Funny Money That Doesn't Make Cents with Comedian Fumi Abe
In this episode of Money Rehab with Nicole Lapin, the host and comedian Fumi Abe explore how personal experiences shape financial attitudes and behaviors. Fumi shares his journey from having an "immigrant mentality" and compulsive job-seeking to developing a longer-term view that allows for creative pursuits and indulgences.
The discussion delves into the psychological factors influencing spending habits, touching on the role of self-love and therapy in overcoming ingrained financial patterns. Fumi and Nicole also examine the financial realities of a comedy career, from unpredictable income fluctuations to unique revenue streams. Thought-provoking insights are provided into workplace norms around tipping, expense accounts, and tensions between employees and corporate oversight.
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1-Page Summary
Personal finance and money management habits
Fumi Abe on evolving financial habits
Previously, unpredictable income as a comedian led Fumi to compulsively search for jobs due to an "immigrant mentality" rooted in needing financial security.
Over time, Fumi developed a longer-term view focused on annual earnings, allowing him to pursue creative projects without constant financial anxiety.
With financial stability, Fumi now feels comfortable splurging on indulgences like strip clubs and coveted items, reflecting a sense of economic liberation.
The emotional and psychological factors influencing financial behaviors
Upbringings and past experiences shape money relationships
Fumi links his cautious spending habits to growing up with limited resources, per Abe.
Nicole reveals habits like hiding cash despite debt, attributing them to customs and "financial trauma" from her immigrant family background, per Nicole.
Self-love and therapy aid financial management
Fumi shares an example of an comedian earning six-figures yet struggling with debt due to emotional factors. Nicole agrees tackling emotional barriers is key, advocating self-love and potentially therapy to overcome instilled financial behaviors.
The culture and norms around tipping and expense accounts
Strategic use of expense accounts to offset low salaries
Fumi acknowledges expensing meals during his corporate job to compensate for a modest starting salary, per Abe.
Unclear tipping norms cause frustration
Fumi prefers flat dollar tips over percentages due to unclear norms around "non-consensual tipping" systems. He cites examples like DoorDash tipping incidents and determining amounts at strip clubs, per Abe.
Tensions between employees and corporate oversight on expenses
Nicole and Fumi discuss a banker fired for expensing partner meals on a business trip, highlighting conflicts between employee discretion and strict corporate oversight, per Nicole and Abe.
The financial challenges and realities of pursuing a career in comedy
Unpredictable income fluctuations
Fumi describes periods of high and low income, learning to view finances through an annual lens rather than obsessing over daily cash flow, per Abe.
Unique income streams for comedians
Fumi pursued alternative revenue like comedy show performances and fan donations to supplement modest earnings from platforms like Patreon, per Abe.
1-Page Summary
Additional Materials
Counterarguments
- While Fumi's shift to a long-term financial perspective is beneficial, it may not be suitable for everyone, especially those who face immediate financial pressures.
- Indulging in strip clubs and luxury items as a sign of financial stability can be seen as a controversial use of funds, and some might argue for more prudent or ethical spending.
- The idea that upbringing solely influences spending habits can be oversimplified, as individuals can change and adapt their financial behaviors over time, independent of their past.
- While self-love and therapy are important, they may not be a panacea for financial management issues; practical financial education and planning are also crucial.
- The strategic use of expense accounts, while practical for the individual, could be viewed as exploiting company resources, especially if done excessively.
- Preferring flat dollar tips over percentages might not adequately compensate service providers, as it doesn't account for the varying costs and efforts of different services.
- The tension between employees and corporate oversight on expenses is complex, and strict oversight can sometimes be necessary to prevent abuse and ensure fairness.
- The focus on alternative revenue streams for comedians doesn't address the broader systemic issues that may make it difficult for artists to earn a stable income.
- The narrative might unintentionally glamorize the unpredictability of a comedian's income, which could be stressful and financially unsustainable for many individuals in the profession.
Actionables
- You can create a "Financial Anxiety Journal" to track your feelings about money over time and identify patterns that may be influencing your spending habits. Start by jotting down your emotions whenever you make a purchase or think about your finances. Over time, you might notice trends, such as increased anxiety when bills are due or a tendency to splurge after a stressful day. Recognizing these patterns can help you develop healthier financial behaviors.
