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Taxes and Insurance

Why America Doesn’t Have Free Universal Health Care And A Look At Those Who Do

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Doctor, Luggage, Verbandszeug, Patch

Since candidates are coming out of the woodwork for the 2020 presidential election, let’s talk about the elephant in the room: Healthcare.

Regardless, of your political beliefs, most will agree that a fully funded functioning health care system is a must. You need hospitals that have basic medical supplies and more advanced equipment for surgical procedures.

Those things don’t come cheap.

However, other advanced nations have been able to make this happen.

The elusive Universal Health Care (UHC) that we Americans have been unable to have due to numerous factors. Primarily, for one reason: money.

Taxes are a huge component of making UHC a reality. That is how other nations are paying for it with varying degrees of success.

However, we cannot doubt Universal Healthcare’s popularity.

For example, it was recently reported that a Canadian family visiting America did not stop at any hospitals after they confirmed that their patriarch had died of a heart attack while on vacation.

Instead they drove for an ENTIRE DAY, with a corpse in the back seat to avoid paying the exorbitant healthcare costs here on American soil and the cost of shipping the body to Canada.

This is a TRUE story. I can’t make this stuff up.

Remember that article in the New York Times about The Velvet Rope Economy? The Doctor Is In. Co-Pay? $40,000.


Chris B. Murray for the New York Times The Velvet Economy article

That is the type of story that would scare anyone from going to the doctor in America.

So let’s talk about healthcare.

WHAT IS UNIVERSAL HEALTHCARE?

Universal healthcare means there is a health care system that provides coverage to at least 90% of citizens, typically paid for by the citizens of the country via taxes.

Here in the US, thanks to the Supreme Court’s decision to uphold the ACA (aka Obamacare), signed by former President Obama, the US has universal health care starting in 2014 using an insurance mandate system. But will it last?

Prior to 2014, the US no universal healthcare anything other than Medicare, but that is for the elderly.

However, most of the other developed nations do not make having a mandate necessary.

This is why the great healthcare debate rages on in the current White House. The Us is offering subsidies for healthcare and the current administration is not feeling it. But in other countries, no subsidy is necessary or rarely required, if healthcare is being funded by tax payer’s dollars. And we mean paying a lot of taxes.

We will get into that later.

WHAT COUNTRIES HAVE UNIVERSAL HEALTHCARE?

Doctor, Luggage, Verbandszeug, Patch

Have you ever wondered what counties offer the coveted universal healthcare, but you never took the time to look it up?

Well, now you can find it right here.

That’s right. I did the work for you.

There are thirty-three developed nations. Thirty-two of the thirty-three developed nations have universal health care, with the United States being the lone exception. That is until the Affordable Care Act came along.

Americans can regularly be heard talking about UHC. Why do other developed nations have it and we don’t? What is good for the goose should be good for the gander mentality.

Well, you are about to find out.

The following list, compiled from World Health Organization (WHO) sources where possible, shows the start date and type of system used to implement universal health care in each developed country. Note that universal health care does not imply government-only health care, as many countries implementing a universal health care plan continue to have both public and private insurance and medical providers.

Country                         Start Date   System Type

Click here for more source material on each country’s health care system.

Norway                               1912       Single Payer

New Zealand                    1938       Two Tier

Japan                                    1938       Single Payer

Germany                            1941       Insurance Mandate

Belgium                              1945       Insurance Mandate

United Kingdom           1948       Single Payer

Kuwait                                1950       Single Payer

Sweden                              1955       Single Payer

Bahrain                              1957       Single Payer

Brunei                                 1958       Single Payer

Canada                               1966       Single Payer

Netherlands                    1966       Two-Tier

Austria                               1967       Insurance Mandate

United Arab Emirates     1971       Single Payer

Finland                                 1972       Single Payer

Slovenia                               1972       Single Payer

Denmark                             1973       Two-Tier

Luxembourg                      1973       Insurance Mandate

France  1974                       Two-Tier

Australia                              1975       Two Tier

Ireland                                  1977       Two-Tier

Italy                                       1978       Single Payer

Portugal                               1979       Single Payer

Cyprus                                  1980       Single Payer

Greece                                 1983       Insurance Mandate

Spain                                     1986       Single Payer

South Korea                     1988       Insurance Mandate

Iceland                                 1990       Single Payer

Hong Kong                        1993       Two-Tier

Singapore                          1993       Two-Tier

Switzerland                      1994       Insurance Mandate

Israel                                     1995       Two-Tier

United States                   2014?    Insurance Mandate

Please be advised that the dates given are estimates. Universal care rolled out gradually in many countries. For instance, in Germany government insurance programs began in 1883, but did not reach universality until 1941.

WHAT TYPES OF HEALTHCARE SYSTEMS ARE THERE?

You may have never heard of some of the above types of healthcare systems. That is why the definitions are being provided here.

Single Payer: The government provides insurance for all residents (or citizens) and pays all health care expenses except for co-pays and coinsurance. Providers may be public, private, or a combination of both.

Two-Tier: The government provides or mandates catastrophic or minimum insurance coverage for all residents (or citizens), while allowing the purchase of additional voluntary insurance or fee-for service care when desired. In Singapore all residents receive a catastrophic policy from the government coupled with a health savings account that they use to pay for routine care. In other countries like Ireland and Israel, the government provides a core policy which the majority of the population supplement with private insurance.

Insurance Mandate: The government mandates that all citizens purchase insurance, whether from private, public, or non-profit insurers. In some cases the insurer list is quite restrictive, while in others a healthy private market for insurance is simply regulated and standardized by the government. In this kind of system insurers are barred from rejecting sick individuals, and individuals are required to purchase insurance, in order to prevent typical health care market failures from arising.

