Wealth by Design

When it comes to entrepreneurship, we hear a lot about how y'all want to do good and give back. And we've talked about that before, from donating cash to creating private foundations to creating socially minded business. Today, we're talking to an entrepreneur who has built a business designed around the concept of social good and we think you're gonna love it.

Listeners, meet Stephanie Hepburn of Good Cloth.

This episode is really eye-opening, both from an entrepreneurial standpoint and from a consumer standpoint. We already know you're gonna learn a lot, so make sure to listen along.

• 05:03 What purchasing power has to do with preventing human trafficking

• 07:21 How reader feedback led Stephanie into retail

• 09:43 Why Stephanie was resistant to B-Corp status at first

• 10:14 The importance of being honest about how you do business

• 12:02 The misconceptions of sustainable clothing

• 15:40 The spectrum of sustainable or socially minded businesses

• 16:58 Why Stephanie decided B-Corp status was right for her brand

• 18:05 What's involved in choosing products with transparent supply chains

• 20:44 How Stephanie encourages retailers to improve their transparency

• 23:48 The importance of failure and learning

• 24:46 How it's possible to bootstrap your passion project

• 26:48 Stephanie's tips for making a difference AND a profit

• 27:54 How the sustainable and ethical fashion industry has changed

• 30:42 Why regulation and legislation are critical in transparent supply chains

• 32:06 How sustainability and ethical operations make every business better

• 35:00 Why Stephanie doesn't think success and social good are separate

• 36:12 What's on the horizon for Good Cloth

Stephanie, who is also a journalist, began her journey into the world of sustainable fashion after writing a book about human trafficking. During her research, she realized that a huge portion of the fashion industry is set up to make things like labor abuse and trafficking incredibly easy for those who want to take advantage. Stephanie also realized that it was nearly impossible to find a transparent supply chain, so that companies and consumers could know exactly what type of life their purchase was providing to clothing industry workers. This led her down the path to creating her own online retail store — Good Cloth — which focuses on only selling clothing, accessories, and products that are transparent, sustainable, and ethical.

As part of her business model, Stephanie really tries to bring in different audiences and different people, highlighting the issue of human trafficking and poor labor standards as they make contact with her products and/or brand. Each Good Cloth product gives a strong description of where it came from, who made it, and how it makes a difference. This alone helps consumers learn more about the process of ethical fashion and why it's important. It also builds trust, which is the cornerstone of ethical fashion, according to Stephanie.

But it's not always easy.

In this episode, Stephanie walks us through how she finds her retailers and what sort of "vetting process" she goes through to ensure her products are actually ethical. Doing the research and asking the right questions is critical to finding sustainable retailers, material sources, etc., she says. Thanks to her background in journalism, she is able to do this, but she also admits that it's taken a long time. Her labor of love is clear if you've ever browsed Good Cloth's online store, though, where each collection is curated so thoughtfully.

We also learned a lot about how most "sustainable" products out there are actually not as sustainable as they're advertised to be. And in some cases, she told us, it's a matter of choosing what is most important to you in the manufacturing and retail process. For example, some businesses may be able to process recycled products and use that for their materials, while others may be able to ensure fair wages and prices. There is a wide spectrum of sustainability that doesn't make one better than the other; it's supporting what's most important to you.

"It's nuance, understanding, and meeting with people where they are," Stephanie said. And Good Cloth doesn't just say "No" to every retailer who doesn't meet their standards. Instead, the brand supports retailers and sources as they attempt to be fully sustainable, while holding them to a higher standard. This means that some may have to come back after they've improved certain areas of their operations, but that sort of feedback makes the industry as a whole better, and it gives other ethically driven brands a standard by which to measure themselves.

Of course, our favorite part of our chat with Stephanie was digging into the money. So often we hear "I want to make a difference, but I gotta make money." Stephanie talks about how she's been able to build a profitable business from Day One, which we think will calm a lot of your worries. Are you ready?

• Make it low-cost and low-risk. You don't always have to take out loans and you don't need expensive branding or employees right out of the gate. Start with what you've got and make it grow from there.
• You don't have to scale too fast. Grow at your comfort level. It helps to learn your business inside and out before making things complicated.

Pretty easy, right? We think so.

Last but not least, we talked about changing consumer attitudes toward fashion, as well as regulation and legislation, and how they're helping to improve Stephanie's industry. She believes that regulation and legislation are a good thing that will help all businesses improve and, as a result, the world. Part of her effort to shed light on poor labor practices and human trafficking is made more effective through regulation and laws. She believes that government involvement in industries like retail will keep people safe, ensure fair wages, and create a stronger economy. And fair wages and pollution aren't a third-world problem, Stephanie says; these things happen in the U.S. too. Be aware and educate yourself when you buy something — it's the best way to make sure you're putting your money where your values are.

We were SO motivated by our chat with Stephanie, especially by the theme of elevating the standards of entrepreneurship. Even if you're not a retail or clothing brand, the principles of sustainability and ethics transfer. What are you doing to make a difference? Who are you advocating for, and what are you protecting? And how will you do it WHILE making a profit?

Don't miss this episode, y'all.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• Good Cloth
• @shopgoodcloth on Twitter and Instagram
• Crisis Talk, where Stephanie writes about mental health
• Brand photos

• • Ask Your Questions

• • On Facebook

• • On Twitter

Are you about to marry a small business owner or entrepreneur? Are you in a committed relationship with one? Whether you or your partner have a side-hustle-turned-income-stream or are building a budding small business, there are bound to be questions about finances. After all, how can you make it work with possibly variable income, and what will you do if 💩 goes sideways? But really, commingling finances with a business owner is about more than that. It's about what you plan to do as a couple as the business grows, and what happens in the event of death, disability, divorce (hey, it happens), and so on.

So this episode is for the committed peeps among us, who are in long-term relationships, married, or about to get married. And while it's totally cool if you're dating someone, you may want to bookmark this for future reference, as we only recommend commingling finances once you've got your boo on lockdown. Now, let's dive in.

