ABOUT THIS EPISODE

Earlier this year, I had the pleasure of sitting down with financial expert and author David Bach. You probably know David from his amazing personal finance books, which include The Automatic Millionaire, Start Late, Finish Rich, and Smart Couples Finish Rich.

As a keynote speaker at FinCon this year, Bach made his way to Dallas to share his wisdom with money nerds like me.

This was a surreal experience for me because I’ve admired or, better said,  had a “man crush” on David for several years because of his transition from a financial advisor to a globally recognized author and speaker.

Essentially, he has laid the stepping stones for a journey that I’m right in the middle of.  So to meet him in person AND get some 1-on-1 time had me in a wonderfully giddy state. 

Here’s what you’ll learn in the interview:

  • How I first was introduced to David Bach in 2005 while on tour in Iraq. Because when you’re deployed, the only things you do in your free time are workout, play poker and read.
  • How David’s childhood really paved the path for his understanding and interest in the financial advising world.
  • Hear what the turning point was for David transitioning from the financial advising segment of his career to chasing his passion.
  • How did the actual transition take place to pursue his dream? Hear what the process looked like with the realities life has… providing for your family, taking care of your wife, moving across the country, etc.
  • How David was able to reach his goal of teaching 1 million people.
  •  What by-products came from chasing his passion that really were not planned, but certainly are a bonus today. (This is the GOOD STUFF!)
  • How when you’re passionate about something, you really never get tired of teaching about it.
  • How taking a year or more sabbatical to rest and reflect is actually a really terrifying decision to make… but the single greatest thing David can recommend to anyone.
  • How you can plan and prepare to take a sabbatical in the coming year.
  • Hear what would be a success over the next three years for David and how he’s setting those goals now.

You can watch the interview here:

And if you want a free copy of David’s best-selling book The Automatic Millionaire, I’m giving away 10 copies.  Holla!

For your chance to win you just need to do 3 simple things:

  1. Subscribe to my YouTube channel.  Just click here.  Easy peasy.
  2. Like this video. 
  3. Leave a comment. 

That’s it!

Or you can read the interview transcription below.  Enjoy!

Interview with David Bach

Jeff Rose: When you’re in Iraq and you have downtime, you either work out, play poker, or read books. I took a lot of books with me, probably because I was on a John Grisham kick at the time. I took every single John Grisham book with me and read them all before looking for other books to read.

The cool thing is, soldiers were getting books all the time. So, all the other units that were there before us left books for us to read, too. I saw this book called The Automatic Millionaire by David Bach. I had heard of the book, but never had the time to read it until I was on deployment.

David Bach: Wow!

Jeff Rose: If I recall correctly, I read it all in about a day and a half. I just absorbed it.

David Bach: That’s fantastic. The goal of that book was to make it so anybody could read it in a really short amount of time. That way, they could easily go and act on it.

Jeff Rose: I remember I read it and then everyone that was deployed with me knew I was a financial advisor. So, people would tell me they wanted to get a handle on their finances and ask me what book they should read. I started telling them about your book. This was 2005.

David Bach: That’s amazing.

Jeff Rose: Yes, that was the first time I was introduced to you and your ideas like “the latte factor.” I just wanted to say “thank you” for encouraging me and inspiring others how to handle their money differently.

David Bach: I just got chills. I didn’t know this was coming, so thank you. It really makes me feel good. First of all, thank you again for your service. It makes me feel good to know that it was reaching you in Iraq. I just had the privilege of speaking to a group of people who were transitioning out of the military, and we gave everybody copies of The Automatic Millionaire. I also gave a talk. You guys do such a service for our country and financial education is so important when you make the transition from the military to the civilian world. I’m glad I could help you and I’m glad I could help some of your friends.

How David Started His Career as a Financial Advisor

Jeff Rose: Yeah, that’s awesome. I kind of want to take a step back. You’re a New York Times Bestselling Author. You’ve written a lot of content and put a lot of amazing advice out there. Before that, you were a financial advisor with Morgan Stanley. Can you tell me a little bit about how that started? What made you want to become a financial advisor?

David Bach: I don’t know how much of my story you know, but I grew up in the business. My dad was a financial advisor. They used to call them stockbrokers. I still remember walking into my dad’s office. They had ticker tapes. Most of you who are watching this have absolutely no idea what a ticker tape is.

Before there was this thing called the internet, before there was a Quotron machine and stock quotes came off of a ticker tape machine. You would actually go into a stockbroker’s office to find out where the stocks were trading. You don’t even know what I’m talking about.

Jeff Rose: I’ve seen the movies. 

David Bach: They would tear a piece of paper off. As a three or four-year-old kid, I remember going and getting those pieces of paper and bringing them to my dad’s office. I remember when the computer came out and the Quotron was the first machine to give you a stock quote. My grandmother helped me buy my first stock at age seven. It was in McDonald’s. She taught me how to become an investor one day at McDonald’s. She took the Wall Street Journal, circled the stock, showed me MCD, put me in front of the TV, and taught me how to read the stock quotes going across the bottom of the screen. I started investing at seven. At age nine, my dad started teaching retirement classes.

When I was nine, my mom told my dad he needed to bring me to the class so I could at least see him one night a week. He did and he dressed me up in a suit and tie. I sat in the back of the room. During the breaks, his students would come up and tell me what they learned from my father that changed their life.

In 1993, I joined the business and went through training. I also started teaching classes right away. Eventually, I started teaching classes that taught women how to manage money. That happened because, in a very short period of time, I set in multiple meetings with widows. I met with three in a month. They were very unprepared.

Financially, they were okay and they were lucky because my dad was their advisor, but they knew very little about money. I was sort of shocked. I thought,

“I’m going to do something and create a class for women and money.”

