Money Pro Tips: A Q&A with Licensed Adviser Patrick Bell
Each week, we ask a personal finance or business expert for their money pro tips. This week, we talked to Patrick Bell, a licensed adviser. Here's a look at how he manages his finances and his best advice for others.
Last Thing You Resisted Buying
Q: What was the last thing you resisted buying?
A: A candy bar at lunch.
Q: How did you resist it?
A: I decided I can save my money (and be healthy) by having a snack in the office instead.
Last Thing You Splurged On
Q: What was the last thing you splurged on?
A: A massage.
Q: Why’d you OK the splurge?
A: Sometimes you need to treat yourself!
Current Money Goal
Q: What’s your current money goal?
A: Save for retirement.
Q: How are you working toward it?
A: Minimize spending and increase contributions to my 401(k). I am also researching additional accounts—high-interest savings and an individual retirement account (IRA) are two options.
Money Thing You’re Most Proud Of
Q: What money-related achievement are you most proud of?
A: Paying my own bills, living on my own, accruing an acceptable emergency fund, and still saving money only two years out of college.
No. 1 Money Tip You Give to People
Q: What’s your number one money tip?
A: Being frugal doesn’t mean you need to be cheap. Spend your money on the right things. Also, if your parents let you live at home after college, do it!
What Would You Do with a $1 Million Windfall?
Q: What would you do if you received a $1 million windfall?
A: Pay my parents back for helping me through school, then put the rest away for retirement. I’d invest some and save some.
How Do You Budget?
Q: How do you budget?
A: I have a detailed budget of my monthly expenses, including when they need to be paid. I also set a specific amount I will put into savings each month, and I stick to it. Anything left over is spending money. For certain months (like around the holidays or for vacation), I adjust accordingly. I also tracked my spending to the dollar for a few months to understand my spending habits and see what I could cut back on.
Best Money You Ever Spent
Q: What’s the best money you ever spent?
A: Grad school. Still ongoing but will be worth it in the future.
Worst Money You Ever Spent
Q: What’s the worst money you ever spent?
A: Valentine's Day dinner four years ago. Tried out a newly opened restaurant with no reviews yet, but I learned very quickly that’s not the best night to experiment with new restaurants. Cold food, unattentive service, and a hefty bill. But at least I have a story to tell!
Credit or Debit?
Q: Do you prefer credit or debit?
A: Ideally cash. Otherwise credit to earn points. Plus, I don’t like using my debit card (It’s a lot worse to have your debit card stolen than your credit card).
Most Common Question People Ask You About Money
Q: What’s the most common question people ask you about money?
A: How do you afford to live in New York City?
Q: What’s your answer to that?
A: I was lucky enough to be able to live at home for close to a year, so I was able to save a lot of money. I spent a few months building a budget to understand what I could afford. Now I only spend money where I need to and take advantage of what is free (snacks at the office is a big plus and a good example of this). I am frugal, but I’m not afraid to spend money on enjoyment. But I pick and choose when, where, and how. I wouldn’t say I am cheap or a stickler with money. I just try to make smart choices.
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Description: A person reading financial tips from Patrick Bell, a licensed adviser, reflecting on their own money management strategies.
