After 12 years of reading about personal finance, it never
ceases to amaze me all the things you can learn. I not only learn about money,
but I also get a history lesson in the process.
Did you know that credit cards have only been in widespread
use since the 1950’s?
Before 1950, credit was rare.
Most places did not offer much in the way of credit. They
wanted cold, hard cash.
Stores may have provided familiar faces and those in the community
with a store credit, but you better believe it was not a $25,000 limit!
I decided to have some fun last summer and see if I could
get approved for $5,000 on some random credit card. Well, guess what? I got
approved for over $20,000 in credit limits!
However, that pales in comparison to some offers that some
people have claimed their pets have received in the mail. You read that right,
pets!
I have read numerous books and articles where people have
received credit card offers for their pets.
Come on, America!
If the pet’s owner cannot afford a $400 emergency, as the
media claims, then how is an unemployed Yorkie going to payback over $50,000.
And yes, that is a limit I read one couple stated their dog received. And that
was only one offer. They also received others with one being $100,000!
However, there are some pets who earn their keep and make millions for their owners.
This post, for now, will focus on how Fido is able to write
checks for his own bone and chew toys that his puppy paws can cash.
Let’s take this a step further shall we and discuss real life ones!
It was recently reported that celebrity designer to the stars Karl Lagerfeld has passed away last month. He leaves behind an estimated $100 million-dollar fortune. The media was speculating that his cat may inherit a chunk of that money. Holy cow! Or should I say, MEOW!!!
In addition, Real Estate heiress Leona Helmsley left her pet dog $12 Million in 2007. The will was contested and the pet received death threats, which caused money to be diverted for security! Unbelievable! Any who, the pet ended up receiving a mere $2 million after the case was settled. That sure buys a heck of a lot of Puppy Chow!
Can you believe that?! A pet that literally has their own
access to a line of credit to pay bills including for their own security guards!
Once credit cards started being more the norm, it exploded!
Once you turn 18, it used to be time to go down to the MVA and sign up to vote. Now, it’s when credit card offers come in the mail.
I remember when I got my very first credit card for $250! I
even had a secure credit card for $500. That’s a far cry from the $20k, I was
approved for last year.
After the 2008-2009 financial crisis, credit dried up faster than nail polish. They were slashing limits faster than prices at Wal-Mart! Then it slowly started creeping back up. As it stands, credit card debt is now higher than it was in 2009! It stands now at over $1 trillion! The current outstanding revolving debt in the U.S. is $1.05 trillion.
The average debt in America has increased 18.5 percent since
2013! In 2015, the average American was in $5,700 dollars of credit card debt.
As of the end of 2017, it is up to $6,354.
The laissez faire capitalism in America allows you to
actually have access to $100,000 of credit while only making less than half of
that.
Debt is crippling. It
can have long lasting consequences if not handled quickly. You have to pay off debt
ASAP.
A guideline I use is anything you have that is under 7%, you do not have to pay off right away if you have other higher interest debt to take care of. However, if that debt is higher than 7%, you need to attack that debt like your financial house is on fire. Your financial destiny is depending on you to get your financial house in order.
Once you have the debt paid off, then you can build your
financial foundation on solid financial footing. All the money going to
creditors will now stay in your bank account and can be invested.
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.
This $100,000 bottle of water costs as much as a house in some parts of the country. Heck, even the world!
Thirsty? Well, this bottle of H20 will only cost you $100 grand. You heard me. $100k! Yes, that’s USD.
That’s the most expensive sip of water I have ever heard.
What if I accidentally spill it? Oh, to perish the thought!
I was sure it was a joke. Like how Jokey the Smurf brings you a present and then you find out it’s a gag gift. You know, something like that.
I can’t even fathom parting with that much cash for something you could get for free out the tap at home or at any restaurant.
Who are the marketing geniuses who thought of this? Who is the target market? What are the demographics?
Who in their right mind would pay $100k for some water?!!
WHO WILL BUY $100K BOTTLE OF AQUA?
Fine. I’ll bite. Who are they?
I guess you could say this water is targeted at a high-end clientele. Those that have pockets so deep, that smacking down that type of scratch is no problem, as all they have to do is whip out their Centurion Black Card. Swipe, sign, and done.
