Rashad Bilal and Troy Millings started up a widely-received podcast called "Earn Your Leisure" in early 2019 to encourage financial literacy. With one of them having been a financial advisor and the other a teacher, the pair suggested attaining "financial freedom" likely necessitates a net worth in the seven- or eight-figure range. Yet, according to Bilal in an interview with CNBC, even if you don't succeed, "you'll still probably be better [off] than you would have been" without the effort.
Rashad Bilal and Troy Millings have made it their mission to help people learn more about money. The pair — a former financial advisor and a teacher — set up the "Earn Your Leisure" podcast five years ago to raise awareness of financial literacy and entrepreneurship. A study by the National Financial Educators Council showed that in 2022, 1 in 7 people lost more than $10,000 due to a lack of financial literacy, something Millings realized was not taught in schools. To provide this learning, the duo have since expanded Earn Your Leisure into multiple podcasts, live events and an online educational platform called EYL University. It has gained a huge following of 2.8 million followers across Instagram and YouTube, with its flagship podcast averaging 3 million downloads per month. In addition, it is designing a financial literacy course for high schools. CNBC talked to this childhood-friend-pair regarding their views on personal finance and financial literacy in the U.S., which has been lightly edited and condensed.
Rashad Bilal expressed the opinion that many people overlook the importance of investing due to the misconception that it is only for the wealthy. Troy Millings added that a lack of financial education leads to mistakes in managing money, often in the form of overspending. And the only way to do that is to invest it.
Many are aware that investing and taking advantage of compound interest are essential, yet few understand why. I can explain it further. The only way to attain true financial freedom is for your money to expand without your ongoing work for it. To accomplish this, you must invest. Keeping money in a bank will enable it to stay at the same amount - it won't grow. In contrast, investing just one dollar can make it double. Although many people understand this concept, they may not be fully aware of it since they may have a retirement plan. The purpose of retirement accounts is to invest in them. You can move your money into a 401(k), and the expectation is that at the age of 65 or 70, you will have a reliable sum to live off in retirement. The only route to stop working all the time and obtaining significant funds is to find ways to generate money with your current funds. The only technique to do that is to invest it.
Bilal mentioned financial freedom and suggested that for individuals living in suburban or metropolitan areas, having a net worth of around $10 million would provide some level of comfort. When asked what financial freedom is, Millings offered a different perspective. They stated it is having enough financial resources to finance one's lifestyle, living expenses, and also possessing enough money to invest and generate wealth for future generations. They acknowledged that the figure needed for financial freedom may differ, as it could be within the seven or eight-figure range.
Bilal: Most people probably won't reach $10 million, which is what I'm being truthful about. But there is always the potential for some. That's why we encourage entrepreneurship and investing. Though it might not be attainable for some to achieve $10 million, it is possible to acquire $1 million or $1.5 million. That's a lot better than having a measly $20,000 when you turn 70. The best part is, even if you don't quite reach the intended goal, you'll still be in a much better financial position than if you did not pursue your dreams. Setting the bar high is essential; even if you only have $1,000 to your bank account now, you won't be able to buy a $1 million house without reaching for that goal first.
For someone beginning to invest, the best approach is to start with index funds or ETFs that cover an entire market index or sector; these investments offer a balance of risk and reward, reducing the volatility associated with individual stocks. As you get older, you may want to become more conservative and focus more on risk mitigation.
When discussing entrepreneurship and music with Sean "Diddy" Combs, you mentioned that he said you "make it cool to be educated." How do you accomplish this? Millings: We are our genuine selves, so there's a relatable element to our work because people see themselves in us. Our mission was to make finance accessible to the public, rather than presenting it as a language that only certain individuals can understand. We present ourselves in a casual way, and we aim to represent everybody. We want people to realize that learning is something they can do with us, and we make it apparent that we are learning too and that we bring experts onto our show to educate us.
Bilal notes that even the rich and famous can struggle to grasp the basics of finance, and that having money doesn't necessarily mean you can avoid financial issues. He goes on to explain that it's not just about money being spent "lavishly" but often a lack of understanding and education leading to bad investments and other losses. Financial literacy can be a problem for the wealthy too.
Bilal: Absolutely. For instance, with cryptocurrency, people who invested in dogecoin did so without accurate information and with the hope of making a lot of money very quickly. They were hoping to turn $5,000 into $20,000. However, unfortunately, they may have lost it all. The same thing applies to celebrities, albeit on a bigger scale.
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