Worry is the interest paid to those who borrow trouble. –
George Washington
Finance it! That should be slapped on bumper stickers across
the country.
There are now loans for just about anything you can think
of. Whatever your heart desires, you can finance. Almost.
My father would say that people need to learn discipline as
they want to do every whimsical little thing that comes to mind and this can
cause trouble in your life.
I learned at a young age that trying to get your little
hands on everything you crave is a gateway to higher levels of debt and
spending.
It starts with one video game and then balloons to buying
the console, accessories, new games every other week, and monthly subscriptions
to gaming magazines. That quickly escalates to $1,000 iPhones, $2,000 MacBook’s
and flying first class everywhere. Even if it is drivable and only a few states
away.
How is all this lifestyle creep paid for?
With plastic.
After working at a federal credit union, I got the inside
peek behind the financial curtain into many strangers lives.
Some people are clinging to their middle-class status like
the ones they had in their childhood upbringing, while others are dangling over
the financial edge and many more have fallen over the financial precipice
completely.
Financial institutions knowing this fact, as wages have been
stagnating since about 1979, are all too eager to fill that gap in earnings
with loans.
Let’s find out what type of debt is out there awaiting
consumers that are not financially savvy enough to avoid them or are left with
few alternatives to avoid them in the first place.
NO CASH, NO PROBLEM
Quick to borrow is
always slow to pay. – Proverb
How many times have you heard commercials that say your job
is your credit? Get real. Your credit is your credit.
Miss enough payments and that job means nothing. They will
repossess anything.
I saw this up close and personal at the credit union. I saw
cars getting repossessed, families stressed out and on the edge of a financial
cliff, and those with bad credit had it the worst of the lot.
Is your credit score too low or in the 500’s? Forget about
it. Either you will not be able to borrow or it will be at interest rates so
high you will be paying off that sweater you bought for your kid’s 3rd
birthday when your kid goes off to college.
Do not be fooled into thinking companies are being so nice
to give you this product for low monthly payments. That low monthly payment of
$42 over 24 months is still over $1,000!
If you must borrow, get those scores up. That way you pay
less interest.
IS IT FOR SALE?
Of course, it is! Everything is for sale. And its pricey
too.
“A business that makes
nothing but money is a poor business.” – Henry Ford
They will let you subscribe to just about anything, for a
fee. Much unlike this blog, which you can subscribe to for free, you have to
pay for anything you deem necessary or desired for your life.
Just because it is for sale does not mean you are not
shelling out big bucks for it. Case in point, if an item is on sale for 25%,
then you still have to pay 75% to take the item home with you.
I say skip the for sale signs and racks and focus on only
buying quality products that you need and truly want, but that you can actually
afford.
BUY NOW, PAY LATER
As an individual who
undertakes to live by borrowing, soon finds his original means devoured by
interest, and next to no one left to borrow from – so must it be with a
government. – Abraham Lincoln
This is what I feel is the old bait and switch. Sure, you
can finance it now and pay later, but later is going to be a long time and it’s
going to cost you…A lot.
I say avoid paying interest and forever and a day.
No one ever went broke
underestimating the taste of the American public. – H. L. Mencken
Over the years, I have started noticing more and more that
not only is everything for sale, but it is able to be financed.
What has been really glaring has been the new loans that
have crept up and put out in the main stream for the last 10-15 years.
What loans am I talking about?
Holiday Loans (for Christmas Presents)
Vacation Loans (finance that cruise)
Internship Loans (finance additional training
along with college tuition)
Summer Loans (for the gap between Fall and
Spring college semester)
Care Credit (healthcare financing)
Hurricane Loans (National Disaster Loans)
Government Assistance Loans (Government shutdown
loans)
That’s right. If you have never heard of some of these loans
listed above, that is because they are not often advertised except during
certain economic times or periods or places such as college campuses or certain
banks.
Do you really want to finance Christmas?
You take out a loan for $1200. You have 12 months to pay it
back with interest. The time you were supposed to be saving (the
previous 11 months) you were repaying this loan. That leaves you for no funds
for the following Christmas. You go to the bank and they say, “we have this
loan that could help you out.” Just skip it.
Better yet, have the family pull names out of a hat and just
buy a gift for that one person. Save a
fortune. Your bank account will thank you.
The ones that really get me steaming are the National Disaster and Government assistance loans. People are in a vulnerable position and you want them to go into debt! More debt! Really?!!
No one plans for national disasters. You can plan your
finances, but some things are not all foreseen.
For instance, some people lost their homes during the most recent
hurricanes in Puerto Rico and Texas. The insurance companies were saying they
had to pay a deductible to get their home rebuilt. This was to the tune of
$5,000! Most people don’t just have that type of money laying around.
Borrowing will only put you deeper into debt and unable to
save when an emergency like this happens.
The worst by far is government assistance loans for the
government shutdown. Folks would not need a loan if they could save. Now, you
want more of their money, which they don’t even have? What sense does that
make.
I say focus on building up the rainy day fund so you are not
caught out in the financial rain without a savings umbrella.
HOW MUCH IS THAT LEXUS IN THE WINDOW?
“A business that
tries to save money by not advertising, is like a man who tries to save time by
stopping his watch.” – Henry Ford
It’s all about advertising.
That’s why so many people are pulling up in Target parking
lots wearing Gucci boots, carrying a Louis Vuitton purse, all the while texting
on an iPhone on to buy $10 socks that are marked down and dare I say it On Sale.
I see more folks driving luxury vehicles now than I have
ever seen in my life.
What happened to just needing to get from Point A to B?
Please do not let the smell of new leather cause you to have
empty pockets. No car or gadget is worth going into debt over. Or worse yet,
going broke.
On one television show, I saw a mother of two young kids
trying to see if she could come up with the rationale to finance a $100,000
car! Do not do that. It is not worth it.
Sell to the masses, eat
with the classes. – Henry Ford
It has been often stated, if you sell to the classes, you’ll
dine with the masses. But if you’ll sell to the masses, you’ll dine with the
classes.
Another spin on this quote is this one here.
Sell to the masses, eat with the classes. Sell the classes,
go belly up!” – John F. Savage
It is said the majority of people rent this world from a
minority of people. That is how it goes. Unless you change the status quo.
Become an owner. Keep more of your money and always invest.
They make it all too easy for you to sign on the dotted line
and then have to fork over 25% of your paycheck just to pay for your items.
I want to pay for the item, get it handed to me, then
transaction over. Installments suck!
I say save for what you want.
Not sure where to start.
Just start small. Even saving $5 a week just to get in the
habit of saving is better than doing nothing and having no savings at all.
So, please do not sign on the dotted line. Do everything you
can to save. It will be your safety net should real disaster strike because
when it does it’s like lightning. It usually strikes fast and more than once.