- Develop a "Tip Calculator App" on your smartphone that suggests flat dollar amounts for tips based on the type of service and your satisfaction level. This can simplify the tipping process and ensure you're consistently rewarding service providers without the stress of figuring out percentages, especially in situations where tipping norms are unclear.
- Engage in a "Comedian's Financial Stability Challenge" where you simulate the unpredictable income of a comedian by allocating your monthly income to fluctuate randomly. For a few months, live on a varied percentage of your income (e.g., 70% one month, 90% another) to practice budgeting under uncertain conditions. This exercise can help you build a financial buffer and develop strategies to manage money more effectively during lean times.
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Personal finance and money management habits
Personal finance guru Fumi Abe delves into his journey of developing better financial habits and how his mindset towards money management has significantly changed over time.
Fumi Abe reflects on how his financial habits and mindset have evolved over time
Abe speaks candidly about his evolution from a state of financial anxiety to one of confident financial planning.
Previously, Fumi had a tendency to be anxious about inconsistent income as a comedian, leading him to frequently check job listings on LinkedIn
Fumi Abe admits that the unpredictability of income in his earlier days as a comedian led to a perpetual state of anxiety. To mitigate his fears, he would compulsively check LinkedIn for jobs, particularly in UX design, as a fallback option due to what he describes as an "immigrant mentality." This mentality stemmed from a need for financial stability and the fear of the unknown associated with inconsistent earnings.
Fumi has now learned to take a more holistic, long-term view of his finances, focusing on his annual earnings rather than daily or weekly income
Over time, Abe has developed a healthier relationship with his financial situation by focusing less on the lack of a steady weekly income and more on the bigger picture. He has come to trust in his continuous work history and his ability to save money into his early thirties. By shifting his focus to his annual earnings, it allows him to concentrate on his creative pursuits without the burden of immediate financial pressures.
Fumi has also become more comfortable with spontaneous spending on things he wants, as long as he feels financially secure overall
Fumi's newfound financial confidence has also led him to ...
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Personal finance and money management habits
Additional Materials
Clarifications
- Fumi Abe started his career as a comedian, a profession known for its unpredictable income streams and job opportunities. This instability in earnings often led him to experience financial anxiety, prompting him to seek additional work opportunities for financial security. Abe's background as a comedian influenced his early financial mindset and habits, shaping his journey towards developing a more stable and holistic approach to money management over time.
- Fumi Abe, a comedian, transitioned from being anxious about his inconsistent income to adopting a more long-term financial perspective. He shifted his focus from daily earnings to annual income, allowing him to prioritize his creative pursuits. With increased financial security, he became more comfortable with spontaneous spending on items he desired. This newfound confidence in his financial stability enabled him to enjoy luxuries he previously refrained from.
- The term "immigrant mentality" often describes a mindset shaped by the experiences of immigrants who prioritize financial stability due to past uncertainties. Immigrants may have faced economic challenges in their home countries, leading them to value security and steady income. This mentality can manifest as a strong work ethic, frugality, and a focus on saving for the future. It reflects a desire to build a secure financial foundation in a new environment, driven by the memory of past struggles and a d ...
Actionables
- You can create a visual financial timeline to track your income and expenses over the years, which will help you see the bigger picture of your financial journey. Start by plotting your annual income and major expenses on a graph to identify trends and periods of financial stability or volatility. This visual aid can serve as a motivational tool to maintain or improve your financial habits.
- Develop a "spontaneity fund" by setting aside a small percentage of your monthly income. This fund is specifically for unplanned treats or experiences, allowing you to enjoy the fruits of your labor without compromising your overall financial plan. Decide on a percentage that doesn't hinder your savings goals, and transfer it to a separate account designated for spontaneous spending.
- Engage in a monthly "financial liberation" exercise where you review your pur ...
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The emotional and psychological factors influencing financial behaviors
Fumi and Nicole delve into the deep-seated emotional and psychological factors that can often distort our financial decision-making, acknowledging that our upbringings and past experiences play a significant role in shaping our relationship with money.
Fumi and Nicole discuss how their upbringings and past experiences have shaped their relationship with money
Fumi's cautious approach to spending due to his upbringing
Fumi recounts how growing up with limited resources imbued him with an overarching sense of caution when it comes to spending money. This mindset persisted even after he reached a level of financial stability, showcasing how past experiences can create a long-lasting impact on one's financial behaviors.