What is free universal healthcare?

Universal health care is a system that provides quality medical services to all citizens. The federal government offers it to everyone regardless of their ability to pay.

Which country has free medical care?

According to Forbes, The two advanced economies with the most economically free health care systems—Switzerland and Singapore—have achieved universal health insurance while spending a fraction of what the U.S. spends. Switzerland’s public spending on health care is about half of America’s, and Singapore’s is about a fifth of ours.

HOW ARE COUNTRIES ABLE TO AFFORD IT?

Now let’s talk about them taxes.

Let’s start with Canada. The Canadian Institute for Health Information (CIHI) believes Canada spent approximately $228 billion on health care in 2016. That’s 11.1 per cent of Canada’s entire GDP and $6,299 for every Canadian resident. That per capita rate would put Canada near the high end of what other advanced economies pay.

Is health care free in Canada?

To review, per The Atlantic, Canadian healthcare basically works like Medicare, but for everyone. Medical care is free, and it covers almost everything other than prescription drugs, glasses, home care or long-term care and dental care. (Most people have supplementary insurance such as private insurance from their employers or the government to cover those things).

Does Canada have good healthcare?

Coverage and access. In both Canada and the United States, access can be a problem. Studies suggest that 40% of U.S. citizens do not have adequate health insurance, if any at all. … Yet, even if some cannot find a family doctor, every Canadian citizen is covered by the national health care system.

How is healthcare funded in Canada?

Basically, healthcare is being funded at both the provincial and federal levels. Financing the system is provided via taxation both from personal and corporate taxes. Additional funds from other financial sources like sales tax and lottery proceeds are also used by some provinces.

Do Canadians really pay more in taxes than Americans?

According to Investopedia, U.S. federal income tax brackets range from 10% to 35% for individuals. On the Canadian side, the range is 15% to 29%. Overall, it’s a bit more expensive to live in Canada than the US, and much cheaper than living in Europe. Taxes are higher, but generally people are paid more to compensate.

However, data from the OECD show that Canadians are lower-taxed than Americans. According to the Huffington Post, in the U.S., the same family would pay 14.2 per cent in taxes, a tax rate some 12 times higher than in Canada.

A brief note on France.

In practice, less than 50% of inhabitants in France pay any income tax at all; only around 14% pay at the rate of 30%, and less than 1% pay at the rate of 45%. According to the French tax authority, taxes range from 14% up to 45% for the wealthiest citizens. Like here in the US, there are citizens that pay no income taxes based on wages or other tax credits or exemptions.

WHY ALL THE UPROAR OVER UNIVERSAL COVERAGE?

First, we know right off the bat that no two countries are alike. Those that are third world are still trying to get clean water and internet access; therefore, universal healthcare is a privilege as water is a basic human need and a right. You know which one those countries are focused on.

However, the United States is by far the RICHEST country in the world.

Even with the deficit being 18 percent greater than last year, as the US is spending $4.4 trillion and has a revenue of only $3.4 trillion, which is a $1 trillion-dollar annual shortfall. We are still the RICHEST.

That is still the case even with the US debt being $22 trillion, and America owing the Chinese $1 trillion of that huge number. We are still the RICHEST.

However, roughly 15% of the US population are uninsured or lacking in health insurance coverage in some form.

Therefore, from people looking from the outside in, they are scratching their heads as to why we cannot offer universal healthcare to its citizens.

As you know, it all comes down to money.

College, Financial Freedom, Financial Independence, Wealth

Why I think college should only be 8 months

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University, Boston, College

“No. I can survive well enough on my own— if given the proper reading material.” ― Sarah J. Maas, Throne of Glass

Where do I begin?

Let’s start here. The cost of college.

College is expensive. According to the College Board, the average cost of a 4-year in-state public university hovers around $9,970, at private colleges $34,740, and $25,620 for out-of-state residents attending public universities.

Many folks don’t just have $10,000-$30,000 sitting around in their bank accounts.

According to numerous reports, many Americans do not even have $400 for an emergency. How the heck are they going to come up with 10 times that amount or more for college?

I, myself, had to become an extremely massive saver in order to stop living paycheck-to-paycheck.

This required me to become very frugal and find ways to earn more, cut spending, or both from my household budget.

Most of my problem was the revolving credit card debt I had. So, I had to come up with a plan to get it paid off. Every time I paid off one debt, I started saving that money.

I went from saving $1 a day to $13,000 a year.

Want to know how I did it?

See my post How Millennial Money inspired me to start saving $13,333.06 a year

What I really noticed about college besides just the price was that many of the things we’re learning came from equally expensive textbooks. Couldn’t I have saved tons of money by just skipping college and reading the textbook instead? Literally, all I would have needed is the syllabus of the course.

I went on Amazon to see books about the cost of college being worth it. It is right? Well, maybe.

Image result for ivy league admissions chart

The point I am trying to make with this article is to examine the following:

  1. Challenge the conventional wisdom that college will solve all your problems
  2. Going to college will make you rich
  3. Prestige is to be pursued at all and any cost

THE COST OF COLLEGE

It has been well-documented that college is coasting more and more every year.

The amount of student loan debt in the United States alone stands a $1.5 trillion.

I cannot even wrap my head around that number. Basically, it means that many people are either going to be paying back their loans for a long time or will not ever be able to repay them. That is a sad fact indeed.

We are mortgaging our young people’s future.

Many are unable to buy homes, start families, get married, and put down roots.

The cost of college is especially hard to manage for those that are of low-income. The issues of poverty do not stop with a college acceptance letter.

We are starting to create a reality in where the poor inherit their parents’ poverty while the rich hoard opportunities for their kids.

