun.” I don’t know if we ever use fun and budget in the same sentence. But budgeting can be such a grind. But when we’re talking about things like gratitude and really being able to capture more time and really establishing more of that family atmosphere and thinking about the next generation, and that’s what gets me excited is your 18-month-old, the position that you’re going to put your family in going forward because of all the things that you’re setting up but also everything that he’s going to observe throughout this journey, said and unsaid, is really incredible and inspiring to hear. Now, I do have to ask, Cassie, I have heard Cory say “budget party,” and I’ve heard him talk about spreadsheets. So complete nerd, obviously, of course. You know, does that resonate with you? Or for maybe some of our listeners where maybe they’re married to a financial nerd, but that’s not them. What advice would you have in terms of how someone who maybe isn’t that budget part of your spreadsheet person can really come into the fold and make sure this is a priority to the couple?

Cassie Jenks: I think talking about the why is really what gets us on the same page. I have to admit, I do kind of love spreadsheets myself.

Tim Ulbrich: OK, OK.

Cassie Jenks: But —

Cory Jenks: She also loves dark chocolate, so I get a bar of that out and it’s not hard to get her in front of that computer.

Cassie Jenks: Make your budget party fun. Like we sit down on the couch together, we have a little treat. And like Cory said, it’s our financial budget, but it’s our time budget. So we get excited making up our plans. But for us, I think what works is just that openness that everybody has to navigate finances in the relationship in a way that works for you. I totally respect that. But what’s worked for us is we know every dollar each other spends. Every account is shared, there’s really nothing hidden between us. So we have a lot of accountability. There have definitely been times where I have — I’m a little bit more of a spender than Cory. I’m not a heavy spender, but there’s times when I have an impulse to buy something. And I think, he’s going to see that, can I really justify needing this purchase right now? And that’s worked for us because we’re comfortable with that accountability together.

Tim Ulbrich: And I think it’s important for our listeners to hear in your story that it’s not just all a grind, but I sense that the two of you are having fun along the way. And it’s not just all delayed gratification. I mean, that’s a big part of it, but it’s not no fun today and all fun later. So I think one great example of that is, you know, especially the year the two of you had in 2016, which was a 30-for-30 year. Can you talk to us a little bit about that? I think that’s such a great example of having fun along the way.

Cory Jenks: Yeah. So in 2016, if anyone wants to guess our age, we turned 30 in 2016. And we were kid-free, dual income, feeling pretty good. And we wanted to do something special for turning 30 to commemorate it. And my dad — I have to give him credit — came up with this idea probably after watching ESPN of like 30-for-30. Do 30 fun, interesting things over your 30th year. Now, for us, there was some really nice trips. There was also some trips to museums, some hikes around Tucson. But it really was a special year, and as a lifelong Cubs fan and somehow who she married into it, we ended up going to a World Series game because — and we didn’t go into debt for it. We were financially prepared for it. So it was a year that allowed us a lot of fun, but it wasn’t something we look back on with regret financially. We loved every minute of it.

Tim Ulbrich: And I think for — as I heard of that and I’m guessing our listeners think the same thing, you know, that concept can be done in a very inexpensive or a very, very, very expensive way, right? I think it’s to be just as much about the memories and the planning and the fun and could be day trips, it could be something more extravagant. But I love the creativity and really making that a priority for your family. And I’m guessing you guys have a vision to do something similar as your family continues to grow. Cory, I want to ask you about your side hustle because we talk about side hustles a lot on this show, and I think you have a really unique side hustle doing improv comedy. Talk to us a little bit about that, where the motivation, where the inspiration comes from, and where you’re currently doing this work?

Cory Jenks: Yeah, so I’ve always enjoyed comedy. I watched a lot of Saturday Night Live and Simpsons as a kid. And in pharmacy school, there was an improv group at the University of South Carolina, but I was just very focused on school at the time. And so once I finished my residency, was dating Cassie, she got me an improv class through a local theater here in Tucson back in 2013. And I just did it and loved it and kept doing it. And have taught, performed, coached it. But something that really sticks out for me is that the tools of improvisation: listening, communication, teamwork, are all things that as pharmacists, healthcare providers — Cassie’s done the classes too — they’re useful and really help you connect with your patients, help you get the most out of what can be really frustrating work environments. And so doing this now for seven years, I was like, pharmacists should do this. And I’m fortunate enough to help teach a section of it here at the University of Arizona. But my side hustle now, ImprovRx, is taking this to other healthcare organizations, other colleges, other businesses, trying to teach people these tools because love it or hate it — I think we have great intergenerational workforces, but I think millennials, which Cassie and I are a part of, the generation below us and every generation can use an improvement on these skills. And not to stereotype pharmacists or pharmacy students, but we’re generally kind of Type A people.

