Archives for April 2014

I Am Robert Farrington, Founder Of The College Investor, And This Is How I Work

Robert Farrington

Over the last couple months I have interviewed a growing number of top bloggers and writers to get their input on personal finance (e.g., the founders of Budgets Are Sexy, The Broke And Beautiful Life, Frugal Rules, Debt Roundup, and Modest Money). Today, I’m excited to share with you another terrific interview with one of the top personal finance writers on the Internet.

Robert Farrington is the owner and creator of The College Investor. The site ranks near the top 50,000 websites in the world! He has a Master in Business Administration and has been writing about personal finance since 2009. Robert specializes in giving top-notch advice to young adults, who are beginning their financial journey. Here’s my interview with him. Thanks again, Robert!

1. What inspired you to begin The College Investor?

I started The College Investor as I was wrapping up college for a few of reasons:

I was bored
I was passionate about investing and personal finance
I was tired of hearing the crazy things that other people were doing and wanted to help people get off on the best financial footing possible out of school

When I began, I really had no idea what I was doing, and it was a pretty pathetic site. I thought, “Hey, I could just post my random thoughts and people would read it.” Well, nobody did. Good thing I was passionate — it took about 2 years before I started gaining any real traction.

2. How did people react when you first started blogging? How long have you been blogging?

I started The College Investor, which was my first blog, in 2009 – so that makes it over 4 years old. When I first started, the only person that knew about it was my then girlfriend (now wife). She was supportive, but like me, didn’t think it would become anything close to what we have today.

I started it as a hobby, and she viewed it as a hobby. It’s not to say that she didn’t get annoyed with me sometimes when I was up late writing or doing some technical stuff. But the fun thing now is that she has amazing ideas, and some of the most popular articles on The College Investor were hers. Now she’s pretty invested in it.

3. What was your web and tech experience before starting the site?

*Screenshot of The College Investor Homepage*

Before starting The College Investor, I actually had another site – San Diego Estate Sales. During college I side-hustled and did estate sales for others. I built a pretty simple website that worked as a lead magnet for me, even though I had no idea it was called that.

When it came to design and coding, I had no experience and I was pretty bad at it. I used a free theme and really basic hosting. You can see from my 4th Anniversary post for the iterations that the site has been through. Now, I have a professional designer that helps with that stuff, and various technical partners for the tech expertise.

4. What advice would you give to those looking to start their own site?

When I launched The College Investor, I had no real plan, defined goals, or structure. With my other sites, I put together strategic launch plans to kick it off with a bang. For The College Investor, it took over a year before I had 1,000 visitors in one month. Then, take my latest project at Beat the Nine to Five, and I had 1,000 visitors on launch day.

If you’re looking to start a website, you need a launch plan. Keep it simple, but consider a big launch post, have content on your site, try to get a mailing list before you launch, and get other bloggers involved. This will make your journey a lot more fun because you know people are reading your stuff from Day 1.

5. How do you make money from your site? Where does most of your revenue come from?

I make money from my site in a variety of ways. The biggest way is advertising – either direct advertising, CPM ads, and affiliate advertising. I’ve also branched out and started offering an eCourse to get started investing – my Investing 101 Course. Most of my revenue is advertising, but I’m working on growing my course revenues this year.

6. What do you think you’ve learned from your readers and fans?

I’ve learned a ton from my readers over the years. This year, I started surveying my audience to find out what they want more of. I asked 3 open-ended questions and got over 50 responses. It was a huge eye opener for me to learn what my audience struggles with and how I can help.

7. How can someone in lower incomes overcome financial hurdles and prosper?

I’m a big believer that everyone can side hustle and improve their financial status. I’ve been side hustling since high school and it’s been a great source of income for me. You are the only determining factor of your destiny – if you work hard and put in the effort, you’ll get the financial reward, as well.

