Leadership Tea
On Leadership Tea, we talk about what it takes to reach the executive level, and how to thrive when you get there. Powerful leaders share their journeys, insights, and triumphs in conversations with hosts Shelby Smith-Wilson and Belinda Jackson Farrier.
Join us every other Wednesday to be inspired by the unvarnished stories of amazing executives who know what it's like to be "the only" at the table and who have succeeded regardless. They have proven leadership experience in their respective fields, from international affairs to the private sector to academia, and want to help others create their own success stories.
Leadership Tea
Smart Money Moves for 2026: Tips to Manage Your Financial Health | S4 EP 19
Shelby and Belinda are joined by two financial professionals from the State Department Federal Credit Union (SDFCU): Samia "Sam" Salmon (Vice President of Retail Business Development) and Josh Barrett (Manager for Overseas Operations). They share actionable, no-nonsense advice to help you get your financial house in order as we head into 2026.
We discuss how to think through competing financial priorities like paying off debt vs. building an emergency fund or making decisions about 401k withdrawals. Our guests also stress the importance of communicating with your lenders during periods of reduced income, furloughs, or career pivots.
Shelby and Belinda are both long-time customers of SDFCU. We encourage you to check out their services at https://www.sdfcu.org
In this episode:
- Why having good credit can be as important as having cash savings
- Should you dip into your retirement accounts?
- The importance of asking your lenders about hardship relief options
- Why reading the fine print of your loan paperwork could be a lifesaver
Watch this episode on YouTube: https://youtu.be/ahkVrnEM4Eg
Recommit is a Feb 28 half-day retreat for people who are ready for more clarity, courage, and alignment. You’ll experience a private venue, brunch, guided reflection, and leave with a roadmap for what’s next.
Click here to join the Early Bird list for lower ticket prices and early access.
Join us on February 28th, 2026 at the DC Wharf for the Recommit: Winter Retreat. Join the Early Bird list here.
We publish new episodes every other Wednesday.
Follow us on Instagram @Leadership_Tea for more inspiration and insights.
Welcome to the Leadership Tea Podcast, where we talk about not only what it takes to reach the executive level, but how to thrive and survive once you get there. My name is Shelby, and I am joined by my co-host Belinda, and we have a question for you. How are you prioritizing your money? Is it A building an emergency fund? B paying off debt? C saving for your kids' college fund? D, living your best life, or E other. These are some of the topics that we discuss with our guests today. And we are thrilled to have two financial professionals to talk to us about money management, taking care of your financial health, what does it mean to be financially secure, and a lot more. I am so pleased to welcome Sam Salmon, who is the vice president of retail business development, and Josh Barrett, who is the manager for overseas operations at the State Department Federal Credit Union. We think that this is a timely episode, given that the holidays are right around the corner. We're all closing out the year after you know, many of us experiencing some challenges when it comes to financial and money management this year. And it's just a good idea to get your financial house in order and set some financial goals as we prepare to usher in 2026. So we think you'll get a lot out of this episode, Sam and Josh share a lot of practical advice and tips on how to get your money right.
SPEAKER_03:Sam, Josh, thank you so much for joining us today. We're really excited to have you here on the Leadership Tea podcast. I would like to just kind of start with the bottom line up front. What's the one thing everyone should do for their financial health right now?
SPEAKER_02:I think one of the best things that you can do is budget. I know that's a four-letter word for a lot of people that has been for me in the past as well. But if you really take the time to just write down all of your expenses in the good times and the not so good times doesn't really matter. There's never a bad time to do it. And then that gives you the handle that puts you into control of your finances. It shows you what your expenditures are. It shows you what your income is, your true income, how much does your paycheck actually get deposited into your bank account. And then look and see what is the extra. Is there any extra? And also review your expenses and see what I can do to cut out or what can I reduce. And there's never a bad time to do that.
SPEAKER_01:I would agree with Josh. The one thing I was thinking about is also be very mindful of the interest rate environment because as you're budgeting, a lot of people don't know exactly how much you're getting charged on interest. So for instance, in the US, at least, it's very common to use credit cards. I personally use my credit card for everything because I'm quite junkie. And there may be a credit card that's lower and maybe doesn't offer all these points, but that's why the interest rate is lower. So just be very mindful of that environment, especially because we're going back in a cycle right now with inflation and everything that's going on in the Fed. I would say that's the biggest thing for me is just keeping track because maybe you make one salary on paper and then what you take home. So I want to make sure that my finances are in line with what's happening right now.
