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Banking, Bankruptcy, Budgeting, Credit Cards, Saving, Wealth

3 Money Lessons from Til Debt Do Us Part

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“Money isn’t rocket science.” – Gail Vaz-Oxlade

Til Debt Do Us Part is a Canadian television series that follows couples that are going through financial crisis and financial expert, Gail Vaz-Oxlade, comes in to help the couple find solutions.

The series ran for over 100 episodes from 2005-2011. It also had a spin-off called Princess.   She teaches couples to go from red to black and gain control over their money.

The show would air right after the Suze Orman show during its run on CNBC. Read my post Dom Perignon Taste on a Budweiser Budget to see how it all went down on Suze’s show.

#1 REASON COUPLES BREAK UP

Money is the number #1 reason couples break up. She visits couples weekly and gives them challenges to help with their finances. Then at the end of each episode, after about 4 weeks, she awards the couple with up to $5,000 dollars to help them get out of debt.

CUT THE CHEQUE

By far the best part of the show, in my opinion, is when at the end of one month, Gail Vaz-Oxlade gives the couple a cheque for an amount up to $5,000, depending on their attitudes and how well they did during the challenges. Keep in mind, couples could get less and some have. One of the lowest amounts I have seen her give was $3,000, which is a 40% reduction of the prize money.

The show was so popular that a 52-Week Life Planner was released based on the television series and offers day-by-day, step-by-step strategies and tips for successfully managing household finances.

This reminds me of a Tom Holland interview he did for Spiderman talking about how Anthony Mackie always says, “cut the check.”

https://twitter.com/UNILADFilm/status/886949865330155521

Let’s get back to Gail.

If you have never heard of the show Til Debt or can’t remember it, no worries, I will take you back down memory lane tonight.

WHO IS GAIL VAZ-OXLADE?

“We feel good when our homes are bright and shiny, put a little elbow grease into your money and it’ll glisten too.” – Gail Vaz-Oxlade

Gail Vaz-Oxlade is a financial writer and was a columnist for numerous publications as a freelancer including Yahoo! Canada Finance.  She has helped people from high finance to low-income solve their money problems. Eventually, she became a television personality due to all of her work in finance and that is how the show Til Debt came into existence with her as the host.

She has written numerous books on the topic of finance. I have actually read one of her books called Debt-Free Forever.

Gail has a no-nonsense attitude when it comes to money. And that is what makes her so good at what she does.

FOR THE LOVE OF JARS

“You can have everything you want. All you need is a plan. And how do we spell plan? B-U-D-G-E-T!” – Gail Vaz-Oxlade

Watching the show was very interesting. One recurring theme was the jars. Gail advocated for couples to live on cash.

Every single episode, you got cash jars. You would put in a certain dollar amount. When you spend, you write it down in the budget binder cause cash slips through our fingers easier than that snail did with Julia Roberts in Pretty Woman.

Some couples were taking out cash at the ATM from their bank accounts or doing cash advances, which Gail said she could not track so we don’t know where the money went. When it’s gone, it’s gone. Without writing it down or keeping receipts, there is no other way to track cash. So, jars it is.

MONEY LESSONS FOR GAIL

Gai loves cash and hates banks. She thinks they are bleeding people dry slowly with their interest and fees. Gail says banks are wolves in sheep’s clothing. The only way this will change is to teach financial literacy in school. I say start in elementary when they are old enough to start asking for a $1 lollipop, it’s time to start the finance lessons.

Check out my posts on banking.

Banking at Credit Unions versus Banks – The Great Debate

New Banking Rules: Clear a check payment in a day

Q&A with Lisa Servon:, Author of the Unbanking of America

This is the secret recipe to building wealth: You need to make more money and you need to spend less money.

Here are 3 lessons that Gail taught me: (1) both partners need to manage the money, (2) no retail therapy, and (3) debt repayment takes time.

LESSON ONE: GAIL ON COUPLES MANAGING MONEY

  1. Do not have only one partner manage the finances.

“It’s not unusual for one person to assume the nitty-gritty of daily finances…. The problem is that when one person is excluded, or totally abdicates responsibility, it means the other can mess things up with no monitoring or grow resentful at always having to do the detail…. Taking turns managing the chequebook, and having regular conversations so that both of you are clear about what’s going on, means you’re both in the know and working to the same ends. It also means that one person doesn’t have to deal with all the crap, while the other merrily laughs off the stress and frustration with, ‘You’re managing the money, so this is your problem to deal with.’ (Yes, there are dopes who say this.)”

Always know what is happening with your money. I don’t care who signs the check and put it in the envelope. Just make sure you lick the stamp. Be involved. Ask questions. Don’t be in the dark.

It’s kind of like that scene in Charmed in the episode Be Careful What You Witch For. Remember that scene in the beginning, after the opening credits. I want you to be skeptical like Phoebe. Always know who you owe and how much. Nothing is for free.

The conversation went like this:

Phoebe: I don’t get it you’ve been stuck in that bottle for two hundred years then someone finally sends you to us and you’ve no idea who licked the stamp? I find that very hard to believe.

Genie:What? I don’t get it you win the lotto and you’re asking for explanations?

Piper:Actually we’d like to know who to send the thank you note to.

Same conversation you should have with your partner, but about which creditor.  And winning the lotto, yeah right? Read my posts Forget casinos, bet on yourself and Mega Millions win or bust.

LESSON TWO: GAIL ON RETAIL THERAPY

  1. Forget retail therapy

“Plastic is anesthetic — it dulls the pain, and then what happens is you just keep waiting for the next fake high.”

And don’t I know it. I had a huge shopping problem for years. It was done as a way to dull the pain of the things going on around me – low-income, working full-time, going to college – I was a mess!

I had some pretty terrible managers when I was younger too. All the stress was getting to me. I had to find a way to cope, but shopping was not it. As I got more mature, I found ways to de-stress that were cheaper or free.

I have said it before that credit is seductive and addictive. It should not be used to replace your emergency fund (liquid cash). However, if you do, be strategic and use credit wisely and sparingly.