Play good defense and save. Surround your financial house
with savings. Do not get tackled because you left your wallet open, figuratively
speaking.
Earn the spotlight on your own merits. You’ll feel better. – Serena
I was reading a book when I decided to take a walk down memory lane and watch Gossip Girl on Netflix.
For those of you that may not know or remember the show, Gossip Girl was a show about privileged American socialite teens at an elite and exclusive academic prep school in Manhattan’s Upper East Side (UES); whose every move was texted out through an eblast via tips to an anonymous site called Gossip Girl.
What is Gossip Girl and what it does?
What’s the difference between gossip and scandal? So glad you asked, UES Forever. Anyone can commit a minor indiscretion and generate a day’s worth of buzz. But in order for gossip to birth a true scandal, it requires the right person to be in the wrong place. – Gossip Girl
Live in such a way that you would not be ashamed to sell your parrot to the town gossip. – Will Rogers (1879-1935)
The show was on the WB, then the CW, and aired from September 19, 2007 through December 17, 2012. The show was narrated by Kristen Bell (as Gossip Girl). Scandals, scoops, and hemlines run amuck. The show may have had a serious lack of ethics, but it did make for some interesting television.
Gossip Girl is based on a popular book series of the same name written by Cecily von Ziegesar. The adapted television series in 2007 came about from the book series she started in 2002.
Gossip Girl will always have a special place in my heart.
It was in 2007 that I heard this line from the show: You know, Dad, there’s this thing called MySpace where you can post all of this information online. Save some trees, have a blog. – Dan Humphrey
It peaked my interest in blogging. Then, I started this one, Greenbacks Magnet, 9 years later.
Some of the dialogue may be a bit harsh in its tone and delivery, but there was some truth behind some of their words.
Gossip Girl likes to keep things classy and somewhat true. – Serena van der Woodsen played by Blake Lively
Serena is so grateful because she likes to see the best in people. I like to see the truth. – Blair
So, let’s get right into it.
MEET THE MONEY PLAYERS
You got me thinking. If my class is so important to you maybe I ought to make it worth your while. So for the next seven weeks it’s fewer models and martinis, more flow charts and footnotes.– Colin Forrestor played by Sam Page
Last month, on Thanksgiving Day, I decided to watch some Thanksgiving themed movies and television episodes. And I settled on watching Gossip Girl.
The series follows Upper East Siders throughout their never ending drama filled lives that is often self-inflicted. It Girl Serena van der Woodsen is centered around it all and is the star of the show. Her friends and family make up the rest of the cast.
One of my favorite scenes is actually from the first episode of the series. It was a face-off that was incredible between two young women and it set the tone for the show.
The 4 top-billed (in my opinion) and main cast includes the following:
Blake Lively as Serena van der Woodsen AKA S
Leighton Meester as Blair Waldorf AKA B
Chace Crawford as Nate Archibald AKA Golden Boy
Ed Westwick as Chuck Bass Always
If you pay close attention to their conversations, they are dropping some serious money gems.
These little nuggets of life and money wisdom, when interpreted and applied correctly, could transform lives and bank balances.
Let’s begin.
WORK FOR WHAT YOU WANT
Never in my 16,982 hours of schooling have I ever been sentenced to detention. – Blair
Throughout the show, the main cast is always discussing their futures and going to college.
It was almost incessant in the amount of pretentious ponderings of how to be sartorially correct while interviewing for a top spot as a Yalie. And yes, that is a quite accurate assessment of the character known as Blair on the show.
Blair would look and act so innocent and demure like she couldn’t melt butter, but her stare and looks were as cold as ice. Very entertaining.
Here she goes on one of her tirades.
I am so a better fit for Yale than that Rory. – Blair
Now, she’s belittling and disparaging the character of one of my favorite shows Gilmore Girls.
But enough of the $50 words. Let’s talk about the rest of the show.
They attend the fictitious Constance Billard School for Girls and St. Jude School for Boys. In addition, throughout the show you may hear them casually drop names of other schools.
In the Gossip Girl (book series) — it contains the line “two little Sacred Heart girls in their cute red and white checked pinafores were walking an enormous black Rottweiler” on page 86 in the first novel of the series.
Many of the parents are part of high-society and are on boards of prestigious organizations, own businesses, and live in penthouses. They go to great parties, opening nights to the ballet, and fashion week.
You get the impression that these kids know to base their lives around money and making sure to earn piles of it is a must.
They are tireless paragons of poshness. The parties are lavish, the lifestyle is glamorous, and the fashion is couture and expensive. Makes for a great show.
What I noticed was that everyone in one way or another was working hard at trying to make their own way in the world apart from their rich and or famous families.
They chased their dreams relentlessly. Like a boss.
And made huge sacrifices to get what they wanted.
Great leaders only need three hours of sleep! – Blair
They worked, started or interned at major businesses, magazines, for fashion designers, newspapers, literary writers, politicians, and fashion houses.
You’re not likely to get or keep those gigs for long if you are playing around.
“When and if we end up together, it has to be as equals.” – Blair
Yes, indeed. Be independent.
BET ON SELF
Here’s my advice: Have a little faith, and if that doesn’t work, have a lot of mimosas.– Blair in the Wild Brunch Season 1 Episode 2
My family is really into waffles. – Jenny Humphrey sister of Dan Humphrey played by Taylor Momsen
If you want something, go get it. Have some faith in yourself. And good food and conversation go together. I have learned a lot about people when having lunch with them. It’s a great way to build relationships. My favorite meal is brunch. I too love waffles!
Their membership is so restricted, it makes Soho House look like a halfway house. – Blair
They say of you want to increase membership to something then increase the selection criteria.
The Ivy League have made this an art form. As you see on this show, even the wealthy were concerned about their college admissions. There was even some talk of donations to a school to get in. In the end, you see deep down, we all have our insecurities. Accept it, and move on.
I have learned that I am no better than anybody else, but I am always just as good.
KNOW YOUR WORTH
You deserve someone who would move mountains for you if he had to. – Blair to Serena
Normal people don’t get an endless number of chances, no matter the situation. That’s just you. – Dan to Serena
I have heard people say that well-behaved women seldom make history. At least that is what Eleanor Roosevelt said. I guess you can take her word for it as her husband FDR made history.
“I have an idea for you: quit. Your boss is a bi*ch. Let’s go to lunch.”
I have actually done just that very thing. I quit a bad job. Got a better job. And never looked back.
“I’m not a stop along the way, I’m a destination.” – Blair
That line could be someone’s Bumble Bee bio. I call it sophisticated confidence.
“He ended up treating me like something he owned instead of something he earned.” -Blair
You’re worth more than a guest lecture fee, everyone knows that. – Dan to Serena
A man who own a tuxedo shows that he has the means and can afford to provide for his family – Blair in Belles Du Jour Season 4 Episode 1
One of my favorite lines from the show comes from none other than Nate Archibald while talking to Chuck Bass.
