Gain new financial insights from our 15-minute podcast, the first in a 6-part series hosted by Kiplinger. Make the most of your money by learning more about:
- Productive conversations with your partner
- Earning extra with a side gig
- Tackling debt together
Click the play button to listen now!
Podcast Transcript:
[WELCOME AND SEGMENT 1: What to Talk About on a Money Date]
MICHAEL: Have you ever thought about doing freelance work to earn a little extra money on the side? Whether you call it freelancing, the occasional gig, or a side hustle, in our main segment today, Rivan Stinson, reporter for Kiplinger’s Personal Finance magazine, will explain the ins and out of how to get started. But first we’re going to talk about things to discuss on a money date. That’s all coming up on today’s episode of Kiplinger’s Talk About Money, sponsored by Synchrony Bank. We’ll be right back.
[theme music gets louder; plays for 5 to 10 seconds]
MICHAEL: Welcome back to Kiplinger’s Talks About Money, sponsored by Synchrony Bank. I’m your host Michael Causey, and today we’ll discuss the importance of open communication about money with your spouse or significant other. Joining me is Kim Lankford, the Ask Kim columnist from Kiplinger’s Personal Finance magazine. Kim will help us all understand the kinds of financial issues every couple needs to talk about – whether you’re just starting out or you’ve been together for decades.
KIM: That’s right, Michael. The fact is, money is the single biggest source of friction between couples, either married or living with a partner. A recent Fidelity survey says two out of three couples regularly disagree about money.
MICHAEL: Well, I didn’t need to do a survey to know that! So, what can a couple do about it, before the arguments start?
KIM: The easiest thing to do is to literally make a date to talk about money. Get a sitter and leave the house if you need to, so you can have an uninterrupted talk about your money attitudes and your financial goals.
MICHAEL: Are you suggesting that people get down into the weeds at this stage, like how much credit card debt they each have, or how well their investment portfolios are doing?
KIM: No, not yet. Make a point of not tackling those kinds of details on your money date. Instead, focus on how you both feel about money in general, your overall attitude toward it and what you want for the future. At this stage, just aim for open, honest discussion.
MICHAEL: So, what kinds of issues should couples discuss?
KIM: Talk about your money mindsets, where you’re both coming from, if you will. Was money tight when you were growing up? Are you more worried about day-to day spending or long-term saving? Is it important to you to have money set aside that you don’t have to account for? Talking about your most vivid money memories and how you each feel about money as a result can help you understand each other’s financial “personality.”
MICHAEL: What about decisions like opening joint accounts, or keeping them separate?
KIM: That’s an excellent way to get to know your partner’s overall money attitude and style. Another good topic is saving and investing. Does one of you cling to every single penny you earn, while the other hasn’t had a savings account in years? Is one of you an aggressive investor and the other more risk averse? You’re just trying to get an honest look at the broad similarities – or differences – between the two of you.
MICHAEL: Sounds like it’s mostly about preventing surprises later and managing expectations up front.
KIM: That’s exactly what it is at this stage. Talk about the big picture, prioritize your financial goals. See what’s most important to each of you financially. Is your goal to put your kids through college debt-free? Buy a house with cash? Travel extensively in retirement? Leave a sizable bequest to your heirs or even a charity?
MICHAEL: I always wanted a fancy exotic car…
KIM: That’s a perfectly valid financial goal. What’s important is to share it with your partner honestly, from the start of your relationship. Setting clear goals – and agreeing on which ones are shared goals and which ones are individual – will do two things. First, it will help you plan effectively to succeed in reaching those goals.
MICHAEL: And let me guess at the second thing – less conflict about money?
KIM: Well, certainly fewer misunderstandings and fewer surprises. And that should lead to far less tension about money. Aim for full disclosure on broad topics. When it comes to talking about money with your partner, you can’t afford to hold anything back. And encourage them to be equally open. Think about it: Not knowing the truth always causes way more problems than knowing the truth.
MICHAEL: That’s all excellent advice, Kim, thanks for sharing with us today. We’ll come back to the subject at the end of today’s podcast and do a little Q and A on specific topics, such as things couples should consider about employee health insurance, best ways to handle individual credit card debt, and more. That’s all ahead on Kiplinger’s Talk About Money, sponsored by Synchrony Bank. Don’t go away!
[promo break 1]
In addition to consistently competitive rates, Synchrony Bank offers you convenient ways to manage and access your hard-earned money, including their mobile app available for both iOS and Android devices. Download it today from synchronybank.com!
[MAIN SEGMENT: Side Hustle]
MICHAEL: Welcome back everyone. In today’s main feature, we’ll explain some important guidelines and considerations to keep in mind if you decide to pursue a side hustle. What exactly is a side hustle?
A side hustle is any activity you engage in to earn extra income outside of your current full-time job.
