Disclaimer: Good Day, Readers. WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.
WE NEED TO TALK MORE ABOUT MONEY- A LOT MORE!
A co-worker who worked with my wife did not contribute to her 401K for the first 21 years of her employment. The company matched the first six percent. What if someone had convinced her to start with $10 per month and grow that number as her income increased? It is NEVER TO LATE TO START. She finally started contributing in 2021.
A friend repeatedly told me he is worried his son and wife are spending more than they earn {using credit cards} and failing to invest for their future. Despite my suggestions, he does NOT talk to his only son about money. What if he spoke to his son and he listened?
WHY TALK ABOUT MONEY
- There is a $4 TRILLION retirement income gap in the U.S., Meaning ~40% of Americans, some you know, maybe even love, will run out of money in retirement. Think about this stat the next time you are at a family holiday dinner. Four out of ten people sitting at the table may run out of money at a time when there is ABSOLUTELY NOTHING they can do about it.
- We are educating young people by talking about money in plain English.
- White families have ~$184,000.00in wealth compared to ~$23,000 for black families. This large gap has existed for DECADES. It can be closed.
- Maybe you were lucky and had people who talked about money, investing, etc. Share YOUR BLESSINGS!
- We turned a conversation about money into something EVIL. WHY? We equate it to standing in church and broadcasting you have a sexually transmitted disease! Heaven forbid we have fact-based conversations that increase our financial literacy on the stock market, annuities, Federal Reserve Rates, Real Estate Investments, how much life insurance is needed, etc.
- We learn by talking with and helping others. Since I started writing this blog, I have read and learned more. Learning MUST be continuous.
Too many avoid discussing that four-letter word- MONEY {ok spelling never was my strong competeency} relying on trial and error to manage their finances. I utilize trail and error in photography. I know from experience it is a STUPID strategy for investing my HARD EARNED MONEY!
RESULTS:
- The average American scores an F grade in Financial Literacy, especially for groups in lower socioeconomic classes.
- Twentynine percent of millennials have overdrawn their checking account in the prior 12 months.
- Among millennials with mortgages, 24 percent have been late on mortgage payments.
- Although 36% of millennials have a self-directed retirement account, 22% either took a loan or made a hardship withdrawal in the prior 12 months.
- Forty-six percent of Americans lack emergency funds that cover three months plus emergencies such as sickness, job loss, or other kinds of economic downturn, such as a RECESSION and double-digit percent inflation.
Reference Source: https://tokenist.com/investing/financial-statistics/
DWAYNE WADE BLEW THROUGH $10 MILLION! THEN HE FINALLY MADE HIS ONE PHONE CALL!
Dwayne Wade, a retired NBA Basketball player, said after signing a $10 million contract to join the NBA, “he had no one to talk to about money.” So- he {WAIT FOR IT} spent it. ALL OF IT! While the amount is atypical, the inability to talk about money is endemic.
Later Wade’s Mom, a friend of Magic Johnson’s Mom, put him in contact with Magic, who made the bulk of his wealth AFTER retiring from basketball.
TALKING TO THE RIGHT PEOPLE!
You increase your financial literacy by (wait for it) engaging with financially literate people. As a bonus, you get to sing years earlier: “Take This Job And Shove It.”
ADVANTAGES OF TALKING ABOUT MONEY
It helps you learn budgeting and planning.
Find out whether you’re underpaid for your work.
Hold your spouse, friends, and family members accountable (and vice versa) if you talk about money.
Dispel the stigmas that come with talking about money.
Help your kids develop financial literacy by talking with them about money.
START TALKING, BABY!
I learned from others through open and honest conversations about money, investments, risk, mistakes, etc. Early in my career, I learned about investing in a 401K Plan, Mutual Funds, Real Estate, Bonds, etc., through conversations with my peers and all-time best boss, Wendell Wiliams.
START! If you read this far, I’m betting you are financially literate. CONGRATULATIONS! Now, immediately start talking to people you care about.
