Why can’t more financial experts write books that matter? Simply because too many so-called experts have forgotten what it’s like to be young, broke, or both. Not so with financial expert Farnoosh Torabi. For starters, she’s young. But she sure isn’t broke. Farnoosh embraces living a rich lifestyle (and state of mind) no matter what your budget. I asked her to tell me more…
Farnoosh, what prompted you to write “You’re So Money: Live Rich, Even When You’re Not”? It’s described as a tell-all book about how to pay down debt while living it up — did you personally experience that?
I wanted to write a financial book that young adults would want to devour in one big gulp, a financial guidebook that read like a juicy diary, filled with my personal stories and those of my friends and coworkers who’d gone through it all. I always joked that it needed to be like a great beach read – easy and fun.
At the same time, the book couldn’t be short on poignant advice, and I worked hard to make sure readers received great takeaways.
My goal was also to have readers finish the book without feeling guilty, embarrassed or victimized by their financial situation, but rather to have them feel empowered and in control. Managing money, after all, comes down to having the knowledge but it’s also about applying the right attitude.
I absolutely speak from my own experiences of trying to afford living in Manhattan on a entry-level journalist’s salary, with outstanding credit card debt and $20,000 in student loans. But I managed to thrive and I thought it was a story worth sharing.
What are some of the biggest reasons young people feel overwhelmed when it comes to money management?
Young adults, for one, don’t have that much money to manage. Entry-level salaries have been quite stagnant over the past few years, all while the cost of living has soared. Fixed costs like rent, car payments, utilities, etc. eat up much of their take-home pay, leaving little to direct towards the remaining financial variables like debt and savings. Secondly, young adults (myself included), being that we are independent, hard-working and ambitious, desire a great many “things.” The material world is our oyster. We love our gadgets, our iPhones, our designer-label goodies and fancy skin products. (God knows I love my Kiehl’s protein moisturizing face cream)…but that’s where our financial situation more or less gets messy. Many of us trap ourselves into thinking we HAVE to have the top of the top and the best of the best for all of life’s accessories – when, actually, we probably could live without most of that stuff, select a few must-haves and feel just as complete. It’s what I call in the book as our hierarchy of “need-wants” But, again, it’s tempting and our friends (as much as we love them) sometimes add to the pressure, too.
What are some of the most common financial challenges young adults face?
Paying off debt, getting proper health insurance and earning enough money!
What are some basic steps young adults can take now to set a firm financial foundation?
Continue to pay all your bills on time, attack your credit card debt by paying down the highest-rate card first, automatically save a portion from each paycheck and stop opening up more credit cards- especially store credit cards that can potentially damage your credit score.
You’re an advocate of “empowering yourself to live a guilt-free, Gucci- and gadget-clad good life without sacrificing financial security.”. What are some examples of “smart” splurges?
What’s the best money advice you’ve ever received?
“It’s just money!”
I know that sounds crazy to say, but it’s not that I think money is something worth shrugging off – it absolutely is not. But what I like about this saying is that it emphasizes to me that money should not control me. I’m the one who needs to be in charge. Also this saying to me means that, money, literally, has no value until you do something productive with it. It’s useless until you invest it properly, put it to good use….reminding me that I need to be that much responsible each time I spend or save or donate my hard-earned cash.
Thanks, Farnoosh! Check out Farnoosh’s book, “You’re So Money: Live Rich, Even When You’re Not”. Have a question for Farnoosh? Speak up in her Geezeo Expert group.
Related:
Ask Farnoosh a question! Find here at her Geezeo “Ask the Expert” Group.
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You’re So Money When You Haggle
The “So Money” Switch to Apple’s iPhone
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