How to get access to a $250,000 Emergency fund with $0 of your own cash

How Benjamin Franklin used 13 virtues to get rich 

LESSON THREE: GAIL ON DEBT REPAYMENT

“A goal without a deadline is just a dream.” – Gail Vaz-Oxlade

  1. Slow and steady is the way to repay debt.

“One step at a time. You are on your way. Expect challenges. Keep your goal where you can see it.”

You better believe it. If it took you 8 years to accumulate the debt, thinking you can pay it off in 3 months is delusional. See my post Getting out of debt one step at a time.

The good news is that once you recognize you have a problem with debt, then you can work on solutions. I have noticed that generally 2-3 years of cutting back and attacking debt is usually enough time to pay off most if not all of your consumer debt except the mortgage and student loans. After 5-7 years, the only debt left is usually the mortgage. That is a small price to pay for freedom.

TIL DEBT O US PART

I did a search online and found this synopsis of the show’s premise at IMDB.com. It’s spot on.

Storyline

Money can’t buy you love. But keeping love alive without money can be pretty tough. In fact, ninety percent of marriage breakups are due to money problems. And to get advice on how to manage money usually costs money! Til Debt Do Us Part, is a series that offers tough-love solutions to those willing to face their financial troubles head on. In each episode we meet a couple in crisis. Some are on the verge of bankruptcy, hounded by creditors or facing eviction. Others are just getting by, but in the midst of a personal meltdown or relationship breakdown because of money issues. With the sensitivity of a therapist and the toughness of a CFO, our host, renowned financial author and columnist, Gail Vaz-Oxlade reveals what she’s found in a couple’s finances – and then she’ll dig a little deeper. She asks some tough questions and then they’ll be forced to face reality. Where will it end if they continue on this rocky road? To get things back on track, Gail takes control of their finances …

This show was very eye-opening in how people managed their finances. Many did not have a clue what was coming in and going out. Gail would come in with her screen shots of the couples bank accounts and spending and give it to them straight.

Many times the wives would burst out in tears after seeing how much debt the family was actually in. Lots of couples were in over their heads. Some so deep in debt they had to consider selling their house, or worse, bankruptcy!

Some couples did not want to make any changes. Even though they were debt up to their eyeballs. These people needed to get their priorities straight. Much like Hermione, in Harry Potter.

Here is the show’s Intro and theme song along with a promo. This is just a taste, a light sampling, of what you are in store for with this show.

There are 2 episodes that stand out for me. They were called The Worst Family Ever and Love Affair with Luxury.

MONEY WORRIES CAN CAUSE SLEEPLESS NIGHTS

In the S03E13 entitled, “The worst family ever?” One couple were living in the wife’s family basement for about a couple of years. They spent with reckless abandon. Oh, the couple popped bottles night and day. Especially, after moving out and buying their own home for about $225,000. That’s not bad. What is bad is that they saved zero dollars while sponging off her parents.

That’s right. While mooching off the rents’ they saved $0. Not one dime. Even Scrooge McDuck saved his number one dime. See my post Money Lessons I Learned from Scrooge McDuck. Also, check out Why the Rents’ shouldn’t pay your rent.

Then, to make matters worse, they threw non-stop parties at their house for friends and family. This was obviously all to make themselves look good to friends and family. In Yoda speak, so concerned with appearances they are.

“Happy people don’t worry about what other people think about them.” – Gail Vaz-Oxlade

OUT OF CONTROL SHOPPING FOR BABY BUT THE KIDS ARE ALRIGHT

In addition, they expanded their family and had a son, but financially were unprepared for this. At one point, the wife was spending $1200 a month outfitting junior! I couldn’t believe it. What is she buying Versace onesies? Get real. A baby doesn’t care. They just want to be warm, feed, and dry.

This couple were overspending by the tune of $4,100 a month! Holy spending gone bonkers, Batman!

Fun Fact: For those of you unfamiliar with that Batman line, here is where it comes from. The Batman television series from the 1960’s. Batman was American live action television series, based on the DC comic book. It starred Adam West as the titular character and hero Batman and Burt Ward as his sidekick Robin.

It was also turned into a cartoon series. Here is Robin at his finest with his sayings. Hilarious!

I decided to post it so you won’t ever have to get the tongue lashing that Penny got from Sheldon on an episode of The Big Bang Theory about Batman at 2:48 into the video.

The Precious Fragmentation – Season 3, Episode 17
Aired March 8, 2010. One of my favorite episodes.

https://www.dailymotion.com/video/x6ng6kb

It was about The Lord of the Rings. Even Raj used a Holy Robin saying in there!

In this next video, Sheldon gives a fun fact to Raj. Now, you know where I get it from.

Now, back to the story.

The way the couple on the show  were able to overspend like that, drumroll please…the credit cards!

When Gail comes along they are so bad she tells them they have to sell the house. They flat out said they could not sell the house. Even though they are on the path to $1.3 million in debt and possible bankruptcy! Gail, at one point in the show, tells them they are the worst couple she has had on the show and that she had a few sleepless nights worrying about how to help them out of this situation. Coming from Gail, that’s scary.

The way it went down, it reminded me of that scene in The Chipmunk Adventure, when Jeanette and Eleanor was telling the Arabian prince that Brittany spends money like a drunken sailor and Brittany got mad. Hilarious. I just so happened to find the footage of that particular scene and the movie on YouTube. Hope you have fun watching! No need to thank me.  Like Dean Winchester says, “You’re Welcome.”

SHOULD YOU FINANCE A $100,000 CAR?

“Change brings challenges, learning, and a sense of New. Change is full of promise.”- Gail Vaz-Oxlade

In the S04E03 entitled, “Love Affair with Luxury,” which aired March 6, 2008, is the gold standard of delusions of grandeur when it comes to money management. The wife, Simone, is a champion shopper and a spendthrift who manages to make 53 shopping trips in a single month! That’s nuts. Even though she’s on maternity leave, a luxury car is next on her shopping list.

The only reason the couple is able to afford such luxuries is because they have each other’s incomes. The minute one person’s income is gone or reduced, i.e. disability or divorce, the whole house of cards comes tumbling down faster than the stock market has in the last 30 days.

Check out this post by BudgetsareSexy to see just how far down the stock market has gone in his The Red Wedding of Net Worth Reports.

