How Financial Coach Dr. Lynn Richardson Helped MC Lyte Triple Her Income
In case no one has told you yet, you are a business. So often, people make the mistake of believing that they can only treat their lives like a business if they are an entrepreneur or a business owner, not realizing that the mere fact that they exist in this world makes them an owned and operated business. And as such, everything you do can be written off as an expense and thus, add to your overall wealth.
At least, that's what Dr. Lynn Richardson will put you on game about.
MC Lyte and Financial Coach Lynn Richardson
The financial expert and life coach took the stage on Saturday afternoon (July 28) during a conversation orchestrated by P&G's My Black Is Beautiful in partnership with the National Underground Railroad Freedom Center and Greater Cincinnati Association of Black Journalists. Famed rapper and humanitarian MC Lyte took the stage as the event's keynote speaker, and revealed her seven-year friendship with Lynn, as well as the fact that they partnered together in their book, Your Man and Your Money: How to Get'em and How to Keep'em. The two met when MC was really lost about how to have her finances together and as her financial advisor, Lynn pulled her through, and even helped her triple her income in the process!
There, the two friends and collaborators talked all things financial literacy, being your own business, and entrepreneurial advancement. And xoNecole was there to collect all of the gems. Read on for more.
Apply the 10-10-30-50 Rule to Your Budget
While many of us out there who have dabbled or are experts in budgeting know the power of a good dose of the 50-20-30 rule, Lynn's modified 10-10-30-50 rule might be the key to unlocking a lot of our financial success. "The first 10 percent you tithe, the next 10 percent you save. Our grandmas taught us to save for a rainy day, but really, we have to save for a come up. That means, when we have the opportunity to invest in something, [we can invest]," Lynn explained. "When the stock market crashed in 2008, everyone was in a recession. Well, one of my sorors, and financial mentors, she had saved and had money that she could use to invest, and she did. When the stocks went down to 20 cents a share, she bought 100,000 shares. And when it went back up to $12 a share, she sold it."
"We have to save for a come up."
She continued, "The next 30 percent is cash. And cash is what we have to understand as entrepreneurs. People on this planet have figured out how they can go into the boardroom, create something that cost $2 that they can sell to us on Black Friday for $250 and make it feel like we have to have it. Having cash prevents you from having a spending addiction… The remaining 50 percent stays in your checking account to go to bills."
Use Only 30% of Your Income as Spending Money
When breaking down the 10-10-30-50 rule for budgeting, the 30 percent allocated to cash plays a very major role in your day to day spending. Unlike the 50 percent for your bills that stays in your checking account, the 30 percent is to act as cash that you carry around and takes care of everything, from your nail appointment to your groceries.
Some of us (especially those of us who have a spending addiction) might think that relying on 30 percent and carrying it around in cash isn't feasible. If you ask Lynn, you're thinking way too small. And those extra unnecessary expenses? You need to cut it.
"What happens is, we forget that we spend mindlessly. And it's not about not having the intelligence, it's us rejecting what the world says that we have to do with our money and make a decision. That's where I say women, especially women of color, we can be billionaires, but we cannot ignore the basic thing we learned in the first grade, and that's mathematics: 1 + 1 equals 2. And if your stuff adds up to 10, it will never get to 2. And we will always be trying to figure out how to make our money work and where is it going."
"Control that number, and we can control our wealth."
Take Advantage of Everyday Expenses During Tax Time
What many of us fail to realize is how much we stand to gain during tax time by writing off expenses and deducting properly. Lynn wants everyone to be empowered by the fact that simply by existing, they are a fully owned and operated business. This does not mean quitting your job, but for all intents and purposes, you are an entrepreneur, whether you realize it or not. Therefore, it's time you start deducting like it.
"If you have a business and your business makes $100,000, here's what happens to all of your income: first, you get to expense everything you use in your business. You get to expense your cell phone. You get to expense your mileage or your gas on your car. You get to expense your trips because when you go on trips - I don't care if it's a family trip or a vacation or a family reunion in Mississippi - you are actually on a business trip so you need to expense that. Once you expense everything, they'll say, 'Those expenses are $65,000, there's $35,000 left over. That's the amount you get taxed on.'"
