Financial Freedom Starts With Simple Steps - Episode 107
In today's episode, I talk with Danny Barnes, a finance enthusiast blending his military experience with a passion for personal finance. Danny shares how a military finance class sparked his interest in investing and financial literacy. He talks about his debt payoff journey, creating a system for his family’s finances, and teaching his kids about money. Learn how Danny turned his life lessons into a platform to inspire others on their journey to financial freedom.
About our guest
Danny Barnes is a finance enthusiast and aspiring financial advisor, passionate about helping individuals improve their financial literacy. With a background in cybersecurity, Danny is blending this skill with personal finance to educate others in protecting their finances from fraud. Currently pursuing a master's degree in Finance, he is working on establishing a niche in the personal finance space.
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TRANSCRIPT:
Naseema: [00:00:00] Danny Barnes is a finance enthusiast and aspiring financial advisor, passionate about helping individuals improve their financial literacy. With a background in cybersecurity, Danny is blending this skill with personal finance to educate others in protecting their finances from fraud. Currently pursuing a master's degree in finance. He is working on establishing his niche in the personal finance space.
What's up, my financially intentional people. It is always an honor to be joined by another personal finance enthusiast. And today we have Danny Barnes joining us. What's up, Danny?
Danny Barnes: What's going on? How y'all doing today?
Naseema: Danny, let's talk about your journey. Like how did you get into the personal finance space?
Danny Barnes: Oh I'm in the military which I've been doing for 13 years and, you always hear the stories about people who are trying to get out of their first contract. So that was me. But they make everybody who's about to transition go through it's called soldier for life. It's a transition [00:01:00] program.
So while in there, we had a personal finance class and when the instructor, he was talking about personal finances He had bought like stock and Tesla and Google in the beginning. And, at that time I was just putting money in my regular old savings account. So I thought I was doing something with that.
So after that class, I was hooked. I started researching everything I could about personal finance. I started with Dave Ramsey's book. And then I led up to Ramit's book. I will teach you to be rich. That kind of pushed me over the edge to keep going with this.
Naseema: That's cool. I always wonder what are the certifications for those people? Are they civilians? Or are they also in the military? Like, how do they find people to teach those classes?
Danny Barnes: Oh, I think it's a mix of both. There's with the military, they want to go with the cheapest price, of course. They're not gonna pay top dollar for anything. So he was in the military before he did Air Force, so he retired and he wanted to work with soldiers afterwards. So he ended up doing that.
Naseema: That's interesting, because I feel [00:02:00] like there's no standardized advice when it comes to that. I've heard stories of people going through that training and then being led like the life insurance route and like all different kind of things. Yeah, I'm always interested to hear, because I'm just like, how do they vet these people?
Do they just, okay, we have somebody teaching personal finance check and then just leave it like that or do you know the vetting process?
Danny Barnes: I'll be honest with you. I don't know how they like pick somebody and be like, you're going to teach soldiers. He didn't mention any credentials, like the certified financial plan or anything like that. He seems like just me, he did it on his own. And I guess they believed him and let him teach the class.
Naseema: All right, cool. So you went from being in the military transition and out turning your savings account into investing and like, where has that gotten you like, where are you at at this point? On your financial journey?
Danny Barnes: So we're still paying off debt. Of course, I can't, we can't live the Dave Ramsey lifestyle. I would like to live because of my wife. Oh, but
Naseema: Sounds like you're throwing your wife under [00:03:00] the bus here.
Danny Barnes: she likes to spend money, and I'm different. But yeah, so we're still paying off debt, but we're definitely better than we were.
We have our high yield savings account that where we keep our sinking funds and our emergency funds. We have the investing set up for our kids. We manage our bills with our credit cards to get the, rewards every month and stuff like that. So we have a system, just getting that debt gone outside of the house and like student loans is where we're at right now.
Naseema: was your wife in the military as well?
Danny Barnes: No, no, she's always been a civilian.
Naseema: Okay, cool. So how do you guys handle money conversations? It sounds like you guys have different kind of money philosophies.