That’s what started my passion. I started teaching these classes until they became more popular. As my classes became more and more popular, I wanted to reach more people.

The Scariest Career Jump of His Life

Jeff Rose: Your business is thriving. You’re teaching seminars. You’re kind of reaching this point where you have a higher calling, like there’s something bigger here than just managing money. We were just talking about how you were in the Strategic Coaching program, which is something I was in for five years. I listened to an interview that you did with Dan Sullivan. I’m not sure how long ago this was, but I remember it was a CD that I listened to in my car.

I still have it, but what I remember about the interview is that you said you were sitting in your office and I think you had a client call in that was trying to get their dividend check deposited while traveling overseas.

You kind of had this out-of-body experience where you wondered if it was your life’s calling to make sure your client’s dividend check was deposited while they were traveling. I think we’ve all kind of had moments like that. I’m curious because many people want to chase their calling and their passion forever. You have a thriving business. You’ve got no reason to not continue to do that.

David Bach: Everybody told me that I was out of my mind. I was nine years into Morgan Stanley. At the time, I think I had around $700 million in our management. I had built a fee-based business. Anybody who is listening to this knows that is the holy grail. I was doing financial planning and fee-based business and this was the 90’s. People looked at me like I was crazy when I said I was going to change gears.

“You’re going to move to New York and write books and try to help a million people? What are you going to do if that doesn’t work?”

Jeff Rose: Can you talk a little bit about that? Just making that bold leap. How do you go from a fee-based business that’s on autopilot for the most part and to turn your back on that and say, “I want to do something else?”

David Bach: There were multiple parts to this. Interestingly enough, Strategic Coach was also a part of that. I started Strategic Coach in 1997. I had gone through Tony Robbins program in the early 90’s. I was in real estate first. At a Tony Robbins seminar, I kind of came up with my overarching big mission, which I wrote in a journal:

“I want to go out and teach a million women to be smarter with their money so they can protect their families and teach their kids.”

I became crystal clear on what I felt like I was here to do with my life.

The problem is, having a calling can really complicate your life. Let’s just be totally honest, right? I was set living in the Bay Area with a beautiful home, a country club membership, and a great career. I decided to throw all that away so I could help other people.

I’ve had lots and lots of success, but none of it’s been easy. What did I actually do to make the transition? I went through a lot of pain.

First, I went through the realization that I wanted something different. That’s where that story that you’re talking about with Dan Sullivan came in. I had that moment – a lightbulb moment. Basically, I built this great business with Morgan Stanley and I had succeeded as a financial advisor. The more you succeed as a financial advisor, you start to work with wealthier and wealthier clients. It’s part of the way the business is set up. I’m going to work with wealthier and wealthier clients. I’m going to work with fewer of them. Once I was in my late 20’s, I could start to see the rest of my life. Basically, for the next 20 years I’m going to work with a hundred or fewer wealthy families and that’s all I’m going to do? By the way, I’m not judging anybody if that’s what they do for a living. I know people who work with 10 families and they have the greatest life ever.

But, I wanted to go around and teach more people. I was teaching people Smart Women Finish Rich, which was my first book. Then I did some more, and I was flying all over the country. My wife was super supportive, but I was gone a lot.

Jeff Rose: You’re still in your practice at this point?

David Bach: I’m still in my practice. It’s like working three jobs. I’m running a practice and I’m promoting these books and I’m promoting the seminars. I was flying back and forth from California to New York a lot because that’s where all the TV is. I was very blessed. I kept getting asked to go back on The View over and over again. I’m on The View with Barbara Walters for a long time, like an eight-minute segment. She just kept talking and talking with me. I’m like, “Oh my God, I’m on The View with Barbara Walters.” If my grandmother would have been alive to see this, she would be so proud.

I got back in the car and I said to my wife, “This was amazing. That was the best show I’ve ever done. I just spent two days traveling to be on TV for seven minutes. If I’m going to really do this, we need to move to New York.”

She said, “If that’s what you really want to do, then let’s do it.”

I hired a coach and I kind of worked through what would it take for me to make that transition. I didn’t just wake up and do it one day. The transition was probably about a 12 to 18-month period of time where I really worked it all out. I worked it out financially. I worked it out mentally. I worked it out with my family and then I did it.

Then 9/11 happened. I told all my clients I was basically retiring and moving to New York. It wasn’t retirement, though. I was going to move to New York and try to teach millions of people. I did that in June, July, and August and 9/11 rolled around. I rushed into the office and started calling all of my clients.

They said, “Well, you’re not going now, right? You’re not going to New York now?”

Not only did we go to New York, but we moved downtown. We moved to New York in November 2001.

Hitting the New York Times Best Seller’s List

Jeff Rose: You made the move and made the transition. Now you’re writing more books and doing more workshops. When did you actually make the New York Times Best Seller list? Was that your second book?

David Bach: Smart Women hit the Best Seller list, but not until eight or nine months after it came out. I did a PBS special. The PBS special on Smart Women Finish Rich started airing everywhere and I was running all over the country. Then I starting having financial advisors teaching my seminars. We licensed Smart Women Finish Rich.

I packaged up my intellectual property. I took what I was already doing, that I knew would work, and I trained other financial advisors to go do it. When I did that, I started to scale things up.

At one point, we had 100,000 people a year going through seminars I wasn’t teaching. It was all my content. All these people are getting great, free help and then the advisors were getting clients from it. Everybody won. That’s how I ultimately reached a million people.

Jeff Rose: You reached your million people. That was one of your goals.

David Bach: I did. It took seven years. I’m not just measuring books. Between live events and books, we reached well over a million people. Kind of from the way I was measuring it, it was a seven-year timeframe.