8. Who are your financial role models?

I really like Ramit Sethi’s style when it comes to accountability, honesty, and what to focus on. I follow his school of thought about earning more, and not sweating the small stuff. I also enjoy Pat Flynn from a transparency perspective. It’s so great to share in his successes and struggles.

9. What personal finance sites do you read?

I don’t read as many sites as I used to, but I still get to Financial Samurai, Budgets are Sexy, I Will Teach You To Be Rich, and more each week. I also check out Rockstar Finance to see the best of the PF interwebs.

I’m actually into listening more to podcasts than reading. I regularly listen to Smart Passive Income, Entrepreneur on Fire, Side Hustle Series, Good Financial Cents, The New Business Podcast, This Is Your Life, and Online Marketing Made Easy.

10. What else would you care to share with the readers of Frugaling?

Blogging today is one of the most important aspects of media. People don’t just want the news anymore. They want perspective, and that’s where everyone has a story and perspective to share. There are hundreds of personal finance blogs, but that’s okay because my style is different than your style – and people relate not just to the facts, but to how they are presented.

It is important, however, to remember that this is a business or a hobby. Treat it as whichever you want, but realize the income is also directly related to how you treat it.

If you’re getting started, make sure you network with others, ask questions, and build relationships – just like you would with any other hobby or business. Working online doesn’t have to be lonely!

Want to read more interviews like this one? Read the entire interview series here!

Love is a click away, but is it worth paying for online dating?

By Frugaling 4 Comments

Online dating: From stigma to commonplace

We sat in the high school parking lot, and I laughed every now and then — awkwardly I may add. David Gray blasted over the car speakers, and I squirmed with tension and anxiety. My hands felt sweaty, and I remember rubbing them on my pants to dry them off. After an impossibly long period of time — my mind spinning with questions — I leaned over and had my first kiss.

Dating was different back then. When I graduated high school in 2007, love and like were simple, in-person concepts. That was one month prior to Apple’s famous iPhone release. After that, the Internet was accessible everywhere. Everything completed IRL (“In Real Life”) could be duplicated online — a mirror.

Online dating started to boom in popularity and I heard news/rumors about this growing trend. Honestly, it seemed like it was only for old farts and socially awkward people. Dating seemed effortless in college. In a way, I thought you had to fail at “real life” to turn to online dating.

I had a huge bias: Why would anybody turn to online dating?

This is more popular than I thought

11% of American adults…have used online dating sites or mobile dating apps (Pew Internet Research)

By the time I graduated college, online dating was much less stigmatized. In fact, a shocking number of people have tried it. Based on U.S. Census numbers, that equates to about 33 million people in America who’ve tried online dating. TechCrunch reported that, “38% of people who are ‘single and looking’ have used a dating site or app.”

After I graduated college and was suddenly single, I decided to start my first profile. I was embarrassed to tell anyone. Uploading my pictures and customizing that profile made it real. I tried to represent myself as best as I could, but always felt askew — was this really me? Off and on throughout the years I joined dating sites and actually had some entertaining meetups. Slowly, my stigma began to disappear. Despite all this acceptance, I’ve never paid for online dating.

Should/would you pay for online dating?

Free dating sites have exploded in popularity among Millennials, and the options are plentiful. From swipe-to-date apps like Tinder to the question-and-match power of OkCupid, these sites are exceptionally popular with younger generations. OkCupid offers one of the largest populations of potential matches — all free. People can try out the site, message freely, and quit whenever they want. The intention and commitment is minimal, and the potential is great.

Stalwart dating sites such as Match and eHarmony charge monthly fees for access/communication with other prospective daters. Match.com offers an easy, free signup where you can look at matches, but you can’t send messages or get a phone number until you pay the fee. It costs about $35.99 per month to use this service. eHarmony provides a similar dating and match service for potential compatibility. The site offers a detailed personality inventory to gauge your needs in a potential match. To access these features, you’re looking at $59.95 per month. At these prices, it’s hard not to feel like they’re gauging your wallet to gauge your compatibility.