Danny Barnes: Yeah. So it's rough. So we do the budget. You need a budget, which is the 0 base budgeting app to handle our income that comes in. So we'll do that probably each time we get paid and we'll sit down and she'll be like, Hey, can you take a look at this? What do you think? And then we'll make adjustments from there.
And that's been working for us lately.
Naseema: [00:04:00] Yeah, you mentioned investing for your kids. When did you set up their accounts and what accounts do they have?
Danny Barnes: I did it probably after they were born. I didn't know at the time that you could do it before they were born. But, they have 529s with Fidelity. And we use green light to teach them about money. Where they can get their own debit cards. And yeah. Invest on that app as well. But for the IRAs, I saw your video, have more.
Naseema: Hey,
Danny Barnes: I didn't know about that. I was just going to have my kids model like my clothing brand I'm going to release and I'll pay them that way. But now I saw that I'm going to try to open them up. I already do have more. So shout out to that.
Naseema: thank you. Thank you. I'll let them know. Yeah, that's dope. You could do it that way as well. Because you are already formed like a LLC. Just and for people who don't know what half more is the app that allows you to turn your kids chores into contributions to their Roth IRA.
They handle all of the legal backside of it. So you don't have to worry about for your taxes. They'll [00:05:00] prepare something for your taxes at the end of the year. But so it's primarily for people without a business. I don't necessarily have to use them because I have my LLC and then my tax preparer does it on the backside, but a lot of people don't pay for tax preparation like that.
If they don't have a business. And so half more takes just the normal everyday person without a business without a lot of money and for 15 dollars a month manages, the chore payments and turns them into Roth IRA contribution, which I think is incredible because Anything that increases access levels of playing fields for people to invest.
I love, because I know that there's a lot of gatekeeping in the finance space and the personal finance space way less now, but there definitely is still a huge knowledge gap and people don't know what's out there. So that's my goal is try to disseminate that information. It sounds like you're doing the same as well.
So talk to us about your [00:06:00] platform and what you've been doing.
Danny Barnes: So I started a blog probably a couple months ago call wealth generation agency. I'll just posts different things up there about, things I learn every day. One post I have coming up next year is about those free phone, cell phone deals. You see when you, you're about to get a cell phone, are they really free? How to budget debt, credit card scores, things like that. Just a basic personal finance topics that, anybody can digest and also, post that on my Instagram and my blue sky, I'll post like financial tips quick little financial tips, like what is a stock what's a dividend and different things like that.
So people can learn something new every day.
Naseema: What inspired you to create your platform?
Danny Barnes: Was reading Ramit's journal after I had finished his book, and I ended up writing my own journal after that. And from there, I thought it was just going to be a book, but I realized that, people ask me for personal finance advice. I'll text my family and friends randomly and give them advice.
So I was like, maybe it's a sign that this is something I should move forward with. And give out that information. [00:07:00] So it's not just stuck with me or my family.
Naseema: Yeah, that's similar to how I started my platform. I was like, I want to share this information. People ask me this information all the time and I don't like repeating myself. I was like, this stuff out there, are you guys going to follow? Are you going to pay attention? Use this information?
And my friends were like, yes, and literally, that's the reason why I have my platform. It was really just supposed to be for like, my group of good girlfriends and. It just grew organically. Yeah, I love that you're doing that because we need more voices like yours in this space. And I was always taught each one teach one, and it sounds like you just want to spread the good word because you've been in a position to go on this journey and be on a path to financial freedom.
I love that you're doing that.
Danny Barnes: Thank you. Thank you. Appreciate you to,
Naseema: Thank you. In that transition from leaving the military, what are some [00:08:00] goals that you've achieved along the way? Some milestones as far as debt payoff and investing.
Danny Barnes: So right now we're, I think we only have the cars left to pay off. We paid off, our credit card, debt loans and things like that. So we're just paying off the cars and try not to get new cars.
Naseema: It was so
tempting.
Danny Barnes: yeah, try not to get the new car. They got nice cars out here. And then outside of that we've been in the military.
We had like houses everywhere we went. So we've been trying to get more rental property from, starting next year to try to get into the rental, the real estate space more.
