Financial Pop Star and Creator of Mrs. Dow Jones and Finance is Cool, Haley Sacks, sits down with Yahoo Finance Live to give advice on how to budget through inflation and advantages of investing smart starting at a young age.
HALEY SACKS: What's up, rich people? It's me, Haley. And I'm a financial pop star. When you keep your money out of the market, it won't grow. And then because of inflation, you're actually going to be able to buy less with it. Need to pick a credit card? Stop scrolling. Here are the three things to consider when choosing one.
Choosing between buying and renting is as confusing as Ben's back tattoo. Don't start investing until you know this one fact. Rich people always pay themselves first. They know that inflation steals your wealth. That's why you have to invest.
RACHELLE AKUFFO: Well, that is financial pop star Haley Sacks, a.k.a. Mrs. Dow Jones. Now, she has over 300,000 followers across her social media platforms, where she posts important financial topics for the modern day adult. She's also the founder of a financial education platform called Finance is Cool. And Haley Sacks joins us now.
Haley, great to have you on the show. I have to ask you about that nickname in just a second. But obviously, right now, we're starting to see some signs of economic recovery. But the prices are still high. So what are some tips that you have specifically for young adults, trying to minimize the impact of inflation?
HALEY SACKS: Thank you so much for having me. I think inflation is top of mind for everyone. And there are some really easy ways to make it not that big of a deal. Obviously, it's affecting everyone, but if you are able to, first and foremost, take control of your spending, it's really going to ease the effects of inflation, right? You don't want to panic. You want to stay calm and make sure that you know what's coming in and out of your budget every single month.
That way, you can free up a little bit of extra money, hopefully, to move towards your goals because we know very well that the only way to combat inflation, really, is by growing your money into wealth and the stock market. So my whole goal for young people is for them to be able to invest, despite this economic climate.
AKIKO FUJITA: Haley, it's Akiko here. Before we move on to the second question, I do have to ask you about your name, Mrs. Dow Jones. Why Mrs.? Where did you get that?
HALEY SACKS: I chose Mrs. because I am married to my financial future. I do not have to make any decisions based on fear or because I cannot support myself. I have financial stability. And that gives me freedom to choose how I live my life. And I think that for women especially, that's so important. And that is why I chose Mrs. Dow Jones because I am married to my wealth that is compounded currently in the stock market.
AKIKO FUJITA: OK, so let's talk about investing. I mean, it's intimidating for a lot of people who haven't done it before. Talk to us about your financial literacy journey and what particularly you say to people who are still pretty young, who are saying like, why is it important to be invested so early?
HALEY SACKS: The time value of money, right? The biggest-- when I started my journey, the first thing that I learned about was compound interest. And I was-- I've always been very into Warren Buffett. And so I was reading one of his books. And, you know, it was all about compound interest.
And I was like, why is there so much about compound interest? It's so boring. I get it, compounding. And then I was like, oh. I get why they're making it such a big deal because this is sort of, like, the secret to getting rich, right? Like, you put your money in earlier. Then it will actually have time to snowball and build on itself and get bigger and bigger. So, super important to get your money in the market ASAP.
And we just launched our first investing course, Investing 101. It's called Let's Invest. It's doing super well. And it's just been really awesome to bring my entertainment background to the world of finance because, obviously, it can be pretty stiff. And it makes it a lot easier for people to get educated if it's done in a way that they actually want to learn.
RACHELLE AKUFFO: And it's tough because there can be this sort of information overload, people start panicking. Sort of wondering, how they should be vetting their financial literacy experts, especially young people. I mean, you're scrolling on TikTok. You see someone telling you, do this, someone else saying, doing that. How should people determine who they should actually listen to right now?
HALEY SACKS: First and foremost, I always look to see if people have press behind them. Like, I've been featured in "The New York Times" and "The Wall Street Journal." Of course, I'm on Yahoo Finance, CNBC. So I think that when traditional finance is behind you, it makes it clear that what you're saying is actually worthwhile.
And then, obviously, run the other way if anyone tells you that you can get rich quick. You should be following people's advice that seems almost boring. Like, financial-- really, growing wealth in the stock market is a long-term game. And it shouldn't be that exciting. And so if you find anyone on social media that's really selling you these quick fixes, obviously, that's going to be someone that is probably not really worth listening to.
But yeah, we have these great investing tips for beginners, which is fabulous. I think it's so hard to get started, but when you break it down like this, it makes it so much more manageable. And something I tell people all the time is, like, knowing what you're investing towards, how important that really is, because when you have a narrative in your mind for why you are doing something, it motivates you so much more.
AKIKO FUJITA: So, Haley, let's switch things up a bit here. We want to play a game, Ask a Finance Influencer. We're going to give you a topic or a scenario. You give us a thumbs up, thumbs down and a rapid fire answer about how you feel. You good?
HALEY SACKS: Fabulous, yes.
AKIKO FUJITA: OK, first one, buy now, pay later. Why thumbs down?
HALEY SACKS: Thumbs down because it creates bad spending habits and will get you into debt.
RACHELLE AKUFFO: All right, I'm going to go with mass firing employees over Zoom.
HALEY SACKS: Especially if the CEO is crying.
AKIKO FUJITA: Yes, there are ways to do this, right? Made a lot of headlines. One that we've heard from a lot of investors-- having exposure to crypto in your portfolio.
HALEY SACKS: I think that having diversification and taking on high-risk investments is a great thing, but you just have to make sure that you have exposure to safer bets as well so that you're not making yourself too vulnerable to the ups and downs.
RACHELLE AKUFFO: Here's one that's a test of time-- splitting the check evenly at dinner, even though all you had was an appetizer.
HALEY SACKS: Ooh, that's going to be no from me, dog. I'm all about financial transparency with your friends, with who you're dating. So if you're ever in a situation that makes you uncomfortable, speak up.
AKIKO FUJITA: And here's one that I think a lot of people can relate to-- wedding season in full swing, spending money you don't have on the bachelor or bachelorette party.
HALEY SACKS: I can't even show my face. I put my thumbs down because this makes me so upset. I hate the pressure around weddings. And I think that definitely a no-no. Say no to Tulum and say yes to your 401(k).
RACHELLE AKUFFO: Well, there you go. Mrs. Dow Jones there, married to her financial future, Haley Sacks, it's been fantastic having you on. Thanks for joining us today.
HALEY SACKS: Thank you. Have a good one.