Sometime after leaving home for college, I had an awakening of sorts. I became very curious about money and wealth. My parents were certainly an influence as they both ran their own businesses and encouraged my sisters and I to do the same. By 18, I had many different jobs from selling golfballs, mowing lawns, waxing furniture, and I even had a DJ business where I performed for school proms and weddings. In the summers I drove trucks for my dad. All this to say that I had some sense of how to earn money. What I didn’t know was why some people could build mass fortunes while others remained middle class. Two influences came into my life that summer after my freshman year: Stanley and Danko’s Millionaire Next door and the Clark Howard Show.
That summer was special. I was spending 10-14 hours a day in a work truck listening to the radio. Bored by FM, I stumbled into AM stations where I could listen to sports talk radio, politics and advice shows like the Clark Howard Show. Based out of Atlanta, he had a nationally syndicated show that ran for 2-3 hours. Most days he would just take calls from the audience and provide advice on how to avoid scams or simple investing advice. Think Dave Ramsey without the judgement and theatrics. I recall one day, he explained his story of how he became a radio host. Apparently he had retired in his early thirties after selling a successful travel business when a friend asked if he would come on the air to provide financial advice. Clark was the first plain spoken person who explained how to build real wealth from modest means. His story was the living example that Thomas Stanley outlined in Millionaire Next Door. Simple rules of living below your means, investing the difference, and let time compound that amount into millions. This wasn’t rocket science nor luck, just frugal decisions and time.
What made Clark special for me was his ability to make building wealth something that I could do. His advice was simple, practical, and understandable. He would give precise instructions on the type of account to open (Roth IRA), what institutions to trust (Fidelity, Schwab, Vanguard), and what investments to make (Index funds). He also gave advice on how to shop for the basics in life like groceries (Costco, Walmart, Sam’s, Aldi) and how to buy a car (slightly used, inspected, and with cash if you can). He was the first person in my orbit to demystify how money works. Didn’t matter what your job was, where you lived, or who your parents were, you could get rich slowly by “saving more, spending less, and avoid getting ripped off.” Unlike most money gurus, he did not promise instant wealth nor did he peddle pricey seminars on flipping real estate.
Following that summer, I made small but gradual behavior changes. I became more thoughtful about my spending. I deposited the remainder of my summer earnings into a Roth IRA. I kept two months worth of cash in a money market account. I began to read more about money management, investing, the stock market, and biographies of wealthy people. From Clark, I learned about Peter Lynch, Warren Buffet, Jack Bogle, Charles Schwab, and Sam Walton. I even tracked my spending and account balances on my own custom excel spreadsheet.
I began to understand what it meant to be frugal. Like most, I assumed frugal meant cheap. Instead, I learned it meant discipline with regards to spending and values. My purchases became purposeful. I spent more on the things I valued and less on the stuff I didn’t. Clark and his embodiment of the frugal millionaire gave me a lens in which to see the world and how it transacts. We avoided common middle class traps of car payments, credit card debt, lifestyle debt, and “keeping up with the Jones’s.” Pretty soon these decisions formed habits which evolved into a lifestyle. Later in life I would use this pattern with exercise, diet, work and many other parts of my life that require steady constant efforts over time.
As a direct result of his influence, I have managed to achieve a modest layer of financial stability for my family. I have freedom in my life that took years and patience to build. I am very grateful for Clark’s advice and consistent words of wisdom.
Most mentors live in my mind for a few years. They make an impression. Influence my thoughts and behaviors. Then fade away. Clark is the exception, I still listen to his show on a routine basis though I can quote his responses to listener questions before responds. Today, Clark has stepped back from a full time radio show to a podcast where he still takes listener questions and gives his perspective on money decisions.
Resources:
– The Clark Howard Show podcast and Website – https://clark.com/
– Clark’s books on amazon: https://www.amazon.com/stores/Clark-Howard/author/B000APHSBE?ref=sr_ntt_srch_lnk_1