Raise kids to be entrepreneurs

The wealthiest people in the world are entrepreneurs – not passive investors in residential property (the backyard BBQ favourite.)

In my experience of working with people many want to start their own business. But their traditional education and employee experience often has not given them the toolkit to succeed.

In the video below Cameron Herold argues that we need to be teaching kids how to be entrepreneurs. Herold has been an entrepreneur since childhood and for the past 20 years has been coaching other entrepreneurs.

The presentation was recorded at TEDxEdmonton in March 2010. TED is an organisation devoted to “Ideas Worth Spreading” and includes many wonderful presentations of ideas that inspire you to learn more and take action.

In his presentation to TEDxEdmonton Herold shares some of the lessons he learned from his childhood jobs and business ventures that are important entrepreneurial skills. He also summarises some key entrepreneurial traits to teach our kids. Both will spark ideas in you that you can being to implement at home with your children of any age.

One idea that may challenge you is Herold’s attitude to paying children an allowance, or pocket money as we say in Australia. Watch below and find out his suggested alternative.

Why now is the time to cash in on your passion

Crush It!: Why Now is the Time to Cash in on Your PassionIf you would love to be pursuing and profiting from your passion then I am excited to be sharing this book with you. I’ve just finished reading Crush It! by Gary Vaynercuk.

Gary Vaynerchuk passionately believes that now is the time to be cashing in on your passion, and I wholeheartedly agree with him. In Crush It! Gary gives you an insight into his story of how he built his personal brand with great success through Wine Library TV. Plus he shares tips and strategies for how you too can cash in on your passion.

If you are seeking inspiration and motivation to profit from your passion then this is a great book to start with. (It certainly inspired my wife to get cracking.)  Crush It! is very big picture but also includes some of the “How To”s.

Watch my brief video review below for a summary of the tips Gary shares for how you too can Crush It! and cash in on your passion.

Wealth Insights for Young People

There is such a myriad of ideas for how to manage you money it is very difficult to know where to start and what is appropriate for you.

In one of my regular interviews on Wake Up! WA we discussed money tips for young people, including students. IN the later half of the interview we also touched on how parents of young people can support their children in creating positive money habits.

Watch the video below or here.

You can watch other Money Guide videos at www.MattHern.tv and here on my blog.

How To Save Up To Buy Your First Home

Owning your own home is one major goal for many young Australians. But with property prices so high a first mortgage may appear out of reach. In this interview on Wake Up WA, Certified Financial Planner professional Matt Hern shares three strategies that first home buyers (especially young people) can use to save up to buy their first home.

(Recorded 3rd July 2008.)

Solving The Financial Decisions On Your Mind

On Thursday I conducted a webinar in which I addressed the top three types of financial decisions that are on your mind, as submitted in the recent survey.

Almost all respondants said that they think about these things daily or a few times a week. That is a lot of time and energy consumed on money matters instead of spent doing the things you really love. Better to resolve the issues and spend more time with family and friends, or pursuing your hobbies.

Most issues fell into these three broad categories: Planning, Saving and Investing. For example:

“How will I have enough money for…”

“How can I save more money for…”

“Where is the right place to invest my savings?”

For an insight into the process to resolve these issues watch the recording of the webinar below.

The recording is 45 minutes. A small time investment when you consider the time cost of repetitively thinking about financial issues without resolution.

For assistance to make more clear, confident financial decisions call me.

Download video as an MP4 file (126MB)

The credit crisis explained visually

For those still a little bit baffled by how the credit crisis started and then snowballed I recommend you spend 11 minutes watching this video. The concepts are very simply explained including: leverage, collaterised debt obligation and sub-prime. The knowledge will help you become a better investor in the future so that you can better understand the true risk of your investments.

Much kudos to creator Jonathan Jarvis. You can also visit the official website for the videos.

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

What a CFP represents

Certified Financial Planner logoCertified Financial Planner, or CFP is the top level certification for financial planners. It takes quite a bit  of knowledge, skill and experience to be awarded this certification.

When seeking financial planning advice, especially for the first time I recommend that you start by speaeking with CFPs. You can find them on the Financial Planning Association website.

