HOW TO

EARN
MORE &
SAVE
BETTER
Katie Dunsworth, cofounder of financial-advising
group the Smart Cookies, tells MARCH about how she
took control of her financesand shares top tips for
women looking to do the same. BY LISA RYAN
MARCH/APRIL 2011 | marchmagazineonline.com 57
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58 marchmagazineonline.com | MARCH/APRIL 2011
D
unsworth caught a
March 2006 episode of
The Oprah Winfrey
Show that focused on
personal nance and
oered options for debt
relief. Winfrey urged
women to be honest about the kind of life-
style they could aord. Inspired by the epi-
sode, Dunsworth and a group of girl-
friendsall of whom were successful
professionally but suering nancially
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 nances 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 and
living 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 the
Cookies also explored and pursued freelance
opportunities in their respective elds.
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 nancial fame. Now, they
host their own television program on the
W Network. Theyve 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 for
less, 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, were going to
help you do that. It just means youre
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 WAS
A SUCCESS BY THE AGE OF 24.
Shed 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 sacriced
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 to
share the Smart Cookies
best bits of nancial advice.
Heres what she had to say:
THINK POSITIVELY
When it comes to cutting spending, the
Smart Cookies rst 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,
youll create a positive momentum for your
new nancial life. SMART TIP: Each time
you reach a debt-shrinking milestone, treat
yourself to a small luxurylike a glass of
champagne.
GET CREATIVE
The 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. Its important to familiarize
yourself with these gures 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 its student loans, see if you can
go out and get a smaller rate.
Cut out unnecessary expenses, like pre-
mium cable or electricity costs, but dont
sacrice the things that you deem necessary
for a happy existence. If spa treatments are
your favorite indulgence, dont 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 nances, like those at mint.com or
kiplinger.com/tools/budget.
BUILD A NETWORK
The job market isnt as secure as it once
was. Rather than oering 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 nd addi-
tional work as an adoption-study social
worker.
I think freelance work is fabulous,
Dunsworth says. It allows workers the
freedom to dip their toes in several dier-
ent elds 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 dont know
how to market themselves appropriately.
People tend to have a hard time selling
themselves, she says.
The Smart Cookies rst recommend
beeng 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 condence to ask for
what you want.
The Cookies have posted their respec-
tive freelance services on sites like Elance
and Craigslist, in addition to making
strong eorts 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 youre 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 relations
rm 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, YOULL CREATE POSITIVE
MOMENTUM FOR YOUR NEW FINANCIAL LIFE.
KATIE DUNSWORTH, COFOUNDER OF THE SMART COOKIES
MARCH 2006
After watching an episode of
The Oprah Winfrey Show about
Americas Debt Diet, the girls
hold their rst meeting.
DECEMBER 2006
The Smart Cookies write to
The Oprah Winfrey Show about
their nancial success.
JANUARY 2007
The Smart Cookies are featured
on The Oprah Winfrey Show.
MARCH 2007
More than 20 media outlets fea-
ture the Cookies, including Money
magazine, The New York Daily
News, and Jean Chatzkys money
segment on Oprah and Friends.
APRIL 2007
1heCookiespartnerwithOmni
Lifestyletocoproducea
12-minute pilot of the Smart
Cookies1Vseries
SEPTEMBER 2007
The Cookies ink book deals with
Random House USA (Bantam
DellandPandomHouseVintage
Publishing for The Smart Cookies
Guide to Making More Dough.
OCTOBER 2007
1heWNetworkagreesto
produceepisodesofthe
Smart Cookies television series.
APRIL 2008
Smart Cookies secures a second
seasonepisodeswiththeW
Network.
SEPTEMBER 2008
The Smart Cookies Guide to
Making More Dough is released
in the US and Canada.
MAY 2009
The girls begin work as Smart
Spending Ambassadors for
American Express.
JANUARY 2010
The Smart Cookies Guide to Cou-
ples and Money released in the US
Canada
GETTING SMART
Follow the Smart Cookies' rise to the top
60 marchmagazineonline.com | MARCH/APRIL 2011
day, we look at companies we really admire
and shoot an e-mail to the CEO, which is
essentially cold calling, she says. We tell
them that we admire their business and
ask them out for coee. She has found
that people respond positively to sincerity,
and many fantastic business relationships
have blossomed from simply putting her-
self out there. SMART TIP: Supplement your
income with freelance work. Find opportu-
nities via elance.com.
NEGOTIATE SALARY
Dont be afraid to ask for higher compen-
sation if you feel that youve earned it.
When it comes to salary negotiations,
however, you must prove your worth to
the company. You, as a sta member,
need to show an understanding of your
companys goals, Dunsworth says.
Using these tips, Dunsworth was able to
convince her boss to give her a promo-
tion and a $20,000 raise with bonuses.
Now an employer herself, she has also
experienced salary negotiations from
the other side of the table.
Before you ask for a raise, Dunsworth
says, familiarize yourself with whats
most important to your company,
whether its increasing revenue, foster-
ing business relationships, or being at
the forefront of cutting-edge technol-
ogy. Come into the meeting with
[examples of ] how you supported that
goal and demonstrate the ways in which
you are invaluable.
After detailing the ways in which you
are indispensible to the company, dis-
cuss salary options. Gather examples of
competitive salaries for your position
and industry. Tell your employer what
others are making, and what you feel
you deserve.
Many companies have faced lay-os
over the past few years, and many
employees are now doing the work of
two people. Sound familiar? If your com-
pany resorted to lay-os but is now in
better nancial standing, point out your
new duties during negotiation and ask
how your employer is willing to compen-
sate for your added responsibilities.
Dunsworth suggests also preparing a
backup plan. Research alternatives that
you would be willing to accept in lieu of a
salary increase, whether its accepting
company stocks or asking for an increase
in vacation days. Dunsworth points out
that you might even want to negotiate
for the freedom of occasionally working
from home as an alternative to a salary
increase. SMART TIP: If your rm cant
bankroll a raise, negotiate for other perks
like ex time or extra vacation days.
INVEST WISELY
Once youve paid o your debt, investing
can be a viable way to earn additional
income. Sinceoining the Smart Cookies,
Dunsworth has made nearly $200,000
through her investments in real estate
and the stock market.
Not a lot of women I know are inter-
ested in the stock market, but its some-
thing I feel you should really try to force
yourself to do once youve achieved your
nancial goals, Dunsworth says.
Because investing wisely requires a lot
of research and time, invest in things that
interest you. Dunsworth has always had a
strong interest in real estate, so she
invested in real estate. She also researched
options for investing in her other areas of
interest. I invest in companies Im pretty
familiar with, she says.
Dunsworth suggests several resources
for researching potential investments.
Investopedia allows users to research
dierent stock options. She also suggests
checking out stock stimulators to study
how the stock market works. Watching
nancial shows and keeping up with
nance news helps, too.
If youre new to the investment game,
its important to nd nancial mentors
who can help guide you. They dont
have to be nancial planners, Dun-
sworth says. If youre investing in real
estate, seek out someone you know who
has made money in real estate and can
mentor you. SMART TIP: To brush up on
the basics of investing, click through free
online tutorials at investopedia.com.
Topics range from stocks and bonds to
retirement planning.