Business Innovators Radio - LEKETA HAWKINS: Improving Financial Literacy and Mindset to Improve Your Life

Episode Date: November 10, 2023

In this episode, Dr. Tamara Patzer talks with Leketa Hawkins, the founder of HawCLeigh and known as the “Pocketbook Strategist.” HawCLeigh is a business consulting company that provides financial literacy education, resources, and information to aspiring entrepreneurs and small business owners. With a background in biology, chemistry, and health administration, Leketa Hawkins brings a unique perspective to her role as a money coach.During the interview, Leketa discusses the main challenges and misconceptions around money management. She emphasizes the importance of budgeting, creating an emergency fund, and prioritizing debt reduction. She also addresses the psychological aspects of money management, such as mindset and impulse spending.This episode is perfect for aspiring business owners or anyone looking to improve their financial literacy. Leketa provides practical strategies and resources for achieving financial goals and building financial resilience. Her client-centered approach and attention to detail make her a trusted resource in the field of business consulting.To find out more about Leketa Hawkins and her services, listeners can visit the website HawCLeigh.com. Leketa also recommends reading the book “Rich Dad Poor Dad” by Robert Kiyosaki, which explores the differences in mindset between the rich and the poor and provides insights into building wealth.Whether you’re struggling with budgeting, debt management, or mindset issues around money, this episode offers valuable insights and practical tips for achieving financial success. Tune in to gain a better understanding of money management and how it can impact your overall well-being.If you are an aspiring business owner or seek to become an entrepreneur but are not sure how to effectively make that transition, HawCLeigh is here to support you every step of the way. As an entrepreneur and small business owner, Hawkins is knowledgeable of the economic effects that can occur with launching your own business. The HawCLeigh team has developed strategies and resources to decrease the complicated aspects of starting your own business while providing tangible educational resources for credible sustainability.To learn more information or to book a consultation, go to https://hawcleigh.com/Source: https://businessinnovatorsradio.com/leketa-hawkins-improving-financial-literacy-and-mindset-to-improve-your-life

Welcome to Business Innovators Radio, featuring industry influencers and trendsetters, sharing proven strategies to help you build a better life right now. Hello, everyone. This is Dr. Tammy Pitzer, and I'm really excited about today's guest, Lakeita Hawkins, because she's a founder of Hockley, and she's known as the Pocket Book Strategist. So let me just do a little introduction and then we'll dive right into the questions. So Hockley is a business consulting company that provides financial literacy education resources and information to aspiring entrepreneurs and small business owners. Entrepreneur and small business owner, Lakita Hockens, is the founder of Hockley. And like I said, on social media, she's known as the Pockley. pocket book strategist, and she creates content to inspire to inspire small business owners and

entrepreneurs about financial literacy. Hockley focuses on providing educational resources and services to support business owners in successfully launching or improving their business model. It's that attention to detail and client-centered approach that makes Hockley the go-to-business consulting agency. Some of the services offered are budget analysis, strategies on how to build a productive team, career consulting, and expense tracking. Hawkins is an alumna of Winston-Salem State University with a bachelor's degree in biology and chemistry and a master's degree in health administration. Her educational experiences attribute to her goal-oriented and time management skills. So if you're an aspiring business owner or if you seek to become an entrepreneur but are not

sure how to effectively make that transition, Hockley is here. to support you every step of the way. As an entrepreneur and small business owner, Hawkins is knowledgeable of the economic effects that can occur with launching your own business. The Hockley team has developed strategies and resources to decrease the complicated aspects of starting your own business while providing tangible educational resources for credible sustainability. So you can go find out more or to book a consultation. You can just go to hockley.com and we'll repeat that as we discuss all of the amazing things that you're doing. So to start off, the pocketbook strategist, that is such an interesting concept for today.

can you share a little bit more about your personal journey and what inspired you to become a money consultant? Definitely. Thank you, Dr. Passer, for that great introduction. I really appreciate it. It began with my personal story and journey. So what inspired me to be a money coach is the pain points that I actually went through. I actually lived a period in my life where I was actually going through overdrafting of my checking accounts. I didn't have the savings. I was living paycheck to paycheck. I was writing checks to cover expenses until I got paid. I was living off of maxed-out credit cards. I was paying my credit card bills to turn around and then use the credit card again. I was calling the credit card companies or different light bill or different electronic or electric companies putting payments on the back burner, along with putting car payments on the back burner. And so I had a low credit score. And so once I was able to get myself out of that route that I was actually in with all of those things that I experienced over a period of years, I thought to myself that there

has to be other people to actually experience these same things. And so by me going through that, I knew that I could help others. So I wanted to start the business of becoming the pocketbook strategist and a money coach. That's interesting because, like you said, you actually actually. went through it. And I think that's one of the best ways to actually learn how to teach something, is if you actually have done it yourself, it can really be helpful. So what are some of the major financial challenges or misconceptions that you've encountered in your coaching practice? Absolutely. So a lot of my clients have actually experienced lack of budgeting.