Tim Ulbrich: Just a little bit.

Cory Jenks: Just a little bit. We were talking about how much fun spreadsheets were just a couple of minutes ago. So I’m going and I’m doing this and I’m teaching this to other organizations and in students. And I’m getting a lot of really interesting and fun feedback from people who are like, oh my gosh, yeah, you could use this to be a better listener for a patient because, you know, when it comes down to it, we can’t control a lot of our work environments. But if you can be a better listener for a patient one day, if you could be a great team member on your healthcare team, be an ear, be a better empathizer, it’s a really great tool. So that’s kind of what I’m working on right now. And it’s really exciting to get to share that.

Tim Ulbrich: I love that. And I think that’s such a great example we talk about with side hustles — and shoutout to Tim Church, he does a great job with this on our side hustle series. But I think the best side hustles are those that certainly there’s a financial piece, it helps you accelerate your goals, but it’s those things that really hit into a spot that gives you that fulfillment and allows you to serve and meet others and really identify an area that you’re passionate about but also you can essentially generate some income and make a business opportunity out of that. So I think that’s just a great example of that. Great work on what you’ve done. And I’m guessing we may have some people listening, whether it’s from colleges of pharmacy, state organizations, companies, that say, “Hey, I want to work with Cory. I want to learn more about what he’s doing with ImprovRx,” or maybe just has a question about something we’ve talked about here tonight on the show with Coast FI or what does your budgeting process look like. So where can our listeners get in touch with you if they have additional questions?

Cory Jenks: Well, I am on LinkedIn, so my name will be spelled in the show notes there. I’m also on Twitter, @CoryJenksPharmD, and then my Instagram’s more of a fun place, so it’s @pharmacomedian.

Tim Ulbrich: Love that.

Cory Jenks: And then Cassie, you’re on Twitter as well.

Cassie Jenks: I’m on, yeah, Twitter and Facebook and Instagram as —

Cory Jenks: @NPCassieJenks.

Cassie Jenks: @NPCassieJenks, yeah.

Cory Jenks: But we love talking about this stuff, whether it’s improvisation, finance, working in healthcare, it’s a really cool world we live in where I can send YFP an email saying, “Here’s a cool article about what I think my wife and I are doing.”

Tim Ulbrich: I know, right?

Cory Jenks: And we get to share that. And I think that’s really special. We really appreciate this opportunity to share our little slice of financial life with folks.

Tim Ulbrich: And I appreciate that. I’m not going to let you off the hook, though. You’re both readers, and I’m a big reader, and I’m building my 2020 reading list. So I need a book recommendation from each of you. What have you read recently that, you know, you just said, “Hey, this is a home run,” or maybe something you’re currently reading that you’re drawing inspiration from?

Cory Jenks: Alright, well, one of the books that I read at the beginning of 2020 was called “Atomic Habits.” And it’s a great book about how to break down habits — it’s not even about setting goals, it’s just kind of tricking yourself into having a better process with going about achieving your different goals. From that, I’ve developed a system for like a To-Do list that he mentions. It’s called an Eisenhower Box. People can Google it on their own time. But it’s really helped me organize all the different facets of my life, and I kind of get hung up in all of the different minutiae that can slow you down and send you into wormholes.

Tim Ulbrich: Love it. Cassie, what about you?

Cassie Jenks: Well, I have to say that Cory gave me this suggestion, so I have to give him a little credit here. But “Your Money or Your Life,” fantastic book that really dives into how much time you have to spend to make all the purchases you make in your life and to really reframe how we think about money and thinking of it more as currency of time than anything else. And that probably really drove home for me our why and what we’re trying to do with our financial journey.

Tim Ulbrich: Awesome. Great recommendations. We’ll link to both of those in the show notes. Cory and Cassie, thank you so much for taking time to come on the show to share your journey, share your why for what you’re doing here with the Coast FI, and I think just a different perspective for our audience to consider. I know you have inspired me, and I’m confident you’re going to do the same for our community. So thank you so much for coming on the show.

Cory Jenks: Certainly.