That glass floor is real. When poor kids are getting 1200 to 1600 SAT scores and pulling hard A’s but still unable to graduate, while trust fund babies are barely pulling soft C’s is just ridiculous. That means, a rich kid can get a college degree simply because their parents have wealth, income, and resources.

I have heard stories of low-income college students dropping out for owing less than $1,000 to get their degree. Frankly, this saddens and alarms me.

And I am not buying avocado toast at $10, according to one politician, who will remain nameless.

The cost of a Bachelor’s (BA/BS) degree is just too darn expensive. The worst part is that an education is not an equalizer. Just because you went to Harvard doesn’t mean you are going to get the corner office. That fancy C-Suite is the carrot being dangled in front of all those Ivy League hopefuls.

Many do not make it there.

Don’t believe me.

Check this out.

When I looked up books on colleges, admissions, and the Ivy League online, I found the following titles:

  • Excellent Sheep
  • Nudge
  • No Sucker Left Behind
  • Where you go is not who’ll you be
  • The Chosen: The Hidden History of Admission at Harvard, Yale, and Princeton
  • The Price of Privilege
  • Paying for the party
  • Pedigree Elite: How Elite Students Get Elite Jobs
  • The Blessing of the B Minus
  • Academically Adrift
  • Winners Take All
  • Generation Debt: How Our Future Was Sold Out for Student Loans, Bad Jobs, No Benefits, and Tax Cuts for Rich Geezers–And How to Fight Back
  • Equity and Excellence in American Higher Education
  • How to Raise an Adult
  • iGen: Today’s super connected kids are growing up Less Rebellious, More Tolerant, Less Happy – And completely unprepared for Adulthood

I have read a few of the books listed above. Many are eye-opening recounts of their experiences with elitism, the Ivy League, college admissions, debt, student loans, finances, etc. Paying high prices, as much as $100 an hour for instruction, for college, taking on tons of debt and then receiving low starting salaries.

Stagnant wages and student loans are a dangerous cocktail.

The one book that still haunts me is No Sucker Left Behind. In this book, he describes college as a rip-off as he feels that colleges are involved in price-gauging schemes. Colleges, in his opinion, have become profit-obsessed businesses with an approach that is more reserved for used car salesman.

There are some Ivy Leaguer’s that become Corporate America rock stars. However, the majority go on to careers in the same type of jobs that those that do not go to top tier colleges.

COLLEGE EARNINGS

You think the Ivy League is the only way to go. Well, think again.

You hear all the time that a college degree means higher earnings, like $1 million more in income over a working lifetime. What you do not hear are the tales of people paying $100,000 for that sheepskin and then getting a $35,000 starting salary right out of college.

A blogger by the name of Sam has a website called Financial Samurai. He wrote a very eye-opening article called What If You Go To Harvard And End Up A Nobody?

He looked up profiles of people that went to Elite Schools.

Mostly more of the same from elites: people chasing money.

Surprise, surprise many end up in investment banking and consulting. If places like Harvard are the playgrounds of the rich, then places like investment banks are close behind. The Elite School graduate sandlots.

I have come to believe that you should pursue what is in your heart and your God given talent. Whatever that may be. God does not give anyone anything he doesn’t want them to use. Sacrificing doing any less than your best is to sacrifice the gift. Figure out what you are good at and then pursue that! The money tends to follow.

Some studies have followed, like the one above, people who attended Ivy League schools and others accepted to those schools but who chose lower ranked schools instead.  The result: There wasn’t a difference in lifetime earnings.  In other words, Ivy League caliber people don’t need an Ivy League education to have high earnings.

WHY FOUR YEARS OF COLLEGE?

Remember that $100 an hour for instruction that I previously stated? Due to that, the real cost of college is costing some students $100,000 a year, according to the book No Sucker Left Behind. So, that is what part of the reasoning behind four years is. Collecting the tuition and fees.

The BA/BS degree takes no less than 120 credits to complete.

Why is this?

Should we not question this? I get it. You do not want a doctor that is immature performing surgery on you. However, I value work ethic and experience over age.

Why not have a degree take 48 credits to complete?

How we would do this is to cut out all the unnecessary courses one needs to graduate. Forget the gen eds and endless electives. Stick to what we need to graduate.

A college degree should be done as quickly as possible so that people can get out there and work. Most families do not have 4 years to let junior go off and explore. They need him out there working and bringing home the bacon today!

I read an online forum called college confidential where it asked why is college in America so long. Great question. Here are some of the responses. This is how it went down.

Why is it that it takes so long to get a professional degree in the US?

In order to study Optometry or Medicine or Dentistry etc you need to do 4 years in college first, not even 1 or 2 years but 4 years whereas in the UK the 16-18 education is enough to prepare you for it.

People may want to start/support a family and at the same time pursue their passion but the length of study is off putting.

Answers were the following:

Gen eds.

The US is looking for mature people to be their doctors and lawyers, not a 21 year old whose frontal lobe is not yet fully developed.

If you have many AP/IB credits, you can get your degree in 3 years, too.

I would not want my doctor/dentist to have had only 1 year of formal education.

It’s a business. The more classes one is required to take, the more money the school makes.

What I suggest is that colleges get straight to teaching you all you need to know in your field. This would cut down on the time and expense of school.

And as for those who say people need to mature. Sure, I’m all for that, but how many people know 30 year-olds that are still wet behind the ears? Lots.

If you want people to mature, put them to work. Nothing makes people grow up faster than responsibility and accountability.

If maturity is really an issue, then have people start in at the bottom.

Nothing beats entitlement out of you like taking orders, scrubbing toilets, and fetching coffee.

