The ILEETA Learning Lab
The Learning Lab is a series of 60 minute interviews with ILEETA Conference presenters discussing the key teaching point takeaways from their conference presentation. These interviews are packed with great content and created to serve as weekly professional development training for ILEETA members.
The ILEETA Learning Lab
Building Financial Strength in First Responder Families with Nick Daugherty
Host: Brian Willis, Deputy Executive Director, ILEETA
Guest: Nick Daugherty, Founder of "Building Financial Strength in First Responder Families" and "The Financial Cop"
Episode Overview: In this episode of the ILEETA Learning Lab podcast, Nick Daugherty, known as "The Financial Cop," shares his journey from financial mismanagement to becoming a financial wellness educator. The discussion centers on the financial challenges unique to first responders and the strategies for building financial resilience.
Key Points:
- Nick's Financial Journey: Nick recounts how he accrued significant debt early in his career, reaching $80,000, and how he turned his situation around using Dave Ramsey’s financial principles, paying off his debt in 24 months.
- Financial Wellness Training: In 2011, Nick launched a financial wellness class tailored for first responders. The program has reached over 10,000 individuals across 2,000 agencies and emphasizes the connection between financial literacy, stress, and overall well-being.
- Budgeting as a Core Skill: Nick emphasizes that budgeting is the most crucial financial skill, comparing it to planning and debriefing in a SWAT operation. He advocates for an "every dollar budget" to ensure financial control.
- Phases of Financial Training:
- Budgeting: Establish a clear budget as the foundation.
- Emergency Fund: Build a $2,000 emergency fund for small crises.
- Debt Repayment: Use the debt snowball method to eliminate consumer debt.
- Full Emergency Fund: Expand the emergency fund to cover 3-6 months of expenses.
- Retirement Planning: Start investing in retirement accounts after becoming debt-free.
- Saving for Big Purchases: Plan for large expenses like cars or college tuition.
- Paying Off the Mortgage: Focus on paying off the mortgage to achieve financial freedom.
- Building Wealth: After becoming debt-free, concentrate on wealth accumulation and giving back.
- Avoiding Common Pitfalls: Nick warns against over-reliance on pensions and living paycheck to paycheck. He stresses the importance of financial planning and working with a fiduciary advisor.
- Long-Term Financial Success: Nick discusses the importance of staying disciplined, avoiding lifestyle inflation, and focusing on long-term goals. He believes that financial freedom allows for greater personal fulfillment and generosity.
Resources Mentioned:
- Website: Financial Cop
- Books:
- "Good to Great" by Jim Collins
- "The Seven Habits of Highly Effective People" by Stephen Covey
- Podcasts and Audiobooks: Nick recommends using time in the squad car to listen to leadership books and podcasts for personal development.
Final Thoughts: Nick’s eight-phase financial training program is designed to help first responders achieve financial security and peace of mind. Listeners are encouraged to take actionable steps based on the insights shared in this episode.
Call to Action: Join the ILEETA community to access more resources like this interview and invest in your professional development. Visit ILEETA for more information.