Cassie Jenks: Yeah, thank you.

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YFP 133: Your Financial Toolkit for a Successful 2020


Your Financial Toolkit for a Successful 2020

On the first episode of the New Year, Tim Ulbrich talks about 5 ways you can accelerate your financial plan in 2020. This episode is full of resources you can use to put these ideas into action.

Summary

Tim Ulbrich shares five tangible ways you can crush 2020 in this week’s episode.

1. Get Clearer on the So What

Getting clearer on the “so what” pushes you to dig deeper into finding your why. Why are you focusing on your financial plan or financial goals for 2020? Is it because you are wanting to create flexibility in your job or time? Are you wanting to radically give? Are you hoping to have more control or choice in your life?

2. Build or Modify the Road Map to Achieve Your Goals

When you are clear on your purpose, it’s time to put your plan in place. Without a monthly plan, it’s easy to find yourself in a position where your financial plan is happening to you rather than the other way around. Creating a plan and executing your budget are key.

3. Get a Side Hustle off the Ground

Having a side hustle isn’t only a way to bring in additional income to accelerate your financial goals, but it also allows you to fill the creative expression you might be craving. Plus, it can also satisfy that entrepreneurial itch you may have! If you have an idea in place, what barriers are you facing on taking it to the next level? If you don’t have any ideas on what your side hustle could be, what’s one next step you can take to figure it out?

4. Set One Stretch Goal for 2020

A stretch goal is one that seems out of reach, but you’d absolutely love it if you could achieve it. These types of goals allow you to think beyond what’s possible. Set one big, audacious stretch goal for 2020 and focus on visualizing it into action.

5. Get a Coach

The value of a financial planner isn’t in choosing the right investments or allowing you to have the best return as you can ultimately learn anything online now. Instead, a financial planner carries the most value as being your accountability partner and coach. They help to see the bigger picture of what you’re wanting to achieve and help get you there.

Mentioned on the Show

Episode Transcript

Tim Ulbrich: Hey, what’s up, everybody? Tim Ulbrich here, and excited to turn the page on the new year and a new decade. Wow, hard to believe here we are at the start of 2020. Now, I don’t know about you, but I’m over the whole 20/20 vision thing. That seems to be trending over the past several years leading up to this year. So I’m going to spare you any of the cheesy references to having 20/20 vision or having a clear vision for the future. But we are going to talk about five tangible ways that you can crush 2020 and accelerate your financial plan. Now, many of these things we have talked about before on the show. However, I don’t know about you, but I know for me, sometimes it’s helpful to hear things more than once or presented in a different way. As I mentioned in the introduction, we have an awesome giveaway to go along with this episode to kick off the new year the right way. And for me and my financial plan, finding great resources and tools has been a big part of the success and of the learning along the way. So again, this giveaway includes five winners. We’re giving away for each of those winners a one-year YNAB subscription, a copy of “Your Best Year Ever” by Michael Hyatt, and a copy of “100 Side Hustles” by Chris Guillebeau. So if you’re interested in that awesome giveaway, head on over to YourFinancialPharmacist.com/giveaway, and you can enter to have a chance to win.

OK, in somewhat of a rapid-fire format, I’m going to walk through these five things, five steps that I think you can take sooner rather than later to make 2020 an awesome year and accelerate your financial plan. So let’s jump right in.

No. 1, get clear on the so what. No. 1 here, get clear on the so what. So you’ve likely heard us talk about before several times on the show about finding your financial why. And that is exactly what we are talking about here in point No. 1. Why does this topic of money even matter to you? It sounds like such a simple question. But if you have thought about this in depth before, you know it is not that simple. This is really the “So what?” question. So before we get too deep into the x’s and o’s of whether it’s budgeting or paying off debt, loan repayment strategies, how to save for the future and think about asset allocation, nerding out about compound growth and real estate investing, all of these different things, this question is “So what?” Why does this even matter? When we talk about financial freedom, why does financial freedom matter? What does this mean to you? What is the ultimate goal of achieving this path?