So maybe people struggle with not having a budget or not sticking to one, which ultimately leads them to overspending and then leads to a lot of financial stress. A lot of my other clients, they have high ceiling debt levels where they have accumulated excessive debt, especially high interest credit card debt. I've also seen a lot of my clients that actually face challenges of not having an actual emergency savings. So some individuals underestimate the importance of having an emergency fund, which again can lead to financial hardship when unexpected expenses arise, such as car repairs, home repairs, or need of appliances in the home. A lot of my other clients, they actually

experience different challenges of trying to keep up with others, you know, trying to maintain a lifestyle based on appearances which often leads to financial strain and overspending as well. And then just basically lack of financial education. Many people haven't received proper financial education, which can lead to poor financial decision-making as well. So in your experience, how do you actually approach helping individuals and family so that they can create a realistic budget? Absolutely. So I think that there's no one size that fits all. You know, everyone's goal and needs are different.

But my first approach is actually looking at the overall picture, asking them of their actual goals and wants, what they're actually trying to achieve. And then after that, we do a little bit of mindset work. And then we actually go into looking at what they're spending, their cash flow, what's coming in, what's going out. Because, of course, if you don't know your numbers, you can't grow your numbers. And so you have to take a step back and just put all your documents together. So I sit down with them or their families and we go from there and look at each of the numbers and then create a realistic budget and then set up a plan for them to work through on a monthly basis or biweekly basis or weekly basis depending on how their income comes into the home. Well, that makes sense. So if they have weekly income, then they need to look at it on that micro.

basis. So what are some of the effective strategies that can help people improve their financial literacy and education? And first of all, I think I'm an advocate of starting early. So even if you have family, you know, you want to start with your children at a young age. You know, you want to encourage them with saving habits. You want to explain the value of money and basically introduce basic financial principles through age appropriate activities and discussions. So just stopping it right there and starting it early for them. And then also utilizing any online resources.

I think it's a plethora of online articles or videos or tools to help individuals learn about managing money, as well as reading books and, you know, investing in financial literacy books written by reputable authors. And, you know, also enrolling in courses. Many, any universities and community colleges have online platforms that offer courses. And then as well as attending workshops and seminars, basically with someone like me, the Packerbook Strategist or some type of financial planner within a local organization, your church, community center, financial institutions, things of that nature. And then also taking advantage of, excuse me, and who are, resources. You know, some employees offer financial wellness programs. You know, you have access to

financial advisors, you know, taking advantage there. And just using any other interactive tools that are at your disposal, you know, because improving the financial literacy is an ongoing process, you know. The key is to start small and stay consistent and continue learning over time. You want to build a strong foundation of financial knowledge that can lead to a better financial decision making and greater financial security in the future. So even with all these resources available, a lot of people really struggle with money. And how does your, the psychology or the mindset related to money affect people? And how do you address that with your clients?

So mindset and psychology definitely plays a significant role in managing money effectively in terms of behavioral finances and financial decisions. They're not purely rational, right? So they're often influenced by emotions and biases and ingrained beliefs. And so addressing these psychological aspects is crucial and critical when working with clients to help them make better financial decisions. mindset and psychology affects the money management and actually address that with my clients by going through emotional decision making. And I address that by helping them recognize the emotional triggers in their financial decisions. So by encouraging the clients to take a step back, you know, evaluate their emotions and consider the long-term consequences of their choices. You know, someone like me can guide the clients towards more rational decisions in making that suggestion.