• • [01:49] Why your non-business owner partner may feel like an innocent bystander

  • [02:24] What Jeff Bezos' divorce teaches us about commingling finances

  • [04:54] Taking your business income into consideration in your relationship

  • [05:10] Why business growth should be talked about as a couple

  • [09:56] How to overcome the awkwardness surrounding the "commingling finances" conversation

  • [11:29] The legality of commingling finances

  • [12:15] The most common reason for divorce

  • [14:12] The 5 D's of commingling finances

  • [14:24] What to do to prepare your business (and spouse) in the event of death

  • [14:42] The importance of figuring out who will take over your business if needed

  • [15:48] All about prenups, equity, and rights

  • [17:21] How disability insurance can help your partner and your business

  • [18:38] The types of debt you may be bringing into your relationship

  • [19:30] The role failure has in your personal finances and relationships

  • [20:33] How to plan for the 5 D's

  • [22:23] Why you should go to business financial planning meetings as a couple

  • [27:43] Why estate planning isn't just for old people

First and foremost, let's address the question: "Why should you commingle your finances?" For some couples, it may seem unwise to even think about it, as variable incomes, business emergencies, or business debt may seem like huge obstacles to overcome. But we're big fans of the ol' commingle — and we'll tell you why:

1. In most states, there is a "common law property" rule, which basically says that anything you accrue as a couple (after you've been together for a while) is owned by both parties. So, if you split up, you gotta split your stuff anyways. It's the law.
2. It builds trust and a stronger relationship. When you're on the same page with money, you're on the same page with your goals and wishes, too. Being open about money and working together to build security is one of the best parts of a lifelong partnership.
3. Your partner in life, especially if you're married, automatically becomes a business partner. Yeah, they're helping you support the business, but the business will also be handed to them if something happens to you.

Needless to say, commingling finances with a business owner beau is one of the best ways to protect each other, especially if something happens to the business or the person who runs it.

Danielle's crafty brain came up with a fun system for commingling finances as a business owner and their partner. She calls it The 5 D's and it goes a little something like this:

As you probably know by now, we're not afraid to talk about death. When you marry a business owner, or you're a business owner marrying a non-biz owner, you should also be talking about death. If you don't have your finances combined and, god forbid, you die, will your partner know how to manage the business finances, or what is expected of him or her to keep the business running? What's your succession plan and does your partner know it?

Keyman insurance can help with succession planning, as it protects the business in the event that a key man (or woman) can no longer work in the business. This makes sure things go smoothly for your spouse and your business and ensures that personal finances aren't affected by the business end of things.

Unfortunately, divorce does happen — and money is the #2 cause of divorce (behind infidelity). Soooo. It's important to really think about how you combine your finances and operate as a couple. Ask yourself: How will you divide equity of the business, the rights to it, and what role will your ex play in the business if you split? Do you want or have a prenup? Think Jeff and Mackenzie Bezos: when Mackenzie filed for divorce, she was entitled to half of the accrued wealth from Amazon. She got half of $137 billion. So, like a LOT of money. She also had the option to keep her voting rights within the business but relinquished those to Jeff, as well as any interest in some of his pet projects. While your business may never reach the billion-dollar mark, it's worth having conversations about what you and your partner think is fair.

There's still a lot of stigma around prenups, but they're designed to protect both parties — and anyone else who works in the business. If there are other partners in your business, for example, they may need to buy out your spouse in the event of divorce. It's somewhat complicated to draft a prenup, though, so working with a contract or nuptials lawyer can help.

Sometimes, you have to prepare for a disability like it's a death. In the event of a major injury or illness, you will be unable to step in and run the business — so who will? Do you want your partner to run things, do you have a partner you trust, or will the business fizzle out? Planning for disability in your business takes the same preparation as a death, but it's worth it to protect your family. Keep in mind that there may be extra costs associated with disability, as well, such as hefty healthcare expenses and the loss of your business income. That's why long-term disability insurance is recommended for business owners, but you should talk to your insurance agent or CERTIFIED FINANCIAL PLANNER™ to find out which plans and premiums are right for you.

If you went to college, if you didn't bootstrap your business, or if you made some poor credit card decisions, you may be entering your relationship with debt. When you get married, your partner is taking that on and they need to know about it. It's the best way to open that channel of communication and to make your spouse or partner feel part of the process. You'll need to work together to pay down the debt, and you'll also need to put protections in place, like business insurance or liability protection, to make sure your partner doesn't get saddled with debt in the event of divorce, disability, or death.

Sorry to say it, y'all, but not every business can be a success. As a lot of us know, on the track to success, you'll rack up a few failures. If your business is not working and you can't get into the "black," you and your partner may be facing debt, bankruptcy, and major financial stress. Again, your spouse is your partner in business, so don't keep the problems from them. Talking about your business from the get-go will make it easy for your partner to come along for the ride, and you can plan together for that worst-case scenario.

Are you wondering how you actually put the 5 D's in place when commingling finances? Don't worry, we've got a few tips for you:

1. Talk!! This means really setting aside time to commingle accounts and information, and committing to laying everything out on the table. Don't hide anything from your partner. And then, we (of course) recommend connecting with an expert who can help you navigate the technical parts of combining finances. If your business owner partner has a CPA or CFP, go with them to meetings, or ask to be included on calls. This keeps the channels of communication open and helps you plan as a couple.
2. Focus on protection and security. You need insurance — period. Whether that's disability insurance, life insurance, contracts to protect your business, or all of the above, you need to cover your 🍑, and your partner's. Talk to your financial planner, to your lawyer, or to your partners. Make sure everyone is protected and that everyone knows what to do in case things don't go as planned.
3. Actually start estate planning. Know what's gonna happen when you die. Wills, guardianships, trusts, power of attorneys, etc. are all important — and not just for the business owner. This is something all couples should do, but it's particularly important for couples with a business.

