Name: Grace Bonney
Age: 29
Location: Brooklyn, NY
Why we care: Grace Bonney started her career as a promotions intern at an independent record label before emerging online as a design megastar. Bonney's site, Design Sponge, gets more than 60,000 unique visitors daily, and has become a center for DIY projects, before-and-after makeovers of rooms and furniture, and quirky and cute design trends. The New York Times has called Bonney and D*S "The Martha Stewart Living for the millennials," and a 400-page book based on her popular site, Design*Sponge At Home is slated to come out in spring 2011.

So when did you start Design Sponge?

I started it basically because I was bored and wasn't finding the type of design elements I was interested in. This was in 2003 when I was living in Williamsburg. I would go out to Brooklyn design shows and take pictures of small gallery shows that nobody was talking about and started putting them on a blog I thought I could use as a portfolio down the road. It was sort of the right place at the right time with the right content. There weren't a lot of design blogs out there yet and it clicked with an audience.

How did your site get noticed?

The first huge chunk of readers came from The New York Times, which was doing a story about online design communities. I made the cover of the "Home" section because I was the only girl in the story. I went from having 1,000 readers a day to 10,000. It was a huge leap in traffic. I didn't care too much about ads then. I was making a couple hundred dollars a month pre-tax, and used it to buy small stuff like groceries.

Once you got the publicity, how did you get D*S to become more profitable?

At the end of 2008, House and Garden closed unexpectedly. I was working there as a freelance consultant and started to panic. I thought, "I should invest more time on the site." That year, I broke into savings, moved it onto an actual URL, did a redesign and started treating the site like a big investment. It made a huge difference. D*S went from being supplementary income to paying for me to live.

Did making your own living worry you at all?

I was scared at first. I was working all hours of the day trying to make it sustainable and doing some freelance work for three or four publications to make myself feel a little more stable. What's interesting is that when House and Garden closed, I benefited because their readers moved to the Web, and advertisers were looking for new places for promotion. So I got lucky and got this influx of ad revenue. I now have about 20 contributors, five who contribute weekly.

Did you have a lot of money growing up?

I grew up in Virginia Beach. I was in a middle class family, and my dad worked for an ad agency, and my mom worked as a special ed teacher for awhile and then stayed at home. When I was in elementary school, my dad was laid off from his agency and my mom found a job through friends working at an antiques and flower shop.

Was that a hard time?

We kept our house and everything. I remember feeling a little shaky. We didn't go on vacations. I remember my parents warned me that it was not going to be a big Christmas that year. My dad ended up starting his own business within a couple months by gathering all of his contacts from his old agency.

How Mad Men! Did this teach you anything about money?

Sort of. I did some babysitting and I saved the little bit of money I earned. I didn't really go out anywhere until I was 16 and had a car. I was probably like every other kid who saves up exactly what she needs, and then goes out to buy a New Kids on the Block doll.

What was your first real job?

My first official job was at a country club working in a restaurant as a waitress. I applied for the job because I had a crush on a guy who worked at the club as a caddy. I was making just above minimum wage, but it was fun to hang out at the club and get free food and drinks. But it was the first time I got a real paycheck with taxes taken out, and I would bemoan the fact that my paychecks were so small.

You got a job because of a guy? How'd that work out?

Good! We dated for two and a half years. He figured out that I liked him after I started working there. I hung out with the caddy boys and gave them free Cokes when they came into the restaurant.

Were you saving money for college?

When I was thinking about college, the biggest consideration for me was how far the college was from where I lived. I just wanted to be far from home as possible. I looked at NYU and a few other schools, but I ultimately chose to go to NYU after I got a scholarship.

Were you happy with your decision?

Oh, I hated NYU. I realized that what I needed was a small school where I could get some attention — not a school where you identified yourself on papers by writing your social security number. I was really blown away by the culture there. There were these Northeastern rich kid slackers who would complain that school was too hard. I was studying journalism and didn't feel like I was being academically challenged. So I decided to leave the program [and transfer to William and Mary].

You ended working as a record-label intern in New York. How did you survive?

