Episode 12: Mastering Your Money Matters

Welcome to The Mirror Project!

Welcome back to The Mirror Project! We are your hosts Alexandra and Christine, and we're absolutely thrilled to have you join us today for a topic that impacts us all: money, finance, and financial literacy. With Tax Day looming just around the corner in the US, there's no better time to delve into this vital aspect of our lives. Plus, we have a special treat for you – our second guest on the show, Nicole! So, let's jump right in and start talking money, honey!

Stay Connected

But first, a quick reminder – if you're enjoying our conversations, make sure to like, subscribe, or follow us on your preferred listening platform. Your support means the world to us!

Guest Intro

We're beyond excited to welcome Nicole, my brilliant sister and finance aficionado, to the show today! With her background in finance and accounting, she brings a wealth of knowledge and experience to the table. Thank you, Nicole, for joining us amidst your busy schedule!

Welcome Guest & Background

Alexandra kicks things off by inviting Nicole to share her journey into the world of accounting and finance. How did she find herself navigating this fascinating field? Financial literacy can feel daunting at times, leaving many of us feeling like fish out of water. Nicole shares some invaluable lessons she's learned about money along her journey. We each open up about the steps we've taken to seize control of our finances and secure our financial futures. It's all about taking those proactive steps towards stability and security.

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Money & Finances through Life

Are there critical financial milestones at each stage of life? From setting up a Roth IRA to navigating investments and retirement planning, Nicole shares invaluable tips for every age and stage. Is it ever too early or too late to start saving for retirement or investing? Spoiler alert: Nah, dawg! It's never too late to take charge of your financial destiny. As tax season approaches, Nicole sheds light on common mistakes people make and offers sage advice on navigating the complexities of taxes. With tax season winding down, we discuss the importance of finding a trustworthy accountant and share tips for better preparation in the future.

What to Keep in Mind for Tax Season

Nicole highlights common tax pitfalls and offers practical advice on how to avoid them. Remember, knowledge is power when it comes to taxes! The IRS can be a bit intimidating, but fear not! We discuss key considerations and insights to ease your tax-related worries. Need help with taxes? Nicole shares tips on finding a reputable accountant and what to look for in financial assistance.

Closing Thoughts

As we wrap up today's enlightening conversation, one thing is abundantly clear – mastering your personal finances is essential at every stage of life. From savvy investments to diligent tax preparation, informed decisions pave the way to financial empowerment. A heartfelt thank you to Nicole for sharing her expertise with us today – we can't wait to have you back! Join us next week as we shift gears and explore our love for Mother Earth and sustainable living. Until then, stay curious and financially savvy, friends!

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Join Us Next Time  

Before we sign off, don't forget to like, subscribe, or follow us on your preferred listening platform. We can't wait to catch you next time for another engaging episode of The Mirror Project! Stay tuned and keep those conversations flowing!

Hello, and welcome to the mirror project.

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We are your host, Alexandra,

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Christine: And Christine.

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Alexandra: and we are so

glad you're joining us today.

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We'll be discussing the topics of money,

personal finance, and financial literacy,

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which seems apropos with tax day, April

15th in the U S just around the corner.

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Also, this episode is special because we

welcome our second guest, the show Nicole.

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So let's dive in and start

talking money, honey.

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Christine: Before we dive into today's

topic, like, subscribe, or follow us

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on your preferred listening platform.

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Go ahead, pause, and do

it now before you forget.

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Don't worry, we won't

get started without you!

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I'm super excited because today

my sister Nicole is joining us.

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One of the funniest people I have ever

met who happens to have majored in finance

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and accounting and has five years of

experience working in public accounting.

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Thank you so much for taking time

during one of your busiest times

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of the year to chat with us.

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Nicole: Hi, yes, I'm

very happy to be here.

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Let's talk business.

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Christine: All right.

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Alexandra: so welcome Nicole.

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Tell us a little bit about yourself

and how did you end up in the

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fascinating world of accounting?

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Nicole: Well I can honestly

say it was pretty accidental.

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Because when I applied to college,

like I applied to the business

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school and there was a dropdown box

and that was the first one there.

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And I just, I went with it.

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And so as I started taking accounting

classes and I wasn't terrible at it, so I

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was like, okay, like, guess we'll do this.

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And that's kind of how that all started.

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Alexandra: Sounds very kind

of you just stumbled right

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on into it and you're like, you know what?

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Might as well go.

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I've got my feet under me.

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Nicole: I did not grow up as a child being

like, I'm going to be a public accountant.

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No, that was not how it

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all

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Alexandra: that wasn't

your childhood dream?

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Nicole: no, but it all

worked out and we're

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still with it today.

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So something's going

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Christine: exactly, five years.

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Alexandra: Mm

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Christine: I mean, you're definitely

the person I have in my life who knows

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the most when it comes to, like, being

financially literate, and I tell, I'll

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tell you this, like, I always, it makes

me nervous, and, I feel like an idiot

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sometimes, because I just feel, I'm at

a loss, I don't understand it a lot of

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the lingo, I'm like, What are you saying?

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So, I would, I think we,

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Alexandra: It's like, can you put

that in plain English, please?

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Because what you just said was

not a language I understand.

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Christine: So, we would love to know

if you have any lessons that you've

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learned that you can share with us.

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And what advice you might

have when it comes to money.

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Nicole: So yeah, absolutely.

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I did.

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And like you said before, major in

finance and accounting, so I can like.

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give you the business

101 spiel if you want.

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But I think at

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Alexandra: I think that would be helpful.

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Nicole: yeah.

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Well, it is an overwhelming concept.

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And I think for me, sometimes I tend

to forget, like, okay, Nicole, not

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everyone studied what you studied and

like, knows it the way that you do.

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And there's like, even for me,

sometimes I still get overwhelmed.

