It is What it is...No It is What You Make It: Your Financial Future | Danny Harvey | TEDxLSCTomball

Summary

In this engaging TEDx talk, Danny Harvey emphasizes the importance of taking control of your financial future. Through a conversational approach, Harvey encourages the audience to shift from a passive "it is what it is" mindset to a proactive "it is what you make it" attitude. He discusses the significance of goal-setting as opposed to mere dreaming, the value of time and compound interest, and the necessity of creating and adhering to a budget. By understanding income, expenses, assets, liabilities, and credit, individuals can effectively manage risk and make informed investment decisions, ultimately leading to financial empowerment and success.

Highlights

• Danny Harvey opens by challenging the "it is what it is" mindset, urging you to take control of your future 🎤
• The talk highlights the important distinction between dreaming and goal-setting, where goals are actionable and measurable 💪
• Harvey introduces the concept of time value of money, explaining its impact on wealth accumulation over time ⏳
• He stresses the need for budgeting and understanding financial inflows and outflows for better control over finances 💡
• The audience is urged to understand their financial position, including their assets and liabilities, to make informed decisions 📈

Key Takeaways

• Shift from passive dreaming to active goal-setting for a thriving financial future 🌟
• Understand the time value of money and compound interest to maximize your wealth over time 🕰️
• Create a budget to manage your finances and set a path for achieving your goals 📊
• Assess what you own and who you owe to understand your financial worth 💡
• Use your credit wisely to save on interest rates and secure better financial opportunities 💳

Overview

In his TEDx talk, Danny Harvey takes on the mindset of "it is what it is" and flips it on its head, making a strong case for taking charge of one's financial destiny. Harvey uses a friendly and relatable conversational tone to motivate listeners to not settle for less, but rather to dream big and translate those dreams into specific goals.

Introducing the audience to the concept of the time value of money, Harvey explains how understanding this concept can significantly enhance one's financial well-being. He highlights the power of compound interest and deems it essential for long-term financial growth. By stressing the importance of timing, he encourages taking advantage of current opportunities rather than postponing them.

To press on the importance of financial literacy, Harvey advises creating a budget, knowing your net worth, and being aware of your credit status. He likens financial planning to setting up a strong foundation, where understanding what you own versus what you owe becomes crucial in setting realistic and achievable financial goals.

