Growing your net worth from $0 to $1 million takes time. First, you have to ask for what you want. It starts at the negotiation table.
The sorted topic of coin. Everybody needs it, but those that really want it ask for it.
Ask for what you want. Anything at all. That includes money.
It may not be easy, but you have to negotiate.
It is the only way to get the best deal for you.
You know your worth, so don’t accept anything less.
Speak up to be heard.
Always be reaching. Never settle.
SPEAK UP
A lot of people are afraid to say what they want. That’s why they don’t get what they want. – Madonna
Remember that piano scene in Sex and the City where the piano player kept saying, “one more time for the cheap seats in the back.”
Well, that is real advice.
No one can hear you if you whisper. You have to shout. If you do not speak up on your own behalf, no one will.
Believe me, prince charming or princess darling isn’t coming.
It’s like that part in The Lord of the Rings where Gandalf shouts, “fight for your lives.”
I say that to myself all the time. Do it like your life depends on it. Whatever it is, make it count. Finish strong.
Like that voice in Mortal Kombat used to say, “fight hard.”
Either that or die trying.
BE FEROCIOUS AND FEARLESS
Better to live one year as a tiger, then a hundred as sheep. – Madonna
I can’t tell you how many times I’ve been called a rebel.
For standing up for myself. For voicing my opinion. The list goes on and on.
I think back on that scene in Troy. To fight back.
If you want something, then you better be willing to go to bat for it.
I have asked or negotiated for better pay, grades, food, clothing, a deal on a house, fees, and interest rates.
I’m a lioness. I’m like Miley Cyrus says, “I can’t be tamed.”
I like to go for the gold, but I’m not ashamed to get silver or bronze.
Now when people say no, I only hear yes to my dreams.
WHATEVER DOESN’T KILL YOU
I stand for freedom of expression, doing what you believe in, and going after your dreams. – Madonna
You know the saying…only makes you stronger. Well, it’s true.
I will never forget those hard times being picked on as a kid.
I heard Jillian Michaels say she was bullied and teased relentlessly until she started taking martial arts. She says then the bullying stopped real quick.
I just focused on my studies. And my dreams. Just ignored everyone and everything. I was laser-focused.
I maintained good grades, a well-kept appearance, good manners, strong work ethic and a no nonsense attitude. The teasing stopped real quick.
It truly has paid off. As I have done the following:
Completed my education
Paid off debt
Learned how to invest and build wealth
Traveled more
Maintain my health
Took martial arts
Became a writer by starting a blog
I just did what I believed in. And I believed in myself. I just trusted my instincts. I picked a path and didn’t look back.
Things may not have always worked out the way I wanted, but I was never standing still. The needle of my life was always moving forward.
BE THE ARCHITECT OF YOUR LIFE
Don’t you ever let a soul in the world tell you that you can’t be exactly who you are. – Lady Gaga
What do you want?
Be specific.
I’ll give you an example.
I plan to have enough money to retire in 13 years.
Be more specific. No problem.
By May 5, 2031, I plan to have enough money in savings and investments to retire from full-time work forever.
And that is not a wish, but a goal. This is real.
I am planning for that date. Right now.
Will I retire? I don’t know. However, I still plan to have the option to do so.
Madonna said, “Poor is the man whose pleasures depend on the permission of another.”
Warrant Buffet decided at age 10, after going on a trip to the NYSE, this planted the idea in his young head to organize his life around money.
You are the person in charge of your destiny. Never forget it.
PENNIES OR DOLLARS
The mind is the greatest weapon. – Rambo
Oh, it is. If you have ever seen an episode of MacGyver or been in a tight situation and talked yourself out of it, there’s your proof right there.
I have noticed that math and science are great skills for analytical thinking. Great subjects to study in school or to use to prepare for a career.
In the 2004 film Ray, Jamie Foxx plays Ray Charles and is told the way to get a better deal is to ask for one.
Don’t be afraid to ask for more.
My mother taught me that.
She says all people can do is say yes or no.