My grandfather had left me some money that my dad gave to me after I graduated. My dad preferred that I use the money to take some sort of life-expanding trip, but instead I was like, "Sweet! I got six months worth of rent!"

How did you move from a record label job to design?

When I was in college, I was a total hippie and was obsessed with jam bands. At the record label, I ended up being the assistant and contact for Mike Gordon from the band Phish, who was putting out a solo album. It was amazing. I spent a lot of time with him. Well, Mike got in a lot of trouble. He went to a Dead show at Jones Beach and took a 9-year-old girl backstage because he wanted to take pictures of her without telling her parents. The girl's dad was a Hell's Angel leader and they beat him up. [Gordon was later cleared of any wrongdoing, and he and the girl's family called it "an unfortunate misunderstanding."] I was house sitting when it happened, and I woke up to all these calls from Rolling Stone and Access Hollywood. I started working with the Phish crisis team doing PR, dealing with all these editors. I really enjoyed that process and got some really good PR skills. I ended up working at a design PR firm that really got me to where I am today. I met a lot of magazine editors and lots of artists who ended up being great contacts.

When did you leave the firm?

I left to get a job at House and Garden magazine. I was hired as a freelance consultant to help them build their website. This was during the heyday of Cond Nast and they were paying me an obscene amount of money. And I hoarded it. I'm a natural hoarder and I like to have money with me because if there was an apocalypse or something, I'd want my money readily accessible. I saved most of the money because I only spent money for rent and going out to eat and I didn't have any debt.

You should really put that money in the bank.

I have! My husband's helped me get a savings account, an IRA and with investing. He works with me now as a partner on D*S. I had this thing about bank accounts and was a cash heavy person. I've transitioned now, but I'm still cautious and careful. It's a byproduct of how my dad was careful and had to budget for our family, and that's all really trickled down to me. I always pay off all my credit cards. I don't spend what I don't have.

Your husband now works with you, too. How's that?

My husband left his job in June. We thought, "Oh, this is scary." But it's also exciting. He's in charge or running our ad program, which requires a lot of man hours. It's really been great so far. He lets me take control of the editorial side and I let him do his thing.

And Artisan Press is publishing your book next year!

I'd been fortunate enough to be approached by book editors since about 2006, but had been waiting for the perfect idea and perfect publisher. After hearing from Artisan I decided it would be the best fit for us because they understood and appreciated my desire to do a sizable hardcover book that would cross a couple different categories like DIY, home and floral.

What sorts of things are in the book?

It's over 400 pages. We have 50 DIY projects in the book that range from hanging shelves made from found wine crates and do-it-yourself upholstered headboards to colorful handmade bird feeders, and modern tiki torches for the backyard. We'll also have 50 reader-submitted makeover projects with price points and how-to tips, ranging from furniture to full home makeovers. There's also a massive resource section in the book for all our favorite, and trusted, online shopping sources.

Do you spend a lot on design items?

Yeah, until recently. I'm a big furniture spender and like to look at high-quality things as an investment, but I also love going out for food and traveling. I like handmade furniture, and vintage items. One of my favorite vintage stores is Scout in Chicago. I also love chairs. My apartment is filled with them. I'm also a fabric junkie. I bought a big six-foot-by-six-foot piece of Otomi fabric, which is this intricately embroidered fabric from Mexico that cost a few hundred dollars. It was one of my biggest investments, and I used it to make an incredible headboard. I think I saved about $500 by doing it myself.

Any advice for budding designers and artists?

The best way to succeed is to get all your ducks in a row. Get an accountant and a lawyer. I know a lot of small businesses that would have thrived, but didn't because they couldn't get it together. People say, "Measure twice, cut once." Get all that business stuff out of the way, and save all of your brain for making art.

Are you rich now? And other invasive questions for notable folks, in previous episodes of Other People's Money:

• Why you're buying the wrong coffee: The world's best barista Michael Phillips
• Even superstar web developers take pay cuts
• Butcher-to-the-stars Evan Lobel: Would you pay $48.98 for a pound of steak?
• Money lessons from The Big Gay Ice Cream Truck
• Always paying with cash: The Awl's Choire Sicha