Money Rehab with Nicole Lapin - "I Want To Drop $10K on Tattoos... Can I Afford It?" (Listener Intervention)

Episode Date: June 7, 2024

Money Rehab listener Adam calls Nicole for advice on whether he can drop ten grand on his next sleeve. To treat yourself or not to treat yourself? Listen to find out! Originally aired on July 29th, 2021 

One of the most stressful periods of my life was when I was in credit card debt. I got to a point where I just knew that I had to get it under control for my financial future and also for my mental health. We've all hit a point where we've realized it was time to make some serious money moves. So take control of your finances by using a Chime checking account with features like no maintenance fees, fee-free overdraft up to $200, or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you check out Chime, you'll see that you can overdraft up to $200 with no fees. If you're an OG listener, you know about my infamous $35 overdraft fee that

I got from buying a $7 latte and how I am still very fired up about it. If I had Chime back then, that wouldn't even be a story. Make your fall finances a little greener by working toward your financial goals with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN. Chime. Feels like progress. Banking services and debit card provided by the Bancorp Bank N.A. or Stride Bank N.A. Members FDIC. SpotMe eligibility requirements and overdraft limits apply. Boosts are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Terms and conditions apply. Go to Chime.com slash disclosures for details.

I love hosting on Airbnb. It's a great way to bring in some extra cash, but I totally get it that it might sound overwhelming to start or even too complicated if, say, you want to put your summer home in Maine on Airbnb, but you live full time in San Francisco and you can't go to Maine every time you need to change sheets for your guests or something like that. If thoughts like these have been holding you back, I have great news for you. Airbnb has launched a co-host network, which is a network of high quality local co-hosts with Airbnb experience that can take care of your home and your guests. Co-hosts can do what you don't have time for, like managing your

reservations, messaging your guests, giving support at the property, or even create your listing for you. I always want to line up a reservation for my house when I'm traveling for work, but sometimes I just don't get around to it because getting ready to travel always feels like a scramble, so I don't end up making time to make my house look guest-friendly. I guess that's the best way to put it. But I'm matching with a co-host so I can still make that extra cash while also making it easy on myself. Find a co-host at Airbnb.com slash host. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player, GameStop. And should I have a 401k?

You don't do it? No, I never have. You think the whole world revolves around you and your money. Well, it doesn't. Charge for wasting our time. I will take a check. Like an old school check. You recognize her from anchoring on CNN, CNBC, and Bloomberg.

The only financial expert you don't need a dictionary to understand. Nicole Lappin. It's time for one of my favorite segments that we do on Money Rehab, a listener intervention. Today, I'm talking to Money Rehabber Adam, who is totally a brother from another mother when it comes to financial advice. He wrote to me asking whether he's in good enough financial shape to spend $10,000 on tattoos. So I called him up so we could make the decision together. Adam, welcome to money rehab. Thank you. I appreciate you having me. Big fan. That's how I start every day. But I'm like very anti Dave Ramsey. And like he's who I kind of was brought up on. So I was trying to find something new.

So you broke up with Dave for Nicole Lappin? Yes, I did. So what is your question? So my question is, I've been on the road to retirement since I turned 18. I've been big into... Whoa, whoa, whoa. How old are you? 27. You're on the road to retirement right now. Sorry. I shouldn't have phrased it like that. I just mean I started investing for my retirement at age 27. It's a long journey. We're all about the index and chill vibes, but I'm not saying I'm going to retire now. Sorry. I just mean I've been

interested in investing for my retirement since I could, you know, since I could open an account at Vanguard. That's great. And I'm investing 26 percent of my income into retirement. And the problem is tattoos, as you know, are expensive if you want to get a good artist. And I just don't know how much I should be able to spend on those. And I have a problem with I always feel guilty when I spend money. So it's like, I just need to hear an expert's opinion on like, how much is okay. And yeah, it's just hard for me because I know they're expensive. And I want to get like my legs and my back and my chest done and stuff. But I don't know if that will like shoot me in the foot for my retirement and stuff. So that's kind of the gist of it. Well, 26% of what you're making is awesome. You make $50,000

a year. Yeah, that's another thing. I'm well, I'll have to read like boss bitch or something. But my career stuff I'm not totally happy with. But yeah, yeah, right now. Yeah. 50. Well, making more money for sure will obviously make the saving feel not as painful for easy math. What you're putting about 10 grand? Yeah. Yeah. 10 to 12, depending. Yeah. And where are you putting that? So I have a 2060 target date fund at Vanguard that that's my Roth IRA. And then I have just like a non retirement account. Same thing at 2060. It's a VTT SX. That's a ticker at Vanguard. But I have that and that I put $50 and then my Roth I max out every year. And then I have my 401k at work,

which I contribute five and they match 4%. And what about an emergency fund? I have like $43,000 in just a savings account, which is kind of stupid, I think. That's another thing. I'm like, I feel like that's too much money to have and not growing because obviously the interest rates on the holding money market, like savings accounts are trash. Well, first of all, don't talk about my new friend like that. You are not stupid. You're crushing it. You're doing so well. These are champagne or high class problems to have for a lot of people who haven't started any of this stuff or thought about it by 27. So I'm really proud of you for starters. Do you know how many months 43 grand covers for your I like

to call it the brown rice and beans diet. This is like basic stuff. If God forbid you lost your job or couldn't work, I think so. It's well over a year, probably close to a year and a half, I would say. To me, my vision of it is like, like a 20% down payment on a house or something. Yeah, I mean, but for that, where your other money is, is essentially liquid, and you could get it out if you needed that for a down payment as well. So I'd love to see it doing something like being put to work in some way. I would say the first thing to do is to calculate how much a year of living expenses would cost you. Do you have any sub savings accounts? No.