We know this gives you a lot to think about, but we know how important it is to really start your life together off on the right foot. While it may not seem romantic to talk about disability insurance or prenups, we know it'll bring you closer together.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• The Toujours Planning Quiz — Are we a good fit for your financial planning needs?
• Jeff and Mackenzie Bezos' divorce
• Our FREE go-to financial and life planning resources

• Ask Your Questions

• On Facebook

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**Summer Replay: Here is one of our favorite episodes we are re-releasing with a new introduction. Stay tuned for all new episodes coming later this summer**

On this episode of Worth It, Dustin R. Granger, CFPⓇ and I interview Jesse Patel, the cofounder of Workflowy, the fastest, most flexible list maker on the planet and one of our absolute favorite tools for business and at home. We discuss how this simple, but powerful tool has changed our lives and his. We dig into his journey from working a typical 9-5 job, to joining an incubator, to creating the ultimate list-making program, where you can shift focus from the big picture to minute details in a fluid fashion. So take a pause from your to-do list and listen to our interview with the creator of the ultimate to-do list app!

• [2:34] The journey behind the creation of WorkFlowy: from idea to incubator to success
• [16:41] How the app appeals to people on both ends of the organization spectrum
• [27:54] What are the changes and goals does Jesse envision for Workflowy
• [32:25] How Jesse strives for balance and flexibility as co-founder of a startup company while raising twin toddler girls with his wife

According to Jesse Patel, it's a way to think big, but start small. It is basically a giant to-do list, where you can dump all your ideas in and then create order from the chaos. From podcast notes to procedure manual, Dustin and Danielle use WorkFlowy at work (it's completely essential to their business!) and at home. As Dustin says, it becomes an extension of your brain, where you can work out your thoughts. It is the perfect tool for thinking and focusing because you can shift your focus from big picture ideas to the tiny details in a fluid fashion.

The app appeals to people on both poles of the organization spectrum, from Type A to the more scattered brain types. It fulfills a core need for people, to be able to see all their thoughts catalogued and searchable. It has been used by doctors, lawyers, screenwriters, and more. No matter the career path, users can create their own systems and processes tailored to whatever business they are in.

Even though the key to WorkFlowy is the simplicity, Jesse hopes to continue to improve and add to the app. One of the key features he believes is missing, is a dates & reminder system - a way for the app to pull out certain parts from across various lists and create a daily to-do list. Despite this challenge, users continue to use the app for hours a day. Danielle put it best, once you use, you are hooked and there is no going back.

Jesse is a CEO of a successful start-up, father to twin toddler girls, and loving husband, how does he do it all? He stresses the importance of setting up specific work hours during the day in order to not fall back into his workaholic ways. Jesse also learned to understand when to step back in his business and trust in the work of others, you can't do all the things always. Occasionally you also need to give yourself some space (maybe on a skateboard) to be creative.

• WorkFlowy
• WorkFlowy on Twitter

• Ask your questions!
• On Facebook
• On Twitter

**Summer Replay: Here is one of our favorite episodes we are re-releasing with a new introduction. Stay tuned for all new episodes coming later this summer**

Managing your money is a little bit like going camping or hiking. You spend a lot of time preparing and packing for the journey and then you're off, ready to see where the road takes you. But what happens when you forget your map? And what happens when you don't plan out where you're going?

Starting off without a direction can feel exciting, but it can also prevent you from seeing (and doing) everything you want. The same goes for your money. If you don't have a direction for your money, you may feel like it's not enough, or that you're not able to reach your goals. But your money can help you do all those things… it just needs a little direction. Listen to this episode to learn why your money needs direction and how to do it.

0:48 The importance of a roadmap when it comes to using your money successfully

5:47 Why Dustin doesn't go hiking without a map anymore

11:05 How hiking without a map is a lot like managing money without direction

11:55 What 'direction for your money' really means

13:49 Dustin and Danielle's favorite resources for giving your money direction

13:59 How to determine your direction with a net worth statement

14:30 Why you need a timeline for your financial goals

15:14 The power of an investment plan in giving your money direction

17:41 How the bucket strategy helps you give each dollar a job

In this episode, Dustin and Danielle give you plenty of reasons why you need a direction for your money. But where do you even start?

To give your money direction, you'll need to start by calculating your Net Worth. Dustin and Danielle share a Net Worth Calculator in their collection of financial planning resources that makes this easy. This will tell you where you're at with money and you'll have a better view of where you need to focus your money most.

Dustin recommends doing this at least once a year. It's an ongoing living document that needs to be updated so your money's "marching orders" are in line with your current situation.

We all have goals and most of us have them written down. But what if you added a timeline to them? In this episode, Dustin and Danielle give you some great questions to ask yourself to flesh out your timeline — and they also give you tips on how to use a Financial Timeline to help you see your plan in action. (Note: They have a timeline you can use in their financial planning resources).

You might read that and think an investment plan is a financial plan. But it's not. An investment plan is something you can do without an advisor, and it's more of an investment goals analysis than anything. It's not just for retirement investment goals, either. An investment plan is great for investing in a work-optional lifestyle at any age — or for travel, home buying, college savings, etc. To create an investment plan, Dustin and Danielle share their favorite investment planning tool that will tell you how to direct the right amount of money to your goals.

(P.S. Check out the episode if you want to see how to use this tool to the fullest.)

The best way to give your money direction is to give it different jobs. At Worth It, we've talked about the "Bucket Strategy" before, which includes:

1. The first bucket: Your emergency fund.
2. The second bucket: Your intermediate goals.
3. The third bucket: Your long-term goals.

Dustin and Danielle explain what each of these buckets mean and how you can direct your money to fill each one, so make sure to check that out. They also explain how the investment planning tool will help you figure out how much to allocate to these goals (and how long it will take you to get the buckets full).

Hopefully, this episode gives you a great launching-off point for your new money "map." The best part is that you can do these yourself and figure out where you stand… without ever asking for help.

Have you decided you need help giving your money direction? Toujours Planning may be able to help. See if we're a good fit by answering a few simple questions.

