What’s Your Survival Number With Jully-Alma Taveras
Episode 260
Episode Guide
Episode Summary:
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ChooseFI Podcast Episode Show Notes
Episode Title: Transforming Financial Independence: Julie Alma Tavares' Journey
Host: Jonathan Mendonsa, Brad Barrett
Guest: Julie Alma Tavares
Episode Summary: Julie Alma Tavares shares her inspiring journey as an immigrant from the Dominican Republic towards financial independence, highlighting the unique cultural perspectives on money within Latino communities. Julie discusses the impact of consumer debt on her life and her subsequent transformation towards a minimalist lifestyle focused on financial literacy and empowerment.
Key Topics Discussed:
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Introduction of Julie's Story
- Julie shares her unique background and how cultural differences shape financial decisions in Latino communities.
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The Cultural Perspective on Money Management
- Discussion on how many Latinos send money back home, maintaining a responsibility towards family and investing in real estate rather than solely in stocks.
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Overcoming Consumer Debt
- Julie reflects on her experience with consumer debt, the mindset shifts that led to her financial changes, and how her father's health crisis was a pivotal moment for her.
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The Importance of a Survival Number
- Clarifies the concept of a survival number and how it has allowed her to streamline her budgeting and financial planning.
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Master Leasing Explained
- Insights into how master leasing has helped Julie manage her living expenses effectively through subleasing, contributing to her financial independence.
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Transitioning to a Minimalist Wardrobe
- Julie elaborates on her minimalist lifestyle and how it enhances both her financial situation and overall life satisfaction.
Actionable Takeaways:
- Identify and calculate your survival number to streamline your budgeting process.
- Start investing early, even with small amounts, to benefit from compounding growth.
- Explore house hacking strategies to significantly reduce living expenses while enjoying your home.
Key Quotes:
- "Latinos often send money back home, supporting a significant economic ecosystem."
- "Investing from a young age can yield significant financial benefits."
- "Emotional spending can lead to financial challenges; awareness is key."
- "Foundation matters; begin with the fundamentals of financial security."
- "House hacking can significantly reduce living expenses and aid financial goals."
Chapter Markers:
- Introduction of Julie's Story
- The Cultural Perspective on Money Management
- Overcoming Consumer Debt
- The Importance of a Survival Number
- Master Leasing Explained
- Transitioning to a Minimalist Wardrobe
Discussion Questions:
- What personal financial challenges do immigrants face?
- How can cultural perspectives influence financial habits?
Related Resources:
Email Campaign Segments:
- Learn how Julie transformed her relationship with money after facing significant consumer debt. Discover her tips for financial freedom!
- Explore the concept of a Survival Number and how it can help streamline your budgeting process.
Podcast Description: Join us as we delve into Julie Alma Tavares' inspiring story of overcoming financial struggles and embracing a minimalist lifestyle to achieve financial independence. Discover how cultural perspectives shape financial habits and learn actionable steps towards financial literacy.
Embracing Financial Independence: Lessons from Julie Alma Tavares
Julie Alma Tavares’ journey from consumer debt to financial independence provides invaluable insights, especially for Latino communities navigating unique financial landscapes. By understanding cultural influences and applying practical strategies, anyone can embark on their path to financial freedom.
The Unique Cultural Perspective on Money Management
Latino financial strategies are often different from conventional approaches. Many individuals from Latino backgrounds prioritize supporting family back home rather than strictly investing in the stock market. This cultural practice is deeply rooted in familial responsibilities, creating a unique approach to financial independence.
Recognizing the Importance of Family Support
Latinos frequently send remittances to support relatives in their home countries, forming a robust economic ecosystem. This could involve purchasing real estate back home or investing in family businesses, which can serve as both a financial strategy and a way to preserve cultural ties.
Overcoming Consumer Debt: Strategies for Success
Julie’s experience illustrates how emotional spending can lead to substantial consumer debt. Recognizing these patterns is key in overcoming financial hurdles.
Implementing a Minimalist Budget Approach
Julie leveraged a minimalist, survival-based budget to regain control of her finances. Start by identifying your essential expenses and creating a streamlined budget to avoid unnecessary spending. This method allows for better awareness and control over your financial situation.
Actionable Takeaway: Calculate your survival number—a critical step in identifying the minimum income needed to cover essential expenses.
Building Financial Foundations
Financial education is crucial for long-term success. Julie emphasizes starting with fundamental concepts, one of which is building credit.
The Importance of Credit Building
Establishing solid credit is the first step toward financial independence. Open a debit or credit account early and consistently monitor your financial habits.
Recommended Action: Seek out resources to educate yourself on credit scores, interest rates, and lending practices, as these are pivotal in accessing better financial opportunities.
Embracing Investment Opportunities
Investing as early as possible can yield significant financial benefits.
Diversifying Investments: Real Estate and Stock Markets
Julie advocates for a balanced approach—diversifying investments across both real estate and stock markets. This reduces risks and positions you better for wealth accumulation over time.
Insightful Action: Start investing, regardless of the amount. Understand that the key to building wealth lies in consistent contributions and diversification.
Advanced Strategies: House Hacking
One noteworthy strategy Julie discusses is house hacking, which involves renting out part of your living space to reduce housing costs significantly.
Understanding Master Leasing
Through master leasing, Julie managed her living expenses effectively. By renting a larger apartment and subleasing rooms, she keeps her housing costs remarkably low. This strategy exemplifies how creativity can lead to substantial savings.
Action Plan: If you’re renting or buying property, explore master leasing options and how they might reduce your living expenses.