Another thing is delay gratification. Many individuals struggle with delayed gratification, which can lead to overspending as well. And my approach to that is to set clear financial goals and develop strategies for prioritizing long-term financial well-being over short-term impulses, helping them create budgets and saving plans that align with their goals. And then next going into the behavioral change, you know, changing the financial habits can be challenging because most of these clients have been doing this years. So the clients initially may resist implementing financial advice even when it's in their best interest. So I use certain techniques to help the clients make gradual, sustainable changes. And this involves setting those small achievable goals and providing positive

reinforcement and creating accountability mechanisms. The last couple other things that I can think of is communication and education, you know, just communicating with the clients and addressing that mindset and then educating them on it, letting them know it's okay, you're in a non-judgmental setting with the client and then using simple languages to explain the concept or the complex financial concepts to ensure that the clients fully understand their financial plans and strategies. And lastly, just providing that continuous support, you know, just letting them know that you're actually there for them. It's not just all about the numbers and calculations. It's about us understanding and addressing the psychological factors that influence

the financial decisions. And then, you know, just helping them with that ongoing. As you were talking, I was just thinking about, you know, as growing up you, I'd always hear, like, money doesn't grow on trees and all of this different thing. And I think about the turning the lights out, you know, to save money on electricity. and just some of the mental things that we go through. So you talk about the budgeting process, the mindset, but what do we do? You mentioned financial emergencies, like the car repaired,

like my refrigerator went out. The cars, you know, all of a sudden you need not one new tire, but four new tires. and you, you know, all of the, you have that money saved up for, you know, for something else. And, of course, it gets spent on this emergency. So what types of strategies do you have to help people become more financially resilient? Well, the strategies I like to use is basically creating an emergency fund. An emergency fund is basically a savings account specifically designed.

for unexpected expenses. So you want to aim to build that up to at least three to six months worth of living expenses in this fund. So I encourage my clients to start small if necessary and then gradually increase over time. You know, if you're trying to pay down debt, but then you have the quick emergency, you know, it's kind of hard to get out of that roof. You don't have anything to fall back on. I'm also setting up separate savings accounts. That can ensure that the emergency fund remains untouched for any unintended purpose. purposes. This can make it less tempting to dip into for non-emergencies. Also, automating your savings, you know, setting up that automatic transfer from your checking account to your emergency

fund and other saving goals. So having those little nuggets and buckets of saving accounts, and this ensures that you have consistent contributions without relying on willpower. And then just, you know, budgeting for the emergencies. You include a line item in your budget for any unexpected expenses and you're allocating a portion of your income each month to that category, even if you don't have any immediate emergency needs at that moment. And then prioritizing debt reduction, high interest debt can, you know, it can exacerbate very quickly. So you focus on paying off those high interest debts like credit card balances as part of your financial plan. And then as well as reviewing and any updating any documents that you may need to you're staying on top of

things and you know where they are when you need them and you know what's there when you actually need it. So that can kind of alleviate some of that, along with establishing alternative income streams, you know, exploring opportunities for additional income, such as a side job or freelance work or passive income sources like investments, this can kind of provide a safety net during those tough times. And as well as avoiding lifestyle inflation. So when you receive, raises or, you know, a bonus or something like that, you actually consider saving it or invest in that extra money instead of actually increasing your lifestyle expenses. So this can actually help build the financial resilience faster. And then actually being frugal, you know, kind of living a

frugal lifestyle by making constant, you know, conscious choices about spending. You know, you're looking for ways to cut unnecessary expenses, like you said before, you know, cutting off the lights or, you know, unplugging certain things and also finding deals and discounts. And along with, you know, seeking that professional advice and reviewing regularly adjusting your plan, networking, building a support system. And that helps alleviate a lot of that. It's interesting because you're talking about being more frugal. And you also mentioned earlier about how people will spend money to keep up with

other people with that lifestyle. So how do you balance that pursuit of all of those financial goals you have and yet enjoy your life in the moment? Yes. And you know, I did that from a lot of clients. They think that, you know, okay, just because I decide to do a budget, I'm going to have to cut everything out of my life. But I think it's definitely about balance. Balancing the pursuit of the financial goals with enjoying in the present moment is mainly a common challenge for most people. But it's entirely possible with careful planning and mindful decision making. So some strategies that I use is just setting clear financial goals. You know, you start by defining your financial goals and then prioritizing them.

You know, knowing what's working towards you that can help you allocate your resources more effectively and then make those informed decisions. Of course, it needs to be written down so you can actually see it versus just in your head because you could forget in that moment. Again, going back to the traditional way, just creating that budget, you know, just starting with the budget as it outlines your income expenses and savings. And then it helps you track those savings and it helps you allocate your money. You actually know where your money is going before you get it. So then you know that you're not tempted to. to enjoy certain things of life overboard, like overdoing it.

And then prioritizing your spending, you're going to, you know, most clients need to differentiate between needs and wants. You know, you're going to allocate a portion of your budget to meet your basic needs, such as housing, groceries, and utilities. And then you can designate funds for any discretionary spending on things that bring you joy in the presence. So definitely not cutting those out. And then also practicing mindful spending.

