Name: Chloe Daniels aka Clo Bare Money Coach
Expertise: Money and Finance
Meet Chloe Daniels (she/her/hers), aka Clo Bare Money Coach. She teaches people how to invest – the lazy way.
Chloe is a Money and Finance expert with the results to prove it. In her first two years, she increased her net worth by $200k – and $300k by year three.
How did you land your first client?
I was asked to host a workshop with a woman who ran an events company. The workshop was called I Can’t Budget. I taught folks how to budget for three hours. Afterward, several wanted a way to work with me one on one. So I started money coaching!
What’s an actionable tip you’d give other self-employed people?
All business owners need to be investing for their retirement. As entrepreneurs and solopreneurs, saving for retirement is completely on us.
Many small business owners don’t realize that there are many tax-advantaged ways to save for retirement including a solo 401(k) (my personal favorite), SEP IRA, Simple IRA, and of course your basic traditional and Roth IRAs.
The Solo 401(k) is my favorite option, in addition to the standard IRA, because you’re able to contribute both as an employer and an employee.
Plus, the maximum contribution is all the way up to $61,000!
As business owners we are always trying to find ways to get business deductions and save on taxes. The Solo 401(k) is one of the best ways to do both.
Name a time where you failed – and how you recovered from it.
When I first quit my job, I was doing one-on-one coaching and I was taking on way too many clients. My very first month being a full-time entrepreneur, I took on 60 clients in one month anAd most of those calls were 2 hours long.
By the end of the month I felt like I was drowning, and then, because I usually booked out months in advance, the next month was just as bad.
While being able to teach this many people made me a better educator, it also helped me realize I needed to find a way to scale that didn’t require me to trade my time for money.
That’s when I decided to launch the Lazy Investor’s Course. It has completely changed my life. I went from working 60+ hours a week to 10-15, and making four times what I used to make in a month.
And now? I don’t do any one-on-one coaching.
Tell us a major win you’re proud of.
My claim to fame is that I was able to increase my net worth by $200k in about two years. Then $300k in three years – before the market dips. Now like everyone else, my portfolio is down.
But I think what’s cool about me increasing my net worth quickly, is that I didn’t do anything special. I’m a lazy investor. I rely on index funds and dollar cost averaging to build my wealth.
Index funds are amazing because it’s like buying an entire box of chocolates rather than one candy bar. When you’re buying one candy bar, it’s similar to buying a single stock or bond. But when you buy a box of chocolates? You get all the different chocolates inside that box, for one low price.
Index funds are designed to perform according to an index, aka a grouping of stocks. So, when you buy an S&P 500 Index Fund, you’re essentially buying a small share of all the stocks inside of the S&P 500 (500+ stocks!).
Why try picking individual stocks when this option is available? Trying to pick individual stocks is not only a difficult way to invest, but it’s also high risk and often underperforms the market.
Index funds are an easy and effective way to buy all the stocks, and make sure you’re performing according to the market.
Dollar cost averaging (DCA) is just a fancy way of saying I put money into my investments monthly. Doing this in an automated way helps us not think about our investments as much, which is actually a good thing when you’re a long-term investor using index funds.
Thinking about our investments too much can lead to people panicking and pulling money out of the market at the wrong time. Instead, DCA’ing allows us to stick to the plan and keep buying no matter what is going on in the market.
As I always say: trying to time the market, aka buying when the market is low and selling when it’s high, is a losing battle. Most people fail to effectively do this over and over again, because it’s really hard to do, even for experts.
Instead, try to focus on spending time IN the market, and you’ll do better than most investors.
What made you join the Collective community?
I needed a partner that could do it all – bookkeeping, formation, my taxes. This stuff overwhelms me. And it’s not something I want to risk messing up.
It’s nice to know that I have an entire team behind me and I also have one less thing to worry about as a business owner.