• Big Bend National Park
• Worth It financial planning resources
• Saving for the Future While Enjoying Life Now (Episode 4)

• Ask your questions!
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**Summer Replay: Here is one of our favorite episodes we are re-releasing with a new introduction. Stay tuned for all new episodes coming later this summer**

The most liquid asset is cash, but what about other assets? And what does liquidity mean? On the Worth It podcast, we dive deep on what liquidity is (and is not) and what it can do for your finances.

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Which is easier to drink when you're thirsty: a block of ice or cold water straight from the tap? The tap water, right? It makes sense in this context, but many people — especially business owners — have a hard time understanding how this applies to their assets.

Liquid assets are the kind of assets that are easy to buy and sell without affecting the asset's price. This means that you, whether as an individual or as a business, can easily liquidate (sell) assets without worrying about delays in time or decreases in value. Think of the difference between selling some stock and selling a house; the stock has a very clear value assigned to it and you can sell it in a matter of minutes, while a house can take weeks to be valued, put under contract, and finally sold.

In this week's episode of Worth It, Dustin and Danielle are talking all about liquidity and why your business needs it to operate properly.

01:04 The definition of liquidity

01:25 Why liquid assets are easy to buy and sell

03:15 Why real estate non-liquidity was one of the main causes of the financial crisis

06:20 How flipping houses are just real estate speculation (and not liquid at all)

10:16 Why business owners especially need liquid assets

10:46 The negative results of illiquid assets in a business

11:50 The tendency to look at illiquid assets as "superior"

15:25 Why real estate may not be the best asset option (price drops)

16:43 People are always willing to take your money

18:12 How giving back and investing in others doesn't necessarily mean great ROI

20:13 Private equity and real estate investments aren't always in your best interest

21:45 X ways to become liquid

22:12 The difference between liquidity and speculation in your asset classes

23:02 How investing in public investments with a financial advisor can up your liquidity

As Dustin and Danielle explain in this week's episode, liquidity is kind of a big deal. One of the biggest reasons that the recession in 2008 hit so hard is the "illiquidity" (lack of liquidity) of real estate. The bubble burst and housing prices tanked; people didn't know the value of their house and they couldn't get a buyer. They either ended up being underwater (owing more than the house was worth) or they lost money on the sale of their house. If they didn't have enough liquid assets — like cash — their net worth was essentially wiped out.

Unfortunately, many people seem to have a short memory when it comes to the real estate and economic crisis of 2008.

More and more, people are choosing to invest in assets like real estate and other businesses to try and grow their wealth. But what many people may not realize is that these purchases are illiquid — they can't be bought or sold quickly, and the value of these investments can change from day to day.

As Dustin and Danielle explain, it's easy to see illiquid assets as more valuable than liquid assets because you can see them, touch them, use them, etc. It's hard to touch money or liquid assets because they're often in funds, ready to be bought or sold. However, it's hard to buy and sell illiquid assets, and it's also harder to know the value of them. Back to the crash of 2008; people often assumed their house was worth the same value as before, and they were taken by surprise when it came time to sell.

You don't want the same to happen with your personal or business finances, which is why it's important to focus on building liquid assets to counteract illiquid ones (after all, the majority of assets are illiquid, especially if you're a business). To do this, you'll need to know what really qualifies as a liquid asset.

When you have investable assets (money you want to invest) set aside, it can be tempting to consider real estate, tech, business, or other investment pitches that come your way. But real estate and private equity investments aren't liquid assets — they're speculative. Essentially, a speculative asset has a lot of risk involved in it, but it can also gain a lot of money. Think of fixing and flipping houses; that may seem like a liquid asset because you can sell the house as soon as you're done fixing it up. But the value of the house is not guaranteed — and you can't sell the asset as quickly as you'd think.

The same goes for other assets, such as private equity investments in startups or product inventions. Essentially, if there's a risk that you could lose all your money before you're able to cash out, it's a speculative investment rather than a liquid one. In the episode, Dustin and Danielle discuss why these different investments may not be the best option, especially if you're trying to up your liquid asset levels. They also talk about why investing in the stock market is one of the best ways to up your liquidity.

The stock market is composed of some of the most successful businesses in the world. Rather than investing in a single business with a high level of risk, or focusing on building a "fix-n-flip" real estate portfolio, why not look into the stock market? An investment portfolio will mix up a portfolio of stocks in a number of these businesses and will help you grow your liquid asset portfolios. A liquid portfolio can be easily sold in a matter of days to get you flush with cash, or you can keep letting these assets grow so that you have what you need to get kids through college, create your work-optional lifestyle, or weather a tragedy.

Investing in the stock market is less cost, less stress, and less overall risk than other investments or illiquid assets. It gives you peace of mind too, knowing that you'll have a liquid portfolio that can provide financial support in just a couple days. The best part? You can still start investing in these liquid portfolios without an advisor. There are a lot of great resources or you can even start an account online with any online investment firm.

If you are interested in working with a financial planner who can help you understand how much you need in liquid assets and which investments you should consider, contact Toujours Planning. You take the quiz to see if you'd be a good fit!

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• Net Worth Worksheet inside our Resource Vault
• Investopedia: Liquidity
• Investopedia: Speculation
• The Toujours Planning Quiz — are we a good fit for your financial planning needs?

**Summer Replay: Here is one of our favorite episodes we are re-releasing with a new introduction. Stay tuned for all new episodes coming later this summer**

Are you guilty of holding on to things just a little too long? We're not just talking about those jeans from high school — we're talking about the big stuff: Jobs, negative relationships, and even other people's expectations of you. Maybe even your expectations of yourself.

We all want to level up in some way, whether that means taking on a side hustle so you can build your empire, hiring on an assistant, or finally getting coaching for that big scary dream you've got. But we've all got baggage that just keeps weighing us down.

The good news is: you can let it go. And we are gonna help you figure out how in this episode of Worth It (we promise, there is no Frozen sing-a-long in this episode).

