Rachel Richards is an incredible example of financial success at a young age. As a Cutco/Vector sales rep, Rachel succeeded at a level high enough to pay her way through a private college, Centre College in Kentucky, and graduated debt-free with a degree in Finance. She worked as a Financial Advisor for a while, then moved over to working in the Real Estate industry, where she developed the skills to successfully invest in rental properties. Over the past few years, Rachel and her husband have accumulated 5 properties with 35 total units, and now generate enough passive income to cover their monthly personal expenses. This has enabled Rachel to “retire” from her formal work and pursue her passion of teaching others about financial independence. She’s the author of a best-selling book called “Money Honey,” and she regularly speaks about concepts for financial success.

Q&A WITH RACHEL RICHARDS

Q: Let’s begin by talking about how you got started with Cutco/ Vector.

• I had read a lot of financial books and had the goal of graduating college debt free. The only problem was that there weren’t any companies hiring high school graduates and paying them enough money to pay their way through college.
• I got a letter in the mail to come work for Vector selling Cutco so I came in to the interview. I was the office’s first $10k Fast Starter.

Q: Tell us about some of your early experiences that provided lessons for you.

• This was my first sales job and one thing you learn in sales is that you have some good days and some bad days. But I liked not knowing what would happen on a day-to-day basis.
• I also learned to not take things personally.
• I learned the importance of standing out, which was especially useful as a college student. Because of my experience selling Cutco with Vector, I was offered 5 jobs after graduating from college.

Q: You graduated college in 3 years and did it debt-free.  How did you do it?

• For one, I started to work on this early on in high school. So I did everything I could possibly do to stand out in all areas including sports and academics hoping to get a scholarship.  I also took as many AP classes as possible so they would count towards college.
  • When I started college I received a $30,000 scholarship and because of my AP classes I started as a 2nd semester Freshman.
• The 2nd thing I did was getting a high-paying job selling Cutco.

Q: Why do you think you were so motivated to make that happen?

• It’s all about your WHY. I focused on the goal of graduating college debt-free and that’s what motivated me every single day.

Q: Tell us about your path after college.

• Out of college I became a financial planner but I found that wasn’t really what I wanted to be doing.
• I got a few jobs in the real estate industry which opened up my eyes to real estate investing and I eventually got my Real Estate License.
• I finally landed a corporate finance job at a global manufacturing firm in 2016.

Q: And you just left that job?

• Passive income has been a really big focus for me over the past few years.  We bought our first rental property in 2017 and we now have 5 properties for a total of 35 units.
• I also have some royalties on a book and I have another passive income business.

Q: I think this is a perfect transition to your book, “Money Honey.  A Simple 7-Step Guide For Getting Your Financial Shit Together.”  What are some key principles from the book that you’d like to share today?

• The 2 areas my readers have told me have helped the most are around the topics of investing and saving.
• Investing- don’t wait to start investing. Time is your biggest advantage when it comes to investing.
• When it comes to savings, I teach having 4 savings buckets.
  • Emergency savings- always at $1,000 or more saved.
  • Medium-term savings- things you’re saving for in the next 12 months.
  • The 3rd is for long-term savings- Anything over 12 months but before retirement.
  • Lastly, the 4th bucket is your retirement bucket.

Q: You speak at events all over and teach young people about finances regularly. Where do you teach your audience to start?

• The first step is to Master the Basics of money-management.
  • Budgeting, savings, debt pay-off, and investing.
  • Probably the best place to start is paying off credit card debt.
  • When it comes to budgeting, a lot of people look at how they’re going to cut out expenses but a lot of people don’t look at creating more income. You can only reduce your bills so much, but you can make as much money you want.
• A quick bonus tip would be to make sure you and your significant other are on the same page when it comes to money.

Q: When you look into the future over the next 5-10 years, how do you aspire to change people’s lives through your work or your influence?

• There is an epidemic in America and it is lack of financial education and if I can continue to teach people about finances in a fun and informative way, I’d like to do that.
• I have a 2nd book coming out later this year and it’s about passive income and how I was able to do what I’ve done.

FINAL THOUGHTS

• I loved some of her Cutco lessons: the idea of good days and bad days, not taking things personally, and having a more even-keel outlook on the events in life. She also talked about the benefits of standing out.
• I also want to point out the importance of Rachel graduating college debt free and the impact that can make on a young person’s financial life.
• Rachel’s saving paradigm is important to consider. I (Dan) always encourage people to try to live on 70% of their income and save 30%.
• Eliminate and avoid credit card debt.
• When budgeting, remember that you can spend less and/ or earn more. Both are important but earning more is easier.  Increase the value you bring to the market.

SHOW RESOURCES

• Order “Money Honey. A Simple 7-Step Guide For Getting Your Financial Shit Together” here

CUTCO/VECTOR TERMS

• Fast Start- a contest new Cutco reps get for their first 10 days on the job.