00:00:00 Thanks for joining me on Episode 5 76 A special rebroadcast of Episode 2 56 with Darryl Lions brought to you because of these uncertain times and Darryl's take on investing and looking for the future. It's fresh and different, and I wanted everyone to have a chance to hear it again. I'm Daryl Lines, author of 18 to 80. I challenge you to invest in yourself, invest in others, develop your influence and impact the world by using your time, your talent and your treasures toe. Live out your calling.
00:00:34 Having the right behavior with your money is key to doing that, and one way to be inspired to do that is to listen to this. The inspired stewardship podcast with my friend Scott made her, and what happens physiologically is many times we get a little dopamine burst and it feels good to make purchases, and we do this on Amazon all the time and it feels good. And then the package comes in and we open the package and that feels good and we get that dopamine burst when we open the package.
00:01:12 Then we got to do it again and again and again, again and the marketing firms. They have got the middle class in a place that's real struggle. Welcome and thank you for joining us on the inspired stewardship podcast. If you truly desire to become the person who God wants you to be, then you must learn to use your time, your talent and your treasures for your true calling in. The inspired Searchie podcast will learn to invest in yourself, invest in others and develop your influence so that you can impact that way.
00:01:52 In today's interview with Darryl Lions, he talks with you about investing in yourself. Darrell talks with you about money, challenges that are unique to the middle class, what behavioral finance is and why that matters and how finances can affect you as a small business owner and lots more. One reason I like to bring you great interviews like the one you're gonna here today is because of the power in learning from others. Another great way to learn from others is through reading books. But if you're like most people today,
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00:03:03 So if you've ever felt like there were money challenges that were unique to the middle class, well, you're right, Darryl. You've worked with thousands of middle class families and their money. My wife and I are one of them. Can you talk about what you've learned about the unique challenges that face the middle class with their money? So the middle class is really there's a real problem here, and I want to make sure I'm clear. The reason I'm focusing on the middle class is not an indictment of social classes because you know it would imply that the maybe a lower class or upper classes it's less than and it's really not the case,
00:03:40 you know, maybe a lower class. Those that just simply socio economic conditions. They just have different needs. Those that mainly rely on government subsidies to maintain their standard of living. There's just different needs, whereas the upper class those maybe with yachts stay, they have different needs. So when I, when I really focus in on the middle class, is because I want to get focus of conversation and then eat the middle class are really challenging and they're particularly challenging today in 1975 our savings rate, we're saving 17% of our income,
00:04:11 and today we're saving 3.5%. And it's not because we have less information than we did in the seventies or eighties or nineties. We have way more information that there's really something else going on there and the middle class, Uh, there we I'm in. I'm there as well are really getting smoked with our money. And it's really becoming a problem with health insurance premiums and health care costs rising and, you know, tax challenges and and then uh, and then just swiping or debit card too much. You know,
00:04:42 there's just so many challenges, and I really want to address the middle class and see if I could help So Darryl in in 18 80. I know your focus is on this, this topic of behavioral finance. So what are some of those most common behavioral money mistakes? Maybe from the middle class. And? And how can we recognize and fix them? Yeah, so there's so many. And behavioral finance is the collision. It's a study that started in again in the seventies. Daniel Kahneman and TRIBE Pinsky.
00:05:15 Really? You know, if you really look at behavioral finance and studied in seven, started in 17 76 with the guy named Adam Smith,
00:05:21 wealthy nations, but it really didn't get a lot of momentum until the seventies, and then just lately it's got a tremendous amount of momentum.
00:05:31 Uh, they're so much study in this space, and the reason being is behavior is the one thing that we need to fix.
00:05:40 I talked about information making change in the middle class lives, and it's not working information. You know,
00:05:48 we have more information, but it's not moving the needle. It's behavior that has to change. And so,
00:05:53 as an example to answer your question directly, we swipe our debit cards so quickly. Now you know when in back when we had to break a 20 at McDonald's.
00:06:05 McDonald's, since that time makes $3.50 more per transaction because people are no longer pausing and thinking about what they're purchasing.
00:06:18 There's no friction to are buying anymore. And so, as a result of all this one click pay on Amazon and all these,
00:06:25 all these even optical purchases are on your watch because there's no friction. Are purchasing is much quicker, much faster.