Nicole's habits rooted in her family background
Similarly, Nicole reveals her own financial idiosyncrasies, such as her habit of hiding cash at home, even in the face of credit card debt. She attributes this behavior to the customs and financial trauma that stem from her immigrant family background. Despite the irrational nature of her actions, they are deeply entrenched in her and illuminate the complex relationship she has with money.
The importance of self-love and therapy in financial management
Throughout their conversation, both Fumi and Nicole highlight the necessity of addressing emotional barriers to foster healthy financial management. Fumi shares a story of a guest on his podcast who, despite having a lucrative career in comedy and a six-figure income, still struggled with $8,000 in cred ...
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The emotional and psychological factors influencing financial behaviors
Additional Materials
Counterarguments
- While emotional and psychological factors are important, they are not the only influences on financial behavior; cognitive biases, lack of financial education, and systemic economic factors also play significant roles.
- The relationship between upbringing and financial behavior is complex and not deterministic; individuals from similar backgrounds can develop vastly different financial habits.
- Caution in spending is not inherently negative and can be a rational response to uncertainty about future income, rather than solely a product of past experiences.
- Hiding cash at home, while seemingly irrational, could be a strategic response to a lack of trust in financial institutions or a way to avoid impulsive spending with credit cards.
- The assumption that emotional barriers are always detrimental to financial management may overlook the adaptive functions of certain emotional responses, such as the role of fear in avoiding financial risk.
- The story of Fumi's guest might oversimplify the issue; high income does not automatically equate to financial literacy or the emotional readiness to manage wealth effectively.
- Rational financial decisions can sometimes be emotionally driven; for instance, the peace of mind that comes from having savings can be a rational reason for ...
Actionables
- Create a money emotions journal to track how feelings influence your spending by writing down your emotions every time you make a purchase and reviewing the patterns weekly.
- Develop a "financial autobiography" to uncover the roots of your money habits by writing your personal history with money, noting significant events and their emotional impact, and then identifying which habits you want to change.
- Start a "self-care savings challenge" where you set ...
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The culture and norms around tipping and expense accounts
Fumi reflects on his experience with using expense accounts during his corporate job, strategically expensing certain purchases
Fumi Abe opens up about his clever use of the expense account during his corporate days. He candidly discusses how he compensated for his not-so-amazing starting salary by strategically expensing his food. This approach is a glimpse into how employees sometimes navigate corporate financial benefits.
Fumi acknowledges that the norms around tipping, especially for delivery services, can be unclear and frustrating
Fumi shares his personal approach to tipping, preferring a flat dollar amount over percentage-based tips, particularly because he finds the modern norms surrounding tipping, or "non-consensual tipping," as he puts it, to be forced upon customers via systems like iPads situated at checkout points. He discusses his discomfort with tipping prompts in unusual places, like a tire shop, and the vexing nature of trying to determine tipping etiquette at a strip club, where dancers might directly ask for tips, yet he does not always comply unless prompted.
Fumi also mentions an incident where a woman in Texas was chastised by a DoorDash delivery person for not tipping more than five dollars. He connects this event to the intricacies of tipping in various services, emphasizing how delivery tasks remain consistent even when the restaurants vary from high-end establishments to fast-food chains.
Using the example of a meal that costs around twelve to fifteen dollars, Fumi justifies a five-dollar tip as generous, exceeding the 20 percent standard. He recounts his approach to avoiding what he dubs "tipflation" by reverting to cash for tips, thus personalizing the act of tipping by ensuring eye contact and conveying the gesture's significance directly to the recipient.
Nicole and F ...
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The culture and norms around tipping and expense accounts
Additional Materials
Clarifications
- Fumi Abe strategically expensed his food purchases to make up for his modest starting salary. This means he used his company expense account to cover meals and other expenses that he might not have been able to afford otherwise. By doing this, he effectively increased his disposable income without directly impacting his personal finances. This practice is a common tactic used by some employees to maximize the benefits available to them within the corporate structure.
- Fumi's discomfort with modern tipping norms and "non-consensual tipping" stems from his preference for a flat dollar amount over percentage-based tips. He finds the current tipping culture, especially when prompted by technology like iPads, to be intrusive and forced. This discomfort extends to situations like tipping at unexpected places and feeling pressured to tip in certain environments, leading him to seek more personalized and direct ways to express gratitude through tipping.
