Episode Transcript
[00:00:24] Speaker A: Welcome to Biz Talk. I'm your host, Ryan Herpin. And today we've got a lot of fun conversations to have, but we're going to focus on success in today's world. And that requires more than a good job, a strong resume, or professional ambition. It also requires understanding how money works. Now, I know this sounds absurdly simple, and it can be, but it's not always as easy as we'd like it to be. Now, unfortunately, many young adults enter the workforce without receiving practical financial education, leaving them to learn important lessons to through costly mistakes. And today's guest we have Rohit Gupta, author, personal finance educator, you know, and he's really passionate advocate for financial literacy. Now, for many, really, it's more than two decades now. Rohit has written articles, opinion pieces, and educational content across multiple countries, helping people better understand personal finance and build stronger financial foundations.
His book Kiss Keep It Simple Stupid, introduces personal finance concepts in a practical and accessible way, especially for those just beginning their financial journey. Now, I know this book is something that I wish I would have had early on before diving into my career and finishing high school. Even so, Rohit, first and foremost, thank you for being here on BizTalk today.
[00:01:47] Speaker B: No, thanks a lot, Ryan. I appreciate this opportunity to be able to talk to your audience and maybe the community at large about the importance of personal finance education, particularly for young people who are just starting off their careers.
[00:02:00] Speaker A: Absolutely. It's going to be such an honor. I'm going to have a lot of fun with this. And to our audience, as we begin, I want everyone watching to think about this question. What financial lesson do you wish someone had taught you when you first started your career? In this first segment, we're exploring why financial literacy remains one of the most important life skills and, and why so many people still struggle with it. So as we dive right on in here, Roge, I've got a great question to kind of kick things off. You know, why are so many young adults entering the workforce unprepared to manage their own finances?
[00:02:33] Speaker B: Well, thank you, Ryan. I think that's an excellent question to start with. I think the unfortunate truth is that, you know, the education that most kids go through, and like you said, I've lived and worked in multiple countries.
Personal finance is not really a core part of the curriculum.
So when people come into the workforce, they're actually learning by 24.7Media, which is not necessarily the best kind of forum to be able to understand the basic concepts and the basic frameworks, which are actually very simple.
They don't have to get very complicated. They are not specific about financial products, but. But more about why you need to do this rather than how to do it or what to do.
[00:03:18] Speaker A: That's very fair. I mean, you kept it really simple with that, but it is the reality that we're looking at. So on that note, I am kind of curious. What are the biggest financial mistakes people make early in their careers?
[00:03:31] Speaker B: So let me start by saying, I mean, one of the things that I have in my book is what under 30s have but don't use is time. The most important thing, the most important lesson in a financial education is the concept of compounding, or what they call rule of 72, which basically means that if you divide.
You know something, if you divide time by the interest rate that you're getting, it'll give you how much time you have to actually double your money. So, for example, if you divide 70, let's say you're going to earn 10% on your investments. And if you divide 72 by 10, you get 70. That means every seven years, your money doubles.
So 10 becomes 20, 20 becomes 40, 40 becomes 80, 80 becomes 160, 160 becomes 320 over five doublings, which basically means that your initial investment has actually gone up 32 times.
That is really the impact of compound interest and just very difficult for the human mind to actually understand how exponentially compound interest works.
Albert Einstein called it the eighth wonder of the world and said that people who understand it earn from it. People who don't understand it pay for it. So what's important is the earlier you start your journey, your financial journey and your investment journeys in life, the more number of doublings you can get, and it's the last one or two doublings that actually give you the most impact. 160,000 becoming 320,000. Right? Or 80,000 becoming 160,000, rather than 10 becoming 20 or 20 becoming 40. So the earlier you start, the more number of doublings you will get, and therefore you'll be left with a larger pool at the end.
A very common example that is used in most personal finance books is, say, assume you save 2,500 a year and you're earning 10% on your investments every year. These are just simple round numbers.
If you start at the age of 25 and invest 2,500 every month and stop at the age of 35, that means you've actually invested for 10 years or you invested 25,000 and then you leave it and it turns 10% a year. By the time you're 65, your portfolio is 800,000. That means it's gone up 30 times.
On the other hand, if you start when you're 35 and you keep contributing all the way till you're 65, that means you do it for 30 years.
That means you've invested 75,000.
You'll only be left by 400,000.
So delaying by 10 years actually can cost you half the amount of what you can do. That's obviously difficult when you start and when you're young, but even if you do small contributions when you're at 20, 25, it can have a significant impact rather than waiting for five years or waiting for 10 years.
[00:06:32] Speaker A: You know, I really like that you emphasize the nature of the compound effect. Right now there is a book called the Compound Effect by Darren Hardy that I like to bring to the table. And it actually taught me a lot kind of early on about how that works with finance, but how that works with discipline, how that works with work ethic. And a great example something that he brings up is like the 10,000 hour rule is if you spend 10,000 hours on any given thing, you'll be kind of in the top 1% of it. But I think it really highlights the compounding nature of consistent discipline to one given thing compounds naturally over time. And when it comes to finances, I can't stress enough to our audience how important it is to jump in on that early. There's a saying, you know, the best time to invest was yesterday. It always is, because the sooner you get involved in that compounding nature of your money, the more likely you're going to reap a major benefit or reward later on? Discipline early on pays off to luxury and really comfort later.
Now, you know, what would you say to some people that, you know, they feel like maybe it's too late to get started now? What would you say to them that feel like, okay, you know, I may be in my 30s and I haven't really invested much. What do I do? How do I get started? What would you say to them?
[00:07:43] Speaker B: I mean, like you said, I mean, you know, you work for about 30, 35 years and, and then, you know, just given the increased life expectancy now most of us can be, you know, will be in retirement for 30 years.
So, you know, you need money to last you for 30 years post your, you know, earning life.
So it's best to start when you're 25, but if you haven't, it's better to start at 30 rather than 35 and at 35 rather than 40.
It's, it's better to start anytime, right? It's never too late to start, but it's obviously best to start early.
[00:08:18] Speaker A: Thank you for that. And that kind of helps keep things real simple.
Sorry, continue, continue.
[00:08:25] Speaker B: No, and the other thing is, obviously I think you also touched on the point. You know, we are seeing increased inflation, we are seeing increased, you know, housing costs. So it's more difficult for people entering the workforce to invest, right, to save aside some money.
And the way I say it is you need to have a budget, right? And you need to have a plan. So for example, any company that you're working for, they'll give you a budget, whether it's sales or it's revenue or it's profits.
Similar to that. Every individual or every family should have a savings goal for themselves.
And what I advocate is save about 10 to 15% of your annual income every year.
And the best way to do it
[00:09:09] Speaker A: is
[00:09:13] Speaker B: don't say what's left after spending, but spend what's left after savings. So you put aside 10% the day you get your check and then whatever is left is what is available for spending. And you can have a budget and the budget can be split into discretionary spending and non discretionary spending. But you have to have that discipline and you have to have that formal plan which is most important, particularly in this gig economy.
I was a little lucky when we started.
Globalization was at its peak, inflation was low, the markets were doing well. So we were able to set aside some money and watch it grow. Now with the gig economy, with AI know, with companies moving their pension plans from defined benefits to defined contributions, the increasing life expectancy, I think it's more and more important that you actually take control over your financial life, right? You, you no longer have lifetime employments, right? We're seeing, you know, how things are working out in the market right now. So, so that is, that is critical.
[00:10:22] Speaker A: You know, I, I cannot explain to you just how it powerful something you said was. It was a golden piece of wisdom. It is. And you put it so simple and elegantly. And I think I like the way that you put it best. Don't spend after.
