494 | Money is Your Best Form of Protest | Tori Dunlap
Digest
Tori Dunlap, a financial expert and author of "Financial Feminist," returns to ChooseFI to discuss financial equality, the importance of investing, and why renting can be a smarter financial decision than buying. She emphasizes the importance of financial equality for women and other marginalized groups, arguing that money is a powerful tool for protest and control. She also shares her own journey to financial independence, highlighting the role of entrepreneurship and the importance of investing in oneself. Tori then addresses common mistakes new investors make, including confusing the Roth IRA and 401k with investments, equating investing with gambling, and relying on financial advisors who may not act in their best interests. She encourages listeners to take control of their finances, invest in themselves, and make decisions based on their own wants and needs. Finally, Tori discusses the benefits of renting over buying, particularly in a market where home prices are high and interest rates are rising. She argues that renting can be a more flexible and financially sound decision for many people, especially those who are early in their careers or who travel frequently.
Outlines
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Welcome Back, Tori Dunlap!
This Chapter welcomes back Tori Dunlap, a financial expert and author of "Financial Feminist," to the ChooseFI podcast. The hosts discuss the impact of Tori's previous episode on salary negotiation and her growing success since then. They also highlight the importance of financial equality for women and other marginalized groups.
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Financial Advice for Men and Women
This Chapter delves into the differences in financial advice given to men and women. Tori argues that societal scripts and expectations often lead to women being told to shrink their spending and prioritize altruism over their own financial goals. She contrasts this with the advice given to men, which often emphasizes expansion, investment, and taking risks. Tori also discusses the problematic nature of the "frivolous spending" narrative, highlighting how it disproportionately targets women and their purchases.
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Common Mistakes New Investors Make
This Chapter focuses on common mistakes new investors make. Tori emphasizes that the Roth IRA and 401k are accounts that hold investments, not investments themselves. She also addresses the misconception that investing is gambling, highlighting the importance of long-term, diversified investing. Finally, she warns against relying on financial advisors who may not act in their clients' best interests, citing statistics that show many professionals underperform the market.
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Renting vs. Buying: A Deeper Dive
This Chapter explores the debate of renting versus buying a home. Tori shares her own experience with renting and explains why she believes it can be a smarter financial decision than buying, especially in a market with high home prices and interest rates. She emphasizes the importance of considering factors beyond just the financial aspects, such as flexibility, lifestyle, and personal preferences.
Keywords
Financial Feminist
Financial Feminist is a book and podcast hosted by Tori Dunlap, a financial expert and advocate for women's financial empowerment. The book and podcast provide practical advice and resources for women to achieve financial independence and break down societal barriers that hinder their financial success. It covers topics such as budgeting, investing, negotiating salaries, and building wealth.
Financial Equality
Financial equality refers to the equal access to financial resources, opportunities, and outcomes for all individuals, regardless of gender, race, ethnicity, sexual orientation, or other factors. It encompasses concepts such as equal pay for equal work, access to affordable credit, and equitable financial education. Financial equality is crucial for achieving social justice and economic empowerment.
Financial Independence
Financial independence is the state of having enough financial resources to live comfortably without relying on employment or other external sources of income. It allows individuals to pursue their passions, make choices based on their values, and achieve greater freedom and control over their lives. Financial independence is often achieved through saving, investing, and generating passive income.
Investing
Investing is the act of committing money or other assets to the expectation of generating a return or profit. It involves allocating resources to various financial instruments, such as stocks, bonds, real estate, or businesses, with the goal of increasing wealth over time. Investing can be a long-term strategy for building wealth and achieving financial goals.
Renting
Renting is a housing arrangement where an individual or family pays a periodic fee to occupy a property owned by another person or entity. It provides flexibility and avoids the responsibilities of homeownership, such as maintenance, property taxes, and mortgage payments. Renting can be a financially sound decision, especially in markets with high home prices and interest rates.
Patriarchy
Patriarchy is a social system where men hold primary power and predominate in roles of political leadership, moral authority, social privilege, and control of property. It is characterized by a hierarchical structure that favors men and disadvantages women. Patriarchy can manifest in various forms, including gender inequality, sexism, and discrimination against women.