So to give you an idea of a few things that you may have heard myself, Tim Baker, Tim Church or other guests on the show talk about when it comes to finding your financial why or really answering this question of “So what?,” it’s things that we have heard before like to have flexibility over how you’re spending time or even how you’re spending your money, to be in a position of control, to be in a position of choice, to be able to achieve goals around giving, or to be able to radically give, to put yourself in a position to leave a legacy, to travel and see the world without worry or stress or regret. Maybe it’s to start a business or a movement or a foundation or a charity. So these are some ideas of the bigger the vision in terms of the “So what?” question that we talk so often about on the show. So yeah, we can do a nest egg calculation and figure out how much you need to get to the point of retirement or we can talk about how to aggressively pay off $150,000 or $200,000 of student loan debt. We can talk about how to set up a budget and exactly what a zero-based budget looks like. But what is the ultimate goal of doing this? And that is exactly what we’re talking about here in point No. 1 of getting clear on the “So what?”

So my question here for you today as we roll the calendar into 2020 is what is your financial why? What is your “So what?” And how do you get to the point of defining this if you haven’t yet done this? And so to help you get to that point, I’d recommend if you haven’t already listened to episodes 032 and 033, Tim Baker talks with Jess and I about this concept of finding your financial why. So again, that’s episodes 032 and 033 of which we’ll link to in the show notes. I would also recommend — again, we’ll link in the show notes — there are three life planning questions that we’ve referenced before on this show. These are really big questions, big philosophical questions that are designed to help you answer this question of this “So what?,” finding your financial why. So we’ll link to those questions, the article about those questions, that you can spend some time answering those.

And so my request for you here today, as we enter this new year, which is an opportunity to really set a new path forward, is to put your “So what?” or put your why on paper, say it out loud, and share it with those closest to you. And then revisit this often. So again, I know it’s so easy to want to jump into the specifics of what’s in front of you right now, whether that’s the budget, whether that’s making that next payment, whatever it would be. But really taking a few moments to take a step back if you have not done this before, and to put down on paper your “So what?,” your why, say it out loud, share it with those closest to you, and revisit that often. So that’s No. 1 here, getting clear on the “So what?”

No. 2, build or modify the road map to achieve your goals. Build or modify the road map to achieve your goals. So once you get clear on the purpose, the “So what?” or the why, it’s time to put a monthly plan in place that will simply be the execution plan to see that your goals and vision become a reality. And that’s essentially the budget, the spending plan, and that’s how I like to think of the budget. It’s not necessarily overly complicated, overwhelming, restrictive, do I have to? type of activity, but rather it’s the execution plan of your goals. And we all know how months and at times, years, can fly by. I’m certainly feeling that lately with four young children. And without a monthly road map, without a monthly plan, without a monthly budget, it’s easy to find yourself in a position where your financial plan is happening to you rather than you dictating and directing what your plan is. You know, and credit here to Tim Baker. He does such a great job of this when he’s doing financial planning with clients — and I know I can speak to this firsthand with the planning he has done with Jess and I — one of the very first activities we did is that “So what?,” that why activity and really identifying what’s most important to us. And if we fast forward five or 10 years, you know, what should be happening that we would say, “You know what, things are going well, things are a success when it comes to making sure that we’re spending our money in the places that matter the most to us.” And then we really get into the spending plan and the budget. But he often then comes back to say, “OK, here’s where you’re spending the money. Here’s the budget. But here was the ‘So what?,’ the why we talked about. And does this picture, does this vision, align?” And often what we see is that again, it’s easy that time goes by quickly, it’s easy to get caught up in the month-to-month and sure enough, soon we find ourself in a different direction where the spending plan isn’t necessarily aligned with the vision and the goals. And I think that’s really one of the many values of having a coach in your corner to keep you on track.

So for those of you looking to either start, restart, reinvigorate, refresh your budget, I would encourage you to check out a few different resources: Episode 028 of this podcast, we talked about a budget, just actually I think two years ago. It was called “New Year, New Budget.” We also have a great article that walks you step-by-step, including a budget template that you can download. And that article is “Five Steps to Creating Your Best Budget.” We’ll link to that in the show notes. And then as a next step, as a follow-up once you get that budget template in place, in Episode 057, we talked extensively about how you automate your financial plan. So once you have that plan set, then how do you make sure that is happening each and every month and ultimately getting your own self out of the way so you can ensure success with that plan you set.

