Bachelor Alum Ben Higgins on Money, Marriage and Everything in Between
On this episode of the Money Rehab podcast, host Nicole Lapin sits down with Ben Higgins, reality TV star and entrepreneur. Ben shares his unique perspective on wealth, having grown up in an affluent yet discreet community before finding fame - and fortune - on The Bachelor.
Higgins opens up about his investment strategy, which allocates a significant portion of his income towards building passive revenue streams. He also discusses his entrepreneurial endeavors, like the charitable coffee brand he co-founded. Ben and his wife Jess offer insights into managing joint finances while maintaining open communication about money and planning for the future.
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1-Page Summary
Ben Higgins' Background and Wealth Experiences
Ben Higgins reveals his upbringing in an affluent Midwest town focused on the orthopedics industry, where wealth was rarely openly discussed. His experience on "The Bachelor" exposed him to lavish lifestyles starkly different from his modest roots.
Ben's Entrepreneurial and Investment Endeavors
After "The Bachelor", Higgins invested his newfound wealth and inheritance into ventures like restaurants and skincare. He reinvested around 70% of his income, focusing on building passive income streams. Higgins stresses failures as learning opportunities.
Higgins co-founded Generous Coffee, donating all profits to nonprofits. As Sanger-Katz notes, leadership works pro bono, allowing the charitable model to thrive.
Ben and Jess's Approach to Finances
Higgins and his wife Jess value open dialogue about finances. They contribute to a shared account for joint expenses while maintaining personal accounts. Higgins spearheads day-to-day money management.
Ben emphasizes preparedness through estate planning like wills. As Higgins states, the couple is actively planning for starting a family while considering their finances.
1-Page Summary
Additional Materials
Clarifications
- Ben Higgins gained fame through his appearance on the reality TV show "The Bachelor," where he was the lead in the 20th season. This exposure to a national audience brought significant changes to his lifestyle, including increased public attention, opportunities for endorsements and appearances, and a shift towards a more public persona. The show also introduced him to a world of luxury and extravagance that contrasted with his more modest upbringing, influencing his perspective on wealth and lifestyle choices.
- Reinvesting 70% of his income to build passive income streams means that Ben Higgins puts a significant portion of the money he earns back into investments that generate ongoing income with minimal effort. This strategy aims to create a financial cushion for the future by allowing his money to work for him over time. By focusing on passive income, Higgins is looking to build a sustainable source of revenue that can support him without requiring constant active involvement. This approach can help him achieve financial stability and potentially grow his wealth over the long term.
- Ben Higgins co-founded Generous Coffee, a company that donates all its profits to nonprofits. This means that after covering expenses, every dollar earned goes towards charitable causes instead of being kept as profit. The leadership team at Generous Coffee works without pay, ensuring that the maximum amount of money can be directed towards helping others. This unique business model allows the company to make a positive impact through its financial contributions to various charitable organizations.
- Ben and Jess manage their finances by combining their resources in a shared account for common expenses while also maintaining separate personal accounts for individual spending. This approach allows them to handle joint financial responsibilities efficiently while still maintaining autonomy over their personal finances. Ben takes the lead in overseeing the day-to-day management of their money matters, ensuring that their financial goals are met and that their financial future is secure. This strategy enables them to work together towards their shared financial objectives while also respecting each other's financial independence.
- Ben Higgins' emphasis on estate planning and preparing for starting a family indicates his focus on ensuring financial security and stability for his future family. Estate planning involves making legal arrangements for the distribution of assets in case of death, ensuring that his loved ones are taken care of. Planning for starting a family involves considering the financial responsibilities that come with raising children, such as education, healthcare, and general living expenses. These actions showcase Ben's proactive approach to managing his finances and securing a solid foundation for his family's future.
Counterarguments
- While Ben Higgins' upbringing in an affluent town might suggest a comfortable childhood, it doesn't necessarily mean he personally experienced wealth, as individual family circumstances can vary widely even in affluent communities.
- The fact that wealth was rarely discussed openly in Ben's upbringing could be seen as a missed opportunity for financial education, which is important for developing a healthy relationship with money.
- Exposure to lavish lifestyles on "The Bachelor" might have provided a skewed perspective on wealth and financial stability, as reality TV often amplifies luxury and excess.
- Investing 70% of one's income is a significant commitment that may not be feasible or advisable for everyone, depending on their financial situation and risk tolerance.
- While Ben's entrepreneurial spirit is commendable, not all investments are successful, and the high rate of reinvestment could lead to financial instability if not managed carefully.
- The success of Generous Coffee's charitable model, while noble, may not be replicable in all business contexts, especially for ventures that require significant capital or have higher operating costs.
- The approach of leadership working pro bono at Generous Coffee is generous but may not be sustainable long-term for all members involved, as people's circumstances can change, necessitating compensation for their time and effort.