Oprah vs. New York Times – Who Wins?

Jeff Rose: What was more exciting for you – hitting number one on The New York Times Best Seller list or being on Oprah?

David Bach: Wow. Being on Oprah. I have dreamed of being on Oprah and seen it in my mind for 10 years. I have letters. I came to Morgan Stanley in 1993 and started sending letters telling her she should have me on the show. I had no idea what I was talking about. I had never been on TV. I had no books. I tell this story on stage all the time. How did I get on Oprah? It just took 10 years, five books, and me doing every single media in the world other than Oprah.

There’s a moral behind that. By the time I was on Oprah with her, I was ready. If you go back to why I wanted to be on Oprah, I wanted to be on Oprah because I wanted to inspire 10 million people across America to pay themselves first. One hour a day, automatically, for life. That was my mission.

If you look at why I am sitting here at the Sheraton in Dallas, which is 14 years after that show aired, and I’m here because I updated this book and I’m still doing all this stuff because I’m still obsessed with the same exact thing I was obsessed with back then. I decided I wanted to reach the millennials and make one more push before I’m done here.

Being on Oprah was amazing because I knew I was going to reach 10 million people with that show. We taped that show. The next day they called me and said it was the last taping of the year. It doesn’t air live. At least the show I did didn’t air live. It was taped in November. It’s supposed to air the first week of January. The book was launched on the show.

They tell you not to tell anybody until it airs. Until it airs, it’s not airing. The day after this show taped, they called me and they said, “If this show does for America what it just did at Harpo, this show’s going to be a home-run.” I said, “What happened?”

She said, “So many people signed up for the 401(k) plan after you left Harpo. They either signed up or they increased their 401(k) contributions.” If that can happen on Harpo, when this show airs in America, it’s going to be transformational. That’s what happened.

Jeff Rose: That’s awesome. I remember hearing that. I don’t know if you did an interview with somebody else, but the number of people that signed up afterwards, that has impact. People actually took action, which is awesome.

David Bach: My passion hasn’t changed since then. I just did a speech for the parent company of Advisor Excel. They have over 500 employees. I just did The Automatic Millionaire presentation for all the employees. I said to the founders, “Look, guys. I’m going to be there. Let me go do the speech for everybody who works here.”

They were, “Most people are signed up for the 401(k) plan. They’re doing pretty well.” I’m like, “Well, let’s make them do better.” I said, “Let’s track it.” Within five days of me doing the speech, 133 people increased their 401(k) contributions. That’s life changing.

Most of the people in this company were millennials. I’m there. I’m like, “Guys, I don’t care. If you’re doing 8%, I want you doing 10%. If you’re doing 10%, I want you doing 12%.”

When you love what you teach, it doesn’t get old. When you start to hear the stories and the transformation that people have, it gives you more fuel.

Strategic By-products of Making the Leap

Jeff Rose: Yeah. You leave Morgan Stanley, you’re writing books, and you’re still teaching. You’re living the mission that you set out to do. You kind of had things in a vision, I guess – things that you thought were going to happen, things you wanted to happen. Was there anything that did happen that was a strategic byproduct or some sort of unexpected partnership that came along that you didn’t see?

David Bach: That’s a classic Strategic Coach word – “a strategic byproduct.” Once you go into Strategic Coach Dan, we love you. You start to have this cult language. For people who don’t know what that means, a strategic byproduct happens when you create a goal, you work towards that goal, and something amazing happens as a result of working toward that goal.

My last 25 years have been one giant strategic byproduct. I went off and taught a class for women and money for my clients. That class became so popular that I started teaching it on bigger and bigger stages. This led to a bigger mission, which led to a book, which led to a PBS show.

I brought the idea of Smart Women Finish Rich, the seminar program, to Morgan Stanley and had this entire idea of how we’d have offices across the country and we’d be in a hundred cities doing this. Well, they passed. They said, “Well, you’ll do it and then you’ll take all these advisors out of Morgan Stanley and you’ll leave.” We ended up getting a phone call. I think it was Registered Rep Magazine. I’m doing PR and I get a phone call from a mutual fund company. The next thing I know we’re doing a partnership with them and a licensing deal.

That’s how I got Smart Women Finish Rich into the entire financial services industry. Same firm, different side of it. Every firm on Wall Street is teaching my seminars now except for Morgan Stanley because I did a carve out.

Jeff Rose: That’s awesome.

David Bach: When I left in 2001, they said, “Well, look, if you’re going to leave, let’s do a deal and you can train all of our advisors.”

We did. I went and trained 750 advisors for Morgan Stanley, toured the entire country for Morgan Stanley, and we did some more Couples Finish Rich tours all over the country.

Taking “Some” Time Off

Jeff Rose: Wow. When you’re passionate about something, like you said, you can teach it all day long. You can do it all day long. It’s 24/7. Dan Sullivan calls it the unique ability. I know it’s something for me that I struggle with at times because I get so passionate about something that I want to do it. But I also recognize that I do have a wife, I do have kids, and I do have to unplug. Here recently, you took a “free day,” right?

David Bach: I took the free year.

Jeff Rose: A free year. You took a one-year sabbatical, or maybe, I think it was 18 months.

David Bach: Eighteen months.

Jeff Rose: An 18-month sabbatical. Now, you’re the bread winner and the sole provider. How do you go from providing everything for your family to taking 18 months off to be a dad?

David Bach: That was scary, too. That was as scary, if not scarier, then the decision I made to leave Morgan Stanley. It’s scary to stop. We’re going and going and we’re going. I was afraid. What if I stop? Am I going to be able to start again? I had reached a point, and it happened actually in Strategic Coach, where instead of working on a 10x plan for my business, I decided to 10x my free time. I started asking myself the question,

“What would it be like to not work for a year and just be a dad?”