In the movie, the man says to Ray you think pennies you get pennies, you think dollars you get dollars.
That was just by changing your mindset.
When I think now, I always think in millions.
For instance, it will take approximately 20-30 years to build a million-dollar investment portfolio depending on how much you save and the interest rate. Investing $10k a year at a 8% interest rate will net you $1,000,000 within 28.55 years.
You just have to decide.
Do you want thousands or millions? You think millions, then you get millions.
If you ask for it and are turned down, then use your mind to find a way to create this reality.
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.
Chances of winning the lottery today: 1 in ~300 Million
Chances of being born as yourself: 1 in ~400 TRILLION
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.
According to @NYTimes, 90% of lottery winners go broke within 5 years of winning. What would be your plan to keep your winnings long term?
“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.
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.
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.
If you have been reading my blog recently, then you know I attended FinCon in Orlando, Florida this year.
However, what many of you may not know is that I have been listening to podcasts and reading blog posts by Grant Sabatier of Millennial Money.
Grant discussed saving money every day. Something like $5. And when I changed my mindset, I was like I want to do that too.
The escalation of your saving rate. Grant recommended that people try to escalate their saving by 1% every 30 days.
I knew this was a massive undertaking, but I was determined to do something.
So, I started where I was at and worked my way up. I just shifted upwards.
This is the first time I have ever opened up about what triggered me to start saving larger sums of money.
I am nervous just writing this post. However, I wanted to share some of the things that I have done in hopes that it may help someone else in the same way that Grant helped me.
SHIFT YOUR MONEY MINDSET
It was around 2013, that I started to do some Million-Dollar Math. I used an online calculator to determine how much I would have to save to get to millionaire status.
I focused on 2 numbers: $100,000 and $300,000.
The reason for this was because at an 8% return $100,000 will net you $1,000,000 in 30 years. At a 9% return, $300,000 will net you $1,000,000 in 12 years.
Even that, seemed like it would take tremendous effort. Then I realized I had to think big, but start small. Start where I was at.
The answer was staring me right in the face. I was like Homer Simpson, Doh! Come on, Miriam. Use your Noggin.
I needed to take the small steps first in order to get to the bigger ones.
A number like $1,000,000 is too daunting. So, I broke it up into bite sizes like Oreo mini’s.
First, I focused on my retirement savings and then my regular savings. It went something like this.
Retirement Savings Escalation Example
Year
Savings %
Annual Increase
Change
Savings Escalation
2013
13%
2%
+2
2014
2015
15%
20%
2%
5%
+4
+9
2016*
25%
5%
+14
*** I stopped at 2016 because I shifted my focus from mostly all savings going to my 401(k) to focusing more on liquid savings for the time being. Don’t worry. I still invest in my 401(k). I have to get that match after all. Can’t leave free money on the table.
In 2017, I made some changes to my savings approach. I needed to have some liquid cash too and not just have all my funds locked up in my 401(k). I had to have cash reserves. Especially, for any unforeseen emergencies that just pop up.
I decided to pay myself first. Instead of saving what was left over after paying my bills and spending money on things, I saved first. I set up an automatic deposit to my savings, then paid my bills and then spent what was left.
My savings rate was so high that there was not but so much left over to spend. I did this on purpose.
It meant I must not only spend less (a lot less), but I must also earn more if I want to spend more.
I started saving more liquid cash in my savings and money market accounts.
In order to get my savings rate higher, I had to cut subscriptions, payoff debt, and eat out less.
And there is a secret to my success. Shhh! But, I’ll tell you guys. The secret is this: I automate it.
Savings Year
Monthly Savings Amount
End of Year Total Savings
2013
$50
$600
2014
$100
$1200
2015
$150
$1800
2016
$250
$3000
2017
$333
$3996
2018
$1,111.04
$13,333.06
2019*
$1,211.09
$14,533.06
I try to increase my savings rate by a minimum of between 1%-5% a year and even double or triple it, if I can. I just cut out everything. I spend as little on clothes as possible. I haven’t bought a car in almost 16 years. I don’t care. I’d rather save and be financially independent.
