There’s always tomorrow and it does get better. – Ariana Grande
That statement reminds me of something Scrooge McDuck says, “there’s always another rainbow.”
Nothing is permanent. All is temporary. So, stay calm and keep moving on.
I remember it like it was yesterday. The car payment had to get paid. If I paid late, I had to pay a late fee.
So, it was either be late with the phone bill or the car. I chose the car because my cell phone could wait.
I couldn’t stand making this payment after the first year.
It took me 6 years to pay that car off!
My lesson was learned. A car payment isn’t worth it.
I cannot tell you how many times I had to make payment arrangement, pay a late fee, or forgo making a payment to one creditor over the other. It royally sucked!
There had to be a better way. It had to get better. And it did.
Once I got down to the last $1,500, I just paid the car off. I immediately asked for the lien and a copy of my payment history.
The last payment had been made. I no longer owed a penny on my car. I was a free woman!
That was about a decade ago.
I wanted so bad to start shopping, traveling, or just do anything with that money. But then I stopped. I remembered all the sleepless nights and the time I spent worrying over how to make my car payment.
That’s when it hit me.
Why not put that money to work? I could max out a IRA or put the additional funds into my 401(k).
So, I looked into doing just that.
WHERE TO INVEST
“If you’re saving,
you’re succeeding.” ― Steve Burkholder
I did some research. The money could go into a Traditional or Roth IRA. In addition, I had the option of my company retirement account.
I chose the latter.
Then, I had to decide what brokerage account. I could go with several including Fidelity and Vanguard.
Vanguard had the lowest fees. So, I went with Vanguard.
Next, I had to decide what fund or stock to actually invest my money.
I though a mutual fund looked pretty good and went with the Vanguard 500 index fund (VFINX).
WHAT’S THE GOAL
Money can’t just sit. There has to be a plan or like idle hands, good things do not happen. Money can’t be idle. It has to be put to work. Save it, spend it, or invest it. Either way, you must choose.
“The habit of saving is itself an education; it fosters every virtue, teaches self-denial,cultivates the sense of order, trains to forethought, and so broadens the mind.” — T.T. Munger
I had read enough about wealth building to know you need to invest your money.
But, I also needed something to aim for. A target.
That’s when I did some more research.
Then, I saw it. The first $100k is the hardest. I had my goal.
THEY SAY THE FIRST $100K IS THE HARDEST
You will find many stories written about getting to the first $100k. It seems to be this is a very important number.
Many have said once you hit that six-figure mark, you are
able to build wealth from compound interest faster.
So, okay.
I just had to find a way to get to five zeroes.
What could I do? How long would it take? How can I get to
$100k?!
HOW DO YOU GET TO $100K
Hitting that magic number.
Once I decided $100k was what I wanted, I had to see how I could make it happen and how long it would take.
I used an online calculator to determine my time horizon to hit the six-figure mark by investing my now retired $450 car payment. That just feels so good to say.
Before, we get to the numbers, I just want it to be known that I did think about buying a new car.
However, remembering how painful it was to write that check every month for years sobered me right up!
“The way to stop financial joyriding is to arrest the chauffeur, not the automobile.” —Woodrow Wilson
Yes, investing was the way to go.
The calculator informed me that if I invested $450 and got a 9% return (wishful thinking as the average is about 7%), then I could hit my target of $100,000!
That money could set me on the path to financial independence.
You start earning way more compound interest at $100k.
Take a look.
Once I hit $100k, without even putting in another penny, at that same interest rate, my money would double in 8 years!
It took 10 years of investing $5,500 a year to get to $100k.
Without investing another dollar, my earlier dollars are doing all the heavy lifting and have gotten to the same $100k it took me 10 years to build in less time than that. It only took 8 years!
All this only involves my car payment.
This does not include any other invested funds.
I excluded my company match and additional funds I am investing.
This was just to show you what could be done with what you’ve already got.
Literally, by just shifting that money to your retirement account has made a huge difference in your 401(k) balance.
From there, if you continue to let it ride, this means no cash
outs, you could again amass another $100k in 5 years! You could even double
$200,000 to $400,000 in 8 years. That is only three more years!
Are you starting to see a pattern?
