Millionaire Mommy Next Door » Interviews

Podcast: Unconventional Path to Becoming a Millionaire

Millionaire Mommy Next Door — Tue, 06 Oct 2009 21:59:59 +0000

Recently, I responded to several questions posed by Flexo and Tom from Consumerism Commentary. They created a 21 minute podcast of our conversation. Here is a sampling of the content:

how I used apprenticeship programs as an alternative to formal schooling, to land a job, and then to hire my own employees
my motivation for becoming financially independent
how we purchased our first home
my decision to delay parenting
the somewhat “unconventional” financial steps I took that lead my husband and I across the millionaire threshold
why after 17 years of homeownership, we decided to become renters
a few of the ways I am raising our daughter using important life lessons I’ve learned

I think Flexo and Tom do a great job with their podcasts — so much so that I am considering hiring Tom to edit and polish some podcast material for my blog. As part of my book’s research, I am interviewing other first generation, self-made millionaires who are under the age of 55. I am recording these conversations. My intention is to include a variety of these financial success case studies and profiles to illustrate various principles in my book. Before I commit to the expense of creating podcasts, I want to know: Do you listen to and enjoy podcasts or do you prefer that I share these stories in written blog post format?

Note: There is a poll embedded within this post, please visit the site to participate in this post's poll.

Please take a second to respond to the poll above, then head on over to Consumerism Commentary to listen to the podcast. I’d appreciate your feedback about this podcast — and your experience with podcasts in general — in the comments section. (Note: Email subscribers and RSS feed readers, you will need to click through to my blog to do so.) Thanks!

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Learn From Successful Entrepreneurs Who Have BTDT (been there, done that)

Millionaire Mommy Next Door — Tue, 28 Jul 2009 04:22:48 +0000

Brian was tired of making other people wealthy. He no longer felt in control of his earnings as an employee. One day not too long ago, Brian Schwartz told his wife that he wanted to quit his 9 to 5 job and become his own boss.

Brian, the primary bread winner for his family, had never been an entrepreneur before. His astute wife put him to a test — she told him he could quit his job, after he interviewed 50 entrepreneurs.

The vast majority of small businesses fail. Why? And what does it take for an entrepreneur to succeed? Brian discovered the answers to these questions and more by asking those who have BTDT (been there, done that). Armed with a list of 13 pertinent questions, Brian met with over 50 entrepreneurs. I was one of them. Brian’s end result? An army of role models and mentors, a 245 page biographical encyclopedia, his wife’s blessings, and a new business that he is already turning into a franchise.

Recently, I turned the tables and interviewed Brian. Our ten minute discussion comes in two video parts:

In Part One, I ask Brian:

What was your motivation behind launching 50 Interviews?
Did you quit your job after publishing the book?
From everything you learned through your interview process, what was your most surprising finding?
Do you think successful entrepreneurs are born or made?

(Email subscribers, you’ll need to click here to view the video on my blog page.)

In Part Two, Brian responds to these questions:

Among the 50+ entrepreneurs you interviewed, what characteristics do they share in common?
What do you see as the biggest barriers confronting a wanna-be entrepreneur?
Upon publishing 50 Interviews, you quit your own job to become an entrepreneur yourself. Have you encountered challenges that you didn’t expect?

(Email subscribers, you’ll need to click here to view the video on my blog page.)

Brian’s book, 50 Interviews: Entrepreneurs, provides a short background about each business owner, then provides each entrepreneur’s answers — in their own words — to the following questions:

1. What was your initial start-up cost and source?
2. How long was it until you reached a positive cash flow?
3. Did you use a business plan?
4. What was the genesis of your business idea?
5. What is the vision of your company & the community you serve?
6. What is the passion that it fills for you personally?
7. Where do you see yourself and your company in ten years?
8. What were your biggest challenges? Looking back now, is there anything you wish you had done differently? What do you know now that you wish you’d known sooner?
9. What aspects of ownership are the most rewarding? Any unexpected rewards?
10. What do you attribute your success to? Luck, timing, someone who helped you?
11. How do you attract and retain the best employees? What is the most important attribute you look for?
12. Can you recommended any training or resources such as books, classes or websites? Do you recommend an MBA?
13. What slogan do you live by? What might your tombstone say?

The collective — yet very diverse — wisdom contained between the covers of the book 50 Interviews: Entrepreneurs is a godsend for any aspiring new business owner. If you are thinking about ditching the 9-5 grind for a business to call your own, spare yourself a few time-consuming and expensive hard knocks. Order a copy of the book 50 Interviews: Entrepreneurs by Brian Schwartz.

Financial Illiteracy: An Epidemic With A Simple Cure

Millionaire Mommy Next Door — Mon, 29 Jun 2009 13:14:03 +0000

How do we learn about money? 80% of parents surveyed believe that schools provide classes for their children on money management and budgeting. (source)

Sorry to break the bad news, Mom and Dad — your kiddos probably aren’t learning personal finance in school. Our school system requires English, math and science, but not a practical life-skills class like financial literacy. Ridiculous, isn’t it? I am all in favor of a well-rounded education, but what good is it if students learn where Shakespeare was born, but not what a tax-deferred retirement plan is? Or that n² = x, but not that if you use Payday loans, you could pay an outrageous 1560% in annual interest!

Once we graduate from high school, the vast majority of us are responsible for earning an income, establishing and maintaining a respectable credit score, balancing our bank account, and saving for our future. We deal with money decisions almost daily — yet we are taught nothing about personal finance in school.

Braun Mincher (Braun Media, LLC) is currently producing a feature-length documentary film which exposes the financial illiteracy epidemic in order to bring awareness to this important topic. Braun’s goal is to show viewers why taking personal responsibility for their own financial wellbeing is so important. He wants to expose how little parents and the school system are doing to prepare the next generation for this growingly complex and relevant topic.

Braun conducted over 100 interviews with a wide variety of people: students, parents, educators, consumers, government officials, celebrities and personal finance experts. I was honored to be one of his interviewees. Here’s a short video teaser clip of my own money-life story and response to his million dollar question: “If financial literacy education is so important, then why are we not requiring schools to teach the subject, especially considering the current economic situation?”

(Email subscribers, click here to view the video posted on my blog.)

Incidentally, I think it’s supposed to look like I’m sitting at my desk but the office I was interviewed in is not mine — naturally, my office is wallpapered with family photos, colorful Treasure Maps (aka vision boards) and cute puppies!

I’ve served as a volunteer Junior Achievement instructor and taught eighth and ninth grade students basic economic, personal finance, and small business management concepts. The kids and their teacher loved the program. So did the parents — in fact, several of the student’s parents had their kids ask me pressing, personal finance questions for them. Yet the only administrators in my area interested in offering the course were those managing private schools. There is a pathetic 2.3% percent national market penetration at the high school level — and Junior Achievement classes are offered for free!

What about you: Did your parents pass along their financial literacy skills to you? Were you taught personal finance in school? Do you think schools should be required to teach money management skills? And finally, if the cure for financial illiteracy is so simple, then why aren’t we doing it?

Read my tips on how parents can teach kid’s about money management.