SPEAKER_03:That's really helpful. Do either of you have favorite budgeting or financial apps that you use to manage these processes?
SPEAKER_02:Intuit is a good one. That one you do have to pay for. However, there's lots of free apps out there that you can look at. There's ones that look at, you know, your credit in addition to your budgeting. And it really gives you that overall picture. Those of us that reside overseas, we have to factor in the fluctuations in the exchange rate. And I know those that work for the government, they get cost of living adjustments and post allowance, or there's other types of offsets for the fluctuations in the exchange rate. But those are generally behind. And so we want to make sure that we're budgeting and not living right up to what we're earning. So make sure that you give yourself a buffer. And I think that's applicable both in the United States with the fluctuation in prices, cost of goods that are coming into the U.S. can fluctuate significantly. Make sure that you factor in those fluctuations in exchange rates and always set aside money for savings, whether that's going into investments or whatever type of savings vehicle that you're using, it's very important to pay yourself first. And so factor that in to your overall budget. It can be very challenging, especially when there's no paycheck or there's a reduced paycheck during government shutdowns or furloughs, rifts, anything like that. Maybe that's not the time. You might have to set that aside for that short duration of time, hopefully. But when you have that stable income coming back in, then you need to make sure that you're paying yourself first because nobody else is watching out for you. You have to watch out for yourself in those situations and make sure that, okay, I have that rainy day, that emergency spending account set aside. So that way I have something to fall back on and I'm not just relying on credit cards that unfortunately might get you into a deeper hole.
SPEAKER_00:It makes me wonder how do you kind of rack and stack financial priorities? A lot of our listeners have gone through furloughs, reductions, and force. Even our executive listeners are facing different types of career pivots and transitions. This has just been a very unique year in that regard. And so I'm just wondering as you're trying to pay yourself first and have an emergency fund and you're trying to be wise about investments, what advice do you have for people as you try to prioritize what are often competing priorities?
SPEAKER_02:I think it's important to look at your expenses. So going back to that budget list, take the time, first of all, write down any expenditures you have. What is the things you absolutely have to pay? You know, your housing, your utilities, your food, gas, car payments, insurance, those things. And then start looking at once you have that list, start then looking at the expenses involved. Oh, do I really need all of these options on my cell phone? No, I can take those out. And that's whether you're in a period of, oh my goodness, I don't have any money, or okay, I'm actually doing really well right now. And I need to see like, do I really need all of those things? Same thing for like your internet. Do you need the top plan or can you reduce it some? All of those little things, they might be$20 here,$50 there, but they all add up. If you have credit cards that you're paying a monthly fee or an annual fee on, are you getting the benefits out of that annual fee right now? I'm not saying that that's a bad thing at all. It totally depends on each individual situation as far as what credit cards make the best sense for you. And when you utilize those effectively, they can provide you a significant amount in rewards or income, things like that. On that same note, look at those point balances that you might have. Can you utilize those to offset some payments or some necessary travel that you have coming up? Things like that. Just go down that list. That's the best place to start. And then, you know, not just do it now, but continue to update that list as you go forwards. Insurance. Do I need all the insurance options? Am I properly insured for my house, my car, et cetera? And just go through those things and see where you can take things out. Maybe there's something that you need to add in because if something happens, like for a house or an apartment, are you properly covered in the event of a natural disaster or something like that? Just need to double check. There's no better time than the present to go in, sit down and review that and then plan for the future.