LOVE AFFAIR WITH LUXURY SUMMARIZED

I found the plot summary for the episode Love Affair with Luxury online at IMDB.com.

Frank and Simone’s combined $110,000 annual income is currently curbed by Simone being on maternity leave. Simone is addicted to what she believes she needs to keep up appearances in every respect, which includes working out at the gym, and spending money on “stuff” for herself, such as clothes, getting beauty treatments of various kinds, and having a beautifully appointed house. A $125,000 new car is next on the list. Simone, however, states that she would never do anything that would place her family at risk. But Frank doesn’t realize he is just as guilty, spending money on his electronics, which includes six large television sets in their house of four people, including one infant. This spending has resulted in $55,000 in consumer debt so far. They constantly fight about money, something having to give if their marriage can overcome this issue. As such, Gail issues them challenges largely focusing on dealing with their root problem, namely their addiction to luxury, this focus which not only entails them doing the challenges, but understanding why she has issued these challenges.

At one point in the show she says, “we can finance $100,000 can’t we.” For a car no less! If you have ever read this blog, you know I can’t stand cars for the simple reason that they can keep you in debt forever. You could spend a couple hundred grand on cars in a lifetime. You know how much interest you could earn on $200,000! Here are just a few on my posts on my beef with car loans below.

If you want to be wealthy, drive a Ford 

Why not to own a $50,000 car on a $25,000 salary 

Life is good without a car payment 

A car and nothing more

Outrageous Loan Terms for Porsche that even the Rich can’t justify 

FINAL THOUGHTS

Money is a tool we use in the present to create the reality we want in the future. Learning about finance is a good start. Practicing good money habits and teaching your kids to understand the concepts of money – budgeting, saving, and spending – you help create their reality.

So, I want to always stay in control of your…I will now end this post in the last words of the Til Debt Do Us Part theme song, money, money, money, money, money, money, moneyyyy!

Budgeting, Celebrities and Money, Credit Cards, Retirement, Saving, Self-Made Millionaires, Wealth

Money Lessons I learned from Jay Leno

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Photo: Forbes.com

Everyday and in every way, invest in yourself. Invest in your health and education to help build your wealth. With money comes power and protection. The wealthy are protected. Build up your knowledge and money coffers. A war money war chest is your way to ditch the 9 to 5 and get out of the rat race.

Jay Leno gives advice on how to do just that.

MONEY LESSONS FROM JAY

Jay on starting out

“I wasn’t a millionaire when I started.”

“I would alternate between the two, so it was cars and hamburgers, which are actually still two of my passions.”

He started his career working for minimum wage at McDonald’s in Massachusetts. Jay also worked at a Ford dealership. He discovered the key or secret sauce (pun intended) to getting rich: Developing multiple streams of income.

Jay on working more than one job

“I always had two incomes.”

“I’d bank one, and I’d spend one.”

“I had two jobs because I realized that was the quickest way to become a millionaire.”

“When I got ‘The Tonight Show,’ I always made sure I did 150 [comedy show] gigs a year so I never had to touch the principal.”

He has worked two jobs simultaneously since he was 16.

And there you have it. Basically, if you want riches, then you have to put in the work. If you work 40 hours a week, then find a way to work 50 or 60. Gotta make that paper.

Jay on saving money

“When I was younger, I would always save the money I made working at the car dealership, and I would spend the money I made as a comedian.”

“When I started to get a bit famous, the money I was making as a comedian was way more than the money I was making at the car dealership, so I would bank that and spend the car dealership money.”

“Then I got to the point where the comedy money was, like, five times the other money, so I decided to flip it around and save the comedy money.”

“I would always spend the lesser amount of what the two were.”

Therefore, if you are working 2 jobs or more, then you bank the bigger paycheck and spend the smaller checks. Bank the bigger of the two checks and live off the other.

Forget the pundits that tell you not to save. There is value in saving. You need an emergency to help in case of job loss or illness. Life is full of hiccups. Once you have saved reasonable amount, then you start investing your surplus income.

The key is not to only save, but to also invest. Savings help you live your life to the fullest. In addition, savings can help you fund your dreams. Not having to go to the bank for a loan is an incredible feeling.

Jay on living on one salary

“I pretended as if I didn’t even have the ‘Tonight Show’ job.”

“You know, when you start making money, you get lazy. I wanted to make sure I always had that hunger, so I never looked.”

“It would go directly into a bank.”

Simply put, bank it and forget it.

Jay on patience

It took 22 years to accumulate, “a nice little nest egg.”

You heard it here folks. Building wealth takes time. In many cases, it takes a couple decades. There are no get rich quick schemes. There’s is no free lunch. There are no shortcuts. You do the work, get paid, invest the surplus incomes, and wait to earn interest.

Jay on retiring

“If you do something and it works, then keep doing it.”

You do not have to retire early unless you want to. If you are passionate about something, and can make a living doing it, then do it.

Jay on Buy-And-Hold

“The McLaren F1, I paid $800,000 for it in 1998. The last offer I got was $12 million. … The nice thing is, if you buy what you like, and it doesn’t go up in value, you still like it.”

Warren Buffet likes to buy-and-hold forever. Therefore, don’t even part with your cash, if you don’t want to keep an item to infinity and beyond. Just don’t even open your wallet.

Jay on avoiding credit cards

“I barely use credit cards.”

Words to live by. Either use credit sparingly for a purpose and get it paid off ASAP or don’t even bother using it at all.

Jay on house buying

“I didn’t buy my house until I had cash. When you own something and you don’t have to write checks every month, you’re just better off.”

I learned from James Brown, Dick Clark, Jay-Z, Oprah, JK Rowling and Michael Jackson to own what you do. You can control your earning potential and life, if you own. You can continue to make money off the things you own and control for many years to come.

Regardless, of whether or not you’re still working. You can still earn royalties from work you have done in the past. That is how the rich get richer. Earnings on top of earnings.

Jay on debt

“I don’t carry any debt. I don’t write checks at the end of the month for anything.”

“I didn’t buy anything I couldn’t afford to pay for in cash.”

“Here is the money, give me the thing, transaction over.'”