To pay $36 or $60 a month for an opportunity to meet someone is a scary amount of money — especially if you stay online for multiple months. But sometimes it’s worth the price. Paying for online dating sites is a proof of your intention and seriousness to other people. That monthly fee suggests you’re likely desiring a committed relationship. Likewise, that purpose attracts a community of people that can be hard to come by on free dating sites.

Unfortunately, the for-pay websites often use shady tactics to attract visitors and hook people with longer-term contracts. For instance, Match.com doesn’t show you who can receive messages. And eHarmony forces you to take a survey that takes about 30-40 minutes, suggests you’ll see your “matches,” but then limits how much of the profiles can be seen without a price. These tricky business practices scare me, and they should scare your budget.

When it comes to paying for online dating, I can’t imagine spending the money. Maybe I’ll eat my words someday, but I don’t want to spend money on something that’s available for free elsewhere — regardless of the overall intention among members. I’m excited that people are interested and open to meeting through new mediums, but I question the expense.

Would you ever pay for online dating? Have you noticed any difference between free or subscription-based sites?

Would You Honestly Answer This Debt Question?

By Frugaling 11 Comments

Fork in the road flickr creative commons debt question — *Photo: flickr/sacks08*

The first-year anniversary of Frugaling.org is right around the corner. It’s been over 11 months since I started this journey and a tremendous amount has changed. Today, I’m taking time to reflect on what started it all.

How much debt do you have?

When I was asked this debt question, it seemed invasive and prosecutorial. The consequences were unfathomable and unknown. I remember feeling awkward, heavy, and embarrassed. I knew the number right off the top of my head, but saying it aloud made the situation more real. The answer to that question was personal and private. I was almost ready to react in defense of my debt!

I briefly thought, “I’m a student, I need this debt! It’s necessary! Look at other people! Hell, it’s an investment in my future career!” Can’t you read and feel the dripping indignation?

The question appeared to be an oxymoron, too. Frankly, I had less than nothing. How could I have less than nothing?! Nearly $40,000 in debt between credit cards, student loans, and a car loan, I didn’t own anything. Instead, banks owned me and all my stuff. With student loans, you either pay them back, enter a special governmental program for forgiveness, or you die. There’s no option to reduce your interest for good grades or make it magically disappear — not even bankruptcy can save you.

Despite the internal pressures to keep quiet or lash out against the person asking this loaded question, I decided to follow down a different path. I responded hesitantly — not knowing the response I’d receive — but also with combination of authenticity, genuineness, honesty, and openness.

Sharing the big, scary number

I plopped out this turd of a number: “I have about $38,000 in debt right now.”

The heft of that number and all the social pressures surrounding it seemed to be lifted. The veil of privacy and secrecy around my debt disappeared. Suddenly, I felt freer. Over the coming months, I began to tell more people about my problem. Some people reacted in shock. Others shrugged their shoulders and admitted they had more than me. Seemingly, my vulnerability and authenticity encouraged others to share their honest reactions and their own debt stories.

I wasn’t alone anymore with this staggering number. I wouldn’t be kept up at night anymore. Being able to share my story enabled me to take responsibility for errors and realize how I could improve. The two combined in perfect harmony into Frugaling.org.

The pressures of society are powerful

I was worried about the stigma of debt. I noticed in popular media and casual conversations that debt was comparable to ill morals. Poorer people are vilified for making mistakes and not working hard enough. I was told that if I share my bank statements and my debt load openly that that was tantamount to indecent exposure. Maybe they’re right, but by facing my problem head on and sharing freely, something beautiful happened.

Unsubsidized Student Loan Chart Debt Question — *My unsubsidized student loans were going crazy. In August 2013, they reached $25,000. By the end of April, they’ll be paid off completely!*

After I started Frugaling.org, I began to pack more lunches, choose more affordable clothing stores (haven’t purchased anything in 8 months), make a budget I could actually follow, and radically reduce my debt. I made more money and paid my loans off in huge chunks.

