Digest

Chelsea Fagan, founder of The Financial Diet, joins the Journey podcast to discuss the challenges of navigating today's economy, particularly for young adults who grew up during the recession. She highlights the emotional toll of comparing lifestyles on social media and the pressure to achieve a certain level of success. Fagan emphasizes the importance of diversifying your identity, both for mental health and to relieve pressure on any one aspect of your work. She shares her own journey of decoupling her identity from her company and encourages entrepreneurs to prioritize enjoyment and passion in their work. The conversation also delves into the evolution of The Financial Diet's business model, highlighting the shift towards membership-based revenue and the challenges of adapting to changing trends in the media industry. Fagan emphasizes the importance of owning your audience and providing value to them, particularly in a world where algorithms and platforms are constantly changing. She shares insights into The Financial Diet's tech stack and the importance of thinking in terms of recurring revenue for long-term stability. The episode concludes with Fagan's advice to entrepreneurs: prioritize enjoyment and passion in your work, and remember that the title of entrepreneur means nothing if you're not doing something you love.

Outlines

00:00:00

Introduction

This Chapter introduces Chelsea Fagan, founder of The Financial Diet, and the topic of the episode: navigating today's economy, diversifying your identity, and the evolution of business models in the media industry.

00:01:17

Chelsea Fagan's Journey

This Chapter delves into Chelsea Fagan's personal journey with money, her decision to start The Financial Diet, and the challenges she faced in overcoming debt. It explores the emotional impact of comparing lifestyles on social media and the pressure to achieve a certain level of success.

00:11:58

Entrepreneurship and Identity

This Chapter discusses the challenges of entrepreneurship, particularly the pressure to constantly grow and the potential for burnout. It explores the importance of separating your identity from your work and the need to prioritize enjoyment and passion in your work.

00:17:07

Decoupling Identity from Work

This Chapter focuses on the importance of diversifying your identity, both for mental health and to relieve pressure on any one aspect of your work. It explores the benefits of having hobbies and interests outside of your work and the importance of giving yourself permission to be a beginner.

00:29:59

Retirement and Future Plans

This Chapter discusses the concept of retirement and future plans for entrepreneurs. It explores the desire to move away from the online grind and pursue more experiential work, such as retreats and hospitality.

00:35:12

The Evolution of The Financial Diet's Business Model

This Chapter delves into the evolution of The Financial Diet's business model, highlighting the shift towards membership-based revenue and the challenges of adapting to changing trends in the media industry. It emphasizes the importance of owning your audience and providing value to them, particularly in a world where algorithms and platforms are constantly changing.

00:46:04

The Importance of Recurring Revenue

This Chapter discusses the importance of recurring revenue for long-term stability in the media industry. It explores the challenges of relying on ad revenue and the benefits of having a membership-based business model.

00:47:00

Final Tips for Entrepreneurs

This Chapter concludes the episode with Chelsea Fagan's final advice to entrepreneurs: prioritize enjoyment and passion in your work, and remember that the title of entrepreneur means nothing if you're not doing something you love.

Keywords

Q&A

• What are some of the challenges of navigating today's economy, particularly for young adults who grew up during the recession?

  Chelsea Fagan highlights the emotional toll of comparing lifestyles on social media and the pressure to achieve a certain level of success. She also discusses the difficulty of finding a livable wage in major cities and the feeling that it's harder than ever to move out of your current financial situation.

• What is the importance of diversifying your identity, both for mental health and to relieve pressure on any one aspect of your work?

  Fagan emphasizes that diversifying your identity can help reduce stress, improve mental health, and enhance creativity. She encourages entrepreneurs to cultivate hobbies, interests, and relationships that contribute to a more well-rounded and fulfilling existence.

• How has The Financial Diet's business model evolved, and what are the challenges of adapting to changing trends in the media industry?

  Fagan discusses the shift towards membership-based revenue and the challenges of relying on ad revenue in a world where algorithms and platforms are constantly changing. She emphasizes the importance of owning your audience and providing value to them, particularly in a world where algorithms and platforms are constantly changing.

• What are some tips for entrepreneurs who are thinking about redefining their own relationship and identity with their company and with themselves?

  Fagan advises entrepreneurs to prioritize enjoyment and passion in their work, and to remember that the title of entrepreneur means nothing if you're not doing something you love. She also encourages them to set boundaries, cultivate a healthy work-life balance, and give themselves permission to be beginners.

• What are the benefits of a membership-based business model, and how can entrepreneurs make the transition?

  Fagan highlights the benefits of recurring revenue, which provides greater stability and predictability than relying on one-time sales or ad revenue. She also discusses the importance of providing value to members and building a strong community around shared interests.

• How can entrepreneurs navigate the pressure to constantly grow and avoid burnout?

  Fagan emphasizes the importance of separating your identity from your work and prioritizing enjoyment and passion. She also encourages entrepreneurs to set boundaries, cultivate a healthy work-life balance, and give themselves permission to be beginners.

• What are some strategies for owning your audience and building a direct relationship with your customers?

  Fagan suggests building email lists, memberships, or other strategies that allow you to communicate directly with your audience. This provides greater control and flexibility in a world where algorithms and platforms are constantly changing.

• What are some of the challenges of relying on ad revenue in the media industry?

  Fagan discusses the volatility of ad revenue, the decreasing time spent on websites, and the need to adapt to changing consumer behaviors. She emphasizes the importance of diversifying revenue streams and embracing new formats.

• How can entrepreneurs overcome the sunk cost fallacy and make rational decisions about their business and their life?

  Fagan encourages entrepreneurs to be able to recognize and overcome the sunk cost fallacy, which is the tendency to continue investing in something, even if it's not working out, because you've already invested time, money, or effort.

• What are some examples of how entrepreneurs can diversify their identity and pursue interests outside of their work?

  Fagan shares her own experience of diversifying her identity through writing a romance novel and pursuing other creative projects. She encourages entrepreneurs to explore hobbies, interests, and relationships that contribute to a more well-rounded and fulfilling existence.

Show Notes