Naseema: But you had houses did you keep those houses? Did you buy the houses or were they military housing? Like, how did that work?
Danny Barnes: Yeah, we bought them. We have two in Texas and then we have one here that we're gonna rent out once we probably move in a couple of years. We're gonna rent this one out and then we're gonna probably get a duplex or something or a townhouse or something like that. And that would probably be our last property to move into the real estate space.
Naseema: Actually though, some horror stories, around people in the military, buying houses where they're stationed and then having to [00:09:00] move and then not either being underwater on that house, not being able to sell it, refinance it. What has been your experience?
Danny Barnes: so we haven't had anything like that, but I say the worst experience was, our house in Texas, we had a renter, I guess she had a friend or something come over and they ended up shooting through our back window or something like that. And we had a property manager, but that was the craziest thing.
And then I'd say when we tried to sell that, we tried to rent the house out to somebody else after that. We had to deal with her in court dealing with that issue because she felt like it was our fault and stuff like that. But outside of
Naseema: it was your fault. Somebody shot through the window. Okay,
Danny Barnes: so outside of that other stories we heard from just other military members is that I guess somebody's house, they messed up the foundation.
It's just the renters really messing up the house itself. Not necessarily like the finances behind it. So my thing that is just to make sure you have, a good property manager. If you can't really go. [00:10:00] To check on it yourself.
Naseema: how do you mess up a foundation of a house? That's insane.
Danny Barnes: Yeah, so she sold that one. But yeah, that was her last. That was her last thing with rentals, but that's yeah.
Naseema: That is dealing with tenants is 1 of those things that. A lot of people like try to avoid they don't like that part of the rental
Danny Barnes: Mm hmm.
Naseema: business or real estate. So I know there's a lot of people that share like really good betting processes to avoid some of those things. And having a good property manager is always a good idea.
But also there's other ways to get into real estate outside of being a property owner. A lot of people are just like, I'll just invest in or, I had a episode with someone. Who has an app where you can just buy a fraction of the property and you don't. Necessarily have to manage the tenants like they do that.
It's almost you're just buying a fractional share of a stock, but it's just guaranteed like a house because, it has [00:11:00] the secured property to it. And the rates are similar too. So I like those different kinds of alternative real estate avenues too. Cause I know everybody's not Ooh, real estate.
And also understanding that. I think it's interesting that you turned your primary residences into rentals, because a lot of times when we buy homes and we think we're investing in our primary residence, we don't buy it actually as an investment. So you don't even look at it as an investment.
You look at it as, oh, my God this house is so nice. I could live here forever. But yeah. Changing the mindset of actually buying property from the perspective of it being an investment being something you can actually make money from is totally different and something that a lot of people aren't prepared for, especially if they're going to be in that house, for a certain period of time.
Like, when you were buying your properties, were you thinking that you would turn them into rentals? Or were you just looking at them? Because that's where you were stationed.
Danny Barnes: I've been moving a lot when I was in the [00:12:00] military. Each location I went, it felt like it was temporary to me anyway. They do say not to buy a house if you're not going to live in there for like X amount of years, but my wife actually brought up the idea that, if we're on a military basis, somebody's always looking for somewhere to stay, and there, chances are, they're not trying to buy a house, they want to rent.
Using that, after that, each place we went, we got stationed, we got a house, lived there for a little bit, and then rented it out.
Naseema: All right. You sound like your wife is smart about that.
Danny Barnes: She does alright, she does alright. 9,
Naseema: I wanna circle back to your kids. How old are your kids?
Danny Barnes: 6, and 4.
Naseema: Okay, you have three. Awesome. Oh, they're said you have their five 20 nines. You have their green light account, and then you're going to set up an IRA for them. What, I never knew that you can invest in a GreenLine account.
Danny Barnes: Yes it has a little section. It's like a growth like an age based growth investment.
Uh, yeah, that's all it is.
Naseema: Oh, it's just like one account that you put
Danny Barnes: [00:13:00] Yeah, it's not like you picked
Naseema: Oh, okay. Okay. It's not like individuals. That's not bad. That's not a bad investment. Do you know if they charge fees on their investment accounts?