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And I think Like, I'm glad you guys

are doing this, just to kind of create

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more transparency around the subject.

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And it's not necessarily as scary as

I think a lot of people think it is.

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So I think a couple of things that

are always, like, good to know.

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It's always good to, you know, invest

your money in one form or another there's

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a ton of different options to do this,

but at the end of the day, like, one of

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the biggest things I learned in finance

is, you know, don't put all your eggs

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in one basket, so, like, don't take all

the money you have and put it towards

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one thing, I mean, some people do that,

and it works out for them, but there are

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some people that, you know, So that being

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said, it's always good to

diversify your investments.

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And another thing is that I learned is the

greater the risk, the greater the reward.

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So it's like some people do

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like take those big risks

and it does pay off.

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But again, like

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you take that big risk

and it doesn't pay off.

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And so it's, it definitely depends

on the kind of person you are.

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Your age, like somebody that's a

bit younger, maybe in their early

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20s, like that has time and can

take on that level of risk now, or

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is more likely to than, you know,

somebody that's in their retirement

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and is probably not going to try to

gamble their entire retirement away.

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So that does change depending on your age.

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But I think there's several different

vehicles you can do to invest your

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money, or kind of just get started.

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With that, I think, like, financial

advisors, those are kind of tricky

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to come by, but even just, like,

talking to your friend in finance,

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be like, hey, what'd you do?

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And, like, kind of just get that door

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open to see, hey, do you

have any recommendations?

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Even I do that, like,

I, I frickin studied.

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Finance and I'm like, what the hell?

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Like, what do you mean?

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Like one of my eyes says, I don't know.

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So I definitely, I think

talking to people does help.

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I do talk to a bunch of my friends

that have studied this, that

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are kind of a little bit more

involved, get their take on it.

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Even talk to your parents,

like mom, Chrissy, mom and dad.

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Rose knows what she's doing.

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Like she, she's the one that put me

onto the high yield savings account.

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Or in high interest.

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Christine: High interest.

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Nicole: that's high interest.

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Yeah,

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Alexandra: So I have a question about

that and I would like to know where to

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find one of those because I Recently was

looking at my bank and saw the interest

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accrued on your account this year And

it's like, you know, I've got a chunk of

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change in there and it's like 17 cents.

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I'm like dang It's so working

for me I'm like, you know, I feel

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like I like more than 17 cents

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Nicole: absolutely

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Alexandra: not asking for like

10, 000 on my savings, but

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you know, more than 17 cents.

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So

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Nicole: get like one

cent every couple months.

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I'm like, what the hell?

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I think with

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Alexandra: you're like, at

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Nicole: on your bank

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Alexandra: in 10, 000 years.

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Nicole: I think it depends on your bank.

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I think you can definitely talk to

Whichever bank you use like call up

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gary at chase bank and be like, hey

gary Like, what's up with like a high

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interest bearing savings account and

just start talking to them about it.

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Or even just Google, like

90 percent of what Okay.

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not 90%, but a large portion of my

knowledge and like things that even

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like from work, like I, I Google it.

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And just kind of see what's out there.

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I think it's definitely worth like, you

know putting in some sort of level of

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research But at the end of the day, I feel

like word of mouth like recommendations

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from others is a big part of where

these things Are going to come from

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Alexandra: Well, I feel like that rolls

nicely into our next question and kind

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of prompt of what have we, I'm guessing

each done to take control of our finances

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we plan to implement in the future.

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So I don't know if Nicole, you

want to be put on the spot, but

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seeing this as your field and

beyond the asking people, what

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Nicole: So one thing that I would

definitely recommend that everyone

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should Start investing in is a what's

called a Roth IRA it's an individual

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retirement Essentially with this one,

the way a Roth IRA works now is that

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you contribute after tax dollars so

you don't have any benefit of putting

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it away now but your contributions

and earnings can grow tax free.

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So it's like if you put your money

into a Roth IRA and you're in, because

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they'll put invest in mutual funds,

stocks, whatever, and within that

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account and any gain you get from Your

investments in that account when you go

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to withdraw that money, it's all tax free.

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Like you're not paying tax on those gains.

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So that's The extreme benefit of it

granted you will not be able to access

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this money until you are 59 and a half

years old If you do it before you will

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get wrecked With the tax like on it, so

you can't access it until a certain age

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But it is definitely super nice that

you know Any money that you put into a

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regular investment account now and you

go to sell that stock You're going to pay

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capital gains tax on it And so i'm pretty

sure with the Roth IRA the way that works

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is the whole idea is that You You can

take that money out tax free later on.

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So that's one of the major benefits of it.

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So that's one thing that I've personally

started to invest in and I think it's

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a really good just like a Good way to

start saving for retirement for anybody

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and you can put like even if you just

put a hundred dollars away Like every

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like one when you can and I think that's

what's so nice about it is you can let

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that money grow And you don't have to

put in, you know, the max every year.

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But you don't, like,

just something, you know?

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Christine: Yeah, absolutely.

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Yeah, I think I'll jump in a little

bit and share a couple of things

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that I've done similar to what

Nicole was just mentioning, Roth IRA.

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I have decided to roll over my 401k

from one of my jobs into a Roth IRA

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account just because when talking with

my financial advisor about it, they

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suggested that that, that to doing that

because they would be able to help manage

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that as well as my other investment

account that I have set up yeah, I

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think, you know, For me going forward,

I just want to grow my relationship with

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my financial advisor because obviously

they, they know the field more than I do.

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I'm lucky enough to have my sister

to bounce things off of and to help

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me when it comes time to file taxes.

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And all that jazz, but

how about you, Alexandra?

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What what sort of things have you

thought about doing or have done?

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Alexandra: Oh gosh yikes.

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I feel like my parents

set me up pretty well.

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I mean, you know, having A checking

account when I was early, I think in

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our last episode, I talked about the one

and only time I overdrafted my checking

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account and it was for a book habit.

