People assume I have all the answers because I work in the industry, but let me tell you: my perspective is probably different than what you’d expect.
Over Thanksgiving, a curious nine-year-old asked me, “You work at a bank, so you must have a lot of money?” I laughed and replied, “The money is in the bank, not in my bank account.” She followed up with, “What’s a bank account?” Now, that is a question I can confidently answer. I explained the basics how we use bank accounts to store, save, and manage money. It was a simple question, but it reminded me how often people, young and old, assume banking is synonymous with wealth.
This is the question I get most often, and my honest answer is simple: I have no idea. Predicting the stock market isn’t my expertise, and frankly, it’s not anyone’s with certainty. Markets are unpredictable by nature, influenced by countless factors beyond anyone’s control. But here’s what I do know: the best way to approach investing is to start with what’s within your control like your workplace retirement plan.
When someone asks me about where to begin with investments, I always say this: If your workplace offers a 401(k) or 403(b) plan, take advantage of it especially if there’s a match. Think of it as free money toward your future. Too often, people get caught up in trying to time the market or find the “perfect” investment strategy. But financial success isn’t about getting lucky with a single stock it’s about making steady, intentional contributions over time.
If you are unsure, ask your human resources department if you have a workplace retirement plan and what the conditions for participation are. These programs are great for helping you jumpstart savings.
The first plan I participated in was a 403b offered through the nonprofit organization I worked for years ago. My only regret is that I didn’t start saving immediately after being hired. I had a false belief that I would miss the money that I wouldn’t have enough to take care of my expenses. Once I started saving, I proved that wrong. I never missed the money, not once.
I also believed I was too young to start saving. Barely having any liquid cash, I worried: What if I needed the money for a down payment on a house or something else major? Oddly enough, through the years, I’ve tapped into that program at different points to help bridge financial gaps. I had to work with a financial advisor to determine when I could access it and what the penalties would be for not paying back the money I effectively borrowed from myself.
Starting small and consistent with your workplace retirement plan is one of the easiest ways to build your savings. But the real magic happens when you start early. The power of compounding earning returns on top of returns can turn even modest contributions into significant wealth over time. Let me illustrate this with a tale of two mindsets: Thriver and Survivor.
Compound returns, or compounding, happen when your earnings generate additional earnings over time essentially, you earn profits on top of your earlier profits. The earlier you start saving and investing, the more time compounding has to work its magic. Let’s see how this plays out through the lens of two personalities: Thriver Mindset and Survivor Mindset.
Thriver Mindset starts saving at age 22, contributing $1,500 annually for ten years. That’s $15,000 in total contributions. After age 32, Thriver stops adding more money but leaves their investments to grow, earning an average annual return of 8%.
By age 50, Thriver’s investment has grown to $120,000, thanks to the power of compounding. With no additional effort, their early start puts them far ahead, demonstrating the value of consistent planning and patience.
Survivor Mindset waits until age 32 to start saving. They contribute $3,000 annually for 15 years, totaling $45,000 three times as much as Thriver’s initial contributions. Survivor earns the same 8% annual return but starts later in the game.
By age 50, Survivor’s investment grows to $108,000, impressive but still short of Thriver’s balance even though Survivor invested more money. Why? Survivor’s later start gave compounding less time to work its magic.
Thriver Mindset shows us the power of starting early and giving your money time to grow. Survivor Mindset reminds us that it’s never too late to start, but waiting comes with a cost.
Even small, consistent savings can add up over time. For example, saving $100 per month starting at age 25 could grow to over $350,000 by age 65, assuming an 8% annual return. The key is adopting the Thriver Mindset early: Plan, invest, and let time and compounding do the heavy lifting.
So, what mindset will you choose today? Will you plan like a Thriver or wait like a Survivor? The choice is yours, and the sooner you act, the better your financial future will look.
This is a question I’ve been asked by young people multiple times. Over the years, my answer has evolved. Today, I tell them this: Building wealth isn’t about making a lot of money all at once. It’s about starting small, being consistent, and letting time do the heavy lifting. Wealth is a product of patience, discipline, and good habits not shortcuts or secrets.