Danny Barnes: No, I know they have a monthly fee in general for the
Naseema: Okay,
Danny Barnes: ten dollars a month for all of that investing in the debit card and everything.
Naseema: so it's similar to acorns. Basically the fees that you pay are just those upfront fees. It's pretty transparent and it doesn't matter how much you have in the account. That's what your fees are. That's pretty cool. That's interesting. That's something to look into. So as far as like your like personal development, I know you're going to school.
What inspired you to go into the finance space? Like educationally
Danny Barnes: so I was reading the fire for dummies book by Jackie
Naseema: Hey, that's, that's my home girl. I'm in that book,
Danny Barnes: what page?
Naseema: It's like in the last, like people to follow.
You'll see me.
Danny Barnes: book. I gotta get to that part,
But yeah. Reading her book and then popcorn finance [00:14:00] Chris I saw that they went into the finance space and anything I get into, I gotta be like. Engulfed in it I can't just be like one toe in. So just from that and then seeing how they did it, that kind of reassured me.
And I went into pursuing it.
Naseema: you're actually getting a finance degree, right? I know Jackie she did her certifications.
Danny Barnes: Yeah. She got CFE.
Naseema: yeah, so what makes you want to get it like a degree in finance though.
Danny Barnes: and I still have like my GI bill for my the military my wife used part of it. So I was like I gotta go to school for something. So I figured, if I'm trying to do the personal finance thing, I should use it for that.
Naseema: when you transition out of the military, what did you do as a career or what do you do?
Danny Barnes: I was I still do cyber security
Naseema: Okay. Okay. That's cool. Like for yourself or you work for a company?
Danny Barnes: for a company. So it's like a contract to the base out here.
Naseema: Okay. So paramilitary
Danny Barnes: one of those. Yeah,
Naseema: [00:15:00] Still,
Danny Barnes: the money's there.
Naseema: Hey, cybersecurity is where it's at.
Danny Barnes: definitely.
Naseema: Oh my God. We have A lot of companies cybersecurity companies out here, and I know they're always slammed because there's always a security threat. Working in hospitals we get threats all the freaking time. It's scary. Yeah, it's the wild, wild west. So what are your plans? What are you going to do with your masters in finance?
And are you going to keep on doing cyber security? Are you going to use the side hustle? Are you helping to grow your platform? What are you trying to do?
Danny Barnes: I'm definitely trying to use it to grow my platform. I really want to get out here and do like volunteer work to do like workshops for personal finance for people so they can get the knowledge and the community and stuff like that. Like the guy who, got me on his path when I was transitioning.
I want to do something like that.
Naseema: I was going to ask you, have you looked at doing that for the military? [00:16:00] Okay.
Danny Barnes: things that the exemptions they can get because, the only thing we really get taxed on is, they get taxed on is the base pay. So I just want to, have a better understanding how I can make all their exemptions work for them in the best way.
Naseema: Okay. I think that that would be a good start. I know a lot of people that Have it's not CFP, but it's another designation. They do a lot of speaking on military bases. I'm not sure if that's like falls under the same umbrella, but I know a lot of people who get this. I don't know why I'm drawing a blank on the certification because I have the information in front of me.
I think it's that. A, uh.
Danny Barnes: Financial counselor one, AFC.
Naseema: Yeah, yeah, yeah, the AFC 1, I think they do get a lot of contracts with the military, but I'm not sure if that's the same thing because I'm totally a civilian. I have no idea
Danny Barnes: Nah.
Naseema: anything military.
Danny Barnes: Nah, that's okay. Yeah.
Naseema: All right, so my. Where [00:17:00] ultimately do you see yourself on this financial journey? What are you working towards? As far as your own financial freedom and then what do you hope to do with your platform?
Danny Barnes: I definitely want to stop working eventually and my time, how I want to use it. I think that's the ultimate goal for a lot of people, just to have that time back. As far as my platform, I look up to, a lot of you. You guys on, social media, you Jamila, Chris Jackie, and things like that.