Make people work their way up. After college, they could apprentice and work while learning their jobs. Get paid to train and work instead of paying for more training. It is just that simple.

I think college should allow student s to do an intensive 8 months and 48 credits

You would take 4 three-credit classes every 8 weeks. This would mean doing 4 eight-week semesters instead of 8 three-month ones. You would earn 12 credits every 2 months.

A college schedule could be like this:

Year One. English, Economics, major, major.

Year Two. Economics, Science, major, major.

Year Three. History, Math, major, major.

Year Four. Economics, major, major, major.

You see what I did there. I focused on the major and getting people out of college. That should be the point of college, right?

Why the focus on finance? Other than the fact Greenbacks Magnet is a financial blog, it just makes sense to teach people about money as they have to manage it for their whole lives.  

After 8 months, you earn 48 credits and graduate. That took less than one year. It also saves you heaps of money. If four years costs you $40,000, then 8 months should run you $6,667. That is huge savings!

I was gobsmacked to hear of doctors owing $300,000 to $1 million in student loan debt. Do you know what type of interest you pay on that kind of debt? It’s immoral.

Interest of 5% on $1,000,000 is $50k a year. That means after income taxes you have to pay $50,000 just to pay the interest on this debt. To service this type of debt, you would have to pay more than $50,000 a year just to touch the principal.  

I remember reading one lawyer say that he expected to have that student loan bill tacked to his coffin.

Just utterly insane!

 PRESTIGE AND CLASS

I read a book called Class Matters by the New York Times and Bill Keller. The book discusses how people chase money and prestige. Class determines everything about you: where you live, who you marry, what you do to earn a living, where you shop, and who your friends are.

The zip code you grow up in can ultimately make or break you.

In the book, it discusses how Americans have long thought of themselves as unburdened by class distinctions. There is no hereditary aristocracy or landed gentry, and even the poorest among us feel that they can become rich through education, hard work, or sheer gumption. And yet social class remains a powerful force in American life.

Class―defined as a combination of income, education, wealth, and occupation―influences destiny in a society that likes to think of itself as a land of opportunity.

What was jaw-dropping was this part of the book: And we see how class disparities manifest themselves at the doctor’s office and at the marriage altar.

For anyone concerned about the future of the American dream, Class Matters is truly essential reading. I agree with that assessment given to the book.

THE CREDENTIAL RACE

Grades are important. Sort of. Those getting straight A’s have to conform. Visionaries are not conformists. A New York Times (NYT) article quoted Dr. Karen Arnold as saying, “Valedictorians aren’t likely to be the future’s visionaries.”

The NYT article also noted the following:

This might explain why Steve Jobs finished high school with a 2.65 G.P.A., J.K. Rowling graduated from the University of Exeter with roughly a C average, and the Rev. Dr. Martin Luther King Jr. got only one A in his four years at Morehouse.

THE REAL GRADUATION RATE

Did you know that the average graduation rate is 6 years?

Roughly 57% of students graduate in 6 years. Only 20% of American students graduate in 4 years.

Most students are not even graduating in the already exceedingly long period of 4 years’ time.

According to Complete College America, for a non-flagship public university, only 19% of students graduate on time and even at flagship research public universities, the on-time graduation rate is only 36%. Only 50 of the more than 580 public four-year institutions have graduation rates above 50%.

According to 2013 data from the University of Texas at Austin, students who graduate on time will spend 40% less than those who graduate in six years.

That means more time out of the work force and more debt.

According to Forbes, staying out of debt and saving are the best ways to build wealth.

WHY SHOULD COLLEGE BE 8 MONTHS?

Why can’t you do your 10-year plan in 6 months? – Peter Thiel, angel investor of Facebook

I whittle it down to this one reason: No student loans or a lesser amount of them.

Building wealth requires you staying away from and out of debt.

They say student loans are good debt.

I say that all debt is debt. You must repay it. Not having to pay back $20,000 or more of debt with interest is life changing.

If you want to be wealthy, stay away from debt. Save every penny. Learn to turn every dollar into two.

Good Luck!

College, Relationships, Wealth

Money advice from Gossip Girl

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Earn the spotlight on your own merits. You’ll feel better. – Serena

I was reading a book when I decided to take a walk down memory lane and watch Gossip Girl on Netflix.

For those of you that may not know or remember the show, Gossip Girl was a show about privileged American socialite teens at an elite and exclusive academic prep school in Manhattan’s Upper East Side (UES); whose every move was texted out through an eblast via tips to  an anonymous site called Gossip Girl.

What is Gossip Girl and what it does?

What’s the difference between gossip and scandal? So glad you asked, UES Forever. Anyone can commit a minor indiscretion and generate a day’s worth of buzz. But in order for gossip to birth a true scandal, it requires the right person to be in the wrong place. – Gossip Girl

The show was on the WB, then the CW, and aired from September 19, 2007 through December 17, 2012. The show was narrated by Kristen Bell (as Gossip Girl). Scandals, scoops, and hemlines run amuck. The show may have had a serious lack of ethics, but it did make for some interesting television.

Gossip Girl is based on a popular book series of the same name written by Cecily von Ziegesar. The adapted television series in 2007 came about from the book series she started in 2002.

Gossip Girl will always have a special place in my heart.

It was in 2007 that I heard this line from the show:  You know, Dad, there’s this thing called MySpace where you can post all of this information online. Save some trees, have a blog. – Dan Humphrey

 It peaked my interest in blogging. Then, I started this one, Greenbacks Magnet, 9 years later.

Some of the dialogue may be a bit harsh in its tone and delivery, but there was some truth behind some of their words.

Gossip Girl likes to keep things classy and somewhat true. – Serena van der Woodsen played by Blake Lively

Serena is so grateful because she likes to see the best in people. I like to see the truth. – Blair

So, let’s get right into it.