Lynn also suggested that wealthy people don't necessarily have more money, they just know how to get their money back. As an entrepreneur, it's crucial that we view ourselves as a business and view everything we do as a potential expense to be a tax write off.
Invest in Strategic Multiple Streams of Income
For most people, the secret to acquiring wealth is never allowing one hat to be your only hat and by that I mean, having multiple streams of income. Along with cultivating different avenues where more money can easily travel, it is important to develop strategy when diversifying your income as well, which is also where a strong personal brand comes into play. Whether it's a brick and mortar, selling or doing hair, repurposing vintage clothes, or mixing up your own beauty line, the opportunities are there, you just have to take it. "Multiple streams of income give us the ability to extinguish the fiery darts of an unstable economy. So, if one of your businesses is no longer popular, you got seven more to look at," Lynn added.
"We've got to have multiple streams of income, but we also gotta have strategy."
It is important to diversify your income in order to maximize your wealth potential, but it is also important to know that while more money is great to have, having the financial literacy to navigate your finances adeptly and strategically is ultimately the golden rule in acquiring wealth and breaking ground for more black women business owners, entrepreneurs, and millionaires. "Black women, we are the most educated people on the planet. There is no group of people who have more degrees than black women," Lynn noted. "We have PhD's, Master's degrees, and MBA's. But one of the things that sits with me a lot, is why are we not as wealthy as our education says? We are last on the totem pole when it comes to wealth."
And it's time that changes.
Featured image by Kathy Hutchins / Shutterstock.com
- 042: Running Your Family Like a Business and Getting on Top of Life ›
- Why I Run My Household Like a Business (and You Should Too ... ›
- This column will change your life: running your family like a business ... ›
- The Personal Business Plan: A Blueprint for Running Your Life ... ›
- Run Your Life like a Business – Thomas Chen – Medium ›
- Why To Run Your Life, Like a Business ›
- 7 Ways To Run Your Life Like A Business - AskMen ›
- Why you should run your life like a business ~ Get Rich Slowly ›
- Here's What Happened When I Started Running My Life Like a ... ›
ItGirl 100 Honors Black Women Who Create Culture & Put On For Their Cities
As they say, create the change you want to see in this world, besties. That’s why xoNecole linked up with Hyundai for the inaugural ItGirl 100 List, a celebration of 100 Genzennial women who aren’t afraid to pull up their own seats to the table. Across regions and industries, these women embody the essence of discovering self-value through purpose, honey! They're fierce, they’re ultra-creative, and we know they make their cities proud.
VIEW THE FULL ITGIRL 100 LIST HERE.
Don’t forget to also check out the ItGirl Directory, featuring 50 Black-woman-owned marketing and branding agencies, photographers and videographers, publicists, and more.
THE ITGIRL MEMO
I. An ItGirl puts on for her city and masters her self-worth through purpose.
II. An ItGirl celebrates all the things that make her unique.
III. An ItGirl empowers others to become the best versions of themselves.
IV. An ItGirl leads by example, inspiring others through her actions and integrity.
V. An ItGirl paves the way for authenticity and diversity in all aspects of life.
VI. An ItGirl uses the power of her voice to advocate for positive change in the world.
Let’s make things inbox official! Sign up for the xoNecole newsletter for daily love, wellness, career, and exclusive content delivered straight to your inbox.
Less & Less Of Us Have Close Friends These Days. Why Is That?
German philosopher Friedrich Nietzsche once said, “It is not a lack of love, but a lack of friendship that makes unhappy marriages.” At close to two decades of working with married couples, I agree with this man 1000 percent. It’s actually the main motivation for why I once penned, “Are You Sure You're Actually FRIENDS With Your Spouse?” because, the reality is, if you’re not friends with the person who you vowed to share every aspect of your life with, for the rest of your life, it’s going to be very difficult (if not damn near impossible) to honor that level of commitment. Without question, I will now and forever die on the hill that if you like your partner, you can make it through the not-so-in-love-right-now moments. Vice versa? Eh…not so much.
A basis for why I feel this way? Another quote immediately comes to mind. Famed author Jane Austen once wrote: “There is nothing I would not do for those who are really my friends. I have no notion of loving people by halves, it is not my nature.” You know, back when I also wrote “10 Things You Should Absolutely Expect From Your Friendships” for the platform, I shared that some of the traits of a friend — a real friend — include loyalty, honesty and compassion. And if you can’t say that your spouse is this way (as they say the same thing about you), chile…what is y’all doin’ over there?
