Building an Abundance Mindset: Overcoming Fear in Investing
By Floyd Saunders
Founder of Really Simple Investing
Are you struggling with managing your finances while working in the service industry?
I recently interviewed Barbara Sloan for the podcast, she joins us with a background in the service industry working as a waitress and bartender; construction; and working for a Wall Street Investing firm.
The conversation covers topics such as Barbara's background, her transition into the construction industry, and her advice for managing fluctuating income in the service industry. Barbara shares that she wrote a book to help people in the tipped industry manage their finances better.
The book covers topics such as tracking income and expenses, emergency funds, retirement planning, and mindset. We also discussed the importance of financial literacy and simplifying investing for people.
Barbara shares her experiences working in the service industry and the lack of financial education available to workers. She emphasizes the importance of tracking income and expenses, and suggests looking to how businesses manage their finances for guidance.
But it's not just about managing day-to-day finances. Barbara also covers retirement planning and the benefits of tax-advantaged accounts like IRAs and brokerage accounts. She encourages people to prioritize their own financial well-being and shift their mindset to that of a saver or investor.
Listen to interview:
Beyond finances, Barbara's book covers topics like boundaries, environment, and mindset. She believes that it's possible to have a great life while doing what you love and retiring early.
If you're looking for a comprehensive guide to managing your finances and career in the service industry, be sure to check out Barbara's book, available in paperback, Kindle, and hardcover on Amazon. And you can learn all about it in the podcast.
What inspired Barbara Sloan to write a book to help tipped industry workers
Barbara discusses what inspired her to write a book to help people in the tipped industry manage their finances better.
Barbara gives advice on how to manage fluctuating income in the service industry, including starting with the income equation and empathizing with the challenges of budgeting with a fluctuating income.
Here are some more of the topics covered in the podcast and Barbara’s book.
Managing Fluctuating Income
One of the things Barbara learned from working all across the food service industry and building financial security as a tipped worker is the importance of tracking income trends and budgeting for slow periods in the service industry. The food service industry has peak earning periods and times when you income will be less, so you have to plan for that. Barbara’s tip is set up to set up a savings system, where you set aside money in peak times to help you with slow periods and to be able to take some paid time off.
Paid Time Off and Emergency Fund
As I continued to talk with Barbara, we discussed the lack of paid time off in the service industry and how that can create job burnout and the importance of setting up an emergency fund. Everyone has a rainy day and you have to have a fund for that so you can get past emergencies without taking out payday loans.
In our podcast interview, Barbara emphasizes the need for retirement planning in the service industry and discusses the different types of retirement accounts available, including brokerage accounts and IRAs. If your employer doesn’t provide a retirement plan, you have to set-up your own account. And one thing that Barbara points out is you can have a retirement fund, and fund it with just what you can afford, even $50 a money will help over several years to build up a retirement that is self-funded.
Creating a Common Language for Investing
“The financial services industry does a very good job of using its own jargon.” - Barbara Sloan
Barbara discusses how financial services use jargon to intimidate people and how she uses analogies to make investing accessible. Getting some financial literacy education can help you learn the jargon that you need to understand to get the basics of investing dow.
Investing in Index Funds
“You don’t have to go deep into investing to do well” – Barbara Sloan
Further into the interview with Barbara we talked about the benefits of passive index funds, including Warren Buffet's recommendation to invest in the S&P stock fund. Index funds are an easy approach that you can consistently invest some money into, even small amounts will compound over time. This makes investing very simple for Tipped workers. Simply open an account with one of the financial apps now available on smart phones and you can transfer any amount of money you like into your account and deposit money weekly, monthly or whatever fits your budget. Or use a Robo-advisor like Stash or Betterment.
Building an Abundance Mindset
“You are in a wealthy building state” – Barbara Sloan
One of the issues for many food service employees is the idea of having a scarcity mindset. But the minute you start investing some of your money, you become an investor, with a financial future. Barbara shares more of her tips for reducing a scarcity mindset and building an abundance mindset, including using affirmations and building a positive identity with money in both the interview and her book.
One of the abundance mindset mantras that Barbara uses every day is: “Money comes to be easily and frequently”. When she worked in the service industry, it was something she said to herself at the start of every shift she worked.
You Can Think of Barbara's Book as a Career and Financial Guide
Barbara's book is more than just a financial guide, but also a career guide and a roadmap to lifestyle design. It just seems to me that a lot of people can benefit from her tips on building a career as well as developing a success mindset around money.
Planning for a Great Life
Barbara talks about how her book can help people plan for a great life while doing what they love, even if it means staying in the service industry. It’s really about the mindset that you develop for yourself around money, regardless of the career path your follow.
“What if we just had a great life while doing what we loved? What if we could plan for that?" – Barbara Sloan
Barbara Sloan's book, Tipped for the Service Industry Employees
is available from Amazon and other great book sellers. you can get it in hardbound, paperback or as an ebook.
Key Words: Really Simple Investing podcast, Barbara Sloan, author, service industry, managing finances, tipped industry, financial education, tracking income, tracking expenses, emergency fund, retirement planning, tax-advantaged accounts, IRAs, brokerage accounts, compound interest, financial literacy, passive index funds, buy-and-hold strategy, market downturns, money mindset, Floyd Saunders