MEET THE MONEY PLAYERS

You got me thinking. If my class is so important to you maybe I ought to make it worth your while. So for the next seven weeks it’s fewer models and martinis, more flow charts and footnotes.– Colin Forrestor played by Sam Page

Last month, on Thanksgiving Day, I decided to watch some Thanksgiving themed movies and television episodes. And I settled on watching Gossip Girl.

As GG fans know, it just hooks you in with all the drama and high fashion that’s fun to look at.

The music was pretty good too. Found the GG soundtrack for music featured in every episode here. 

The series follows Upper East Siders throughout their never ending drama filled lives that is often self-inflicted. It Girl Serena van der Woodsen is centered around it all and is the star of the show. Her friends and family make up the rest of the cast.

One of my favorite scenes is actually from the first episode of the series. It was a face-off that was incredible between two young women and it set the tone for the show.

The 4 top-billed (in my opinion) and main cast includes the following:

Blake Lively as Serena van der Woodsen AKA S

Leighton Meester as Blair Waldorf AKA B

Chace Crawford as Nate Archibald AKA Golden Boy

Ed Westwick as Chuck Bass Always

If you pay close attention to their conversations, they are dropping some serious money gems.

These little nuggets of life and money wisdom, when interpreted and applied correctly, could transform lives and bank balances.

Let’s begin.

WORK FOR WHAT YOU WANT

Never in my 16,982 hours of schooling have I ever been sentenced to detention. – Blair

Throughout the show, the main cast is always discussing their futures and going to college.

It was almost incessant in the amount of pretentious ponderings of how to be sartorially correct while interviewing for a top spot as a Yalie. And yes, that is a quite accurate assessment of the character known as Blair on the show.

Blair would look and act so innocent and demure like she couldn’t melt butter, but her stare and looks were as cold as ice. Very entertaining.

Here she goes on one of her tirades.

I am so a better fit for Yale than that Rory. – Blair

Now, she’s belittling and disparaging the character of one of my favorite shows Gilmore Girls.

Check out my posts where I talk Gilmore.

Mega Millions Win or Bust 

Money and Life Lessons I Learned from CBS Storybreak’s Yeh-Shen

How to navigate Universal Studios on a budget and like a boss

But enough of the $50 words. Let’s talk about the rest of the show.

They attend the fictitious Constance Billard School for Girls and St. Jude School for Boys. In addition, throughout the show you may hear them casually drop names of other schools.

In the Gossip Girl (book series) — it contains the line “two little Sacred Heart girls in their cute red and white checked pinafores were walking an enormous black Rottweiler” on page 86 in the first novel of the series.

Many of the parents are part of high-society and are on boards of prestigious organizations, own businesses, and live in penthouses. They go to great parties, opening nights to the ballet, and fashion week.

You get the impression that these kids know to base their lives around money and making sure to earn piles of it is a must.

They are tireless paragons of poshness. The parties are lavish, the lifestyle is glamorous, and the fashion is couture and expensive. Makes for a great show.

What I noticed was that everyone in one way or another was working hard at trying to make their own way in the world apart from their rich and or famous families.

They chased their dreams relentlessly. Like a boss.

And made huge sacrifices to get what they wanted.

Great leaders only need three hours of sleep! – Blair

They worked, started or interned at major businesses, magazines, for fashion designers, newspapers, literary writers, politicians, and fashion houses.

You’re not likely to get or keep those gigs for long if you are playing around.

“When and if we end up together, it has to be as equals.” – Blair

Yes, indeed. Be independent.

BET ON SELF

Here’s my advice: Have a little faith, and if that doesn’t work, have a lot of mimosas.– Blair in the Wild Brunch Season 1 Episode 2

My family is really into waffles. – Jenny Humphrey sister of Dan Humphrey played by Taylor Momsen

If you want something, go get it. Have some faith in yourself. And good food and conversation go together.  I have learned a lot about people when having lunch with them. It’s a great way to build relationships. My favorite meal is brunch. I too love waffles!

See my post, Forget casinos, bet on yourself for more on this topic.

THE SO-CALLED ELITE

Their membership is so restricted, it makes Soho House look like a halfway house. – Blair

They say of you want to increase membership to something then increase the selection criteria.

The Ivy League have made this an art form. As you see on this show, even the wealthy were concerned about their college admissions. There was even some talk of donations to a school to get in. In the end, you see deep down, we all have our insecurities. Accept it, and move on.

I have learned that I am no better than anybody else, but I am always just as good.

KNOW YOUR WORTH

You deserve someone who would move mountains for you if he had to. – Blair to Serena 

Normal people don’t get an endless number of chances, no matter the situation. That’s just you. – Dan to Serena

I have heard people say that well-behaved women seldom make history. At least that is what Eleanor Roosevelt said. I guess you can take her word for it as her husband FDR made history.

“I have an idea for you: quit. Your boss is a bi*ch. Let’s go to lunch.”

I have actually done just that very thing. I quit a bad job. Got a better job. And never looked back.

 “I’m not a stop along the way, I’m a destination.” – Blair

That line could be someone’s Bumble Bee bio. I call it sophisticated confidence.

“He ended up treating me like something he owned instead of something he earned.” -Blair

You’re worth more than a guest lecture fee, everyone knows that. – Dan to Serena

Well put. Damn straight!

Be unique. Have your own voice. Be you.

See my post, How being an outlier can make you rich

How being an outlier can make you rich

YOUR INCOME

A man who own a tuxedo shows that he has the means and can afford to provide for his family – Blair in Belles Du Jour Season 4 Episode 1

One of my favorite lines from the show comes from none other than Nate Archibald while talking to Chuck Bass.