So you know, some resources here, obviously we’re highlighting one in our giveaway, and that’s the You Need a Budget software, relatively inexpensive. So whether it’s You Need a Budget, whether it’s another paid budgeting service like Envelopes, there’s certainly several others that are out there or maybe it’s a free tool like Mint.com, maybe it’s an old school spreadsheet that you do this manually, whatever the resource would be, it’s about finding a system that works for you. And so I would encourage you to check out our budget template, YourFinancialPharmacist.com/budget, you can download for free a zero-based budgeting template. And then that will help you get started. And then you can automate that into whatever tool works best for you. I would also point out — and credit here goes to Tim Church — we recently released a great tool that is essentially a financial checkup, financial assessment to see how you’re doing overall with your personal financial plan. So if you go to YourFinancialPharmacist.com, you’ll see that there on the main page. You can go through a series of some quick questions. Tim Church has done a great job of making that easy, quick, he’s put some humor in there. And then essentially, that will help you identify what are the areas that need the most attention when it comes to your financial plan. So if you’re trying to think about does my budget really reflect the areas that I need to be thinking about that may need the most attention, that tool will really help get you there. So again, if you go to YourFinancialPharmacist.com, you’ll see there that we have a tool — and we’ll link to it in the show notes as well — that will help you essentially do your financial fitness test is what we’re referring to.

OK, so that’s No. 2. And that is No. 2, build or modify the road map to achieve your goals.

No. 3 is get a side hustle off the ground. And again, that’s a book here that we’re highlighting as a resource and a giveaway. So yes, yes, the side hustle is by far one of the trendiest movements of the last decade or so and certainly something that we’ve been talking about extensively over the past couple years. So if you’ve been a part of our community for awhile, whether it’s on the podcast, in the blogs, in the Facebook group, you’ve probably heard us talk about side hustles and you know that we have a love for side hustles. And we think that for many, side hustles are a way to not only bring in additional income so that you can accelerate your financial goals and achieving those goals but also allows you to have a creative expression and allows you to work on something that is a passion of yours beyond the traditional 9-5 type of work. And so I think for many, I know this is true for myself, this can really satisfy the entrepreneurial itch that you might have but also can help you achieve your financial goals even faster. And we’ve got some great stories, people in this community that we’ve featured on the podcast, that people have started part-time side hustles and ultimately have turned those into full-time gigs, people that are continuing to do part-time gigs while they’re working full-time and is just something that they really love, but they’ve used it as a way to generate additional income. So I’d love to see when pharmacists are able to leverage the expertise and passion they have in their field and fill the needs that they’re seeing and their patience with the creation of a side hustle as well.

So a couple resources I would mention here. Episode 063 of the podcast — again, we’ll link to these in the show notes — we did an introduction to the side hustle series. Again, Tim Church did this, has done a great job with this. Episode 126, recently published, Brittany Hoffman-Eubanks is a great example. That episode is called “Going Beyond Six Figures Through Medical Writing,” has done a great job of really starting and scaling a side hustle business. And then recently, Eric Christianson came on the show, creator of Med Ed 101, in Episode 131 to talk about the secrets to building a successful side hustle. I would also obviously point you to the resource we have highlighted in our giveaway, “100 Side Hustles: Unexpected Ideas for Making Extra Money Without Quitting Your Day Job,” and that’s by Chris Guillebeau.

So my call to action here for you, my hopefully motivation to get you going in this area if this is something that you’ve thought about. For those that have already have a side hustle in place, you know, have you validated the idea and the business need? And if so, what’s the game plan to grow it? So maybe some of you have started something and for whatever reason, it stayed status quo and you feel like it’s been a good idea but you’re in somewhat of an autopilot mode. Have you validated the idea and the need for that business or that side hustle? If not, what’s the game plan to validate that? How could you do that? And if you have done that, what’s keeping you back from growing that? And what’s the game plan to really grow and scale that? Now, for those that have an idea but have not started the side hustle, what is holding you back? That’s really the question I want you to reflect upon. Have you identified whatever that barrier may be? And what will it take to knock down that barrier? Maybe it’s even multiple barriers that are in place. And who is going to keep you accountable to moving forward? So I think I felt this when I started Your Financial Pharmacist back in 2015. I know at first when you have an idea, you tend to want to keep it quiet and you’re not sure if it’s going to work and you’re not sure what other people will think. But I think there’s real value in talking it out loud with people that you trust and respect their perspective that not only can help you think through the idea but also can help you keep you accountable moving forward to get that off the ground, encourage you, and even to challenge you in a positive way. And I think that ultimately will make your idea and your side hustle or business even better.