Excuse me? Where’s my boy? “Seal the deal.” “Tap that a$$.” “Money marries bigger money.”
Wow. Money marries bigger money. That’s kind of cold, but ok.
I could care less about his Bassets and probably he’s filtering his assets through some foreign government so I won’t know. – Blair on Chuck Bass.
S: So you hired escorts? B, you couldn’t just tell your mom you don’t have friends at NYU?
B: Prostitutes are people, too, and they have a lot of disposable income. – Serena and Blair
Yes, people are focused on income, A LOT.
Take a cue from them and subscribe to The Wall Street Journal, pick up Fortune, TIME, instead of a gossip magazine and follow financial experts on Twitter. Become a devoted student of money, and you can master the science of getting rich.
Jane Austen also so eloquently puts how much emphasis people put on income in two of her novels. And also how to treat others with or without money.
FOR THE LOVE OF HEADBANDS
I know you disapprove of me, but can’t you at least do so in a tuxedo?– Lily van der Woodsen played by Kelly Rutherford
This show loves their tuxedos. And themed parties. Masquerade. Kiss on the Lips. You name it.
It is often said when you look good, you feel good. Well, I concur. You feel more confident as well.
I remember going to a job interview where some folks didn’t take it seriously. I wore a nice dress and some of the men wore suits while others wore jeans.
After I got hired and when I later started the job, I noticed on my first day that all the people that got hired were the ones that were well-dressed.
If you know one thing about GG, you know it’s all about the fashion.
The well-heeled wear nice heels. Blair was known for her love of headbands. People were always giving her grief about it.
Your era is over, and so is that headband. – Jenny
No headbands in college, okay? – Dan to Blair
Et tu, Dan?
SvdW was known for her fantastic sense of style.
And she had more loose interpretation of a school uniform than any person on the planet. The Tie Goddess. See for yourself.
EDUCATION IS PRICELESS AND THE PRICE OF INTELLECTUALISM
S:Wow, and I thought college would be different from high school.
B:Who would want that? – Serena and Blair
These kids were not just applying to any colleges, but the Ivy League. They wanted to be HYPsters (Harvard, Yale, Princeton) or the like. What Blair called the Holy Trinity of colleges. Which are all expensive colleges. We are talking $50,000 USD per year or more.
It was a constant stressor of theirs during the shows first four seasons. Case in point, here is a list of the schools they were trying to get into or that their parents attended.
For instance, Serena wanted to go to Brown and that college and Harvard are where her parents went. Blair wanted Yale and Nate was considering UCLA over Dartmouth like his father. There was also talk of Columbia, Georgetown, and NYU on the show.
It just goes to show you that getting an education is still mighty important.
Serena van der Woodsen or SvdW for short – Brown University, Columbia University
SvdW parents attended – Harvard University and Brown University
Fun show Fact: SvdW dropped out of Brown at the last minute because she wanted to find herself and she felt that moving away to another city wouldn’t help her achieve that. The classic one-year hiatus otherwise known as the infamous gap year before entering college.
This is what Blair had to say to her about going there.
Your deductive-reasoning skills are perfect for a place like Brown. An enclave of trustafarians and children of celebrities who major in drum circles and semiotics, whatever that is. I can’t wait for you to come home next Thanksgiving a militant veganista, anemic and proud. – Blair
It left me speechless.
Blair Waldorf – Yale University, Columbia University, New York University (NYU), NYU – Tisch School of the Arts
Nate Archibald – Columbia University, Dartmouth
Chuck Bass – Columbia University
Dan Humphrey AKA Lonely Boy played by Penn Badgley – NYU
Vanessa Abrams played by Jessica Szohr – NYU
Eric van der Woodsen played by Connor Paolo – Sarah Lawrence
Some character’s shots at the sheepskin, in my opinion, and other honorable college mentions include:
I’m telling you, I learned everything I know about women from Judy Blume’s Forever. – Dan
According to List Challenges, “Gossip Girl” (2007 – 2012) : here is a listing of some of the favorite authors and books of the characters or simply the ones mentioned by them and showed along these 6 seasons, books studied in university, etc.
Many characters also name dropped or were caught reading well-known books by famous authors.
I love the Snowflake Ball. It reminds me of Anna Karenina, only by Anna Wintour. – Serena
Maybe if we become famous writers one day, they’ll publish [our letters] after we die, like Sartre and de Beauvoir. – Vanessa
They also liked to travel extensively. Especially, in Europe such as Paris, France. In addition, they speak more than one language such as French while in Paris.
Elliott’s the perfect mix of smart and fun: He speaks three languages, but he has a subscription to People magazine. – Eric
List of titles includes:
House of Mirth by Edith Wharton – read by Juliet Sharp played by Katie Cassidy
The Lorax by Dr. Suess – Mentioned by Dan
Colette by Gigi – Blair read this on a bench in Paris
Jane Austen books – Pride and Prejudice, Emma, Mansfield Park, Northanger Abbey, Persuasion
Charles Dickens novels – A Tale of Two Cities, A Christmas Carol, Oliver Twist, Les Grandes Espérances
C. S. Lewis books – The Chronicles of Narnia, Alice’s Adventures in Wonderland
William Shakespeare – Othello, Romeo and Juliet, MacBeth, Henry V, Hamlet, King Lear
A few other famous works, Rabbit Redux by John Updike, Cyrano De Bergerac by Edmond Rostand, Les Liaisons Dangereuses, The Crucible (Arthur Miller), Wuthering Heights (Emily Bronte), I Know Why the Caged Bird Sings by Dr. Maya Angelou, The Art of War, The Crucible (Arthur Miller), Madame Bovary, The Old Man and the Sea (Ernest Hemingway), The Beautiful and Damned (F. Scott Fitzgerald), Cinderella (Charles Perrault),The Canterbury Tales by Geoffrey Chaucer, Faust, In Cold Blood by Truman Capote, Anna Karenina by Tolstoy, Walden, The Great Gatsby (F. Scott Fitzgerald), and Beloved by Toni Morrison.
There, I have just given you a reading list that every good high school student or Ivy League hopeful should have. Some of which I have read. My favorite author is Jane Austen. A close second is Louisa May Alcott, as I just love Little Women and the 1994 film starring Winona Ryder. But Austen’s Sense and Sensibility (1995) just amazes me every time. That along with Pride and Prejudice (2005) and Emma (1996).
The rich seem to be highly educated. They also tend to get ahead in life. Therefore, be well-read.
However, these trust fund babies did end up leaving college and higher education after a while to set out for their own fortunes in the real world.
For people like us a college degree is just an accessory. – Chuck
So, this too let’s you know that it is not always about what you know, but who you know.