That could be anything from creating and selling your own product, to performing a service, to doing freelance work. If it’s a way to earn money outside your full-time job, it’s a side hustle.
And while freelancing isn’t exactly a new idea, the side hustle has dramatically grown in popularity over the past few decades. Nearly four in 10 Americans have a side gig today, according to a recent Bankrate survey.
KIM: That’s right, Michael. Some reports indicate that there are more Americans working a side hustle than ever before. But the question is why. Why are we all working so hard?
Most of the Bankrate survey respondents say they’re working for more disposable income or to put more away for a rainy day. But a good portion say they use the extra funds to cover ordinary living expenses.
Of course, there are other reasons, too. Some people are exploring whether an idea or a service could be a viable business. Others are hoping to leverage a unique hobby or interest. And a few just want to gain new skills.
But like anything in life, there’s a right way – and a wrong way – to go about it.
With us today to help explain the difference is one of my colleagues, Rivan Stinson, a staff Reporter for Kiplinger’s Personal Finance magazine. What’s more, she’ll tell us a bit about her own side hustle. Welcome, Rivan.
[exchange salutations]
KIM: Rivan, when it comes to starting up a side hustle, what’s the number one thing to consider? What’s the first thing people should think about?
RIVAN: The number one consideration is to do something you love. Begin by thinking about your hobbies and interests.
MICHAEL: Give us some examples, what kinds of interests could qualify as a side hustle?
RIVAN: Oh, practically anything. For example…
Fiverr.com -- that’s Fiverr spelled with two “Rs” at the end -- is an online community of freelancers. You can make a profile on their website to advertise your skills in a number of professional areas. Everything from writing and translation services to video production and illustration. You’ll also find people who do data entry, search engine optimization, web development and more.
MICHAEL: What if you’re just an incredible history buff or a genius-level math whiz?
RIVAN: Those are two terrific examples. Many people with specialized knowledge choose to tutor students. They advertise on school and community bulletin boards, or they create a profile on tutoring web sites such as Wyzant.com – that’s W-Y-Z-A-N-T – and Tutor.com.
MICHAEL: Are there resources available for people who want to leverage unique hobbies or interests?
RIVAN: Absolutely, Michael. If you love dogs, for instance, you can check out sites like Care.com and Rover.com. That’s a great way to connect with people looking for walking or pet sitting services.
And if you’re crafty or you like to make things, you’ll want to visit Etsy.com and Zazzle.com.
KIM: And of course, millions of people all over the country are part-time drivers for ride-sharing companies such as Uber and Lyft.
RIVAN: Yes, or making deliveries for Doordash and UberEats.
KIM: What if you don’t know what you want to do, but you know that you want to earn some extra cash?
RIVAN: You can explore some alternatives at sidehusl.com. That’s S-I-D-E-H-U-S-L dot com. They’ve rated and reviewed more than 250 platforms, and also have helpful blogs on how to start out and other things to think about when you launch.
MICHAEL: So once you’ve decided what you want your side hustle to be, Rivan, how do you balance everything? I mean it all sounds exhausting.
RIVAN: That can be tricky. The more successful you are at your side hustle, the more you have to remember that it’s something you’re doing on the side.
Respect your nine-to-five job. Your side gig has to be done outside of business hours. That’s why it’s called a side hustle.
Continue to do well at work. Always be fully present and engaged at your full-time job. That commitment will translate to your side hustle, as well.
Beware of conflicts of interest If your side business is in the same market or area as your current employment, you need to tread carefully. Your employer's clients, business procedures, and intellectual property should never be used for personal gain.
MICHAEL: What if your employer has rules against working a side gig?
RIVAN: You definitely need to make sure about that. If you signed a nondisclosure or noncompete agreement, then you may be prevented from working for a competitor or against your employer for a specific amount of time. Find out exactly what your rights are and what you can and cannot do.
MICHAEL: OK. That’s all great advice. Could you tell us a little about how you got your own side hustle going?
RIVAN: For my side hustle I chose freelance editorial… [Rivan will briefly describe how she decided on her side hustle.]
MICHAEL: So what are some of things you learned during this process? Any advice for others who want to start up a gig?
RIVAN:
- First off, be prepared to promote yourself. That can be a side-hustle in itself.
- Get comfortable with social media and know which channel is best for your needs
- Network, network, network
- Depending on your product or service you may need to attend live events, conferences or marketplaces
- Will you work for an established gig provider – Uber, tutor.com, fiverr.com – or work for yourself?
MICHAEL: Working for yourself seems complicated. What’s involved in that?
RIVAN: One of the things that people often don’t consider are the administrative tasks you will have to take on. You essentially have to be your own boss. You have to be in charge of…
- Marketing yourself and getting new business
- Accounts receivable and getting paid
- Customer service and dispute resolution
- Drafting agreement and contracts, and you might need legal advice
KIM: And let’s not forget about TAXES. Listeners will want to be especially careful here, Michael.