SPEAKER_01:Everybody's situation is different. But one of the examples that resonated with me of somebody that I was talking to that they were asking me, you know, I have daycare that I have to pay for. We're in, you know, Washington, D.C. It's$2,000 a month. And the problem is I'm home, right? And I'm waiting for the next opportunity. But if I don't pay or if I decide to take my kit out because I'm home, but it's not going to be forever. And it's a very competitive market, too. If you stop taking your kid to that specific childcare facility, then you may lose the spot there. So what do you do? It's$2,000 a month. Those are things that you may not always get to make a decision based on what you can save, because you could technically save$2,000 a month that month. But I think the concept of savings versus the concept of having the ability to access money. So to me, those are two interchangeable things. When you think about really wealthy people or people that are good savers, how often, if they have an emergency, do they dip into those savings? They don't. They just don't. So while I do encourage savings, don't get me wrong, I think there's a dual opportunity with making sure you have at least one or the other. Either you have good credit and ability to get funds right away, or you have that savings for that rainy day. Because in situations like this, you will not get to choose. You will not get to say, like, let me get this out of my budget. But it's just like, let me make sure I pay all my minimum bills at least. So my credit is safe. So then when I need the funds to access funds immediately, I can do that. And then on the other side, if you don't have the credit, then you must have a savings. You have to have one or the other. At some point, my partner lost his job. And from then we learned, you know, how to budget. And I think a lot of people are experiencing that right now.
SPEAKER_00:I'm so glad you mentioned the example of a working mom having to juggle. Okay, well, do I keep my kid in daycare or do I risk losing that spot? That is a real issue for so many, especially in this region. And I'm really glad that you made the point about, you know, do you choose having good credit or having an emergency fund? Because the reality is a lot of people cannot afford to have emergency funds. Speaking for myself, I am just now in the position of being able to set aside money for an emergency fund. But that's because I've been working for a while and some of my other bills have been paid off, but it takes time to get to that point. And I think as we're thinking about these various financial challenges that so many of us are facing right now, I'm curious to hear your thoughts about when is it appropriate to dip into your 401k or your thrift savings plan? Because sometimes, you know, if you've lost your job or your partner has lost their job, your back is up against the wall and you're facing like real financial big life decisions that you have to make. And I'm just wondering, when is it appropriate? Is it appropriate to dip into your retirement?
SPEAKER_01:First of all, for anybody out there that's not contributing to their retirement, needs to contribute. Like that's the one thing I will say. Doesn't matter how old you are, if you are not, please do. That's just you leaving money on the table and also matching up to whatever match your organization or company does. Very important. If you do the math on how much less you get a paycheck, it's not worth not saving. And that's a form of savings. A lot of people don't know that 401ks or TSPs will often allow you to take a loan against it up to a certain amount. And then you pay yourself back depending on how the math adds up, depending on what type of retirement we're talking about. Dipping into it, in my opinion, would be your very last resort because it creates a tax event that you have to be very mindful of. Josh, do you what would you say about that?
SPEAKER_02:I think that's a great perspective, Sam. I have been in the position before where I've had to take money from my 401k. It's a double-sided perspective. One thing is, you know, anything that you're taking out of the 401, of course, you're reducing your future earnings on because you don't have time to give you that extra value on the money over the long term. However, you also have to live with yourself. And that's where I think it's very important, you know, not to just give into your feelings, but be realistic of it. I mean, stress doesn't have a hard dollar figure to it, but it has a figure on our the effects on our bodies, on our relationships, on our decisions. And so I think that yes, look at the hard dollar cost of, okay, if I take this money out now, how much taxes am I going to pay on it if it's not a covered event? How much is it going to approximately cost me by withdrawing it? There's lots of free calculators out there that can do estimations on it. But then also look at what is the reality that I'm facing right now. If you have, let's say,$100,000 in debt that you've racked up through being unemployed or life happening, is it worth it to take this money? No. And I pay it off. Yes, I'm most likely going to pay taxes and have other implications from it. But am I going to feel that relief? Am I going to feel that pressure? It's gone. That pressure, not just on myself, but on my family. Yeah, it's a last resort, that's for sure. But I might take a hit now. But what is it going to set me up for in the future? We have these things and we have these tools in place to help out in specific situations. And so think about not just the dollar figure, but the impact on your on your life as far as the anxiety, mental health, things like that. And what is the cost associated with that? And we can't put a cost on that because it's really invaluable. It's priceless, if you will.
SPEAKER_03:As I hear you talk about that idea of releasing pressure and people making these difficult decisions, what advice do you have for people who need to release pressure with their lenders? How should they go about having those difficult conversations about what they can or can't pay when they reach these difficult moments?