You never know who you may run into at expensive coffee shops, libraries, restaurants, college, and hotels like the Palace in New York.
So, go build up those relationships.
MONEY AND RELATIONSHIPS
Just to clarify, I do think you deserve to be with someone who makes you happy. – Dan
True words indeed.
I read, like, five self-help blogs on how to turn friends into lovers. Yes, they used that word. – Dan
Come on, Cece’s heart pumps secrets and gin. – Dan
And there was lots of secrets on this show. Relationships and secrets were everywhere.
Sex is meaningful, like art. And you don’t rush art.– Dan
All great things are built or done slowly.
If you watched this show, then you may remember the season 3 episode with Lady Gaga. Here is her take on relationships that is so Blair Waldorf.
“Some women choose to follow men, and some women choose to follow their dreams. If you’re wondering which way to go, remember that your career will never wake up and tell you that it doesn’t love you anymore.” ― Lady Gaga
Marriage
Settling down means death. Less sex, more silence. – Blair on marriage
Blair also had some of the best lines on the show. EVERY. SINGLE. EPISODE.
Case in point, check this out.
And she actually said this too.
That’s the thing. You need to be cold to be queen. Anne Boleyn thought only with her heart, and she got her head chopped off. So her daughter Elizabeth made a vow never to marry a man. She married a country. Forget boys. Keep your eye on the prize, Jenny Humphrey. You can’t make people love you, but you can make them fear you. For what it’s worth, you’re my queen. I choose you. – Blair
As, I am a history buff and studied up on Queen Elizabeth I of England, my mouth fell open when she said this.
Check it out here.
And I am not the only one who feels she should get some praise for her talented banter.
C: It’s a facility for the disturbed or addicted.
B: You must have your own wing.
C: You don’t get enough credit for your wit.
– Chuck and Blair
If you go back with an uncertain heart, there will be drama and disaster for all. – Blair
You better believe it. In life and relationships, to be successful, you have to commit.
LOVE
B:Love me?
C:Always.
– Blair and Chuck
They were the best characters on the show, in my humble opinion. The two of them together was gold. Take a look for yourself.
But ultimately, I have learned that love is what we are all looking for.
MONEY DOESN’T BUY HAPPINESS
Trouble is moving in, and it’s looking to make the Upper East Side it’s bi*ch.– Gossip Girl
You would think that folks in tuxedos and ball gowns are the happiest, but these people seemed so unhappy.
Happiness can’t be measured in things. It comes from having the things that really matter like people who love you for who you are.
Doing the right thing takes courage and strength. At least that’s what I’ve heard. – Blair
Well, I hope you had fun going down memory lane with me and I will bid you adieu in the best possible way to end this post.
How did a small company that sold shoes out the trunk of a car get this far?
One word: Endurance.
The man behind it all fought through endless money woes,
legal problems, lawsuits, and inventory issues for 20 years, but came out ahead
in the end.
He is now estimated to be worth over $10 billion dollars.
His name is Phil Knight and this is his story.
A RUNNER WITH NO DIRECTION
“If you’re following your calling, the fatigue will be
easier to bear, the disappointments will be fuel, the highs will be like
nothing you’ve ever felt.” ― Phil Knight
Phil Knight was born in Portland, Oregon on February 24,
1938.
In his youth, he liked two things: sports and running.
At the University of Oregon (OU) he earned a journalism
degree in 1959.
After Phil Knight graduated from University of Oregon, he then
earned an MBA from Stanford Graduate School of Business. He graduated from the
school with a master’s degree in business administration in 1962. At the age of
24, he has no idea what to do.
He looks over his final paper he wrote on shoes.
In his small business class, Knight produced a paper,
“Can Japanese Sports Shoes Do to German Sports Shoes What Japanese Cameras
Did to German Cameras?,” which would foretell his eventual foray into
selling running shoes.
WHAT’S IN A NAME
Ford had just paid a
top-flight consulting firm $2m to come up with a name of its new Maverick, I
announced to everyone. “We haven’t got $2m — but we got 50 smart people, and we
can’t do any worse than… Maverick.” – Phil Knight
The company was founded on January 25, 1964, as Blue Ribbon
Sports (BRS), by University of Oregon track runner Phil Knight and his coach Bill
Bowerman, with a partnership by handshake and officially became Nike, Inc. on
May 30, 1971.
The name from Nike, is named after the Greek goddess of
victory.
When they needed to choose a name for Nike, the “Buttfaces”
(an affectionate term for the inner circle) were trying to come up with
something.
That night as Nike legend has it, Johnson, from a dead
sleep, sat upright: “Nike, the winged goddess of victory! That’s IT!”
Jeff Johnson, employee number one of Nike, and fellow
Stanford runner whom Phil hired as he hasn’t met anyone with his passion for
running, suggested calling the firm “Nike,” named after the Greek
winged goddess of victory.
It’s pronounced “ny’-kee.”
The name is Nike and their rival was Adidas.
It met with a lukewarm Buttface reception. In the eleventh
hour, Knight begrudgingly went with it.
“‘What’d you decide?’ Woodell asked me at the end of
the day. ‘Nike,’ I mumbled. ‘Hm,’ he said. ‘Yeah, I know,’ I said. ‘Maybe it’ll
grow on us,’ he said.
FIND A MENTOR
FPhil had a great mentor, Bowerman, a great American running
coach, who was constantly experimenting with shoes.
Bowerman would make then on his waffle iron.
Bowerman stressed that an extra ounce on a shoe added 55
pounds of lifting over one mile. As a mediocre runner, Phil was Bowerman’s
favorite guinea pig (he wouldn’t dare jeopardize the top runners with
experimental shoes).
He trained Olympic athletes so he knew what they needed to
wear on their feet to compete. He trained one of the most prolific Olympic
runners of that time: Steve Prefontaine.
Somebody may beat me,
but they are going to have to bleed to do it. – Steve Prefontaine legendary runner
of the 1972 Olympics
Bowerman was the most famous track coach in America,
training local champions. It was said future Olympian Steve Prefontaine known
as “Pre” did not want to run for anyone, but him.
He was also one of the top paid Nike endorsers before his death
in 1975.
In my personal opinion, I do not think I have ever seen any
runner run like Prefontaine with so much passion. I hold my breath every time I
watch him run. It’s like time is standing still. You don’t want to blink
because you know without a shadow of a doubt that you are witnessing greatness
and what the human spirit could do without limits.
The real Steve Prefontaine
THE BUSINESS OF RUNNING
“Don’t tell people how
to do things, tell them what to do and let them surprise you with their
results.” ― Phil Knight (original quote by George S Patton)
Back in his day, running wasn’t a “thing.” People were
ridiculed for running. There were no real running shoes. So, he set out to
change that.