I worked on the plan for a year. It’s the single greatest thing I ever did. Taking a sabbatical, which I highly recommend … I always say you don’t have to take a year. I’ve been going around teaching, basically, take six weeks. Take a six-week sabbatical. It’s funny because there was an article recently about how all over the world, basically most countries take six weeks off. We don’t. We take an average of five days a year off in America. I didn’t think I was burnt out. I didn’t think I was tired, but I knew the passion wasn’t the same.

Something felt wrong and I didn’t know what it was and then I took a break. I got present in my own life and I got all my energy back. That was the big miracle. At the time I was 46 and I was feeling 50. Today, I’m 50 and I feel 30.

I was doing an interview with Arianna Huffington who wrote this great book Thrive and I said, “Arianna, you talk about recharging your batteries.” I go, “You take a sabbatical, you replace your battery.”

For me, taking that time off completely replaced my battery. That’s why I’m even here right now with you. First of all, it’s amazing to be a dad, amazing to be traveling, amazing to have that free time. Also, at the end of the year, I was ready to work and all of my creative energy was back. That’s what led me to do a deal where I became a Vice Chairman of a large RIA. That’s what led me to want to go bring all this stuff back out again. That’s what led me to start another financial services company. Sometimes I think we need to take those breaks and recharge.

Jeff Rose: Yeah, it was funny. Just following you on social media, I could definitely tell when you came back. I didn’t know that you were on sabbatical but, all of a sudden, you’re on your blog and you’re on social media and the book’s coming out. All of a sudden, he’s back. David’s back.

David Bach: Also, I didn’t go around telling people I was taking a sabbatical, so it was very interesting. I didn’t know, truthfully, if I could do it. I didn’t know if I could just stop working. I’m like, “I’m going to not do anything. I’m not going to go do the Today Show. I’m not going to write a book. I’m not going to do speeches. I’m not going to do anything. I’m not going to be on social media.”

I’m like, “I wonder how long it will take for people to notice?” We think what we’re doing right now is so important. If I don’t put this video out and I don’t deliver every week this free content that you’re not paying for, what will happen to the world if I don’t update my blog and update my YouTube video and send a Tweet out and post on Facebook?

You know what happened? The world keeps turning. It’s actually very humbling. About three or four months in, people start emailing and making sure you’re not dead, which is exactly what happened. “Are you okay?” It wasn’t like you got 10,000 of those. My friends knew I was okay because my friends knew I had taken a break.

The next time I take a sabbatical I will publicly share on taking a sabbatical. I’m going to take another sabbatical. I haven’t decided what year yet, but I think we should take breaks every seven years. That’s my new theory. Every five to seven years. I think if you take a break every five to seven years, then it’s not about retirement. Instead of retiring at 60 or 65, if you can take a break every five to seven years, the energy that you’ll get propels you to maybe just always be doing something for the rest of your life.

Jeff Rose: Right. A very good friend of mine is in the process of taking a year sabbatical and he started earlier this year. I didn’t know until February or April, sometime in the spring, that he was taking it. I had a chance to meet with him through this whole time frame. I just love hearing it. It really inspired me. I don’t know if I’m ready to take a year yet, but I like the idea of taking six weeks. I told my wife, I’m like, “What do you got to do?” You just got to put it on the calendar, just make it happen.

I’m going to try to cheat a little bit and try to do it around Spring Break so our kids are out of school. That may help out a little bit.

David Bach:  It’s interesting because, when you say something like take a six-week break, the first thing that people start to think about is why they can’t do it. Really anything like this.

I always go back to write all the reasons why you can’t do it and then come up with what the solution would be. You take an example like Spring Break. Spring Break is like two weeks long. The next thing you know, putting another four weeks on top of that, it’s 25 work days or it’s 25 school days. Then, there are holidays in those 25 days. When you start to break it out, you go, “Maybe it’s not that hard. Maybe we actually could do this and if we planned it a year out, or two years out, of course we could do that.”

We’re shooting this at the end of 2017. You can’t tell me that you can’t figure out a way to take off six weeks in 2020. You might be able to tell me you can’t take it off in 2018, but 2020 is three years from now. It’s just about planning and making decisions. It’s funny because I’ve had a lot of friends take sabbaticals now, too. I think a lot of it’s because they saw what happened to me. It’s kind of like, “Wow, that actually worked out okay for you.”

Jeff Rose: Yeah. I feel like God keeps putting me around people that are taking sabbaticals. I think he’s knocking on my door and I just got to open up and listen.

David Bach: I was about a month into my sabbatical. It was like a miracle. I felt so good. I was sleeping so well. I was so blissfully happy and I’m walking my son to school and I’m like, “Life can’t be any better than this.”

Here I’m walking him to school and Jack looks at me and goes, “You know dad, do you ever worry that now that you’re not working you’ll never be able to do anything again for the rest of your life? Like you won’t be able to write another book or be back on television or make any money and we might lose our home?”

I was like “Are you kidding me?” Every fear I could have ever had was somehow voiced out of a twelve-year-old. I was in the perfect blissful state, but thanks for bringing up every insecurity. I don’t know if he said the part about the home. I think I threw that in. I was like, “Yeah, actually I do worry about that, but I think it will be okay.” It’s funny. You know what? It always does end up being okay.

His 3 Year Outlook

Jeff Rose: Awesome. David, I’ve got one last question for you to wrap this up. Imagine it’s three years from now and we’re doing another interview and we’re reflecting on what has happened over that three-year period. What would have happened in your life both personally and professionally for those three years to be a success?