No, you put it. Let me think about this again because you talked about savings, right? Spend what's left after savings, don't save after what's left of spending. Like to me that is such a vital, vital thing that I think young people nowadays miss is we think, okay, well we've got our bills paid, let's go have some fun, let's go Maybe go splurge a little bit, get new clothes, you know, have a great time. And then it's like, oh, well, I've got this little bit left over. Let me just put that aside. No, if you really budget in your savings thing, you're going to thank yourself 30, 40, 50 years down the road. And that's the truth. So to our audience, you know, financial success often begins with simple habits and clear understanding.
The earlier people learn those lessons, the greater their opportunities become. You know, we'll be right back to discuss practical money habits and how small decisions can create that long term financial outcome that we truly desire. So don't go anywhere. We'll be right back.
We are back with more biz talk. Stay with us. Whether you're just beginning your career or, you know, helping the next generation succeed, this conversation offers practical insights that can create lasting financial impact. And honestly, I really want to dive right back into this conversation. This is just such an important topic that we're talking about today. And I'm back here with Rohit Gupta. And many people assume financial success is about earning more money, but often the biggest difference comes from habits, behaviors and decision making long before wealth is truly accumulated. So Rohi, it's such a pleasure to have you here. Thank you for being on the show.
[00:12:27] Speaker B: No, thank you. Rah. It's great opportunity to be able to speak with you.
[00:12:31] Speaker A: Now I like to dive right back in because this conversation is just so big, it's so important and it's so easily missed, especially in our education system. There really just isn't enough structure for financial literacy, understanding and, well, discipline for that matter, in our typical education system. So where I really want to dive in is, you know, what financial habits create the greatest long term impact.
[00:12:54] Speaker B: So thanks for that, Brian. And I think you, you covered it in the previous section also, right? It's all about discipline and timing, right? Like, like they say, it's time in the market, not timing the market.
Or again, one of my very good quotes is investing is not entertainment. It is a responsibility. It's not supposed to be fun, but a continuous process. So you have to start early, you have to start small, but you have to continue to do it.
And similarly, savings is different from investing and investing is different from speculation.
So what you really need to do is have a budget.
Your income, your expenses, your expenses split between discretionary and non discretionary. And you budget in such a way that you can have about 10 to 15% savings and you pay yourself first. So you, you save first and then you spend what's left after your savings as long as you have this discipline, right. And as long as you do it on a continuous basis, I think, I mean, the market has gone through so many turmoil, so many ups and downs. We had the SARS epidemic, we had Covid, we have the 2008 global financial crises, we had the dot com boom. But through that entire period, the markets have continued to go up in the upward trajectory.
Coming back to what we started with, it's time in the market, not timing the market and, and having a very disciplined approach of investing on a continuous basis by paying yourself first and spending what's left after savings.
[00:14:33] Speaker A: I really like that. And as a business consultant and I coach a lot of people, I help a lot of young entrepreneurs and older entrepreneurs that are just trying to be at the peak level of success that they can truly reach. And through that process, I've learned a few things. I've noticed that there's a lot of people that still have personal financial struggles and even though their income is increasing exponentially. So I'm curious, kind of your thoughts on this. Why do so many people struggle to save and invest when their income is still increasing?
[00:15:05] Speaker B: I mean, like, I think, I think you said it quite appropriately, I think the first session, right? It's because people want more and more things, right? Or you can get more and more things on credit, right? And people don't understand the long term cost of it. But if you basically do that, you save first and spend what's left after your savings rather than the other way around, then you will not get into the trouble of overspending.
If you have a budget and you know how much you can spend for what? Or you have a budget and plan for whatever you want to spend on a holiday, you know, a fancy car, you know, anything, right? But that should be part of your budget and they should be over and above after you've put aside that 10, 12, 15% every month.
[00:15:51] Speaker A: And it's just that discipline, just staying on top of it. And one thing I like to kind of bring to the table, especially in some of the culture that we see, that's, you know, kind of the generations after mine will say there is this kind of a social contagion of just spend money, you know, look fancy. It's this outward expression of financial success rather than an inward discipline of saving, investing and being, well, financially intelligent, right. I don't know why our society keeps going this way. But you know, maybe there's a construct here of, hey, the more you spend, the more corporations Make, I don't know, but I know it's gotta change. And I know people need to understand that it's not about what you show now, it's about the ease and comfort of life later, it's about the fortune you can generate by just being a little bit disciplined now.
And we've already talked a little bit about how discipline really plays in that. But how can young professionals avoid lifestyle, you know, inflation as their careers grow? What are some of the ways that we can kind of reframe that mindset?
[00:16:51] Speaker B: So again, you know, and I have this in my book, I think the most important thing, right, is to separate why you are saving from how to save and what to invest in, right? If you can understand, the most important concept is why, right? And like I said, and I, you know, I said in my book, financial security allows you to live life on your terms, right? Once you have financial security, it allows you to then follow your passion and live life on your terms.
And this is particularly important in today's volatile world. It's important to have a second source of income. Income, right?
How you do that is obviously, you know, compound interest in the rule of 72, right? Build independence, thrift and self reliance.
So as long as you can understand why you need to do it, right, and not look in the future of, you know, what you may require in 30, 35 years. Because obviously people don't, you know, understand that or grasp that or think, I can always start a year later or two years later. I've just started working, I've just become financially independent.
You know, let me enjoy this. All my friends are enjoying this, right? The idea is, see the impact it'll have. You save 10% every month, right? And then do your budgeting in such a way that you set aside that 10% and then you have the freedom to spend on whatever you want. But save, pay yourself first. It's like you're paying yourself. Think of your savings as a payment to yourself rather than paying others for goods and services that you can consume.
But you're right, it requires a lot of discipline.
It requires a fundamental understanding of what you're doing and why you're doing it.
[00:18:44] Speaker A: I really like that concept.
[00:18:45] Speaker B: It is a challenge in today's environment, which is why I appreciate this opportunity to be able to talk to as many young people in different forums, community centers, corporate trainings, you know, forums like yours, so that people can really understand why they need to do this.
[00:19:05] Speaker A: You know, then I really like how you're positioning how to do it and what to do. Yeah, yeah. And the way that you're positioning this is really interesting to me because it's not like a cry out that people are just incompetent or incapable. It's. No, it's just you just don't know what you don't know. And if you don't take the time to look at it, understand it, and. And utilize it, you're missing out and will feel regret later. And that is so important to understand. But you're making me wonder. I'm curious. So why did you write the book? Where did that book come from for you? What made it so important to get that out there?
[00:19:39] Speaker B: So, surprisingly, I actually wrote that book for my daughter.
Right. My daughter went to an art school. Right.
All her friends are extremely talented.
Right.
But they didn't understand the concept of money.
In fact, you know, maybe the young generation today, in some sense, you know, they think money is a bad thing.
Right. And my challenge was to say it's not about money per se, but the fact that if you have that money, it gives you a financial security that allows you to follow your passion and live life on your terms. Right. So it was basically, you know, something that I did for my daughter and her classmates, you know, who are all in an art school, extremely talented, but, you know, extremely financially stretched, obviously, as you also know. Right. I mean, my daughter is now out of college. She's working as an artist. But at least initially, artists don't earn as much of money as, you know, let's say bankers do. Right. So, you know, it's always a challenge to pay your bills and, you know, paycheck to paycheck. But, you know, I've been able to show her how to budget, how to balance your checkbook or your credit card statement. And then as long as you set up a standing instruction with your bank to actually just take 10% from. From your payroll every month and put it aside in your savings account, you know, and then open some sort of a investment account, you know, with any of the funds.
