Akua Carmichael, vice-president of estate planning and services at Estate Stewards Inc., says she hasn't always had a positive attitude toward money. "For many years, I was afraid of money, even though I wanted more of it," she says.Supplied
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In the Behind the Advice series, Globe Advisor asks advisors about their relationship with money from a young age, lessons learned over the years, and how their experiences influence the advice they give clients.
Akua Carmichael, vice-president of estate planning and services at Estate Stewards Inc. in Toronto, talks about her negative association with money growing up, and how watching her parents start and run a business inspired her money and career decisions:
Describe your first money lesson.
I didn’t have a positive association with money growing up, but I understood the importance of it. When I was 18 months old, my parents moved our family to Toronto from Ghana, West Africa. They worked in factories for the first 10 years of my life. I saw them work very hard to make money to pay the bills. I saw money as something I needed to survive, and if I didn’t have it, I wouldn’t have a good life. I also saw that you had to work hard to get money – it didn’t come easily. I grew up thinking it would be a painful experience to earn money, but if you didn’t do it, life would be horrible.
That attitude changed in my teens when my parents left their jobs to open a West Indian and African food store to serve the community in Toronto. They were the first in our community to become entrepreneurs. After a few years, they opened a hair care and beauty products store for the community.
I got the entrepreneurial gene from my parents. They showed me that you can chart your destiny by being creative and that by understanding the community’s needs, you can be successful.
How did your upbringing influence your career path?
My parents were very successful in their business but didn’t have good financial advice. I don’t recall them having a financial or insurance advisor. My dad had an accountant, but that was to help file our taxes. They were just not aware of the benefits of getting that advice. They could have done more with what they had if they had good advisors. It wasn’t something that people talked about a lot in our community. There was a major gap. I think that’s changing, thankfully. The lessons I’ve learned about money, saving, the importance of advisors and getting good financial advice came much later in life for me. I wish I could go back in time and give my parents the services I offer now to individuals and business owners.
What’s your biggest money mistake, and what have you learned from it?
I wasn’t a great saver when I was younger. I had a few part-time jobs growing up, starting with a newspaper route and later working at A&W, and I would spend the money on stuff I wanted immediately – like the latest fashions. It wasn’t until I was in my 30s, got married and was raising children that I understood the importance of saving and having money for unexpected circumstances that would come up in life. I wish I had started saving money a lot sooner.
What’s the hardest piece of money advice for you to follow personally?
Developing a positive attitude toward money has been a work in progress. For many years, I was afraid of money, even though I wanted more of it. The irony is that it’s difficult to manage, increase or grow something that you’re afraid of. I have a much healthier outlook and relationship with money today than in the past. I think a person’s mindset toward money greatly impacts how they handle it and how well they can create wealth for themselves.
What are you best at when it comes to your personal finances?
I’m good at saving money and allocating it to the right buckets, including investing, spending on family and friends, and donating to my church and charities.
What do you worry about when it comes to money?
I used to be afraid of running out of money, but having a solid financial plan for now and the future quells that fear. One thing I consistently question is whether I’m being responsible with my money and allocating it to the right people and causes at the right time, in the right ways. I’m always checking in with myself to make sure I’m being intentional and impactful with the opportunities and resources I’ve been given.
What advice do you have for people wanting to enter your business?
I think it’s important to have good mentors already in the business. By talking to and shadowing them, you can get a front-row seat to see what is involved and what it takes to succeed. It can help you understand if there’s alignment with your values and if it’s something you really want to do.
This interview has been edited and condensed.
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