Larry Light, Senior Contributor
Nov. 19, 2024
How maternal wisdom benefited one financial advisor, teaching him early about vital things like debt management and estate planning.
You’d never admit it as a kid, but your mother likely had a lot to teach you. That belief led Larry Mathis, founder and CEO of Phoenix-based Mathis Wealth Management to write a book inspired by his mom’s story.
Light: What inspired you to write Mom Was Right?
Mathis: My inspiration came from watching my mother, a single parent raising seven kids, achieve something truly remarkable—retiring debt-free. In Mom Was Right: Family Tragedy to Financial Freedom—How a Widowed Mother of Seven Retired Debt-Free, I shared her story because I realized that the values she instilled in me weren’t just life lessons; they were financial principles that had an enormous impact on my career as a financial advisor. I wanted others to see the incredible example she set, to learn from the wisdom she passed on through both her actions and her words.
Light: What are some of the most valuable financial lessons you learned from your mom?
Mathis: One of the biggest lessons was the importance of avoiding "debt bondage." My mom was very clear about living within your means and avoiding unnecessary debt. I remember when my wife and I were newlyweds, struggling to make a down payment on a home in San Diego. My mom loaned us some money, but on strict terms: she charged us interest and insisted on monthly payments being on time.
Later, when I wanted to borrow more for a car, she said no because we had missed a payment. That experience taught me that debt can be a trap, and you must be disciplined about managing it.
Another critical lesson was about “putting it in writing.” My mom was diligent about documenting everything important. Whether it was a grocery list for the milkman or legal documents, she believed in the power of having things in writing. That carried over to estate planning—ensuring you have a will, a living will, and powers of attorney in place to protect your wishes and your family’s future.
Light: Please elaborate on what you mean by "debt bondage" or the "debt trap"?
Mathis: Debt bondage, or what I call the debt trap, refers to the way debt can quickly spiral out of control, making it difficult—if not impossible—to maintain financial freedom. Debt is deceptively easy to accumulate, but once you’re in it, you’re often stuck. For example, if you're carrying high-interest debt, like credit cards, you might only be able to afford the minimum payments, which means the interest keeps growing, and the principal barely shrinks. This creates a vicious cycle where your financial choices become limited by the need to service that debt.
In my own life, as I shared earlier, I learned this lesson the hard way. After borrowing money from my mom for a down payment on a home, we tried to borrow more for a new car. When she refused, citing our missed payment, it was a wake-up call for me.
Debt gives you the illusion of freedom and flexibility, but if you’re not careful, it can remove your ability to make other important financial decisions. That’s why I always tell clients: minimize your debt whenever possible and only take on what you can reasonably manage. Debt should be a tool, not a trap.
Light: You’ve mentioned the importance of estate planning. Why is it so critical to have these documents in place?
Mathis: Estate planning is one of the most important, yet often overlooked, aspects of financial management. Without a clear estate plan, including a will, living will, medical power of attorney, and financial power of attorney, you’re leaving critical decisions about your health, finances, and legacy up to chance—or worse, to the state.
My mom understood the importance of writing things down. Just as she left instructions for the milkman, she made sure that everything important was clearly documented. It’s the same for your estate.
If you don’t have a will, the state will decide how your assets are distributed, which may not align with your wishes. A living will provides clarity on medical decisions, such as life support, so your family doesn’t have to make those agonizing choices under emotional stress.
The powers of attorney allow trusted individuals to make financial or medical decisions for you if you’re incapacitated. Estate planning is more than just about wealth—it's about making sure that your loved ones are taken care of and that your legacy is honored. I urge my clients to put their plans in writing, not just to protect their assets but to provide peace of mind for themselves and their families.
Light: How do these lessons shape your financial advising today?
Mathis: These lessons are at the core of how I advise my clients. For example, debt management is an essential part of any financial plan, and avoiding excessive debt is one of the cornerstones of building wealth.
I also encourage clients to document their financial and estate plans, so they have clear directions for their family in the event of an emergency. One of the most valuable things I’ve learned is the importance of having a “why.” That’s something I ask all my clients— why do you want to achieve your financial goals?
Understanding your “why” gives clarity to the “how” of financial planning.
Light: How can the principles your mother taught you help others today?
Mathis: The principles she lived by—common-sense financial discipline, living within your means, documenting your plans, and knowing your purpose—are timeless. They provide a foundation for anyone, regardless of their financial situation, to start making smarter, more intentional financial decisions. If my mother’s story and the lessons she taught me can inspire others to take control of their financial futures, then I feel like I’m continuing to honor her legacy.
By Larry Light, Senior Contributor
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