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But since then I have learned

to manage my money better.

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I do have a 401k through work.

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So I know I honestly don't remember.

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I think there was only a standard

amount and they match after five years.

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I think it takes five years

to get vested with them.

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But I did was doing a secondary

retirement option for another

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percentage through something else.

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But that of course has changed at work

and I need to deal with that on Monday.

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Cool.

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And I did a couple, gosh,

probably two years ago, put a

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chunk of money into a Roth IRA.

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But as Nicole says, I probably should

think about adding money when I can,

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which I have not done for two years.

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So something I need to

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Nicole: It's okay, you're not alone.

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Alexandra: advisor and say, Hey,

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Nicole: it's

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Alexandra: there.

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I've done my good thing.

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Nicole: yeah.

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And I think that's one thing that

gets a little bit tricky is like,

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you know, because you can contribute

to, for the year, there's a maximum

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that you can contribute each year.

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Because they don't want everyone

putting, like, especially if, like,

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you're the kind of person that can

just, like, drop a couple million.

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Like, they don't want

you to do that and then,

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you know, gain a ton of

money and then take it.

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Like, the idea is it for it to

be, like, regular, like, I think

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the most it's been going up.

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It might be 6, 000, 6, 500 that

you can contribute in a year.

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like, sometimes, like, that's just, like,

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not reasonable.

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Like, I can't contribute,

like, that every year.

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And I think.

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Like even if like I need to

be better as well just like

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even putting a little bit away

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Christine: Yeah, a little

bit here and there.

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I think like any, any amount,

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helps because you're, you know,

you're, you're, I kind of like

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to, I try not to think about it.

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It's like, it's there.

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I, I, that amount goes out every

month and it, and it, it's just going

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to stay there until I need it and

it'll grow and it'll do its thing.

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And I try not to think about it.

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But yeah, I think every little bit helps.

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and there's, you know,

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Alexandra: Well, you make

a good point, Christine.

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I, I might need to call my financial

advisor and talk to him about saying like,

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can I set up an automatic withdraw of

like a certain amount and it just all goes

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in at the end of the year or whatever to

make it a little bit more, I don't want

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to say mindless, but like, Hey, I've, I've

set it up and I'm sticking to it because

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clearly I have not thought about it since.

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So maybe having the automatic

part will make it a little easier

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Christine: exactly.

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I I'm, I'm pretty sure that that is

definitely an option out there for people.

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And the nice thing is, is like,

you can fit it into your budget.

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So you can figure out like how much

you are able to contribute each month.

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And yeah, I think that's a perfect

segue into our next topic where

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we want to touch on The important

things to keep in mind at each stage

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of life, and what are some tips?

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So we talked about getting yourself

a Roth IRA but what are some other

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options that are out there for people?

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I think we touched on investing in, in

the stock market Nicole, do you have

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any other, do you want to, shall we

dive into that a little bit and chat

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a little bit about the stock market?

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Nicole: We can definitely talk about the

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stock market.

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I think a lot of people find a stock

market a little bit scary and I think

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It's, to an extent, it's good to be

scared of it you know, you don't,

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like I said before, you don't want

to just, like, throw yourself into,

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like, all your money into one thing

without, like, any sort of knowledge,

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research, or anything like that.

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I think it's important to either

hire somebody to help you, or

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to, like, before you kind of get

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into it, like, look into

what you're doing yourself.

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Even just a

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little bit like it definitely is worth

like helping help educate yourself And

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then I think it's also important to know

that like The way the business cycle

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works is like it has its highs and it

has its lows and it kind of like does

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like a little squiggly curvature and

it's called like That's it's always

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been that way.

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We have had Crazy recessions

and depressions and we had the

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great depression and then we

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Alexandra: Mm hmm.

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Nicole: like, not ideal, like,

to have such an extreme drop.

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It has happened, but, like, we've always

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been okay.

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And I think it's important for

people to know that, like, you're

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gonna have years where, like,

it is going off, like, booming.

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And then other years where,

like, it's on the decline.

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And it's just, like, it has to kind

of, like, balance out that way.

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And so I think it's important to know

that, like, I mean, COVID, for example,

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I watched my investment account go from,

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like, the highest it's

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ever been to, like,

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Christine: Mm

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Nicole: like, literally,

like, lost a ton of money.

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And then I just, like, back to

normal a couple months later.

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Like,

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Christine: Yeah.

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Nicole: so I think with things like that,

like, to the extent you can, like, it,

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it is going to be okay for the most part.

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Like, I will say that and that

it's normal for those things.

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to happen.

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That being said,

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buy low, sell high.

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you don't want to be like, buying all your

stock at like, top price when things are

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going super well and then sell it all.

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When things aren't going well

you want to do the opposite like

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Christine: Right.

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Nicole: You know like in

those moments when you know

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stock market's super low like look

into investing I mean even during covet

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the house like interest rates like

the housing market like So many people

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refinance because interest rates were

crazy low and now they're crazy high

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but if you like locked yourself into

a a fixed mortgage at a low interest

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rate like Pat on the back for you

But anywho, sorry to ramble on that.

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But, I think it's just, like,

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important for people to be aware

that, like, it will fluctuate,

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and when things go down

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It's gonna be

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Christine: yeah, and maybe a way to

sort of help feel secure is when, when

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it fluctuates like that, Like you said,

don't have your eggs all in one basket.

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Maybe don't put all of your

savings, like maybe you keep some

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savings in a high, high interest

saving account or, you know, you put

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it into your Roth IRA or your, your

retirement fund and then keep some

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in the stock market and just let it

do its thing and keep an eye on it.

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I think I, I, I certainly don't

know a whole lot about when it comes

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to the stock market world, but I

think it, your points make sense.

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Like, yeah, you want to

buy low and sell high.