David Bach: Let’s think about that. I actually just wrote out my next three-year game plan on the plane flight out here. I’m not going to give it all to you because there are certain things that are very personal to me. I’ll give you some things that I’m working on that I’m focused on the next 36 months.

First, I’m a co-founder of a firm called AE Wealth Management. In just 18 months, we’re the fastest growing RIA in America. We have empowered over 200 financial advisors to come onto our platform. We have 2.5 billion in our management. That’s fast going from ground zero with no private equity money and no outside capital.

My hope is that, 36 months from now, we are up to a thousand advisors. As I say that, my team’s going to go, “What did he say?”

I’ve got a big dream for this firm. I’d like to see us empower a thousand independent financial advisors who are RIAs to build the best financial planning business that they can in their community. That’s one from a business perspective. I going to shoot for 10 billion in 36 months. I just became an advisor for Clarity Money. I don’t know if you’re familiar with Clarity, but it’s the hottest financial app going in 2017. It is Mint on steroids. I just was blown away by this app to the point that I basically came knocking on Adam Dell’s door.;

I’m also an investor in Acorns, which is the fastest growing firm for millennials. I’m excited about that. From a personal perspective with books, I’m putting Smart Women Finish Rich and Smart Couples Finish Rich back out. I also have two books I’m working on, Smart Kids Finish Rich and The Latte Factory. Those books will come out in 2019.

If I’m getting together with you in less than 36 months, I’ve got two more books out, at least another 100,000 people through the seminars, and I’ve gone on another major sabbatical at some point.

Jeff Rose: Well, I’ll just give you one from me. I will have taken at least one six-week sabbatical.

David Bach: Love it.

Jeff Rose: Cheers. David, thanks once again for sharing your wisdom and just inspiring others and for all you do, man.

David Bach: My pleasure. By the way, congratulations on everything you’ve done. I knew about you over a year ago. I’ve seen what you’ve been doing online and you’re having a huge impact on people and it’s really cool. You’re following your passion.

Jeff Rose: You’re right. I am.

 

 
 
 
 

The post The Automatic Millionaire with New York Times Best Selling Author David Bach appeared first on Good Financial Cents®.

