Investing in that daily coffee, suggests finance specialist Nicole Lapin. Surprised? That’s just one piece of her unconventional advice.
“This isn’t your typical finance tutorial,” Lapin expresses while introducing her book, Rich Bitch: A Simple 12-Step Plan for Getting Your Financial Life Together… Finally. Throughout its pages, she shares personal stories and insights, including her experience of effortlessly wiping out a $5,000 credit card debt.
Lapin aims to demystify finance. She steers clear of unapproachable traditional jargon and encourages women to seize control of their financial circumstances. According to Lapin, the term Bitch in her book title shouldn’t carry a negative connotation and actually signifies a woman who advocates for herself, while Rich signifies a meaningful life. A former anchor for CNBC and CNN, and dubbed a “money guru for millennials,” Lapin, currently 31, was active during the onset of the Great Recession.
“There’s a new reality. The American Dream isn’t the same anymore. This is about your vision and your fate. It’s about taking charge,” says Lapin. “You don’t require a partner, a prestigious education, or to have been born into wealth.” However, you will need a strategy—and here are six insights from her 12-step guide:
1. Feel free to buy coffee from a barista.
Disregard the common advice that makes you feel embarrassed or foolish for not brewing your own coffee at home. While there are online “coffee savings calculators” that illustrate potential savings from skipping the daily $3.50 habit in favor of homemade coffee at 25 cents a cup (a whopping $1,138, according to DollarTimes.com), Lapin derides latte shaming as an absurd tactic that harms your mood and could lead to overindulgence later. Her perspective: Treat yourself like someone who has billable hours, akin to a lawyer, because your time is precious. If you waste several minutes dealing with the coffee maker each morning, purchasing your coffee may actually be more economical. “The notion that you must deprive yourself to achieve financial freedom or nirvana is ridiculous. I want individuals to reconsider traditional financial advice,” Lapin asserts. “Begin empowering yourself and investing in yourself because that yields the greatest returns.” Moreover, she believes those lattes could boost your motivation at work, pushing you to secure a raise that surpasses the $1,100 you might save by skipping them.
2. Request a raise and make it happen.
Discover the salary range for your role in your industry by visiting resources like Salary.com and Payscale.com to formulate a raise proposal on the higher side, Lapin recommends in her book. Be ready with tangible examples showcasing your standout performance, including your contributions to the company. Timing is key; she advises requesting a raise following a stellar performance review or positive client feedback.
3. Document your aspirations and create an elevator pitch.
To achieve the life you desire, first identify what that life looks like. Condense your aspirations into a brief statement that sticks in your mind. Research indicates that women who can effectively articulate their personal narrative—and mentally embrace it—enhance their chances of fulfilling their objectives, states Lapin. Make three lists: one for personal life, one for financial goals, and one for leisure activities. Specify targets for the current year, the near future (years three and five), and further down the line (years seven and ten). For instance, Lapin’s current enjoyment list includes weekly meetups for drinks with friends. In five years, she hopes to invest in new furniture and relocate to a larger apartment. By the tenth year, she envisions taking a luxurious vacation. It’s about crafting your own narrative and vocalizing your aspirations, which significantly aids in maintaining focus on them. “Becoming a Rich Bitch is not about sacrificing enjoyment. It’s not about clipping coupons or penny-pinching,” Lapin shares with SUCCESS. You can relish small pleasures while pursuing your financial objectives, but the initial step is establishing clear goals. “Many people believe they have goals, yet they may be shocked when they actually sit down to write them out.”
4. Negotiate your expenses and purchases, and create extra income through your social network.
Lapin enjoys negotiating and once acquired a floor model sofa at a 70 percent discount. Retailers typically reduce prices by 10 to 15 percent due to minor imperfections like fabric snags, she explains. Lapin consistently negotiates with service providers like cable and phone companies. “When you realize that everything is open to negotiation and it’s ultimately your finances, it not only becomes empowering but is also quite entertaining to see how much you can save.”
5. Presenting the new LBD.
Instead of a little black dress, think of it as a “little budget diary.” Yes, treat yourself to little luxuries that bring happiness, but don’t forget to keep track of them. Monitor small daily expenses to understand where your money is actually going.
6. Eliminate a $5,000 credit card debt.
Shocked by her $5,000 debt, Lapin acknowledged the issue by placing a sticky note marked “$5,000” at the top of her computer monitor. She committed to a two-year plan to pay it down at $208 monthly (approximately $7 per day). She established a monthly automatic withdrawal of $208 from her bank account. “Since I never physically saw that money, I discovered that I didn’t truly miss it.”
“Throughout the book, I share numerous personal confessions to remind other women they’re not alone,” Lapin states. Even with her background in business news, “I was once entirely clueless. Personal finance was never part of my education. And as women, we often shy away from discussing it with friends. I learned through tough experiences, which I consider the best education.”
Lapin aims to inspire women to take ownership of their finances for achieving security and realizing their aspirations. Along the journey, celebrate small wins to stay inspired. For Lapin, achieving her goal meant she could indulge in as many expensive avocados as she desires. What serves as your inspiration? “It could be as significant as a house or as minor as an avocado,” she writes. Once you hit that mark, “appreciate the achievement and remember the journey.”