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So, you know, keep, keep

doing your research.

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I think there's a lot of information

that you can easily access and like

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you said, Nicole, just talk to,

talk to family, talk to friends.

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I think the, the important thing is to

just keep talking about it because for

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the longest time, I think a lot of people

were like, let's not talk about money.

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It's like a, almost like a taboo thing.

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Yeah.

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But it's like, well, how else are

we supposed to function as humans in

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this world in the world market that

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I think there be way more transparency

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around it

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Nicole: 100%.

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Alexandra: know we talked about

the Roth IRA and that it's already

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taxed money that you put in there.

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So when you take it out at 59

and a half, it's not taxed.

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But Christina and I both mentioned 401ks.

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What is the difference for

people who don't know between

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the 401k option and the Roth IRA?

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Nicole: So, without Googling, I don't

wanna get, like, my facts 100 percent

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mixed up, but 401ks, I feel like I

see them a lot more as, like you know,

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there's employer contribution plans are

part of it, so it's like, my company

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does a very similar thing where it's

like, we Like up to a certain amount like

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my company will match my contribution

and then after five years So if I were

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to leave before five years and they're

like, Hmm, too bad, so sad, like,

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Christine: Yeah.

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Nicole: leave before then.

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Especially cause I've been there

for like, I'm coming up on my,

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I'm coming up on my best date.

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So,

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Christine: that's

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good.

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Nicole: but I think for technically

like, it, and it like shows up on your

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W 2, you know, what you contributed.

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I do think, I don't want to say the wrong

thing because I'm not 100 percent sure,

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but I'm pretty sure it's like pretext.

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that's where I most commonly see it.

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Like I feel like a 401k is

going to be more employer

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Christine: Yes, that's definitely

what I remember because with my when

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I my first job out of college, my

401k, I You know, set it up so I could

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contribute the most cause it was like

percentage based, like how, like if

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you contributed, I contributed the most

possible so that my employer matched that.

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And I think for, for us, it was.

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We had to be there at least

three years to be fully vested.

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And unfortunately COVID hit just before

my three year mark and I was let go.

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So I didn't, I didn't get, I

was able to get, take like 80

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something percent away from it.

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But I was like, so close

to be fully vested.

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But yeah.

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So I think those are

all really good points.

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and those differences make sense.

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Yeah.

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Alexandra: we've talked about

different aspects, right?

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Like the savings and the investment

Nicole, do you have an idea, like maybe

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percentage wise what people should be

thinking about out of their paycheck they

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should be putting towards each avenue?

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Okay.

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Nicole: there's like so many things that

I feel like people say it's like, you

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know, like saving 30 percent or it's

like, you know, if you go by like certain

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metrics, like, okay, like 30 percent

for basic needs, like 10 percent for

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saving 20%, whatever, whatever it may

be, I feel like I hear different things.

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I think that it's like, you

know, it's all depends like

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everyone's situation is different.

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And like, I kind of find ourselves in

a situation where, like, the cost of

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living is way too high, especially, like,

depending on the city you live in, like,

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compared to my salary, like, it's, it's,

it's a struggle, for sure, and it's,

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like, realistically, like, you can't find,

like, okay, like, a comfortable place to

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live while also being able to take care

of your basic needs while being able to

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do all the, like, fun recreational, and

sometimes people don't even have, like,

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that kind of money to, you know, You

know, be able to do those fun things, let

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alone, like, put away 10 to 20 percent.

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You're like, it really depends, like,

I feel like that's such a tough metric

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for to, like, save for anyone because

it depends on, like, your life.

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That being said, I think

it's, like, save what you can.

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I mean, if you can save up to 10 percent

of your paycheck, like, every time

386

you get your paycheck, But I think

also at the same time, like it's,

387

it's good to put away what you can for

like rainy day funds, but it's also

388

like, I don't think people should beat

themselves up every time if like, hey,

389

like, there's just like not like I

have these basic needs I need to meet.

390

I don't think like people should get

down on themselves if they can't do that,

391

like save a certain amount of money.

392

So I don't want to say

like a specific number.

393

I think it's like based off of an

individuals means and you know different

394

life factors and even if like you

put like five bucks away Like go you

395

Christine: hmm.

396

Nicole: It's it's definitely a good

397

thing to do, but it's

398

Christine: I think that you

make a good point, Nicole.

399

Nicole: Yeah.

400

I'm tired of being told

I have to save 20%.

401

I'm like, I can't afford to save 20

percent or like whatever it may be.

402

So I think it's like, do what you can.

403

And like, if you can, I think

10 percent is a good number.

404

If like your means allow.

405

Christine: Yeah.

406

I think, I think you make a good

407

point.

408

Like, don't get caught up

in saving for a rainy day.

409

I think, Nicole, last night you made

the point of like, you know, you

410

still should live for today too.

411

So, like, don't deprive yourself of going

412

on that trip or buying yourself

something for the sake of

413

like, you know, saving for the

414

Nicole: Oh yeah.

415

That's my whole other thing.

416

I'm like, I don't know, Sometimes

I'm like, am I going to make it to

417

59 and a half?

418

Alexandra: Well, and it makes me feel

more comfortable, I don't know, confident

419

that I'm not quote unquote behind hearing

you say something like put away what

420

you can, like, it doesn't have to be

a certain percentage because I think

421

recently that's been kind of weighing

on my mind as like, I think about the

422

future and what do I want to do with

my career and leave a stable day job.

423

and do the small business thing on my own.

424

Like, I'm like, Oh my gosh, how am

I going to do any of this and, and

425

still live a life I want to live.

426

So, you know, it's nice hearing

this perspective of like,

427

no, I mean, do what you can.

428

Like, it's not always possible to do, you

know, the, the, whatever's recommended.

429

So that makes me feel a lot more

430

Nicole: Oh good!

