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Meet an orthodontist with $1 million in student loan debt

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Unless you have not been reading headline making news lately, then you have heard of the man who ran up a tab of over a million dollars to become an orthodontist. It was featured in the Wall Street Journal and has attracted a lot of attention. His name is Dr. Mike Meru. He owes approximately $1,060,945.42 as of the reporting of the article in May 2018. There are only 101 people with $1 million in student loan debt. He is one of those people. Here is how this went down.

HOW TO GO FROM DEBT FREE TO OWING $1M IN 13 YEARS

Mr. Meru grew up in California. He has two brothers and is the eldest of the three. His parents said they would help pay for college. He got through undergrad with the help of his parents and by working through school. He graduated in 2005 from Brigham Young debt-free.

From there he decided to go to dental school.

Before we go any further in this story, I want you readers to know that becoming a doctor is incredibly expensive. It is not uncommon to have medical students be in debt for hundreds of thousands of dollars. Anywhere from $200,000-300,000 in medical school debt is their reality.  Dental school is also one of the most expensive programs and can cost upwards of $70,000 or more per year.

Getting back to Mr. Meru, he was informed that going to dental school would cost anywhere from a price tag of $400,000-$450,000 in student loans plus interest.

For me, this is a red flag. Even if you can earn a six-figure salary as a doctor, I am risk-averse and would be turned away by this eye-popping amount. However, if your goal is to be a doctor and be of help and in service to others, then this is what the cost will be.

FROM $0 IN STUDENT LOANS TO $340,000 IN FOUR YEARS

He then chooses one of the most prestigious institutions for dentistry: University of Southern California.  This is what he paid for four years of school from 2005-2009:

Year one at end he owed: $43,000

Year two at end he owed: $115,000

Year three at end he owed: $230,000

Year four at end he owed: $340,000

Dr. Meru has now finished dental school. He owes over a quarter of a million dollars in debt within four years of graduating from college debt-free.

Keep in mind that college tuition goes up every year around the country. USC is no exception. In addition, interest rates have gone up on student loans as well. In the WSJ article, his loans were at various interest rates throughout his time at school. Also, tuition increases at USC would go for about 6%. This is a huge amount of money. For instance, a 6% increase over 3 years would be the equivalent of an 18% increase in tuition by overall from start to finish.

The cost of college is going up faster than the cost of inflation. Generally, inflation goes up by about 3% annually increasing the costs of goods and services. Therefore, if it cost a dollar ($1.00) last year it will now cost $1.03 this year. Imagine paying 6% on $50,000 and then 6% on 53,000 and so on, all the while you are also accruing interest on this borrowed amount.

You are getting hit with a two combo even worse than Mike Tyson could ever do.

First, you get hit with tuition increases of 6% in this case. Second, you pay interest on the loans you take out of approximately $50,000 per year. The compound interest is brutal.

In the article, it states that Dr. Meru found his calling as orthodontics changed his life as a teenager. However, the one caveat he did not take into consideration: inflation. If you want to learn more about inflation, read my article Money Lessons I learned from Scrooge McDuck. The cost of becoming a doctor 20-25 years ago was cheaper then as it is way more expensive now.

This is not the first time I have seen people take bets like this on their education.

If you were to do some research, you will find that 50 plus years ago education was pretty reasonable and in many cases more  affordable. I will provide one such case below.

In the book, Generation Debt by Anya Kamenetz, a Yallie that was born toward the end of the 1970’s, stated in her book that her parents old college professors were in shock at the sticker price of Yale over a seven year time period which had risen- from $30,000 to almost $39,000. Her own father, who attended Yale on a scholarship, had appropriately asked the justification of the tuition increases. This considering when he went there the price was…wait for it…$3,000. That means within one generation tuition has increased $1,000% or to roughly 10 times the cost.

The absolute saddest and funniest part of the book, in my opinion, was at the high school graduation brunch of her younger sister. Her parents also wanted her sister to go to Yale, but cited cost concerns and rightly so. The speaker said of the 180 graduates they would divide $18 million in scholarships- that’ll just about get them to Thanksgiving. That was putting it mildly.

