Podcast Summary: "John's Dad: The Story of Johnnie Will Smith"
Podcast Title: Money And Wealth With John Hope Bryant
Host: The Black Effect and iHeartPodcasts
Episode: John's Dad: The Story of Johnnie Will Smith
Release Date: December 26, 2024
Introduction
In this compelling episode of Money And Wealth With John Hope Bryant, John Hope Bryant delves deep into the personal history of his father, Johnny Will Smith, unraveling the intricate tapestry of legacy, financial literacy, and generational wealth within the Black community. Through heartfelt storytelling, Bryant elucidates the pivotal role his father played in shaping his mindset towards money, entrepreneurship, and resilience.
Legacy and Early Life
Roots in Mississippi
John Hope Bryant begins by tracing his lineage to his grandfather, R.B. Smith, born in Mississippi in 1871—a period shortly after the Civil War. Bryant reflects:
John Hope Bryant [04:15]: "RB Smith was a sharecropper in Mississippi, working a small plot of land worth $700 at the turn of the century. His self-determination laid the foundation for my father's entrepreneurial spirit."
He highlights the historical context, suggesting that R.B. Smith was likely born into slavery and later became a sharecropper, symbolizing both the struggles and the relentless pursuit of economic independence.
Aberdeen, Mississippi and Confederate Legacy
John's father, Johnny Will Smith, was born in Aberdeen, Mississippi, a town with a complex history tied to the Confederate Congress. Bryant notes:
John Hope Bryant [05:50]: "Aberdeen wasn't the most progressive town. Yet, my father rose above its Confederate legacy to become a successful businessman."
This section underscores the contrast between the town's historical backdrop and his father's achievements, emphasizing resilience amidst adversity.
Entrepreneurial Journey and Financial Literacy
Building a Business Empire
Johnny Will Smith emerged as a prominent figure in South Central Los Angeles, owning multiple businesses:
- Cement Contracting Business
- Eight-Unit Apartment Building
- Gas Station at Vernon and Normandy
- Nursery Business
John Hope Bryant [10:30]: "My father was a businessman in every sense—respectful, driven, and a community pillar. But he lacked financial literacy, which ultimately impacted our family's legacy."
Despite his visible success and community respect, Johnny's lack of financial knowledge led to strategic missteps, particularly confusing cash flow with profit. This misconception was pivotal in the eventual financial decline.
Mismanagement and Floating Checks
Johnny often floated checks based on his personal credibility with bank branch managers rather than actual financial standing. Bryant explains:
John Hope Bryant [17:45]: "My dad thought cash flow was profit. He bid low to secure jobs, believing he was financially thriving because he had money on hand, not realizing he was eroding his actual profits."
This practice led to accumulating bank fees and eventual financial instability, despite appearances of prosperity.
Impact on Family and Generational Wealth
Mother's Financial Savvy vs. Father's Illiteracy
Contrasting Johnny's financial struggles, Bryant's mother excelled in financial management, amassing a significant net worth through prudent savings and investments despite holding an hourly job.
John Hope Bryant [26:39]: "My mother worked an hourly job at McDonnell Douglas Aircraft and died with a million-dollar net worth. She was the true financial genius of our family."
This disparity between parental financial habits highlighted the critical importance of financial literacy in sustaining generational wealth.
Loss of Family Wealth and its Consequences
Johnny's financial mismanagement led to the loss of the family's assets, including their apartment building and other business ventures. Bryant reflects on the emotional and financial toll:
John Hope Bryant [35:52]: "We lost everything. My parents stressed over money, leading to their separation and the dismantling of our generational wealth."
This loss underscores the necessity of combining respect and personal relationships with sound financial practices.
Lessons Learned and Financial Advice
Avoiding Emotional Financial Decisions
Bryant emphasizes the importance of separating emotions from financial decisions to prevent detrimental outcomes.
John Hope Bryant [39:10]: "Don't make emotional decisions. You can love your family and not do business with them. Protect your financial well-being by keeping clear boundaries."
The Importance of Wills and Insurance
He advocates for essential financial tools to safeguard against unforeseen circumstances:
John Hope Bryant [35:52]: "Every listener needs a will to prevent disputes upon passing. An insurance policy is the cheapest form of generational wealth creation, ensuring your heirs can continue your legacy."
Promoting Financial Literacy
Highlighting the broader community impact, Bryant stresses the need for financial education:
John Hope Bryant [49:47]: "Financial literacy is not just personal—it's communal. Understanding money management is crucial to preventing the loss of generational wealth within the Black community."
Personal Reflections and Final Thoughts
Dealing with Loss and Responsibility
Bryant shares his personal experience handling his father's declining health and eventual passing, highlighting the emotional challenges tied to financial responsibilities.
John Hope Bryant [48:31]: "When my father was on life support, I had to make the tough decision to let him go. It was a moment that tested my maturity and resilience."
Creating Operation Hope
Inspired by his family's journey, Bryant founded Operation Hope to serve as a "private banker" for the working class, aiming to provide financial education and support to prevent others from experiencing similar losses.
John Hope Bryant [49:55]: "Operation Hope exists because of my father's legacy and our family's hardships. We empower individuals to make informed financial decisions, building a foundation for lasting wealth."
Closing Wisdom
Concluding the episode, Bryant reiterates the fundamental principles learned from his parents:
John Hope Bryant [50:08]: "Wealth is not just about making money—it's about keeping what you earn, understanding it, and passing it on wisely."
Key Takeaways
- Financial Literacy is Crucial: Understanding the difference between cash flow and profit can make or break a business.
- Respect and Relationships Matter: While personal relationships are vital, they should not interfere with sound financial decisions.
- Essential Financial Tools: Wills and insurance policies are indispensable for safeguarding family legacy.
- Generational Wealth Requires Education: Continuous financial education can prevent the loss of wealth across generations.
- Separation of Emotions and Finances: Emotional decisions can lead to financial instability; maintaining clear boundaries is essential.
Notable Quotes
- John Hope Bryant [26:39]: "Proving trust is more important than ever, especially when it comes to your security program."
- John Hope Bryant [35:52]: "Don't make emotional decisions. You can love your family and not do business with them."
- John Hope Bryant [49:47]: "Financial literacy is not just personal—it's communal."
Conclusion
In "John's Dad: The Story of Johnnie Will Smith," John Hope Bryant delivers a poignant narrative that intertwines personal history with broader lessons on financial management and legacy. By sharing his father's successes and shortcomings, Bryant not only honors his father's memory but also provides invaluable insights for listeners aiming to build and sustain their own wealth. This episode serves as a testament to the importance of financial education, resilience, and the enduring impact of familial legacy.