One of the biggest lessons I’ve learned over time is to be skeptical especially when someone presents an idea that promises to make you a lot of money. Often, these "opportunities" are just clever pitches to part you from your hard-earned cash.
I recently read an article in The Wall Street Journal by Jason Zweig titled, ‘I Don’t Know Where to Turn or What to Do.’ His $763,094 Retirement Fund Is in Limbo. It’s about Richard Whitacre, an industrial mechanic, who learned through a friend about a firm called Yield Wealth. The pitch? A "guaranteed" 15.25% return on certain investments.
Let me tell you something: Be skeptical. The moment I hear words like “guaranteed,” I run. When I see promises of double-digit returns, I typically run.But here’s the distinction I don’t run from the possibility of high returns if I take on risk; I run from the promise of them.
Did you catch this? There’s a big difference between someone saying, “This investment could deliver a strong return,” and someone saying, “I promise you a guaranteed return.” The former acknowledges risk; the latter ignores it.
What do you think happened to the $50 million invested with this fund? Look it up and let me know. I’ll tell you this much: The idea that you can make a quick million is a myth. For most of us, slow, steady, and intentional wins the race.
I’ve made investments outside of traditional retirement accounts, and I’m happy to share my experiences. But let me be clear: I’m not an expert. My approach to money is grounded in two things: lessons learned through trial and error, and the discipline of sticking to the basics.
Start With What You Know
Many years ago, I decided to invest directly in stocks. My first picks were Visa and Anheuser-Busch. Why? Because I understood them. Visa was in my wallet, and Anheuser-Busch was the pride of St. Louis, my hometown. Those investments did okay, and they taught me an essential rule:
Don’t invest in what you don’t use or understand.
Diversify Early
Early on, most of my investments were in employer-sponsored programs like 401(k)s, which diversified my money across many stocks. This approach provided a sense of safety and taught me the importance of reducing concentration risk, or, as the saying goes, "Don’t put all your eggs in one basket."
Experiment With Caution
As I built a foundation, I started exploring other investments. I tried real estate, but it didn’t work out for me. Back then, I was too young, lacked the time, and didn’t have the necessary knowledge. I lost money. It was a tough lesson, but it taught me to respect the complexities of certain investment classes.
Be Selective With Private Investments
I’ve also invested in private companies. When evaluating these opportunities, I ask myself five key questions:
This last question has been especially important for me. Private investments often tie up your money for longer periods, so understanding the terms of liquidity is critical. Even the most promising ventures can pose risks if you’re unprepared for how long your capital might be inaccessible. After answering these questions, I always return to advice from a mentor: “Don’t invest in something that could cost you your house.” Stop right there. Meditate on that. Seriously. This rule keeps me grounded and focused on making thoughtful financial decisions.
The truth is, there’s no magic formula for making a lot of money. It’s about consistency, patience, and making smart decisions based on what you know and trust. It’s about avoiding the lure of shortcuts and staying skeptical of promises that sound too good to be true.
So, to the young people who ask me, “How do I make a lot of money?” my advice is simple: Start small, stay consistent, and focus on what you understand. Wealth isn’t built overnight, but over time, with discipline and wisdom, it grows.
What about you? What lessons have you learned about managing money and building wealth? Let’s keep the conversation going.
Money can be an intimidating topic, especially if you didn’t grow up with it, are just starting out, have had a misstep or two, or are navigating financial challenges. Avoiding the conversation only makes it harder to learn and grow. Whether it’s explaining what a bank account is to a nine-year-old, encouraging someone to contribute to their 401(k), or sharing a financial decision you wish you could take back, the key is to make money conversations approachable, relatable, and actionable.
If you’re new to investing, start small open a savings account, enroll in your workplace retirement plan, or set a financial goal for the next six months. If you’re already on the road, no matter how challenging, share your insights with someone else. And remember, wealth isn’t about how much you have it’s about how well you manage what you’ve got.
Building financial health doesn’t happen overnight. It’s the result of small, consistent actions taken over time. And the best part? It’s never too late or too early to start.