Valuable Lessons We Can Learn From
In a previous episode, I shared, when I was going down the road to learn about financial literacy, I consumed and studied a lot of financial thought leaders in the space.
One of them being David Bach. I even featured one of his clips on the podcast.
Today, David makes a return appearance with one of his clips as I believe people can take something from it as I did many years ago.
David was on the Breakfast Club six years ago when he was promoting and releasing his book Latte Factor.
Here’s the clip when Charlamane asked him about one of the myths about money.
Wanted to share this with guys and go over the lessons I learned from it.
Clip starts at 26:33 when he ask’s David the question.
LESSON #1: Thinking you need a lot of money to start investing
You will always here things like: once I have some money, I’ll start.
As stated in the clip, David’s Grandmother starting the taking her lunch to work and used that money saved to invest.
People believe you need a lot of money to start investing—but that’s mostly a mix of outdated ideas, psychology, and lack of exposure.
Investing is not expensive
Yes I started with $1000 eight years ago and that might be a lot for some, however today you can open up a Wealthsimple brokerage account and start with $10-$100.
Most people were never taught:
What investing actually is
How compound growth works
That consistency beats size
You don’t need:
A lot of money
Perfect timing
Expert knowledge
You need:
👉 Consistency + time + a simple strategy
LESSON #2: Making A Change
This something that hit hard for me.
The grandmother didn’t like the situation she was in financially and wanted to make a change.
When I starting investing, I exposed myself to so much information, It led me to make a change.
It can be scary to make a change especially for most of us as we enjoy comfort.
People get used to:
Living paycheck to paycheck
Not investing
Avoiding money conversations
It becomes normal. Changing means stepping into the unknown—and most people avoid that.
LESSON #3: Taking financial advice from Broke People
David explains that she was getting her financial advice from people who were poor.
I explained in the last podcast, that many people giving this so called advice, don’t have the receipts to back up what they are saying.
They are usually regurgitating something that heard from somewhere or someone, and speaking with conviction about something they have never experienced
People don’t take advice based on results, they take advice based on comfort, familiarity, and trust.
It seems as if there is such low standards for financial advice, yet most complain in some capacity about money problems.
Most people don’t treat financial advice like:
Medical advice
Legal advice
They wouldn’t take surgery advice from a random person, but money? My coworker said this stock is good…..
LESSON #4: Going to qualified people for financial advice
This had to be 60 - 70 years ago and today we have access to the internet and AI where we can get some sort of information right away.
She took classes at learn adult schools
She found a person that was a millionaire and reached for help.
How many times are we shy or feel insecure about asking someone for help.
For myself, I didn’t really have anyone close to me that was really investing – or investing for the long term.
It was individuals buying single stocks, being in and out of the market or investing in the next new trend.
I’m paying for that right now as I remember the cannabis stocks were going crazy.
I Still have the ETF HMMJ that I’m down 50% on. I only have $100 worth but I keep it in my portfolio to always remind me never to invest in trends again.
My education was books, podcasts, youtube videos, blog and my own experience in investing, and seeing what works
Today, I would seek out people that are where I want to be and ASK FOR HELP
I’m also still in process of connecting with people who are on the same wave length.
LESSON #5: Being able to pass down financial knowledge
As financial literacy it not taught in schools, David’s Grandmother was able pass down her financial knowledge to her kids and grandchildren.
This is so powerful. I’m excited to be able to do that with my future kids
They say kids don’t listen to what you say, they watch what you do
Sharing books and living a life of financial independence is the ultimate goal.
Final Thoughts
It’s crazy to see what happens when someone has the right mindset and is willing change.
I remember sharing this story with a family member, and their response was “O David is well off cause his grandma.”
Which is somewhat true but that mindset is all wrong In my opinion.
They didn’t look and say, “WOW someone was in a situation they didn’t like, decided to make a change, achieved it and shared it with her family”
I guess it goes to show you where some people’s mindset is at.
