When I was 23 years old, the consequences of my financial ignorance became glaringly clear. I entered the prison system with decades of time ahead of me. My poor decisions, largely influenced by a lack of financial education and life planning, had led me there.
After a year in solitary confinement, and exposure to many books, I learned how to think differently. It left me with the realization that I committed the crime of selling cocaine because I wanted to earn money, but I didn’t know how to do it the right way. As a young man, I lacked the character to learn.
I should have developed financial literacy. Had I focused on learning, I may have made better decisions that would have prevented me from breaking the law, causing pain for so many, including my family and me.
From that moment on, I committed to educating myself—not just about economics and finances but how to use that knowledge to build a better future. What I’ve learned and applied over 26 years in prison and beyond has reinforced one fundamental truth for me: financial literacy would be the foundation for stability, security, and success, regardless of anyone’s background or circumstances.
The Role of Financial Literacy in Stability
Making Smarter Financial Decisions
Knowledge is power, especially in managing finances. Without understanding concepts like budgeting, saving, or investing, people often default to emotional or short-term decision-making, leading to financial stress and potential debt traps.
For instance, I used to believe that whatever cash flowed in could be freely allocated to my immediate wants. I didn’t think about an emergency fund, compound interest, or opportunities for sustainable wealth building. That shortsightedness was a mistake that stunted my growth—and one I know others could avoid by educating themselves.
When you understand personal finance, you think about trade-offs and possibilities. Do I buy that car I don’t need, or will I put aside the funds for an appreciating investment that’ll serve me better long-term? Financial literacy empowers you with the ability to think critically before committing to a course of action.
Avoiding Debt Traps
Today, consumer debt in America exceeds $17 trillion. Many people fall into debt because they don’t fully understand the terms, interest rates, or alternatives available to them. Simple but enlightening knowledge—like knowing how credit card interest compounds or avoiding payday loans that charge exorbitant fees—can make all the difference.
Take my experience in prison as an example.
Although the prison system would block me from getting a job that paid money, I understood that I could develop skills. In my book Earning Freedom: Conquering a 45-Year Prison Term, I described how the time I spent developing writing skills led to my earning an income in prison. By studying books on finance, I learned how to deploy those earnings into investments. Those investments muliplied my resources, allowing me to provide financial resources to Carole, get married, and walk out with more than $100,000 in savings. Once I got out, I used those resources to build a portfolio of appreciating assets, in appreciating markets.
I also learned how use debt responsibly, as leverage to grow resources, but not to fund consumer purchases, which go down in value.
Consumer debt doesn’t just limit financial decisions—it creates stress that trickles into every facet of life. When financial literacy acts as your shield, you’re better equipped to avoid compounding problems.
Building Wealth Through Education
The Power of Budgeting
When I was serving my time, I understood that every penny I earned mattered because it could either help me succeed after release or contribute to unnecessary distractions. I created a system to track everything I earned and spent—and as basic as it seemed, that simple budgeting practice instilled discipline.
Budgeting teaches you how to allocate resources intentionally toward your goals.
Saving and Investing
Investments can feel intimidating without knowledge. However, financial literacy demystifies powerful tools like compound interest, stocks, real estate, retirement accounts, and now, even cryptocurrencies for some.
While I was in prison, I learned how to invest in ways that would accelerate my path to success, as i defined it. The earlier you start saving and investing, the more wealth-building potential you’ll unlock.
Retirement Planning
Data reveals that less than half of Americans nearing retirement have adequate savings, leaving many reliant on limited social security benefits. We should all prepare for the retirement we want. The more you learn, the more informed choices you can make to secure your future freedom.
Real-World Strategies to Improve Financial Literacy
- Educate Yourself Through Books and Courses
Some books that helped me lay a strong foundation include all books published by Investors Business Daily. I also read books by Jim Cramer, and A Random Walk down Wall Street. Those who have access to the internet can take self-directed courses that demystify these concepts and provide actionable steps.
- Leverage Technology
Apps like Mint and You Need a Budget help you track spending effectively. Platforms like Robinhood or Vanguard simplify investing. Technology is an accessible ally for learning and applying financial habits.
- Find Mentors and Trusted Advisors
One of the most valuable practices I’ve seen—from prison to personal finance—is seeking guidance from those further ahead in their journey. My mentors challenged my thinking, and they guided me toward sound decision-making principles.
- Focus on Building Reserves First
Start by building safety nets. Having an emergency fund—for three to six months of living expenses—is fundamental. Once that’s set, begin stepping into diversified investments little by little.
- Practice Regular Financial Reflection
Similar to how I journaled and tracked progress toward my educational goals while incarcerated, track your financial progress weekly or monthly. Review where your money is going, what’s working, and how you can adjust.
- Commit to Continuous Learning
Financial markets evolve. Stay informed about new tools (such as blockchain or modern retirement funds) or policy changes. While education is the foundation, continuous learning helps keep your plans optimized for changing landscapes.
Achieving Financial Security and Freedom
For me, literacy helped turn my limited environment—notorious for hopelessness—into fertile ground for personal growth.
Being financially literate reduces stress, builds confidence, and puts you in control of your life. It allows you to secure your independence, reach long-term goals like homeownership, and create a stable legacy for future generations.
If there’s one lesson I want you to take away, it’s this—you hold the power to rewrite your financial story, no matter your starting point.
Self-Directed Question
- How can you start investing in your financial literacy today to secure the stability and freedom you want tomorrow?
Your financial education begins when you choose to begin. Start by picking up a book, downloading an app, or mapping a budget. Don’t delay the first intentional step toward mastery. Building wealth, confidence, and freedom is a matter of dedication—and you’re capable of starting right where you are.