So, why am I talking about marriage when this article is supposed to be about friendship? It’s because, something that life has taught me, kinda sorta the hard way, is we should vet potential friends — especially close friends — almost like we would a spouse.
And if you keep reading, I think you’ll get why I framed the intro in the way that I did.
Why Friendships Are Still Hella Essential
GiphyOkay, so before I get into why it seems that people have fewer friends than they ever had before, let me just say that, even as an ambivert who enjoys my own company and has absolutely no problem with being alone a good amount of the time, every personality type needs friends. That’s not just my opinion;science makes it a fact. Not only do studies support thathealthy friendships help us to feel more satisfied with our lives, but they can also reduce our chances of experiencing depression, stress, and anxiety and they increase longevity overall.
This is why — without going too deep because it’s kind of another topic for another time — it’s important to not allow past hurts and disappointments from former friends (or folks you thought were your friends) to cause you to build up walls as you declare that you don’t need anyone. When you do that, all you’re really doing is working against your own health and well-being. The saying that “no man (or woman) is an island”? It is absolutely true.
That said, even if it’s just a couple of people, make sure that you’ve got individuals in your life who you can call a friend and, in turn, they can say the very same thing about you, okay?
Are All of Those People Your Actual Friends? Or Do You Just Happen to Know a Lot of Folks?
GiphyAight but what if you happen to be someone who swings on the other side of few? Meaning, if someone were to ask you how many friends you had, you’d quickly declare that you’ve got too many to count. Listen, not to patronize or anything yet, but whenever I hear folks (especially if they are over 35) say something along those lines, it takes me back to high school — a time when so many of us thought that so long as we knew a ton of folks and/or we were popular, clearly, we had many friends.
Wisdom and pure ole’ dealing with humans on a consistent basis will teach you that an article that I wrote a few years back for the platform has a title that is spot-on: “According To Experts, We Only Have A Few Friends — Here's Why.” According to it, the average American (based on a survey that was conducted) has somewhere around 16 friends. Oh, but wait. Last fall, I wrote another article for the platform entitled, “What's The 'Five Friendship Theory' All About?” According to it, if you’re someone who takes the word “friend” and the responsibility that comes along with it very seriously and quite literally, as an adult, you can probably only maintain about five close friendships.
Why? Well, that brings in another article that I once wrote: “Life Taught Me That True Friendships Are 'Inconvenient.'” Chile, I don’t know about y’all but my friends know that if I call you that, you can call me in the middle of the night, and you can have money towards your rent (I’m not your mama but we all have hard times sometimes) and I’m gonna have your back in a way where you’ll wonder where you stop and I start — and no, I don’t have a lot of bandwidth for a ton of those people.
Okay, but what if you’re someone who is like, “I know that I have more than 16 and definitely more than five friends, no question”? The next thing that I would encourage you to explore is a theory by Aristotle (check out “According To Aristotle, We Need ‘Utility’, ‘Pleasure’ & ‘Good’ Friends”). Without even realizing it, many of us have people who we use the word “friend” for when…it’s kind of like how social media apps say “friend”: we’re familiar with one another and enjoy some of the same things, we might even have some of the same goals; at the same time, though, we’re not “all-encompassing friends.” We just get along really well at work (utility friends) or like to go to brunch at the same spots sometimes (pleasure friends).
Taking all of this into account, are you sure that you have a ton of actual friends? Or do you just happen to know a lot of people and you use that word for the lack of having another?
And that brings me to my next point.
There’s A LOT of Space Between “Friend” and “Enemy”
GiphyIf you read a lot of my friendship content, something that you will notice me saying quite a bit is that there is quite a bit of space between friend and enemy. It needs to be mentioned, as often as possible, because there are some people who get offended if you don’t consider them to be a friend — and that is unfortunate. I say that because the conclusion shouldn’t automatically be that they are your enemy just because “friend” isn’t what immediately comes to your mind.
They can be an acquaintance. They can be “cool people.” There is someone in my life who, while we’re not friends in the traditional sense, we are each other’s confidant; years ago, we agreed that we would be the place to tell each other whatever and it would stay between us — that is the main purpose that we serve in each other’s lives. Some people, you may consider to be spiritual family in the sense that you care for them and have some deeply profound things in common and still, they are not exactly a friend (I mean, a lot of blood relatives aren’t “friends” with each other).
