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



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.



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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MARCH-- "How to earn more and save better"