When you're making discretionary purchases, you ask yourself whether this is an item, whether I need it, want it, like it or love it. You know, that's what one of my mentors say, you know, you want to go through those questions. And then you avoid and post this spending on those items that won't contribute to your overall well-being. Also, setting aside money for any fun, you know, you have fun money. You know, you have a little bit of fun with your budget. Everything is not always serious. You could have a little fun with it. You know, you allocate a specific amount for a certain fun money and personal spending.

And that gives you a little bit of freedom to enjoy the present without feeling guilty. And then also planning for special occasions, you know, you anticipate and budget for special occasions, excuse me, and events that you want to enjoy, such as vacations, birthdays, birthdays, and you set aside that money for those expenses. And then going back to what I mentioned earlier, automating your savings, being frugal, and then celebrating your milestones. If you reach a milestone, you want to acknowledge that so that can keep you motivating, you're finding joy and having fun on this financial journey. Practicing gratitude with yourself. You know, you want to cultivate the gratitude for what you have in the present, being mindful of the positives in your life. And that can reduce the urges to seek happiness solely through material possessions, going back to that mental and mindset that we talked about earlier. Of also exploring low-cost enjoyment.

You know, seeking out low-cost of free activities that can bring you happiness in the present that doesn't really cost you a lot, such as hiking, reading, or spending time with loved ones and pursuing hobbies that don't require a significant amount of money. And then lastly, you know, just avoiding comparing yourself. to other people. You know, you want to resist the temptation to compare your lifestyle or possessions with others. Remember that everyone has unique financial circumstances and what works for one person may not work for the other. You know, just keeping all that together and then revisiting and adjusting because things change and life changes. So just staying on track and being aware.

That all makes a lot of sense. And you were talking about low-cost things. Like, for example, the public library is one of the places that if you actually looked at what is available to you through the public library, I mean, you actually have access to all the libraries in the country and all kinds of databases and things that a lot of people never even know about. So I like about everything you're talking about with being mindful and everything. So what would you say, if someone were to ask you, okay, what are the most common mistakes people make for money management? And of course, we want the answer. How do you avoid them? Absolutely.

So several things come to mind. and I'll talk about those as well, but I think the number one is not seeking financial advice. You know, you avoiding professional financial advice can lead to missed opportunities and poor decisions. And to combat that, you would consider consulting a financial advisor for guidance. Next is just not budgeting. Many people fail to create a budget, which can lead to overspending and financial stress that we talked about prior. So to avoid that, you create the budget outlining your expectations. expenses and your income. Next to living beyond your means, most people spend more than they can

actually, you know, lead, you know, then they can actually make. And so that leads to debt. So again, living within your means by cutting those unnecessary expenses like the cable. You know, most people think that they have to have the cable, but it's a lot of people that have actually cut the cord on their cable, saving them hundreds of dollars a month and thousands of dollars per year. And then most people, common mistakes, another common mistake that they make is in ignoring their emergency fund, failing to save for that emergency fund that we talked about. So you want to aim to build an emergency fund, eagling to that three to six months worth of expenses. And then other people, they have high interest debt, taking on a lot of debt like credit cards that can be costly. So you want to prioritize paying off that high interest debt to save money.

Some of those goals are to actually take on the avalanche method or the snowball method. So the snowball method is starting from the small deck going to the largest, and then the avalanche is the exact opposite, going from the largest to the smallest. And two other things that I can think of is lack of financial goals. Without clear goals, it's challenging to make any financial progress. So you want to set specific achievable goals to stay motivated and stay on track. And then lastly, another one that I see mistakes that people make is the impulsive spending again. You know, impulsive purchasing can derail your budget.

So you want to practice mindful spending and evolve impulsive buys. I'm glad that you explain the difference between a snowball and an avalanche method because here's a question that I'd like to know. when would you charge one or choose one or the other? If a snowball is pay off the smaller debts first and then the avalanches do the larger ones, is that just you would choose it based on your ability to pay one way or another? So it will be specific within the person, but you can choose it based off your ability, yes. And then you can also start with those high interest rates that I was speaking of. So let's just say if you want to do this mobile effect, but after looking at all of your documents,

it may be beneficial for you to actually use the avalanche method because you have high interest rates over here. You're paying all this interest. And if you pay that down quickly, then you're able to put more money to those other debts that you have. Okay, okay. I get it. So you talked a lot about, um, different things that you can do. Do you have any resources or tools that you could suggest to

help you to get organized and to actually start accomplishing some of these things? So I'm recommending resources, books or tools to clients for furthering their education. I often consider the client's specific needs, goals, and their level of financial literacy. The book that changed it all for me was Rich Dad, Poor Dad by Robert Kiyosaki. So that is definitely a book that I always recommend regardless to what level you're on because this book actually explores the differences in mindset between the rich and the poor and provides insights into building wealth, which is what most people want to do. So again, it begins with changing the mindset between the two.