- Ben and Jess's financial arrangement with a shared account for joint expenses and personal accounts for individual spending is a common practice, but it may not be the best approach for all couples, as financial transparency and joint financial goals can also be achieved with fully shared finances.
- Estate planning and preparing for a family are important, but the text does not address the need for a comprehensive financial plan that includes retirement savings, insurance, and emergency funds, which are also critical components of financial preparedness.
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Ben Higgins' background and experiences with money and wealth
Ben Higgins provides insight into his upbringing in a wealthy Midwest town and his contrasting experiences with wealth after his time on "The Bachelor."
Ben’s Unassuming Wealthy Hometown
Ben reveals that in his Indiana hometown, despite the prevalence of wealth, money was rarely a topic of open conversation. Everyone led comparable lifestyles irrespective of their individual wealth. The town lacked a fancy restaurant or a designated spot for the affluent, thus discussions about money were sparse among residents. The significant wealth in the area stemmed mainly from the orthopedics industry, as the town is recognized as the orthopedic capital of the world. There were many high-paying jobs due to the presence of five publicly traded, Fortune 100 companies in the field. This homogeneous economic atmosphere lent the town a "millionaire next door" ambience.
Ben’s Exposure to a Lavish Lifestyle on "The Bachelor"
Ben's experience on "The Bachelor" brought him into contact with a level of opulence that was starkly different from what he knew growing up. The transition from his simple life to limos and bright lights of Los Angeles took him by surprise due to the dramatic change from his past environment. After the show, Ben would resume his life in Denver, working in a cubicle at a software company in a brokerage-related role. He described the surreal nature of ap ...
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Ben Higgins' background and experiences with money and wealth
Additional Materials
Clarifications
- In a wealthy Midwest town like Ben Higgins' Indiana hometown, the term "millionaire next door" ambiance suggests that despite the presence of significant wealth, residents lead modest and unassuming lifestyles. This means that individuals with substantial financial resources may not display their wealth conspicuously, blending in with the community rather than standing out with extravagant displays of affluence. The concept highlights a sense of understated prosperity where wealth is not flaunted but quietly enjoyed within the community, creating an environment where financial success is not overtly showcased.
- Ben Higgins hails from a wealthy Midwest town in Indiana known for its orthopedic industry, earning it the title of the orthopedic capital of the world. The town's wealth is largely attributed to the presence of five publicly traded, Fortune 100 companies in the orthopedics field, providing many high-paying jobs. Despite the town's affluence, discussions about money were uncommon among residents, and there were no overt displays of wealth like fancy restaurants or exclusive spots for the affluent. This environment created a "millionaire next door" atmosphere where lifestyles were relatively similar regardless of individual wealth.
- The orthopedic industry is significant in Ben Higgins' hometown as it is recognized as the orthopedic capital of the world. The presence of five publicly traded, Fortune 100 companies in the field provides many high-paying jobs in the town. This industry's dominance contributes to the town's overall wealth and economic stability.
- Ben Higgins participated in the reality TV show "The Bachelor," where he was the central figure looking for love among a group of contestants. The show exposed him to a lavish lifestyle with extravagant dates, luxurio ...
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Ben's Entrepreneurial and Investment Endeavors
Ben Higgins leverages the financial gains and popularity from "The Bachelor" not only by diversifying his investments but also by creating a unique business with a charitable angle.
From Reality TV to Diverse Business Ventures
After stepping away from the spotlight, Ben invested his newfound wealth and inheritance into a spread of business ventures, ranging from the hospitality industry to the beauty sector.
A Leap of Faith into Gastronomy and More
The Denver-based reality star turned entrepreneur took a significant risk by investing his entire inheritance from his grandmother—amounting to $10,000 to $15,000—into a restaurant venture proposed by a local bar owner he trusted. This initial investment flourished, leading him to have a stake in a total of 18 different establishments, including cocktail bars, a sports bar, and a steakhouse. Beyond the restaurant business, Higgins is also involved with Black Wolf, a successful skincare line aimed at men.
Ben reveals that approximately 70% of his post-Bachelor income was reinvested into various ventures, which have had varying degrees of success. With the mindset that about 20% of his investments panned out while the rest didn’t quite succeed, Ben stresses the invaluable learning experiences gained from failures and the importance of persisting in the business world.
Higgins emphasizes building passive income streams as part of his investment strategy, which allows him financial freedom to pursue other interests without needing to actively manage each business.
Philanthropy Driven Enterprise
The Generous Coffee Model
Venturing away from conventional business narratives, Ben co-founded Generous Coffee, applying a 100% profit donation model to fuel charitable causes worldwide.