The company actually got rapper 2 Chainz and DJ Diplo to taste the water. They have both sold millions of albums. So, sure you could market to them. Market to the affluent is a must at this price point.
If you don’t have to bat an eyelash at this type of transaction, then good for you.
The rest of us reasonable mere mortals are not buying it. Where did this water come from? Is it magic water from the fountain of youth? Will it heal all maladies or whatever ailments you have. Basically, will it cure what ails you and eliminate the need for the ever increasing cost of healthcare?
Could I rub it and make 3 wishes?
Like in the show Gargoyles, this isn’t Aladdin’s lamp. All things have their limitations. Even the character called Puck agrees with me. Check it out 30 seconds in.
MAKERS OF THE MOST EXPENSIVE BOTTLE OF WATER IN THE WORLD
The company is called Beverly Water. They are located in Beverly Hills, California. The water is called Beverly Hills 90H20. It is crafted spring water from the California Mountains.
Coined “The Most Expensive Bottle of Water in the World,” is clearly meant to entice people with deep pockets that this is a must have item.
Here is the description that I posted on their website:
Description
“The Most Expensive Bottle of Water in the World”
Limited to only nine bottles in the world, the Diamond Edition of the Luxury Collection of Beverly Hills 9OH2O is the ultimate in water. Designed by Jeweler to the Stars Mario Padilla, each exquisite bottle features a white gold cap set with over 600 G/VS white diamonds and over 250 black diamonds, totaling 14 carats. Each bottle comes in a custom secured presentation case together with four engraved Baccarat crystal tumblers, and it is presented in person by renowned water sommelier Martin Riese at a private water tasting anywhere in the world. In addition, the Diamond Collection package includes a one year supply of the Lifestyle Collection of Beverly Hills 9OH2O.
THE MOST EXPENSIVEST SH*T
There is a video posted of 2 Chainz and Diplo getting a tasting of the water from a, get this, water sommelier. It turned out as expected. Neither care to buy $100k bottle of water. Why you ask? It’s simple. It’s just water!
After, introducing the water to the two gentlemen, which is housed in a massive case, you get the feeling something is seriously off here.
Then comes reality.
THE $100,000 DOLLAR QUESTION
2 Chainz asked what everybody wants to know, “What are you paying $100,000 for?”
The white-gloved sommelier then points at the bottle cap.
You are not really paying for the water, but what the water comes in and with.
Which is a 14 real diamonds, 600 white ones, 250 black diamonds, and white gold.
For this diamond luxury experience, you’re getting the case, and 4 diamond baccarat glasses.
After I stopped laughing hysterically, I started reading the comments on the video.
The hands-down and absolute funniest part after watching the video is reading the comments section.
MY SENTIMENTS EXACTLY
Here are just some of the comments I saw that popped out at me.
Imagine how disappointed you were if you paid $100k for this bottle thinking its vodka
MBA lesson right here
If you can convince someone to buy a bottle of water for $100k. You deserve that $100k.
I will put some tap water in a bottle and sell it for 500k!
Marketing and BS.
Ima stick with my Aquafina😂😂😂
I’m no mathematician, but that’s more than 2 chains.
For those who didnt catch it, you are not paying 100k for the water. You pay 100k for the Diamonds and the gold on the Cap.
The glasses the diamonds and the case cost 99,999 and the water 1$
0$ water … 100k bottle cap
Man, that water better have the power to cure all diseases for that kind of price. 100K seriously???
I better become a mermaid after taking a sip for 100k
100k for a bottle of water? That sh*t better bring Jesus and 2pac back.
Meanwhile in Flint, Michigan…
This water better come from the fountain of youth.
Bottle of air 2billion dollars
One person put my exact thoughts, as I described above, into an elegant rebuke of buying water this freaking expensive.
MadeInVolantis 2 years ago
For 100k that water better turn me 18 again. For 100k that water better cure my thirst forever. For 100k that water better wash me of my sins. For 100k that water better make me a million dollars back somehow.
Well said.
Basically, it’s a $100k jewel-encrusted capped bottle with water inside.
Let’s think about this for a second. What could you do with one hundred thousand dollars? I’m about to tell you.
