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Money and life advice from Nike founder Phil Knight

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“You are remembered, he said, prophetically, for the rules you break.” ― Phil Knight, Shoe Dog


Nike is one of the most valuable and recognizable brands in the world.

It has been valued at over $20 billion.

I previously wrote briefly about the co-founder in the post How being an outlier can make you rich.

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.

Remember the post I did on People are the greatest assets? Well, this is why. Keep reading.

Coach Bowerman continues to be a huge asset. His large reputation keeps growing – two of his runners medal in the 1964 Olympics. And he keeps tinkering with shoes.

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?

I did some research and located this article from Business Insider.

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

Read my post Wealth comes from doing not luck.

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.

They live their dreams. They just do it.

For Nike, there is no finish line.

Careers, Celebrities and Money, Credit Cards, Financial Freedom, Financial Independence, Investing, Real Estate, Saving, Self-Made Millionaires, Wealth

How Arnold Schwarzenegger Totally Recalls making $20 million-dollar paychecks

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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.

I actually mentioned Arnold in a couple posts I wrote, Forget casinos, bet on yourself and Money Lessons I learned from Jay Leno.  Now, I am going to talk about how he became self-made.

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.

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.

SAVING MONEY AND INVESTING

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?

How being an outlier can make you rich

So let’s recap…

  • Start with a dream
  • Write it down
  • Say out loud what you want to do or be
  • Work hard
  • Break the rules, not the law
  • Don’t be afraid to fail
  • Exercise
  • Weight lifting builds muscles and confidence
  • Trust yourself
  • Ignore the naysayers
  • Save and invest
  • Real estate can make you a fortune
  • Financial independence equals freedom
  • Give something back
  • Turn every dollar into two
Celebrities and Money, Entrepreneurship, Financial Freedom, Financial Independence, Self-Made Millionaires, Wealth

How being an outlier can make you rich

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

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

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

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

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

That reminds me of this saying from The Rock.

I also notice that mavericks tend to get rich.

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

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

WHAT IS AN OUTLIER?

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

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

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

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

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

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

WHO ARE OUTLIERS?

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

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

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

Steve Jobs

Photo: Forbes.com

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

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

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

Bill Gates

Photo: Forbes.com

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

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

Forbes lists Gates’ net worth at $96B.

LeBron James

Photo: Forbes.com

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

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

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

Phil Knight

Photo: Forbes.com

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

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

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

Walt Disney

Photo: Forbes.com

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

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

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

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

HOW CAN BEING AN OUTLIER MAKE YOU RICH?

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

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

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

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

Keep them wanting for more.

They say the riches are in niches.

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

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

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

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

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

GO AHEAD AND TAKE THE ROAD LESS TRAVELED

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

Many people have made a fortune off being different.

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

Let’s see some numbers for clarity and perspective.

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

Rookie Salaries in the NFL

Source: FootballNextLevel.com

Highest Paid Players in NFL

Source: Spotrac.com

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

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

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

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

Budgeting, College, Philanthropy, Saving

Generosity can go a long way

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“Think of giving not as a duty but as a privilege.” John D. Rockefeller

“I believe that it is my duty to make money and use it for the benefit of my neighbors. This is what my conscience tells me.” John D. Rockefeller

“No one is useless in this world who lightens the burdens of another.” Charles Dickens

Every now and then I read stories that just lifts my heart. Recently there have been articles of heroes saving lives and people donating to charitable causes close to their heart. It reminded me of a story I heard about many years ago, but is still very inspiring today.

This article was reported on the front page of the New York Times in 1995:

All She Has, $150,000, Is Going to a University

She may be gone, but her act of charity is remembered. This tweet is from 2017. Ms. McCarty passed away in 1999. Therefore, the good you do is still remembered long after you are gone.

Her name was Oseola McCarty. And here is her story.

MEET OSEOLA MCCARTY

Oseola McCarty was born on March 7, 1908 in Mississippi. As a young child, she had to quit school in order to tend to a sick family member. Quitting school in the sixth grade, she went straight to work as a laundress like her grandmother before her. She would go on to do this for about 75 years. Leaving school was one of her biggest regrets. She wanted to go back, but all the kids in her class had moved on ahead and so she didn’t go back because she wanted to be with her class. She decided to just keep working.

HOW SHE SAVED $150,000

She was never idle. She was working since she was a young child until she retired in 1994. She worked for many years and just put almost every dollar she made into the bank. She learned to save from her mother and kept the habit for life.