SPEAKER_02:I think the best thing you can do, the number one thing, is reach out to your lenders, talk to them, see what they have. And especially during periods of government shutdown, the last couple that we've had, most financial institutions that I've seen that communications from them as far as, hey, we are here, we can help you. And that's both banks and credit unions. So don't ever think that you're just in this alone. You know, the financial institution has a stake in making sure that they get paid back. So they want to help you. I've seen credit unions be generally more likely to step up with more flexibility, but I've also seen banks do it as well. So you just need to reach out to them, talk to them about your situation. It may be something where they can do like a skip of payment, which, you know, just saving that one payment might be enough. It may be a situation where they can do a modification of the loan itself. Maybe you've paid ahead over the last year or two on this loan. And so if you can put off a payment or reduce it down to, let's say, 50 or 100 bucks a month, that might be enough to like, okay, I can take that money and I can use it for something else. So just look at the possibilities, talk to them and see what they have to say.
SPEAKER_01:Truly, it's just about encouraging everybody to call their financial institution and see what options they have. There's ways of skipping payments, there's ways of maybe doing consolidating within the same line of credit, that kind of thing. So just ask. Because you never know. And hardship can mean many different things. Hardship can mean, you know, environmental hardship. It could be a personal issue or lighten that. So call and ask. You know, do I qualify for this based on the hardship that I am experiencing? Not the hardship that the world is experiencing, but this is about me and what I'm going through and what options do you have?
SPEAKER_00:I really appreciate the advice that you're giving. It it sounds as though you're advocating that everyone take a personal approach. Like you said, you know, put the world aside. Yes, things are happening on a global scale that a lot of us are experiencing, but to the extent that you can personalize your specific needs, it sounds like that would help with your lending institutions. Another critical question for a lot of our listeners is should I focus on having an emergency fund or should I pay off my debt?
SPEAKER_01:Look at your financial situation. There's power in being able to write everything down and saying this is where my money's going. And sometimes that can be more stressful, and sometimes that can be relieving, at least knowing where you stand and what you can cut versus what you can't cut. But also, I don't think there's a magic formula for everyone. I think it's about your personal situation, what's going to give you the peace of mind that you need. Um, and to Josh's point, taking money out of a 401k, you know, it is it's still the last resort, but he said it. If that's gonna give me that peace of mind that I need in order to move forward and start over, then maybe that's the choice I'm gonna make.
SPEAKER_02:You know, you can say the same thing about investments. What is your risk tolerance? It's like, am I doing the risk of taking the money now versus having it later? Yes, there's always a price to any decision we make, there's a cost. However, what is going to allow you to sleep at night? What is going to give you that? You know what? I'm in this situation. This is not an easy decision to make. Almost a little easier when you're single, but when you have a family, it's like, what decisions am I making that is affecting my family? If I were to ask my spouse, hey, I made these decisions, what do you think? And they're going to be like, oh my goodness, I don't know why you made that decision. Or they're going to be like, you know what? I notice you made this decision. It was really hard. We made this decision together. We are in this together. This is a situation we've gotten ourselves into. And how can we resolve that situation and make the best of it? And that might mean making some hard decisions. Like I said, taking that withdrawal from a 401k, not necessarily saving as much as we'd like for a rainy day. I think no matter what, if at all possible, put away$10 every paycheck, something to start building it up because it's not necessarily about the amount, it's about the habit. And so once you have that habit established of, hey, I'm paying myself first, and you know that$10 is going to my savings and$990 is going to bills, it's still something because it's about building that habit. One other thing I wanted to mention in there as well is talk to your lenders or look at your loan paperwork to see if you have any kind of debt protection. And so that might be something that you signed up for when you first took out the loan. You have unemployment insurance on that loan and you've been paying it every month and you didn't even realize it. This is the time to use it if you're unemployed. So call your lenders and talk to them about that. And that's why it's so important to just have those conversations because they're the experts as far as what options are available. They can look at your loan and be like, oh, yes, Josh, you actually have unemployment protection on your loan. You just have to show that you're trying to look for a job, or, oh, we see your riff letter. So we can apply that once every 30 days, whatever the terms are around that. And you are like, oh, wow, I totally forgot about that. You know, what options are available? So it's just good to have those conversations and take the time to do the research and see what's going on. It's always better too, when you get those things, just make some notes on the application. Oh, I got this and I got, you know, credit life and disability protection. Because let's say that unfortunately you pass away, it helps whoever's left, your spouse or your family or whoever you've designated to be like, oh, it makes it even easier to see they had life protection on this. I could pay off this loan, you know, it's a covered event, things like that.