• 6:07 All the different ways people choose to level up in their lives.
• 7:04 That you're definitely not alone in feeling scared about letting go.
• 11:24 What happens when you let go of what's been holding you back.
• 13:20 How Danny Meyer, a real modern day trailblazer and the founder of Shake Shack, let go of his fears to build success.
• 17:22 What the goal of letting go really is (Hint: it ain't just success).
• 19:22 Tips you can take away to help you let go and level up.
• 23:30 How to find that voice in your head that tells you not to let go and shut him up.
• 25:42 The importance of outside perspectives in helping you let go.

This episode dives into what it means to let go of something, especially when it's hard or emotional. It also explores how to let go of something that's not necessarily bad, like that job you used to love or that client who helped you get it all started.

But most of all, this episode highlights how to let go and how to quiet the anxious, fearful voices in our heads that tell us to "Play it safe" and to not leave our comfort zone. After all, that's what letting go is — stepping out of your comfort zone and into something new.

In this episode of the Worth It Podcast, we give our tips for how to let go. While it may take time to make the leap, we think these tools will help you prepare for it. These tips include how to:

• Reduce your fear about change
• Increase your confidence in your trailblazing vision
• Figure out exactly what's most important to you now

To help you figure out how to let go, or to even support a decision you've been chewing on for a while, this episode comes with access to our Free Ikigai Worksheet and Free Vision Worksheet.

By using these worksheets, people who are ready to finally let go of whatever is holding them back can get to work. Don't know what's holding you back, but know you're not reaching your potential?

These worksheets can help you by diving into:

• What you would do if you had enough money
• What you regret if you had only 24 hours to live
• What you're good at
• All the ways you can make money
• What you think the world needs most from you

In the episode, there's also a great tip for those who have multiple revenue streams. This profit analysis tool will help you see which revenue stream or client is really worth the time and effort — and which ones may not be working for you anymore.

Using these two worksheets and the profit analysis tip shared in the episode, you'll be able to get a really good picture of what you need to let go of (what doesn't serve you anymore) and how to move into taking that next big step

But you don't have to do it alone.

When one of us steps forward and starts to blaze a new trail, we set an example for all of the others who are hesitating. People like Danny Meyer, the founder of Shake Shack, are great examples of what happens when you just let. it. go. We've also had to let go of things to move our lives (and business) forward. We share Danny's story, as well as some insights on what we're letting go of in 2019, in this episode.

• Free Ikigai Worksheet
• Free Vision Worksheet
• Danny Meyer

• Ask your questions!
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If you're a business owner or entrepreneur, you may already feel like the boss of your money. After all, you're pretty much solely responsible for what goes in and what comes out, right? But as many entrepreneurs and biz owners know, that can also lead to a lot of stress. In many cases, taxes aren't withheld, revenue can vary from month-to-month, and it always seems like there's a new bill to pay. So how do you feel like you're REALLY the boss of your money, rather than holding on to money for a while before it goes out the door again?

That's what we're talking about on this episode of Worth It. In it, we explain what business owners and entrepreneurs need to pay attention to in regards to their money and income, and what they can do to gain control.

00:51 What symphonies and maestros have in common with your money

01:05 Why taking control of your money will help you personally and professionally

02:05 A cautionary tale of what can happen when you don't tell your money what to do

03:02 The downfalls of 1099 income

05:18 Why planning for taxes is non-negotiable

06:21 Why changing the way you think about taxes is important

06:49 The importance of knowing your (and your employees') salary

07:39 Why you need a snapshot of your income and expenses (steady vs. variable)

10:43 3 ways to be the boss of your income

10:48 The importance of treating your money like a full-time employee

11:51 How to set up a "mothership account"

13:16 What you should include in your sub-accounts

14:38 How this "mothership" approach helps you embrace a profit-first model

15:00 How to start thinking of your income as "net" instead of "gross"

16:03 Why you should view expenses like healthcare, taxes, and salaries as part of doing business

How many times have you been trucking along, thinking you're doing pretty well with sales or client work, only to find out that you have a big fat bill to pay at the end of the month? Or maybe you're like Danielle's friend who didn't realize she had to pay taxes out of her 1099 income… and had a hefty check to pay at the end of the year.

That's why the first step to being the boss of your money is to figure out taxes, hourly contractor rates, healthcare — all the things that come out of your business income. This way, you can make sure that what you're making, what you're taking home, and what you owe (to the government, your healthcare plan, your workers, etc.) are all accounted for.

Other things you need to pay attention to as a business owner:

• How much are you withholding for taxes?
• How much are you paying yourself? (Remember: you need a salary)
• Is your income consistent or does it vary?
• What are your total expenses for your business? (office, employment, etc.)
• What expenses are steady and which are variable?

Once you have those numbers and you are for sure paying yourself a salary (nope, this is non-negotiable), you can finally have a better picture of what's going in and coming out. You'll also know exactly what to set aside each month to pay at least the non-variable expenses, like your salary, your office rent, your software costs, etc. That brings us to the second part of our podcast discussion….

Having an accurate picture of your numbers is a great start. But what do you do to make paying those bills and saving that money easier? Here are some actionable tips that can help:

• Figure out what you need to pay yourself. Your salary as a business owner or entrepreneur can eliminate a lot of stress about variable income. Even if it's not what you want to be making right now, or you've never calculated a salary before, don't skip this step. Talk to your accountant or CFP if you're not sure what to do.
• Treat your income like a full-time employee. Tell your money what to do, and set up systems so it automatically does it. As your income comes in, have automations set up so that money immediately goes to work. This way, it all gets done without you having to do anything. How do you do that? Create a "mothership" account where you have all your revenue come in, and then you'll have "sub-accounts" that hold your salary, your employees/contractors pay, your taxes, etc. Whatever you know you need to set aside money for each month, quarter, or year, set them up and automate the withdrawals so that it's totally off your plate. See how easy that was? This follows the Profit First model, which focuses on paying yourself (and your bills first) and then uses whatever's left to float your business, invest in it, etc.