- Fumi justifies a five-dollar tip on a twelve to fifteen dollar meal by exceeding the 20 percent standard tip amount commonly practiced in the service industry. This approach is his personal way of showing generosity in tipping, even beyond the expected percentage. Fumi's rationale is to avoid "tipflation" and maintain a consistent and personalized tipping practice. He prefers cash tips to ensure direct interaction and convey appreciation more personally to the recipient.
- "Tipflation" is a term coined to describe the phenomenon where tipping expectations increase over time, leading to higher tip amounts becoming the norm. This concept reflects the pressure customers may feel to tip more generously than they originally intended due to societal or industry influences. It highlights the inflationary trend ...
Counterarguments
- While Fumi Abe's strategy to expense food to compensate for a low salary may seem clever, it could be argued that this approach might not align with the intended use of corporate expense accounts and could be seen as unethical if it goes against company policy.
- The use of expense accounts to navigate financial benefits could potentially lead to abuse and might not be a sustainable or fair practice for all employees, especially if it creates disparities or sets unrealistic precedents.
- Preferring flat dollar amount tips over percentage-based tips might not always fairly compensate service providers, as the effort or cost of service might scale with the price of the service or goods provided.
- While modern norms around tipping can feel forced, these systems are often in place to ensure service workers are fairly compensated, especially in industries where wages are traditionally low and workers rely on tips.
- Tipping prompts in unusual places could be a reflection of changing economic realities for small businesses and service workers, and not necessarily an attempt to make customers uncomfortable.
- The discomfort in determining tipping etiquette at places like strip clubs could be indicative of broader societal discomfort with the industry rather than an issue with the tipping system itself.
- Arguing that delivery tasks remain consistent across different types of restaurants might overlook the nuances of each delivery situation, such as distance, service quality, and the v ...
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The financial challenges and realities of pursuing a career in comedy
Fumi candidly discusses the financial ups and downs of a comedic career, sharing his experiences with varying income levels and diverse revenue streams.
Fumi opens up about the financial fluctuations he has experienced as a comedian, including periods of high and low income
Fumi explains the financial instability that often accompanies a career in comedy. He describes the unpredictable nature of the job, explaining that writing gigs can offer a substantial income but are risky due to potential unemployment for extended periods.
Fumi describes how he has learned to be more comfortable with uncertainty in his income, focusing on his annual earnings rather than daily or weekly cash flow
Through his career, Fumi has learned to accept the uncertainty surrounding his earnings as a comedian. Rather than becoming anxious about fluctuating daily or weekly income, he has shifted to focusing on his annual earnings. By viewing his financial situation from a yearly perspective, he has become more comfortable with the inherent instability of his income in the comedy industry.
Fumi shares examples of unique income streams he has pursued as a comedian, such as performing at a comedy show called "Hot Soup"
Fumi mentions alternative methods he has used to generate income as a comedian, such as getting paid for performing at "Hot Soup," a popular comedy show in New York. How ...
Here’s what you’ll find in our full summary
The financial challenges and realities of pursuing a career in comedy
Additional Materials
Counterarguments
- While Fumi's experience is valid, it may not represent the financial realities of all comedians, as success and income can vary widely in the industry.
- Focusing on annual earnings might not be feasible for comedians who are struggling to meet their basic daily or monthly financial obligations.
- The mention of low pay for performances like "Hot Soup" could be countered by the argument that such gigs are often stepping stones to more lucrative opportunities and serve as important networking events.
- The reliance on direct donations and Patreon might not be sustainable long-term income strategies for all comedians, especially those who are unable to build a significant following.
- The humor in mentioning OnlyFans subscriptions could be seen as trivializing the financial struggles of comedians, although it is presented in a light-hearted manner.
- The financial challenges high ...
Actionables
- You can diversify your income by brainstorming hobbies or skills you have and finding ways to monetize them, such as starting a small online shop for handmade crafts or offering tutoring sessions in a subject you're knowledgeable about. This approach helps you create additional income streams that can stabilize your overall earnings, much like a comedian might seek out various gigs.
- Consider tracking your income on a quarterly basis instead of weekly to reduce stress about fluctuations, using a simple spreadsheet to log earnings and identify patterns over time. This method can provide a clearer picture of your financial health and help you make more informed decisions about saving and spending.
- Explore the concept of ...
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