SPEAKER_03:You both have made some really great points. And I'd like to think I have my financial house in order, but you both have reminded me that it's important to go back and look at the fine print. So I'll definitely be doing that. So we're recording this during a time of the year when people are beginning to think about their overall financial planning and their overall financial health. And I'm curious to know, in your opinions, what does financial stability look like?
SPEAKER_01:You have to know yourself and what you're capable of, and then make decisions based on that, not on what's being offered to you. You have to know your options, but you have to know yourself. If you are a person that's organized and keeps track of everything, a solution that requires Tracking an organization may be the right thing for you. If you're not, you may want to get rid of the issue right away, right? And so it's gonna help you make that decision better. You have to know yourself. So to me, financial stability is having options and access to funds when you need them. That's financial stability, in my opinion. What you do with those funds, as long as you have access to it and continue to have access, then that to me is what that means.
SPEAKER_02:I think you put it very well, Sam, because when it comes to financial stability, I think it goes right back into what we were just talking about. Like what lets you sleep at night? It's like, how can I set myself up for success? And that's where I go back to the budget. I think it's so key that you take the time to write that down and document it. And whether it's on an Excel spreadsheet or a Google Sheet or, you know, using a software like we mentioned earlier, there's all sorts of options out there. Just write it down. Make it a living, breathing document so that you can go in there and adjust. Hey, here's what's going on. It gives you that live, up-to-date picture of what reality is. You can't deny reality. Reality is reality. I might not like it. I might not like what I see, but at the same time, it gives you that power of knowing this is the facts. Facts don't lie.
SPEAKER_00:Facts don't lie. What I'm really loving about this conversation is all of the tie-ins to leadership. You know, I'm leaving with three really concrete nuggets. Not having a scarcity mindset, which is something that Belinda and I have talked about a lot in our other episodes, when it comes to knowing your options, knowing your financial options. You know, as you mentioned, Josh, is there some sort of additional insurance policies that you have with some of your lending institutions that you don't even realize? Um, being self-aware, like knowing what are you comfortable with, what gives you peace of mind? If borrowing against your TSP or your 401k is going to give you the peace of mind to make it from one month to the next financially, then so be it. And then the other piece that you all have reiterated throughout this conversation is having a personalized relationship with your lending institution, which goes back to another point that Belinda and I have talked about throughout the podcast, which is, you know, to build relationships and having a relationship and being able to communicate with your lender and with your banking institutions, you know, is really important. So thank you for all of those very timely nuggets on managing your financial health. So I want to shift the conversation a little bit to the credit union. Because Belinda and I are faithful patrons, we've both been members of the State Department Federal Credit Union for more than 20 years for each of us. We both have various financial instruments with the credit union, you know, financing vehicles or having personal checking accounts, saving accounts for ourselves, for our partners, for our children. We are very much invested in the credit union and thank you for your service. And we want to just ask you some specific questions when it comes to membership. Do you have to be a federal government employee or an employee of the State Department in order to be a member of the credit union?
SPEAKER_02:No, actually, you don't. We have over 200 different employer groups from the Department of State to organizations that have American citizens around the world or different groups that people might be a member of that they can easily join. There's no cost to join. Everybody has to have a dollar in their account for their membership and ownership of the credit union. So you just go online to our website. You can easily look and see which type of employer group that you are associated with or could be associated with, and then select that group. And it's very easy. It takes about five minutes to open your account.
SPEAKER_03:That's really helpful. Sometimes it can feel a little overwhelming when you join a new institution. And so I'm wondering: are there any particular products or services that people aren't normally aware of that you offer?
SPEAKER_01:A ton. We have a ton of new products and services. We have really focused in the last couple of years on revamping who our membership is. And a lot of members abroad, they're underbanked or unbanked. So we have really focused in the last couple of years on making sure that people abroad are able to still have a financial relationship in the U.S. So I would encourage anybody that's currently a member to go back and look at all the services that we have.
SPEAKER_00:It's really good to hear that you don't have to be a member of the State Department or a federal government employee to join the credit union. For those who are attached to the State Department, what sort of public service announcement would you give to them for people who are not even aware that the credit union exists?