After graduating, he decides he must travel to figure out a
plan how to see what the Japanese do with the making of shoes. Alas, he has no
money. His only option is to ask his no-nonsense father. However, he feels that
his father will not fund his wanderlust. But in a surprise, his father agrees
and gives him $1,000 to go to Japan.
“How can I leave my mark on the world, I thought, unless I
get out there first and see it?” ― Phil Knight, Shoe Dog
Phil goes to Kobe, Japan, in November 1962.
His father has two friends in Tokyo, and they dispense
business advice – the Japanese are soft negotiators, not fans of the aggressive
American style. Armed with this advice, he sets out.
He discovers the Tiger-brand running shoes, manufactured in
Kobe by the Onitsuka Co. Phil was impressed by the quality and low cost of the
shoes. Knight calls Mr. Onitsuka, who agreed to meet with him. By the end of that
meeting, Knight had secured Tiger distribution rights for the western United
States. Off the top of his head and thinking on his toes, he thinks of the blue
ribbons on his walls in his room he won from running when asked what the name
of his company as he says, “Blue Ribbon Sports.”
SIDE HUSTLE OF SELLING SHOES
SIn the beginning, there was no money.
Phil sent shoes to his old coach to see if they would sell.
Bowerman, who was obsessed with runner performance and making shoes lighter,
not only liked the shoes, but asked to work on product shoe designs and from
there a partnership was born. This was 1964.
His father’s friend advised him to get a CPA. With an MBA
and CPA, he would likely never be out of work. So, he gets his CPA and a job at
a small firm. It had 4 employees. He worked 70-hour weeks.
Phil still worked as an accountant during the day while
trying to get his business of the ground. Finally, in 1969, he quit working for the
likes of firms as Price Waterhouse to work on his business full-time.
So why was selling
shoes so different? Because, I realised, it wasn’t selling. I believed in
running. I believed that if people got out and ran a few miles every day, the
world would be a better place, and I believed these shoes were better to run
in. People sensing my belief, wanted some of that belief for themselves.
Belief, I decided. Belief is irresistible. – Phil Knight
THE RICHES ARE IN NICHES AND PITCHES
TRunning is not a hobby or sport during his time in the 1960’s.
Mostly only student athletes were buying their shoes, as popular
as they were, they appeal to just a small niche
of the population.
He sold shoes at track meets out of the back of his car in
the Pacific Northwest.
The pitch: Japanese shoes are extremely high-quality,
low-cost shoes.
A 300 order of shoes
cost $1k. He got his half $500 from his father and the other was put up by
Bowerman.
They SOLD OUT!
The shoes were so popular that people were showing up at his
house to by them.
PHIL ON MONEY
P“But that’s the nature of money. Whether you have it or not, whether you want it or not, whether you like it or not, it will try to define your days. Our task as human beings is not to let it.” ― Phil Knight, Shoe Dog
Money problems plagued the company.
Distribution rights became an issue so he had to fly to
Japan (ticket paid for by credit card as he has no money) to plead his case to
keep selling and got the green light. He found this out from a letter his
employee named Johnson sent him. The lesson here is to listen to good counsel
and advice. This very well may have saved the company from ever existing today.
However, the company did want a bigger player in the shoe
game to represent them, but Phil said they had offices in both coasts to shore
up the deal.
(He was lying – they didn’t’ have an East Coast office).
No venture capitalist or angel investors in 1965. Phil had
to use banks. They wanted big profits and slow growth. Phil was having none of
it.
BOOTSTRAPPING IT LITERALLY
BThe company was always strapped for cash. They had to stay
lean to survive. And worked mainly in storage rooms and Phil’s apartment.
Meeting the demands of the banks and customers became
equally tougher.
EVERY. SINGLE. YEAR.
Trying to get imports on time, make cash payments to
creditors, and get orders to customers was a logistical nightmare.
Onitsuka is painfully unresponsive as shoe shipments arrived
late, which meant less time to sell, and each loan repayment period to
creditors tougher.
EVERYDAY I’M HUSTLING
EPhil did everything he could do to keep the lights on, make
payroll, and keep the company going. They were growing every year and sales
were doubling, but they still had problems financially.
First year, they made $8,000 in sales in 1964. By 1967, says
had grown to $84,000. They double again in 1968 to $160,000, but Phil still can’t
afford to draw a salary.
So, he did what he and adult has to do when they need money:
get a job.
That’s right, he went back to working in accounting.
He doesn’t love the work, but it pays the bills.
At this point in Phil’s story, I had to give him the slow
clap of praise for doing what needed to be done.
However, sales double again to $300,000 in 1969, Phil is able
to draw a salary of $18,000. He quits his job teaching and is at BRS full-time.
In 1970, doubling again, sales reach $600,000. By 1971, they crossed the
million dollar sales mark at $1.3 million.
Finally, it all came to a head when their Japanese exporter
decided to buy them or give their business to someone else.
AN ACE UP HIS SLEEVE OR SOLE?
A“Have faith in
yourself, but also have faith in faith. Not faith as others define it. Faith as
you define it. Faith as faith defines itself in your heart.” ― Phil Knight
The biggest asset Blue Ribbon has is Bill Bowerman.
He learns that Japanese and American bodies are simply
different, and thus the shoes need to be different, like more arch support. To
have a great chance in the US, he believes Onitsuka needs to customize their
shoes for Americans.
He draws up countless designs and sends them to Japan, only
to receive no response. Occasionally they relent and make a few prototypes, and
indeed they’re far better. Undeterred by Onitsuka’s hesitance, Bowerman even
experiments with producing homemade rubber to make new soles.
You might be able to see where this is going.
OUR SOLES AT KNIGHT LEARN YOYO: YOUR ON YOUR OWN
OThey secretly start manufacturing their own shoes. Having
dreamed about Nike as the name for the company, it was then born and the
sidestepped acquisition.
Their reputation sold their shoes and saved their company.
They also learned how powerful celebrity endorsement is as
well.
When the company was in dire financial straits one of his
top employees (#4 full-time) Woddell and his family gave him their life savings
of $8,000 ($50,000 in 2017 inflation) to keep Nike afloat. A friend indeed.
PHIL ON MANAGEMENT
PHis employee in CA, Johnson, he sends Phil mountains of
letters, detailing his every development, every sale and notable customer.
He sends advertising ideas (Phil doesn’t believe in
advertising), shoe designs (Phil already has enough to deal with Bowerman), and
his insistence on opening a retail shop in Los Angeles.
Phil feels smothered and rarely replies to Johnson’s
letters. From studying war heroes and generals, he holds a virtue: “Don’t tell
people how to do things, tell them what to do and let them surprise you with
their results.”
And Johnson delivers results. His customers love him, depending on Johnson to solve their problems in both running and life. Even when he gets in a car crash and breaks his skull, he’s continuing to sell shoes. Phil even issues him a challenge – sell 3,250 pairs of shoes in a few months, and Johnson could open his retail space in LA. And sell he does – now Blue Ribbon has an official runner mecca in Los Angeles.