Chapters

• 00:00 - 01:00: Introduction and Dreaming Big The chapter begins with a casual and familiar greeting, indicating a positive and friendly interaction. The focus quickly shifts to a discussion about the individual's future plans and dreams. There is a sense of excitement and positivity as they share hopes and ambitions for what lies ahead. The conversation maintains an upbeat and encouraging tone, emphasizing the importance of dreaming big and planning for the future.
• 01:00 - 02:00: Future Planning and Realities The chapter focuses on future planning and the aspirations individuals hold for achieving life goals. It highlights milestones such as buying a first home, providing a debt-free college education for children, and enjoying travel during retirement. It emphasizes the dreams of home ownership as a great investment, the value of a debt-free educational opportunity for future generations, and the joy of retirement travel. The narrative is positive and forward-looking, encouraging a connection and relationship-building for shared future experiences.
• 02:00 - 03:00: It Is What You Make It The chapter discusses the concept of accepting circumstances and making the best of what one has. The narrative involves a conversation envisioning the future, looking five and ten years ahead, to illustrate how one's dreams and reality might evolve over time. The speaker reflects on buying a first home, acknowledging it may not be in the perfect location or meet all expectations, but still feeling content and grateful for what has been achieved. This outlook embodies the principle that life is what you make of it, emphasizing the importance of adaptability and gratitude in shaping one's personal journey.
• 03:00 - 04:00: Taking Ownership and Setting Goals The chapter discusses the theme of taking ownership of one's financial and educational responsibilities. It presents a scenario where a parent feels content despite financial constraints, as their child is able to attend a good college through a combination of scholarships and loans. The parent accepts the reality of ongoing work and the delay of retirement, emphasizing the importance of education and the movement of life with the emergence of grandchildren.
• 04:00 - 05:00: The Importance of Time and Financial Planning In this chapter, the discussion centers around the critical nature of time and financial planning. It highlights the significance of asking the right questions when faced with financial decisions or trying to change one's financial circumstances. The focus is on taking responsibility for one's financial situation and understanding that the way things are – financially – is often a result of one's past choices. The conversation stresses the importance of acknowledging these choices and learning how to make more informed financial decisions moving forward. Rather than accepting the status quo ('it is what it is'), the chapter encourages the reader to actively engage in strategic planning and critical thinking to improve their financial future.
• 05:00 - 07:00: Setting a Budget and Understanding Credit In this chapter titled 'Setting a Budget and Understanding Credit,' the discussion revolves around personal responsibility and empowerment in financial planning. It emphasizes the importance of taking ownership of one's financial situation. The speaker encourages listeners to focus on their individual goals and dreams, rather than external circumstances ('it's about you'). The conversation suggests that the key to successfully managing finances, including setting a budget, lies in personal accountability and control.
• 07:00 - 09:00: Risk, Return, and Investment Strategies The chapter discusses the distinctions between dreams and goals, emphasizing the transformative power of goals in one's life. Dreams serve as inspirations, while goals are actionable and measurable entities that stretch and change one’s life significantly.
• 09:00 - 10:00: Empowerment and Conclusion The chapter titled "Empowerment and Conclusion" discusses the importance of understanding the costs associated with achieving goals, including time and financial costs. It emphasizes that knowing these costs is essential for setting realistic goals. The chapter also highlights the necessity of understanding and managing time effectively, indicating that while the concept may not be novel, it is crucial for empowerment and successful goal attainment.

It is What it is...No It is What You Make It: Your Financial Future | Danny Harvey | TEDxLSCTomball Transcription