• Change yo' mindset. Instead of thinking about all the money you bring in (the gross revenue of your business) as money made, you need to start thinking about income as net income. That means you're only looking at what you've got after expenses are paid, taxes have been contributed, and so on. It hurts a lot less to watch the money go out, and you'll have a much better idea of what kind of profit you're making, which can help you raise prices, streamline processes, or decide to hire help.

This was a quick and dirty episode, but we think the tips are super valuable. If you're struggling to feel like you have "money in the bag," this is definitely an episode for you. And even if you're a traditional employee, you should check out this episode so you can get a feel for what you can do with the money that's leftover on your paycheck.

Our hope is that you can implement these tips into your life and business today, so you can stop feeling so out of control — even if your income and expenses vary. It doesn't have to feel so chaotic, y'all!

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

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On today's episode of Worth It, we're talking to Marc Champagne, the co-founder of Kyō App, (pronounced KEY-OH). His app, which blends journaling, mindfulness, and what Marc calls "mental fitness," offers a place for smartphone users to write down their thoughts, access journaling prompts and mindfulness resources, and build a routine of self-awareness and self-care.

The discussion ranges from Marc's background in Big Pharma, the importance of a daily routine, to handling money stress. We had a lot of fun talking to Marc and really appreciate his insights. Check this episode out if you want to take back your smartphone use, build a daily practice that makes you feel good, and understand your thoughts and emotions better.

04:24 Why daily practices aren't just for "zen" people

06:42 How a simple prompt on the Kyo App can help you set an intention for the day

11:42 The definition of mental fitness

14:55 Finding ways to fit a daily routine into your life for better mental health

17:30 How to reframe your relationship with your phone and technology

26:23 What Marc has learned from Kyo App users

29:27 Different themes in money mindset and how this affects mindfulness

33:00 How to prioritize happiness while knowing your (financial) limits

34:00 Why it's important to get clear on what's stressing you out

35:00 How to find out the next step forward

38:46 Why a financial plan can lift that mental weight that drags you down

41:41 Why making a list of 10 things that make you feel good can turn your day around

44:09 What Marc would leave behind (and keep) in revivement

45:12 What's on the horizon for Marc and the Kyo app

One of the most interesting parts of our talk with Marc (for us) was hearing about his background and path to entrepreneurship. He didn't go to school for app development, or even business. He graduated and was hired in sales for a pharmaceutical company and, before he left to build Kyō, he was a product brand manager. But it was his morning routine that really led him to creating the Kyō app with his brother-in-law; he would spend each morning in his sales training trying to create a positive environment that helped him "stand out from the crowd," which led to him journaling. With journaling, he was able to increase self-awareness and better understand himself, which helped him immensely in his career.

Today, after 3 years of developing the Kyō app and embarking on an entrepreneurial journey, Marc's goal is to give people a space for daily reflection that helps them break the negative cycles of attachment we often attach to our phones. The Kyō app itself has gone through updates and changes to help people cultivate self-awareness they need to succeed in their own lives. The app gives daily prompts, offers resources, and continually updates the user experience to improve mental fitness.

Most all, Marc hopes the app helps people use their smartphones in ways that build mental fitness, rather than impact it negatively.

Any good discussion about smartphone use would be incomplete without talking about notifications and apps. Marc recommends turning off number badges and screen notifications for social media, at the very least. But if you can swing it (or work up to it), it may serve you to turn off notifications for all non-essential apps. This can help you increase your focus at work and in personal life, but it can also improve happiness and mental health.

You can also rearrange your apps so that only the first screen have the apps you need to use, not the ones that will distract you. Marc also talks a lot about using our phones for mental fitness — using apps and activities that actually benefit our brains and mental health positively. The Kyō app, in particular, helps users create a daily journaling routine that also helps them gain insight into their thoughts and emotions. Instead of constantly distracting ourselves from what's going on inside, apps like Kyō actually make it possible to be happier. Studies show that the overuse of technology is affecting mental health, and Marc believes that we're in happiness recession. That's why believes (and so do we) that it's so important to arm ourselves with tools that make us happier and better people.

During our chat with Marc, we also touched on how there seems to be a separation between the "penny pincher" and "treat yo' self" advocates, and how either approach to money isn't always the healthiest. As with anything, Marc says that it's important to know your values and to engage in positive experiences. From getting a cup of $2 tea at the Four Seasons hotel to exploring the city you're in, there are ways to "treat yo' self" without going overboard, and that can actually be more fulfilling. Again, it goes back to social media and how much we feel pressure to do what others are doing. But at the end of the day, whether you save or spend, you should be doing it for yourself — and you should be aware of why you're doing it.

This led into the topic of financial stress, which can take up a lot of brain space for many of us. To alleviate some of this money stress, Marc explains the importance of being present: simply asking yourself, "Am I OK right now?" In most cases, the answer is "Yes." We get so caught up worrying about having enough for next month, or what we'd do if another recession hit, but we have everything covered for now.

Marc says that grounding yourself in gratitude — from taking in the fact that the lights are on and you have food in the fridge — can help with a lot of that momentary feeling of scarcity. From there, he says it's important to think one step at a time. Ask yourself: "What's one step forward to better this situation?" Eventually, if you put in the work and you're patient enough, things will get better. And just practicing mindfulness like this will help you weather the really big obstacles that are totally out of your control.

Another feature of our conversations with Marc was what he sees as "cornerstones" of successful living; the things that people (users and guests on his podcast) do to stay on track, build their mental fitness, and feel good. Among users, the simple act of daily reflection is important; they make time to do the prompts on the Kyō app and to filter their thoughts onto digital paper. This helps them notice trends in their emotions and gives them a tool to really explore their thoughts.

Guests on Marc's podcasts, Kyō Conversations, have non-negotiables: the things that don't slip even when they're traveling, sick, or out of their regular routine. For some, this can mean going to the gym or doing yoga everyday, a 20-minute meditation every morning, or taking quiet time anywhere they can.

