march-- "how to earn more and save better"
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HOW TO
EARNMORE &SAVEBETTER
Katie Dunsworth, cofounder of financial-advising
group the Smart Cookies, tells MARCH about how she
took control of her finances—and shares top tips for
women looking to do the same. BY LISA RYAN
MARCH / APRIL 2011 | marchmagazineonline.com 57
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58 marchmagazineonline.com | MARCH / APRIL 2011
Dunsworth caught a
March 2006 episode of The Oprah Winfrey
Show that focused on
personal finance and
o ered options for debt
relief. Winfrey urged
women to be honest about the kind of life-
style they could a ord. Inspired by the epi-
sode, Dunsworth and a group of girl-
friends—all of whom were successful
professionally but su ering financially—
banded together to form a money group to
dissect and transform their debt problems.
Dunsworth was joined by Robyn Gunn,who was in the midst of a messy divorce that
resulted in $12,000 of debt; Andrea Baxter,
who was facing a large mortgage with no
savings and upwards of $18,000 in con-
sumer debt; Angela Self, who had been let-
ting her boyfriend handle their finances and
yearned to tackle her debt problem inde-
pendently; and Sandra Hanna, who had
steamrolled through $10,000 in savings and
was faced with hefty credit-card debt.
“It started almost as a support group,”
Dunsworth says. “We were all in debt andliving beyond our means.”
Collectively, the women were facing
$48,000 of debt. They christened them-
selves the Smart Cookies and began to inves-
tigate ways to quickly pay o their respective
debt. They also began to explore strategies
for attracting more money while maximiz-
ing their current income: Dunsworth sold
unnecessary belongings, including her wed-
ding dress, car, and old furniture; Gunn
landed a new, higher-paying job; Hanna
started walking dogs for cash, sold her car,
and negotiated a $10,000 raise. Each of theCookies also explored and pursued freelance
opportunities in their respective fields.
Just one year after forming their money
group, the women were able to pay o their
total debt and earn an extra combined
income of $140,000 .
The Cookies wrote Winfrey a letter
about their success, and they were invited
to appear on The Oprah Winfrey Show in
January 2007. The Oprah appearance sky-
rocketed them to financial fame. Now, they
host their own television program on the W Network. They’ve also brokered a book
deal; The Smart Cookies’ Guide to Making
More Dough was released in Canada and
the US in October 2008, followed by the
release of The Smart Cookies’ Guide to Cou-
ples and Money in January 2010. With
100,000 books sold worldwide, the Cook-
ies have been featured by more than 300
television, radio, and print outlets, includ-
ing The New York Times, MSNBC, and
Money Magazine.
Their philosophy on money manage-
ment, which emphasizes living large forless, resonates with women worldwide.
“People like the message we have,” Dun-
sworth says. “We recognize that quality
of life is important. If you love buying
Manolo Blahnik shoes, we’re going to
help you do that. It just means you’re
going to have to give up on other things
on your life. Our goal is to help you get
clear on what kind of life you want to be
leading and how you can achieve that.”
N PAPER, KATIE DUNSWORTH WASA SUCCESS BY THE AGE OF 24. She’d scored a prestigious public relations position with a
renowned company, and was quickly working her way up the cor-
porate ladder. Though she enjoyed the paycheck, Dunsworth says
something was missing from her life. “I felt like I had sacrificed
being young,” she says. “I began spending a lot on trying to create
this lifestyle that I thought was fabulous in order to compensate.”
Dunsworth began to funnel her hard-earned income into lavish
shopping sprees and expensive evenings out. Slowly but surely,
she found herself drowning in an unexpected sea of debt.
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MARCH / APRIL 2011 | marchmagazineonline.com 59
MARCH asked Dunsworth toshare the Smart Cookies’best bits of financial advice.Here’s what she had to say:
THINK POSITIVELY When it comes to cutting spending, the
Smart Cookies first and foremost encour-
age women to adjust their attitudes. “Most
people I see that are in debt have a woe-is-
me attitude; though, of course, in a lot of
cases, their debt does stem from challeng-
ing circumstances,” Dunsworth says. “But if
you embrace money with a can-do attitude,
you’ll create a positive momentum for your
new financial life.” SMART TIP: Each time
you reach a debt-shrinking milestone, treat
yourself to a small luxury—like a glass of
champagne.
GET CREATIVEThe Smart Cookies suggest that you take a
long, hard look at your everyday spending
and get creative about saving. First, exam-
ine your biggest and most necessary
expenses. It’s important to familiarize
yourself with these figures and to under-
stand exactly where your money goes each
month. Once you know your expenses
inside and out, start investigating where
you can cut back. “We challenge everyone
to go out and be creative,” Dunsworth says.
“Ask yourself how you can be lowering your
expenses. If it’s student loans, see if you cango out and get a smaller rate.”
Cut out unnecessary expenses, like pre-
mium cable or electricity costs, but don’t
sacrifice the things that you deem necessary
for a happy existence. If spa treatments are
your favorite indulgence, don’t ditch your
monthly facial. Instead, the Smart Cookies
recommend cutting back in other areas of
spending that you deem less necessary.
Compromise is key: perhaps a visit to the
masseuse is more important than going out
to lunch each day. SMART TIP: Use an
online budget calculator to keep track of your finances, like those at mint.com or
kiplinger.com/tools/budget.
BUILD A NETWORK
The job market isn’t as secure as it once
was. Rather than o ering new opportuni-
ties for full-time employment, many busi-
nesses are passing responsibilities to con-
tract workers.
Each of the Cookies has taken advantage
of freelance opportunities to supplement
their respective income. Dunsworth and
Baxter landed public relations and market-
ing contracts for various businesses, while
Gunn has used contacts made through her
position as a social worker to find addi-
tional work as an adoption-study socialworker.
“I think freelance work is fabulous,”
Dunsworth says. “It allows workers the
freedom to dip their toes in several di er-
ent fields or companies at once.” However,
according to the Smart Cookies, a lot of
women are unsure of how to attain these
freelance positions, and many don’t know
how to market themselves appropriately.
“People tend to have a hard time selling
themselves,” she says.
The Smart Cookies first recommend
beefing up your personal network. Investi-gate and attend networking events in your
area or join social groups; go to industry
events to familiarize yourself with your
industry and get your name out there. Most
importantly, have the confidence to ask forwhat you want.
The Cookies have posted their respec-
tive freelance services on sites like Elance
and Craigslist, in addition to making
strong e orts in networking in the busi-
ness community and setting up referral
programs for anyone who helps them
attain freelance work.
“Be upfront. Tell people that you’re look-
ing for freelance work and ask them to let
you know if they hear of any opportunities,”
Dunsworth says.
Dunsworth now owns a public relationsfirm and says that she continues to utilize a
similar networking approach . “Even to this
SMART COOKIES Katie Dunsworth, second
from left, with the four other Smart Cookies.
“IF YOU EMBRACE MONEY WITH A CAN-DO
ATTITUDE, YOU’LL CREATE POSITIVE
MOMENTUM FOR YOUR NEW FINANCIAL LIFE.”
KATIE DUNSWORTH, COFOUNDER OF THE SMART COOKIES
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