Now, for those that maybe don’t even have an idea or maybe are thinking through this at a very early state, you know, my challenge to you would be is what’s the game plan to learn more? What’s the next step you can take to be able to be one step closer in this first part of 2020 to getting something off the ground. So you know, what are you listening to and reading to that can help stimulate more ideas? Who will you reach out to this year that has done this well to pick their brain and learn more? And so I think with side hustles, again, we featured several stories already on the show and we have more planned for 2020. I think it’s helpful to hear others’ stories, even it’s not directly related to whatever idea or interest you may have yourself. So if you’re just in the early stages of this, the challenge really is what are you listening to, what are you reading, what can you be reading or listening to? And who will you reach out to that you can pick their brain and get some additional insights and information? So that’s No. 3, hopefully get a side hustle off the ground or take some steps to be in that direction.

No. 4 is set one stretch goal for 2020. Now, you’ve likely heard of this concept of a stretch goal before. But if not, the idea is setting a goal that seems perhaps out of reach, maybe too audacious, too unrealistic, despite it being something that if you were to achieve, you would say, “Heck yes, that was awesome.” So the idea is that setting a stretch goal allows you to begin to think beyond what you believe is possible and really starts to help you visualize what it would take to knock down those self-limiting beliefs that often hold us back from our true potential. And of course, the power of setting a goal and visualizing a goal then becomes the increased likelihood of achieving that goal. And for those of you that have set goals and visualized goals, you know exactly what I’m talking about. You might them on paper, and you look at them at first, and you say, “That’s bold. I’m not sure how I’m going to get there. And then you start thinking about them, more and more you visualize them, you relook at them, maybe it’s daily or weekly. And all of a sudden, you’re beginning to just train your mind to say, this went from a “I hope” to “How will I get this goal achieved?”

So now, we obviously know that there’s a time and place for setting realistic goals. After all, if we set a bunch of goals that we didn’t achieve, we would likely get pretty frustrated pretty fast. We’d get defeated, and we might move on from this whole goal-setting thing. So here we are talking about one additional bold, audacious goal in addition to the other goals that you have planned for 2020. So of course we want those realistic goals, you know, those goals that we look at our budget, we look at our numbers, we look at our direction of our net worth and our plan and say, “OK. We think we’re going to be able to achieve those.” But here, we’re talking about one additional bold, audacious goal. So maybe it’s something like paying off an extra $10,000 on your debt this year beyond what you think is possible when you look at the numbers. Maybe it’s buying your first real estate investment property, despite not knowing a whole lot about what’s involved and where the cash will come from. Perhaps it’s maxing out your 401k or 403b contributions in 2020, $19,500, although you thought you’d be only able to contribute up to whatever your employer match provides. Maybe it’s giving 10% or 20% or 30% of your income to something that you care about, despite looking at the current numbers and saying, “How am I going to do that?” Or perhaps it’s taking a bold step to start your own business, despite your fears of, you know, what if this fails? Or what will others think? Or I don’t consider myself to be a business-savvy person, so why even bother?

So again, I think there’s lots of resources out there that can help in this direction. And one that I would point to that really has had a profound impact in my life is the book “Miracle Morning” by Hal Alrod. And whether you’re a morning person or not, this idea of establishing a daily routine that includes things like setting goals and visualizing those goals, that includes things like reflecting on your day and gratitude and having a place for silence or meditation or prayer, having a routine and a plan in place, especially at a time when you have potentially a busy professional and personal life is incredibly important when it comes to this topic of setting big goals and achieving those goals. And I would recommend that resource, it’s a quick read, it’s a great system you can implement, “Miracle Morning” by Hal Alrod.

So my challenge to you here is to set one big, audacious goal for 2020. So for Jess and I, our big goal for 2020 is to buy four more rental properties this year. Now, I don’t know exactly how we’re going to get there. We were able to achieve our initial goal in 2019 of getting one property, thanks to the help of many others that were able to wrap around their expertise and really provide us with their time and their wisdom and help us get there. We wouldn’t have gotten there alone. So four is a big stretch goal. I really don’t know exactly how we’re going to get there, but we need to be thinking about it. We know this is a goal for our family for a variety of reasons. And so we initially talked about two, and we decided the stretch goal for 2020 is going to be four. So we’ll see where it goes, and that’s the big goal that we have for 2020. So No. 4 again here, we’re talking about setting one big stretch goal for 2020.