431

Alexandra: so freaked out.

432

Christine: Yeah, I think for me, just, I

was feeling like this impending pressure

433

and doom almost, like, I'm, I'm leaving

my 20s and I'm not saving as much as I

434

think I should be, but, you know, this,

this conversation has definitely started

435

to help ease that and like, yeah, it's

never too late and do what you can.

436

And there's.

437

Always options out there for you,

which I think is great to keep in mind.

438

And yeah, just take it one day at a time.

439

I think Nicole's, you gave some

really good advice, so thank you.

440

Nicole: Oh good.

441

I hope so.

442

Christine: Yeah, yeah, for sure.

443

One other question I have for you,

Nicole, is what is your opinion

444

when it comes to financial advisors?

445

Are they worth it?

446

Like, if you can't afford it,

is it, like, that big of a deal?

447

How, how?

448

Nicole: don't think yeah.

449

I mean, like, usually financial advisors

come into play, I think, for a lot of

450

people, is, like, if they find themselves

in a situation where they, like, win

451

the lottery, or, like, start making a

ton more money than they have before,

452

and they just, like, have all this mon

like, income all of a sudden, and they

453

don't know how to handle it, I think

that happens a lot with people And I also

454

like I have friends that just like my

boyfriend right now He got a financial

455

advisor because like he just didn't study

this This is not what he knows and he just

456

like wanted to be able to have advice like

So I think because there are financial

457

advisors that aren't like crazy expensive.

458

Sometimes with that comes like hey

I'm, not like too thrilled what

459

they're doing with my investments

or like i'm not getting that great

460

of a return like then you kind Of

would be like be able to move on.

461

I do think they are incredibly helpful

in like Because it can be super

462

overwhelming and just like knowing where

everything's going and help you kind

463

of get your shit together If that makes

sense and just like kind of help you

464

stay on top of it Like for me like I am

not gonna be in my investment account

465

like selling and like buying stocks

every day That is just not my thing

466

Christine: Yeah.

467

Nicole: it's nice to have somebody that

468

You know, I know, it's like kind

of taking care of it for me.

469

But then some other people are much more

470

hands on with that kind of stuff.

471

I think it depends on the

kind of person you are.

472

I do think, like, it is, it is

worth it if you just, like, you

473

don't know what you're doing.

474

like, I don't know, like, I'm pretty,

like, ADD and like, it's just,

475

like, I don't have time for that.

476

Like, that is just not

on my current schedule.

477

Mind all the time which is like I

wish it was and I wish I was the

478

kind of person that could be able

To do that, but I'm not like just

479

the way that I am and so for me I

480

think it's absolutely worth it And I

think if you're the kind of person where

481

it's like, oh my god, like I need help

then Yeah, it's definitely worth it.

482

Like like I said before you can find

there are financial advisors for you

483

know, different income levels and I think

It's if it's in your means and absolutely

484

like go for it like I feel like financial

advisors a lot of people think of it as

485

being like I'm the cfo of like uber or

like something like that And it's like

486

you need someone to like financially

advise you on like what to do next But

487

no, they do make them for regular like

people like us so I think it just depends

488

on your kind of situation because

like also like my best friend.

489

She's so good.

490

I just like Being on top of this.

491

I was like, I could hire you to be my

assistant like I would So I think for

492

her like it's not as necessary but

so I think it's yeah again it depends

493

Christine: Mm-Hmm?

494

Alexandra: So if someone's not ready or

at a place to splurge for a financial

495

advisor, I know you briefly mentioned

earlier like doing your research on the

496

internet, but is there any like thing you

remember from school that would is just

497

like a basic resource that people can

use to learn to understand more of the

498

terminology and Principles of investing

or saving or some of the concepts

499

without, you know, having to go through

school and getting an accounting degree.

500

Nicole: Very fair, I think like In those

kind of instances That's like that's a

501

good question I feel like if you're trying

to get to know the world better like

502

youtube Like there's so many things out

there that people have posted like you can

503

literally learn anything on the internet

nowadays and I think it's worth looking up

504

like I always kind of think like I think

of it like When I first started working

505

in the corporate world like my first,

you know internship Like I just didn't

506

have much to do there wasn't much for me.

507

So I I Would fill my spare time

while I was like at the center and

508

trip like I took an online excel

course like I think I was like

509

junior in college like I was young.

510

So I just like took an online

excel course and learned a lot

511

and Not to say I'm an Excel wizard

now, but I know a thing or two.

512

So I think like, so even just like

that, it's like if, you know, take

513

a couple of minutes, like, or even

Saturday to like, just like, spend some

514

time giving me like, give me the 101

on YouTube or whatever that may be.

515

I feel like that's a good

place to start if you like, you

516

really just like, don't know.

517

You hear all these terms, and

like, sometimes, like, I feel

518

like that's the best way to

519

Alexandra: Yeah,

520

Nicole: kind of, like, even, like,

start from, like, basic, and then

521

you can definitely find different

things if you want to know about

522

a specific area more than another.

523

So I feel like that would be

524

a

525

Christine: Yeah.

526

Nicole: good way to go.

527

Alexandra: that makes sense.

528

Well, now I have homework to

529

Christine: Same.

530

Alexandra: I get to go

531

Christine: I no, that's

a great point, Nicole.

532

I I agree.

533

YouTube's a great resource.

534

And I think too, is something

I've slowly become more

535

comfortable is just copying too.

536

I think the fact that I don't

know what I don't know and

537

not be embarrassed about it.

538

I think, Simon Sinek did an interview

where he was talking about how he

539

was in a boardroom and they were

having like this conversation and

540

everybody was shaking their heads.

541

Like they understood what was being

talked about and he raised his

542

hand and he was like, I'm sorry.

543

But can you like take this again and

talk about this as if I'm like completely

544

dumb and don't know what you're saying?

