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Interview with Ellie Kay
It’s a thrill to introduce you to Ellie Kay. She’s a best-selling author, internationally acclaimed speaker, and founder of the “Shop, Save and Share” Seminars. She’s trademarked as America’s Family Financial Expert™. Ellie is a regular guest on the international show, CNBC’s #1 rated “Power Lunch.” She’s married to a test pilot and is the mom of five school-aged children, two adult children, and is also a new grandmom! Thank you for joining us here at CWO, Ellie! Can you tell us about the concept of 1/2 Price Living? Is it even possible in this day and age to live on one income?
I put my high paying job as a broker behind me in order to follow him around the world—and I never regretted it. However, we had $40,000 of consumer debt and little to show for it when he joined the military. I learned to put my business background knowledge into play regarding matters of the home. As a result, I began to find all kinds of creative and fun ways to cut costs while maintaining a satisfying quality of life. Bob took a $15,000 a year pay cut to serve his country and even so, within 2.5 years, we were debt free while living on one income. It can be done! My mom is from Spain and has a wonderful accent. She used to tell me “Ellie, chew need to save de money when you go food chopping.” Even today, I believe we can cut our bills in half when we shop, thus 1/2 Price Living is all about becoming a “Super Chopper” where you take your life and cut it in half. I believe that it IS possible to live on one income; it takes creativity, know-how, and the heart of a super chopper--but it’s truly worth it! In your book, you say, "Half-Price Living means you can have half the stress, because you're not balancing work and home." This was an eye-opener for me. Can you give us more details about how 1/2 Price Living can reduce our stress? I think of a plaque I read years ago that featured a frazzled looking woman with a broom and dust rag and it said, “Housework makes you ugly!” I agree. The stress of keeping a house, paying the bills, stretching the dollars and trying to be content is just too stressful to make you beautiful. I’ve also found that the reason that marriages and families are stressed is that there are far too many arguments over money. When mom moves back into the home full time, or runs her business from her home, she’s available. This availability translates into ways that she can save money, make money and pay back the money you borrowed from others. When debt is gone and the headache of how to balance work and family is also gone, the result is peace, freedom and beauty. Because after all, stress just makes you ugly! What percentage of working moms would choose to stay at home if they had opportunity? According to a survey at ClubMom.com, an amazing 89% of working moms who responded said that they would stay at home if they had the financial ability to do so! It didn’t matter if they were young or old, Christian or non-Christian, single or married—the bottom line was the same. Moms just wanted to go home! What are some of the factors you recommend for a family to take into consideration when making this decision? There’s an old Southern saying that I love, “If you aim at nothing, you’ll hit it every time!” We have to have a solid plan when it comes to making the transition from two incomes to one. I start by analyzing the second income with a “Working Mom” chart. The online tool for this is found at www.crown.org, and it’s a fantastic way to see how much money mom actually contributes to the household after all the related hidden expenses. When families add up the obvious costs of working outside the home (such as childcare and transportation) and they add in the hidden costs (more meals eaten out, a professional wardrobe and hairstyle, lunches eaten at work, etc), they find they’re not making nearly as much as they thought they were! Are there specific steps that couples can take to transition into 1/2 Price Living? Yes, there is a series of seven steps that begins by analyzing your present two-income budget and ends with a new budget that will allow the one income lifestyle. Here is the short version of the steps that will help you find a target to aim at so that you can hit it every time!
Ellie, do you find there’s a certain attitude needed among those who choose to live on one income? When I was a little girl, I used to love to watch “Little House on the Prairie.” As a young military wife with lots of babies, I watched the reruns and imagined life as the Ingalls family. I felt like a pioneer; we were constantly on the move, and I was constantly having children—or so it seemed. I think a bit of that adventurous spirit is necessary to take the plunge and try life on one income. But even if you don’t have pioneer blood running through your veins, you can still follow the steps to a single-income lifestyle and find it to be as satisfying as one who stakes their claim in a brave new world. In your book, you encourage parents to involve their children in financial discussions whenever possible. What are some easy ways to incorporate the kids?