The problem is that education is not an equalizer. Although, there is nothing wrong with getting a good education. And going to a great school with high-quality education is awesome; some people may have to simply understand that it may not be the best option for them individually.

The jury is still out on the value of an education. Sure, they let you know on college brochures and in the media that a college degree can net you more than $1 million more in lifetime income, but in Dr. Meru’s case did it also say that if you flip a coin, it could be the opposite and you could owe $1 million dollars? I don’t think so.

Many employers are paying in wages nowhere near the cost of college.

I have read that some places cannot put a dollar amount on how much to pay their employees for their degree, but colleges have put a price on it as USC cost Dr. Meru over $400k.

FROM $340,000 IN STUDENT LOANS TO $601,506 IN THREE YEARS

You would think by finishing dental school that his education was done and over with. Alas, then there is residency, which is training for doctors. However, for dental specialists this costs too. Many doctors are paid while in residency, but Dr. Meru must continue to pay for training for an additional three years FROM 2009-2012. This would increase his debt to over $600,000.

FROM $601,506 IN STUDENT LOANS TO $1,060,945.42 IN SIX YEARS

Pay close attention here because things move really quickly.

He consolidates after finishing all his education and training. He then owes $724,817 by 2012-2013. This includes in interest and principal as a consolidation not only changes your repayment terms, interest rate, and payment amount but interest can capitalize. Capitalization is what makes student loans such a slippery slope. It makes you owe interest on top of interest making it harder to get it paid off.

From there he continues to accrue interest and owes $882,300 by 2015.

Within 3 years, interest continues and grows the debt to $1,060,945.42 by 2018.

How is this even possible? In 2005, Congress created Grad PLUS loans that removed loan limits and allows student to borrow for every expense from tuition to rent and living expenses. Dangerous.

He is now making monthly payments of $1,589.97. He has two daughters, a wife, a $400,000 mortgage, a $225,000 salary and is accruing $130 per day in interest on his loans, which is $3,900 per month and $47,000 per year.

If not for Income-based repayment, he would have to pay $10,541.91 per month. Instead, he pays about $1,600. This does not pay all the interest that is accruing and does not even touch his principal. Within 20 years he will owe $2 million. If forgiven, he will owe $700,000 in income taxes. Currently, his take-home pay after income taxes is $13,333 per month. That means if he pays the $10k monthly payment, he would have his debt paid off in about 13 years, but bring home less than $3,000 per month.

 WHY SO MUCH DEBT?

Keep in mind that it is mostly graduate students that end up in the most debt. With the cost of graduate school (2-4 years) easily topping $20,000 or more per year, it can dwarf undergraduate costs. Over 20 years ago no undergrad or graduate students owed six-figures of student loan debt. Today, over 2.5 million of graduate students do.

After reading about Dr. Meru’s story, I feel that there is a serious problem with the funding of higher education. I want people to be doing the opposite of owing interest on a $1 million and instead be earning interest on this amount of money.

I want people to have the trifecta of retirement funds- pension or 401(k), savings, social security. Over a 30 year career you want to have a paid for home, 25 times your annual income in a retirement account, and be able to get social security or have at least two forms of income to supplement your savings.

In the article, his wife said there are a few things that are OK to go into debt for: a home, an automobile, an education. I have to disagree. I say if you can avoid all debt, then do it. Pay cash for all your purchases. For a car you need one loan. Same goes for a home. However, her husband needed 50 loans to fund his education.

If you are unsure why or how you will pay cash for all purchases, let the advice of these millionaires be your guide.

Mark Cuban, billionaire owner of the Mavericks, says if you use a credit card, then you do not want to be rich.

Kevin O’Leary, shark tank entrepreneur, says all debt is evil.

David Bach, financial advisor and author of the Automatic Millionaire, says all debt is bad debt.

I rest my case.

Celebrities and Money, Financial Freedom, Financial Independence, Self-Made Millionaires

3 Rich Habits of Millionaires

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After doing some research on millionaires and billionaires, I have noticed some recurring attributes among them, which include: reading, pursuing a passion, and setting goals.

READ

“The more that you read, the more things you will know. The more that you learn, the more places you’ll go.”

― Dr. Seuss, I Can Read With My Eyes Shut!