Jay hates installments, as do I. His cash only solution is what the world needs to adhere by.

I have literally saved for two years or more to purchase items or services I wanted or needed.

When I wanted Lasik, I used my flexible spending and waited about 3 years before I did the procedure. It cost between $4,000 to $5,000. And was worth every penny. Paid cash, not credit.

When I needed dental work done, I saved for 2 years. Paid cash, no installments.

Don’t buy on credit, build a fortune.

Jay on Retooling

“Since high school, I’ve always had two jobs. I worked at a McDonald’s and I worked at a car dealership. … When I was doing the Tonight Show, I’d be on the road at least two to three days a week because I thought, ‘We’ll see how long this lasts.’ ”

Do not ever get too comfortable. Things can change. Always have more than one way to earn a living.

Jay on owning

“I own everything. I own my buildings. I own my cars. That way, if it ends tomorrow, I know what I’ve got.”

His conservative money philosophy gives him peace of mind. When you are out of debt you just feel better. Take control of your finances and this too will help give you some peace of mind.

Jay on old-fashioned values

“I’m not a big splurge guy, partly because I had Depression-era parents: “They just frightened me to death, saying, ‘You gotta save every penny!'”

“It’s a little old fashioned, I suppose, but it seems to work pretty well for me.”

No impulse buying. This is the debt trap. Plan your expenses. Budget just means you plan where your money goes and it gives you permission to spend. Use it.

Jay on Taxes

“I just pay. Fine, I’ll get another job, I’ll work harder. That’s probably not very good tax advice. I don’t have money in the Cayman Islands or any of that nonsense.”

Always pay your taxes. Period!

Jay on being frugal

“McDonald’s sent me these Happy Meal coupons, so one day I’m in the McLaren and I’m going to McDonald’s. I say, ‘Give me two Happy Meals.’ And I give them the [coupons].”

“Now I look like the cheapest guy in the world driving this multimillion-dollar McLaren and I’m trying to get a free hamburger.”

“I’ve never touched a dime of my ‘Tonight Show’ money. Ever.”

He hates spending on clothes and has not touched one dime of his Tonight Show money. At one point, he was earning around $30M a year! It pays to be frugal.

So, you just avoid the mall, invest the money you would spend on clothes and start earning your way to a fortune with compound interest. Delay your gratification. Discipline is the key to wealth. Once you have it, no one can take it from you. Then you can save money to invest. Easy as pie.

Jay on Shifting Gears

“So many friends of mine, all they ever did was the TV show. When the TV show ends, suddenly their life ends, because that was their whole life. I was never that guy.”

It’s great to have hobbies and interests outside of work. See if you can turn a hobby or side gig, into an income. At the very least, have something to do after one thing ends. Remember, no idle hands.

Jay on shopping

“I’m not a big shopping guy. I’m just not interested in clothes outside of the essentials.”

“To me, it seems like a complete waste of money. I just want to have enough clothes to cover legally what parts I have to cover.”

Hear, hear! I used to like shopping. Until I didn’t. That happened once I learned I was losing a small fortune for that new purse or shoes.  Read my post How Millennial Money inspired me to start saving $13,333.06 a year for more on that topic and see how I quit shopping for good.

Jay on Fixing Things

“When you’re in a business like show business, everything is subjective. Some people think you’re funny, some people think you suck. …When something’s broken and you fix it, no one can deny it’s running.”

Very true. Always be tweaking or working toward expanding and doing better. People notice you the harder you work.

Jay on setting high standards

He, like Coco Chanel, believe in setting high standards for yourself. Chanel said, “keep your head, heels, and standards high.”

Jay learned this attitude while working at McDonald’s. A key pillar of success: You can never go too far to ensure you’re producing a great product.

He would go home every night after work and write jokes. Jay would go through hundreds with his staff and get it down to the top 20. He would record himself and then re-listen for timing. Tedious? Yes, I know. But effective. The hard work paid off.

Jay on idle hands

“I meet with the writers at about midnight or so and work until about 4:00 a.m.”

“I sleep four hours, maybe five.”

The way he saw it was, “if you have time to complain, you don’t have enough work to do.”

I am notorious for going to bed thinking of work and getting up to work. Sometimes I get up in the middle of the night to write down ideas about work. I work so much I barely have time to breathe.

I learned that from Pat Benatar who was a workaholic in the 80’s.  But guess what? She wrote hits songs for like a decade. When there are times I need a break or pick me up while working, I’ll listen to her songs Invincible, Shadows of the Night or Love is a Battlefield.

For those who may not know or remember those songs, check out the links below. Good stuff.

Jay on failure

“You learn a tremendous amount from the mistakes.”

I have learned to fail better. It makes you stronger. It also humbles you and makes you more empathetic to others.

Jay on money to blow

“So many people get to be the age I’m at now and they’ve got nothing because they just blew it all.”

“I put my money in a hammock and say, ‘You relax. I’m going to go work.’ And when I come back, I put some more money in the pile.”

It’s your money. Don’t blow it.

Jay on Life

“Life is not that complicated … if you’re kind and decent, and try to be honest, it’ll probably work out. Yeah, you’ll get screwed once in a while. I certainly have, but that’s okay … don’t dwell on it.”

Pick yourself up, dust your wallet off, and get back into the grind. Don’t rest on your laurels. Put your head down and work. Stay humble and stay hungry. Generate multiple streams of income, diversify your earnings, increase your savings, and build your wealth. Get that net worth pumping in that interest faster than Arnold Schwarzenegger did lifting weights in Pumping Iron and you will start rolling in the dough!

Just FYI: Jay is worth over $300 million dollars. Has no debt. Is a self-made millionaire. And still works at the age of 68.

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

How being an outlier can make you rich

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“Ten thousand hours is the magic number of greatness.” – Malcolm Gladwell

“I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.” – Bruce Lee

No one can arrive from being talented alone, work transforms talent into genius. – Anna Pavlova

If you’re a fan of Enter the Dragon, like me, then you know that talent and practiced skill are the difference between winning and defeat.

Bruce Lee also said Knowledge will give you power, but character respect. 

That reminds me of this saying from The Rock.

I also notice that mavericks tend to get rich.