00:06:31 And there's zero thought, and what happens physiologically is many times we get a little dopamine burst and it feels good to make purchases.
00:06:40 And we do this on Amazon all the time and it feels good. And then the package comes in and we open the package and that feels good.
00:06:47 And we get that dopamine burst when we open the package. And then we got to do it again and again and again,
00:06:52 again. And and the marketing firms they have got the middle class in a place that's real struggle. Fact.
00:06:58 One marketing company I heard of. They'll pump the smell of apple pies in an appliance store, and sales will go up 23% And so these marketing firms,
00:07:08 they know middle class, and they know that we will not pause and there's no friction to are buying and we love it.
00:07:13 And we're addicted to this dopamine burst and for, you know, we wake up and we have zero money to give zero money to say and zero money to invest,
00:07:21 and we wonder where it all went. And it just goes so fast. It's so easy and I'm subject to.
00:07:28 This just is just as much as anybody else I have to think about before I buy something. I have to think about it.
00:07:33 Do I need it? Do I love it? And I have to be very careful, just like everyone else.
00:07:37 We're really it's a real problem for the middle class. That's one behavioral finance issue that we're dealing with.
00:07:44 If you look at the study behavioral finance, there's over 100 of them and they're described in various ways,
00:07:48 but that's just one of many. Some of them are in our investing strategy and some of them are in our purchasing.
00:07:56 Some of them are rooted in the way of our parents raised us and we lean on a heuristics or biases to make decisions based on how we were raised.
00:08:03 And so this study behavioral finance really gets deep. But but AKI, one that your audience should know about is the challenges of marketing being very aggressive towards the middle class and us having no pause and no friction in our purchasing.
00:08:18 That's probably the one that people can start thinking about deeply now, absolutely, and I love that term that the friction not being there.
00:08:28 That's one of those things that I've talked about before on the podcast and I've talked with the coaching clients is,
00:08:34 you know, oftentimes we think of friction is only bad, and we don't think of the fact that sometimes you want to create friction in a system or in the process,
00:08:45 because it slows you down and causes you to think. And then and then there's other times that you want to get rid of friction so that makes things run smoother and run,
00:08:54 makes everything happen without thought, so to speak. But But this idea of no friction around our spending,
00:09:02 you know, I've seen that Ah, I've worked with folks on their budgets and and I'm sure you've seen through all of the clients that you've seen where,
00:09:11 like eating out, seems to be the most common area of over spending. And it's exactly what you were talking about.
00:09:16 There's no friction there. We just swipe the card and grab the meal, and off we go. It's so true.
00:09:21 And Scott is funny because it was you. I think it might have been. God's time flies now,
00:09:26 but I think it was 2016 that first time in our country ever. That dining out exceeded eating at home the first time in our country ever.
00:09:35 And so we, uh, we really Army people. It's funny because I'll have conversations many times because we manage a lot of people's money and they'll say,
00:09:45 You know, I'm really concerned about the markets. There's a lot of problems and there's real concern and and I need a dress those I can't just discount it,
00:09:52 but I go Have you looked at the chili's parking lot lately? I think we're doing okay. Let me just look at Target and chilies.
00:10:00 We're we're doing all right. And I know the thought of concerns about marketer rooted in the future, not in present,
00:10:07 but but The reality is is that, you know we're doing okay is a country and we're spending aton of money at these restaurants,
00:10:13 and it's I say, This is such a corny joke. It's like a dad joke, but it's eating our lunch,
00:10:18 you know, it really is no way in the middle class. We need to get a handle on this one,
00:10:23 and that includes, you know, alcohol purchases. And I always tell people, You know, if you could just drink some water if you're going out to eat,
00:10:30 if you can commit to split, you know that's a that's a strategy to save you some money and some calories.
00:10:36 I've got a family of six, and it is no joke when we eat out. It is expensive every time,
00:10:42 and that's something we we think about it. I actually sit down with my kids and I tell him how much it costs to eat out.
00:10:48 And I tell him, You know, menu items on as a parent, that's, you know that's a that's a useful opportunity.