You can see from the numbers above that once I was introduced to Grant, my savings rate went through the roof and increased quite dramatically!
At the rate I’m going, I estimate I will have somewhere between $80,000 – $90,000+ after factoring in for life (cause things just come up).
And that is only if I continue on this path for at least the next several years and increase my savings by about 11% per year or around $1200 annually, which is a $100 increase in savings per month. I could decide to save even more over time.
I would then have enough savings in the bank to pay for 3-5 years of my expenses.
I estimated my FIRE number (25 x my expenses): $750,000.
Once I hit that or a certain number in liquid savings, I will then re-evaluate my situation.
WHEN I GOT INSPIRED BY MILLENNIAL MONEY
It happened around 2017. I like to read money articles, magazines and books. I like to study the self-made. Then maybe I can emulate their success.
I saw an article about Grant on CNBC in early 2017. I was intrigued to learn how someone could do this in just 5 years what most are unable to do in a 30 or 40-year career or even in a lifetime.
Once I read his story I was inspired to act. I was determined to get my act together too. I devoured personal finance (PF) books. I must have read at least 40-60 in the last 15 months alone.
However, I haven’t bought a book in about 3 years. Too expensive. I rent them all from the library.
I do have some books I own from the years I was buying personal finance books. I have a small mini-library in my home (just a medium-sized book shelf) full of all my PF books.
I feel that if you want to be wealthy, then you have to read. You have to pursue wealth. Your house should look like a Barnes and Noble, if you want to be rich.
And ditch the plastic, unless you can pay it off every month. Once you stop making those installments, all your money is yours and a lot of your money woes disappear.
However, for the first time in years I am allowing myself to buy a book and it will be Grant’s new book that is coming out in February 2019.
How do I know he has a book coming out at that time you ask?
Thanks for asking. I’ll tell you all about it.
MEETING MILLENNIAL MONEY
I went to Fincon, a financial conference where money and media meet, and Grant happened to be speaking at one of the workshop sessions.
I stepped in to see what he had to say.
He was awesome. I felt his passion for what he did. It was palpable.
He said blogging is a long game. Your blog and appearance should be clean and shiny.
Be unique, be yourself and tell your story. Stand out from the crowd because the media will try to lump you in with all the other bloggers. Don’t let them.
Sell your feel goods. Feelings are what connect people to you and your blog.
Do you care about your reader? If so, be clear and transparent. Have a mission.
When I shared my story about having only $2.26 in my bank account it just one day exploded. I have done over 400 media interviews because of it.
90 days ago a firm offered me $4 million dollars for my site. I turned it down. I can’t sell my site. It’s my baby. There is more to life than money. It’s not the money. It’s the work.
If you want to be a blogger, make your posts memorable. Have personality. Be vulnerable. Be more giving. Show people that you are human. Tell your struggles and challenges. Reveal things to your readers over time. Humanize your site. Be more open.
Screen shot your story. Make it unique so people can remember. Always start with a story.
Write lots of stories. Do your reps. Put in your time. Putting in the extra time to write 3 times more content means you connected the reader. Readers are looking for an emotional connection. And Storytelling.
I’ve written 1 million words about money. And I’m not done. Be distinctive.
This is the age of vulnerability and that is why digital podcasts are so popular.
At this point, I got the message. He was so passionate when he spoke I did not want to leave the session because he was so engaging.
I made a point to walk up to him later in the day and introduce myself and tell him how much I enjoyed his workshop.
He said thank you so much. I really appreciate that because it’s scary up there. Your like an island up there.
I also told him I did not think he should sell his website. I mean where I would get my feel goods.
I then gave him my card and he gave me his flyer. He was super grateful and humble when I told him I liked his speech. I felt and thought that he had a good personality and thoughtful disposition that was positive and hardworking.
And I was right. At the closing party, Grant displayed , yet again, his big-hearted and kind nature.