MARKS OF VICTORY
MOn his travels, he stopped in Greece. While visiting the temple of Athena, he notices a carving of Athena – bending down to adjust her shoe. She is known to be the goddess of wisdom, battle strategy, and victory or “nike.”
And what’s THIS?
That’s a swoosh.
The hell’s a swoosh?
The answer flew out of me: It’s the sound of someone going past you.
They liked that. Oh, they liked it a whole lot.
The trademarks of “Just Do It” and the Swoosh logo became synonymous with Nike. The logo is also one of the most powerful in the world.
The logo was commissioned for a mere $35 USD from graphic
design student at Portland State University by the name of Carolyn Davidson in
1971. She charged them only $35 for her work.
According to Nike’s website, Knight said at the time:
“I don’t love it, but it will grow on me.”
PHIL ON PRAISE AND CHARITY
PPhil never gave praise or money. But…
He was so pleased with the logo that in 1983 he gifted
Carolyn with an undisclosed amount of Nike stock for her contribution to the
brand. She had worked for the company from 1971 until 1980.
That year, 1980, is the year Nike went public with an IPO.
Phil told Oprah on her show in April 2011, that he gave
Davidson “A few hundred shares” when the company went public.
For years, the value of the stock was unknown.
Well, guess what? You’re about to find out right here, right
now.
What is the cost of helping someone when commissioned with a
task and not thinking it is beneath you?
Counterkicks got a
hold of a recent Nike shareholders meeting transcipt in which Knight reveals
exactly how much stock he gave Davidson and the value of that stock today…
“…we
hired a graphic art student at Portland State University, and told her to come
up with something that connoted speed, and we gave her $75.00 for what she came
up with. When we went public in 1980, we called her back up and gave her 500
shares of stock, which she has never sold, and is worth close to $1 million
this day.”
His top employee’s or the foot soldiers as I like to call
them, Bowerman is worth $9 million; Woodell, Johnson, Hayes and Strasser each
about $6 million; Phil $178 million.
In 2012, it was reported that Knight himself owned
67,097,005 shares of Class A Common Stock and 7,740 shares of Class B Common
Stock in the Nike corporation.
Nike has revenues of $20 billion annually.
In 2018, he is now estimated to be worth $29 billion
dollars. Him and his wife donate $100 million a year.
PHIL ON HELPING OTHERS
P“When goods don’t pass international borders, soldiers will.” Though I’d been known to call business war without bullets, it’s actually a wonderful bulwark against war. Trade is the path of coexistence, cooperation. Peace feeds on prosperity. – Phil Knight
When on travels in his younger years he went all over the
world.
He noticed incredible poverty in places like Vietnam.
When his goal of taking over Adidas as the number one shoe
company in the world, by 1986, total sales hit $1 billion, and Nike surpassed
Adidas to become the No. 1 shoe manufacturer worldwide.
He also was able to fulfill some other dream. He opened
factories in Vietnam so that war would likely stop there due to commerce and
work.
Luck plays a big role.
Yes, I would like to publicly acknowledge the power of luck. Athletes get
lucky, poets get lucky, businesses get lucky. Hard work is critical, a good
team is essential, brains and determination are invaluable, but luck may decide
the outcome. Some people might not call it luck. They might call it Tao, or
Logos, or Jnana, or Dharma. Or Spirit. Or God. – Phil Knight
Knight’s memoir, Shoe
Dog, was released on April 26, 2016 by Simon & Schuster, was rated
fifth on The New York Times Best Seller list for business books in July 2018, and
details the building of the Nike brand.
Knight has donated hundreds of millions of dollars to each
of his Alma Maters including $105 million to Stanford Graduate School of
Business in 2006.
As of 2016, according to Portland Business Journal,
“Knight is the most generous philanthropist in Oregon history. His
lifetime gifts now approach $2 billion.”
It is safe to say that Phil Knight and his Nike business are a running success.
“Walk amongst the natives by day, but in your heart be Superman.” ― Gene Simmons
In 2017, Gene Simmons wrote a book called, On Power: My Journey Through the Corridors of Power and How You Can Get More Power.
This book was nothing like I expected.
It was MORE.
Like the title says, it’s about getting more power. Become more powerful than you ever thought you could be. It all starts with your actions.
Let’s get right into it.
WHO IS GENE SIMMONS?
Image: Forbes.com
The short version is that he is a co-founder and front-man of the band KISS, that he helped start in the 1970’s. They are America’s #1 gold record-award-winning group of all time.
Image: New York Post
Gene grew up dirt poor. He practiced guitar for hours after watching The Beatles on an appearance of the Ed Sullivan show, he knew then that he wanted to be a rock star.
According to Harper Collins, the book was inspired by Niccolo Machiavelli’s The Prince, Simmons offers his unique take on the dynamics of power in every realm of life, from the bedroom to the boardroom, to the world of rock, celebrity, and social media, to politics. With one-of-a-kind anecdotes from his life and career, as well as stories from historical and contemporary masters of power, including Winston Churchill, Napoleon Bonaparte, Warren Buffett, Michael Jordan, Oprah, and Elon Musk, Simmons crafts a persuasive and provocative theory on how the pursuit of power drives civilization and defines our lives.
Gene Simmons has an estimated net worth of over $50 million dollars. So, I decided to give the book a quick read. Glad I did.
POWER IS WHAT EVERYONE WANTS
People want power.
Power over their lives
Power over their time
Power over their professional lives and career
Power over their money
So, how do you get this so-called power.
It’s a power grab for sure.
Gene takes a no-holds-barred approach to his life and on power. It’s dog eat dog out there. You have to be one of the big dogs.
Gene believed that everyone deserves power and that it is yours for the taking.
In his book, he gives you the key to unlock the doors to the temple of power.
GENE ON EDUCATION
“It’s up to you to educate yourself.”
“It’s up to you to learn speaking skills and people skills.”
“It’s up to you to try (and usually fail, but to try again) all sorts of ventures.”
“Believe me, the library is the temple of God. Education is the most sacred religion of all.”
He graduated from Richmond College in New York City getting a bachelor’s degree in education. At one point, he was a school teacher in the Upper West Side.
Gene also speaks multiple languages such as German and Hebrew.
I noticed this was also a theme of Scrooge McDuck. Get a good education, become a linguist, and get to work.
I read everything I can get my little hands on. I go to the library every month. I regularly check out 4-5 books at a time. Sometimes more. I do believe in being well-read.
GENE ON SUCCESS
The rest is a combination of hard work, being at the right place …at the right time…with the right thing…oh yes…and more (never ending) hard work.”
You want success? Well, you have to work for it.