But how do you know what your non-negotiables are? It helps to create a list (maybe in the Kyō app!) of what you do for yourself everyday. If you don't already have a routine like this, you could start with a list of 10 things that make you feel better no matter what, like deep breathing, a quick jog, a snuggle with your cats, or a dance session. Then, do one of those things everyday and write down how it made you feel. This simple commitment to "one non-negotiable" can help you feel in control every day, and even turn that frown upside down.

Last but not least, we talked to Marc about what's next for Kyō. His response was one that many entrepreneurs can relate to: working on the tech to make it more helpful for people and expanding the ecosystem. Kyō wants to go beyond the app and really give people the information and tools they need to be happy — this could include print material, events, etc. and of course includes the podcast. Marc and his team are also working to release it in Google Play Store (it's currently only available in the Apple App Store).

The Kyō Conversations podcast releases every Thursday with new guests, but new daily prompts are coming, too. Pretty exciting stuff, so make sure to check it out — and download the Kyō app if you want to focus on a daily routine that helps you be more mindful and more mentally fit. You can also get some great doses of inspiration by following @kyoapp on social media.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• Kyō App (iOS)
• Kyō Conversations podcast
• @kyoapp on Instagram, Facebook, and Twitter

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If there's one thing we know about today's business owners and entrepreneurs, it's that they're breaking the mold. They're not doing business like previous generations, and they're using their money, products, and services to make the world a better place. That translates into more than just how they make their money; it bleeds into how they invest, as well. More and more Millennials, Gen Z'ers, and even Baby Boomers are choosing to invest in socially responsible businesses and to be "selective" with the mutual funds and stocks they choose to put their money into.

We also see this in our own financial planning practice, where more and more of our clients want to know how they can invest in businesses that aren't "evil" or trashing the planet. In today's episode of Worth It, we're talking all about ESG investing: what it means, what it entails, and how you can grow your wealth with it.

1:19 Why Millennials are the generation leading the charge on responsible business

2:23 What ESG stands for

2:50 How Erin Brockovich can teach us about ESG investing

4:51 The focus that previous generations of businesses put on profit over health and safety

5:46 How Enron and businesses like it have scared people away from investing

6:06 The environmental criteria of ESG funds

6:14 What "social criteria" means for ESGs

6:24 The governance criteria for ESGs

8:17 The steps you can take to start investing in ESGs

8:38 How negative vs. positive screening works

9:04 How shareholders can affect change from the inside out

9:19 The definition of impact investing

'ESG' stands for environmental, social, and governance. ESG investing means that you're buying funds or individual stocks that are offered by companies that follow strict ESG standards. For example, the environmental criteria for ESG funds dictate how a company must operate as a steward of nature. They can't pollute water sources or dump tons of trash into the ocean. The social criteria mandates how a company manages relationships with employees, suppliers, the communities in which it operates, etc. There will be no child labor, lack of benefits, or discrimination in companies that qualify for ESG standards. And finally, governance covers how a company's leadership operates. This includes their executive pay, how internal audits work, clear shareholder rights, and more. When companies abide by ESG, there is less risk of fraud, corruption, and generally shady activity.

Because these businesses have higher ethical and sustainability standards, a lot of investors find them appealing. It feels good knowing that you're not backing a corrupt corporation that is ruining the planet or doing whatever it takes to turn a profit. So how do you get into ESG investing?

The best first step to take when you want to start responsibly investing is to talk to a CERTIFIED FINANCIAL PLANNER ™. Planners can help you choose a mutual fund or exchange-traded fund that includes ESG businesses. They can also handpick out ones that don't help you meet your financial goals. Pretty helpful, eh?

But there are also other options for socially conscious investing that don't take a "traditional" ESG route:

• You can purchase "regular" stocks or funds, with the intention of influencing change. When you invest, you still want to watch your wealth grow. Investing in more established businesses and "traditional" funds is a great way to do that, but many people (like you) don't want to invest in companies that aren't socially or environmentally aware. But here's the cool thing: businesses are driven by their shareholders. When enough shareholders want to see change, businesses listen. There have been major shareholder-led changes to many companies, including forcing out an old board of directors, driving policy changes, and more — all because shareholders made their wishes clear.

• You can focus on impact investing. Some companies offer special stocks or funds that allow them to address a certain social or environmental need. These funds are "released" for shareholders to invest in so that a specific project can get necessary capital. The investor can expect a return on investment, but they also fund a project that aligns with their values. For example, Apple has released funds to help them support women-led solar panel projects for their new facilities, allowing shareholders to support these efforts while also investing in a fund that will offer returns.

Those all sound pretty great, right? So what's stopping you — and other people — from investing more in ESGs? Mostly because there's still some confusion on how much ROI you make on these investments.

As we discuss in the episode, ESG investing is just starting to get its (much deserved) time in the spotlight. Even 15% of Baby Boomers are interested in ESG, but females, Millennial, and Gen Z'ers lead the charge on ESG demand. Unfortunately, the statistics show that only 29% of advisors are using ESG in their portfolios. So why's there such a discrepancy between the apparent supply and demand?

At the end of the day, people still want to make money and ESG is a fairly new ball game. People may have concerns that an ESG fund or a socially minded business aren't going to have the same profit and shareholder dividends. They may also have concerns that there is a glass ceiling of sorts, making it so ESG businesses won't see the rapid growth or long-term status that more traditional businesses do. As a result, they may "dabble" in ESGs, but they still hold the majority of their investments in "traditional" funds.

But the numbers don't lie. A lot of studies show that not only do ESG companies perform well, but that in some cases they do better. Because they have sound policies that lower cost capital and offer stronger transparency, there is more room for growth and lower odds of risk. That means steadier growth without "crises" like Enron, BP, and other companies have caused.