Being honest and risking rejection was one of the most difficult things I’ve done. But I’m certain now that this openness is the strongest method and pressure to fixing a bloated, dangerous debt course. Changing the path can seem difficult — you’re going to want people supporting you. By admitting your debt load, you’ll be making your first step towards zero and have a team of people cheering you on.

Have you shared your total debt with other people? What was it like sharing your story? How do you find support in your journey back to zero debt?

I Am Grayson Bell, Founder Of Debt Roundup, And This Is How I Work

By Frugaling 7 Comments

Over the last few weeks, I’ve been emailing and interviewing the top writers (e.g., the founders of Budgets Are Sexy, The Broke And Beautiful Life, Frugal Rules, and Modest Money) in the personal finance community. They’re a wonderful, supportive group of people. I’d encourage anyone that’s struggling to make ends meet to reach out for support and guidance from them.

Today, we are fortunate to have Grayson Bell of Debt Roundup. He’s a leading writer in the field, and is a total success story. He came back from $50,000 in credit card debt and lived to tell the tale! I’m happy to share this 5th interview with all of you. Thanks, Grayson!

What inspired you to begin DebtRoundup.com?

I had just made my last payment on my credit card debt. It was over $50,000 to start and I was super excited to pay it off. After the payment, I figured I could share my story with others. My personal story is just a little different because I racked up debt from starting and running a business. It turns out that many enjoyed my story.

How did people (friends, family, etc.) react when you first started?

My family knew about it right after I started it. My wife supported me through the whole thing. Since I have always been someone that worked with online ventures, they weren’t surprised at all. My friends did get a little jolt when I told them. They always thought I had my financial life in order. They were wrong!

What was your experience with design, code, web work prior to starting your site?

Debt Roundup Screen Shot — *Screenshot of Debt Roundup*

I taught myself how to code when I started my e-commerce business. I have been doing it for close to 10 years. I actually offer coding and design tweaks to many other bloggers because of my experience. That is one part of my business that I am trying to grow.

What advice would you give to those thinking about starting their own site?

Just do it. Starting a blog is awesome, but know that it is a lot of work. If you want to become successful, then understand that it is a time commitment. I would also suggest that anyone looking to blog get setup on a real domain running WordPress. That is the real way to blog and grow. I have a great guide on how to start a blog on my site.

How do you make money from your site?

Wait, you can make money blogging? OK, just kidding. I make money in a variety of ways, which include affiliate promotion and Google AdSense. I make the most of my money freelancing for other sites, which found me from my blog.

What do you think you’ve learned from your readers and fans?

This is the best part about blogging. Connecting with the readers is a true experience. I love writing something and then getting feedback from my loyal readers. The biggest thing I have learned is to keep my mind open when it comes to how I manage my money. There are so many different ways to handle your finances that it can be mind-boggling. I really enjoy seeing how others deal with their money.

How can somebody in lower incomes best overcome financial hurdles and prosper?

This is an extremely tough question to answer. The main thing I can say is to have a desire to make a change first and foremost. If you don’t truly want to make a change, then you never will. Take it upon yourself to gain more education. Knowledge leads to opportunities, and opportunities lead to lifestyle changes. I have come across many that started out in lower-income brackets and have worked their way out and now thrive. These people were extremely motivated to start.

Who are your financial role models?

I am not the type of person that likes to focus on role models. No one is perfect and no one has all the right answers. For this reason, I don’t dedicate my time to following one person. I learn about money from the people I interact with on other personal finance blogs as well as my own. I guess you can call them my role models.

What personal finance sites do you read?

These days I don’t get to read much, but when I do have time, I like to read Budgets are Sexy, Frugal Rules, Making Sense of Cents, and Club Thrifty.

What else would you care to share with the readers of Frugaling?

First, thank you Sam for including me in this interview series. I am honored. Secondly, if you really want to make a financial change in your life, then go do it. Action leads to results, so don’t be afraid to take action and find opportunities.

The true power to make a change starts and ends with you.