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I WAS RAISED IN a small town in Iowa. My mother died of breast cancer when I was two years old. My father struggled to cope with her death, but he paid the bills and made sure my basic needs were met. Indeed, when I look back, my upbringing seems pretty normal.
I survived high school, but had no clue what I was going to do with my life. One day, my father decided to give me a nudge. He said, “You’re going to have to find another place to live before the year is out.” My jaw dropped and panic set in. Within a month, I signed up for the U.S. Army.
It was my chance to fly, but it was also my chance to stumble and quite possibly fall on my face. I was scared, plain and simple. I was entering a world where money was earned, spent and sometimes saved by people who looked a lot like me. Except there was a problem: I knew nothing about money and how to manage it.
My journey was just getting started, but I was winging it. Because of my lack of financial education, I made many mistakes. My intentions were good, but the results were bad. That continued for many years.
After completing my army training at Fort McClellan, Alabama, I was sent to my first duty station, serving as a military policeman. This was my first opportunity to handle money. I spent plenty, saved what was left, and basically just did what most of my buddies were doing, so it all felt very normal. The money decisions I was making were being influenced by marketing, comparison, materialism and some good old-fashioned ignorance.
Then one day, a supervisor told me I should consider investing my money. I agreed and off we went to a “free” dinner. She introduced me to a sharp-looking fellow, and he said he would “help” me. Within no time, I was an investor in a high-cost mutual fund. Then, I was ushered over to another gentleman. This insurance agent quickly signed me up for a whole-life policy.
By spring 1986, my paycheck had gotten bigger, and that meant it was time to buy a better car. That’s the American way, right? As I stepped onto the new car lot, the salesman flew over to greet me. He asked me what I could afford on a monthly basis. Soon, I was the owner of a brand-new car.
The Army decided to send me to Germany in 1989. What does a young man do when he has free time on his hands? I could have spent my time at the local bars, chasing pretty girls and enjoying German beer, but I chose a different option. I chose to read. This was a decision that truly changed my life.
One day, one of my buddies stopped me and asked if I was investing in the stock market. I stuck my chest out and said “yes.” He asked if I could teach him how to do this investing “stuff.” I agreed to his request. The evening came, and my friend was full of questions. Sadly, I had no answers. I was still financially dumb.
Getting educated. The next day, I headed to the local bookstore. What was I looking for? I didn’t know, but I had to start somewhere. I found a book, Wealth Without Risk by Charles Givens. I picked it up, ruffled through it, said “what the hell” and paid the lady at the counter $20. This was the beginning that would change my life.
I took that book home and read it. What did I learn? Givens, it turns out, would be the target of dozens of lawsuits. Still, his book taught me that I could be my own financial advisor. Yes, little old me, the kid from Iowa without much of an education. If my financial life was to improve, then I had to improve and that meant educating myself.
After finishing that book, I picked up another one, and then another and then another. Slowly, I was starting to connect the dots. After a few months, it was time to take action. I began by putting together a net worth statement.
I’d never heard of a net worth statement before I started reading about finance, but I now knew I needed one. What did I find out when I completed it? I was 25 years old and broke. Financial illiteracy got me here and, if I was ever going to get out of this situation, I had to change my ways. I did.
My next big decision dealt with my broker, who had sold me the expensive mutual fund. I walked into his office and politely told him to redeem my shares in the fund that made him more money than me. The life insurance agent was next. I told him to cancel the whole-life policy that I didn’t need.
After that was debt. I cut out unnecessary spending, and paid off my car loan and credit card debt. This was a big moment in my life, not just my finances. My mindset was changing quickly. As best I could, I tried to do what was smart. I ramped up my savings rate and focused on stock index funds. There were times I was saving more than 30% of my paycheck and in some years 50%.
Financial freedom. Fast forward to age 45. That was the year I left one world and entered another. I had reached financial freedom, thanks to years of diligent saving coupled with the pension I earned after 26 years in the Army. Financial literacy, followed by action, took me to a place where I no longer needed to work. This became a turning point in my life.
I’m not sure I even understood what the term financial freedom meant. I just kind of realized that I could let go of the urge to make more money and begin doing other things with my time. This is when I started focusing more on something bigger.
I read Your Money or Your Life by Joe Dominguez and Vicki Robin. I started to realize there was more to this issue than just money and spreadsheets. The book taught me about the importance of enough and the fulfillment curve, and how it all worked. It also taught me the importance of giving.
About five years prior, I had found $100 on the ground and, instead of banking it as I usually did, I gave it to a woman who had her house broken into. The thief had stolen Christmas presents from under her tree. It was sad, so I dropped by and gave her the $100. She cried and so did I. That changed me.
That moment came rushing back to me as I read Your Money or Your Life. I had found the missing piece of this journey. It was in giving back that I found my soul, and the meaning and purpose in my life. It was time to pay it forward.
A few years later, I would learn about Joseph Campbell and “the hero’s journey.” I found it fascinating how we could lead a well-lived life by following our bliss. I committed to following my bliss as I circled back to help others, so they too could be the hero of their own journey.
Financial happiness. I went back to school and picked up a bachelor’s degree from the University of Northern Iowa, focusing on understanding people and their emotions around this thing called money. While I was there, I decided to start helping young people with their finances.
I wrote four books, attempting to help people better understand the connection between their finances and a purpose-driven life. These books were my way of helping others see a world that I didn’t know existed prior to my true beginning. In the process, I became “the crazy man in the pink wig.”
Where did that come from? One day, I put on my three-year-old great niece’s pink wig to make her laugh. It worked. Her mom took my picture and I made it my Facebook profile page. Soon, people were calling me that crazy guy in the pink wig. The proverbial light bulb went on: It was my future identity.