To raise awareness of Certified Financial Planners the Financial Planning Association has released a 60 second video, which you can watch below (or here on YouTube.)

Please leave a comment below to let me know if you think it is effective. Would you now want to see a CFP in preference to any other financial adviser?

I genuinely want to read your comments as I often send my two cents worth to the FPA. You can leave an anonymous comment if you like. Thanks.

Don’t Stress About Losing Your Job

Are you worried about how you will cope if your job is made redundant? Is this occupying your mind for too much of the day, taking some of the joy out of life or even worse, causing you to lose sleep?

If you have the three elements shared in this video in place then you can be confident you will survive the loss of your job.

 If you have gaps in the three elements then you need to act now to be prepared. If so, visit www.Redundancy-Advice.com.au for more detailed resources to plug the gaps.

Please share these insights with all of your friends and colleagues who are stressed about the possibility of losing their job. Help them get more joy in their life right now!

Media “experts” finally held to account

Even if nothing happened in the financial markets that day there would still be a 60 page edition of The Australian Financial Review published the next day.” That was the view shared by one of my first lecturers in financial planning back in 2000. (I wish I could remember which lecturer so I could give him credit.)

Time proved that to be correct and over the past nine years I have progressively read less and less of the mass media and more specialist publications. Most of what is published in the mass media makes me quesy or irate – often both simultaneously. Too frequently I feel that mass media financial articles confuse the issue and are too superficial by not considering the real, valid depth.

I could rant on this topic for a long time, but I won’t. Have some fun instead and watch this enlightening video by Jon Stewart of The Daily Showin the USA. Stewart takes the so called experts of CNBC, the business show, to task over their forecasts and soft approach on CEOs.

The Daily Show With Jon Stewart M – Th 11p / 10c
CNBC Financial Advice
Daily Show
Full Episodes
Economic Crisis Political Humor

Deciding when to start investing again

At some time during the recent bear market did you sell most or all your investments to cash? Or maybe have you been holding out on your regular investment plan because you haven’t felt comfortable? Watch the video below for some insights into how to decide when to start investing again.

At some time during the recent bear market did you sell most or all your investments to cash?

Or maybe have you been holding out on your regular investment plan because you haven’t felt comfortable?

If you made that decision based on an emotional trigger such as “feeling tired of losing money” then you face the real predicament of getting back in too late and missing out on big gains which often come in the early days of an economic recovery.

Watch the video below for some insights into how to decide when to start investing again.

Keep it simple to ride out market emotions

In his latest article, Robin Bowerman of Vanguard Investments Australia suggests: “There is one clear lesson investors can learn from the recent sharemarket turmoil – the smart way to invest is to keep things simple.”

It is an excellent article that discusses behavioural finance and draws on research from Steve Utkus, the head of Vanguard’s US Centre for Retirement Research. You can read the full article here. Be sure to read the closing paragraphs suggesting strategies for guarding against overconfidence.

You can also watch an interview with Steve Utkus here. If you are already familiar with the context of behavioural finance then I recommend you skip to question 7 in the video.

Really Achieving Your Childhood Dreams: by Dr Randy Pausch

There is a tradition at Carnegie Mellon University called “The Last Lecture” – if you knew you were about to die what would you share with your students in your last lecture? Dr Randy Pausch recently gave such a lecture, with a twist.

My passion is helping people achieve their lifestyle goals through the wise management of money. So Dr Randy Pausch’s lecture on “Really Achieving Your Childhood Dreams” shares some very pertinent points linked to my passion. I believe financial management is not about the money, it’s about the lifestyle that money facilitates.

You can watch a special 10 minute reprisal of Dr Randy Pausch’s lecture or view the full, original version on the Carnegie Mellon University’s YouTube channel here.

The value of TPD Insurance

When you’re fighting fit and rarely see a doctor it can be hard to imagine ever needing insurance.

Watch this true story of David Blakeway, a middle-age professional who suddenly suffered an aneurism. David
describes his surgery, time in hospital and how his Total & Permanent Disability (TPD) claim allowed him to ‘put his life back together again‘.

(Reproduction Courtesy ING Australia. Length 5 mins 3 seconds.)