Many of the affluent read daily or often. They seem to set aside at least 30 minutes a day for reading. This greatly improves their knowledge of their products, brands, and businesses. When you know what drives the market, then it makes it easier to compete with everyone else. I even read that Marilyn Monroe was also said to be a voracious reader.

I know in my life reading has helped me a great deal. I was able to do better in school, make better informed personal and professional decisions, and increase my investment knowledge.

One of the most successful investors of all time, Warren Buffet, says he reads every day.  Buffet typically spends 80% of his day reading. Here are some quotes from interviews he has done over the years in regards to how to become successful.

THE KEY TO SUCCESS

The CEO of Berkshire Hathaway, when asked once about the key to success, pointed to a stack of books and said, “Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.”

WHAT BUFFET READS?

Warren Buffet starts his days with an assortment of national and local news. The billionaire investor tells CNBC he reads the Wall Street Journal, the Financial Times, the New York Times, USA Today, the Omaha World-Herald, and the American Banker in the mornings.

Even though Buffet reads tremendously, it would mean nothing if he did not retain what he has read. Buffets says that knowledge builds up over time. Here are some tips to remember what you read – take notes, skim the text, read out load – are just a few things you can do to retain what you read.

PURSUE YOUR PASSION OR GIFT

“To give anything less than your best, is to sacrifice the gift.” – Steve Prefontaine

I have always had an affinity for writing. I write pretty much every day. My goals are that my writing helps to plant the seed that inspire people, motivate them, and make them feel good about themselves. Writing about finances is the cherry on top of the sundae for me. And I give it everything I’ve got. No less. When I’m sick. I write. When I’m tired. I write. When I was down to my last $2. Still wrote. I would write down my thoughts, hopes, dreams, and goals. I have crossed off at least 5 items on my 10 year to do list. If it can work for me and countless others, then I know it can for you.

Dreams can come true. You just have to believe and lay down the groundwork. There is no builder of a home that would not first lay down the foundation and then build up. The same goes for life. You do not start in at the top. Otherwise, if you do, you are more likely to have created a house of cards, that can easily come tumbling down.  Like the three little pigs, you want bricks and not sticks or straw. You want something that is concrete. Construct your life blueprint on building or creating something that is solid.

If you can, find a mentor. Mentors help guide and keep people on the right path to succeed. I suggest finding someone who has already done what you want to do successfully and then asking them for advice. You can also read their books or attend their workshops. Either way study their success and see if you can imitate it.

SET GOALS

“Set your goals high, and don’t stop till you get there.” – Bo Jackson

The best advice I have ever read was to write down your goals. I have heard this from numerous celebrities including Beyoncé. She said she would write down her goals; and that she wanted to go platinum and sell a million records. Well, she wanted to be financially secure. Well, she can scratch that off her checklist. Simply heed these words: Write it down.

When you set goals and pursue your passion it is a winning combination for success. Instead of watching the clock, you just keep on working. There are too many hours on the clock when you do something you detest, but no enough hours in the day when you do something you love.

Forget the naysayers. They are not you and you are not them.  Focus your energy on doing what you enjoy putting your effort into. The energy you use to pursue your passion or anything that you do well is never wasted.  When you can focus and limit or ignore distractions, you are well on your way toward success.

Celebrities and Money, Financial Freedom, Financial Independence, Self-Made Millionaires, Wealth

The six ways to get rich

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“What’s keeping you from being rich? In most cases, it’s simply a lack of belief. In order to become rich, you must believe you can do it, and you must take the actions necessary to achieve your goal.” —Suze Orman

Sure, there are lots of ways to get rich, but they all fall into one of these six categories as there are only six ways to actually get rich.

The six ways to get rich are:

  • Capitalize on a unique skill or talent.
  • Marry rich.
  • Inherit money.
  • Own a business.
  • Take calculated risks and get lucky.
  • Spend less than you earn and invest wisely.

Let’s explore each category.

CAPITALIZE ON TALENT

Don’t make money your goal. Instead, pursue the things you love doing and then do them so well that people can’t take their eyes off of you.” ― Maya Angelou.

Become an expert in one area or niche and exploit it. Dominate that field. And never stop growing.