I had been leading a “crazy” life for a long time—rejecting materialism, and the debt and stress that goes with it, saving a good chunk of my money, investing in index funds and basically charting my own course. To many people, I appeared crazy. To me, I was the least crazy person in the room.
I now had a visual image that folks couldn’t forget. I encourage people to be as crazy as I am. To wear the pink wig—metaphorically or literally—is to be willing to be your own person, think for yourself and, ultimately, live the life you were meant to live instead of one that others have selected for you.
All the while, I began consuming books at an accelerated rate. I starting learning from the right teachers: Warren Buffett, John Bogle, Burton Malkiel, Charles Ellis, William Bernstein, Jane Bryant Quinn, Rick Ferri, David Swensen, Daniel Solin and a guy by the name of Jonathan Clements.
Through some self-reflection, I realized I had learned something that went far beyond finances. I learned about how to find meaning in my life, and that involved giving. I designed my future life around helping others with the talents I’d acquired, and that was made possible by the financial freedom I’d achieved.
I’m now approaching 60 and have spent the past 14 years helping individuals and organizations improve their financial situation. I do it for free because I can and because it feels so very good to help others. My next venture: I’ve decided to start The Giving Solution, so I can further spread this message of helping others.
The Giving Solution is an opportunity to help folks who have little to no money, those who are relegated to the end of the line when receiving financial help. We’ll have a list of “givers,” including dieticians, doctors, lawyers, mechanics, disability experts, therapists, dentists, teachers and clergy, who are ready and willing to help others for free. The organization officially kicks off in January 2024. Crazy? I don’t think so. TheGivingSolution.org website is currently being built, so stay tuned.
Mike Finley is the author of four books: Financial Happine$$, What Color Is the Sky, Graduation! and Now What? You can learn more at CrazyManPinkWig.com. Mike provides free financial classes, presentations and one-on-one counseling to individuals and organizations throughout the world. Follow him on Twitter @CrazyManPinkWig.
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Fascinating journey, Mike. Enjoyed the article.
Congrats on starting your charity. I donate monthly to an organization called Remote Area Medical that brings free medical and dental care to people in deprived communities who can’t afford it themselves. Consider me a potential donor.
Like the wig. You’ve got sort of a Lee Remick thing going on there, except for the pink.
You might want to add handymen, plumbers, drivers to the list as well as caregivers, a lot of seniors live in ramshackle housing, when things break, some don’t have money to fix them or suggestions for neighbors to drop in on people close to them to help seniors who can’t afford to pay for cleaning, errands, etc, drivers to take seniors to Doctor’s appointments. These are just suggestions to consider. I know Medicaid might help with some of this. When I was a teenager growing up in a small country in Europe, I helped deliver “Meals on Wheels”, we would just drop off the meals & move onto the next place, I had a driver waiting in the car, but a lot of people were stuck in bed & it seems unable to get up & with no one to help them, also their small apartments or homes often smelled from a lack of fresh air coming in, they could definitely have used a helping hand & it seemed that the majority had mobility issues keeping them in bed.
Margaret, I drive for Meals on Wheels here in Washington state. We must hand the meal directly to the client, and if they can’t make it to the door, the alert goes out to family and local agencies.
That is a great idea. Having to cope with the maintenance on my house was one factor in my decision to move to a CCRC.
What a great idea I’d never thought of, handymen and plumbers, as a way to help seniors and others.
This is such a great story/journey, Mike, you figured it all out yourself along the journey of life. It is true, there is much more joy & satisfaction in giving than receiving. I can’t wait to hear all about the launch of your new project.
Wonderful journey
What an interesting journey and thanks for the book list. I intend to check them out at the library to see what else I can learn. As a former social worker, who is now a retired judge I too have seen many individuals who could use a helping hand due to circumstances out of their control or due to lack of education. Your new project sounds interesting and I will keep an eye out for your upcoming website. And thanks again Jonathan for this wonderful newsletter. Their is nothing else like it and I am always learning something new.
Love the wig! Best of luck with your new venture, it sounds fantastic.
It’s a pity that financial literacy isn’t a required class in high school, but getting the content right might be a problem.
Ah, Charlies GIvens. I went to one of his seminars. In fact, I went to a lot of financial seminars over the years. My reading path is almost identical to yours, with a few extras. Some written by people who went to jail (I prefer to get my financial advice from people who have not been to jail). I too found Jonathan’s column in the WSJ and it helped me a lot. Bottom line: It’s just darn hard to flip the switch and do everything right the first time. It takes some “experience” to figure out what is best and what is best for you. Even today I get regular warnings from my online financial consolidator that I have too much invested in a single stock. It’s an intentional and well thought out decision on my part but it might not be right for everyone.
This is so awesome. I loved your story, the wig is fantastic, and I can’t wait to hear more about your new project. Thanks so much for sharing this.
It is sad that you lost your mother at an early age. A friend of mine lost his wife to cancer when their three children were very young. Like you, they have done extremely well in life.
Giving back to help others is a good feeling. I do the same for neighbors and family. I also like to help with Habit For Humanity house builds.
Thanks for sharing your story on HD!
Correct me if I’m wrong, but this appears to be Mike’s first HD article. Well written and a good message.
I also found Mike on youtube.com.
Wait, let me guess. The company that sold you the front end loaded mutual fund and whole life policy was called, USPA & IRA?
At last someone else who spent time at Fort McClellan, Alabama, 1968-69. I hear it’s a housing project these days.
Richard, Your Humble Dollar article from a few weeks ago showed up on my Google news feed two days ago. First, I recognized the name, then the article source, and then I was glad the word was being put out this way. Hopefully we get a lot of new readers from this.
Thanks. Was the article the one on spending by chance?