So I just want to have that reach to where, I'm putting that knowledge out to the world and they're getting it and they're, implemented in their daily lives.
Naseema: I love that. I love that. And these are all my friends and I tell people, When they're like, oh, how do I get started build your network? I would say like you don't have to blow up your social media accounts but start a whole new social media account where you just follow the people that you aspire to financially and let that be your network because I did that and those people all became my friends like anyone in the personal finance space that I really looked up [00:18:00] to I I became like friends in real life with those people.
And so then that normalizes to me, Oh yeah, retiring in your forties, paying off, a whole bunch of debt, being able to be an entrepreneur full time and transition into full time personal finance work. So I love that. That's your aspirations. And, I'm really proud of what you're doing. I think that is so great.
It's always good to, meet new people in this space, because I don't think that. Especially for us, there could be enough of us. Also as far as stopping work, I think that, I don't think that you'll stop working. I think that you'll just not have to depend on your job as your source of income, right?
Because you'll have grown your investment. So that's most people's goals is to be able to do whatever they want because they've grown their investments so that They don't have to trade time for money. And the thing is that I feel like a lot of those people actually work harder later on, but it doesn't [00:19:00] seem like work because they're doing what they really, really love doing.
Yeah, so that is definitely an aspiration for me and a lot of people for me, I just, want to be able to. Enjoy my kids while they're still kids.
Danny Barnes: Yeah.
Naseema: that's not normal. they expect people to work, work, work, work, work, and then have time, but then your kids are grown.
You miss out on those crucial years, all that stuff. I love, your goals and your aspirations and they're aligned with what a lot of people out here are doing. So I think that's dope.
you. know,
Danny Barnes: you. Yeah.
Naseema: so how can people actually let's talk a little bit about your journal. Like, how is it structured and how can people benefit from it?
Danny Barnes: Yeah, so my my journal is called Why Not Us. It's pretty much for, the everyday person. So it's structured from the basics starting at budgeting, all the way up to, debt management. And eventually like a calendar where you can keep up, track your goals each month.
I got personal stories in [00:20:00] there about how, I struggled, from when I was a teenager before I joined the military, to my adulthood right now. I want it to be a journal where you can create your own journey. You don't have to like, okay, let me try to be like Danny Barnes and do what he did.
It's your own story. You put everything in there that, fits your situation. It's And then hopefully from that, you can build your own financial freedom. That's in your name, not mine.
Naseema: I love that you made it a journal because a lot of times, people get stuck, right? They get inspired by the stories that are in books, but then they don't take action. So I love that there's a journal there. So person has accountability. They have, to do's. So I love the idea of that journal, and I'm going to definitely link the journal up in the show notes.
Is your blog and your newsletter the same? Yeah.
Danny Barnes: Yeah. Yeah. All
Naseema: So if you subscribe to your newsletter, your sub stack, they're subscribing to like your blog. All right. So share all that information again, where people can get in contact with you.
Danny Barnes: You can [00:21:00] find me on Instagram at wealth sleuth, S L E U T H blue skies at wealth sleuth as well. And you can also find me on LinkedIn, Danny Barnes, and my blog is wealth generation agency on substack. com.
Naseema: Cool. What is blue sky?
Danny Barnes: It's like the Twitter replacement.
Naseema: Oh, see, I don't know. Nothing. Okay. Okay, this is my first time ever hearing about that. So people who don't like the X platform, they could go over to
blue
sky.
Danny Barnes: Sky.
Naseema: Awesome. Awesome. Danny, this has been so nice to talk to you. Always, always, always good to meet another person in this space and similar aspirations.
And also, with the kids and doing the same thing. I appreciate you. I'll put all the links in the show notes. So you guys make sure you guys are following him and make sure you guys get that journal. Cause I really think that it'll. inspire you and encourage you and give you actionable steps [00:22:00] along your journey.
So thank you, Danny.
Danny Barnes: Thank you for having me.
Naseema: Of course.
Hey there I’m Naseema
My dream is for everyone to know that financial independence is attainable with a little intentionality. Learn how I can help you finally break the cycle of living paycheck to paycheck.
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