MARCH-- "How to earn more and save better"
Content
HOW TO
EARN MORE & SAVE BETTER
Katie Dunsworth, cofounder of financial-advising group the Smart Cookies, tells MARCH about about how she took control of her finances—and shares top tips for women looking to do the same. s ame. BY LISA RYAN
MARCH / APRIL 2011
| marchmagazineonline.com 57
N PAPER, KATIE DUNSWORTH WAS A SUCCESS BY THE AGE OF 24. She’d scored scored a prestigious public relations position with a renowned company, and was quickly working her way up the corporate ladder. Though she enjoyed the paycheck, Dunsworth says something was missing from her life. “I felt like I had sacrificed being young,” she says. “I began spending a lot on trying to create this lifestyle that I thought was fabulous in order to compensate.” Dunsworth began to funnel her hard-earned income into lavish shopping sprees and expensive evenings out. Slowly but surely,
she found herself drowning in an unexpected unexpected sea of debt.
unsworth caught a March 2006 episode of The Oprah Winfrey Show that focused on personal finance and off ered ered options for debt relief. Winfrey urged
“It started almost as a support group,” Dunsworth says. “We were all in debt and living beyond our means.” means.” Collectively, the women were facing $48,000 of debt. They christened themselves the Smart Cookies and began to investigate ways to quickly pay off their their respective
rocketed them to financial fame. Now, they host their own television program on the W Netw ork. Th ey’ve also brokered a boo book k deal; The Smart Cookies’ Guide to Making More Dough Dough was released in Canada and the US in October 2008, followed by the release of The The Smart Smart Cookies’ Guide to Cou-
women to be honest about the kind of lifestyle they could aff ord. ord. Inspired by the episode, Dunsworth and a group of girlfriends—all of whom were successful professionally but suff ering ering financially— banded together to form a money group to dissect and transform their debt problems. Dunsworth was joined by Robyn Gunn, who was in the midst of a messy divorce that resulted in $12,000 of debt; Andrea Baxter, who was facing a large mortgage with no savings and upwards of $18,000 in consumer debt; Angela Self, who had been letting her boyfriend handle their finances and yearned to tackle her debt problem inde-
debt. They also began to explore strategies for attracting more money while maximizing their current income: Dunsworth sold unnecessary belongings, including her wedding dress, car, and old furniture; Gunn landed a new, higher-paying job; Hanna started walking dogs for cash, sold her car, and negotiated a $10,000 raise. Each of the Cookies also explored and pursued freelance opportunities in their respective fields. Just one year after forming their money group, the women were able to pay o ff their their total debt and earn an extra combined income of $140,000 . The Cookies wrote Winfrey a letter
ples and Money in January 2010. With 100,000 books sold worldwide, the Cookies have been featured by more than 300 television, radio, and print outlets, including The New York Times, Times, MSNBC, and Money Magazine. Magazine.
pendently; and Sandra Hanna, who had steamrolled through $10,000 $10,000 in savings and was faced with hefty credit-card debt.
about their success, and they were invited to appear on The Oprah Winfrey Show Show in January 2007. The Oprah appearance sky-
on your life. Our goal is to help you get clear on what kind of life you want to be leading and how you can achieve that.”
D
58 marchmagazineonline.com |
MARCH / APRIL 2011
Their philosophy on money management, which emphasizes living large for less, resonates with women worldwide. “People like the message we have,” Dunsworth says. “We recognize that quality of life is important. If you love buying Manolo Blahnik shoes, we’re going to help you do that. It just means you’re going to have to give up on other things
SMART COOKIES Katie Dunsworth, second from left, with the four other Smart Cookies.
MARCH asked asked
Dunsworth to share the Smart Cookies’ best bits of financial advice. Here’s what she had to say:
THINK POSITIVELY When it comes to cutting spending, the Smart Cookies first and foremost encourage women to adjust their attitudes. “Most people I see that are in debt have a woe-isme attitude; though, of course, in a lot of cases, their debt does stem from challenging circumstances,” Dunsworth says. “But if you embrace money with a can-do attitude, you’ll create a positive momentum for your new financial life.” SMART TIP: Each time you reach a debt-shrinkin debt-shrinking g milestone milestone,, treat yourself to a small luxury—lik luxury—like e a glass of champagne.
GET CREATIVE
BUILD A NETWORK
The Smart Cookies suggest that you take a long, hard look at your everyday spending and get creative about saving. First, examine your biggest and most necessary expenses. It’s important to familiarize yourself with these figures and to understand exactly where your money goes each month. Once you know your expenses inside and out, start investigating where you can cut back. “We challenge everyone to go out and be creative,” Dunsworth says. “Ask yourself how you can be lowering your expenses. If it’s student loans, see if you can go out and get a smaller rate.” Cut out unnecessary expenses, like premium cable or electricity costs, but don’t sacrifice the things that you deem necessary for a happy existence. If spa treatments are
The job market isn’t as secure as it once was. Rather than o ff ering ering new opportunities for full-time employment, many businesses are passing responsibilities to contract workers. Each of the Cookies has taken advantage of freelance opportunities to supplement their respective income. Dunsworth and Baxter landed public relations and marketing contracts for various businesses, while Gunn has used contacts made through her position as a social worker to find additional work as an adoption-study social worker. “I think freelance work is fabulous,” Dunsworth says. “It allows workers the freedom to dip their toes in several di ff ererent fields or companies at once.” However,
events to familiarize yourself with your industry and get your name out there. Most importantly, have the confidence to ask for what you want. The Cookies have posted their respective freelance services on sites like Elance and Craigslist, in addition to making strong eff orts orts in networking in the busi-
your favorite indulgence, don’t ditch your monthly facial. Instead, the Smart Cookies recommend cutting back in other areas of spending that you deem less necessary. Compromise is key: perhaps a visit to the masseuse is more important than going out to lunch each day. SMART TIP: Use an
according to the Smart Cookies, a lot of women are unsure of how to attain these freelance positions, and many don’t know how to market themselves appropriately. “People tend to have a hard time selling themselves,” she says. The Smart Cookies first recommend beefing up your personal network. Investigate and attend networking events in your area or join social groups; go to industry
ness community and setting up referral programs for anyone who helps them attain freelance work. “Be upfront. Tell people that you’re looking for freelance work and ask them to let you know if they hear of any opportunities,” Dunsworth says. Dunsworth now owns a public relations firm and says that she continues to utilize a similar networking approach . “Even to this
online budget calculator to keep track of your finances, like those at mint.com or kiplinger.com/tools/budget.
“IF YOU EMBRACE MONEY WITH A CAN-DO ATTITUDE, YOU’LL CREATE POSITIVE MOMENTUM FOR YOUR NEW FINANCIAL LIFE.” KATIE DUNSWORTH, COFOUNDER OF THE SMART COOKIES
MARCH / APRIL 2011
| marchmagazineonline.com 59