Excuse me? Where’s my boy? “Seal the deal.” “Tap that a$$.” “Money marries bigger money.”

Wow. Money marries bigger money. That’s kind of cold, but ok.

I could care less about his Bassets and probably he’s filtering his assets through some foreign government so I won’t know. – Blair on Chuck Bass.

S: So you hired escorts? B, you couldn’t just tell your mom you don’t have friends at NYU?

B: Prostitutes are people, too, and they have a lot of disposable income. – Serena and Blair

Yes, people are focused on income, A LOT.

Jane Austen also so eloquently puts how much emphasis people put on income in two of her novels. And also how to treat others with or without money.

FOR THE LOVE OF HEADBANDS

I know you disapprove of me, but can’t you at least do so in a tuxedo?– Lily van der Woodsen played by Kelly Rutherford

This show loves their tuxedos. And themed parties. Masquerade. Kiss on the Lips. You name it.

It is often said when you look good, you feel good. Well, I concur. You feel more confident as well.

I remember going to a job interview where some folks didn’t take it seriously. I wore a nice dress and some of the men wore suits while others wore jeans.

After I got hired and when I later started the job, I noticed on my first day that all the people that got hired were the ones that were well-dressed.

Leighton Meester Shopping GIF - Find & Share on GIPHY

Piece of advice: lose the tulip. – Chuck

If you know one thing about GG, you know it’s all about the fashion.

The well-heeled wear nice heels. Blair was known for her love of headbands. People were always giving her grief about it.

Your era is over, and so is that headband. – Jenny

No headbands in college, okay? – Dan to Blair

Et tu, Dan?

SvdW was known for her fantastic sense of style.

And she had more loose interpretation of a school uniform than any person on the planet. The Tie Goddess. See for yourself.

EDUCATION IS PRICELESS AND THE PRICE OF INTELLECTUALISM

S:Wow, and I thought college would be different from high school.

B:Who would want that? – Serena and Blair

These kids were not just applying to any colleges, but the Ivy League. They wanted to be HYPsters (Harvard, Yale, Princeton) or the like.  What Blair called the Holy Trinity of colleges. Which are all expensive colleges. We are talking $50,000 USD per year or more.

It was a constant stressor of theirs during the shows first four seasons. Case in point, here is a list of the schools they were trying to get into or that their parents attended.

For instance, Serena wanted to go to Brown and that college and Harvard are where her parents went. Blair wanted Yale and Nate was considering UCLA over Dartmouth like his father. There was also talk of Columbia, Georgetown, and NYU on the show.

It just goes to show you that getting an education is still mighty important.

Serena van der Woodsen or SvdW for short – Brown University, Columbia University

SvdW parents attended – Harvard University and Brown University

Fun show Fact: SvdW dropped out of Brown at the last minute because she wanted to find herself and she felt that moving away to another city wouldn’t help her achieve that. The classic one-year hiatus otherwise known as the infamous gap year before entering college.

This is what Blair had to say to her about going there.

Your deductive-reasoning skills are perfect for a place like Brown. An enclave of trustafarians and children of celebrities who major in drum circles and semiotics, whatever that is. I can’t wait for you to come home next Thanksgiving a militant veganista, anemic and proud. – Blair

It left me speechless.

Blair Waldorf – Yale University, Columbia University, New York University (NYU), NYU – Tisch School of the Arts

Nate Archibald – Columbia University, Dartmouth

Chuck Bass – Columbia University

Dan Humphrey AKA Lonely Boy played by Penn Badgley – NYU

Vanessa Abrams played by Jessica Szohr – NYU

Eric van der Woodsen played by Connor Paolo – Sarah Lawrence

Some character’s shots at the sheepskin, in my opinion, and other honorable college mentions include:

Reaches: Yale, Harvard, Princeton

Realistic: UPenn, Georgetown, UMiami, Duke, USC, UCLA, Columbia, Tulane, Pepperdine, Wesleyan, Dartmouth

Safeties: Cornell, Vanderbilt, George Washington

READ TO GET AHEAD IN LIFE

I’m telling you, I learned everything I know about women from Judy Blume’s Forever. – Dan

According to List Challenges, “Gossip Girl” (2007 – 2012) : here is a listing of some of the favorite authors and books of the characters or simply the ones mentioned by them and showed along these 6 seasons, books studied in university, etc.

Many characters also name dropped or were caught reading well-known books by famous authors.

I love the Snowflake Ball. It reminds me of Anna Karenina, only by Anna Wintour. – Serena

Maybe if we become famous writers one day, they’ll publish [our letters] after we die, like Sartre and de Beauvoir. – Vanessa

They also liked to travel extensively. Especially, in Europe such as Paris, France. In addition, they speak more than one language such as French while in Paris.

Elliott’s the perfect mix of smart and fun: He speaks three languages, but he has a subscription to People magazine. – Eric

List of titles includes:

House of Mirth by Edith Wharton –  read by Juliet Sharp played by Katie Cassidy

The Lorax by Dr. Suess – Mentioned by Dan

Colette by Gigi – Blair read this on a bench in Paris

Jane Austen books – Pride and Prejudice, Emma, Mansfield Park, Northanger Abbey, Persuasion

Charles Dickens novels – A Tale of Two Cities, A Christmas Carol, Oliver Twist, Les Grandes Espérances

C. S. Lewis books – The Chronicles of Narnia, Alice’s Adventures in Wonderland

William Shakespeare – Othello, Romeo and Juliet, MacBeth, Henry V, Hamlet, King Lear

A few other famous works, Rabbit Redux by John Updike, Cyrano De Bergerac by Edmond Rostand, Les Liaisons Dangereuses, The Crucible (Arthur Miller), Wuthering Heights (Emily Bronte), I Know Why the Caged Bird Sings by Dr. Maya Angelou, The Art of War, The Crucible (Arthur Miller), Madame Bovary, The Old Man and the Sea (Ernest Hemingway), The Beautiful and Damned (F. Scott Fitzgerald), Cinderella (Charles Perrault), The Canterbury Tales by Geoffrey Chaucer, Faust, In Cold Blood by Truman Capote, Anna Karenina by Tolstoy, Walden, The Great Gatsby (F. Scott Fitzgerald), and Beloved by Toni Morrison.