Do not stand by and watch the people you care about fall into that 40% of Americans who will not have enough money to last through retirement! START TALKING!
CONCLUSION
Some of my former direct reports have thanked me for pushing them (apparently multiple times and BLUNTLY) to invest in their 401K, real estate, etc. They recalled the conversations, and they took action. My ex-wife thanked me for “forcing” her to add to her 401K plan each year. I believe she used other words at the time!
Think about this next time you are at a family dinner, ~40 percent of your guests may run out of money at a time in their lives when there is ABSOLUTELY ZERO they can do about it.
The best way for parents to educate children about financial literacy is by modeling healthy, intelligent behaviors, being open, and for heaven’s sake – TALKING ABOUT MONEY!
Talk to your kids, so they develop confidence and financial literacy. Welcome them to the table when talking about budgets, bills, credit cards, rent, etc., and introduce them to money basics. Unfortunately, most will NOT learn this in the classroom. If you are comfortable talking about money, they are more likely to absorb that wisdom and confidence and enter adulthood prepared to manage their finances independently.
“Most of us learn our money habits from our parents; if you are blessed to have financially literate parents – GREAT.
SHARE YOUR BLESSINGS!
LET’S MAKE SOME MONEY, AND LET’S HELP OTHERS!
WHAT SUBJECTS DO YOU WANT TO READ NEXT? WHAT QUESTIONS CAN I ANSWER? UNTIL NEXT TIME!
YOUR GREATNESS IS NOT WHAT YOU HAVE; IT’S WHAT YOU GIVE! – SOME CHARITIES I SUPPORT
St Jude Hospital: https://www.stjude.org/
Wounded Warrior Project: https://www.woundedwarriorproject.org
Folds of Honor: https://foldsofhonor.org
Wilson’s No-Kill Animal Shelter: https://wcnkas.org
TRUST ME – YOU WILL LIKE THE BELOW BLOGS!
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USING CRITICAL THINKING IN PURSUIT OF POST-HIGH SCHOOL EDUCATION – CRITICAL THINKING SERIES – PART 2
CRITICAL THINKING – TOP TEN IN-DEMAND SKILLS FOR MANY EMPLOYERS! – CRITICAL THINKING PART 3: WHAT ARE THE UNIVERSAL STANDARDS OF THINKING?
CRITICAL THINKING SERIES PART 4: – A SELF ASSESSMENT OF YOUR LEVEL OF THINKING AND LEARNING
THINKING IS DRIVEN BY QUESTIONS, NOT ANSWERS – PART 5 CRITICAL THINKING SERIES: WHAT QUESTIONS DO THE BEST CRITICAL THINKERS ASK?
The Oracle of Omaha’s Investment Strategy Explained
Bill Gates Says This Is the Most Important Thing He’s Learned from Warren Buffett. (Hint: It Has Nothing to Do with Money) Two billionaires are linked by one common denominator.
WARREN BUFFETT’S NET WORTH IS DRIVEN BY THESE IRONCLAD TEN RULES
Warren Buffett Says This 1 Simple Habit Separates Successful People From Everyone Else http://flip.it/_AzPx9
WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!
WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!
WANT TO LEARN HOW TO BECOME WEALTHY – READ “THE MILLIONAIRE NEXT DOOR”
THE ONE BOOK YOU SHOULD READ…….
COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY
COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY
INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?
INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?
FINANCIAL LITERACY IS JUST NOT THAT COMPLICATED – TRUST ME!
https://wealthbuildingpowers.com/2019/04/01/financial-literacy-is-just-not-that-complicated-trust-me/
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ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an NC. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, and real estate and am happy to share my finance and investment lessons. I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog as recommendations for your situation. As an investor, you must establish your risk/loss tolerance. Investment in any asset involves risk, including complete loss.
Please seek your licensed CPA or fiduciary financial advisors for individual financial advice.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.