And now that she's been working for seven years, she's actually seen how her money has grown. Right. And how she actually has some money set aside, which gives her that financial security and allows her to do the work to build up her studio as an artist.
[00:21:29] Speaker A: Something that you were kind of highlighting there, which I feel deeply, is with the right type of financial discipline and literacy, you can pursue your dreams and not be as scared or fearful about the money side of things. You know, I always want to be able to tell My kids, you know, chase your dreams, pursue that vision, because even though it's scary, even though it might look like there's no way to make the money you want, it is possible you can be successful at anything. But what makes it easier is when you have financial understanding and discipline because you're creating the safety nets and barriers and structure to be able to go through the hard times, to. To be able, with a little bit of comfort and ease, where you can weather the storm where most people would be afraid, freaking out, you know, how am I going to manage this money? If you have that true financial literacy, you can pursue whatever dream you have, but without the right tools, it gets very, very hard to do so. So I love that the passion come from. You really wanted to educate your daughter. You want to provide that resource, and I find that to be extremely commendable. And I'm trying to do kind of the same thing with, with my career of serving people, helping people, getting, you know, people like you out in front of the masses that can actually help people. So it's modeling to our children as well, what does it actually look like and take to get where you want to go safely. And I think you stand out in that regard. So to our audience, financial freedom is rarely built overnight. We know this. It takes time, it takes discipline, it takes, well, some effort of understanding. It's typically the result of consistent decisions made over time. And after the break, we'll discuss the relationship between career growth, money management, and long term success. So grab some coffee, stretch out, get popcorn, whatever it is you gotta do. We'll be right back with more Biz Talk.
Welcome back to Biz Talk. I'm continuing my conversation with Rohit Gupta. And now we're focusing on the intersection of career development and financial confidence as professionals. You know, really let me frame this in a very particular way because this is such an important conversation. As professionals advance in their careers, financial decisions become increasingly important.
It is not a diminishing factor, not only for wealth building, but also for reducing stress and creating greater opportunities later down the road. So one of the greatest advantages a person can develop is the ability to make informed financial decisions while building that successful career. Now, there's a dichotomy here. There's not one size fits all. There's not a cookie cutter methodology. But there is a way to make this happen. So, Rohit, it is such a pleasure to have you here. Thank you for being on the show again.
[00:24:28] Speaker B: No, thank you for having me here.
[00:24:30] Speaker A: So I want to dive right back in and I Want to get to some of these big important questions because it's going to make a difference for audience. So to really kick this off, how does financial literacy contribute to overall career success? Do those two things have stuff in common?
[00:24:47] Speaker B: Absolutely. I mean, and you know, it's in, in a more broader sense, it's, you know, success in life. Right. Whether it's in a career or whether it's in sports or whether it's anything else that you do. I mean, when it comes to one's personal finances. Right. It's a very emotional subject. Right. When it's your money. Right. Rather than, you know, more generically about what's happening in the market or, you know, what's happening with someone else. But money can be a very emotional subject when it comes to your money. And research has shown that financial stress severely damages your physical well being.
So if you're under a lot of money stress, then this decision that you're making are going to be incorrect decisions, whether it's relating to your own personal finances or even anything to do with work.
So financial security actually gives you the, the freedom to be able to follow your passion and live life on your terms. So, you know, you have to take that distraction out, you have to take that worry out, you have to take that anxiety out so you can focus on your career. And absolutely, you know, financial stress severely damages your, you know, your mental output and your physical output and your ability to concentrate. So I think it's important to make sure that, you know, you're financially stable, you're financially comfortable with what you're doing, you're able to sleep well at night based on where you may have invested or how you're doing financially. Because then when you wake up in the morning, you're more charged and you're more ready to go to work with the gusto.
[00:26:17] Speaker A: You know, something that I like to kind of add on to this is early on in my career, I was a master welding technician. Made six figures when I was young. But I didn't truly understand how to be disciplined in my finances. I felt like I was making great money, but I was also just spending it like crazy. So I did not employ the methodology of save first, invest first and then spend what's left. I was very much spend everything I want because I can.
And I got to a point in my career where I advanced. I went from welder to manager and all these different things. When I went from that hourly crazy rate to a salary position, I was making less money, but I felt like I had more Because I was developing the proper financial literacy and the discipline, and I began to save correctly and budget well. And someone once told me, you know, someone who is smart with their money can make 50,000 feel like 100,000. You can live comfortably with less if you just understand how to use it correctly. So, you know, it kind of really does bring me to the next question here. You know, why do financial challenges often create stress that affects professional performance?
Is it just because, like, oh, you know, if I. If I make a mistake at work, it could put me even further in the hole? Or is it, you know.
You know, I just kind of want to break that down a little bit further because I think there's a lot of young people that are in business now that are chasing their careers that just don't understand how those two things truly connect. So let's dig into that a little bit deeper. If you're. If you're willing.
[00:27:44] Speaker B: Yeah, absolutely. No, again, like. Like I said, you know, financial challenges can create a lot of stress in someone's life. You know, some. And when you have the stress, you're obviously not able to perform to your fullest potential when it comes to work, whatever that work may be. You may be a welder, you may be a sports person, you may be a chef, or you may be a banker. Right.
You're just not fully.
You're utilizing your strengths because you have this anxiety and this pressure based on your financial position.
Right. I mean, Susie Orman is a very famous and a very old kind of financial planner in the U.S.
i think she's now retired, but she, you know, she used to have this entire forum on women and, you know, who are going through challenges and stress or whether it's divorce or, you know, kids.
And, you know, nine times out of 10, you know, when she diagnosed the problem, it came back to the fact that they were having some financial stress in their lives. Wow. Or they were not financially stable in their lives, and that was impacting everything else that they did in life, you know, in an unconscious manner. So. So as long as you can get your finances in place, then you're fully equipped mentally and physically to do your job.
And that job could be anything. Being a parent, bringing up kids, being a sportsman, or going to work in an office, it makes no difference.
[00:29:05] Speaker A: Yeah. It's all universal. That type of stress carries over. And one thing I found is when you have stress from finances, it carries into work, and then it grows stress from work, and you carry that right back home. And. And it only compounds just like compounding interest, compounding stress is a very, very real thing.
So I do kind of want to keep things extremely practical here. And this next question is intended to do just that. You know, looking at the realism of people entering the workforce, what is one piece of advice you would give somebody today that is about to jump into a career, start a new job, they just finished school, you know, is it, would they start with a budget? Would they start with figuring out investing? Where would you tell them to begin? And what is like the most important piece of advice you could give them right at the beginning?
[00:29:52] Speaker B: No. After congratulating them, you know, from graduating and getting their first job and, you know, you know, earning money, the first thing is savings, right? Because without savings there can be no investments, right? And to be able to save, you know, need to have a budget. So the most important thing I would say is build a budget, right? Look at your income, look at your expenses, split your expenses between discretionary and non discretionary and see how to manage those expenses so that you can set aside 10% and then set up a standing instruction with your bank of paying yourself first and put aside that 10% first and then you can spend what you have. Obviously there's some non discretionary expenses, whether it's your rent or it's your car lease or there's growth groceries or the electricity and utility bills. And after that, what's left for non discretionary spending? You know, you can, you can use it for whatever you want, dining out or buying yourself gifts or you know, going on a holiday. But you need to have a budget because it's critical that you start your investment journey and your servings journey early. You know, when you get your job, that's the right time to start, right? And to be able to do it in a consistent manner and to be, you know, to not to do what you said about, you know, people spending more or, you know, even as the income goes up, they continue to spend more.