Those willing to do more than the bare minimum. We are talking captains or titans of industry and business mavericks, that buck the trend, throw caution to the wind, and are all in.

Steve Jobs, Bill Gates, LeBron James, Phil Knight, and Walt Disney, to name a few, embody the characteristics of what it takes to dominate in one’s field.  They are outliers. If you dare to dream and be an outlier yourself, then you are in great company.

WHAT IS AN OUTLIER?

A person or thing that is atypical within a particular group, class, or category. – Merriam Webster Dictionary

Simply put, you are different than the rest. You stand out. An outlier is the proverbial diamond in the rough or needle in the haystack. The 1 out of a million.

We all know how it worked out for Aladdin in the end.

When everyone else goes right, you go left and turn down the street.

You have tunnel vision. All energy is focused on a single task until it is completed or you are an expert. The rejection of noise and naysayers are a must.

A great definition of focus is this: To follow, without halt, one aim: There’s the secret of success. – Anna Pavlova (Prima Ballerina)

WHO ARE OUTLIERS?

The more you like yourself, the less you are like anyone else, which makes you unique. – Walt Disney

We will take the examples above and expand on those individuals that have either been born great, achieved greatness, or had greatness thrust upon them. (To revise Humphrey Bogart’s famous words: Here’s looking at you, William. Shakespeare that is.)

So, who are these mavericks you say? Just keep reading.

Steve Jobs

Photo: Forbes.com

Steve Jobs was the CEO and co-founder of the most valuable brand in the world: Apple. The first ever trillion-dollar company in the entire world.  He pioneered revolutionary technologies. Thanks to his genius and willingness to dare to be different, we now have a computer in our pockets.

He decided to buck the trend and paid no dividends for Apple shareholders (this changed in 2012), as he thought that money could be better spent to expand the company.

Forbes, in 2011, estimated Jobs’ net worth to be around $6 billion to $ 7 billion dollars prior to his passing.

Bill Gates

Photo: Forbes.com

Bill Gates is a business magnate who is the founder of Microsoft. He took the road less traveled by famously dropping out of one of the most elite and prestigious universities in the world: Harvard.

Mr. Gates devoted every minute of his time to computer technology. He would read trade magazines and stay informed on the latest in tech. Becoming an expert in the field and later launching Windows in 1985. It became the top operating system for PC’s.

Forbes lists Gates’ net worth at $96B.

LeBron James

Photo: Forbes.com

LeBron James started playing basketball at a very young age. He loved the game so much that he played and practiced non-stop. By the time LeBron was 14, he had ESPN covering his high school basketball games because he was just that good.

He was drafted in 2003, to play professional basketball with the NBA. It is estimated that he spends $1.5 million dollars a year just on his health care and personal training to keep his body in the best athletic shape possible. He would go on to win the first ever championship for Cleveland. Ever. He recently built a school and is offering college scholarships to those students.

Forbes estimates James’ net worth at $440 million. That’s a lot of M’s just for going hard in the paint. It pays well to be the best.

Phil Knight

Photo: Forbes.com

Phil Knight is a business magnate and the co-founder of Nike. He ran track for the University of Oregon under the infamous track coach Bill Bowerman, with whom he co-founded Nike.  Bowerman is famous for coaching 31 Olympic athletes including the legendary Steve Prefontaine.

After attending Stanford Graduate School of Business, Knight decided to become an entrepreneur. His business plan paper became the catalyst for his company. He traveled to Japan to see about good running shoes, which would go on to become Nike.

Forbes estimates Knight’s net worth at $31B.

Walt Disney

Photo: Forbes.com

Walt Disney was a pioneer in the American animation industry. He always loved to draw. He had a paper route with a grueling and exhausting schedule as a kid, which contributed to his poor grades at school.

None the less, he continued to draw. He had $40 dollars in his pocket when he moved to CA to start his career. After, getting fired from a job in animation at one company, he decided to start his own.

People laughed at him for wanting to draw a talking mouse. An old legend states he was rejected 302 times to get financing to start Disney World. He ended getting the last laugh as Disney is the biggest and most diversified mass media and entertainment conglomerate in the world.

At the time of his death in 1966, he was estimated to have a net worth equal to $1 billion in today’s dollars (adjusting for inflation).

HOW CAN BEING AN OUTLIER MAKE YOU RICH?

Go confidently in the direction of your dreams. Live the life you have imagined. – Henry David Thoreau

People are willing to pay for unique. Something that is one of a kind. The rarer the better.

Do something so good that people can’t wait to see you.

“Make sure it’s mean so them fiends keep on coming back” –  Who Dat (Song by J. Cole)

Keep them wanting for more.

They say the riches are in niches.

Mae West wrote on taboo subjects in the 1920’s. She made a mint in real estate and oil. This is what she thought of all that hoopla she made way back when.

I believe in censorship. I made a fortune out of it. – Mae West

Figure out what you are good at and make it happen.

When you start out you have to take what you can get, but when you blow up, you can name your price.

Remember that song Back Then by Mike Jones. Yeah, it can be something like that.

GO AHEAD AND TAKE THE ROAD LESS TRAVELED

Two roads diverged in a wood, and I — I took the one less traveled by, and that has made all the difference. – Robert Frost

Many people have made a fortune off being different.

Success depends in a very large measure upon individual initiative and exertion, and cannot be achieved except by a dint of hard work.  – Anna Pavlova

Let’s see some numbers for clarity and perspective.

Only the best can become NFL players. Here is what the best can make.

Rookie Salaries in the NFL

Source: FootballNextLevel.com

Highest Paid Players in NFL

Source: Spotrac.com

These are just salaries for one profession. There are many others.

CEOs are making bank. In addition, so can authors, producers, actors, musicians, professors, doctors, and more can as you can garner success in many other fields.

How hard are you willing to work to make success happen?

Dwayne “The Rock” Johnson says success takes no less than everything you’ve got. You don’t need directions on the road to success, just point to the top and go! Here are a few more of his words of wisdom for motivation.

Financial Freedom, Financial Independence, Investing, Wealth

Mega Millions win or bust

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Here’s something to think about: How come you never see a headline like ‘Psychic Wins Lottery’? – Jay Leno

Are you feeling lucky? Well, do ya?