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TRANSCRIPT

00:00:00so what does it take to become an automatic millionaire find out more on Good Financial sense podcast episode 99 welcome to the Good Financial sense podcast and Iraqi combat veteran Jeff Rose
00:00:30what's going on g f c community back with another podcast in this is a fun one for me because I got a chance to interview someone that I have admired for quite some time we're talkin years I mean I probably over a decade. Few years after becoming a financial advisor but I read one of his books he's wrote several books but the other cool thing about this book is not so much that I read it but it's where I read it and how I was introduced to him which will find out more later on in this interview so this is a treat because this is someone that has followed in his footsteps of becoming a financial advisor he is now not so much that advisor to do individual clients but now he's at author a speaker and has done a lot of amazing things since letting go of his of his match playing practiced but I'm sure you're part of the title so you can know who it is
00:01:30yes but I am interviewing the man the myth the legend David Bach who is a New York Times bestselling author has published over 7 or sold over 7 million copies of all his books and I got a chance to meet him at think on which is the find water conferences was in Dallas earlier this year so not only did I get a chance to meet him a person but he agreed to sit down for a fun interview and just to learn his journey from letting go of a thriving financial planning practice to than chasing his dream of becoming a speaker author and just a half a pint of expert and thought leader and just share like man just some of the struggles and a lot of it the mental blocks he had to go through to get to where you at today so this was an exciting interview for me and I know that you're going to love it so without further Ado here is New York Times bestselling author David black
00:02:32then thank you for joining me today I really truly a pleasure to have you once I want to tell you I was first introduced to you so I was deployed to Iraq back in 2005 thank you and you haven't thank you for acknowledging when you're in Iraq and you have down time you either workout play poker or you read books and I took a lot of books with me I was in a John Grisham kick at the time so I had to like every single John Grisham book with me read them all I think probably a month or so and I was just looking for other books to read now the cool thing was I mean Soldier getting booked all the time and all the kids before the before they were there before us have left books in the first to read and I saw this book the automatic millionaire by the book but I hadn't read it until I was on deployment and I rent at I recall correctly I mean it was done in about Dana I mean I just absorb it
00:03:32really really sure. Times you can actually going on it and I just remember I read it and then everyone that was there so they were asking me if I want answers I want to buy the best thing like what book should I read automatic millionaire boy like you got to read this is the first time that I was introduced to you in just your teaching at the latte factor and just so many different things so I just want to say thank you for encouraging me inspiring others just the hell are reaching you and I just have the privilege of speaking to military people transitioning military service ization and that doesn't solve the country in the world
00:04:32and I just need you guys to such a service for our country and there's Financial education so important when you make the transition from the military to as they say the whole language in the military what it what's the word when you when you transition from military to civilian step back you know you you're a multi New York Times bestselling author author I mean you wrote a lot of content put a lot of amazing hunting out there before that you were a financial advisor with Morgan Stanley my story you know but I grew up in the business my dad was in financial advisor they used to calm stock Brokers so I mean
00:05:27call it acting like a little kid and I remember walking to my dad's for his office it was going to call Jay Barth & Company that was been purchased by Dean Witter and they're cheaper tips like much you for watching this absolutely no idea but before there was this thing called the internet there was a time machine stock quotes came off of a ticker-tape machine and you have to go to stop broker's office to find out where the stocks are trading and you ignore him talking about going and bringing them to my dad's office I remember when the computer came out in the courtroom was the first machine to give you a stock quote my grandmother help me by my first stock at age 7 was in McDonald's tell me how to become an investor one day at McDonald's Tommy took the Wall Street Journal Circle the stock show me MCD let me in front of the TV taught me how to read the stock quotes when I press the bottom of the screen
00:06:27dad's I start investing at 7 and at 9 my dad my dad built his business originally teacher retirement classes and so at 9 when my mom was like you know what you're gone all the time to choose glasses you need to bring your son to the class so he can we see you one night a week and he did and he dress me up in a suit and tie I sat in the back of the room and you know the brakes his student so come up and tell me how much my dad's what they learned from my father change their life so I grew up in it and then in 1993 I join the business and went through training and and thought well in a my dad built his business teaching I love to teach I started teaching classes right away when I fell into was in the first month of teaching a seminar fell into the need to teach classes for women money and that happened because in a very short. Of time I sat in multiple
00:07:27James widdoes I like this looks a little smaller than the table but with my dad and with are widowed clients at 3 a month and financial they were okay and they were lucky cuz my dad was there visor but they do very little about money and I was sort of shocked and so I got him to do something and I'm a credit class for winning money at that's what started my really like my passion started teaching her classes and just teaching them and teaching her teaching her and they became more popular businesses driving your teaching seminars where man that I have a higher calling like there's something bigger here than just demanding money that's exactly what happened and we were just talking about how you were in the industry to coaching program that something else in for 5 years and I listen to an interview that you did with Dan Sullivan Rush how long ago this was but I remember it was a CD
00:08:27and I still have it but what I remember about the interviews at I don't remember this an interview but you said you were sitting in your office and I think you had a client call in that was trying to get their dividend check deposited somehow I guess it's her traveling overseas and Out of Body Experience of is this really my life calling to make sure that my clients dividend check is deposited account while they're traveling overseas and I think we've all kind of had moments like that and I'm curious because for many that they want to chase they're calling their passion whatever that saying is and you still thriving business I mean you have a thriving business you've got no reason to not continue to do that which by the way too many people told me that everybody told me that like you're out of your mind like you know I was 9 years in a Morgan Stanley the Box we've had to give it time like $700
00:09:27and I built a fee based business by anybody who's watching this is funny and she was like that's the Holy Grail 90s so people looked at me like you're Crazy Ray's you going to go off to you moved in you working and read books and try to help him knowing people I know what to get you that doesn't work talk later about that making that boldly you know whether that was in yourself like mentored you to talk to your spouse I mean how do you go from a bee based business that is just I mean it's on autopilot for the most part into to turn your back on that has a I want to go do this. Strategic coach was also part of that like I started Sushi coach in 1997 I had gone through Tony Robbins program in the early nineties I was in real estate first came up in my overarching
00:10:27which was a journal I want to go out and get you a million women to be smarter with your money so they can protect their families and teach the kids crystal clear on what I felt like I was here to do with my life now the problem can only once you start to have that calling is that that calling can really complicate your life I was set living in the Bay Area beautiful Home Country Club membership great career and I decided to throw all that away to try and do something which is basically go teaching helping million people by the way the easy way to go it's not the easy way to go and I have lots and lots of tests but none of it's been easy so what did I actually do to make Transition I have went through a lot of pain rap wow there's something