I think these are really helpful for organization and also visualization. I know that sounds kind of squishy and woo-woo, but if you name your savings accounts, you're more likely to stick to them. So I would create a tattoo savings account within your bank. And so I would take whatever the difference is between how much a year is. And I think a year is fine. That's what I have. For me, my income is precarious. I obviously work for myself. And so being a W-2 employee is a different story. You have a lot more consistency. But if you're a freelancer, if you're a model or a real estate agent or something like that, having more is better. What's your job? I'm an operations analyst at an investment firm. And that seems like a job that you could get at another firm relatively quickly. Yeah, for sure. Yeah.

So I think, you know, a year is generous, but this is one of those discussions that isn't rooted in economics. It's rooted in how you can sleep at night. And I get that. And that's as good a reason as any to have more in your emergency fund than not. So I would sit down and calculate what that would be for a year, cut it off there, and then put the rest into a subsavings tattoo account. So I'm not sure how much is going gonna be in there just by doing that. But it sounds like you can get your second sleeve, right? Yeah, I'm finishing my second. Okay, so you have what so that's like 10 grand, you think?

Oh, for the rest of my sleeve? Yeah, I could tell you exactly. So, so far, she's 1200 a day, Yeah, I could tell you exactly. So, so far, she's 1200 a day, and then I tip 20%. So that's 1440 a session or a day. So we're going to do about three more sessions. So I'd say it's probably around 10, eight to 10. Yeah, depending on how you're making. I mean, that's on the lower end of what a lot of people do for their extras. I break down a spending plan to the essentials, endgame, and extras, where 70% goes to the essentials and then 15% to the endgame. You're putting more than that. And then 15% to the extras because I really, really advocate doing nice things for yourself. This is why you work so hard. I am never going to tell people not to buy a latte. I'm never going to tell you not to get tattoos because you love tattoos. I mean, I can imagine other financial experts would not get the idea of

tattoos. I have tattoos myself. They make me happy every time I see them. They look like jewelry. They are really valuable to me. They're really personal. They're meaningful. And I understand that. And that's, you know, those are the good things and why we work so hard. So just figuring out how to plan properly is, you know, it sounds like a super easy fix for you. So taking about, I mean, 5% is conservative. So $2,500 would be 5% of your income right now. So I would just set an automatic transfer from your paycheck into your new sub savings account. So before it hits your checking account, before it does anything else, it sounds like the rest of your savings is automatically transferred anyway.

Yes. So you can either talk to the HR department or set up through your bank where it comes from your paycheck into this particular sub-savings account. And I think you, when you're ready, can just take from that account and continue to tat yourself up. That's awesome. Like I said, I get so much guilt for like spending money and stuff. So it's like really not that complicated, but I just kill myself over this stuff. It's like, oh, I can't afford to do this or whatever, because it just pains me like, okay, I'm spending 14. I just don't spend money like that in my other life. Like I'm a guitar player and like, you know,

sometimes there'll be expensive equipment, but it's never like, Oh, I'm doing a tattoo session and it's 1440. And then like, Oh, I got to go back like in a month and do it again and again and again. So yeah, it's just kind of intimidating, but like you said, it's something that I love and I enjoy a lot. So it makes sense to do that sub-saving account, especially like to me, that's perfect because I don't even have to think about it.

That's my favorite type of thing with investing and saving is just set it and forget it type of thing. I love a good set it and forget it. Totally. And it just safeguards yourself from yourself and it sets it up without you having to stress over it monthly. Hold on to your wallets, boys and girls. Money rehab will be right back. One of the most stressful periods of my life was when I was in credit card debt. I got to a point where I just knew that I had to get it

under control for my financial future and also for my mental health. We've all hit a point where we've realized it was time to make some serious money moves. So take control of your finances by using a Chime checking account with features like no maintenance fees, fee-free overdraft up to $200, or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you check out Chime, you'll see that you can overdraft up to $200 with no fees. If you're an OG listener, you know about my infamous $35 overdraft fee that I got from buying a $7 latte and how I am still very fired up about it. If I had Chime back then, that wouldn't even be a story.