545

Because I totally don't know

what we just talked about.

546

And it wasn't until he said that and

opened up that conversation for everybody

547

that everybody else is like, yeah, you

know, I know I was shaking my head in

548

agreement, but I too don't know what

the hell we were just talking about.

549

So I think that's just

a really good point.

550

Like, don't be afraid to ask the question

or say, can you explain what that means?

551

Because I don't know what it means.

552

Alexandra: Well, I think

that's a good point.

553

Like so many people I know of and I

definitely get trapped in that sometimes

554

of being like, I don't wanna look

stupid or sound stupid, so I'm not

555

gonna ask a question that'll help better

556

Christine: Mm hmm.

557

Yeah,

558

Alexandra: Alright.

559

Christine: yeah, get it.

560

yeah,

561

I get in my own head

sometimes when it comes to

562

stuff like that.

563

Nicole: Yeah, no, that

happens to me at work.

564

Like, I'll be like, not to sound

like a dumbass, but what the fuck?

565

And they're like, no,

like, thank you for asking.

566

I'm like, oh.

567

They're like, that's a great

question, and I'm like,

568

okay.

569

Alexandra: Mm-Hmm?

570

Nicole: If you insist.

571

Christine: I think people really

appreciate it, too, because it

572

gives them an opportunity for them

to expand more and, like, people

573

love to teach people things.

574

Nicole: Even, With some of the interns

in our group, It doesn't feel that long

575

ago that I was them, but it really,

Like, sometimes I'm like, oh my god, like

576

they're talking to me like I'm an adult.

577

girl, it is fine.

578

Cause a lot of them are

like, I feel so bad.

579

Like, they're so nervous

to ask a question.

580

I'm like, literally when it comes to this,

like, no question is a dumb question.

581

If you've been working here for like four

years and you don't know what's like up

582

and down and left and right, like, to a

certain extent, it's like, cause after

583

a while, like, you have like, oh, okay.

584

A little bit of an idea

of what's going on.

585

Alexandra: mm-Hmm.

586

Nicole: Not everything, but like.

587

But it's like, when

you're first coming into

588

this, like, I don't expect you to know

anything, and I think it's important

589

for it to be like, there are no dumb

questions about this, and it's easy to be

590

like, oh, I don't want to sound like an

idiot, but it's it's okay to ask, and it's

591

like, by, I feel like especially in the

workplace, by asking, have And just kind

592

of confirming your understand like it's

not a bad thing, you know what I mean?

593

Like it shows that like

594

you care like it's you're like, oh like

why are we doing and then I think with

595

other people too Like you don't know what

you don't know and that's not your fault.

596

Christine: Exactly.

597

Alexandra: true.

598

I met with somebody Yesterday we were

talking about business and stuff and

599

we kept coming up to the thing of like,

well, I don't know what I don't know

600

and you don't know it until you come

to the fact that you don't know it.

601

I was like, yeah, it's just like, I was

trying to figure out questions to ask you.

602

And then she's like, I don't

about what I don't know.

603

And I was like, that's kind of hard to do.

604

But like, if you have a question, just

shoot me a text message and we'll chat.

605

But yeah, like you said, chatting with

friends and asking questions and it's so

606

funny because I think I would tell other

people, like you said, just, just ask.

607

But when it comes to myself, I'm not

so great at taking my own advice.

608

So.

609

Christine: I hear that.

610

Yeah.

611

Alexandra: All right, so

let's roll into the our next.

612

Next segment taxes, if anyone's

interested, now that we are right

613

around that season right now.

614

So what are some of, Nicole, what

are some of the biggest mistakes

615

that you've seen or heard people

make when it comes to taxes?

616

And what is your advice

on avoiding said mistakes?

617

Nicole: What are some of the biggest

mistakes that i've seen ignoring

618

your accountant don't ignore us

619

Christine: Okay.

620

Nicole: think Well, I'll say this like

I feel like like mistakes happen and

621

so it's hard to be like oh the biggest

mistake I think it's It's more so, oh,

622

here's one, because somebody hit me up

and asked me this question recently,

623

is like, hey, like, TurboTax says I owe

money, like, is it dumb to just like

624

extend the return and deal with it later?

625

An extension of time to file is not

an extension of time to pay tax due.

626

If you do that and you don't

pay anything, you will get hit

627

with interest and penalties.

628

And so I think that's like a big

thing is like just like pushing it

629

off and not doing anything about it.

630

Like, Don't do that.

631

Like, if you owe money to the government,

you, in order to not pay interest

632

and penalties, like, you can file an

extension, but you need to make sure

633

you're covering either 90 percent of

your current year liability paid in,

634

either through estimated payments or

withholding from your company W 2.

635

Or you have to have paid in 110 percent

of your prior year tax liability.

636

That's called safe harbor.

637

Which is basically like sometimes like

you have a year where you make a bunch

638

more money than another year but and if

you end up owing a ton as long as you

639

pay 110 of last year like That's fine.

640

yeah, don't like that's a big one

Like you can't just like not pay

641

Christine: you owe.

642

Nicole: so I feel like that's and like

if even if you're not sure like you

643

want to make sure like Like you don't

want to just like ignore it If that

644

makes sense, like, especially like now,

645

if you're not too sure why, like, you

can always file an extension, and then,

646

yeah, you can figure it out later,

but you definitely want to be able

647

to, like, pay the liability, because

then you get a refund, you know, but

648

you don't want to

649

just, like, avoid payment.

650

File

651

Christine: No.

652

Nicole: that's

653

another

654

one.

655

Yeah,

656

um,

657

Christine: Yeah.