00:10:54 Don't dine out just for education purposes, but if you are dining out, you have kids. Use it as an opportunity to share with them how things costs and menu items and use that opportunity to teach them so they don't make mistakes.
00:11:06 You made right? Absolutely, Absolutely. So if you're a small business owner or if you ever want to be,
00:11:16 then Darryl has some great advice for you. There are what are some of the most common financial mistakes that small business owners make?
00:11:25 Oh, my goodness. Well, so I'm a business owner, right? Um, and so I have been for 12 years,
00:11:32 and I am I tell you what. It's It's not easy being a business owner, the degree of anxiety and worry that exists.
00:11:40 And, um, I think if I could go back again and do it again, the one thing I would do differently is I wouldn't worry.
00:11:49 I know that. I know that sounds so easy, you know, after you have on established company.
00:11:56 But I think about, um, the idea of worry and how it was rooted in my lack of faith and God and,
00:12:05 you know, me, just trying to put everything on my own shoulders. And so I think if I and even then,
00:12:12 uh what type of decisions did I make? Rooted and worry. So I think if I go back again,
00:12:18 one of things I would do different is just not worry in the midst of the chaos that that really did me no good except caused me to make decisions that are rooted in fear or worry and not logical decisions.
00:12:30 You know, there's wisdom and a CZ we know the Scripture says there's wisdom in the council that advisors so I would have spent more time with advisors,
00:12:37 which is something that I've learned over the years of just leaning on people more and more for advice. One of the one of the things that I try to do as much as possible is is ask a child whenever I'm stuck in a difficult decision.
00:12:51 I ask a child a friend in a sage. And the reason that I would suggest asking three those three people is because if you can articulate a complex topic to a child,
00:13:02 then you have been able to understand it well, thehe bility. To articulate something complex in a simple way usually means you.
00:13:11 You get it, then asking a friend somebody who knows you is important because they know you and then asking a stage.
00:13:18 Somebody who's wise, who's been there before makes logical sense. And so I think, you know, if I were to go back.
00:13:25 Ah, and most business owners. I see this justice Well, um, worrying really is problematic And not leaning into the Council of Advisers and trusting in him through the process is something that I would definitely go back and do differently.
00:13:42 The other thing I would, I would say, that is a problem for business owners is Ah, is the challenge of of hiring,
00:13:51 of getting the right people on the bus as we know Jim Collins talks a lot about. It's a real problem,
00:13:56 you know. What I used to do when I hired somebody is I would I would look at him and I said,
00:14:01 me and they've got some talent. They are good people, but they had problems. They were like they were a train wreck.
00:14:08 And I say, You know what? I could fix this person. If they came in my business,
00:14:13 I can fix him and everything will be okay. I've learned that I can't fix people. They come in with their mess.
00:14:19 They bring their messed of work. And so I've stopped. I've actually literally stopped hiring people because my team does a better job of being an advocate for me.
00:14:28 Then I would for me many times I look at people and I see the best in them and I want to fix him.
00:14:32 And so that's just that that just doesn't work as a person who hires people. So now I don't hire people anymore.
00:14:38 And the last thing I would say is certainly cash flow. Um, of course I'm a finance guy,
00:14:42 so I can't have to mention cash flow for small business owners. And it's really, really important that you pay attention,
00:14:47 cash flow. I look at my bank account every Monday and I don't worry about it, but I make sure it holds on it.
00:14:52 I know that my company's burn right, how much money we burn each month, and I make sure our taxes are paid.
00:14:58 I said it's set money aside every month for taxes, and I make sure that his money those monies get sent to the I.
00:15:03 R. S and so paying attention to cash flow is really critical, totally depending on somebody else. To do everything is is dangerous because I've seen you probably seen this over the years that key people who we trusted made mistakes or or stole or,
00:15:21 um or just richest negligent. But the consequence falls in the hands of the owner who's responsible for paying those taxes.
00:15:30 And so if you have people that are hanging taxes for you, trust but verify, like Ronald Reagan said trust,
00:15:36 but verify them. So those three things I would say is I would say less worry. I would say in your hiring process,
00:15:43 maybe even have somebody else do that for you. If you're not good at it and then make sure you get your taxes pay,
00:15:48 huh? Yeah, I think I actually had this conversation with a friend who is also a small business owner just the other day about,
00:15:56 you know, they said, Well, I really hate you know the accounting. I hate the numbers.