The following is what she did over 70 years:

  • She took one short vacation to Niagara Falls
  • She did not travel
  • She did not fly on planes
  • She did not stay in hotels
  • She never owned a car (she walked everywhere)
  • All her immediate family passed away and she never married or had children
  • She had lived alone since 1967
  • She lived in a family home her uncle gave her in 1947 for the rest of her life
  • Money she received from the passing of her mother and aunt went into savings
  • She spent almost nothing and lived very frugally
  • Repaired instead of replaced items for brand new ones
  • Covered her old bible in Scotch tape to keep Corinthians from falling out
  • Cut wholes in her shoes if they did not fit
  • Bought her first air-conditioner in 1992 and only uses it when company comes over
  • Owns one tiny black and white television (that only gets one channel) but she rarely watches
  • She did not retire until she was around 85 years old
  • Keeps her utility bills low
  • Never subscribed to a newspaper because it cost too much (an extravagance)
  • She would pay her bills and deposit the rest of her money (even coins) into savings
  • Over time this grew into $280,000

How she donated her life savings

One day she decided she would gift her money to a local university. Not as a bequest, but immediately as she wanted to be alive to see a recipient graduate from college as he one wish. In July 1995, she would go on to start a scholarship fund to help finance college tuition for students, preferably of African-American descent, who would be unable to attend college due to financial hardship. at the University of Mississippi. When asked why she chose that school, she simply said, because it was close.

A banker at one of her financial institutions assisted her. In 1995, he wanted to help an 87-year-old Ms. McCarty, but was unsure how to assist a woman with a fifth-grade education through estate planning. He came up with the novel idea of giving her 10 dimes, each representing 10 percent of her assets. He gave her five slips of paper to write down the names of the beneficiaries and divide up the coins. She deposited one dime to her church, one for each of her cousins and the last six for a scholarship fund, after setting aside enough money to live on.

She signed an irrevocable living trust and the bank managed her funds while she received a regular check for her living expenses.

WHY SHE DONATED

She decided to give because she knew the importance of education. She had struggled all her life doing manual labor (scrubbing laundry by hand on a scrub board). She did not want that for the younger generation coming up so she gifted them money to help them not have to do what she did and get a degree she was never able to get herself.

FOR EVERY ACTION THERE IS A REACTION

The news hit the media and overnight she went from obscurity to a celebrity. She wanted no monuments or other recognition’s of her selflessness, but they came to her.

Once word spread of what she had done, it spread far and fast. Accolades and recognition for her act of charity in anticipation of her death was almost immediate. Goodness and kindness tend to spread. There was a chain reaction to her charitable action that had people wanting to reciprocate what she had done by also donating. This is what happened over four years:

  • She was honored by the United Nations
  • She received more than 300 awards
  • Contributions poured in from other donations adding almost $330,000 to her gift
  • Ted Turner donated a billion dollars to charity after hearing her act of philanthropy
  • She received the Presidential Citizen’s Medal, the nation’s second-highest civilian award
  • She received an honorary doctorate from Harvard University
  • She carried the Olympic torch through part of Mississippi in 1996
  • In December 1996, hers was the hand on the switch that dropped the ball in Times Square in New York’s New Year’s Eve celebration (also the first time she stayed up past midnight, rode an airplane, and stayed in a hotel)
  • McCarty received the Award for Greatest Public Service Benefiting the Disadvantaged, an award given out annually by Jefferson Awards
  • She was awarded an honorary degree from USM, the first such degree awarded by the university in 1998
  • McCarty was also recognized with an Essence Award and Patti LaBelle sang tribute to her during the ceremony at Madison Square Garden in New York.
  • She even met President Clinton
  • She became an author; she wrote a book called Simple Wisdom for Rich Living, published in 1996

Ms. McCarty gave out pearls of wisdom, if people wanted to listen, but mostly it was common decency and sense she had said. She also said you should know the difference between a need and a want. Just because something is free does not mean you need it. It is okay to turn down something that is free, if you really do not need it. ”There’s a lot of talk about self-esteem these days,” she once said. ”It seems pretty basic to me. If you want to feel proud of yourself, you’ve got to do things you can be proud of. Feelings follow actions.”

It was reported that her home will be turned into a museum.

When asked what she wanted to do with her money right before she donated it, Ms. McCarty replied: “I want to help some child go to college.”

And just in case you were wondering, the recipient of the very first Oseola McCarty award not only met Ms. McCarty in person to say thank you, but she also went to the University of Mississippi and graduated.  Ms. Oseola McCarty also lived long enough to get her wish: to live to see a recipient graduate.