MICHAEL: Why’s that, Kim?
KIM: There’s no employer automatically withholding taxes for you and keeping records of expenses, deductions, etc. If you’re a sole proprietor, for example, you’ll need to fill out a Schedule C on your tax return every year. You should definitely talk to your accountant or tax preparer.
MICHAEL: Rivan, any other advice in closing?
RIVAN:
- Don’t be afraid to use the skills you already have from your full-time job
- Be prepared to start small and work up
- Be prepared to pivot or start over if necessary – for example, I originally set out to contract for bigger companies, hoping to go full-time. But that wasn’t really working, so I pivoted to look at smaller independent companies in my area who could use freelance help, and that was more successful.
MICHAEL: Well there you have it. Thanks Rivan, and thank you, Kim, for sharing with our listeners some of the things they should consider if they’re thinking about launching a side hustle.
We’ll take a break here for a word from our sponsor, Synchrony Bank. When we return, we’ve got a brief Q and A session you won’t want to miss concerning money matters for couples. Stick around, we’ll right back.
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For more great practical tips and helpful insights that can help you achieve your financial ambitions, be sure to check out the Synchrony Bank blog. Visit synchronybank.com forward slash blog today. That’s synchronybank.com forward slash blog.
[CLOSING SEGMENT: Money Date Q and A]
MICHAEL: Welcome back to our final segment, What to Say on a Money Date. Kim and I will finish up by answering a few financial questions couples commonly face. And remember, the point of today’s podcast is that you’re always better off discussing these things sooner rather than later in your relationship.
For example, Kim, let’s say a couple are both working, and both of their employers offer health insurance benefits. True or false: It’s always better to drop one plan and enroll in the other plan as a couple.
KIM: That’s actually false, Michael. While it may seem like the easy decision, the couple need to consider things like which company offers the better plan? How much does it cost as an employee, and how much extra does it cost to cover a spouse? It could wind up being more expensive if there’s a surcharge for covering a spouse on your plan. Depending on the plan and the employer subsidy, it may be cheaper to maintain two separate health insurance policies.
MICHAEL: And it’s always important, of course, to revisit the issue if they decide to start a family or change jobs.
How about credit card debt? Let’s say one spouse has $10,000 in credit card bills, and the other pays his or her balance in full each month. As a married couple, are they both legally responsible for paying off the debt?
KIM: Generally, the debt is the sole responsibility of whoever’s name is on the credit agreement. But for a peaceful relationship, couples need to discuss how to handle debt in a way that works best for them. Maybe whoever makes more money agrees to pay more of the debt. Or perhaps they decide that whoever owns the account should focus on paying it off as quickly as possible while the other partner covers all of the other financial needs. The point is to discuss using credit responsibly to make sure it works as a part of your overall financial strategy.
MICHAEL: Okay, credit card debt is one thing. But what if both partners have student loans? That’s a pretty common situation these days. Why not just merge the loans to simplify finances and streamline the repayment process?
KIM: Well, that’s another decision that sounds easy to make, but it may not be the best idea. Nobody likes to consider the worst-case scenario, but if the couple get separated or divorced, untangling the debt balance would be nearly impossible. Even if there’s no separation or divorce, if one partner defaults, the other is left responsible for the merged loan.
MICHAEL: So, what happens if one partner has way better credit than the other? If the couple apply for a mortgage, won’t they be better off applying based solely on the income of the person with the higher credit rating?
KIM: That one is kind of true depending on what you mean by better off. If one spouse has much better credit than the other, he or she will get a much lower interest rate on a loan. The catch is, applying based on one income could reduce the amount the couple can borrow. It’s also important to know that as long as both names will be on the title, joint assets can still count, even if the loan is in only one person’s name. And last, if they do take out the loan together, one person’s poor credit history won’t affect the other’s credit record as long as they make payments on time.
MICHAEL: Good to know, Kim, and thanks so much for sharing your time and expertise today. That wraps things up for today’s episode of Kiplinger’s Talk About Money, sponsored by Synchrony Bank. Thanks for listening!
[promo break 3 and disclaimer]
And don’t forget… Synchrony Bank offers award-winning rates on a variety of savings products to help you reach your financial goals. Be sure to visit SynchronyBank.com for current rates, and to jumpstart your savings today.
Kiplinger’s Talk About Money podcast was written and produced by The Kiplinger Washington Editors, Inc. Kiplinger is not affiliated with Synchrony Bank or any of its affiliates. The opinions and recommendations expressed in this podcast are solely those of Kiplinger and do not represent the advice, opinions or recommendations of Synchrony Bank or any of its affiliates.
Read this quick article to learn more about how to talk with your partner about money when moving in together!
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