There, I have just given you a reading list that every good high school student or Ivy League hopeful should have. Some of which I have read. My favorite author is Jane Austen. A close second is Louisa May Alcott, as I just love Little Women and the 1994 film starring Winona Ryder. But Austen’s Sense and Sensibility (1995) just amazes me every time. That along with Pride and Prejudice (2005) and Emma (1996).

The rich seem to be highly educated. They also tend to get ahead in life. Therefore, be well-read.

However, these trust fund babies did end up leaving college and higher education after a while to set out for their own fortunes in the real world.

For people like us a college degree is just an accessory.  – Chuck

So, this too let’s you know that it is not always about what you know, but who you know.

You never know who you may run into at expensive coffee shops, libraries, restaurants, college, and hotels like the Palace in New York.

So, go build up those relationships.

MONEY AND RELATIONSHIPS

Just to clarify, I do think you deserve to be with someone who makes you happy. – Dan

True words indeed.

I read, like, five self-help blogs on how to turn friends into lovers. Yes, they used that word. – Dan

Come on, Cece’s heart pumps secrets and gin. – Dan

And there was lots of secrets on this show. Relationships and secrets were everywhere.

Sex is meaningful, like art. And you don’t rush art.– Dan

All great things are built or done slowly.

If you watched this show, then you may remember the season 3 episode with Lady Gaga. Here is her take on relationships that is so Blair Waldorf.

“Some women choose to follow men, and some women choose to follow their dreams. If you’re wondering which way to go, remember that your career will never wake up and tell you that it doesn’t love you anymore.” ― Lady Gaga

Marriage

Settling down means death. Less sex, more silence. – Blair on marriage

Blair also had some of the best lines on the show. EVERY. SINGLE. EPISODE.

Case in point, check this out.

And she actually said this too.

That’s the thing. You need to be cold to be queen. Anne Boleyn thought only with her heart, and she got her head chopped off. So her daughter Elizabeth made a vow never to marry a man. She married a country. Forget boys. Keep your eye on the prize, Jenny Humphrey. You can’t make people love you, but you can make them fear you. For what it’s worth, you’re my queen. I choose you. – Blair

As, I am a history buff and studied up on Queen Elizabeth I of England, my mouth fell open when she said this.

Check it out here.

And I am not the only one who feels she should get some praise for her talented banter.

C: It’s a facility for the disturbed or addicted.

B: You must have your own wing.

C: You don’t get enough credit for your wit.

– Chuck and Blair

If you go back with an uncertain heart, there will be drama and disaster for all. – Blair

You better believe it. In life and relationships, to be successful, you have to commit.

LOVE

B:Love me?

C:Always.

– Blair and Chuck

They were the best characters on the show, in my humble opinion. The two of them together was gold. Take a look for yourself.

But ultimately, I have learned that love is what we are all looking for.

MONEY DOESN’T BUY HAPPINESS

Trouble is moving in, and it’s looking to make the Upper East Side it’s bi*ch.– Gossip Girl

You would think that folks in tuxedos and ball gowns are the happiest, but these people seemed so unhappy.

Happiness can’t be measured in things. It comes from having the things that really matter like people who love you for who you are.

Doing the right thing takes courage and strength. At least that’s what I’ve heard. – Blair

Well, I hope you had fun going down memory lane with me and I will bid you adieu in the best possible way to end this post.

You know you love me – XOXO,

Gossip Girl (I mean Greenbacks Magnet) wink, wink 😉

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

Money Lessons I learned from Jay Leno

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Photo: Forbes.com

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

Jay Leno gives advice on how to do just that.

MONEY LESSONS FROM JAY

Jay on starting out

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

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

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

Jay on working more than one job

“I always had two incomes.”

“I’d bank one, and I’d spend one.”

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

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

He has worked two jobs simultaneously since he was 16.

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

Jay on saving money

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

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

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

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

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

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

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

Jay on living on one salary

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

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

“It would go directly into a bank.”

Simply put, bank it and forget it.

Jay on patience

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

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

Jay on retiring

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

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

Jay on Buy-And-Hold

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

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

Jay on avoiding credit cards

“I barely use credit cards.”

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

Jay on house buying

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

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

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

Jay on debt

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

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

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

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

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

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

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

Don’t buy on credit, build a fortune.

Jay on Retooling

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

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

Jay on owning

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

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

Jay on old-fashioned values

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

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

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

Jay on Taxes

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

Always pay your taxes. Period!

Jay on being frugal

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

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

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

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

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

Jay on Shifting Gears

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

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

Jay on shopping

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

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

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

Jay on Fixing Things

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

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

Jay on setting high standards

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

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

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

Jay on idle hands

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

“I sleep four hours, maybe five.”

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

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

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

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

Jay on failure

“You learn a tremendous amount from the mistakes.”

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

Jay on money to blow

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

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

It’s your money. Don’t blow it.

Jay on Life

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

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

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

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

The six ways to get rich

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“What’s keeping you from being rich? In most cases, it’s simply a lack of belief. In order to become rich, you must believe you can do it, and you must take the actions necessary to achieve your goal.” —Suze Orman

Sure, there are lots of ways to get rich, but they all fall into one of these six categories as there are only six ways to actually get rich.