If you read my post on Beyoncé, you will notice that she started young, developed her craft, and expanded her expertise. She not only sings, but dances, endorses products, started businesses, and writes songs. She owns what she does. Everything from trademarks – Blue Ivy and Ivy Park – to owning a music streaming service. Put it simply, she dominates in her field.

If you want to be the next J.K. Rowling or Stephen King, then you just have to start writing. J.K. Rowling famously said she was rejected at least 12 times before anyone would publish Harry Potter. Persistence and determination are vitally important if you want to succeed. And just FYI, it took her 7 years to write Harry Potter.

MARRY RICH

“Don’t you know that a man being rich is like a girl being pretty? You wouldn’t marry a girl just because she’s pretty, but my goodness, doesn’t it help?”

―Marilyn Monroe as Lorelei Lee in Gentlemen Prefer Blondes (1953)

Dating is all about introductions and proximity. It doesn’t matter if you swipe right on Tinder or meet at your family’s country club, you just have to get some face time. You can’t date who you can’t see or touch.

In my experience, men date and marry women who are in their vicinity or social circle. Therefore, if you are looking for a rich man, then you have to be where they are i.e., charity events, sports games, auction houses, doctoral seminars, or the like.

In addition, if you know where wealthy men tend to reside, then hey you can pack up and find a job there and frequent their haunts. Location, location, location baby.

People also tend to look for partners that are successful in their own right. You don’t necessarily have to be rich, but having some sort of talent or career outside of just being a wealthy mate’s plus one bodes well for you and your prospects of landing and keeping a partner. So, invest in yourself – get educated, cultured, learn opera, play piano, paint or learn another language – either way you have a skill.

Above all else, respect yourself. Have your own life, career, friends, family, and money. No one wants a loner that can barely make rent, they want someone who is open to people, new experiences, and can pick up the check.

Don’t agree. Well, how’s this for food for thought; Chrissy Teigen once responded to a mean tweet by telling someone she does not just spend someone else’s money, but in two words replied: “my money.” She also went on to note her Forbes ranking and that she is a best-selling cookbook author. She basically told people to chew on that – no pun intended. A very nice retort on her part and her equivalent of put that in your pipe and smoke it.

Ah, gotta love that Chrissy.

You have to admit it sure sounds better when you can list your own accomplishments.  Respect for self is attractive and shows confidence. And confidence is key.

INHERIT MONEY

I would rather make my name than inherit it. – William Makepeace Thackeray

Studies into the wealth of households have shown that most wealth today is now earned than inherited. In my experience, people truly appreciate and cherish that which they work and sweat for.

For example, when I was given gifts of money or other items I am usually losing or unable to tell you whom gave me the gift. The car in my driveway that I worked so hard for is still there 15 years later.

There are those that inherit their fortunes, but the saying goes that a fool and his money are soon parted. I suggest you get a career, get educated, and learn a craft to earn your own living. If you do inherit, then you can manage your money instead of squandering it.

OWN A BUSINESS

Only I can change my life. No one can do it for me. – Carol Burnett

Starting a business is what two-thirds of millionaires do. This lets you know that if you are successful and become rich, then most likely you will or do own a business at some point in your life.

I suggest determining what you are good at and then turning that into a business. Passion is great, but just because you are passionate about golf and want to be a pro golfer does not mean that is what you are good at or meant to do.

Also study up and get a mentor or work with people in the field you want to be in. Read books, attend seminars and save money. All businesses need capitol. If you can find a business to start with a low barrier to entry such as a food truck or blogging, then the better.

BIG RISKS FOR BIG REWARDS

“If you want big rewards, you gotta take big risks.” Jessica Biel as Tenley Parrish in Summer Catch (2001)

If you read my post, wealth comes from doing not luck, then you understand that from preparedness comes opportunity and hard work creates luck and success.

It is okay to take risks, but I prefer calculated ones. The ones where you do your research, study your results, learn from you’re mistakes or the ones of others and keep moving forward. Make that pro con list, watch videos, attend conferences or better yet, speak to those that have done or are doing what you long to do. If you’re going to risk it all, then best to know all the facts first.