For every dollar you let sit and compound, you just grow your money without you having to do any additional work. Your money grows every year.
Money you earned and invested over a decade is still paying
you dividends!
Think about how you can also double your $200k in just another 3 years!
“Twenty years from now
you will be more disappointed by the things that you didn’t do than by the ones
you did do.” — Mark Twain
I cannot press upon you any further the importance of investing money and letting it stay invested for the long term. Investing is along game. It can take 10-20 years before you see a significant increase or return on your investment.
“Try to save something while your salary is small; it’s impossible to save after you begin to earn more.” — Jack Benny
Remember, I was able to do all this by just by investing my old car payment.
“Walk amongst the natives by day, but in your heart be Superman.” ― Gene Simmons
In 2017, Gene Simmons wrote a book called, On Power: My Journey Through the Corridors of Power and How You Can Get More Power.
This book was nothing like I expected.
It was MORE.
Like the title says, it’s about getting more power. Become more powerful than you ever thought you could be. It all starts with your actions.
Let’s get right into it.
WHO IS GENE SIMMONS?
Image: Forbes.com
The short version is that he is a co-founder and front-man of the band KISS, that he helped start in the 1970’s. They are America’s #1 gold record-award-winning group of all time.
Image: New York Post
Gene grew up dirt poor. He practiced guitar for hours after watching The Beatles on an appearance of the Ed Sullivan show, he knew then that he wanted to be a rock star.
According to Harper Collins, the book was inspired by Niccolo Machiavelli’s The Prince, Simmons offers his unique take on the dynamics of power in every realm of life, from the bedroom to the boardroom, to the world of rock, celebrity, and social media, to politics. With one-of-a-kind anecdotes from his life and career, as well as stories from historical and contemporary masters of power, including Winston Churchill, Napoleon Bonaparte, Warren Buffett, Michael Jordan, Oprah, and Elon Musk, Simmons crafts a persuasive and provocative theory on how the pursuit of power drives civilization and defines our lives.
Gene Simmons has an estimated net worth of over $50 million dollars. So, I decided to give the book a quick read. Glad I did.
POWER IS WHAT EVERYONE WANTS
People want power.
Power over their lives
Power over their time
Power over their professional lives and career
Power over their money
So, how do you get this so-called power.
It’s a power grab for sure.
Gene takes a no-holds-barred approach to his life and on power. It’s dog eat dog out there. You have to be one of the big dogs.
Gene believed that everyone deserves power and that it is yours for the taking.
In his book, he gives you the key to unlock the doors to the temple of power.
GENE ON EDUCATION
“It’s up to you to educate yourself.”
“It’s up to you to learn speaking skills and people skills.”
“It’s up to you to try (and usually fail, but to try again) all sorts of ventures.”
“Believe me, the library is the temple of God. Education is the most sacred religion of all.”
He graduated from Richmond College in New York City getting a bachelor’s degree in education. At one point, he was a school teacher in the Upper West Side.
Gene also speaks multiple languages such as German and Hebrew.
I noticed this was also a theme of Scrooge McDuck. Get a good education, become a linguist, and get to work.
I read everything I can get my little hands on. I go to the library every month. I regularly check out 4-5 books at a time. Sometimes more. I do believe in being well-read.
GENE ON SUCCESS
The rest is a combination of hard work, being at the right place …at the right time…with the right thing…oh yes…and more (never ending) hard work.”
You want success? Well, you have to work for it.
Gene puts his money where his mouth is.
He worked for a butcher hauling up huge slabs of meat and cleaning the blood off the butcher block. Gene has worked as a typist and sold fruit on the side of the road when he was 8 years old.
Make no mistake. Gene is a hard worker and a hustler. He was working multiple jobs to get ahead. Similar to Jay Leno.
As for myself, at one point, I was working as a waitress, cashier, or in sales. In addition, to going to college and studying at times up to 5-7 hours a day! Going to bed at 1 am and getting up at 6 am. Rinse and repeat! I did that for years.
GENE ON ENTREPRENEURSHIP AND CAPITALISM
“Before I ever knew what the word Entrepreneur was, I realized in America and in the Western part of the world in general, you are given the opportunity to be whatever you want to be. And that is all anyone should ever expect from the Capitalist system. The rest is up to you.”