In our family, we delegate some of the fiscal responsibilities to our children, allowing them to volunteer for their area of expertise. There are a variety of jobs for kids from 2 to 20. These kid “jobs” help us live on one income. For example, the “Surfer Dude” helps to research the best buys on everything from electronics to groceries. “Le Chef” will cook a meal a week. The “Cheetah Chick” is a personal shopper who reports good values found at the mall, thrift shops, garage sales and consignment stores. There are a dozen other jobs outlined as well, but I especially like the “Snuggle Bunny” which usually goes to the baby of the family, who may be an infant or toddler and whose sole responsibility is to provide hugs and kisses and snuggles—a critical element in family unity. You make this lifestyle sound like fun! And I hear you’re a legend at certain grocery stores for racking up savings in coupons. What advice do you have for the rest of us? Yes, I like to remind myself that Beth Moore broke into the Christian world as a Christian aerobics instructor and is now being used as one of the most beloved Bible teachers in our world today. Similarly, I started out as the “Coupon Queen” and then morphed into “America’s Family Financial Expert®” I don’t know if Beth does aerobics anymore, but I still keep my hand in my coupon box on a regular basis. The money it provides me is like the chocolate garnish on top of my favorite seven-layer dessert! You CAN cut your food bill in half by layering the savings at the grocery store. My basic seven layer recipe is: 1) Use store cards (sometimes called clipless coupons) Even though I’ve transitioned into more financially involved topics in my work, I never completely set aside my crown. As a result, I saved our family over $8,000 last year on coupons which is equivalent to $14,500 earned on the economy (by the time you pay social security and taxes.) This leaves me extra time and money to take an aerobics class at our local gym. I keep hoping I’ll run into Beth Moore. :) Wow! Your savings are simply amazing! I’m pumped to give it a try! You also advocate the idea of home businesses to supplement one income living. Can you give us some specifics for those who are interested in starting a home-based business? There are a few things that really get me up in the morning, and this is one of them! I’ve had the joy of meeting a wide range of women who have all kinds of home-based businesses, and it’s been a delight to share some of their strategies with my readers. One of the best pieces of advice I received was to “follow your passion” when it comes to your home business—that is a primary key to success! If you love your own kids but can’t stand other people’s kids, then you probably should not open a home daycare center! But if you love jewelry, then you might want to join a direct service company that specializes in trendy pieces that are easy to sell. Another tip is to follow some advice I learned from the movie “I-Robot.” The main character had a hologram to help him navigate his way around saving the world. The hologram said, “You must learn to ask the right question.” There are about 30 questions you need to ask before choosing a direct sales company. Here are a few starter questions:
Can a family living on one income still give to charity and others in need? When I was seven years old, I started my first business. I got a “buzzer” handshake gadget from a box of Post cereal and charged my female classmates a nickel to shake their hand so they would get “buzzed.” I charged the boys three nickels because I wanted compensation for the agony of having to touch a boy’s hand. In two weeks I earned $10, which is a lot of handshakes! That’s hilarious! My mom and dad told me that $1 of that money didn’t belong to me; it was the Lord’s tithe. I still vividly remember putting my dollar into the offering plate the next Sunday. I learned that the sweetest dollar I ever made was the one that I could give away. I believe that Malachi 3:10 tells us to bring in the whole tithe to God’s house and to test God in this idea of giving. He will bless us in such a way that we cannot contain all His blessings. I think that God honors those who honor Him and paying our tithe, giving to charity, and providing for others in need is a direct way to honor the concept of God’s place in our heart and in our lives. I’ve spoken with middle class, one-income families who gave away a second car (rather than selling it) and found that God provided them with a newer car. I’ve interviewed others who gave away their last box of cereal only to find two grocery bags, full of cereal, left at their front door. You simply cannot outgive God, which is the reason I encourage radical charity--even if it means earning the money to give by touching a boy’s hand when you give him a buzz for his three nickels! Why do you recommend reading the book of Proverbs to help us become wiser with our finances? Proverbs is chocked full of good stuff! The Bible has more to say about money than any other single topic, and the majority of that wisdom is found in the book of Proverbs. Here are a few of my faves and their teachable topics: Work Ethic: “Go to the ant you lazybones; consider its ways and be wise.” Prov 6:6 Debt: “The rich rules over the poor and a borrower is a servant to the lender.” Prov 22:7 Materialism and Desires: “All deeds are right in the sight of the doer, but the Lord weighs the heart.” Prov 21:2 Generosity: “Whoever is kind to the poor, lends to the Lord and will be repaid in full.” Prov 19:17 Investments: “Wealth hastily gotten will dwindle, but those who gather it little by little will increase it.” Prov 13:11 These are truly inspiring verses. I have one more question for you. We know you're adventurous, but did you REALLY bungee jump wearing a business suit? :) Yes I did—high heels and all. Plus, I have the videotape to prove it! :)
Do you have any closing advice for us? I know that there are some of you reading here who are discouraged about your finances. You feel like you’ll never get a grip, and maybe you’re even thinking of doing something radical in light of the grief and despair. I know how you feel. I’ve been there, done that, have the t-shirt. But I want to encourage you that “El Roi” is the God who sees and he sees what you’re going through. He understands the overwhelming depth of your pain and is Jehovah-Sabaoth, the Lord of hosts, who is able to help you fight this battle. He is also Jehovah Rapha, the God who heals, and He is able to heal your money pains. Finally, he is “Adonis," the mighty breasted one who brings you comfort and cares for you more than you will ever see this side of heaven. Run to Him, crawl up in His lap, be His little snuggle bunny for a time and when you get down again, you’ll be ready to go out and face the challenge. He can. He will. Right now. You can learn more about Ellie Kay on her website, www.elliekay.com.
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CWO Cover
Bonnie Hooley
When I met my hubby, many moons ago, he said “We’ll join the Air Force and see the world!” What he showed me was five babies in seven years and eleven moves in thirteen years! 
I’m a big advocate of the “Family Meeting” in order to teach kids the basics of a work ethic, budgeting and how to spend money wisely. But it doesn’t have to be a bore for the kids, and it certainly doesn’t have to be over their heads if you stress an age-appropriate approach. 