The Inception of a Giving Business
Ben’s encounter with poverty and corruption in Central America as a teenager became a driving factor for wanting to make a difference. Generous Coffee fits into a longer trajectory of charitable work, emerging from a nonprofit his friends began, which focused on community-led projects.
Leveraging Fame for Good
Post "Th ...
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Ben's Entrepreneurial and Investment Endeavors
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Counterarguments
- While Ben Higgins' investment in a variety of ventures is commendable, diversification does not always guarantee success; it can sometimes lead to overextension and a lack of focus on any single business, potentially diluting effectiveness and oversight.
- Investing an entire inheritance into a single venture, as Ben did with the restaurant, is generally considered a high-risk strategy that financial advisors might caution against due to the potential for complete loss.
- The success rate of Ben's investments, with only about 20% panning out, could be seen as relatively low, suggesting that his investment strategy might benefit from more rigorous due diligence or a different approach to risk assessment.
- The emphasis on passive income streams is a sound financial strategy, but it's important to acknowledge that not everyone has the initial capital or opportunities to create these streams, which can perpetuate inequality.
- Generous Coffee's 100% profit donation model is noble, but it may not be sustainable in the long term as it relies on the voluntary work of its leadership, which might not be replicable in other business contexts or scalable as the company grows.
- The leadership team working without pay at Generous Coffee is an unusual strategy that could potentially limit the pool of people wh ...
Actionables
- You can start a small-scale investment club with friends to learn and practice diversification. Gather a group interested in investing, pool a small amount of money from each member, and collectively decide on various industries or ventures to invest in. This hands-on experience can teach you the principles of diversification and risk management without requiring large individual capital.
- Create a "failure resume" to document and analyze your unsuccessful ventures or projects. This can be a personal document where you list out past failures, what you learned from each, and how you can apply these lessons to future endeavors. The act of writing it down can help you process the experience and extract valuable insights to improve your decision-making skills.
- Volunteer with a local nonpro ...
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Ben and Jess's approach to managing their finances as a married couple
Ben and Jess have developed a systematic and collaborative approach to handle their finances as a married couple, emphasizing open dialogue, shared responsibilities, and planning for the future.
Open Dialogue About Finances
Ben and Jess have recognized the importance of discussions around financial topics such as debt, savings, and retirement planning. These conversations began when the couple got engaged, laying the groundwork for a transparent financial relationship.
Combining Finances and Managing Day-to-Day Details
They decided to merge their finances into a shared account to which they both contribute a percentage of their income, with Ben taking the lead on managing day-to-day finances due to his deeper interest. The shared account is used to pay for their collective bills and house-related expenses. Jess maintains a separate account for her personal expenditures and business needs, and Ben respects her autonomy over her personal finances.
Ben takes a meticulous approach to finance management, similar to that of his father, and dedicates about an hour a day to trading and monitoring savings account interest rates—a task in which Jess does not engage. Decisions on larger financial expenditures, like house remodeling, are made together as they review their account status.
Importance of Planning for the Unexpected
Understanding the Significance of a Will
Ben, holding to an ethic of preparedness, maintains a detailed "green folder" containing all his financial information. Despite her initial resistance and discomfort with th ...
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Ben and Jess's approach to managing their finances as a married couple
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Counterarguments
- While combining finances can foster unity, it might not be the best approach for all couples; some may benefit from maintaining separate finances to ensure financial independence and mitigate potential conflicts.
- Open dialogue is crucial, but it should also include regular check-ins to adapt to changing financial situations and personal goals, which isn't explicitly mentioned in the text.
- Ben managing the day-to-day finances could create an imbalance in financial literacy and control within the marriage, potentially leaving Jess at a disadvantage if she needs to manage finances independently in the future.
- Spending an hour daily on finance management and trading might not be the most efficient use of time, especially if it doesn't yield proportional financial benefits.
- While making large financial decisions together is important, the text does not address how they handle disagreements or differing priorities when making these decisions.
- The "green folder" is a good idea, but relying on a single physical copy can be risky; digital backups and secure sharing with trusted family members or advisors could be a safer, more accessible alternative.
- Discussing a will is important, but the text does not mention other essential elements of an estate plan, such as powers of attorney, healthcare dir ...
Actionables
- Create a financial vision board with your partner to visualize shared goals and foster open communication about money matters. Start by gathering images and phrases that represent your financial aspirations, such as a dream home, travel, or education funds. Spend an evening with your partner crafting this board, which can serve as a daily reminder and conversation starter about your shared financial journey.
- Develop a "financial date night" routine where you and your partner regularly review your budget, discuss upcoming expenses, and adjust your financial plans. Make it enjoyable by setting a relaxed atmosphere with your favorite snacks or a meal. Use this time to ensure both partners are informed and involved in the financial decision-making process, reinforcing shared responsibilities.
- Volunteer to teach basic financial literacy at a local com ...
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