Now No. 5 is get a coach. And I think it’s fitting here that we have this as No. 5 because in order to do all the things that we’ve talked about, these are big things we’re talking about for 2020 when we talk about Nos. 1-5, getting clear on your “So what?” or your why; building or modifying your monthly plan to get there, obviously that’s the budget piece we talked about; getting a side hustle off the ground; and setting a big, audacious goal for 2020. We can see here in No. 5 why a coach could be so valuable. And what we really see when it comes to coaching as it relates to personal finance is that the evidence is getting more and more clear that a financial planner, a financial advisor, a financial coach, their value really is not to help you choose the right investments or to get the best returns because ultimately, we live in a world here in 2020 where you can pretty much learn anything that you want. And what the evidence is really showing, specific even to investing, is that the more passive you are in that process, typically the better the returns that you will have. So a financial planner, in my opinion — and we offer financial planning, so this obviously is front and center for us — it’s not about hiring a financial planner like us to be able to say, “OK, we’re going to outperform the market,” or “We’re going to help you choose the best investments that are going to beat another financial planner.” Now, we obviously want to have success in that area, and we’re going to help you fine-tune your investments, but that’s just one part of the financial plan. And when you think about this bigger picture, the why, the “So what?,” the budget, all the goals that are swirling around, a financial planner and the value of a financial planner is really having an accountability partner and a coach in the process that can help you prioritize and achieve all of these different goals that are out there.

And I can speak firsthand that the power of this and working with Tim, as Jess and I have worked with him over the past couple years. Now, this also reminds me of Episode 124, where we talked with Dr. Daniel Crosby, the author of “The Behavioral Investor,” somebody who studies behavioral psychology for a living. And really what I took away from his book and his interview is that at the end of the day, the two most important things that you can do when it comes to your financial plan is to automate your financial plan, which we talk about extensively on Episode 057, and to hire a coach to help ensure that No. 1 barrier, which is often yourself, isn’t getting in the way of having success with your financial plan. Automation and a coach. And that has exactly been my experience as I reflect back on the past several years. Automating our financial plan and having a coach has helped us to achieve our financial goals.

Other episodes that I would highlight here that you could get additional information, episodes 015, 016, and 017, Tim Baker and I did an entire series on financial planning and the different types of planners that are out there, questions to ask financial planners, how they get paid. In Episode 054, we talked about the importance of fee-only and fiduciary and why that matters. And in Episode 055, we talked about why you should care how a financial plan charges. We also have a great resource if this is something you’ve been thinking about, here we are at the turn of the new year, not a better time to make this decision, to make this a priority in 2020. We have a guide we have created, which is nuts and bolts to hiring a financial planner. And you can get more information and download that guide for free at YourFinancialPharmacist.com/nutsandbolts. And if you are somebody listening today that is ready to take this step or ready to learn more to say, is this the right fit for me? Please head on over to YFPPlanning.com, again, that’s YFPPlanning.com, and you can schedule a free discovery call with Tim Baker where you can talk out loud what our services look like, talk more about your specific financial plan, and determine whether or not it’s a good fit for you going forward. And again, that’s a free discovery call. And you can get that going at YFPPlanning.com.

So before we wrap up today’s episode, I want to remind you again about the giveaway that we’re doing for this month. We’re giving away five winners each a one-year YNAB subscription, a copy of “Your Best Year Ever” by Michael Hyatt, and a copy of “100 Side Hustles” by Chris Guillebeau. You can go to YourFinancialPharmacist.com/giveaway to enter that today.

So here we are in 2020. We’ve got a fresh start ahead for this new year. And I hope you will consider these five things that we talked about as a way to have a successful 2020. And of course here, with these five or others that you think about, it’s all about being intentional with your financial plan, all about dictating your financial plan rather than letting that financial situation happen to you. And so I think it’s important to look back on 2019, to look at the trends, to look at the successes, maybe look at the challenges or failures as well. But looking back, while that is important, I don’t think we want to dwell too much on 2019. We need to look ahead to 2020 and say, “What did we learn? What went well? What can we replicate? What can we do a little bit differently? And what’s the game plan going forward for this year so that at the end of 2020, we will look back and be able to say, ‘Job well done?’”

So I hope you have a great rest of your week. Thank you so much for joining me on this week’s episode of the Your Financial Pharmacist podcast. And as always, if you like what you heard on this week’s episode and you have not done so already, please take some time to leave us a rating and review in iTunes. We’d greatly appreciate that as that will help others find our show. Have a great rest of your week.

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