Build a budget, right? And obviously, you know, as you get older, there are other expenses that come into play. There are kids, there's school, they're saving for college.
You know, there's insurance. So it never is a good time, right? The best time to start is now.
[00:31:31] Speaker A: I love that. And now I'm kind of curious because you have, you know, worked in different countries and cultures. I'm curious, are there any specific lessons you learned from educating people across different countries and cultures? Is there anything that you were able to see that was different from different places that carried over to help others?
[00:31:48] Speaker B: So, so thank you for that question.
I mean, and you know, and let you start. Started the first session by. Right. We have a problem with, with kids and investments and overspending in this country today. Right. But what I've learned is it's, it's not unique to this country. Right. That is a universal problem across the world. And, you know, and I have lived in seven different countries and worked in seven different countries. Right. The issue is that nowhere, or at least in my experience, none of the countries actually had personal finance education as part of the core curriculum. Right? So in high school, teach kids about budgeting, about how to balance your. Your books, right? About credit cards, about mortgages, about, you know, car loans. And obviously this about compounding and Rule of 72. Right. Because that is the most important, you know, concept in personal finance. Right. I mean, my experience has been, you know, like I said, I've actually spoke to and, you know, kind of done sessions, personal finance sessions with colleagues of mine, you know, or young kids that my daughter works with. Right.
Majority do not have a plan. They don't have a goal. Right. They just save on an ad hoc basis. Right. And secondly, they invest on an ad hoc basis, right. Someone said, this is a good investment, right? And you put some money aside for that. Or someone says, oh, guess how much money I've made on this? And you put some money aside on that, right?
[00:33:14] Speaker A: Yeah.
[00:33:15] Speaker B: I mean, the example that I take is, for example, right? I mean, if you're, if you play golf and you enjoy golf, right? And you've. You've had a really good round on, on a weekend, you don't go home and say you're Tiger Woods.
[00:33:27] Speaker A: Right? Right, Exactly. Exactly.
[00:33:29] Speaker B: You know, if you make an investment and that investment does well, everybody thinks they're Warren Buffett.
[00:33:35] Speaker A: You're absolutely right.
[00:33:38] Speaker B: Right. Because people don't tell you about the nine other investments that they've made that they actually lost money. Right? They're just talking about that one investment they made. They went.
They doubled their money. Right.
[00:33:48] Speaker A: And I've seen this a lot with financial advisors that are trying to sell real hard is, you know, they only present the good, never the bad or the losses ever. But, you know, while we have just a few moments left, I'm curious, where can our audience find you? How can they get in contact with you, learn more from you and tap into your book and the resources you have available?
[00:34:08] Speaker B: Thank you very much. I appreciate that. So like I said, I actually have a book, you know, that I published in 2020 during COVID It's available on Amazon.
It's also available on Walmart, you know, online.
So, you know, if you're interested in this, I'll appreciate if you log on online and, you know, order yourself a book.
I also have a website, kissfin.com where I've actually put out some videos that explain some of the core concepts on this book. And there's a lot more visual and graphics rather than just verbiage.
I have a YouTube channel where, you know, I put up these videos. So please feel free to, you know, read them and understand them and, you know, get yourself a copy of the book. Thank you.
[00:34:56] Speaker A: Fantastic. Thank you so much for that. Now we're going to take one final break, and when we return, we're going to discuss legacy education and empowering future generations. So don't go anywhere. We'll be right back with more BIZ talk.
Welcome to BIZ talk. I'm your host, Ryan Herpin. And today we've got a lot of fun conversations to have, but we're going to focus on success in today's world and that it requires more than a good job, a strong resume or professional ambition. It also requires understanding how money works. Now, I know this sounds absurdly simple and it can be, but it's not always as easy as we'd like it to be. Now, unfortunately, many young adults enter the workforce without receiving practical financial education, leaving them to learn important lessons through costly mistakes. And today's guest we have Rohit Gupta, author, personal finance educator, you know, and he's really passionate advocate for financial literacy.
Now for many, really it's more than two decades now. Rohit has written articles, opinion pieces and educational content across multiple countries, helping people better understand personal finance and build stronger financial foundations. His book, kiss Keep It Simple Stupid, introduces personal finance concepts in a practical and accessible way, especially for those just beginning their financial journey. Now, I know this book is something that I wish I would have had early on before diving into my career and finishing high school. Even.
So, Rohit, first and foremost, thank you for being here on BizTalk today.
[00:37:06] Speaker B: Thanks a lot, Ryan. I appreciate this opportunity to be able to talk to your audience and maybe the community at large about the importance of personal finance education, particularly for young people who are just starting off their careers.
[00:37:19] Speaker A: Absolutely. This is going to be such an honor. I'm going to have a lot of fun with this. And to our audience, as we begin, I want everyone watching to think about this question. What financial lesson do you wish someone had taught you when you first started your career? In this first Segment, we're exploring why financial literacy remains one of the most important life skills and why so many people still struggle with it.
So as we dive right on in here, Roge, I've got a great question to kind of kick things off. You know, why are so many young adults entering the workforce unprepared to manage their own finances?
[00:37:52] Speaker B: Well, thank you, Ryan. I think that's an excellent question to start with. I think the unfortunate truth is that, you know, the education that most kids go through, and like you said, I've lived and worked in multiple countries. Personal finance is not really a core part of the curriculum. Right. So when people come into the workforce, they're actually learning by 24 by 7 media, which is not necessarily the best kind of forum to be able to understand the basic concepts and the basic frameworks, which are actually very simple.
They don't have to get very complicated. They are not specific about financial products, but more about why you need to do this rather than how to do it or what to do.
[00:38:37] Speaker A: That's very fair. I mean, you kept it really simple with that, but it is the reality that we're looking at. So on that note, I am kind of curious. What are the biggest financial mistakes people make early in their careers?
[00:38:50] Speaker B: So let me start by saying, I mean, you know, one of the things that I have in my book is, you know, what under 30s have but don't use is time. The most important thing, the most important lesson in a financial education is the concept of compounding, or what they call rule of 72, which basically means that if you divide, you know, something. But if, if you. If you divide time by the interest rate that you're getting, it'll give you how much time you have to actually double your money. So, for example, if you divide 70, if, let's say you're going to earn 10% on your. On your investments, and if you divide 72 by 10, you get 70, that means every seven years, your money doubles.
So 10 becomes 20, 20 becomes 40, 40 becomes 80, 80 becomes 160, 160 becomes 320, which basically means that your initial investment has actually gone up 32 times.
That is really the impact of compound interest. And it's just very difficult for the human mind to actually understand how exponentially compound interest works.
Albert Einstein called it the eighth wonder of the world and said that people who understand it earn from it. People who don't understand it pay for it. So what's important is the earlier you start your journey, your financial journey, and your investment journeys in life, the more number of doublings you can get. And it's the last one or two doublings that actually give you the most impact. 160,000 becoming 320,000. Right? Or 80,000 becoming 160,000, rather than 10 becoming 20 or 20 becoming 40. So the earlier you start, the more number of doublings you'll get, and therefore you'll be left with a larger pool at the end.
A very common example that is used in most personal finance books is, say, assume you save 2,500 a year and you're earning 10% on your investments every year. These are just simple round numbers. If you start at the age of 25 and invest 2,500 every month and stop at the age of 35, that means you've actually invested for 10 years, or you invested 25,000 and then you leave it and it turns 10% a year. By the time you're 65, your portfolio is 800,000. That means it's gone up 30 times.
On the other hand, if you start when you're 35 and you keep contributing all the way till you're 65, that means you do it for 30 years.
That means you've invested 75,000.