00:11:27what I want what I have right now even though I work so hard to have it it's not enough and that's where that story was that you're talking about Jen Sullivan came in because I had that moment that light bulb so basically I built this great business at Morgan Stanley and I've succeeded as a financial advisor and the more you succeed as financial advisor you start with wealthy or wealthier clients as part of the Way businesses set up so I'm going to work with wealthy and wealthier clients I'm going to work with fewer of them so now I'm busy that was my late twenties I can see the rest of my life got some biscuits next 20 years I'm going to work with a hundred or less wealthy families and that's all I'm going to do at that point I had spent by the way I'm not judging anybody that that's all they do I know people who work with 10 families and they said they have the greatest life ever I wanted to go round and she's more people so I was teaching people smart women finish Rich that was my purse
00:12:27where can I get smart couples finish rich and I was flying all over the country and your wife's here and my wife is super supportive and I was gone a lot I'm still my practice on basement works at working 3 jobs right I'm running a practice and I'm promoting his books and I'm promoting the seminars and I was flying back and forth from California to New York a lot cuz that's where the TV is or was the time and I was very blast I kept being asked to go back on The View over and over again and I went on the view view I'm on The View with Barbara Walters for like a long time like an 8 minute segments just kept talking and talking with me I'm like I got them on The View and it was you I got done I'm going to gram she's like you're incredible you should be doing this with your life and I got back in the car and see if my wife said this was amazing I was the best show I've ever done I just spent two days trying to be on TV for
00:13:27minutes like if I'm going to really do this we need to move to New York and she said well and I hope I kind of works through like what would it take for me to make that transition and just like one day wake up and go so the transition probably was about 12 to 18-month. Time where I really worked it all out to work out financially works out with my family and then I did it and then I did it in 9/11 happen if you want to talk about like you make a plan and then things happen I transitioned I tell all my clients are retiring and moving in your cousin retirement I'm going to move to New York and I'm going to go try to teach me all these people and I did that in June July August in 9/11 World around and rushed into the office and started calling on my clients and they said well. Going now right you're not going to New York now
00:14:27legitimate question right like you're not going to New York now and your back then I was like I'll be damned if a chair is just going to change my life plan so I was sort of the opposite I was so fired up like now I'm going and we not going to be guarding your but we move downtown like we moved to New York and November 2001 so downtown so you made the move transition you wrote two books to read more books are doing more workshops what did you actually make the New York Times bestseller list so that way I can look so the PBS special on Smart women finish Rich it started airing everywhere and I was running all over the country and and then the seminars I started I had financial advisors teaching my seminars
00:15:27licensed smart women finish Rich packaging up your IP I packaged up my intellectual property I took what I was already doing that I knew would work and I trained other Financial buys used to go do it and when I did that I started to get scale and I still teach this to this day like we have our financial virus Dave you come over and I'm going to try to recruit this guy who can teach smart couple smartretirement rolling back out smart women finish Rich next year so our advisors teach these seminars and back in the whatever you're that was 2099 9 mm we started having advisors in all different firms teaching seminars so which was amazing because it won't pull it up with a hundred thousand people you're going through some of ours
00:16:15that wasn't teacher was all my content and he was all these people are getting a Neo great free help and then the advisors were getting clients from it so everybody want and that's how I felt when I reached annoying people was through thousands of financial advisors teaching seminars looks like between Live Events books what was the more exciting for you hitting number 1 on the New York Times bestseller list or being on Oprah Oprah and not for the reasons that I had dreamed of being on Oprah and seen it in my mind for 10 years so I have letters
00:17:15can have me on her show she did not have me on a show for smart women finish Rich she did not have me on the shelf by the time I got a child star life instead but I like how you gone over it's easy it just took 10 years five bucks and me doing every single media in the world Bradley other than and there's a moral behind that because by the time I was on Oprah with her I was ready and if you go back to like why I want to be on Oprah I want to inspire 10 million people across America pay themselves first one hour day automatically for life that was my mission and if you look at why am I sitting here in a hotel Sheraton in Dallas
00:18:07which is like 16 years after that's 15 years of the show her before she was on that show air and I'm sure cuz I updated this book and I'm still doing all this stuff cuz I'm still obsessed with the same exact thing I was obsessed with back then and you know I decided I wanted to reach the Millennials and make one more push before I'm done here to try to help more people then I've been throwing up and soap opera was amazing cuz I knew I'm going to reach 10 million people that show and not sure we take that show it the next day they called me and they said it was the last taping of the Year hadn't done it doesn't your lie was the show I didn't Airline was taped up November its supposed to hear the first week of January book was launched on the show but they tell you don't tell anybody until it is it's cuz like until they are so they called me
00:19:07the shows going to be home I said what happened she's like so many people signed up for k plan after you left Harpo either signed up or they increase your 401k contribution that they ordered a book for every single employee if that can happen to her phone when the show airs America it's going to be transformation and that's what happened that's awesome. I don't know if you didn't have you somebody else feel like nobody was signed up afterwards I mean that is impact and people have to take an action which is awesome it was then and I'll Paso changed I just did a speech for parent company of we were talking about if I was a child over 500 plus I just did the automatic millionaire presentation Volume Plus so I said to the founders look guys going to be there let me go do a speech for everybody who works here most people are signed up for the phone case
00:20:04and I said let's track it and within 5 days of me doing the speech 133 people increase your phone K contributions I don't care if you think you're if you're doing a percent I want you doing 10% of your doing 10% what you doing 12% of people have it gives you more fuel Stanley your your writing books you're still teaching I mean you're living the mission that you set out to do you say what yeah I had things kind of I guess I thought were going to happen if you want to happen did happen that would like a byproduct of some sort of unexpected partnership that came along that you didn't see but just because you put yourself out there because you start tasting your passion and then just let you know not listening and taking action I just came up like wow like that never would have happened had I not actually
00:21:04listen to Roscoe's to do to have this Colt language but it's a great phrase and what it is for people who don't know what that means is that you create a gold you work towards that goal and as a result of you might not even get to go you might not even get to where you thought you were trying to be and all these are things come out as result of it last 25 years been one giant strategic byproduct that mean I want off and try to class for women and money for my clients that class became so popular started teaching it on bigger and bigger stages which led to a bigger Mission which led to a book what should I do a PBS show which led to me I'll tell you a funny story this is going to be way too long fruit for everybody already I don't know how he's going to slices all up I brought the idea of smart women finish Rich the seminar program to Morgan Stanley
00:22:02at this entire idea how we have offices across the country and we being a hundred cities doing this and they passed they said well you'll do it and then you'll take all these advisers out of Morgan Stanley and you leave and we ended up getting a phone call a magazine so I'm doing PR and I got a phone call from the mutual fund company Investments happen to be on by Morgan Stanley the next thing I know we're doing a partnership with them in the licensing deal and that's how I got smart women finish Rich into the entire financial service industry