Transitioning Towards Minimalism
As Julie shifted from a consumer mindset to a minimalist lifestyle, she found peace in simplicity and intentionality.
Creating a Capsule Wardrobe
Adopting a capsule wardrobe is not only a fashion choice but also a financial strategy. It helps minimize spending on clothing while ensuring you always have outfits that make you feel confident and comfortable.
Practical Tip: Audit your current wardrobe and keep only those pieces that you love and wear frequently.
Normalizing Financial Conversations
Julie actively promotes the importance of discussing finances openly, especially in communities where these conversations may be taboo.
Encouraging Family Empowerment
Start small conversations about money within your family. Your approach and openness can inspire others to take notice and engage.
Actionable Insight: Begin discussing financial goals or budgeting strategies during family gatherings to instigate meaningful conversations.
Conclusion: Guiding the Next Generation
Julie’s story echoes a powerful message: financial independence is achievable through education, cultural awareness, and intentional practices.
By adopting these strategies and fostering conversations about money, you can help yourself and future generations build a healthier relationship with finances.
For further resources and actionable tips on financial independence, please visit Investing Latina to connect with Julie and explore her content aimed at empowering Latinas and immigrants in their financial journeys.
Jully-Alma Taveras
- Website: Investing Latina
- Instagram: Investing Latina
- YouTube: Investing Latina
What You'll Get Out Of Today's Show
- Immigrating to the United States as a child, by early adulthood, Jully found herself caught up in our consumer culture and had acquired five figures worth of debt. After working to dig her way out and starting on her path to finical independence, she's become an advocate. Drawing from her experience, she now help Latinas become financial powerful through investing.
- At the age of four, Jully moved from the Dominican Republic to New York. Her extended family all began making the move as well, but as many immigrants to, they continued to send money and invest in their socioeconomic systems back home.
- For immigrants, investing in their home countries has multiple purposes. There is often an expectation that money will be sent home to support the family.
- Jully's father supported her grandmother by building her a new home and making sure she was taken care of. However, when the grandmother also immigrated to the US, the house back in the Dominican Republic was rented out and became the first property in a real estate portfolio.
- Immigrants have struggles that a typical American doesn't go through. Investing in real estate in their home countries helps connect them to their communities. However, Jully says immigrants tend to invest more in real estate than in the stock market. She shares the message that it is important to diversify their investments.
- When she started working for a non-profit at the age of 19, Jully began investing a 403b for the free money. That decision was criticized by her mother who felt retirement was a long way off and that it wasn't necessary because Americans receive Social Security.
- When her family first arrived in the US, they didn't speak the language. It was a lesson in how to figure things out in the moment and just survive.
- It took a couple of years before her father began thinking in an entrepreneurial way and on a bigger scale. He went from driving a taxi to starting a bodega business.
- The bodega enabled Jully to see both her parents work in that environment, build their business, send money home, and contribute to the community.
- The money lessons she learned from her parents were to be generous and give. But the reality was her father worked a lot to build their life and they didn't see him much. Had he invested more, perhaps they would have been able to see him more.
- Jully went to school for fashion merchandising and economics. When she got her first job, lifestyle inflation kicked in. Working in the fashion industry required looking good with the latest trends.
- After accumulating the debt, Jully realized that she was channeling her emotions with her shopping. She was both celebrating and consoling herself with shopping to the point where it became unhealthy.
- Thankfully she had continued to invest even when the debt was bringing her down. It wasn't until her father became ill that she realized the safety net she had in her parents won't always be there. At that point, she began working to pay off all her debt. Once debt-free, Jully increased her 401K investments to around 20%.
- Jully notes that when first entering the workforce, you feel that nothing can go wrong, or if it does, you'll just figure it out. But you have to start with the basics. You have to start with the foundation of an emergency fund.
- Credit card debt is subject to incredibly high-interest rates of 12-30%. With five figures of debt, the compound interest is working against you and it's hard to fig yourself out from under it.
- To get out from under her credit card debt, Jully had to make significant payments toward it. The key was knowing her survival number.
- She created a simple chart with eight categories of things you need to come up with a survival number. The categories include housing, food, transportation, and even entertainment. Jully's survival number is $581. The items in her $581 figure are the absolute minimum things she needs to survive and keep her life sane.
- The reason she can keep her number so low is by house hacking her four-bedroom apartment. With master leasing, she is responsible for the rent each month, but she then uses sub-leases to rent out rooms.
- She uses Craigslist to market the rooms for lease in her apartment and thinks it is important to find people with similar lifestyles and working schedules which creates a good co-habiting space for everyone.
- After paying off her debt in 2016, Jully felt an incredible sense of freedom, quit her corporate job, and went to work for herself.
- She has been inspired and motivated by the financial independence community to use her platform, Investing Latina, to provide resources and stories, to inspire others to do more, increase financial stability, and reach financial independence.
- Given the struggles that her family faced when they first arrived in this country, Jully speak about building credit and establishing yourself.
- Jully's conversations with new immigrants start her three pillars, building credit, investing in the stock market, and real estate. The first step is to open a debit account to start establishing relationships with banks.
- While there is still something of a stigma to talking about money and investing in the stock market in her family and community, Jully is hopeful that it will normalize and influence others. Even having small conversations like, "What are you saving for?" is a little way to get started.
- As someone who works in fashion, Jully's transition to her survival number she realized her shopping was an addiction. Using Marie Kondo's methods for embracing minimalism, she cleared out her closets to create a capsule wardrobe, focusing on the items that fit well, looked good on her, and were comfortable.