You'll only be left by 400,000.
So delaying by 10 years actually can cost you half the amount of what you can do. That's obviously difficult when you start and when you're young, but even if you do small contributions when you're at 20, 25, it can have a significant impact rather than waiting for five years or waiting for 10 years.
[00:41:49] Speaker A: You know, I really like that you emphasize the nature of the compound effect.
Right now. There is a book called the Compound Effect by Darren Hardy that I like to bring to the table. And it actually taught me a lot kind of early on about how that works with finance, but how that works with discipline, how that works with work ethic. And a great example, something that he brings up is like the 10,000 hour rule is if you spend 10,000 hours on any given thing, you'll be kind of in the top 1% of it. But I think it really highlights the compounding nature of consistent discipline to one given thing. Compounds naturally over time. And when it comes to finances, I can't stress enough to our audience how important it is to jump in on that early. There's a saying, you know, the best time to invest was yesterday. It always is, because the sooner you get involved in that compounding nature of your money, the more likely you're going to reap a major benefit or reward later on. Discipline early on pays off to luxury and really comfort later.
Now, you know, what would you say to some people that, you know, they feel like maybe it's too late to get started now? What would you say to them that feel like, okay, you know, I'm maybe in my 30s and I haven't really invested much. What do I do? How do I get started? What would you say to them?
[00:43:00] Speaker B: I mean, like you said, I mean, you know, you walk for about 30, 35 years and then, you know, just given the increased life expectancy now most of us can be, you know, will be in retirement for 30 years.
So, you know, you need money to last you for 30 years post your, you know, earning life.
So it's best to start when you're 25, but if you haven't, it's better to start at 30 rather than 35 and at 35 rather than 40, it's, it's better to start anytime, right? It's never too late to start, but it's obviously best to start early.
[00:43:35] Speaker A: Thank you for that. And that kind of helps make things real simple. Sorry, continue, continue.
[00:43:42] Speaker B: No, and the other thing is obviously I think you also touched on the point. You know, we are seeing increased inflation, we're seeing increased, you know, housing costs.
So it's more difficult for people entering the workforce to invest, right. Or save aside some money. And the way I say it is you need to have a budget, right? And you need to have a plan. So for example, any company that you're working for, you know, you, they'll have give you a budget, whether it's sales or it's revenue or its profits, similar to that. Every individual or every family should have a savings goal for themselves, right? And what I advocate is, you know, save about 10 to 15% of your of your annual income every year.
And the best way to do it is, you know, don't save, you know, don't say what's left after spending, right? But spend what's left after savings. So you put aside 10% the day you get your check, right? And then whatever is left, you know, is what is available for spending. And you can have a budget and the budget can be, you know, split into discretionary spending and non discretionary spending. But you have to have that discipline and you have to have that formal plan which is most important, particularly in this gig economy.
I mean, I was a little lucky when we started.
Globalization was at its peak, inflation was low, the markets were doing well. So we were able to set Aside some money and watch it grow. Now with the gig economy with AI, you know, with companies moving their pension plans from defined benefits to defined contributions, the increasing life expectancy, I think it's more and more important that you actually take control over your financial life, right? You, you no longer have lifetime employments, right? You're seeing, you know, how things are working out in the market right now. So, so that is, that is critical.
[00:45:39] Speaker A: You know, I, I cannot explain to you just how it powerful something you said was, it was a golden piece of wisdom. It is. And you put it so simple and elegantly. And I think I like the way that you put it best. Don't spend after.
No, you put it, Let me think about this again because you talked about savings, right? Spend what's left after savings. Don't save after what's left of spending. Like to me that is such a vital, vital thing that I think young people nowadays miss is we think, okay, well, we've got our bills paid.
Let's go have some fun. Let's go maybe go splurge a little bit, get new clothes, you know, have a great time. And then it's like, oh, well, I've got this little bit left over. Let me just put that aside. No, if you really budget in your savings thing, you're going to thank yourself 30, 40, 50 years down the road. And that's the truth. So now to our audience. You know, financial success often, you know, begins with simple habits and clear understanding.
The earlier people learn those lessons, the greater their opportunities become.
We'll be right back to discuss practical money habits and how small decisions can create that long term financial outcome that we truly desire. So don't go anywhere. We'll be right back.
We are back with more biz talk. Stay with us. Whether you're just beginning your career or, you know, helping the next generation succeed, this conversation offers practical insights that can create lasting financial impact.
And honestly, I really want to dive right back into this conversation. This is just such an important topic that we're talking about today. And I'm back here with Rohit Gupta. And many people assume financial success is about earning more money. But often the biggest difference comes from habits, behaviors and decision making long before wealth is truly accumulated. So Rohi, it's such a pleasure to have you here. Thank you for being on the show.
[00:47:42] Speaker B: No, thank you, Rah. It's great opportunity to be able to speak with you.
[00:47:46] Speaker A: Now I like to dive right back in because this conversation is just so big. It's so important and it's so easily missed, especially in our education system. There really just isn't enough structure for financial literacy, understanding and, well, discipline for that matter, in our typical education system. So where I really want to dive in is, you know, what financial habits create the greatest long term impact.
[00:48:09] Speaker B: So thanks for that, Brian. And I think you, you covered it in the previous section also, right? It's all about discipline and timing, right? Like, like they say, it's time in the market, not timing the market.
Or again, one of my very good quotes is investing is not entertainment, it is a responsibility. It's not supposed to be fun, but a continuous process. So you have to start early, you have to start small, but you have to continue to do it. And similarly, savings is different from investing and investing is different from speculation.
So what you really need to do is have a budget.
Your income, your expenses, your expenses split between discretionary and non discretionary. And you budget in such a way that you can have about 10 to 15% savings and you pay yourself first. So you save first and then you spend what's left after your savings. As long as you have this discipline and as long as you do it on a continuous basis, I think,
[00:49:14] Speaker A: I
[00:49:14] Speaker B: mean the market has gone through so many turmoil, so many ups and downs. We had the SARS epidemic, we had Covid, we have the 2008 global financial crisis, we had the dot com boom. But through that entire period, the markets have continued to go up in the upward trajectory. So coming back to what we started with, it's time in the market, not timing the market and having a very disciplined approach of investing on a continuous basis by paying yourself first and spending
[00:49:45] Speaker A: what's left after savings, I really like that. And as a business consultant and I coach a lot of people, I help a lot of young entrepreneurs and older entrepreneurs that are just trying to be at the peak level of success that they can truly reach. And through that process, I've learned a few things. I've noticed that there's a lot of people that still have personal financial struggles and even though their income is increasing exponentially. So I'm curious, kind of your thoughts on this. Why do so many people struggle to save and invest when their income is still increasing?
[00:50:20] Speaker B: I mean, like, I think, I think you said it quite appropriately. I think the first session, right, it's because people want more and more things, right? Or you can get more and more things on credit, right? And people don't understand the long term cost of it. But if you basically do that, you save first and spend what's left after your savings rather than the other way around, then you will not get into the trouble of overspending, right? If you have a budget, right? And you know, how much you can spend for what, or you have a budget and plan for whatever you want to spend on a holiday, you know, a fancy car, you know, anything, right? But that should be part of your budget and they should be over and above after you've put aside that 10, 12, 15% every month.
[00:51:06] Speaker A: And it's just that discipline, just staying on top of it. And one thing I like to kind of bring to the table, especially in some of the culture that we see, that's, you know, kind of the generations after mine will say there is this kind of a social contagion of just spend money, you know, look fancy. It's this outward expression of financial success rather than an inward discipline of saving, investing and being, well, financially intelligent, right? I don't know why our society keeps going this way. But you know, maybe there's a construct here of, hey, the more you spend, the more corporations make, I don't know. But I know it's got to change. And I know people need to understand that it's not about what you show now, it's about the ease and comfort of life later, it's about the fortune you can generate by just being a little bit disciplined now.