If so, well then playing the lotto might just be for you.

But like Katniss, the odds may not be ever in your favor.

It has about two weeks since the largest jackpot in Mega Millions history was won by a single ticket to the tune of $1.537 billion dollars!

All over the country it was Powerball and Mega Millions fever.

Everywhere I went people were talking about the lotto. Some people even tweeted about what they would do if they won.

I get it. You win the jackpot and your financial freedom. You’re on cloud nine.

However, you have to plan your escape from the rate race whether or not you win the lottery.

If you want to get rich, either by picking winning numbers or otherwise, you better learn quick how to manage a fortune.

Here’s why.

CHANCES OF WINNING

Are pretty slim.

According to Fortune magazine, the odds of winning the lottery are about one in 300 million. Considering that there are over 326 million Americans, that makes your odds quite small.

If you want to close this gap, you will have to increase your scope of numbers to play and play more often.

It’s not enough to do the kids birthdays or your anniversary. Going to have to get creative. You need the locker combination to your high school locker, your kids Xbox password, your great-aunt’s wedding date, and your first love’s old address. You know, something like that.

But all jokes aside, you will have to increase your range of numbers to increase your odds of winning.

In addition, you will have to play more often.

It has been well-documented that people who win the lottery once are likely to win it again.

The problem with this is that you also increase the amount of money you lose while playing the game.

LOTTERY WINNERS GO BROKE

Get rich or die tryin’. – 50 cent  

Did you know a high percentage of lottery winners end up broke? According to the National Endowment for Financial Education, 70 percent of lottery winners go broke.

I have a theory.

If you are unable to manage balancing your check book with $1k, then it is nearly impossible to do it with $1B.

I feel like it is.

But, if you saw  Justin Timberlake in The Social Network, you know he says, “you know what is cool? A billion dollars.”

They say the first million is the hardest. Well, try wrapping your head around a billion!

Even billionaire T. Boone Pickens thinks that it is too!

That’s a whole lot more zeroes you are working with. If you don’t know what PEMDAS stands for (Please Excuse My Dear Aunt Sally), you are in trouble.

You must first learn the rules of money, if you are to win the game. See my posts for more on how to build up your wealth knowledge bank.

Forget casinos, bet on yourself

The six ways to get rich

Money Lessons I learned from Scrooge McDuck

How Millennial Money inspire me to start saving $13,333.06 a year

STAY GROUNDED

“Using money you haven’t earned to buy things you don’t need to impress people you don’t like” – Robert Quillen

I have seen too many lottery winners go bankrupt. You win all that money just to go back to being broke! No, thanks.

Forget your friends and family telling you to spend. Do not inflate your lifestyle and then upgrade it even more after moving to that gated community in Beverly Hills. You do not need to outspend your neighbors.

3 Rich Habits of Millionaires

You can still drive a Honda. The kids can still get jobs. If you think that it is taking away an opportunity for someone else to work for a needed paycheck, then let junior volunteer.

That was the advice Fran gave Mr. Sheffield in The Nanny.   He wanted to teach his daughter about responsibility and the value of money. So, in S02E21 Maggie became a candy striper at a hospital.  Great advice.

Fun Fact: In the S02E08 of Gilmore Girls,  Rory gets in trouble at school. It just so happens that one of her schoolmates in that episode was none other than Mr. Sheffield’s youngest, Grace, played by actress Madeline Zima. You can see her in the blue sweater walking behind Rory in this clip.

My advice to anyone who comes into large sums of money whether by inheritance, large windfall, bonus, or lottery is to stay humble.

Read my posts for lessons on eating humble pie:

How Dave Grohl turned passion into profits

Money Lessons I learned from Aesop’s The Ants and the Grasshopper

Money and Life Lessons I learned from Mr. T

Life Lessons I learned from The Warriors

The Greatest Assets are people

HOW TO MANAGE ALL THAT MONEY

You have to ask yourself after winning the lottery: How are you planning to manage all that cash?

You need a team to help you manage all that money. A circle of trust, like in Meet the Fockers.

I have a few suggestions.

  • Set up a trust to stay anonymous
  • Get a financial advisor
  • Hire an intermediary to answer requests for money on your behalf
  • Set a daily, monthly, annual spending limit
  • Hire an attorney
  • Take the lump sum
  • Create your own annuity with a spending budget
  • Hire a CPA
  • Learn how to manage money
  • Understand your tax liability

BUY STOCKS INSTEAD OF LOTTERY TICKETS

I would much prefer people spend their money wisely than to bet it on chance.

You could invest your money instead of throwing it down on the roulette table. If you are want to be a part owner of Caesar’s Palace, instead of merely placing bets at one, you can buy REIT’s or mutual funds.

Even better, you can buy index funds that includes hundreds of stocks that track a benchmark such as the S&P 500.

Every dollar you invest can possibly be turned into two or three dollars.

Source: familyfinancefavs.com

Not sure what all this is? No problem. Go down to your local library and ask for books on personal finance. You can also look up any words you are unfamiliar with online.

In addition, you can read blogs, listen to podcasts, join investing clubs, get a job in banking, take a few online finance courses, or ask friends and family for book recommendations.

Many books offer book recommendations in the appendix.

All you have to do is be willing to do some homework.

Trust me, it’s worth it.

When your one-day sitting on a beach in Hawaii, sipping cocktails and able to get up at noon just because.

Your future self will thank you.

 

Financial Independence, Saving, Wealth

Forget casinos, bet on yourself

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“There is a gigantic difference between earning a great deal of money and being rich.” —Marlene Dietrich

You bet there is. I am a firm believer in being rich in assets. Those are the things that will help you build wealth. They attract money to you.

I once read a wealthy gentleman online state he wants to be cash poor and asset rich.

Basically, he is looking to have more assets than a fat paycheck. He knows money can slip through your fingers. Assets do not easily slip away.

The bigger the paycheck means the higher the taxes you pay Uncle Sam. In contrast, assets usually go up in value and earn interest over time. Capital gains tax is lower than income taxes.

So, if you want to bet the farm, then put it all on staying in the black and not the red.