SPEAKER_02:I think the biggest thing that I would say is, you know, you may not be at a stage in life right now where the membership is beneficial to you. However, just because it's not beneficial right now doesn't mean that it won't be beneficial in the future. So, you know, especially the fact that it doesn't cost you anything to join, take advantage of it. Sign up for it. If you find in the future you're like, wait a minute, I am a member of State Department, Federal Credit Union. Let me reach out to them and see if they can help me with, you know, whatever's going on. We're willing to assist you to see what is the best thing. Like when you're going to buy a car, you know, of course, you're getting pushed to the generally the most expensive car with all the bells and whistles and all that. That's not us. What we're looking for is solutions. We want to provide you the right solution for you. If I don't do what's best for you now, then you're going to remember that. I want to be that person that you know what two years from now where I told you, no, we don't have the best solution for you at this time. And then you're like, wait a minute. I went and talked to Josh and he gave me that advice. Actually, I think that this is the right thing for me and come back to that in the future. That's what we're more interested in, and that's our primary concern is making sure that you're set up for success.
SPEAKER_03:Great. Yeah, as we wrap up, I feel like I'm leaving here with a renewed sense of needing to reflect on my budget, really thinking about what choices do we need to make in our household so that we can sleep at night, and making sure that we have the relationships with our financial institution to be able to have those conversations and think about all the options that are out there. And I'm also reminded by this conversation today to remain curious about what my financial institutions are offering and how they can support me and not being afraid to have conversations and build those relationships. So I want to thank both of you for those words of wisdom. As we close, are there any final words of general advice or is there anything you'd like to share as we leave?
SPEAKER_02:Reach out to your financial institution and see what might be available, especially as we've just gone through these challenging times. They may have different types of loan options or something like that. You could do a consolidation. Or if you're traveling, look to make sure you have a credit card that doesn't charge foreign transaction fees, especially traveling internationally. Things like that. If you're going to the ATM, make sure that you're practicing safe uh security standards as far as you know, protecting your pin, making sure it's a ATM that's in a well-lit area. There's no skimmers on the ATM, things like that. Or even at the gas station, unfortunately, those can be quite prevalent, especially during the holidays. So just make sure that you're watching out for yourself. The budget is protecting yourself. It's setting yourself up for success. Traveling is your operational security to borrow a military phrase, your OPSEC, just to make sure that you're safe and secure. And that's where we with State Department, Federal Credit Union, especially want to make sure that you're protecting yourself, whether it be through your digital banking, your debit card, your credit card checks, if you write checks, things like that. We want to make sure that you're safe and secure, especially during the holidays. We want to be there to support you if you need it from a security perspective. But hopefully you can rest assured that your finances are taken care of and you can enjoy the holiday season.
SPEAKER_01:Yeah, I would echo everything that Josh said, of course. I love listening to him as well. Um so a couple of things I would say. It may sound self-serving right now because we work at the State Department, obviously, but I will say, in my 20 years of 20 plus years in banking, I've never worked for an institution that really wants to make sure that we are doing what we say we're doing. So the only way to keep up with everything and all the options that you have is to sign up for the marketing emails. It is unprecedented times what we're going through. So you want to make sure that you know what's happening right now. So even if you don't have to take advantage of a solution today, you may need it in the future. So then you're gonna know, oh, I'm gonna call SDFCU and see if they're doing the same thing that they did last time. That would be my advice.
SPEAKER_03:Thank you both for that. Sam, Josh, you've both offered a lot of great advice today. One thing that I would encourage our listeners to do is to go to the SDFCU website and learn more about the different services and products that you offer. You know, so many of our listeners live outside of the United States. And when you are living a global life, you have unique challenges and unique needs. And so it's important to have institutions behind you that understand the nuance of those needs. And so for those of you listening, I would really encourage you to check out the website. And we'll also put some information about the credit union in our show notes today. If you are listening on Apple or Spotify, that is great. And we would appreciate a comment, a review. That would be wonderful. But I really invite you to come over to YouTube where there's it's just we're having a party over here. Come see us, come like and subscribe. You'll get to see Sam and Josh. You want to get to know them. So please come over and join us on YouTube. As always, we appreciate your listenership and we appreciate you coming to Zip Wisdom and Stir Success with us. And we'll see you in our next episode. Thank you.