And we've already talked a little bit about how discipline really plays in that. But how can young professionals avoid lifestyle, you know, inflation as their careers grow? What are some of the ways that we can kind of reframe that mindset?
[00:52:06] Speaker B: So again, you know, and I have this in my book, I think the most important thing, right, is to separate why you are saving from how to save and what to invest in, right? If you can understand, the most important concept is why, right? And like I said, and I, you know, I said in my book, financial security allows you to live life on your terms, right? Once you have financial security, it allows you to then follow your passion and live life on your terms.
And this is particularly important in today's volatile world. It's important to have a second source of income, right?
How you do that is obviously, you know, compound interest in the rule of 72, right? Build independence, thrift and self reliance.
So as long as you can understand why you need to do it, right, and not look in the future of, you know, what you may require in 30, 35 years. Because obviously people don't, you know, understand that or grasp that or think, I can always start a year later or two years Later. I've just started working. I've just become financially independent.
You know, let me enjoy this. All my friends are enjoying this. Right. The idea is, see the impact it'll have. You save 10% every month. Right. And then do your budgeting in such a way that you set aside that 10% and then you have the freedom to spend on whatever you want. But save, pay yourself first. It's like you're paying yourself. Think of your savings as a payment to yourself rather than paying others for goods and services that you can consume.
But you're right, it requires a lot of discipline.
It requires a fundamental understanding of what you're doing and why you're doing it.
[00:53:58] Speaker A: I really like that concept.
[00:54:00] Speaker B: It is a challenge in today's environment, and which is why I appreciate this opportunity to be able to talk to as many young people in different forums, community centers, corporate trainings, you know, forums like yours, so that people can really understand why they need to do this.
[00:54:19] Speaker A: You know, I really like how you're
[00:54:22] Speaker B: positioning how to do it and what to do.
[00:54:24] Speaker A: Yeah, yeah. And the way that you're positioning this is really interesting to me because it's not like a cry out that people are just incompetent or incapable. It's. No, it's just you just don't know what you don't know. And if you don't take the time to look at it, understand it, and. And utilize it, you're missing out and will feel regret later. And that is so important to understand. But you're making me wonder. I'm curious. So why did you write the book? Where did that book come from for you? What made it so important to get that out there?
[00:54:54] Speaker B: So, surprisingly, I actually wrote that book for my daughter.
Right. My daughter went to an art school. Right.
All her friends are extremely talented.
Right.
But they didn't understand the concept of money.
In fact, you know, maybe the young generation today, in some sense, you know, they think money is a bad thing.
Right. And my challenge was to say it's not about money per se, but the fact that if you have that money, it gives you a financial security that allows you to follow your passion and live life on your terms. Right. So it was basically something that I did for my daughter and her classmates who were all in an art school. Extremely talented, but extremely financially stretched, Obviously, as you also know. I mean, my daughter is now out of college. She's working as an artist. But at least initially, artists don't earn as much of money as, let's say, bankers do. Right. So it's always a challenge to pay your bills and paycheck to paycheck. But, you know, I've been able to show her how to budget, how to balance your checkbook or your credit card statement.
And then as long as you set up a standing instruction with your bank to actually just take 10% from your, from your payroll every month and put it aside in your savings account, you know, and then open some sort of a investment account, you know, with any of the funds.
And now that she's been working for seven years, she's actually seen how her money has grown, right? And how she actually has some money set aside, which gives her that financial security, right. And allows her to do the work, to build up her studio as an artist.
[00:56:44] Speaker A: You know, something that you were kind of highlighting there, which I feel deeply is with the right type of financial discipline and literacy, you can pursue your dreams and not be as scared or fearful about the money side of things. You know, I always want to be able to tell my kids, you know, chase your dreams, pursue that vision. Because even though it's scary, even though it might look like there's no way to make the money you want, it is possible you can be successful at anything. But what makes it easier is when you have financial understanding and discipline because you're creating the safety nets and barriers and structure to be able to go through the hard times with a little bit of comfort and ease where you can weather the storm, where most people would be afraid, freaking out, you know, how am I going to manage this money? If you have that true financial literacy, you can pursue whatever dream you have, but without the right tools, it gets very, very hard to do so. So I love that the passion come from. You really wanted to educate your daughter. You want to provide that resource, and I find that to be extremely commendable. And I'm trying to do kind of the same thing with my career of serving people, helping people, getting, you know, people like you out in front of the masses that can actually help people. So it's modeling to our children as well, what does it actually look like and take to get where you want to go safely. And I think you stand out in that regard. So to our audience, financial freedom is rarely built overnight. We know this. It takes time, it takes discipline, it takes, well, some effort of understanding. It's typically the result of consistent decisions made over time. And after the break, we'll discuss the relationship between career growth, money management, and long term success. So grab some coffee, stretch out, get popcorn, whatever it is you gotta do. We'll be right back with more Biz Talk.
Foreign.
Welcome back to Biz talk. I'm continuing my conversation with Rohit Gupta. And now we're focusing on the intersection of career development and financial confidence as professionals. You know, really let me frame this in a very particular way because this is such an important conversation. As professionals advance in their careers, financial decisions become increasingly important.
It is not a diminishing factor, not only for wealth building, but also for reducing stress and creating greater opportunities later down the road.
So one of the greatest advantages a person can develop is the ability to make informed financial decisions while building that successful career. Now, there's a dichotomy here. There's not one size fits all. There's not a cookie cutter methodology. But there is a way to make this happen. So, Rohit, it is such a pleasure to have you here. Thank you for being on the show again.
[00:59:43] Speaker B: No, thank you for having me here.
[00:59:45] Speaker A: So I want to dive right back in and I want to get to some of these big important questions because it's going to make a difference for audience. So to really kick this off, how does financial literacy contribute to overall career success? Do those two things have stuff in common?
[01:00:01] Speaker B: Absolutely. I mean, and you know, it's in a more broader sense it's, you know, success in life. Right. Whether it's in a career or whether it's in sports or whether it's anything else that you do. I mean, when it comes to one's personal finances. Right. It's a very emotional subject. Right. When it's your money. Right. Rather than, you know, more generically about what's happening in the market or, you know, what's happening with someone else. Money can be a very emotional subject for know when it comes to your money. And research has shown that financial stress severely damages your physical well being. Right. So, you know, if, if you're under a lot of money stress, then this decision that you're making are going to be incorrect decisions whether it's relating to your own personal finances or even anything to do with, with work. Right. So financial security actually gives you the freedom to be able to follow your passion and live life on your terms. So, you know, you have to take that distraction out, you have to take that worry out, you have to take that anxiety out so you can focus on your career and Absolutely. You know, financial stress severely damages your mental output and your physical output and your ability to concentrate. So I think it's important to make sure that you're financially stable, you're financially comfortable with what you're doing, you're able to sleep well at night based on where you may have invested or how you're doing financially, because then when you wake up in the morning, you're more charged and you're more ready to go to work with a gusto.
[01:01:32] Speaker A: You know, something that I like to kind of add on to this is early on in my career, I was a master welding technician, made six figures when I was young, but I didn't truly understand how to be disciplined in my finances. I felt like I was making great money, but I was also just spending it like crazy. So I did not employ the, you know, methodology of save first, invest first, and then, you know, spend what's left. I was very much spend everything I want because I can.
