In a world saturated with financial advice that isn’t tailored to the entertainment industry, Alex Pendleton offers a refreshingly straightforward philosophy: invest in yourself first. Pendleton, a manager at Netgear’s ProAV Systems Engineering department, recently sat down with Artistic Finance podcast host Ethan Steimel and LDI’s Ellen Lampert-Greaux to share his personal finance journey. The conversation touched on everything from budgeting to long-term investing, offering practical advice for live event professionals.
A Simple, Powerful Philosophy
“Pay yourself first,” Pendleton advises—a mantra he credits with transforming his financial outlook. By prioritizing savings and investments, even before tackling bills or discretionary spending, he relies on a system that prioritizes financial growth over short-term indulgence.
This approach, Pendleton notes, is especially vital in today’s economic landscape. “It’s an ongoing strange financial environment,” he said, stressing the importance of carving out resources for future security, no matter how tight the budget.
The Art of Budget Squeezing
Pendleton doesn’t preach sacrifice for its own sake. Instead, he suggests examining monthly expenses for opportunities to redirect funds into investments. “Look at your bills and try to squeeze them tighter,” he said. “You don’t have to go without, but there’s often room to free up resources.”
For host Steimel, this advice hit close to home. Reflecting on his own decision to cut cable television—a move that saved $1,200 annually—he admitted he didn’t immediately reinvest the savings. But the discussion with Pendleton inspired a renewed focus, prompting him and his wife to contribute to their son’s brokerage account.
Investing Beyond the Headlines
Pendleton is no stranger to financial news. A regular listener of Bloomberg, he finds value in observing market trends. Yet, he cautions against letting headlines drive investment decisions.
“The news is about perception,” Pendleton explained. “If you don’t want to chase ups and downs, focus on long-term investments like index funds. They’re not making headlines, but they churn along steadily, making them ideal for retirement savings.”
Steimel echoed this sentiment, calling index funds a “business-as-usual” approach to wealth building.
Cash is Still King
Pendleton also draws inspiration from financial guru Dave Ramsey, advocating for a “pay cash for everything” approach. While not always feasible, he sees it as a way to maintain financial freedom and avoid debt traps.
Steimel highlighted a related perspective from the website The Financial Diet: before deciding if you can afford a purchase, ensure you’re saving for retirement, maintaining an emergency fund, and managing high-interest debt. Only then, the site argues, can you responsibly consider additional spending.
Networking as an Investment
Beyond personal finances, Pendleton emphasizes the value of professional connections. He credits networking with helping Netgear forge new client relationships, including one relationship from a booth walkup at LDI that has resulted in seven projects to date.
Pendleton will be attending LDI 2024, where he will teach a full-day networking class: Netgear: Designing A Network For Live Events.
Lessons for Life
For Steimel, Pendleton’s approach to money offers a blueprint for financial security: automate savings, invest aggressively, and avoid financial decisions driven by fear or impulse.
“It’s not about perfection,” Steimel said. “It’s about creating a routine that works for you and sticking to it.”
As the conversation wrapped, Steimel shared one final takeaway: “Invest in yourself first. Then build from there.”
Watch the Full Interview: The complete conversation with Alex Pendleton is available on the Artistic Finance YouTube channel. Visit artisticfinance.com/172bonus for more.