SPEND LESS, SAVE AND INVEST OVER TIME

The formula for getting rich is this: spend < money earned

Simply put, spend less than you earn.

If you can do that, you have got a shot at getting rich.

For example, you can be a millionaire over time if you do the following:

  • Save $6,000 a month for 10 years getting a 6% return
  • Save $2,200 a month for 20 years getting a 6% return
  • Save $800 a month for 25 years getting an 8% return
  • Save $600 a month for 30 years getting an 8% return
  • Save $500 a month for 40 years getting a 6% return

The combinations can vary based on the amount of savings invested and the return on investment of compound interest. However, the bottom line is saving can earn you a fortune.

For those concerned with inflation, here is an inflation-adjusted. 25-year wealth accumulation chart.

Source: www.businessinsider.com

THE BOTTOM LINE

Ultimately, no matter what path you take if you partake in spending less than you earn and investing, over time you will become rich eventually.

Celebrities and Money, Self-Made Millionaires

How Dave Grohl turned passion into profits

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“I never took lessons to learn how to play the drums, and I never took lessons to learn how to play guitar, l just sort of figured it out. I think that if you’re passionate about something and you’re driven and focused, that you can pretty much do anything that you want to do in life.” – Dave Grohl

I am a firm believer in being passionate about what you do. If you’re going to do it for a living, then you may as well enjoy it. That’s how I feel about finances. I can’t stop talking about it. So, I write about it.

It’s funny because growing up I always felt I wanted to be a writer. From the time I was in the 5th grade I knew writing stories made me happy. It just so happened I was able to combine my two passions and got this blog up and running.

I also try to learn from those who have turned their passion into a successful career. One person that really stood out for me in the music world was none other than one of the legendary grunge music founders: Dave Grohl.

DAVE GROHL THE BEGINNINGS

Dave Eric Grohl was born on January 14, 1969 in Warren, OH. He discovered his passion for guitar at the age of 10, started lessons at 12, and then started teaching himself at age 13. After he saw his first concert in 1982, he knew from then on that his music that he would play would be punk rock.

He went to several high schools in Virginia before finally dropping out to start playing in a rock band full-time. It was also at a concert in 1990, where Grohl met Kurt Cobain and Krist Novoselic. Little did he know these guys would be the start of his future in rock. They asked him to audition for their band. His passion, drive, and all out hardcore drumming impressed them and from there he became the new, fifth and final, drummer for the legendary band Nirvana. As one-third of the iconic Nirvana, he played with them from (1990-1994). And they played grunge music.

Grunge started around the 1980’s in Seattle. As a form of alternative rock, these bands changed the game in music. One band that stood out from the crowd was Nirvana.

NIRVANA FROM GRUNGE MUSIC TO MUSIC ROYALTY

After playing with Nirvana for a few years, they got the attention of major record labels.  Nirvana was signed to Geffen Records and recorded the iconic album “Nevermind” right after. This album, in 1991, had the hit single “Smells Like Teen Spirit,” which was a huge commercial success worldwide, became the anthem for grunge music and became one the top selling singles of all time, with 8 million copies sold. It also spawned the hit single “Come as you are” in 1992. Nirvana went from grunge music to music royalty, and became international superstars.

Nirvana became so big that their music had to be cut from the 1992 Cameron Crowe film soundtrack for “Singles” after they became famous. The song and band became so popular that the movie could not afford the rights to the song as it became too expensive by the time the studio released the movie. The album “Nevermind” was recorded over the course of a year and would go on to sell over 24 million albums worldwide. The band would go on to record 102 songs and become one of the biggest recording groups of all time.

After the death of Nirvana lead singer, Kurt Cobain, the grunge music scene was left reeling as many grunge bands in Seattle broke up and from there things were never the same. That is just how much Cobain and Nirvana had influenced alternative rock. Their talent as a band forever lives on in their music.

FOO FIGHTERS

Grohl went on to form the critically acclaimed bad the Foo Fighters in Seattle, Washington in 1994. Founded by the Nirvana drummer as a one-man project after the dissolution of Nirvana. Although, he was asked to join other bands, including Tom Petty and the Heartbreakers, he turned them down to pursue his own vision and dreams.