The DJ was packing it up for the night, but people still wanted to dance. He offered to pay the DJ (out of his own pocket to keep the party going). That was really nice.
That’s the type of people I need and want around me. Those with good character and that care about others. I want to be a good neighbor. And want to be around good neighbors as well.
After all, you never know when you may need to borrow a cup of sugar or need someone’s help.
Case in point, I had a close friend that needed some money fast in order to close on her house. I wrote her a check the very next day, with no other questions asked and she paid me back within 2 months.
My sister also many years ago was in a bind and needed to pay a debt. She said she needed $500 dollars. I wired her the money the same day. She said she would pay me back and I told her to forget it. After all she had done for me. I didn’t forget when there were times she helped me out. I had a chance to repay the favor, so I did.
I know some people out there may say it was just a DJ, but no. It was more than that. It was the fact that he was willing to dig in his pockets and spend money on hundreds of virtual strangers.
I have seen people not willing to give up a dollar, a penny even, not one red cent to help family members. Let alone a stranger. And this guy did it, no questions asked and without waiting for or expecting a thank you.
Well, there you have it. My story of how I started to save more.
You now know more about me than some of my close friends and family members do.
I’m not going to lie. I was scared to write this post, but if Grant can screen shot his bank account showing $2.26 in it, then I am willing to share as well.
I too lived at home longer that I wanted or planned to. I went shopping and spent recklessly to numb the pain. I felt I was failing at adulting.
I had to find a way to kick the habit because it was putting me in the poor house.
I started shopping with lists. I would make painstakingly long lists of clothes I wanted to buy. I would make myself wait 30 days before making a purchase. By then, I didn’t even want the clothes anymore.
To satisfy my cravings, I would at times (every few days or weeks) allow myself to go online to Nordstrom and put every item of clothing I wanted in the shopping cart. I once raked up a bill for $18,000 dollars!
However, I thought about my money or my life. How much in sweat would I have to toil to pay off that sweater that no one is going to see me in because I am too broke to go out?
By the time I would be able to pay off the debt (plastic fantastic), those clothes would be long gone and the interest would have made them way more expensive than the $18,000 I racked up just to buy them.
I did not buy one single item.
I proceeded to do this for about 6 months and sometimes I did it every day, in order to get it out of my system.
I have been cured of my shopping addition and clean and clothes sober for the last 5 years. Thank you very much.
I have never told anyone any of these things except my partner. He said do whatever you have to do not to spend.
I’m embarrassed to tell people that I used to do that, but whatever it’s my truth and I’m living in it.
I wasted so much money on clothes. You would not believe. For every event, I would go shopping. I needed a new dress or jacket or boots. I spent with reckless abandon to impress people that I didn’t even know, like or who didn’t even care.
Now, I never go on Macy’s website for longer than 10 minutes, I get what I need, and get out. I have bought very little and way less clothing than in the past. I rarely go to malls and no longer go to any clothing sites online.
I had about 600 items in my Amazon cart. Those items have been just sitting there probably for like the last 5 years. I was like forget it. I don’t need any more stuff.
I also notice when I don’t shop, I feel better. I get just as much joy in saving as I o spending. Almost. Let’s not go crazy now. I’m only human.
I started donating clothes and items all around the house. It feels good to purge all that stuff. It’s so freeing. It was cluttering up my mind and house. I don’t need a bunch of gadgets and new clothes and shoes. I would repair instead of replace.
I rarely go to the movies and almost never go on vacation. And if I do, it’s usually once a year.
I keep myself busy. I don’t like ideal hands. I find something productive to do. Even if, it’s just reading or cleaning the house.
Sometimes, I still get the itch to shop and spend, but I have learned not to scratch it. If the goal, is to be financially secure then sacrifices will have to be made. Hard work is required of anything good and important and it takes time. And hard work builds character.
And I am okay with not getting rich quick or overnight because I know anything truly worth having is worth the wait. The only way to really feel good about something is to earn it first.
I had to train myself on how to deal with large influxes of money and to keep my paws off of it. And much like the narrator said at the end of the Neverending Story, but that’s another story…
Want to finance an exotic car? No sweat. It will only cost you $157,944.33.