658

Nicole: and I know that you

659

have, yeah, and, like, you can file an

extension, like, A ton of my clients

660

are on extension, like, things are

just not ready in time, like, it just,

661

it depends on your situation, like,

there's nothing wrong with extending,

662

but, like, you do have to make an

extension payment if you're gonna

663

Christine: Mm

664

Nicole: And I think that's, like,

another thing is, like, a lot of people

665

think, like, the government is scary,

like, the IRS is scary, like, yes, to

666

an extent, Understand like you are not

the only 20 something teenage girly

667

in the world that like we're like what

like even I like individual income

668

taxes is not my personal specialty.

669

I do have like familiarity with

it but I think it's like usually

670

like The IRS is gonna come for you.

671

Like, you know you're evading your taxes.

672

Like, you know you're committing fraud.

673

Like, usually it's pretty intentional.

674

There are things called amended

returns if something gets messed up.

675

Like, you can always go

back and, like, fix it.

676

usually it's like, you're

gonna go to prison.

677

But, or, what's his name

from the Jersey Shore

678

that went to prison because

he was evading taxes?

679

What's his name?

680

The situation.

681

Like, he was straight up, like, Avoid it.

682

like, tax evasion.

683

Don't evade your taxes.

684

Yeah, I think it's important to like,

685

Christine: crazy.

686

Nicole: it's okay.

687

The IR, yeah,

688

Alexandra: to run.

689

Okay.

690

Nicole: of people think it is.

691

I

692

think it's because nobody, you

know, they didn't teach you this

693

in school, which is kind of crazy.

694

But, like, at the end of

the day, like, it's okay.

695

Like, it, it's not, you know,

like, I mean, people make

696

Christine: hell?

697

Nicole: all the time on,

698

like,

699

Christine: I paid so much

money for an education.

700

Nicole: yeah, right?

701

But it's, like, mistakes happen,

there are amended returns, like,

702

again, unless, like, One thing they

told us about in business school was

703

like the whole Ed and Roland scandal.

704

Like, they, like, straight

up were like, fraud.

705

Fraud.

706

Fraud.

707

Like, it was like, like that, like,

you're gonna get in trouble for.

708

But it's like, if you're No, like,

people like us, like, they're not, like,

709

we're not trying to evade our taxes.

710

We're not trying to get in trouble, and

I think, the IRS understands that, like,

711

we're trying our best, like, half the

time they come out with tax legislation,

712

I can't make a decision on it.

713

Like, it is okay.

714

We are okay.

715

We are not gonna be afraid of the IRS.

716

it'll be alright.

717

So I think, like, that's

important for people to know.

718

As long as you try.

719

That's all we gotta do.

720

Alexandra: With that, we had

talked briefly about like, oh, I

721

wish this was taught in school.

722

Like Nicole, do you think they should

teach this to like high schoolers

723

or should this be a, just a standard

part of general curriculum in college?

724

Like what, at what age do you think

we should start learning about?

725

This stuff.

726

Nicole: I think, that's a tough

question because, like, in high

727

school, like, I don't give a fuck.

728

Like, like, taxes are not on my mind.

729

Like, that is, like, a lot of people

aren't making money in high school.

730

I think it depends on the person, but

I mean, like, that's kind of tough to

731

say, and not everyone goes to college,

so maybe that's, like, the issue.

732

I do think that there should be, like,

maybe senior year of high school.

733

Like, hey, 101.

734

Here's like what you're doing when

you're doing it like here's like

735

just kind of like a general or even if

like they had like a class at the YMCA

736

or something I don't know like I think

it's just helpful to be like this is

737

like what this is what a deduction is

like that would have been great I would

738

have loved to know what a deductible is

for health insurance way sooner than I

739

did like just like things like that I

think it would be helpful to have like a

740

101 life course like by the way there's

this thing called health insurance.

741

Things like

742

Christine: Health insurance.

743

I think like the importance

of building credit.

744

Nicole: oh yeah, the

hot, that's a big one.

745

Alexandra: Yeah.

746

I feel like there's also like, you

know, pay off your credit card so

747

you don't accumulate a ton of debt.

748

Yeah.

749

I was, I would definitely say that.

750

I don't know if Christine shared with

you the story that I I experienced

751

with my tax accounted this year.

752

Because I, you know, file a couple,

like, I have a couple different forms,

753

like my W 2, and then you know I

was the part of a different podcast.

754

So getting my K one form from

that group for a part of the year.

755

And then I was filing a schedule C

cause that's what I was told to do.

756

And then this woman just kinda

gave me some investing advice.

757

Like we were talking about Roth

IRAs and 401ks, but this was.

758

solely based on her opinion, not

why I was there, like, just file my

759

taxes, please, and do it correctly.

760

And she, and then she went on to

tell me some very sketchy business

761

practices, which I will need to have

some, many questions for people later.

762

But it was just, it was just kind

of a horrendous thing that I was

763

like, I just, I just want to pay

my taxes and get out of here.

764

Like, I don't want, I'm like, I just

don't want the IRS to come knocking on the

765

door saying, hey, you owe us more money.

766

And so I think this conversation has

helped kind of alleviate some of that,

767

that fear that the IRS will come knocking.

768

But yeah, there is like so much that

is involved and it was, it was crazy.

769

So I will not be going

back to that person.

770

And yeah, probably not back to that.

771

company either.

772

I think I read the review that

created for, for that experience

773

Christine: Yeah.

774

Alexandra: and she's like,

775

Christine: Whoa.

776

Yeah.

777

I was like, damn.

778

Okay.

779

But to, to that point,

Nicole, do you have.

780

Like advice on what to look

for in a good accountant

781

Alexandra: Yes.

782

Christine: maybe where to

783

Alexandra: Or things to run from.

784

Yeah.

785

Nicole: going to be trial and error.

786

Like I, so for the company I

work for, it's not cheap for

787

us to have you do your taxes.

788

But like, with that, like, You are

demanding and you are expecting the

789

highest of quality like the best

advice that you can get like that is

790

that's kind Of how we differentiate

ourselves and so That like you

791

you can pay a premium for that.