Financial Advisor
A financial advisor is a professional who provides financial guidance and advice to individuals and families. They help clients develop financial plans, manage investments, and make informed decisions about their money. Financial advisors can specialize in various areas, such as retirement planning, estate planning, and tax planning. It is important to choose a financial advisor who is a fiduciary, meaning they are legally obligated to act in your best interests.
Index Fund
An index fund is a type of mutual fund or exchange-traded fund (ETF) that tracks a specific market index, such as the S&P 500. It aims to replicate the performance of the index by investing in all of the securities included in it. Index funds are known for their low costs, diversification, and passive management, making them a popular choice for long-term investors.
VTI
VTI is the ticker symbol for the Vanguard Total Stock Market ETF, a widely popular index fund that tracks the performance of the entire US stock market. It provides broad diversification across all sectors and market capitalizations, making it a core holding for many investors. VTI is known for its low expense ratio, making it a cost-effective way to invest in the US stock market.
VTSAX
VTSAX is the ticker symbol for the Vanguard Total Stock Market Index Fund Admiral Shares, a mutual fund that tracks the performance of the entire US stock market. It is similar to VTI but is available only to investors with a minimum investment amount. VTSAX is also known for its low expense ratio, making it a cost-effective way to invest in the US stock market.
Q&A
What are some key takeaways from Tori Dunlap's discussion on financial equality?
Tori emphasizes that financial equality is crucial for women and other marginalized groups, arguing that money is a powerful tool for protest and control. She highlights the societal scripts that often discourage women from pursuing wealth and the importance of challenging these narratives. She also stresses the need for equitable access to resources and opportunities for all individuals.
What are some common mistakes new investors make, according to Tori Dunlap?
Tori identifies three common mistakes: confusing the Roth IRA and 401k with investments, equating investing with gambling, and relying on financial advisors who may not act in their best interests. She encourages listeners to take control of their finances, invest in themselves, and make informed decisions about their money.
Why does Tori Dunlap believe renting can be a smarter financial decision than buying?
Tori argues that renting can be more flexible and financially sound, especially in markets with high home prices and interest rates. She highlights the costs associated with homeownership, such as maintenance, property taxes, and mortgage payments, and emphasizes the importance of considering lifestyle and personal preferences when making a housing decision.
How does Tori Dunlap suggest approaching financial decisions once you achieve financial independence?
Tori emphasizes that financial independence allows you to make decisions based on your wants and needs, rather than solely on financial considerations. She encourages listeners to prioritize their happiness, pursue their passions, and invest in their own growth and well-being.
Show Notes
In this episode: financial freedom, starting your own business, you can't sprint forever, buying vs renting, and investing.
This week we are rejoined by host of Financial Feminist podcast and creator of Her First 100K, Tori Dunlap, to fill us in on her journey with FI over the last few years, discuss what financial equity and the importance of building financial foundation and literacy among marginalized groups, as well as discuss how financial advice can differ for men and women. While money can be linked with stability and ease in one's life, the real power that comes from personal finance and independence is the freedom it allows you to not only change your life, but instill change in the communities around you. Although there can be times you feel guilt or shame when discussing financial literacy, there are endless resources at your disposal to educate and have you feeling confident.
Tori Dunlap:
- Website: herfirst100k.com
- Book: “Financial Feminist: Overcome the Patriarchy’s Bullsh*t to Master Your Money and Build a Life You Love”
- Podcast: Financial Feminist
- Instagram: @herfirst100k
- Where to Start: Her First 100k Quiz
Resources Mentioned In Today’s Episode:
- Negotiate Your Salary With Tori Dunlap | ChooseFI Ep 147
- Marriage Kids and Money
- The Impact of Fees on Your Investment
- “The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life” by JL Collins
- RENTING VS. BUYING: WHAT’S RIGHT FOR ME?
- Subscribe to The FI Weekly!
More Helpful Links and FI Resources:
- Top 10 Recommended Travel Rewards Credit Cards
- Empower: Free Dashboard to Track Your Finances
- CIT Bank Platinum Savings Account
- M1 Finance: Commission-Free Investing, 1-click rebalancing
- CashFreely: Maximize Your Cash Back Rewards
- Travel Freely: Track all your rewards cards and points
- Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
- Student Loan Planner: Custom Consult (with $100 Discount)
- Get a cheaper phone plan with Mint Mobile