Welcome to this post of Win, Lose or Save.
Like the show, Win, Lose or Draw you must decide your fate.
Financial fate that is.
Are you a fiscal gentleman or lady that manages your money well? Let this post help you out!
I do not care what anyone says or tells you, but saving is important. Supremely important, in fact. Why? Because all things first start with having money; therefore, you must save some.
Want to buy a house? You have to have a down payment. Want to start a business? You need to have the funds to pay employees and the lease on the storefront. Want to invest in your favorite company? You have to be able to put money in the brokerage account. And the list goes on and on.
I’ll give you an example of why you need to save money.
Every year for my birthday, I like to buy stocks.
Generally, shares in a 500 index fund. However, if you are broke, then there is no way to make this ice cream dream a reality.
Instead of an exotic vacation, new toy, fancy new set of wheels, or expensive birthday cake, I prefer to buy myself a $3.50 cupcake. Wait…in providing full disclosure I paid tax on that cupcake, so it really cost me $3.85.
I actually had about $500-$5,000 that I could invest. So, where did that other $496.15 or 4,996.15 go? Toward earning me interest of course!
We cannot all be like the jeopardy champ that has won a mind boggling 28 times in a row. His total winnings are now at the $2 million-dollar mark. Incredible!
However, we cannot base our financial futures on being able to answer in what year was the Louisiana purchase; 1803. Oops…I meant to say, What is 1803?
We need our money to work for us while we are sleeping.
I know the cast of Friends is still raking it in, but they are from a different time. When studios had to pay to play. That is, pay these actors on the back-end with royalties in order to get them to commit to playing the same characters for a decade or more. That is 12-15 hour days spend on a studio back lot that you cannot get back.
So I say kudos to them and the casts of the recently ended The Big Bang Theory and Game of Thrones. However, we all can’t be Starks or Dr. Sheldon Cooper, Dr. Leonard Hofstadter, Dr. Koothrappali, or Howard no Dr. in front. Just Howard. 🤣
You must save because you do not know when the next check will stop coming in. Let’s examine this further shall we? In one of my posts, I wrote about why Academy Award Winner Halle Berry saves so much.
See my post Why Halle Berry And I Continue To Save So Much
Because if you play spin the bottle with your finances, then it tends to land on BROKE!
It is no secret that here in the good old US of A many high school and college graduates know nothing about finances. However, here at Greenbacks Magnet we aim to change all that.
That is why I write cautionary money tales like today’s post.
For more cautionary money woes and tales, you can check out more stories on my website.
See my posts
From Debt Free To Owing $1 million In Mortgage Debt
Meet An Orthodontist With $1 Million In Student Loan Debt
From Pulitzer Prize Winner To Penniless
So let me give you some examples of why not to depend on big paychecks, royalties, or sequin jumpsuits.
A DIME ISN’T WORTH A NICKEL It was recently reported on May 14, 2019 that Brian May said that Queen hasn’t made any money from Bohemian Rhapsody. Now that’s a head scratcher. The film went on to gross over $900 million at the box office and its star, Rami Malek, with his performance as Freddie Mercury earned him the Oscar for Best Actor.
What do you gotta do to earn a few coins? Invent the wheel. Or in this case, invent music!
In yet another tale of musicians and money, David Lee Roth of Van Halen fame said the following in a December 2018 interview, “up until 18 months ago, I was making pennies in royalty on a $20 Van Halen record.” In addition, Roth stated, “I got butchered 40 years ago. I made over a billion dollars for Warner Bros. I watched my whole fortune walk off into another man’s pocket.”
However, now that he is no longer under a recording contract and owns his own business he is, and I quote, “I’m a free motherfucker!”
This is sad and confusing to say the least. I would be a disgruntled employee too if I sold millions of albums, t-shirts, spandex leotards, and headbands only to receive pennies on the dollar!
Check out how other musicians made fame and kept their fortune.
See my posts
How Dave Grohl Turned Passion Into Profits
Money Advice I Got From John Legend
This reminds me of what I read in Pat Benatar’s book, she stated that she made her record label $75 million dollars and she felt used, abused, and thrown away.
After reading her book, I knew I better make sure to fund my retirement account like no tomorrow. When you see people work that hard for so many years talk about getting the shaft, then you know us regular folks in the salt mines better get it together.
Don’t even get me started on all the celebrities that owe the IRS! It just goes to show you that saving money has to be a part of your financial freedom equation.
There is no financial independence when you have debt obligations. More cannot go out than is coming in.
WE ALL MUST FACE THE MUSIC
Here’s the thing. We ALL are going to stop working someday. It is simply up to you to decide what you want to and ow you want to live.
You may think that adults should know how to manage their money. However, if you never learned how to balance $100 in your checking account, then how on earth is someone supposed to earn and build a million bucks!
I work under the impression and assumption that if most people can manage $1,000, then they can manage $100,000 or more.
If I still have not convinced you to save, then just let me share this last story with you. If you saw The New Edition Story, then you know kids get ripped off too! Recording a hit album netted these kids $500 and a VCR! They decided to start taking more control of their money and their financial destiny. And you should too!
Therefore, I have chosen to be the master or mistress of my fate like Elvira is Mistress of the Dark.
I own my image, whatever I do, my mistakes and my money.
I am Mistress of the Greenbacks Magnet. I’m ready for my financial close-up like the same way model and actress Cassie poses for a shoot.
If some company goes belly up and decides not to pay out it pension, then plan to make other arrangements. I don’t want to be left holding the bag for my retirement after giving my youth to some company who tells me to invest in their stock while at the same time cashing out their own chips like Enron.
That is why I save and invest.
I increase my goals EVERY SINGLE YEAR!
Doesn’t matter if every goal doesn’t get hit, I still have something to aim at.
This is what I have decided for my future. Here’s my financial close-up. 😉
Here is a peak behind my financial savings curtains.
Ladies and Gentleman, I give you Greenbacks Magnet savings goals:
2018: $13,333
2019: $14,000
2020: $15,000
2021: $16,000
2022: $17,000
2023: $18,000
2024: $20,000
2025: $25,000
As you can see, my ultimate goal is to save $25,000 per year. That would net me $100,000 every 4 years! It is all about planning and discipline.
I do not care if your goal is to be able to make rent next month or buy a private plane next year.
Whatever you do, win, lose or save; make a goal and stick to it.
Loved this episode from The Big Bang Theory!
So do I. That joke never gets old.
Miriam