Yep. America is the land of YOYO (You’re on your own).
You learn real quick that no one is coming to save you. You have to create your own safety net. You can’t depend on the government. The only person to depend and rely on is self. Get it? Got it? Good.
GENE ON MONEY
“So much of our popular mythology focuses on the negative aspects of power that we forget that gaining power is, perhaps, the only way to enable ourselves to make a difference in our lives and in the lives of others.”
Gene says you must first get your financial house in order before you can espouse love.
This is similar to what I once heard Tyra Banks mother say, “you have to get yourself together first, before you can help anybody else.”
You should always be looking for ways to earn and expand those earnings. KISS started out with nothing. They slowly built a following. IT. TOOK. YEARS. They were riding around in an old van going from gig to gig and living off hot dogs.
But KISS got smart. They started licensing their name. Everything from lunchboxes to t-shirts. Their moniker is big. Multi-million dollar deals got them to the top of the heap. Monetize everything is Gene’s motto. And he has. And it’s been lucrative to say the least.
So, there you have it. Gene Simmons on power. If you want it bad enough, you just have to work and rock-n-roll all night, like KISS, to get it.
“Um, Anya, while I completely trust you to take care of the inventory and the money, um, dealing with people requires a certain… finesse.” – Giles, Buffy the Vampire Slayer
Yes, indeed. Say it with me, finesse. PEOPLE. REQUIRE. FINESSE.
I cannot tell you how many times I have done business with people and their attitude caused me to cancel my transaction. All I ask for is a little kindness. Being nice can go a long way.
If you are passionate about what you do, then you are generally more pleasurable as well.
People will forget the things you say or do, but they never forget the way you make them feel. I learned that from Maya Angelou. And it is so true.
Today, I want to share with you some advice from my peers. Money Bloggers.
I won’t talk your head off. Let’s dig right in.
1. MONEY IS POWER
New! After getting screwed over by a landlord, I realized that MONEY IS POWERhttps://t.co/NoxJxF5T3T
You better believe it. I read every contract. Cross every T. And dot every I. The reason I have an Emergency Fund is for my peace of mind. It means no matter how much the government changes the laws, your job sucks, the lack of integrity around you, or people’s scruples, you are protected.
Here are some of my posts on the importance of emergency funds and having money in the bank.
You don’t need money in 8 banks, 20 credit cards, and 3 homes if you can’t find a way to manage it. Simplify it. Hire a financial advisor and property manager. Or just decrease the amount of banks and credit cards you use, homes you own, and stuff you have.
No matter what, simple is best. KEEP IT SIMPLE!
3. YOU DON’T HAVE TO SPLURGE ON EVERYTHING
Things Worth Spending MAX Money On For A Better Life – https://t.co/IXRyboM4Cm – You don't have to splurge on everything. Just the most important things. What's missing from the list? pic.twitter.com/3aM4LU7KGX
Absolutely, you don’t. I read a book years ago on health and fitness called Beyond Diet. She stated instead of buying all organic just get a few main items such as milk to keep your budget in check.
I have always spent my money on the things that mattered most. Namely, my health, education, a good pair of shoes, a good coat, and reliable transportation.
See more on saving and buying what really matters.
Because I'm a money nerd and a comics nerd, one of my favorite things is when these two obsessions come together in the form of (drum roll, please): financial graphic novels! You might think that's a niche I just invented, but you'd be wrong. https://t.co/ea0q30ojwlpic.twitter.com/e13jgOoPrs
I take every chance I get to educate someone about money. I bought the Automatic Millionaire for my best friend years ago, so she could get better acquainted with Mr. Benjamin, cause it’s all about those Benjamin’s.
If you don’t teach your kids about money, they will grow up not knowing how to earn and manage it.
If your not sure where to start, check out my post on Scrooge McDuck. It’s kid friendly.
You think you know where your money’s going, but you have no idea.
Well, welcome to the club. Most people have no idea where their money went.
I suggest you start tracking it right now. Yes, stop reading this post and go track your net worth right now!
You can only do better when you know better.
7. A CAR IS NOT AN INVESTMENT
A car is not an investment, it's a tool. It's ok to spend more money to buy a nicer tool. Especially if it's a tool that you use often and needs to be relied upon.