CASINOS ARE NOT WHERE THE WEALTHY ARE

I know you see all the television shows and advertisements telling you to go to Vegas. However, that is just a way to get you there to spend money. Most wealthy folks are not rolling the dice with their finances.

Casinos are designed to separate you from your money. Just like subscriptions. Read my posts Do not cash out your retirement accounts and  America is the land of subscriptions.

I have read enough blogs and books to know that you must hang around like-minded people.

Motivational speaker Jim Rohn said, “You’re the average of the five people spend the most time with.” And so is your net worth.

We are influenced by those we associate with. These relationships over time can have a profound effect on our lives.

Therefore, you must choose wisely when it comes to friends, business partners, and spouses.

The wealthy are about building assets. Therefore, you are not likely to see them at the casino at four o’clock on a Monday afternoon. They are out volunteering, networking, and closing business deals.

HOW DO CASINOS MAKE MONEY

A Canadian study stated that 75% of customers provide only 4% of casino revenues. It’s the habitual gambler that keeps the casino in business.

If you ever saw Mark Wahlberg in The Gambler, then you know who I’m talking about.

Computer gaming and slot machines are all the rage when it comes to gambling.

Most players lose more than they win. I don’t like those odds. Therefore, I do not gamble.

That means people with gambling addictions are the most vulnerable. Or you can become addicted after getting a taste of winning like in the film 21.

Slot machines are, like credit, addictive. Casinos actually can make you poorer. This exacerbates inequality.

CASINOS WILL HELP THE ECONOMY RIGHT?

Not so fast. Let’s take a look at Atlantic City.

Back in 1977, casino advocates made promises that casinos would help give the economy a boost by providing jobs. Don’t get me wrong, they did provide jobs. However, the surrounding local business owners did not get the foot traffic coming into the casinos.

The money that casinos make, stays with them.

Many local businesses had to close up shop. The retail economy collapsed all around Atlantic Avenue in New Jersey. Several casinos have actually shut down since 2014. That means jobs were lost not gained.

HOW TO BET ON YOURSELF

Devote all your time, money, and resources into yourself.

Use your hard earned money to invest in your education, training, and business.

When I was watching David Tutera plan those weddings on television, I learned he wasn’t doing this for, in the illustrious words of Sia, cheap thrills. He did it for a living. And earned good enough money to have a nice home, wardrobe, and chauffeur.

David started party planning and entertaining over 20 years ago. He just invested his time and money into himself. Eventually, he found what he was good at and then he just stuck with it.

There are countless tales of people out there that have found a skill they are good at, practiced and developed it, then went out and started earning a living at it.

Read up on some biographies. See for yourself. I recommend reading anyone you have an interest in or trailblazers such as Gloria Steinem, Arnold Schwarzenegger, Franklin Roosevelt, Charlie Chaplin, Oprah Winfrey, Winston Churchill, or Nelson Mandela.

WHAT CAN YOU DO NOW?

First, I feel people need to assess their situation. For example, when I was growing up I noticed that a lot of kids were not very into studying and really focused on their academics. However, many wealthy people I saw on television always advocated for education.

I figured, why not listen to other successful people?

I started studying and reading more. Especially, thanks to shows like Reading Rainbow hosted by Star Trek’s Next Generation alum LaVar Burton. I would go to the Book Mobile and get tons of books.

Much of my focus was less on having fun and more on learning. Saturday mornings were spent reading on my parent’s couch. Sunday afternoons were spent reading the comics and learning new things and vocabulary words.

I invested lots of time and money into my education and health.

And all of this paid off in spades.

I have four retirement accounts, a home, a car (no monthly payment), and save and invest upwards of 50% of my income.

It took me over a decade to build those things. But it all started with getting an education.

Sure, college helped, but it was sheer grit, discipline and determination that got me where I am today.

THE FUTURE MR. OR MRS. FI

If you want to have a chance at financial independence, I suggest you do the following:

  • Focus on learning more about money and finance
  • Stay away from debt
  • Get a good education (the best you can afford)
  • Pay for cars and appliances in cash
  • Opt for a 15-year mortgage
  • Stay away from vices (narcotics, alcohol, gambling, shopping)
  • Hang around like-minded people
  • Save 20% or more of your income
  • Invest 15% or more of your income

If you can do at least two of the items listed here, you have got a shot at making it into the top 10% of households and becoming financially independent.

Financial Freedom, Financial Independence, Retirement, Saving, Wealth

How do you play with FIRE?

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“It is so liberating to really know what I want, what truly makes me happy, what I will not tolerate. I have learned that it is no one else’s job to take care of me but me.” – Beyoncé

Many of you may have heard of the FIRE movement (financial independence, retire early). However, what some of you may not know is that there are different ways to FIRE.

Let’s explore some of those ways shall we.

WHAT IS FIRE?

According to Camp Fire Finance, the elevator pitch for FIRE is this, “When your investments generate enough money to cover your annual expenses you’re financially independent (FI). At that point work is optional and you can retire early (RE) if you want to.”

Basically, you have more than enough money coming in to stop working. Usually, this requires anywhere from $1 million to $5 million dollars depending on what you want or need to spend to maintain your lifestyle or that of the one you dream of having.

For example, if you decide you want to withdraw at least $80,000 a year, you would need to have a $2-million-dollar portfolio.

HOW DO YOU BUILD A $2 MILLION DOLLAR PORTFOLIO?

“Don’t focus on getting to $1 million; focus on getting to $2 million.” – Arnold Schwarzenegger

I heard that little gem when Mr. Schwarzenegger was doing a radio interview.

So, one word: invest.

Property, stocks, art, and stamps can all help you build your net worth.

“Market crashes are the best times to buy,” he said. “When Walmart has a sale, everybody would run in to buy. But when the stock market has a sale, or the real estate market has a sale, everybody runs away. That’s why there’s a difference between rich and poor today because they don’t know a good thing when they see one.” – Robert Kiyosaki quoted from a MarketWatch interview

Do not focus on your income; focus on your net worth.

Earning a high income means nothing, if you spend it all. If you make $85,000, but spend $86,000 you’re in the red. You can blow through just about any paycheck.