And I got to a point in my career where I advanced. I went from welder to manager and all these different things. When I went from that hourly crazy rate to a salary position, I was making less money, but I felt like I had more because I was developing the proper financial literacy and. And the discipline. And I began to save correctly and budget well. And someone once told me, you know, someone who is smart with their money can make 50,000 feel like 100,000. You can live comfortably with less if you just understand how to use it correctly. So, you know, it kind of really does bring me to the next question here. You know, why do financial challenges often create stress that affects professional performance? Is it. It just because, like, oh, you know, if I. If I make a mistake at work, it could put me even further in the hole? Or is it, you know.
You know, I just kind of want to break that down a little bit further because I think there's a lot of young people that are in business now that are chasing their careers that just don't understand how those two things truly connect. So let's dig into that a little bit deeper. If you're. If you're willing.
[01:02:59] Speaker B: Yeah, absolutely. No, again, like I said, you know, financial challenges can create a lot of stress in someone's life.
And when you have the stress, you're obviously not able to perform to your fullest potential when it comes to work, whatever that work may be. It may be a welder. You may be a sports person, you may be a chef, or you may be a banker.
You're just not fully utilizing your strengths because you have this anxiety and this pressure based on your financial position.
Right. I mean, Susie Orman, you know, is a very famous and a very old kind of financial planner in the U.S.
i think she's now retired, but she, you know, she used to have this entire forum on women and, you know, who are going through challenges and stress or whether it's divorce or, you know, kids. And, you know, nine times out of 10, you know, when she diagnosed the problem, it came back to the fact that they were having some financial stress in their lives. Wow. Or they were not financially stable in their lives, and that was impacting everything else that they did in life, you know, in an unconscious manner. So as long as you can get your finances in place, then you are, you know, you're fully equipped mentally and physically to do your job. And that job could be anything. Being a parent, bringing up kids, being a sportsman, or, you know, going to work in an office. It makes no difference.
[01:04:20] Speaker A: Yeah, it's all universal. It's. That type of stress carries over. And one thing I found is when you have stress from finances, it carries into work and then it grows stress from work and you carry that right back home. And it only compounds, just like compounding interest. Compounding stress is a very, very real thing.
I do kind of want to keep things extremely practical here. And this next question is intended to do just that. You know, looking at the realism of people entering the workforce, what is one piece of advice you would give somebody today that is about to jump into a career, start a new job, they just finished school, tool, you know, is it, would they start with a budget? Would they start with figuring out, investing? Where would you tell them to begin? And what is like the most important piece of advice you could give them? Right at the beginning?
[01:05:07] Speaker B: No, after congratulating them, you know, from graduating and getting their first job and, you know, now, you know, earning money, the first thing is savings, Right. Because without savings there can be no investments. Right. And to be able to save, you need to have a budget. So the most important thing I would say is build a budget, right?
Look at your income, look at your expenses, split your expenses between discretionary and non discretionary and see how to manage those expenses so that you can set aside 10% and then set up a standing instruction with your bank of paying yourself first and put aside that 10% first. And then you can spend what you have. Or obviously there's some non discretionary expenses, whether it's your rent or it's your car lease or there's groceries or the electricity and utility bills. And after that, what's left for non discretionary spending?
You can use it for whatever you want. Dining out or buying yourself gifts or going on a holiday. But you need to have a budget because it's critical that you start your investment journey and your savings journey early. You know, when you get your job, that's the right time to start, right. And to be able to do it in a consistent manner and to be, you know, not to do what you said about, you know, people spending more or, you know, even as the income goes up, they continue to spend more.
Build a budget, right. And obviously, you know, as you get older, there are other expenses that come into play. There are kids, there's school, they're saving for college.
You know, there's insurance.
So it never is a good time. Right. The best time to start is now.
[01:06:46] Speaker A: I love that. And now I'm kind of curious because you have, you know, worked in different countries and cultures. I'm curious, are there any specific lessons you learned from educating people across different countries and cultures? Is there anything that you were able to see that was different from different places that carried over to help others?
[01:07:03] Speaker B: So thank you for that question.
I mean, I'd let you start. Started the first session by. Right. We have a problem with, with kids and investments and overspending in this country today. Right? But what I've learned is it's, it's not unique to this country, right? That is a universal problem across the world. And, you know, and I have lived in seven different countries and worked in seven different countries, right. The issue is that nowhere, or at least in my experience, none of the countries actually had personal finance education as part of the core curriculum, right? So in high school, teach kids about budgeting, about how to balance your. Your books, right? About credit cards, about mortgages, about, you know, car loans. And obviously this about compounding and Rule of 72, right? Because that is the most important, you know, concept in personal finance, right. I mean, my experience has been, you know, like I said, I've actually spoke to and, you know, kind of done sessions, personal finance sessions with colleagues of mine, you know, or young kids that my daughter works with. Right. Majority do not have a plan. They don't have a goal.
[01:08:14] Speaker A: Right.
[01:08:14] Speaker B: They just save on an ad hoc basis. Right. And secondly, they invest on an ad hoc basis, right? Someone said, this is a good investment, right? And you put some money aside for that. Or someone says, well, guess how much money I've made on this? And you put some money aside on that, right? Yeah. I mean, the example that I take is, for example, right? I mean, if you're, if you play golf and you enjoy golf, right? And you've, you've had a really good round on, on a weekend, you don't go home and say you're Tiger Woods.
[01:08:42] Speaker A: Right, Right.
Exactly.
[01:08:44] Speaker B: You know, if you make an investment and that investment does well, everybody thinks they're Warren Buffett.
[01:08:50] Speaker A: You're absolutely right.
Right.
[01:08:53] Speaker B: Because people don't tell you about the nine other investments that they've made where they've actually lost money. Right. They're just talking about that one investment they made. You know, they doubled their money. Right.
[01:09:03] Speaker A: And I've seen this a lot with financial advisors that are trying to sell real hard is, you know, they only present the good, never the bad or the losses ever. But, you know, while we have just a few moments left, I'm curious, where can our audience find you? How can they get in contact with you, learn more from you, and tap into your book in the resources you have available?
[01:09:23] Speaker B: Thank you very much. I appreciate that. So, like I said, I actually have a book that I published in 2020 during COVID It's available on Amazon.
It's also available on Walmart online.
So if you're interested in this, I'd appreciate if you log on online and order yourself a book.
I also have a website, kissfin.com where I've actually put out some videos that explain some of the core concepts on this book. And they, you know, there's a lot more visual and graphics rather than just verbiage.
I have a YouTube channel where, you know, I put up these videos. So please feel free to, you know, read them and understand them and, you know, get yourself a copy of the book. Thank you.
[01:10:11] Speaker A: Fantastic. Thank you so much for that. Now we're going to take one final break, and when we return, we're going to discuss legacy education and empowering future generations. So don't go anywhere. We'll be right back with more biz talk.
Stay connected to BizTalk and every Now Media TV favorite, streaming live or on demand through the Now Media TV platform. You can always catch us on the podcast version. I recommend you check it out. It's a great way to stay up to date, to stay in tune, and to keep gathering these incredible nuggets of wisdom, knowledge, and information that can change the game completely.
Now, as we conclude today's conversation with Rohit Gupta, I want to focus on impact. Financial literacy doesn't just affect individuals. It affects families, communities, and future generations. Rohit's work has focused on helping people simplify financial concepts and make better decisions throughout their lives. Not just the early parts, not just the later parts, but kind of the whole thing. So, Rohit, it's such a pleasure to have you here. I'm glad we get to do this final segment together. I'm looking to have a lot of fun.
[01:11:36] Speaker B: No, thank you for giving me this opportunity, and it has been fun, so I appreciate that.