The six ways to get rich are:

  • Capitalize on a unique skill or talent.
  • Marry rich.
  • Inherit money.
  • Own a business.
  • Take calculated risks and get lucky.
  • Spend less than you earn and invest wisely.

Let’s explore each category.

CAPITALIZE ON TALENT

Don’t make money your goal. Instead, pursue the things you love doing and then do them so well that people can’t take their eyes off of you.” ― Maya Angelou.

Become an expert in one area or niche and exploit it. Dominate that field. And never stop growing.

If you read my post on Beyoncé, you will notice that she started young, developed her craft, and expanded her expertise. She not only sings, but dances, endorses products, started businesses, and writes songs. She owns what she does. Everything from trademarks – Blue Ivy and Ivy Park – to owning a music streaming service. Put it simply, she dominates in her field.

If you want to be the next J.K. Rowling or Stephen King, then you just have to start writing. J.K. Rowling famously said she was rejected at least 12 times before anyone would publish Harry Potter. Persistence and determination are vitally important if you want to succeed. And just FYI, it took her 7 years to write Harry Potter.

MARRY RICH

“Don’t you know that a man being rich is like a girl being pretty? You wouldn’t marry a girl just because she’s pretty, but my goodness, doesn’t it help?”

―Marilyn Monroe as Lorelei Lee in Gentlemen Prefer Blondes (1953)

Dating is all about introductions and proximity. It doesn’t matter if you swipe right on Tinder or meet at your family’s country club, you just have to get some face time. You can’t date who you can’t see or touch.

In my experience, men date and marry women who are in their vicinity or social circle. Therefore, if you are looking for a rich man, then you have to be where they are i.e., charity events, sports games, auction houses, doctoral seminars, or the like.

In addition, if you know where wealthy men tend to reside, then hey you can pack up and find a job there and frequent their haunts. Location, location, location baby.

People also tend to look for partners that are successful in their own right. You don’t necessarily have to be rich, but having some sort of talent or career outside of just being a wealthy mate’s plus one bodes well for you and your prospects of landing and keeping a partner. So, invest in yourself – get educated, cultured, learn opera, play piano, paint or learn another language – either way you have a skill.

Above all else, respect yourself. Have your own life, career, friends, family, and money. No one wants a loner that can barely make rent, they want someone who is open to people, new experiences, and can pick up the check.

Don’t agree. Well, how’s this for food for thought; Chrissy Teigen once responded to a mean tweet by telling someone she does not just spend someone else’s money, but in two words replied: “my money.” She also went on to note her Forbes ranking and that she is a best-selling cookbook author. She basically told people to chew on that – no pun intended. A very nice retort on her part and her equivalent of put that in your pipe and smoke it.

Ah, gotta love that Chrissy.

You have to admit it sure sounds better when you can list your own accomplishments.  Respect for self is attractive and shows confidence. And confidence is key.

INHERIT MONEY

I would rather make my name than inherit it. – William Makepeace Thackeray

Studies into the wealth of households have shown that most wealth today is now earned than inherited. In my experience, people truly appreciate and cherish that which they work and sweat for.

For example, when I was given gifts of money or other items I am usually losing or unable to tell you whom gave me the gift. The car in my driveway that I worked so hard for is still there 15 years later.

There are those that inherit their fortunes, but the saying goes that a fool and his money are soon parted. I suggest you get a career, get educated, and learn a craft to earn your own living. If you do inherit, then you can manage your money instead of squandering it.

OWN A BUSINESS

Only I can change my life. No one can do it for me. – Carol Burnett

Starting a business is what two-thirds of millionaires do. This lets you know that if you are successful and become rich, then most likely you will or do own a business at some point in your life.

I suggest determining what you are good at and then turning that into a business. Passion is great, but just because you are passionate about golf and want to be a pro golfer does not mean that is what you are good at or meant to do.

Also study up and get a mentor or work with people in the field you want to be in. Read books, attend seminars and save money. All businesses need capitol. If you can find a business to start with a low barrier to entry such as a food truck or blogging, then the better.

BIG RISKS FOR BIG REWARDS

“If you want big rewards, you gotta take big risks.” Jessica Biel as Tenley Parrish in Summer Catch (2001)

If you read my post, wealth comes from doing not luck, then you understand that from preparedness comes opportunity and hard work creates luck and success.

It is okay to take risks, but I prefer calculated ones. The ones where you do your research, study your results, learn from you’re mistakes or the ones of others and keep moving forward. Make that pro con list, watch videos, attend conferences or better yet, speak to those that have done or are doing what you long to do. If you’re going to risk it all, then best to know all the facts first.

SPEND LESS, SAVE AND INVEST OVER TIME

The formula for getting rich is this: spend < money earned

Simply put, spend less than you earn.

If you can do that, you have got a shot at getting rich.

For example, you can be a millionaire over time if you do the following:

  • Save $6,000 a month for 10 years getting a 6% return
  • Save $2,200 a month for 20 years getting a 6% return
  • Save $800 a month for 25 years getting an 8% return
  • Save $600 a month for 30 years getting an 8% return
  • Save $500 a month for 40 years getting a 6% return

The combinations can vary based on the amount of savings invested and the return on investment of compound interest. However, the bottom line is saving can earn you a fortune.

For those concerned with inflation, here is an inflation-adjusted. 25-year wealth accumulation chart.

Source: www.businessinsider.com

THE BOTTOM LINE

Ultimately, no matter what path you take if you partake in spending less than you earn and investing, over time you will become rich eventually.