Some people actually don't understand the difference between being rich and wealthy. Most people just want a lot of money. Some people want to be happy. And so it just depends on the patients or the client-specific needs. I want to actually recommend. But it's a plethora of resources out there. Online tools, books, other resources I actually have coming out soon too. So stay tuned for those as well.

That sounds like it makes a lot of sense because, like you said, there are a lot of different tools out there. So you work with so many different entrepreneurs, professionals, small business owners. Are there strategies that you help clients with say that if they want to have some specific financial milestone, like maybe they want to buy a house or maybe they want to start a business? Do you work with them on that? Yes. I can certainly provide several strategies for achieving specific financial milestones, like you said, like buying a house. So I keep in mind that financial planning is highly individualized.

It's often a good idea to, you know, always consult someone. How I began with my clients is setting those clear goals, you know, determining the type of home you would like, it's location, you know, any estimated cost, you know. this would be the foundation of your financial plan, you know, and then creating the budget, analyzing your current financial situation, including your income expenses, your debts, your savings, because you have to establish a budget to help you save for your home purchase. You know, you want to build an emergency fund again. Before saving for a home, you know, you want to ensure that you have the emergency fund

to cover any unexpected expenses that can prevent you from dipping into your home savings. You know, you want to save for the down payment. So you start saving for the down payment, which is typically a percentage of the home's purchase price. So, you know, you may consider open up a separate savings account for that purchase on purpose. And then, you know, you actually want to improve your credit score, you know, reduce debt, you know, helping the clients reduce debt. I help them with that. Of course, and then exploring any mortgage options that you may have. And again, saving for those closing costs and other expenses.

And then actually tracking your expenses. continuously monitoring your expenses to ensure that you stay on track. So, yeah, you know, most people have to remember that buying a significant financial commitment. So careful planning and discipline is essential, you know? And the person like me can help you navigate the complexities of those savings so you can get to your goal of homeownership. So we've covered a lot here. So I'm thinking maybe if we can recap some of the common financial challenges that people are coming up against, especially, you know, in today's economy, that things are maybe we just don't know what's going to happen in different, you know, times and everything.

So you want to just give a few more, just recap some of the ideas that you've given related to how to achieve this balance and how to meet these financial challenges that you might be up against so that you can come out on top? Yes. The number one is building that emergency fund and then creating the budgets, prioritizing your savings, and then they can. contingency plan, always seeking advice when needed, avoid any high interest debt, cut any non-essential spending, and then learn from your experiences. You know, you're not always going to be perfect. We all have downfalls. You know, it's about getting back on and then learning from those experiences. Well, great. So I wanted to ask you, if somebody wants to reach out to you for a consultation, what is the best way to do it?

Definitely. So I am a couple of strategies on IG, and Hockley is on all platforms, which is Hawk, H-A-W-C-L-E-I-G-H, and that is all on all platforms, Facebook, Instagram, Twitter, TikTok, we're on everything. Okay, great. Yep, and along with going to hawkley.com, and you'll be able to see how to book consultation there. Consultations are free, and then anything after that, you'll see all of that outlined on the

website. Okay, great. So do you have anything you'd like to add before I let you go? No, I just want to last say one of my mentors said, you know, often if you don't know your numbers, you can't grow your numbers. So you definitely want to be able to know your numbers in order to move forward to set those goals and strategies and actually achieve what actually you want to achieve. Well, great. Well, Lakeita, I really appreciate you sharing all this information. My head is actually, I've got all these scenarios running through my mind now, of course, and of course I feel guilty because of some of my lack of financial education. So I'm sure everybody really appreciates everything. And thank you so much.

Thank you, Dr. Pastor, for having me. I appreciate you. everyone go to hotly.com and I'll put the spelling of that in the show notes. Thank you. Talk to you soon. Thanks for listening to Business Innovators Radio. To hear all episodes featuring leading industry influencers and trendsetters, visit us online at businessinnovators radio.com today.