[01:11:40] Speaker A: Absolutely. So to dive right back in and get right back to the meat of everything, why are you so passionate about teaching financial literacy to young adults today? I know we talked a little bit about why you wrote the book, but what keeps you driven in it? What results do you see that keep you feeling fulfilled with this effort?
[01:11:59] Speaker B: So, again, like I said, I mean, you know, it's also based on my personal journey. Right. Like I said, you know, personal finance education is not part of the core curriculum in most countries. Right.
When I grew up, it was really not. Nothing was taught to me in. In school. Right. And when I started my financial career, you know, and I started working, this was in Asia, right? And I was. I got my first international assignment and I went to Indonesia with a bank.
And that was the heydays of the Asian kind of success story. Taiwan, Korea, Singapore, Indonesia, Malaysia. And I kind of dived right into it. So I spent all my savings and my investments in buying Asian stocks.
Then you had the Asian financial crisis of 1997, 1998.
Not only did the stock market stank 30, 40%, but the currencies also sank 20 to 30%. I lost 75% of what I had saved and invested. For me, it was very simple. My daughter was not going to go to college. I just didn't have money set aside to send her to college.
That's when I started doing my own personal finance journey. Reading a lot, buying a lot of books, trying to understand what it is, right? And 25 years later, I was happy to say it worked.
I invested every month, I invested in more diversified index funds. I kept the discipline of doing it on a regular basis, and I was able to afford and send my daughter to the school of her choice.
So it was really coming from my own personal finance journey. And then when I met up with my daughter and our friends in college, none of them had any idea about what money was or what finance was. In fact, a lot of them actually thought that money is a bad thing.
And that's what kind of got me started on this. And the real message was, it's not about money per se, but financial security allows you to follow your passion and live life on your terms. That is particularly true in this gig economy today. Or if you're doing, you know, something which is, you know, with like a trader or an artist or a shocker, you know, chocolatier or a chef, you need to have that financial discipline so that you can use your passion to do the work that you enjoy most, right? And to that extent, you know, some of the stuffs are very simple, right? Start early, right? The starting point is savings.
The starting point is savings, right? And it's just like the companies that you work with have an annual budget and a profit target, so must individuals have annual savings goals.
It's not about what you earn, it's what you save and you know, pay yourself first.
[01:14:54] Speaker A: I love that.
[01:14:55] Speaker B: And finally, finally coming back to this concept of kiss, keep it simple stupid, right?
In my mind, financially, you know, education all about compounding, right? So you start early, save a little, you know, save small amounts and see your money multiply or quadruple, you know, through compound interest over a 20, 25, 30 year period, right? But if you really also look back and say, you know, where did this concept of keep, keep it simple come from? Right? It was actually developed by the US Navy, right? And their thing was systems work best when simple simplicity should be a goal in itself and not something that should just come out as a secondary benefit.
And their concept was that fighter jet engines should be designed in such a way that they should be able to get repaired or serviced anywhere in the world, even where they did not have the best technicians or the technical expertise or the infrastructure. So they wanted to develop fighter jets in such a way that keeping it simple was a core goal of that project.
[01:16:07] Speaker A: You know, now I'm kind of curious as we, as we're really digging through where this all began and really what you're passionate about within this, you know, you get to see the financial education kind of from a different kind of lens than a lot of people do. So what changes would you like to see in how financial education is really taught?
[01:16:29] Speaker B: So like I said, I mean, for me it was my own personal journey. The fact that I had not had a good personal finance education in schools. And when I started earning, they were ad hoc investments recommended by friends, recommended by colleagues, and I actually ended up losing a lot of money.
And then I actually compounded that by actually selling off my investments. So my losses actually became real.
And then I did a lot of research and a lot of reading up to really understand it. And the concepts are very simple. And basically it's time in the market, not timing the market, doing it in a consistent manner and doing it in a simplified manner of, let's just say well, diversified mutual funds with very, very low costs rather than expensive individual stocks.
And to that extent, this entire concept about kiss, keep it simple, right? I mean, the concept of keeping it simple was actually developed by the U.S. navy. And they developed it. You know, for them, this was a core goal of any project, not an outcome of a project. And the rationale for that was they wanted to develop fighter jet engines that could be repaired anywhere in the world, even where those did not have more sophisticated engineers and more sophisticated technology.
And that's the same thing with personal finance. The core concepts are very simple. Rule of 72. And compounding starting early and doing it on a regular basis and not looking at investments on a case by case basis, but looking at your portfolio in totality. The idea is not to beat the market, but actually achieve your long term goals or having a portfolio that can act as a second source of income for you. Yeah, so that's really the way I'd like to keep it. I've got some critique on my book to say that it's very simplistic and I actually take that as a positive because my objective was to make it simple again. I think Warren Buffett said that. He said, don't equate simplicity with stupidity.
Right. Actually, keeping it simple should be a core principle in itself.
[01:18:45] Speaker A: You know, I'm kind of curious, you know, on this topic of keeping things simple. I have young kids and I know that I want to teach them as much financial literacy and strategy as I can while they're young. What are some of the cool little, you know, things that parents can do to get their kids introduced into financial management and competency kind of early on? Is there some habits you can help them develop or little games or things you can structure into their childhood that would help?
[01:19:15] Speaker B: Absolutely. And I think, you know, I absolutely agree with what you're saying, and I'm glad you asked that question, because I think most of this they can learn from best at home. They can see, you know, real life examples at home. Right. It's not a theoretical stuff that you're learning in school. Right. And so small things like, you know, how you budget, right. How you set aside some money, how you balance your checkbook, you know, how money grows over time. So, you know, if you give some money to your kids on a regular basis for doing some work, you know, whether it could be mowing the lawns or, you know, babysitting or, you know, washing the dishes or whatever. Right. And you put that money aside so that you can actually see that that money is earning them something. I think that is the best example of kids being able to, you know, learn and see the impact of this because, you know, while they're at home with you, you know, maybe from the age of 10 to 18, they can actually see a real life demonstration for this, which is better than any, any book they'll read or any, you know, training program or, you know, education sessions that they learn in school.
[01:20:29] Speaker A: You know, I find that to be extremely helpful. And I think, you know, I think our relationship certainly doesn't end here because with my kids growing up and, you know, knowing that you have this book out there, I think I'm going to even have to try to reach out and tap into your brain about how I can do things better for my children, even to get them more financially disciplined and understanding as they grow into young adults and then adults and people that are truly in the workforce. So, Rohit, you know, if, if viewers would like to learn more about you quickly, where can they find you again?
[01:20:59] Speaker B: So, like I said, I have a book. My book Kiss is available on Amazon.
It's also available on, on Walmart Online.
I have a personal, you know, personal webpage, it's called kissfin.com where I share more details of the core messages of my, of my book, including some videos and some short PowerPoint presentations to really understand the concept of money and growth and compound interest and how these things can impact in the long term and why in today's environment of a big economy with the impact of AI, with companies moving away from defined benefits to define contributions with increase in life expectancy, it's important for you to start early now and build yourself that financial security which will allow you to follow your passion and live life on your terms.
[01:21:56] Speaker A: Now, I absolutely love this conversation. And two, on behalf of my audience, I want to thank you for being here with us. See, at BizTalk, we believe that knowledge creates opportunity and, you know, a few forms of knowledge are more empowering than understanding how to manage money wisely. Right. Managing money is so important. So to everyone watching, remember, financial success often starts with simple principles consistently applied. We'll see you next time on BizTalk.
[01:22:23] Speaker B: We thank you, Ryan, and appreciate giving you this opportunity.
