Financial Talking Points & Financial Education

Hey guys, good morning! Val Campbell here.
I'm continuing today by looking at Patrick Donoho's Heads I Win, Tails You Lose, and I'm just kind of pulling some thoughts out there. He makes a lot of great points, so I'm going to share some thoughts that popped out to me, reflect on them, and offer them to you for further thought and consideration.

You know, the book itself is awesome. If you're looking for great strategy for financial planning and wealth preservation, I think he's on the right track. But so much of what he talks about just hits, I call it where the rubber meets the road. It hits our everyday lives: what we do financially, what we do in our jobs and careers. Is it really working? You know, is the American Dream really working, or is the American system broken? I talked about that on Wednesday, but he offers some really great points. So I want to share them, and they're really just for your thought and reflection. I'll wrap up with a call to action here.

He starts off saying financial education is what fundamentally separates the rich from the poor. Okay, you could diverge on that quite a bit, but he qualifies that by saying the lack of it is why most people pay so much in taxes, why so many fall short of building wealth, and why so few are ever able to achieve financial freedom. Think about that. You know, lack of education it's not a panacea, but lack of education has its costs, has its consequences. So how much do we not know about finances? You know, why are the wealthy getting wealthy and staying wealthy, and why are average Americans, the middle class and such, not making it? Something to think about.

Okay, a little bit of a humorous quote here to shift gears. Mark Twain said that the two most important days in our life are the day that you're born and the day that you figure out, your why. I just want to pose a question: What's your purpose? I think very few people have actually thought about whether they have a purpose for their life or a purpose for their job or career. But I want you to think about that. You know, purpose is very important. Do you know why you're here?, do you know what you're doing? Do you have a plan?, think about that.

Three statements are kind of tied together here next. He says establishing a healthy financial statement helps get us out of the rat race. Amazing that word—rat race. Aren't most of us in the rat race? I was in the rat race, guys. I get it. Okay, been there 41-plus years. The fact of it is, I talked about this Wednesday, most people 2019-2020 with COVID-19 affected them, companies and individuals found out that cash really is king., those that have cash are good; they're well-off. Those that don't they're hurting. That's sad. You know, the job losses, the layoffs major employers like Boeing. I just read the Wall Street Journal today like 700, some 10,000 cutbacks in jobs this month. So that's got a huge impact. But how do you get out of the rat race?

Well, he says establishing a healthy human capital statement is really what sets you on the path toward true financial freedom. Now, that's not something we hear too often. When he said that, I had to think about it. I'm still thinking about it. But here's how he defines that: It's relationships, reputation, and your network or what he considers the most valuable assets of your human capital statement. Again, these are things we're not taught in school, and I dare say we probably don't hear much about them in our jobs or careers either.

But your relationships how important are those to you, especially right now? Okay, do you have a relationship with the Lord? Do you have close friends and people that can be there to help support you, to pray for you, all those types of things? But your reputation Warren Buffett said it can take you 20 years to build a reputation and five minutes to lose it. How important is your reputation? Okay, are you a person of your word? Are you a person of integrity? And then your network how many of us actually have a network? What the heck is a network? , do you have a network of people that you can rely on and trust, that are there to help you, that can mentor you?, we're gonna talk a little bit more about that later, but think about that. Our human capital statement: relationships, reputation, and network. Okay, not bank account, etc. You know, job, your income-producing ability it's those. Think about those.

And you can argue that it's just as difficult for a second-generation wealthy person to maintain their wealth as it is for someone born in poverty to achieve wealth. So think about the huge disparity there. Okay, and a lot of it's lack of education. He says here's why it comes down to three fundamentals. We're going to talk about these real quick: mindset, what people think they know, and what people are open to learning.

mindset—he goes if you have a fixed mindset, you think your intelligence and talents are fixed traits—that you have what you have, and you feel you have enough success. And if you're happy where you're at, if you're content in life, that's great. I'm not saying not to be content, but I think most of us can do more and be more than we really give ourselves credit for, that we really try to achieve. But if your mindset is fixed, you're basically closed. You're not open to considering new ideas, possibilities, or concepts.

what people think they know, you don't see much point in trying to improve on your skills because you think you already know everything you need to know. Well, that gets you to a point, but how about facing COVID-19 and all that? If you think you're not in a good situation now, maybe you don't know everything. Maybe you need to change. and I'm here just to pose that question for thought.

Okay, so most of us I think too many people think they know everything, and we don't, guys. The last one: what they're open to learning. And here's where I think and say growth takes place, because if you have a growth mindset as opposed to a fixed mindset, you have a lot more humility. Okay, leaders are learners, You believe you always have more to learn, And that your basic abilities can be developed and improved by working at them. Guys, that's where your growth and change are going to take place by having a growth mindset, and that's, I think, what we need now, especially in this time in our economy. That's what it's going to take.

And then realize the responsibility is on your shoulders, guys. And again, America, we've abrogated our responsibilities to, you know, other people to our jobs, our employers, and a large part, the government, but it's your responsibility. And so on your shoulders it's not the circumstances of the economy, or we could say with our employer, jobs, the market, or interest rates, those things that impact the stock market or some outside factor. Guys, we've got to take personal responsibility for our lives.

He goes, "Invest in yourself before you invest in anything else."so how do the wealthy think differently? Well, I think I've talked about this before, but Robert Kiyosaki says the rich don't do things differently; they do the exact opposite. Ponder on that one.

And first, he says by building a network of those who prove themselves in business and investment. I'm gonna call this mentorship. If you want to know more about it, join me tomorrow with my partner Valke Amble on the Saturday Morning post. We're going to talk about mentorship. That's a concept that's all but lost or virtually unknown in the business and job world. I'll guarantee it about mentorship. Build a network of those who've proven themselves in business and investment. They have the success; they know what they're doing; they know what they're talking about.

Number two: by paying attention to the industry that you're in and the multiple ways that offer, you know, post-career opportunities. There are a lot more opportunities, I think, than we keep our minds open to. Sometimes we shut ourselves off to that. That's what he's saying.

So guys, thanks for joining me today, as always. if you got some value out of this, please feel free to hit the upvote button, and you're always welcome to connect with me and follow me on social media at the links provided. Have an awesome Wednesday, guys. Bye-bye!