According to an article in Rolling Stone magazine, devastated by the death of Cobain, he went to Ireland and was just in a daze driving around until he saw someone walking down the street wearing a Cobain T-shirt. From there he decided to go back to work. He then recorded a 15-track demo. This would become the Foo Fighters first album.

The band’s debut album “Foo Fighters” was in 1995 and they are still going strong today. In the band’s twenty plus year long career they have won four Grammys, recorded nine albums and sold over 12 million albums in the United States alone.

ADVICE FROM A ROCKSTAR

When Nirvana became popular, you could very easily slip and get lost during that storm. I fortunately had really heavy anchors – old friends, family. – Dave Grohl

No excess needed. Grohl has said he does not believe in rock-star excess. When Nirvana made it big and got popular he was renting a house with a friend. He had a lamp, futon, and a dresser. When the band sold over ten million records later, he still was in the same spot with the same lamp, futon, and dresser. He said he didn’t have much growing up, but does not remember ever needing anything. Grohl says, how much do you need?

When asked about what he does with his money, this is what Dave Grohl replied:

“It goes straight into my bank account, where it turns all moldy and smelly… I don’t waste my time thinking about how I could make more when I already got enough. I’m not a banker, I’m a musician.”

Nirvana (Cobain, Novoselic, and Grohl) would eventually be forever remembered by receiving one of the highest honors in music as they were inducted into the Rock and Roll Hall of Fame on April 10, 2014. The band has sold over 75 million albums worldwide. They are considered one of the greatest rock bands of all time.

More than one path to success. Coming from money and pursuing higher education are not the only ways to succeed. In an interview, Grohl stated “I never graduated school and I never had enough money for college.” He worked blue collar jobs and played music on the side. Now he’s in the Rock and Roll Hall of Fame. Grohl says, “I want everyone to imagine that same opportunity is possible.”

Be true to yourself. Grohl’s advice to others after all his success is simple and honest which is just to be yourself as it has worked for him for the last 20 years. Grohl feels he is an earnest and nerdy guy, but it works.  His mother has described him as driven and determined with money never really being part of their conversation as he just wanted to work.

When he writes music, he wants a story behind it. He wants something that is relevant. And having sold over 100 million albums in two different bands it shows that it works. His mother says she believes people listen to his music because he is sincere. Basically, he could be the Phil Collins of alternative rock. As Phil Collins, is one of the only artists (there are only three) to ever sell 100 million albums as a solo artist and with a band.

He once even broke his leg during a concert, went to the hospital, and was back on stage within two hours playing guitar. That’s just how much passion he has for what he does.

I love to play music. So why endanger that with something like drugs? – Dave Grohl

Grohl says, “It’s important to me – that the stories that inspired me can inspire other people. I don’t feel like I’m on a mission. But I have the opportunity and the resources.” I take this advice to heart and I just try to be myself, do what interests and excites me, and just live my life. If it doesn’t excite me, then I probably won’t do it. Life is too short for mediocrity.

And just in case you were wondering, Nirvana went on to receive seven Grammy award nominations; winning one. The Foo Fighters have been nominated for 16 Grammys.

Grohl, the man behind the drums in Nirvana, and the lead guitarist in Foo Fighters, has received 15 Grammys out of 39 nominations. He continues to tour with the Foo Fighters and has amassed a fortune of $280 million dollars. Not bad for a high school dropout. It just goes to show; never give up on your dreams.

Budgeting, Celebrities and Money, Financial Independence

Wealth comes from doing not luck

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“Luck Is What Happens When Preparation Meets Opportunity” – Seneca

“I’m a great believer in luck, and I find the harder I work the more I have of it.” –Thomas Jefferson

I do not believe in coincidences.

I believe that whatever happens was meant to. A series of actions and events put two people or things together for a reason. You attract people and things to you.

“The truth attracts money to you and lies repel it.” – Suze Orman

Therefore, if you want to attract wealth, good health and abundance then tell the truth.

THE TRUTH WILL SET YOU DEBT-FREE

Tell people your financial truth. Tell your friends and family that you can’t go on that trip with them, or out to dinner at an expensive restaurant, or that you do not have the funds to buy Christmas gifts.

Yeah, I said it. Cancel Christmas if you have to.

