To control money, control yourself
Michael learned from losing it
MICHAEL Bart Mathews graduated from the school of hard knocks. He got a PhD in “lifeology” and failed the test early on. The former successful basketball player from Illinois in Chicago made a ton of money. He had an “entourage” mentality. He bought everyone he knew everything they asked for.
“And when I looked up one day, I didn’t know what happened to it all,” says Michael.
This is the story of many professional athletes worldwide and ordinary people who were never taught financial literacy.
When Michael started a nine-tofive job with the Chicago Transit Authority, he realised he had to make it work and live off a salary.
In 2007 he wrote his first book, Financially Speaking: The best improvement starts with self-improvement – Create your own economic stimulus plan, about the devastating economic downturn of the time.
It was then that he and his wife of 20 years, Robbie, started to connect with financial literacy as a team.
The couple had to step up their financial game to secure their future.
Robbie has 40 years of Information Technology development and management experience within the retail and financial services industry.
She retired from a Chicago-based Fortune 500 international financial services company a few years ago.
“I am very confident in my ability to accomplish any goal I set my mind to,” says Robbie.
“I live by the financial literacy principles that we preach/teach.
“I know first-hand that educating yourself is critical to making sound financial decisions,” she believes.
The exciting part of her job, she says, is to help clients make a positive change in their lives.
In 2015 the Mathews duo updated their book, telling their own personal story which they hope will educate people on how to improve their personal finances.
“Money was a taboo subject when we were growing up. Our parents never talked to us about money.
“We learned our bad habits from them,” says Robbie.
“Back then everyone was trying to keep up with the Joneses.
“Now, everyone is trying to keep up with the Kardashians and the Carters. Trying to emulate famous people and going broke in the process.”
Michael insists that people need to take responsibility for their financial situations.
“Change how you think, act and feel about money. Money is your friend – not your enemy.
“It’s really simple: how much money do you make and how much do you spend? What are you spending your money on?
“You have to ask yourself: how much money did you make over the last 10 years? Then ask yourself: where did it all go?
“It’s a hard question that frustrates many people when you ask them that.”
Robbie and Michael have three daughters. They have nine grandchildren and one great-grandchild.
“We were just ordinary, just like everyone else. We wanted to lavish our children with gifts.
“At Christmas time, you couldn’t get into the living room because there were always so many gifts. They couldn’t wait to get to grandma and grandpa’s house because they knew all the good stuff was there.
“It would take us two to three hours just to get through opening gifts on Christmas Day.”
But it was time to practise what they preach in their book and to instil that philosophy they try to teach ordinary people into their own kids.
“We opened a bank account for each of the grand-kids. They would get a $50 (R650) deposit for birthdays and $100 for Christmas, depending on school grades and behaviour.”
Michael adds that the kids would also get a deposit if they came over and helped around the house.
“I would take them to the bank and ask them: ‘how much of this money are you going to deposit right now?’ And the rest they could spend,” Michael says.
“We have to teach our children the value of money early on, otherwise they will remain dependant on us and repeat the cycle of debt,” adds Robbie.
The couple says: “You have to commit to making the change. You must be accountable for your debt and you have to be truthful about the extent of it. Change your mindset.”
The Mathews Entrepreneur Group’s motto is “Educate and Entertain the Planet”. “Our mission is to provide personal financial literacy education, globally,” says Michael.
“The goal is to give our clients a comprehensive but easy to use set of tools that will provide them with the knowledge and skills needed to take control of their personal finances, to achieve and maintain lifelong financial stability and to build a legacy for their family.
“To promote responsible financial decision making and consumer spending.
“We also believe that with success comes a greater responsibility to assist society at large.
“We are committed to giving back to our society through volunteerism and financial support of charitable and non-profit organisations,” says Robbie.
These financial gurus are visiting our shores to share their story and wisdom about personal finance education and they know the story of South African consumers too.
Around 60% of South Africans are struggling to pay their bonds and credit cards and 78% are having trouble saving or can’t save at all.
“This is not unique to South Africa. It is true of America and many other parts of the world too,” says Michael.
The couple have five pieces of advice: “Change how you think, act and feel about money. “Track your spending. “Get out of debt. “Know your interest rates. “Lastly, consider becoming an entrepreneur. If you don’t like what you do, then go out and do what you like,” says Robbie.