YOU COULD DO BETTER THAN BUY A DIAMOND CAPPED BOTTLE OF WATER
You could do all types of things with that kind of money. These are just some suggestions.
WHAT YOU COULD DO WITH $100,000
Start a college fund for underprivileged kids
Put every dime in the market and get historical ROI average of 7%; be a millionaire in 30 years (there goes that million bucks the commenter above was talking about)
Start a business
Donate $1,000 to 100 charities
Donate $10,000 to 10 charities
WHAT WOULD BE FUN TO DO WITH $100,000
Rent out a blimp over your old college campus, get $100,000 worth of ones and make it rain
Go to Vegas, rent out the Penthouse of an expensive hotel , and bet 10,000 on black
Get on a plane to Dubai, UAE, fly first class on the Emirates and visit every attraction
Visit Rome, Paris, China, London, and Australia just to get a keychain
Get back stage and front row passes to see your favorite artist in concert
Enter a professional poker tournament with a $10,000 buy-in
Walk up to anyone of the people collecting for the salvation army and give them a check for $25,000 (kind of like that scene in the movie Ghost)
Great scene. You will love it. No need to thank me for uploading it here.
If you have never seen the movie, then I highly recommend it.
WHAT YOU SHOULD DO WITH $100,000
Donate 10% to charity
Put a down payment on a piece of property
Pay off all or a large portion of your debt
Invest in the stock market like the S&P 500 index
Pay cash for college
Buy a car outright
Invest in your health
If you want to impress people, just show up to their events on-time and don’t complain.
And if you just so happen to get thirsty, stick with VOSS, Evian, or Deer Park. Can’t go wrong.
That’s just my $0.02, er ehh, I mean $100k money saving tip of the week.
Strength does not come from winning. Your struggles develop your strengths. When you go through hardships and decide not to surrender, that is strength. – Arnold Schwarzenegger
Arnold Schwarzenegger is one of the biggest movies stars in the world. His iconic roles in The Terminator, Predator, Total Recall, and True Lies are just some of his hit Hollywood blockbuster movies. During the 80’s and 90’s he raked in big bucks at the box office and cashed in big paychecks at the bank as a result.
In my quest to study the self-made, I decided to read up on the “Governator” himself, Arnold Schwarzenegger.
Arnold wrote his autobiography, written in 2012, entitled, “Total Recall: My Unbelievably True Life Story.” Clocking in at 656 pages long, it is a massive read. I actually completed this undertaking last December 2017. It took me 3 weeks to finish reading from cover to cover. In the book, Mr. Schwarzenegger actually lists his paychecks for his hit films. At one point, he was making $20 million per film.
How did he do it? There is only one word to describe it: unbelievably.
Here is his story.
ALL GREAT STORIES HAVE GREAT BEGINNINGS
The mind is the limit. As long as the mind can envision the fact that you can do something, you can do it, as long as you really believe 100 percent. – Arnold Schwarzenegger
Arnold Alois Schwarzenegger was born on July 30, 1947, in Thal, Styria, Austria. His father, Gustav Schwarzenegger, served in World War II. Arnold’s mother, Aurelia, was working at a local shop when she spotted his father in uniform. That was all it took for her to fall for him as she loved a man in uniform. I must admit, so did I.
His parents married on October 20, 1945. His mother was 15 years younger than his father as she was 23. They were strict disciplinarians. Arnold said in Austria the rod was not spared if a child was disobedient. In the book, he said his father would make him and his brother earn their breakfast by doing pushups or sit-ups. His father believed that the way to fix any problem was through discipline.
YOUNG EXUBERANCE
Arnold was an average student but, was popular and well-liked for his boundless energy, humor, and cheerfulness. He started playing sports and picked up his first barbell at age 14. He decided that bodybuilding would be his career. His deep interest in the sport took up almost all his spare time. At one point, he even broke into the local gym when it was closed and began to lift weights for a couple hours just to get in his workout.
Money was tight growing up. There was no inside plumbing or bathroom. They fetched water to bathe from a local well and one of the highlights of his youth was getting a refrigerator, where he said they would marvel at the opening and closing of the fridge door. When going shopping his mother only used cash and never bought anything other than the essentials.