PURSUIT OF LIFE, LIBERTY, HAPPINESS AND FINANCIAL FREEDOM

The pursuit of financial freedom takes work and time. I thought this post from Apathy Ends, hit the nail on the financial head on why people are not rich, yet. See my post on Patience is the key to wealth.

I will never forget that episode of America’s Next Top Model (ANTM) when Ms. J was teaching the girls how to walk down the runway. He was fierce and determined.  What he got from the girls was gentle and undetermined or undefined and lazy.

He commented to them, while slapping his hands together, with one palm face up against the other hand palm down for emphasis: “I want you to walk like you’re selling it and the rent is due tomorrow.”

I could think of no better way to tell someone that is how you approach your money and your life’s work. Either be all in or don’t do it at all. Passion is what separates the have’s from the have not’s. And in that case, it was a $100,000 prize and modeling contract.

Get a financial education. Learn all you can about money. Make a plan or a budget for your money, but make it sexy. I know for some people talking about interest rates puts them to sleep, but how about we think of the subject differently and come at it from another angle.

I went to a meetup in DC and heard J. Money of BudgetsareSexy say this, “Do you want to learn how to balance a check book? Boring. Or do you want to learn how to save a million dollars?” WHAT?!!!

Did you also know reducing your 401(k) investment fee by 1% can provide you with 10 years of income? Shocking? Yes, I know. I can teach you how to save $1 million and keep $100,000!

Now, those things sound sexy and exciting. Yes,  please tell me more.

Once you have a question. Start looking for answers.

THE RULE OF 25

“I can never be safe; I always try and go against the grain. As soon as I accomplish one thing, I just set a higher goal. That’s how I’ve gotten to where I am.” – Beyoncé

If your annual expenses are $55,000 a year, then you need $1.375 million to retire (55,000 x 25) and then this should last you for the next 25 years.

The formula used to calculate your 25 years of expenses is this (expenses x 25 years).

Estimate your FIRE number.

You want more money to retire on? Like Beyoncé says, set a higher goal.

For $100,000 in income, you would need a $2.5-million-dollar portfolio to generate that kind of cash.

See chart.

Source: Camp Fire Finance 

THE RULE OF 300

Say your monthly expenses are $3,500, then you need $1.05 million to retire (3,500 x 300) and that should last you for the next 25 years.

As you can see, it is similar to the Rule of 25. It only differs slightly in we use monthly expenses versus annual expenses in this calculation.

Source: Four Percent Rule

THE FOUR PERCENT RULE

The 4% rule refers to your withdrawal rate: the annual percentage amount you can safely withdraw from your investment portfolio when you retire.

Therefore, if you want to withdraw $200,000, then you need a $5-million-dollar portfolio.

Source: Camp Fire Finance

THE THREE PERCENT RULE

“Keep your feet on the ground and keep reaching for the stars.” – Casey Kasem

The 3% rule refers to your withdrawal rate: the annual percentage amount you can safely withdraw from your investment portfolio when you retire.

This allows you to touch your interest earned at a slower pace. Since, you are withdrawing 3% instead of 4%. Meaning your draw down the principal more slowly, if ever. The more you have squirreled away and the less you take, you may not even touch the principal at all.

I know that is really shooting for the stars, but that really is the goal. You never want to touch principal. That way, you live only off the interest forever!

I got this chart from doing another online search and the best I came across was from the blog Financially Alert.

Source: Financially Alert 

LEVELS OF WEALTH

Only you can decide how much money is enough. However, if we go by Rockefeller, enough is always a little more. Basically, how much money is enough?

For purposes of simplicity, we will use the examples of enough money given by billionaire Mark Cuban.

Mark Cuban on enough money:

“‘Enough’ is what it takes to not worry about the bills.”

“‘A lot’ is enough that you never have to worry about working again.”

“‘F you’ money means you can rent a jet to go wherever you want, whenever you want, and no party is out of reach.”

“‘F everyone’ money means you can have your favorite band in your backyard, not care how much it costs, and lend them your jet to get there.”

We’re not talking about rich; talking about wealthy. Chris Rock once said, “Shaquille O’Neal is rich. The guy who pays his salary is wealthy.” He also said comfort is the poison. Too much of it can slow down your progress on the road to wealth. All I mean is to stay hungry. I’m just saying there are different levels of wealth.

FIRE IT UP

“Focus on all four of your net worth factors: increasing your income, increasing your savings, increasing your investment returns, and decreasing your cost of living by simplifying your lifestyle.” – T. Harv Eker

Simple math can help you retire rich.

Unfortunately, many people think of math as a foreign language and say it’s too hard to learn.

In my experience, to build wealth you need to know addition, subtraction, division, and multiplication. And that’s about it.

Why FIRE AT ALL?

More control and satisfaction over how you spend your time and money. Finding something you love to do and are passionate about is life changing and fulfilling. What you want is…FREEDOM. Waste less money and work with what you’ve got. Do more with what you have.

What do you want out of life? Write it down. Go seek answers. They say seek and you shall find.

According to Mr. Money Mustache, you should focus more on you than your bank account. Get wiser and healthier so you can increase your probability to get wealthier. My favorite quote of his is this: “Salads and barbells every day.” Become your best self with hard work, dedication, and consistency. Be the Boss.

READY, AIM…FIRE!!!

According to an article by Physician on Fire (POF), called What is fatFIRE?, a Facebook group defined FIRE as the following:

FIRE = Financial Independence. Retire Early.

leanFIRE = FIRE on a shoestring budget.

fatFIRE = FIRE on a generous budget.

Most aspiring to fatFIRE have a target of $2.5 Million or more or the equivalent annual budget of $100,000 or more based on a 4% withdrawal rate.

I found a breakdown of the terms financially speaking on Miniafi on the difference between lean and fat FIRE under the title So Many Terms!

I break it down like this:

LEAN FIRE = $1 million dollar or less portfolio

FIRE = $1.25 to 2-million-dollar portfolio

FAT FIRE = $2.5 million dollar or more portfolio

FIRE is about having enough passive income flows to never work again or to decrease the amount of time you spend doing work you don’t want to do and increasing it on the work you do want to do.