John Hope Bryant (1:50)
Welcome to Money and Wealth with John Hope Bryant, a production of the Black Effect podcast network and iHeartRadio foreign. Hey, hey. This is John Hope Bryant and this is Money and Wealth podcast series Season 2 on iHeartRadio on the Black Effect Network. And this is a bonus episode. You'll start to see and hear these from me between main weekly episodes. I will do these when I believe there is a special content that is worthy of your ears and your minds and your hearts, but may not necessarily take up a full 45 minute episode. So here's one I think is important, based on really smart people I've been talking to who are unfortunately ashamed to admit they don't understand. Like, what's a stock? No one ever taught them how. How would they know? How could they know? How could they know what equities are or the definition of, you know, this or that they're reading in the Wall Street Journal. People feel ashamed, but for no good reason. It's people are not dumb and they're not stupid. It's what they don't know that they don't know that's killing them, but they think they know. There's an old Southern saying, no matter how much I love you, my son, or my daughter, if I don't have wisdom, all I can give you is my own ignorance. So out of good intentions, we pass down bad habits from generation to generation. And I've heard this thing about stocks or equity and not understanding what it is. I've heard it from a friend of a member of my family who is early 20s. I've heard it from celebrities who trust me to be vulnerable. And I'm so honored by that. So this episode, this bonus track is called and please share this with your friends. Please talk about this in the barbershop and the nail salons and your. Your club parties, your fraternity sorority meetings. Let's start having real conversation and make financial literacy the civil rights issue of this generation. Let's start talking about civil rights. And not just civil rights. We need civil rights in the streets, protections, red rooms to keep bad things from happening to good people. We also need civil rights in the suites, right? To make good things. Create an environment where good things can happen to good people and get people up and out of their travails and their problems and to start climbing the ladder of opportunity to be. To become the change they want to see in the world. To be aspirational on purpose, to have a business plan for their life, to move opportunity into ownership. So let's start this with the language of money, Part one. Decoding the language of money, Part one. Here we go. This is a stuff that no one's ever taught us, but now you'll know. The truth is a foundational financial vocabulary. Share it with your friends. You can't win the game if you don't know the rules. And if you can't know the rules, if you don't speak the language. That's what this bonus episode is about. Learning and sharing the language of money. So I didn't always know the language of money. I got my first financial literacy lesson in a home economics class which doesn't exist largely anymore. And my mother was a great grassroots investor and I learned a little from her. And then I'm just nosy. So I just, you know, always ear hustling from people around me and always tried to make sure the folks around me were smarter than me. So this is not. A dumbing down of anything. This is a new sort of Wall street street talk for your future wealth. This acknowledges that you were never taught this, but you need this. We live in a capitalist democracy. Little big D. Sorry, big C. Capitalist little D democracy. Unfortunately, we've put our culture inside of our economy versus putting our economy inside of our culture. And so this is a reality that we live in. We must understand this system. So why this matters. Financial ignorance costs more than financial mistakes. Most adults in America can't define compound interests, but this is the absolute key to wealth. We've been taught to get a job, not how money works. We know how to make money, but not how to make it work for us. Let's break this down. Here's some basic money terms that are uncorked and decoded for you. Simple definitions, real life meanings. You can write this down, put it on repeat, put it on replay as you're walking the dog, as you're jogging, as you're exercising, as you're hanging out with friends, as you're doing your chores, as you're commuting. You can put this on repeat, share it with friends, make this go viral. Let's go. Let's go through some terms you were never taught and people assume you know. Income. Yes, we're going to start with income. A simple definition. It's what you earn from work or investments. See there? You can make income from non work. Here's a interesting truth. Money makes more money on money than money will ever or can ever make on labor. Hello. Remember that one. Money can make more money on money than money can ever make on investing in labor. So income is what you earn from work or investments. And let me give you a real inside track here. Those with real wealth don't want any more W2 income, which is basic regular income. They want capital gains income, which is from selling or disposing of assets. And by the way, it's the lowest tax rate for a source of income. Another point, another, another time. So here's the mindset connection of that. You can't budget what you don't measure and you need to budget. I've learned that the hard way in my life. No matter how wealthy or not you are. You need a budget, expenses, what you spend. Simple definition, mindset, connection. Rich people flex. Wealthy people plan. Rich and poor tends to be loud. Wealthy tends to be quiet. Yes, there's a difference between rich and wealthy. Rich is a contract. Hello, assets. Here's what an asset is not. An asset is not on your ass.