• 00:00 - 00:30 [Applause] hello how you doing funny running into you here how have you been it's been a while what's going on with you oh things are good you're excited about your future and all the plans you have and your dreams well that's great it's been a while sharing with me it's not top secret is it oh okay so you you plan and
• 00:30 - 01:00 you dream of the next 5 years to get that first home in a specific neighborhood it's awesome home ownership is great great investment in 10 years you're going to send your son to college and pay for it so he's debt free debt free it's a great term that's awesome and then in 25 years you you're dreaming of retirement and traveling that's awesome that's awesome you have a great life and future ahead of you uh let's definitely stay in touch because baby you can take me on one of those trips
• 01:00 - 01:30 right that'd be great now you said you're you know you're dreaming about your future well let's dream for a little bit so let me let let's dream that you know I run into you five years from now and you say well you know I'm getting that first home you I'm kind of excited you know you know it's not the neighborhood or the area I wanted you know I couldn't get the loan for that amount but you know it is what it is it's okay I I have a home and then you know I run into you 10 years from now and we talk and you're excited your son
• 01:30 - 02:00 got into his first choice school he's getting a scholarship it doesn't cover everything but he's going to get loans to pay for the rest and you say you know it is what it is I just didn't have the money uh but you know my son's going to get a great education he's going to college and then 25 years from now we talk and you say you know I'm not retiring yet I'm still working it's okay I'm not retiring yet I'm working it's okay uh but you know it is what it is you know I got grandkids coming life is still moving
• 02:00 - 02:30 well you know if those are the conversations we're having you know I'm going to have to stop you there and you know I don't want you to get upset with me and I don't want to get cross with you you know you're kind of a big guy I don't want you to hurt me but I I wouldn't say I I don't agree with you that it is what it is that's how you made it okay that's how you made it that's how you made it well you say you know how did I make it that way or you know what can I do since I made it that way well this is a great conversation because you're asking the right questions okay now you made it that way
• 02:30 - 03:00 because it was your plan your dream key word is there is you not it every time you know we came up and we talked about something in your life you said it is what it is but every but before that you said you dreamed of this you planned so it's about you it's about you okay so you say well okay it's about me what you know what do I do what do I do well again it's great conversation okay so what do you do first of all you you take ownership okay you take control of you
• 03:00 - 03:30 you understand that it's your life not its life it's your life the things you want to do and then also you said you know you were dreaming these are dreams well they should be goals and you asked me what's the difference between a dream and a goal again you ask great questions a dream inspires you in life a goal will change your life okay a goal will change your life a goal is something that's measurable it's going to stretch you it's attainable
• 03:30 - 04:00 uh it's going to have a cost associated with it you need to know that cost what's the time cost what's the financial cost to achieve that goal okay now you say okay I understand goals and that's great and I need to have goals what else do I need do I have to say again you ask great questions you need to understand time now I say time I'm going to say a few other words but nothing Earth shattering nothing that you haven't heard before right but the key word with the key thing with time is
• 04:00 - 04:30 are you going to take advantage of this time we have now this conversation that we're having because again the things I say you've heard before but is it your time to take hold and apply them to your life okay now with time we say there's a you know Financial concept I want to introduce and it's it's not a big word but it's time value of money well what's time value of money that simply this a dollar today is worth more than a dollar tomorrow a dollar today is worth more than a dollar tomorrow okay and then then also with that compound interest
• 04:30 - 05:00 interest on interest that's a big concept of time value of money okay we want to take advantage of interest on interest okay so I understand I know I need to have a goal and you know I got to take advantage of time and understand that what's next well you need to set yourself okay you need to set yourself because you're ready now you understand you're doing the research for your goal know what the time cost what the financial cost now you need to set yourself you need to take inventory of what's coming in and what's going out from a financial perspective
• 05:00 - 05:30 what's coming in what's going out accountants call that a income statement I call it what's coming in and what's going out we need to understand that because everything that comes in can't go out we need to save some of that we need to save some of that to go towards those goals okay so you have to dare I say the b word create a budget from what's coming in and what's coming out so that you don't spend it all now we hear the word budget and we get you know that's restraining that's constrictive well we we have to have control over
• 05:30 - 06:00 ourselves okay that's self-control you know Jan Jackson had a song control you're grown you have to control yourself okay I can't control you no one can control you you have to control your your time and your resources okay once you have inventory that create the budget what do I own and what and who do I owe you need to understand that what do I own and who do I owe accounts call that a balance sheet I call it who what do I own who do do I owe you need to
• 06:00 - 06:30 understand that once you understand that you have an assessment of what your value is what's your worth okay then you need to understand credit what does my credit look like what do creditors say about me because to get that home you're going to need a loan okay can you get the loan that you want what does my credit say you need to understand that once you understand that that's going to help you with your interest payments again help you save some of what's coming what's going out by paying lower
• 06:30 - 07:00 interest rates okay we want to be able to do that now you say Okay I I know what's coming in I know what's going out and I I know who what I own and who I owe and I have the big b word and I'm I'm controlling myself you know I got to invest what do I invest well before we do that we need to understand two RW risk and return okay again terms we've heard before we need to understand risk and return they go hand in hand the higher the risk the higher the return
• 07:00 - 07:30 the lower the risk the lower the return but let me jump back to that time word if we understand we need to take advantage of time now and start now we can we can take lower risk because of the compounding effect will happen more times we don't have to be as risky because again your risk profile is different from my risk profile okay so if we understand that and take advantage of time we can not have to take as much risk or you don't have to take as much risk okay so now you know you're ready
• 07:30 - 08:00 you understand goals uh you've asked great questions about time and you know what do I do and invest now because you've done all this you spent the time you researched and you gotten more information you can research what you want to invest in you can do it or if you say well no that's not what I do every day you now can know enough to qualify a person to help you okay you can qualify a person to help you so again like I said this has been a great conversation you ask great questions
• 08:00 - 08:30 you're ready you're set all you have to do is go again it's you it's not a it thing it's a you thing you make your life happen you make your goals happen Okay use the dreams to inspire you you make your goals happen look forward to talking to you soon Ready Set grow