792

Absolutely But then I think for like

regular Tax planning it depends if

793

you're a tax accountant is not being

responsible like granted We know Or

794

I I do like I do appreciate so much

when a client can, like, understand.

795

It's like, hey, I have ten

other clients screaming at me.

796

I've been working a hundred hours a week.

797

Like, I have not slept.

798

please don't be mean to me.

799

I think I will always

try to get back to you.

800

There may be certain delays.

801

Some clients are a little bit

more communicative with me.

802

Some other clients, it's like, I have

to be the ones to reach out to them.

803

But I think if like, you're constantly

reaching out and you're not hearing

804

anything, like, no, like, I wouldn't

tolerate that kind of service.

805

Like, I am paying you.

806

Like, I understand, like, especially

coming from me, like, if I was, if

807

I'm in the position where I'm hiring

a tax Give me the time of day, if

808

I'm like reaching out, like nothing,

you know, don't like, if you're

809

being felt like you're pushed to the

side, like you're not that important and

810

whatnot, then I think it's definitely

worth moving on, but yeah, I think,

811

again, it's just like, who do you feel

comfortable with, who's been able to,

812

if they've been like, you know, made you

feel comfortable, if they've educated you.

813

Christine: All right.

814

No, those are, that's, that's all

really good things to keep in mind

815

And then maybe the last thing to ask

is with, with the tax season over,

816

I, I bet you're excited, Nicole.

817

Nicole: I'm so

818

excited.

819

Christine: is there something people

can do to better prepare for next year?

820

Nicole: Again, I feel like I've

said this a hundred times, but

821

it depends on your situation.

822

I think, if you have a W 2 and you're

not planning on doing anything, like,

823

Oh, like not really If you're planning

on selling a bunch of stock if you're

824

playing like it depends Like if you're

planning on doing stuff, like if you

825

are that is income generating Yeah,

like definitely I think you want to

826

kind of be aware like talk to your tax

advisor kind of look into it It's hard

827

to say like tax law changes every year.

828

Yeah If you're kind of, like, really

happen to be the kind of person that's

829

super involved in, like, what's going on

in the world, like, pay attention, like,

830

to how certain things might affect you I

think it's, or if, like, you hear, like,

831

hey, there's, like, this new act that's

been proposed, or new legislation coming

832

out, and you have a tax accountant, like,

bring it up with them, have a conversation

833

income generating activities, like,

you're planning on doing that, buying

834

or selling a home like that definitely

talk to your tax advisor because there

835

are like ways you can do it that are not

so tax friendly and ways You can do it

836

that are tax friendly if you are planning

on So for when you get your w 2 Which

837

is basically like your job you get the

form at the end of the year your job

838

will withhold money On your paychecks

839

to pay your taxes at the end of

the year If you're selling stock

840

if you're getting a ton of interest

or dividends for whatever reason If

841

you have like a side business that

are you know, you're generating

842

revenue like any income that you're

generating You got to pay tax on it.

843

So you can get kind of like Like if you

even at like regular filing deadline,

844

if you owe a ton of money and you

haven't paid in enough, like you'll

845

get hit with an underpayment penalty

because you're supposed to be paying

846

in quarterly throughout the year.

847

It's called estimated tax payments.

848

They are due April 15th, June 15th,

September 15th, and then December 15th,

849

sometimes January 15th for individuals.

850

But that's kind of how the quotas work,

so you want to kind of, if you know that

851

you're going to be making a ton of money,

that there, like, a count as you make

852

that money to withhold a certain amount

for taxes or make an estimated payment.

853

But again, like it is

very situation dependent.

854

I think if you're not sure

just like to your accountant

855

Christine: I get to talk to you.

856

Nicole: Yeah, you do.

857

Alexandra: I think I'm going

to try and scooch in on that as

858

well, because I have questions.

859

Nicole: Yeah, absolutely.

860

Christine: awesome.

861

Alexandra: that's all my questions.

862

Like, I don't know.

863

I feel like taxes always.

864

And you know, money always

makes my head run round

865

and round.

866

It takes a little bit to absorb it all.

867

And then I'm like

868

okay.

869

Hmm.

870

Nicole: I'll say this, I've been,

871

I've been doing this for five

years, and they're like, every

872

day, and like, after five years,

I'm like, the light bulb goes off.

873

Like, it is okay, and like, I think it's,

like, normal, like, you know, certain

874

things kind of click, and it's not easy.

875

Like, it is not an easy concept, and

that's why, like, You know, I have a job.

876

It's because I'm needed.

877

So definitely, like, I think

worth it to, to have those

878

people in your life to help you.

879

Christine: Alright, well, based on

our conversation today I think it's

880

pretty evident that taking control

of our personal finances is crucial

881

at every stage of life, and it's

important to remember it's not as scary

882

as one might think, from setting up

a Roth IRA to exploring investments

883

in high yield savings accounts, the

journey towards financial security

884

begins with informed decisions.

885

Remember, it's never too late to

start saving and planning for the

886

future, and when tax season rolls

around, finding a trustworthy

887

accountant can make all the difference.

888

I want to extend a heartfelt thank

you to my sister, Nicole, for joining

889

us today and sharing her insights.

890

And we look forward to having

you back on the podcast soon.

891

Join us next week as we shift gears

to discuss our love and hopes for the

892

health of our beloved mother earth.

893

Until then, stay curious

and financially empowered.

894

Chat soon.

895

Alexandra: Enjoying the

conversations we're having and

896

the topics we're discussing?

897

Consider supporting us through

our Buy Us a Coffee page.

898

We greatly appreciate any help in

creating this podcast we love so much.

899

Link in our show notes and link tree.

900

Before we end, don't forget to

like, subscribe, or follow us on

901

your preferred listening platforms.

902

And we'll catch you next time.