Find A Financial Mentor
I first heard about the phenomenon of financial mentorship from Dr Mike Murdock. I was a teenager & I took it down as a mental note. I had no clue about it but I thought it was a-good-to-have on your way to building wealth. But Dr Murdock said it was an essential ingredient in the tool bag of financial success. I took those words to heart and set out to meet with people who will help me out on this journey. In this write-up, you are going to hear a lot about Mike Murdock. Don't blame me. You have been warned. But hey, give honour to whom honour is due.
What You Keep Hearing You Will Eventually Believe. — Mike Murdock
The first thing I did for myself was to get books to read on personal finance. I tried as much as was within my powers to understand what it took to build wealth. As one of my mentors said, “It is better to grow up and not just go up”. What he meant was that, it was better to have irreversible growth than to have some growths here and there; that were not sustainable. Another thing I did was to check the names of wealthy folks using the Encyclopedia. I was born at a time when there was no Google and so, I had this small note that I wrote names that of folks I heard about/came across. When I hit the library, I usually check them out. One that fascinated me was Warren Buffet. He was not very popular as the other rich fellas but I took out time to learn about him.
One thing most people do not know about money is that the knowledge of money and its management must be taught. Yes. You need to learn about money. It is not genetically transmitted. Most of us either grew up in houses where money was scarce and we saw it as a hard thing to have or it came easy and we did not bother to know, how it was sustained.
“Money is often not respected when financial mentors have not been a part of your life. Everything must be taught. If your mother or father experienced the “Depression,” they probably emphasized the importance of making “every cent count.” Often, wealthy children are careless with money. Especially if it is handed to them instead of their labouring and working for it. Recently, I read where one of the wealthiest men in America gives his child only $5.00 a week. He said, “I want him to learn to respect money. If I make it too easy for him, he will not understand how difficult it is to generate.” — Mike Murdock
When you know that it has to be taught; you will bother about having a teacher /mentor/coach. Since you now realize that you need to learn then I would suggest that you start reading, listening to podcasts, viewing YouTube videos of financial people and subjects. You’ll accelerate your learning.
There are two types of financial mentors that I will recommend to you. The first ones are the authors of books, seminar speakers etc who introduce you to money, financial management, principles of investment etc. With those folks, you will get the basics and the theory. They will open your eyes to the world of money and finances. I prefer reading old books and so here is my list:
1. Rich Dad, Poor Dad
2. The Richest Man In Babylon
3. The Millionaire Next Door
4. The Wealthy Barber
5. Personal Finance For Dummies
6. 31 Reasons People Do Not Receive Their Financial Harvest
After you might have gone through these books, I will ask that you look at local examples around you. What do I mean by this? Look for both national and local thought leaders on the issue of finance. Listen to the news intentionally and when you hear a new financial term, “Google” it.
The national and local financial mentors help you to localize your experience and knowledge. Their insights and experience help you in making wise decisions. As for me, the most important element is to have a financial mentor that you have access to. S/he could be the biggest business person in your vicinity or a successful uncle/auntie or a boss in the office that you admire his financial / investment philosophy.
A wealthy person who makes money by cheating, bullying, or unethical means makes for a worthless mentor. This should not be your financial mentor.
Access is key. The most important thing is that s/he should be someone that is easily accessible to you (I have said it before. Repetition is for emphasis). Don’t go with a big fancy name in the newspapers / TV / social media. Sometimes, they are just too busy to have your time. Other times, they may not have the time to build a relationship with you. Most times, since they don’t know you, it will probably be hard for them to open up to you. Ensure that you choose someone that you will respect their opinion. Learn from their scars and sermons. According to Mike Murdock “your (financial) mentor takes you on a continuous journey from where you are to the place you can be. This involves a collection of instructions, a series of crises and constant review of your financial situation”.
The biggest thing you can learn from a financial mentor is how to upgrade your thinking on the issues of money. I remember once a financial mentor of mine opened his business books to me. I was blown away by what I saw. Listening to him and seeing the money his business made, made me see possibilities. He would talk about millions like coins. Those words, hard for me to mutter, were easy for him. He would take me to some of his meetings. It was massive learning and exposure.
My first financial mentor was the first person that I saw a bank extend a loan to. I was told, growing up, that loans are never given to people. I believed it until I went with him to get a loan from the bank (loans are given most times to those who don’t need them. Funny but true. They are given to people who can pay; they have the assets and cash flow that show that they can pay back).
Hear Mike Murdock again on this matter (I warned you that you will be hearing a lot about him).
“Your mentors can upgrade your financial decisions. If you can make the decisions that create your poverty, then you can make decisions that can create your prosperity. If you can do something that brings decrease, you can learn to do the things that create increase.”
One of the things a financial mentor can do for you is to introduce you to his / her network. As Chinua Achebe said using an Igbo proverb “If a child washes his hands well, he can eat with the elders”. If you have been a great mentee, your financial mentor can introduce you into his/her circle. That grants you access to his/her network. Basically, you have been introduced into a network that you can leverage upon. As described by Todd R. Tresidder, founder of Financial Mentor, these are the things leverages do for you.
“Leverage is the essential success principle that builds wealth. You won’t get wealthy by trading time for money, and you can’t do it all yourself. Building wealth requires you to work smarter than harder by applying the following principles of leverage:
- Financial Leverage: Other people’s money so that you’re not limited by your own pocketbook.
- Time Leverage: Other people’s time so that you’re not limited to 24 hours in a day.
- Systems and Technology Leverage: Other people’s systems and technology so that you can get more done with less effort.
- Marketing Leverage: Other people’s magazines, newsletters, radio shows, and databases so that you can communicate to millions with no more effort than is required to communicate one-on-one.
- Network Leverage: Other people’s resources and connections so that you can expand beyond your own.
- Knowledge Leverage: Other people’s talents, expertise, and experience so that you can utilize greater knowledge than you will ever possess”
Can you see the access one financial mentor can create?
When you refuse financial mentorship, you will make some unnecessary mistakes. In tennis, it is called “unforced errors”. Reaching out to obtain the applicable wisdom is the sign of someone that is ready to go places. It is a sign of strength and not weakness. Only fools risk the consequences of ignorance.
Uncommon champions have uncommon mentors. Observe carefully the lives of those who have succeeded around you. Their secrets will begin to surface. Their reason for unusual success will become quite clear. Study the biographies of financial champions. Extraordinary people have tapped into the fountain of their faith. As you read their journey from the pit to the palace, you’ll be encouraged and strengthened. — Mike Murdock
Just in case you want to continue with more of this; here are some links…
1. How to Find a Financial Mentor (And Why You Need One!) by Lou Carlozo https://www.moneyunder30.com/how-to-find-a-financial-mentor
2. 5 Money Mentors That Can Up Your Financial Confidence https://www.forbes.com/sites/learnvest/2015/01/07/5-money-mentors-that-can-up-your-financial-confidence/#4b9819844d1d
3. Top 10 Personal Finance Books of All Time https://www.inc.com/geoffrey-james/top-10-personal-finance-books-of-all-time.html
You can check other articles I have written on money/finances/ financial intelligence. They are The Money Question 2018 Edition, Saving The Pennies, I’ve Got Money On My Mind, Money & Money Management Skills, 7 Common Money Mistakes and 7 Common Money Mistakes (Part II), 10 Common Money Mistakes (Part III), 8 Money Mistakes (Part IV), Stock Market Investment Basic and Things Not To Do With Money.
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Regards, Gabriel.