That amount is based on a Porsche that costs $144,750 with loan terms of 144 months, with a 3.3% interest rate, and $14,475 down payment.
Yes, you read that right. Financing for 144 months is the equivalent of 12 years! Just ridiculous.
Especially, considering that a car depreciates in value the minute you take it off the lot.
For example, a $100k BMW 6 Series after five years will likely only be worth $40,000 in resale value. Therefore, over that time period you have paid over $70k. You would still owe approximately the same amount as the current resale value and it would be worth even less in a few more years.
What made me look into this was listening to talk on a radio show I heard about being able to finance a $100k Porsche over 8 years. I was like that can’t be real. Oh, but it is. The people on the radio said that people were doing it and taking out these loans. I was like that’s insane. You can buy houses in different countries all over the world or in certain parts of the United States for that.
If you are so set on having an exotic vehicle, then I think the best course of action is paying cash in the form of a cashier’s check. If you have to finance a $100k car, then that sounds like a red flag that you can’t afford it. Instead of spending $100k on a car, why not invest it? Over a period of 12 years with a 7% ROI you could have $272,641 in your 401(k). Even without investing another dime, you could be a millionaire in about 20 years. Is that car worth a million dollars? I don’t think so.
Who are these people that want to finance a $100k car? The only one I have ever seen was on a Canadian television show called Til Debt Do Us Part hosted by finance writer Gail Vaz-Oxlade. In one episode, a married couple had accumulated a significant amount of debt, but what made this episode stand out was the fact that the wife wanted a very fancy car and was thinking of financing over $100k to get it. Mind you, the couple had kids and debt, so where was this money coming from?
Here is a sample of how the show went on to explain to viewers how people are spending and where the money comes from: credit. If you want to order Gail Vaz-Oxlade or other financial books, then look to the side or go to the top of my blog page and click the Amazon banner link.
Who are these companies that are likely to finance these amounts? BMW Financial, Audi Financial, Porsche Financial, and the like. See the screen shot.
And not only do these companies allow you to finance, but expect a down payment on cars with six-figure price tags.
I have had my car for more than a decade. Actually, it has been 15 years. My car has been very reliable. Once I paid it off I decided I did not want another car note. That was almost 10 years ago. Here is a snapshot below of my last payment. It may become my screensaver.
I have been able to do so much without having that payment hanging over my head. I decided to start paying off my credit card debt, invest more, get Lasik, join a gym, and get another degree. Basically, I invested in myself. I do not regret not purchasing a new car for one second.
Here is my take on it. Why stretch yourself financially, for a car you desire? Ask yourself if you would still be willing to do that, if the most popular car in the world among the money elite was a Honda? Financially savvy folks know that a fancy set of wheels is pricey in more ways than one.
I was told that a rapper was discussing online about owning a Bugatti or some other luxury vehicle that has three radiators. If one goes down, it costs $90k to replace. Gulp! That’s a hard pill or repair bill to swallow.
I heard an NBA player say that he knew people that would buy Bentley’s, but then would stop driving them because they were not meant for everyday driving. The wear and tear was ridiculous. Owners were shelling out tens of thousands of dollars on maintenance. Don’t believe me. I read an article by Forbes about unreliable luxury cars. Apparently, I am not the only one who has noticed that every luxury car that glitters isn’t gold, but merely sold to those willing to fork over their hard earned cash.
That means you basically are driving a house on wheels for the amount you paid. Then after all that, still have to worry about thousands of dollars in repairs. And since this isn’t your run of the mill car, you have to go to specific repair shops. Usually, this means repeated trips to the dealership. Who has time for that?
Luxury cars seem not only to come with a high price tag, but also lots of headaches. I say this: if you can afford the monthly payments, maintenance, and can hire a mechanic or chauffeur to repair or take your car in for service at a moment’s notice, then you can get the car. If not, you’re better off sticking to something you can take to Jiffy Lube.