Lastly, most of these funds are tracked on the MSCI KLD-400 Social Index (an index is a metric that tracks the performance of a group of stocks), which has slightly outperformed the S&P 500 over the last 10 years — and with slightly less volatility. This is great news for socially minded investors who have a moderate to conservative approach to investment risk, but who still want to make money by investing in decent companies.

Are you ready to start investing in ESGs yet? If so, talk to your advisor. If you don't have an advisor yet, find one. Also note that some don't offer ESG funds, but they will when you ask. CERTIFIED FINANCIAL PLANNER™ professionals have a way of "figuring things out," and they'll do what they can to find the funds that align with your financial and personal values. Your request will also help them offer a new service to all their clients, so it's kinda like you're helping them out.

Advisors can help you find mutual and ETF funds that include ESG-compliant businesses, but they can also recommend certain funds by leveraging what we in the biz call negative and positive screening.

Negative and positive screening is, essentially, handpicking stocks or funds that align with your financial goals, but that also abide by ESG regulations. A CERTIFIED FINANCIAL PLANNER™ with the right experience can also take out the funds that aren't reflective of your financial goals or social or environmental principles. Because most ESGs come in a mutual fund or ETF, you'll want an expert on your side who can actually pull out the right stocks or funds.

The main facts we want you to take away from this episode are that 1.) ESGs exist and are a great investment option, and 2.) The more you invest in ESGs, the more other businesses will take notice. It's all about the supply and demand; the more we as investors ask for ESGs, the more advisors (and businesses) will take notice. You can effect change with your dollars, not just by investing in a few ESGs, but simply by making the choice to invest in companies that hold themselves to higher standards. Other companies will fall in line, which in turn makes the world a better place. Pretty cool, right?

—

Have questions about ESGs? Let us know. We're excited about these funds and we want to help you influence change in the world. And if you're ready to start investing in ESGs with the help of a CERTIFIED PLANNER PROFESSIONAL™ (or two), check out the quiz below to see if we're a good fit.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• MSCI KLD-400 Social Index
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When you think about legacy, do you think about inheritances or a last will and testament? Of course, those are all parts of planning a legacy, but we know that what you leave behind goes far beyond money and paperwork. Instead, we want to talk about the real legacy — the stuff that made you so special to the people you'll leave behind.

For some, this may seem like a morbid topic or one that's slightly depressing. But we think this episode of Worth It is important for two reasons:

1. You should be planning your legacy. It can't wait.
2. You should be talking about death, because it makes life that much sweeter.

But enough of that. Let's dig into what we talked about on this week's episode.

00:48 Why thinking about a legacy isn't just for old people

01:24 Why talking about death isn't morbid

04:49 How Game of Thrones is connected to your legacy

07:42 The ways what you leave behind affects others

09:00 What kind of legacy do you want to leave?

12:27 Why you should think about how you want to be memorialized

16:00 The most important aspects of your legacy

16:26 What to write in your personal mementos journal

17:36 Why stories are so important

21:20 How to include letters in your legacy

In the financial planning world, a "legacy" is mostly about who gets your money after you die. This could be your kids, your grandkids, the owner of your favorite deli, or the nurse who helped take care of you in the hospital. The options are endless. Legacy planning also includes logistics about estate sales, executors of your estate (who's in charge after you're gone), and business succession plans. These are all very important in the scheme of things, and they should be taken into account with any sort of financial planning you do.

But that's not all there is to legacy planning. Instead, we believe that things like your story, your hopes and dreams, your life lessons, and your keepsakes are also important to pass on. That's why part of our Dream. Plan. Live process is to take our clients through legacy planning — with a twist.

Our Dream. Plan. Live process has a 6-part section for figuring out your legacy. This section includes thought exercises where you think about:

• Family. This could include things like guardianship for minor children, who you're leaving assets (like houses, cars, etc.) to, and what your wishes are for pets, plants, that sort of thing.
• Wealth. Yes, this includes the money you've accumulated and the divvying up of your overall net worth. That money has to go somewhere after you're gone, so make sure you have a plan. In this part, we also talk about a business succession plan. Who do you want to take over your business? How do you want your customers or clients to be handled?
• Funeral. We ask clients to write down their wishes for their funeral, even though they always look at us like we're crazy. But ask yourself: Do you want to be buried or cremated? Do you want a specific cemetery? Do you want a memorial or a funeral home ceremony? Also think about what you want your obituary to say and what picture you want to be shared — these are small details, but they can be hard for your heirs and family to deal with when they're grieving. Plus, they'd probably pick that terrible picture of you before you lost all that weight.
• Charity. We talked about this in Episode 74 of the podcast, but ask yourself: Do you want to donate your car to charity, your possessions to your local homeless shelter, or maybe even thousands of dollars to your favorite cause? With the right planning, you can also set up donor-advised funds or even private foundations in your name… so you keep doing good long after you're gone.
• Online. Think about the digital space you occupy; where is that going when you die? For example, Dustin has a lot of books and audiobooks in his digital library, plus digital journals and lists he creates on Workflowy. He has a plan for passing these on to his children, do you? You can also think about who will control your social media accounts, websites or domains, and even your passwords (because passwords suck even more when the person who knows them is dead).
• Personal mementos. We think this is arguably the. most. important. part of your legacy. For this part of their legacy planning, we ask people to get a journal and write out things like:

1. Favorite foods, colors, songs, etc.
2. The best travel destinations
3. What you learned about life
4. Stories to be remembered
5. Recipes
6. Letters to your loved ones

This can be an emotional activity, but it's also empowering because you know that what's most important to you will always be remembered. Plus, you'll leave something more substantial than a few bucks. Because, as Danielle says, people always remember the stories most.

We really enjoyed this discussion, and we hope you did, too. But mostly we hope you really start thinking about your legacy and creating those personal mementos we talked about. Because you can't control when or how you die, but you can control how well you've planned for it.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

Resources & People Mentioned

• The Toujours Planning Quiz — are we a good fit for your financial planning needs?
• 100 Day Project
• Episode 74: 3 Ways Entrepreneurs Can Give Back & Make a Difference
• Workflowy

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