00:22:35Sam from different side of it so every firm on Wall Street speech my summer is now except for Morgan Stanley cuz I need to carve out I said fine every phone while she can teach you but it will look if you're going to leave let's do a deal and you can train them apart the entire country for Morgan Stanley and we did smart couples finish your chores all over the country wow like you said you can teach it all day long you could do it all day long I mean it's 24-7 Know Dan Sullivan called it the unique ability I know something for me that I struggle with the times because I'll get so passionate about something that I want to do it but I would recognize that I do have a wife I do have kids I that do you have to unplug you know Dan Cox. Taking the free day you took the free day but you
00:23:29next to take the free year per year so you took one year sabbatical sabbatical no kind of going back that question I ask from how you leave a perfect position you only have like your fee base furnace autopilot to to chase her passion now when you are the breadwinner you're the Sole Provider go from that speaking and writing books and teaching workshops so now I like I'm just going to be at that that was scary to that was as scary if not more scary than the decision I made rewards down because it's scary to stop you know where we're going we're going we're going to Dad's I was afraid like what if I stop and I got to go to start again but but I reached a point it happen actually in touch with you instead of working on a 10 x plan for my business I decided to text my free time
00:24:25and so I started asking myself the question of like what would it be like to not work for a year and just be dad just take my kids to school we go have lunch with friends won't work try not to work too many will travel ski my wife and just live and I was again it was very scary but I worked on the plan for a year and it's a single greatest thing I ever did taking a sabbatical which I highly recommend I always take 6 weeks 6 weeks about ago and it's funny because there was an article recently all over the world we don't even take we take an average of 5 days a year off in America I didn't think I was burnt out I didn't think I was tired but I knew I wasn't the passion wasn't the same
00:25:23and so something felt wrong I just didn't know what it was and then I took a break I got present for my own life and I got all my energy back. I was at the time I was 46 and I was feeling 50/50 and I feel 30 and I was doing interviews all Ryan Huffington who wrote the scraper brought and I said I'm Ariana you talk about recharging your batteries I go you take a sabbatical you replace your battery so it for me taking that time off completely replace my battery and that's why I'm even here right now with you but I hadn't taken that break
00:26:06during that break as a kite you know what a couple amazing to have that free time also at the end of the year I was ready to work again and I'll microwave energy was back and that's what led me to do a deal where I can Vice chairman of a larger is a that's what led me to want to go bring all the stuff back out again that's what let me to start another Financial Service Company so you're sometimes I think we need to take those brakes and recharge a social media I could definitely tell like when you came back but I didn't know that you're on sabbatical lying but all the sudden it's on your social media and the books coming out and we all said he's back baby back I could just stop working and I'm like I'm going to not do anything I'm not going to text you today so I'm not going to write a book. Can I go do speeches I'm not going to do anything about to be on social media
00:27:04Amazon and that you're not paying for what will happen to the world if I don't update my blog update my YouTube video and send it to weed out and post on Facebook and it will happen the world keeps turning like 10,000 of those and my friends knew I was okay cuz my friends know it's a lot but I will publicly share I'm taking a sabbatical sabbatical have decided what year yet but I think that we should take breaks every 7 years 7 years 7 years then it's not about retirement
00:28:04then you're going to consider retiring it 60 or 65 if you can take a break every 5 to 7 years the energy that you'll get no propels you to make it just always be a good friend of mine he's in the process of taking your sabbatical he start early this year I didn't know until February or April or March that he was taking it and I've had a chance and I'm just now through this whole time frame and I just love hearing it you know it just is really inspired me and I don't know if I'm ready to take a year yet but when I heard an interview with him for 6 weeks or even both actually but you talk about me like you say pay yourself first I think you said put yourself to take it at 6 weeks and I told my wife I'm like what you got to do some calendar make it happen so I'm going to try to cheat a little bit try to be like around spring break so our kids are out of school I got the help out a little
00:29:04think about is why they can't do it really anything like this I can't do it and so you take example like spring break Spring Breaks 2 weeks will next thing you know putting another 4 weeks on top of that it's only 20 days of actual what's 25 work days or it's 25 school days so that means we start think about it actually look at the calendar and their holidays probably another 25 days so when you start to break it out maybe it's not that hard maybe we could do this and if we planned it in your other cheers out course you could do that like you can't tell me that you can't figure out a way to take off six weeks in 2020
00:30:03it's just about planning and making decisions but it's funny cuz I've had a lot of runs take sabbaticals now too and I think a lot of it because they saw it happen to me that's how I actually worked out okay for you I thought I got keys put me in around people that are taking sabbatical so I mean he's think he's knocking on my door and I just got to open up and listen so I was feeling like you was like a miracle I felt so good I sleeping so well I was so blissfully happy and I'm walking my son to school this Jack walking in school and Jack looks mean you're not working you'll never be able to do anything again for the rest your life like you won't be able to write another book or be back on television or make any money we might lose our home I was like are you kidding me every single fear I could have ever had like somehow was boys out of attic the time it was 12 and I was like
00:31:03I was in this perfect whistle state but thanks for bringing up every insecurities I know he said the part about the home I think I threw that in but he's like yeah actually I do worry about that but I think you know what it always doesn't nothing okay also I mean 3 years from now and we're doing another interview and we're reflecting always happened or that for your. What would have to happen in your life both personally and professionally but that's three years to be a success do you have to be so proud of you right now so let's think about that literally just wrote out my next to your game plan on the plane but I'm not going to give it all to you because there's a certain things are very personal to me but I'm working on that I want it on the next 36 months one is
00:32:03Riverfront call a wealth management we have grown it in just 18 months for the fastest growing all right in America we have empowered over 200 or either or financial advisors to come on to our platform Live 360 divisors of 2.5 billion hour management that's fast growing from Ground Zero with no private Equity money and no outside outside Capital my hope is 36 months from now we are up to a thousand divisors which they say that my team is going to financial advisors Juarez to build the best financial planning doesn't they can in their Community with the ability to utilize my seminars to be teachers in their communities of my smart couples and smart women finish rich and we'll have other programs so that's one from a business perspective I hope there will be an issue for 10 billion and 36 months
00:32:58I just became an advisor Clarity money I don't know if you're familiar with Clarity but it's a brand new Financial app going in 2017 it is meant on steroids and I just was blown away by this at the point I basically came knocking on Adam Dells dorms like you. Let me invest in this company is everybody needs to know about Clarity money so go check out Clarity money I also an investor acorns from for Millennials excited about that and then from a pretty smart women finish Rich back out smart couples finish his back out and I have two books on working on smart kids finish rich and the latte factor so if I'm going to go to the 11:36 months I've had I've got two more books out these two are back out in the world we've taken hopefully least another hundred thousand people through the seminars and another
00:33:58another major sabbatical at some point later thanks once again for sharing your wisdom and just inspiring others and for all you do man to do a lot of people and it's really cool and you're doing it alright thanks so much joy in the muddy Uprising movement at Good Financial sense. Com

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