Gene puts his money where his mouth is.
He worked for a butcher hauling up huge slabs of meat and cleaning the blood off the butcher block. Gene has worked as a typist and sold fruit on the side of the road when he was 8 years old.
Make no mistake. Gene is a hard worker and a hustler. He was working multiple jobs to get ahead. Similar to Jay Leno.
As for myself, at one point, I was working as a waitress, cashier, or in sales. In addition, to going to college and studying at times up to 5-7 hours a day! Going to bed at 1 am and getting up at 6 am. Rinse and repeat! I did that for years.
GENE ON ENTREPRENEURSHIP AND CAPITALISM
“Before I ever knew what the word Entrepreneur was, I realized in America and in the Western part of the world in general, you are given the opportunity to be whatever you want to be. And that is all anyone should ever expect from the Capitalist system. The rest is up to you.”
Yep. America is the land of YOYO (You’re on your own).
You learn real quick that no one is coming to save you. You have to create your own safety net. You can’t depend on the government. The only person to depend and rely on is self. Get it? Got it? Good.
GENE ON MONEY
“So much of our popular mythology focuses on the negative aspects of power that we forget that gaining power is, perhaps, the only way to enable ourselves to make a difference in our lives and in the lives of others.”
Gene says you must first get your financial house in order before you can espouse love.
This is similar to what I once heard Tyra Banks mother say, “you have to get yourself together first, before you can help anybody else.”
You should always be looking for ways to earn and expand those earnings. KISS started out with nothing. They slowly built a following. IT. TOOK. YEARS. They were riding around in an old van going from gig to gig and living off hot dogs.
But KISS got smart. They started licensing their name. Everything from lunchboxes to t-shirts. Their moniker is big. Multi-million dollar deals got them to the top of the heap. Monetize everything is Gene’s motto. And he has. And it’s been lucrative to say the least.
So, there you have it. Gene Simmons on power. If you want it bad enough, you just have to work and rock-n-roll all night, like KISS, to get it.
The first step to getting the things you want out of life is this: Decide what you want. – Ben Stein
Ben Stein is an economist and actor, who wrote a book in 2017, called The Capitalist Code: It Can Save Your Life and Make You Very Rich. He has an estimated net worth of over $5 million. So, I thought I would check his book out.
On my quest to follow the money, I have discovered lots of books, blogs, and information about money.
I have been told I am seriously into all things money. Friends sometimes call me “the money lady.” That’s fine with me. I take that as a compliment. There are much worse things to be called than that.
But, I get it. I do have a laser-like focus when it comes to getting things done. I can be a task-master. It comes naturally to me. I just can’t help it because I believe in finishing what I start.
I learned that lesson from one of my favorite childhood books Where the Red Fern Grows.
You could say I’m a bit obsessed with learning about money. However, it has served me well to know about personal finance. I have a six-figure retirement and save over 40 percent of my income. All that came from reading finance books!
That is how I came to find this book. It is a quick read as the book is on the small side at 146 pages in length. I knew the name Ben Stein, but I wanted to find out What is The Capitalist Code?
But first…
WHO IS BEN STEIN?
“I’m an economist by training. I don’t really work as an economist. I only worked briefly as an economist.”
Jewish-American economic and political commentator, writer, actor and attorney. He gained early success as a speechwriter for American presidents Richard Nixon and Gerald Ford. Later he entered the entertainment field and became an Emmy Award-winning actor, comedian, and game show host. He is famous for his monotonous yet humorous voice in acting.
For those who may not be that familiar with the name you may remember him from his self-titled television show, “Win Ben Stein’s Money” or from the film, Ferris Bueller’s Day Off.
“As to a media personality, well that just happened in large measure because people found me amusing, and I did lots and lots of T.V. news interview shows.”
“It’s a great stretch for me to do my game show. It’s very hard. It’s not me at all. The only part that’s me is sort of when I’m sitting in the booth looking tormented. That’s the only part that’s the real me.”
In Ferris Bueller, he is actually discussing a real topic of the era. During the 1980’s, Reaganomics was also referred to as voodoo economics or trickle-down economics. I’ll give you more on this topic later, in a future post. 😉
Ben has written for publication’s such as Barron’s, The New York Times, Fortune, and the Wall Street Journal. And numerous financial books including this one.
WHAT IS CAPITALISM?
By definition, an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state. You will often hear it referred to as a free market or free enterprise.
Simply put, capitalism is a system of investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained by individuals and corporations instead of by state-owned means. Participants privately own capital.
Ben says, “Free market capitalism is a fantastic wealth-producing system and allows individuals to amass wealth.”
In addition, “There is no freer, more diverse, and more equal opportunity employer than capitalism. . . If you can produce a large amount of excess over your costs, you get well paid. And if you produce very much more than you cost, you get rich.”
A free market of competition, not a central government or regulating body, dictates production levels and prices. True capitalism needs a competitive market because without competition, monopolies exist.
“Trying to pick individual stocks is a trap. I can’t do it. Warren Buffett can, but hardly anyone else can beat the indexes over a long period of time.”
It’s easy to think of big business as morally bankrupt, but it isn’t, really. Business leadership can make poor/unethical decisions, but being big doesn’t make them inherently wicked, and being a small business doesn’t make it inherently virtuous.
“I agree that there are some bad apples on Wall Street. I spent about ten years exposing corporate and financial fraud for ‘Barron’s’ magazine and I found a lot to write about.”
If you want to know more about stocks, you can read numerous books and magazines on the topic such as Value Line, The Intelligent Investor, and anything by Jack Bogle.
The key point is this: Free market capitalism is an incredible machine for making wealth. Corporations “rain money” year after year. If you don’t participate, you are making a huge blunder. It doesn’t take a genius, but it does take a plan—a “little bit of knowledge and an even smaller amount of action.”
SCARY STATISTICS
“The education system should teach us about money; it’s an incredibly big subject. I run into people all the time that don’t have the first clue of what they should do about money.”
Ben states the following about personal finance in America:
Most Americans have not inherited wealth or a successful business that could set them up for life
80% of millennial’s have no plan whatsoever for retirement savings
Many Americans are saving NOTHING
The average person says they need about $50,000 per year for retirement; but only has savings to achieve 20% of that number
We live in a country where more than half the people couldn’t come up with $500 in cash today if they had a family emergency
Source: GoBanking
WHAT YOU NEED TO DO
According to Ben, you need to save first, and then spend— automatically.
That’s similar advice that Shark Tank’s Kevin O’Leary says: “Don’t spend too much. Mostly save. Always invest.”
Barnes and Noble provides this overview of the book: harness the incredible power of the U.S. economy for enjoyment and security by being owners of profitable businesses-by consistent, conservative investment starting as young as possible in a diversified port- folio of stocks. Anyone can be a capitalist—and should be. All it takes is a little bit of knowledge and an even smaller amount of action. All it takes is The Capitalist Code.