Austrians believed in conformity and were not allowed to be individuals. However, Arnold had different plans. He was considered a rebel because he wanted to move to America and be rich. He stated he wanted to be somebody. Due to his rebellious tendencies and other issues, Arnold was never close to his father as his favorite was Arnold’s brother. However, he had a close relationship with his mother until her death.
A chance meeting at his bodybuilding coaches house would change his life. Arnold, in 1966, met bodybuilder and movie star Reg Park, his idol, and he went on to become his mentor. Schwarzenegger decided he would not only be a body builder, but also a movie star, just like Reg Park.
BARBELLS AND COMPETITIONS
Training gives us an outlet for suppressed energies created by stress and thus tones the spirit just as exercise conditions the body. – Arnold Schwarzenegger
Arnold would work out almost every day. Lifting weights became an obsession. He would break into the gym on weekends when it was closed and work out.
He couldn’t stand to miss a workout. Arnold has said he couldn’t even look himself in the mirror, if he missed a workout. That is dedication. This was 1961. By 1965, all Austrian males, at the age of 18, are required to fulfill one year of military service, but Arnold had other plans.
AWOL BODYBUILDER
While in basic training, Arnold learned he was able to eat meat every day. Growing up, his mother had a garden where she would grow vegetables so she could feed her family on a tight budget. They rarely ate meat. Once he was able to get protein on the daily, he was constantly growing out of his uniforms. He went up a size every month and required a new uniform several times.
During his service, he learned basic tank mechanics, almost wreaked one by not putting it in park, and learned to ride a motorcycle. He said those skills would later serve him well while doing the Terminator and other films. Arnold learned to become pretty fearless. He was scared, but he would push ahead anyway.
During his time in the military, a Junior Mr. Europe Contest came up. He went AWOL and served a week in military prison because he chose to attend. But Arnold won that title.
He later received a job offer to work and train in a gym as a bodybuilder. He used this information and his past transgressions to convince the military to release him and he received an honorable discharge. That competition in Europe made him famous and the Mr. Universe title was his ticket to America-the land of opportunity, where he felt he could become rich.
CALIFORNIA BOUND AND HOLLYWOOD DREAMS
Arnold was happy to leave Austria as he had been telling people for many years as a kid he was going to America, but no one believed in his dreams. But the day came in October of 1968, when he was headed to California to train at the infamous Gold’s Gym in Venice, Los Angeles. He could barely speak English, but at the age of 21, was going to America to live and work.
— ⛓ Old School Gold ⛓ (@OldSchoolGold) May 30, 2014
Arnold was able to get a role in a film in 1969, “”Hercules in New York”, which paid him $12,000. He continued to train from 1970-1974 non-stop. In 1970, he won his first of seven, Mr. Olympia titles.
EDUCATION IS JUST AS IMPORTANT AS PHYSICAL FITNESS
In the 1970s, Arnold is enrolled in college throughout the decade. He bounced around to several taking math, English, science, and eventually earned his bachelor’s degree from the University of Wisconsin-Superior in 1979. It took about 10 years, but finally he had his college degree.
He also stated in the book he would write down his goals on an index card at the start of every new year.
At one time in his life, he met Pope John Paul II in 1983, they talked about workouts. The pope rose daily at 5 a.m. in order to stick to his regimen. It was something like 300 push-ups. If he could do it, this book says, you can do it, too. This is where I got the idea to start my daily fitness routine. I, personally, like boxing.
ALL ROADS LEAD TO HOLLYWOOD
All roads not only lead to Rome, but in Arnold’s case also to Hollywood, California.
OLYMPIC CHAMPION
Arnold also competed in the Olympics and won the title of Mr. Olympia 3 times. After the 1971-74 competitions, in 1975, filmmakers convinced him to do the bodybuilding film Pumping Iron.
The worst thing I can be is the same as everybody else. I hate that. – Arnold Schwarzenegger
Arnold is big into frugality. He saved every dime he could from any winnings he made while competing. When he first got to America, he had $27,000. That is the equivalent of $173,000 (adjusted for inflation) in 2017. His motto was turn every dollar into two.
Arnold invested his money in real estate. He researched for 3 years and worked with an agent before finally setting his sights on putting a down payment on his four-unit apartment building at the cost of $214,000. Then he sold the building the next year for $360,000. Then immediately put his profits into a new 12 unit building. He did this to avoid the huge tax bills of his profits.
