I read Andrew Hallam’s book following my interview with financial theorist and author Bill Bernstein. Bill recommended Andrew’s book “The Millionaire Teacher” and I can’t thank him enough for it. I liked it so much that I’ve gifted about 10 copies to friends and family over the past couple of months.
Interviewing Andrew was a real blast – he is SO full of energy! There are plenty of great personal finance and life ideas in there and I hope you enjoy it as much as I did.
Andrew Hallam the author of the best-selling personal finance book, Millionaire Teacher—The Nine Rules of Wealth You Should Have Learned in School. Andrew teaches Personal Finance at Singapore American School and I also writes a few regular columns for the Canadian Business magazine, weekly for The Globe and Mail , and at least twice a month for Assetbuilder , a U.S. based financial service company. Periodically, he also write for MoneySense magazine, where two of his articles were nominated as national publishing award finalists.
If you didn’t grow up in a wealthy household, Andrew and you probably have plenty in common. His dad was a mechanic, and his mom worked part-time at a retail store, earning slightly more than the minimum wage. As one of four children, his parents expected him to pay for my own college education. He developed an early respect for money because he never had any while growing up. And when he was 19, I met a mechanic who happened to be a millionaire. He learned that it wasn’t always necessary to have a high paying job in order to build wealth. He wanted to become a school teacher and figured that if a mechanic could grow wealthy on a middle class salary, then he could too.
So before his 20th birthday, he started to invest and along the way, he learned some vital financial lessons. And as he started to succeed financially, he grew more baffled at the absence of sound financial lessons in schools. His blog provides links to his published writing and more free-to-access content.
My favorite snippets –
“Even something as simple as choosing to go to Starbucks three times a week versus once every second week can make a difference of hundreds of thousands of dollars over the course of a lifetime. What about other little decisions that get made? For example, taking the five star holiday versus the three star holiday, flying business class versus flying economy class, or taking taxis everyday versus taking the MRT are huge differences. For me the trick is getting the kids to come to these conclusions on their own.”
“Invest regular sums into the market and ideally, for someone your age, you should actually be really happy if the market drops after you start purchasing.”
“One of my biggest mistakes in teaching people about money was learning that not everybody can manage their own money. Then I recognized that a lot of really smart friends of mine with IQ’s way above mine just aren’t emotionally wired to invest. If you can’t do that, then you can hire somebody to invest dispassionately for you with low cost indexes or ETF’s. That’s the secret. Don’t pay them more than 1% per year to do that job.”
“To me, it’s really inspiring knowing that every day I live is one day closer to my ultimate demise. If people don’t recognize that, I don’t think they truly live. You have to recognize that every single day is special.”
Full transcript, as always, on RealLeaders.tv.