BEN ON EDUCATION
“There is a clear, unequivocal, if generalized, connection between the amount of education that a man or woman achieves and the amount he or she earns.”
In the book, he shows what women can earn with a degree…
And men.
Agreed. I notice that the more education you have, the more informed decisions people tend to make.
Although, in my opinion, education is not an equalizer it does; however, provide you with increased opportunity, knowledge and exposure to scholarly information.
For most folks, a bachelor’s degree is enough. Particularly, from a reputable in-state public or private accredited institution.
I will never forget when I was reading Arnold Schwarzenegger’s biography when he saw a PhD professor driving up in an old, beat up car and he said to himself that if that is what an advanced degree gets you, then that guy was in the wrong career.
BEN ON SPENDING
“You must arrange your life from the very get-go so that you are spending less than you earn.”
Yep. I have learned it is not what you make, but what you spend.
You can totally blow through $200,000 USD a year after taxes! Just keep buying big homes and expensive cars.
BEN ON PICKING STOCKS
How should you invest?
“You don’t need to “play the market” and try to pick stocks. Just buying and holding index funds is a simple, effective method that beats money managers most of the time.”
How long should I hold onto stocks?
“Hold onto these funds as long as possible.”
Should I sell as soon as I get a sizable gain?
“Take advantage of huge tax subsidies for deferring investment gains.”
BEN ON WEALTH
“A highly disproportionate amount of the good things in life accrue to those who have financial capital. The easiest way is to own index funds.”
He states you must acquire wealth.
I too have read you must pursue wealth. You may not want to chase money, but sitting on your laurels won’t attract money and abundance to you. Wealth is something that is attracted to those that have beat inertia and exhibit exertion.
Well, there you have it.
Straight from the guy who is pretty focused on one-task himself as he continued to utter that famous line, Bueller? Bueller? Bueller? Bueller?
Just like someone had pity on him and answered him in the movie, Mr. Stein has answered a lot of your money answers in his book. The code is capitalist. He has given you the key to unlock the secrets on how to build wealth. So, use his key. Because guess what? The secret is out!
“Um, Anya, while I completely trust you to take care of the inventory and the money, um, dealing with people requires a certain… finesse.” – Giles, Buffy the Vampire Slayer
Yes, indeed. Say it with me, finesse. PEOPLE. REQUIRE. FINESSE.
I cannot tell you how many times I have done business with people and their attitude caused me to cancel my transaction. All I ask for is a little kindness. Being nice can go a long way.
If you are passionate about what you do, then you are generally more pleasurable as well.
People will forget the things you say or do, but they never forget the way you make them feel. I learned that from Maya Angelou. And it is so true.
Today, I want to share with you some advice from my peers. Money Bloggers.
You better believe it. I read every contract. Cross every T. And dot every I. The reason I have an Emergency Fund is for my peace of mind. It means no matter how much the government changes the laws, your job sucks, the lack of integrity around you, or people’s scruples, you are protected.
Here are some of my posts on the importance of emergency funds and having money in the bank.
You don’t need money in 8 banks, 20 credit cards, and 3 homes if you can’t find a way to manage it. Simplify it. Hire a financial advisor and property manager. Or just decrease the amount of banks and credit cards you use, homes you own, and stuff you have.
No matter what, simple is best. KEEP IT SIMPLE!
3. YOU DON’T HAVE TO SPLURGE ON EVERYTHING
Things Worth Spending MAX Money On For A Better Life – https://t.co/IXRyboM4Cm – You don't have to splurge on everything. Just the most important things. What's missing from the list? pic.twitter.com/3aM4LU7KGX
Absolutely, you don’t. I read a book years ago on health and fitness called Beyond Diet. She stated instead of buying all organic just get a few main items such as milk to keep your budget in check.
I have always spent my money on the things that mattered most. Namely, my health, education, a good pair of shoes, a good coat, and reliable transportation.
See more on saving and buying what really matters.
Because I'm a money nerd and a comics nerd, one of my favorite things is when these two obsessions come together in the form of (drum roll, please): financial graphic novels! You might think that's a niche I just invented, but you'd be wrong. https://t.co/ea0q30ojwlpic.twitter.com/e13jgOoPrs
I take every chance I get to educate someone about money. I bought the Automatic Millionaire for my best friend years ago, so she could get better acquainted with Mr. Benjamin, cause it’s all about those Benjamin’s.
If you don’t teach your kids about money, they will grow up not knowing how to earn and manage it.
If your not sure where to start, check out my post on Scrooge McDuck. It’s kid friendly.
You think you know where your money’s going, but you have no idea.
Well, welcome to the club. Most people have no idea where their money went.
I suggest you start tracking it right now. Yes, stop reading this post and go track your net worth right now!
You can only do better when you know better.
7. A CAR IS NOT AN INVESTMENT
A car is not an investment, it's a tool. It's ok to spend more money to buy a nicer tool. Especially if it's a tool that you use often and needs to be relied upon.
There is nothing wrong with owning nice things, just don't lie to yourself by justifying it as an investment.
Don’t even get me started on cars. Like money, it is just a tool.
I paid off my car about a decade ago. Here is a screen shot of my $0 balance. I paid off that car and out that money to work for me. Forget cars! You do not need an expensive car.
Ah yes, they say ask and you shall receive. However, you still have to ask and do the work. Nothing is for free.
The sorted topic of coin is a tricky one. Money is emotional. But side hustles can get you more money, so I say why not try to EARN money by doing something you are good at and do for free already. Just a thought.
How do you FIRE? Basically, you work your butt off when you’re young, live on like 50% or less of your income and save and invest the rest. You have a better chance of achieving this if you can save and invest 50-70% of your income.
From what I have read, most aspire to FIRE with 25 times their income. Could be anywhere from $500,000 to $2.5 million. Then live off the interest.
However, whether or not you FIRE, you can help others. It can be done with money or time. Either way, with financial independence comes the ability to choose what you do, as you become the master of your time when you no longer have to punch a clock.
When is it time to leave your job and FIRE?
Ask yourself: Would you do this job for free?
You want to be able to do your passion right? Then, you have to make some changes. Leave the grind of the 9-to-5. Get out of the proverbial rat race. It all starts with what you earn and what you spend.
Financial freedom allows you to spend more time doing the things you want. You can spend more time with family, take more vacations, serve in the peace corps, help build homes for habitat for humanity, and the list goes on.
Hope you enjoyed this post, as much as I enjoyed writing it. It was nice to remember some of the things I’ve learned along the way on my own journey to wealth.
However, whether or not you FIRE, you can help others. It can be done with money or time. Either way, with financial independence comes the ability to choose what you do, as you become the master of your time when you no longer have to punch a clock.