Make your fall finances a little greener by working toward your financial goals with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN. Chime. Feels like progress. Banking services and debit card provided by the Bancorp Bank N.A. or Stride Bank N.A. Members FDIC. SpotMe eligibility requirements and overdraft limits apply. Boosts are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Terms and conditions apply. Go to Ch chime.com slash disclosures for details. I love hosting on Airbnb. It's a great way to bring in some extra cash, but I totally get it that it might sound overwhelming

to start or even too complicated if, say, you want to put your summer home in Maine on Airbnb, but you live full-time in San Francisco and you can't go to Maine every time you need to change sheets for your guests or something like that. If thoughts like these have been holding you back, I have great news for you. Airbnb has launched a co-host network, which is a network of high-quality local co-hosts with Airbnb experience that can take care of your home and your guests. Co-hosts can do what you don't have time for, like managing your reservations, messaging your guests, giving support at the property, or even create your listing for you. I always want to line up a reservation for my house when I'm traveling for work, but sometimes I just don't get around

to it because getting ready to travel always feels like a scramble, so I don't end up making time to make my house look guest-friendly. I guess that's the best way to put it. But I'm matching with a co-host so I can still make that extra cash while also making it easy on myself. I'm matching with a co-host so I can still make that extra cash while also making it easy on myself. Find a co-host at Airbnb.com slash host. Now for some more money rehab. It sounds like you are more in the world of I'm going to live forever and not spend on myself, which is maybe a better extreme to the opposite of folks who think they're going to die tomorrow and go balls to the wall spending. But I think that the best place to be with your finances is somewhere between I'm going to live forever and I'm going to die tomorrow because you can't take it with you

and you don't want to be the richest untatted dude in the graveyard. I hate to be morbid, but we're all walking each other home. So I think that spending on yourself is a mindfuck. Like all of money is a mindfuck, whether you have money, whether you don't have money. I think the biggest enemy to any of this stuff is in between your ears. And so it sounds like you've done a lot of work on your own finances logistically and also with your mindset, which, by the way, I think matters more than anything else when it comes to financial management. I know diet experts who say, think thin to be thin. And that's bullshit. Like, you want to be thin or you want to get in shape,

go to the gym, stop eating as much. But I think with finances, the way you talk to yourself and the way you think about it is everything. It matters so much. I think you're doing great. You're really, really all over all this stuff. I mean, for anyone, especially a 27-year-old who has a net worth of $135,500 to be exact, and you're saving 26% of your income, you're doing great. Allow yourself to treat yourself because you've worked really hard for it. And some people shouldn't treat themselves because they're reckless in other parts of their finances. But you are not. I mean, you, Adam, are very, very responsible and very all over this. And I just want you to feel motivated

as you're continuing to save and invest that you can enjoy the fruits of all of your hard work. Thank you, I appreciate it. Yeah, I definitely needed to hear that. That was kind of part of the reason why I came on. I was like, Nicole thinks I'm doing a good job, then I do. Yeah, I think you're crushing it. I think you're doing a great job. The other suggestion when I was reading your question that I was going to have, but it sounds like your job

might not allow for it. But honestly, unless you want to go to a specific person, and maybe it sounds like for this project you do, but for future projects, calling and doing a barter might be interesting. And I don't know if you have a big social following or if you play the guitar for a band and can promote, but it's just always something to keep in mind. You never know if you don't ask for a discount or for some sort of quid pro quo where you do something for the artist, let's say, and they give you a tattoo for free or they do a highly discounted rate or something like that. I just feel like everybody can barter. It's not old school. It's still alive and well. and i wish i did it more when i was younger

and i'm always surprised when i try how much i get actually hooked up from a basic hey what can we do for each other and help each other we both need these things yeah for sure i actually my first sleeve um my artist was also a guitar player and i like i was selling my guitars he's like yo i'll give you eight hours of tattoo time or whatever if you give me that guitar i was like yeah we'll do that so stuff like that happens yeah yeah you can do that obviously it uh with tattoo stuff it can get dice like obviously you don't go in and be like you know i i feel like tattoo artists get very you know uh which they should like offended if people go in like you know to an artist like a bang bang or something if someone went in there

like i can only spend 200 like they're gonna laugh at you like it's just um the way it is like they are part of the service industry and i think people should you know treat it that way with tips and all that stuff but yes i i agree especially like there's random stuff if you follow um tattoo artists um like i um my ex like she got tattooed and the the artist um needed like his house cleaned and like she just did that because that's like what she did for a job at the time anyway so it's just like she got free work done so you never know it's always like you said it's always worth uh checking out to see if you can, you know, hook each other up. So, yeah. For today's tip, you can take straight to the bank. When you're looking at that 15 percent of your spending plan that's going to the extras, you can absolutely divide that lump sum into

smaller percentages dedicated to your goals. For example, say that you were like Adam and you want to work towards something special, tattoos or something else. Make a sub savings account and contribute a recurring amount that falls within that 15% dedicated to the extras. Consider putting away one quarter of the money you're saving for extras, depending on how much that special something is going to cost you and when you have to have it. And you will be tatted up from head to toe before you know. Money Rehab is a production of iHeartMedia. I'm your host, Nicole Lappin. Our producers are Morgan Lavoie and Catherine Law. Money Rehab is edited and engineered by Brandon Dickert

with help from Josh Fisher. Executive producers are Mangesh Hatikader and Will Pearson. Huge thanks to the OG Money Rehab supervising producer, Michelle Lanz, for her pre-production and development work. And as always, thanks to you for finally investing in yourself so that you can get it together and get it all.