All I’m trying to say here is we’re all too old now to only put folks in two boxes when it comes to this particular relational dynamic: friend or enemy. So, take some time out to seriously reflect on what you consider the various people in your life to be. I can promise you from personal experience that the sooner you know and the clearer you are, the easier it will be on everybody — because needs and expectations will be clear to you (and them once you articulate them) too.
What Got Folks to Having Less Friends? The Pandemic Plays a Significant Part.
GiphySo finally on to what inspired this piece to begin with. A part of it was an article that was published last year by Big Think entitled, “Americans more than ever have no friends. Here are 5 steps to make more friends.” Another was something that The New Yorker published back in 2021; it’s entitled “What COVID did to friendship.” Y’all don’t have enough time and I don’t have enough space to get into the fact that, just because the media may be talking about it less, that doesn’t mean that we’re not still in a pandemic.
In fact,one article stated my thoughts on it quite well when it said, “The real question, then, is not whether COVID is still a pandemic, but how much COVID illness and death are we willing to accept?” SMDH. And one of the things that has come with experiencing COVID is an interesting type of PTSD: detachment. There are plenty of articles out here to support the fact that my saying that is not merely my opinion.
Even according to the American Psychological Association, loneliness damn near skyrocketed, especially during lockdown and, unfortunately, a lot of people have not recovered from it. That’s why it did not surprise me at all when I read that more than ever, many people do not consider anyone to be a best friend; fewer people are relying on friends for any type of real support, and there is a semi-steady decline in people having friends, especially quality friendships, overall.
In fact, as far as close friends go, currently, close to 50 percent of Americans say that they only have three or fewer, and a relevant contributor to that was what the pandemic revealed as far as people’s proactive participation in other individuals’ lives (I actually read that young women were the ones who lost touch with friends during the peak of the pandemic the most). I also thought it was interesting that some studies cite that 12 percent of Americans say that they don’t have any friends at all.
Is the pandemic the only cause? No. So are things like people working more hours and spending more time online than they probably should (which also increased due to the pandemic, though). To that, Teen Vogue once published, “Social Media Is Impacting IRL Friendships” and Healthline once published, “Social Media Is Killing Your Friendships.” Then we also have to factor in having families of our own which can also take up a lot of time, and that sometimes can cause us to forget to nurture our friendships; so, before you know it, they fade to black. Not due to a fallout or anything, just…life.
And all of this? Some people are saying that it has led to what is known as a “friendship recession.” A huge flag about that is there are reports that a drop in close friends can cultivate a type of loneliness that is just as health hazardous as smoking a whopping 15 cigarettes a day. Not good, y’all. Not. Good.
Quality over Quantity Is Key. Just Make Sure That You Have a Friend or Two.
GiphyOkay, so what is my overall point? That’s a fair question. Just like sometimes “life life-ing” can make us forget to tend to our friendships, if you don’t stumble across content like this, you might not even realize that you’re feeling mentally stressed, emotionally strained, or super isolated and it’s all because you need to prioritize your friendships — because your mind, body, and spirit need them. Again, science has proved it.
At the same time, if, like a client of mine, you find yourself getting a little bit paranoid because you have noticed that over the past several years, your close friend count has been far less than what it used to be, this article proves that you are absolutely not (pardon the pun) alone. Honestly, there’s nothing wrong with having a very small circle of friends because quality is gonna beat out quantity every time; you just need to assess when it happened and why so that you can be sure that you are choosing it to play out that way and it’s not due to some underlying cause that you hadn’t taken into consideration — until now.
An Italian priest by the name of Thomas Aquinas once said, “The happy man in this life needs friends.” Even if it’s just one or two people, please make sure that you have folks who aren’t just your friend but your very close friend. You need them. They need you.
Everyone else, figure out where they fall and nurture accordingly. Life is a lot. We all get by with the help of our friends. Real talk, y’all. Thank goodness for them.
Let’s make things inbox official! Sign up for the xoNecole newsletter for daily love, wellness, career, and exclusive content delivered straight to your inbox.
Featured image by jose carlos cerdeno martinez/Getty Images