The Los Angeles real estate market was booming. You could make $100k profit in just a year or two.
Arnold then bought a 36 unit building, followed by a 100 unit building. Within about 10 years, Arnold Schwarzenegger was a real estate tycoon and millionaire.
This was close to 7-8 years before he would become a bankable Hollywood action star. He was able to be pickier and choose plum movie roles because he did not have to take any role that came his way. He always believed in going to the top. Go where its empty and you can chart your own path. He aimed to be the leading man.
CONAN
“The idea is not to live forever, it is to create something that will.” ― Andy Warhol.
After small roles in various film and television, he was offered the lead in his breakthrough film role of Conan the Barbarian in 1982. The movie was a hit.
Love the painted look.
Then he starred in the sequel, Conan the Destroyer, in 1984.
For me life is continuously being hungry. The meaning of life is not simply to exist, to survive, but to move ahead, to go up, to achieve, to conquer. – Arnold Schwarzenegger
Arnold got to meet and work with lots of people. He feels that building relationships is key to having a successful, happy, and fulfilled life. Some of those people include, Linda Hamilton, Sharon Stone, Michael Ironside, Vanessa Williams, and the late Andy Warhol.
THE TERMINATOR
I’ll be back. – Arnold’s famous line as The Terminator
Arnold was offered a role in a film where there is a futuristic war between man and machines. At the meeting, with Gale Anne Hurd (The Walking Dead) and James Cameron (Avatar), he was convinced that the role of the T1 was pivotal, if the film was to be a success.
He was right. Listen to Ah-nuld! I just watched the film a few weeks ago. It still holds up.
Here’s one of my favorite scenes from the film; it’s Kyle Reese, played by actor Michael Biehn. He did an incredible job as he also did in the film Aliens.
Arnold Money Lesson: When Arnold met his future wife, Maria Shriver, he accidentally left his wallet at home. She had to write him a check for $70, to pay his train ticket home. He paid her back and wrote her a thank you note. In addition, he learned a valuable lesson. Always have cash. From that moment on, he would carry $1000 cash and a high or no limit credit card. He learned the motto of this blog, that cash is king.
He then decided to do a film by new first time director, Jim Cameron, called The Terminator. It went on to gross $80 million and Arnold was officially a bonafide movie star.
Fun Fact: Arnold likes to tell jokes. He decided early on that his films should include quips that are memorable one-liners and catchphrases. Like this, “Hasta la vista, baby” — Terminator 2: Judgment Day.
I actually heard that same phrase in a Jody Whatley song Looking For A New Love from her self-titled 1987 album. That was 4 years before T2.
HOLLYWOOD MAKING IT RAIN DOWN ON ARNOLD
“Money doesn’t make you happy. I now have $50 million, but I was just as happy when I had $48 million.” – Arnold Schwarzenegger
From there it just keeps getting better. He’s a hit factory and the paychecks got bigger and bigger. Arnold made $250,000 for Conan and $360,000 for Conan 2. Then took a pay cut for The Terminator, at $75,000. Arnold earned $1.5 million for 1985’s Commando, $3 million for 1987’s Predator and $8 million for 1988’s Red Heat. Bang, bang, bang! That’s all money in the bank.
He hit the deca-million ($10 million USD) paycheck mark with Total Recall in 1990. Then made $15 million for Terminator 2 and True Lies. Arnold eventually hit a $20 million-dollar payday in 1996 with Eraser. Yes, that’s US Dollars!
Source: themovietimes.com
He is estimated to have a net worth around $400 million dollars.
And there you have it.
At the end of the book, he also listed Arnold’s Rules for Success.
Here is Arnold talking Life’s 6 Rules during the Governor’s 2009 USC Commencement Address. He said be unique, be a maverick. Maybe even an outlier?
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.”
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.
“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.”
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.
“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.”
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.
Fun Fact: Did you know @jayleno started his career making minimum wage at McDonald’s? Here are 5 things the self-made millionaire did that catapulted him to success: via @CNBCMakeIthttps://t.co/Y7ewRMHNXV
“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.
“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.
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…