There’s no rule that says you have to go into debt to buy gifts for Christmas.

How about the family finds a more economical way to give gifts? Like a lottery or drawing or Secret Santa. This could be drawing names out of a hat and buying just for that one person.

Who cares if you ruffle some feathers? It is far better to be debt-free. That is the gift that keeps on giving.

Not having to pay interest to service debt is the best gift of all you can give to yourself.

“Rather go to bed without dinner than to rise in debt.” – Benjamin Franklin

Couldn’t have said it better myself.

If I hear one more person talk about going on vacation to Jamaica, I’m going to start an exotic vacation jar. It works similar to a swear jar. However, the end result will be I put my own money into the jar, say $5, and then deposit it in my savings to invest it into a Certificate of Deposit (CD) or stocks at the beginning of each year.

I know some people may not agree with me, but I really do feel that you get as much pleasure and excitement out of saving as you do spending.

I have watched and heard many friends, family, and acquaintances talk about plans for vacation, but I rarely hear them talk about plans for saving for the future.

Everything revolves around spending.

Well, I’m here to let you know it’s okay to say no to things.

It is okay to say no that you cannot afford to go shopping, out to dinner with friends or to birthday parties.

Heck, even weddings if the ticket and tux will put you in the red.

If you feel obligated to go to a wedding, I completely understand, but plan for it.

For instance, you could save $100 bucks a month in a weddings account. This is for all things wedding related. Flights, hotel rooms, wedding attire, and gifts. Set aside a certain amount. Let’s say $1,000 and that is your budget. Then you never have to worry when you get that call, “I’m engaged.”

If you feel that it makes you uncomfortable to tell people you can’t afford it, try this one line on for size: “I choose not to spend my money on insert item here.”

Fill in the blank with anything. It sounds good no matter how you say it.

Cause after all, it is your money.

Lastly, tell your doctor the truth. You can’t have wealth without health.

Do not ever feel embarrassed to tell a health professional what is going on with you.

They are there to help not to judge.

LUCK MAY NOT EQUAL MORE BUCKS

“If you just keep your head down, work, and put it on the bottom line, sooner or later that takes care of everything else.” – Wayne Huizenga

I feel that people make their own luck. The harder you work, the more you give of your time, energy and efforts to work, help and care for others is all the luck you need. Hard work is like a magnet because it attracts things. Like money. It’s a Greenbacks Magnet. Get it. Wink, wink.

Even, Star Wars Master Jedi Obi-Wan agrees with me.

“There is no such thing as luck. Only opportunity and being prepared.” – Terry Crews as Julius on Everybody Hates Chris (2005-2009)

So if luck is tied to work, then what do you think happens when people are lazy. So in essence, you are not ever really unlucky, but you can be lazy.

I know life is a journey that is full of twists and turns. It is not a straight path – as the crow flies – from obscurity to abundance.

I also know that life is full of tough times, obstacles, and at times unfair. We may not all have the same opportunities, but we all have to play the hand we were dealt because our turn at bat will come. Every action may not be a royal flush or a home run. Sometimes you just have to roll with the dice. However, you can do your best with what you’ve got. Either way, life happens. So batter up.

I agree with this quote: “You don’t get to choose if you get hurt in this world…but you do have some say in who hurts you.” – John Green (author of The Fault in Our Stars and Paper Towns)

You may not earn what you want when you want, but you can start building lasting impressions and relationships that can put you on the path to wealth.

It’s been said the harder you work  the luckier you get.  Tejano singer Selena once said, “When you get hard work you get success.” That was 25 years ago. But you don’t have to believe me. Here is it straight from the singer herself. She may be gone, but her music and words of wisdom are not forgotten.

Let’s say you get to the cherry on top of the sundae and earn gobs of money and it piles up. Well, don’t let money make you complacent. No resting on your laurels. Hard work is about more than prosperity. Jennifer Lopez says she learned the following from her parents:

They showed me that you put your head down and work—you work for a living and then, when you’re making a living, you still don’t stop… We don’t stop working because we have money in the bank—we do what we do and we keep on doing it.

Remember this: “We make a living by what we get, but we make a life by what we give.” – Winston Churchill