00:16:00 I hate cash flow. I hate all of this stuff. I'm just gonna outsource all of it and then let them do all of it.
00:16:05 And I'm like, you know, even if you outsource it, which is fine, you know, that's a good thing.
00:16:10 You need higher bookkeeper. C P A. whatever. That's all good. But you still have to know your numbers.
00:16:16 You know, it doesn't abdicate you from the responsibility of knowing the flow of money in your business. And if all you do is just give it away and say,
00:16:24 Here you run all of that, you're just the potential of problems is astronomical. Ah, and it was It was interesting to challenge them on that because they really weren't thinking that way.
00:16:37 But it's true. You've seen it. I've seen it. It happens all the time. Does? Yep.
00:16:43 My great. So, Darryl, if you had to share your top two or three resource is that everyone should use to invest in themselves.
00:16:51 What would those be? Yes, I would. So I wrote my first book was small business Big Pressure,
00:16:59 and that was written several years ago. And I always told people that that book was is if the if these three people had a baby together,
00:17:10 that this would be their baby. This book and those three people are Dave Ramsey. His total money makeover in his curriculum,
00:17:18 Financial Peace University, highly recommended Jim Collins really love his stuff from good to great. Um, in his research on small business.
00:17:28 It's you could nerd out on his stuff, but it's really, really good. And then Bill Lovelace,
00:17:32 who is a spiritual mentor mind crisis Life Ministry If those three people got together and wrote a book, it would come out.
00:17:38 Small business, big pressure. Um, but, you know, if you're gonna if I really think all three of them have in and of themselves have very useful content,
00:17:47 of course, Dave Ramsey's Financial Peace University. Most people know about that, but if you haven't been through that with your spouse,
00:17:53 highly recommend it worth time and effort. Jim Collins grabbing one of his books, You're gonna you're gonna learn new nomenclature that business owners today used regularly.
00:18:05 You know, if we talk about, get off the right seat and get on the right seat, you don't know what they're talking about.
00:18:10 It's because you haven't read Jim Collins stuff. And so now business owners were using his language almost that as though it's business language today,
00:18:17 and you need to you need to get up to speed with Jim Collins work and then Bill Loveless Crisis Life Ministries absolutely changed my life.
00:18:24 It's not it's not bill that did it, but it got through Bill, and there's plenty of resource is to either start a Bible study or jump into his Bible studies or his conferences.
00:18:33 He's located in San Antonio, and he's a good man, and he's really changing the lives of a lot of a lot of people in San Antonio,
00:18:40 just kind of under the radar. So you can connect with Darryl by following him on Lincoln as Darrel W.
00:18:47 Lions. And just because he's got a couple of unusual spellings. Darryl is d a R R y l and Lyons is L Y O N s.
00:18:59 And so that's Darrel W. Lions. Or on his Twitter as Pac's financial group with the group is G R P.
00:19:08 So that's packs financial g, R p at Facebook Packs Financial Group, and you can also find Darryl over at his website.
00:19:16 That's kind of the home base, and you can find links to all of this, Of course, in our show,
00:19:19 notes over It inspired stewardship, but his website is pax financial group dot com. Darryl, is there anything that you'd like to add?
00:19:28 Yeah. So I set up a link for your listeners packs financial group dot com slash inspired. And in that link,
00:19:38 there's, uh I have a video that will inform you of whether or not Social Security will be there.
00:19:44 Um, I have a 40 point pivot checklist as well, and so you can find that there. And we should also,
00:19:50 um, have a link. If we don't have it up, let me know. But we should have it out by the time you get on there,
00:19:56 because my next book, 18 to 80 will be out, and you should be able to grab it on there.
00:20:02 But if not, you'll be able to get it on Amazon. Just searchin 18 to a t t 0 18 to 80.
00:20:09 Um, and that's a helpful resource for you as well. Thanks so much for listening to the inspired stewardship Podcast.
00:20:24 As a subscriber and listener, we challenge you to not just sit back and passively listen, but act on what you've heard and find a way toe live your calling.
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00:21:05 your talent and your treasures develop your influence and impact world.