There is nothing wrong with owning nice things, just don't lie to yourself by justifying it as an investment.
Don’t even get me started on cars. Like money, it is just a tool.
I paid off my car about a decade ago. Here is a screen shot of my $0 balance. I paid off that car and out that money to work for me. Forget cars! You do not need an expensive car.
Ah yes, they say ask and you shall receive. However, you still have to ask and do the work. Nothing is for free.
The sorted topic of coin is a tricky one. Money is emotional. But side hustles can get you more money, so I say why not try to EARN money by doing something you are good at and do for free already. Just a thought.
How do you FIRE? Basically, you work your butt off when you’re young, live on like 50% or less of your income and save and invest the rest. You have a better chance of achieving this if you can save and invest 50-70% of your income.
From what I have read, most aspire to FIRE with 25 times their income. Could be anywhere from $500,000 to $2.5 million. Then live off the interest.
However, whether or not you FIRE, you can help others. It can be done with money or time. Either way, with financial independence comes the ability to choose what you do, as you become the master of your time when you no longer have to punch a clock.
When is it time to leave your job and FIRE?
Ask yourself: Would you do this job for free?
You want to be able to do your passion right? Then, you have to make some changes. Leave the grind of the 9-to-5. Get out of the proverbial rat race. It all starts with what you earn and what you spend.
Financial freedom allows you to spend more time doing the things you want. You can spend more time with family, take more vacations, serve in the peace corps, help build homes for habitat for humanity, and the list goes on.
Hope you enjoyed this post, as much as I enjoyed writing it. It was nice to remember some of the things I’ve learned along the way on my own journey to wealth.
Growing your net worth from $0 to $1 million takes time. First, you have to ask for what you want. It starts at the negotiation table.
The sorted topic of coin. Everybody needs it, but those that really want it ask for it.
Ask for what you want. Anything at all. That includes money.
It may not be easy, but you have to negotiate.
It is the only way to get the best deal for you.
You know your worth, so don’t accept anything less.
Speak up to be heard.
Always be reaching. Never settle.
SPEAK UP
A lot of people are afraid to say what they want. That’s why they don’t get what they want. – Madonna
Remember that piano scene in Sex and the City where the piano player kept saying, “one more time for the cheap seats in the back.”
Well, that is real advice.
No one can hear you if you whisper. You have to shout. If you do not speak up on your own behalf, no one will.
Believe me, prince charming or princess darling isn’t coming.
It’s like that part in The Lord of the Rings where Gandalf shouts, “fight for your lives.”
I say that to myself all the time. Do it like your life depends on it. Whatever it is, make it count. Finish strong.
Like that voice in Mortal Kombat used to say, “fight hard.”
Either that or die trying.
BE FEROCIOUS AND FEARLESS
Better to live one year as a tiger, then a hundred as sheep. – Madonna
I can’t tell you how many times I’ve been called a rebel.
For standing up for myself. For voicing my opinion. The list goes on and on.
I think back on that scene in Troy. To fight back.
If you want something, then you better be willing to go to bat for it.
I have asked or negotiated for better pay, grades, food, clothing, a deal on a house, fees, and interest rates.
I’m a lioness. I’m like Miley Cyrus says, “I can’t be tamed.”
I like to go for the gold, but I’m not ashamed to get silver or bronze.
Now when people say no, I only hear yes to my dreams.
WHATEVER DOESN’T KILL YOU
I stand for freedom of expression, doing what you believe in, and going after your dreams. – Madonna
You know the saying…only makes you stronger. Well, it’s true.
I will never forget those hard times being picked on as a kid.
I heard Jillian Michaels say she was bullied and teased relentlessly until she started taking martial arts. She says then the bullying stopped real quick.
I just focused on my studies. And my dreams. Just ignored everyone and everything. I was laser-focused.
I maintained good grades, a well-kept appearance, good manners, strong work ethic and a no nonsense attitude. The teasing stopped real quick.
It truly has paid off. As I have done the following:
Completed my education
Paid off debt
Learned how to invest and build wealth
Traveled more
Maintain my health
Took martial arts
Became a writer by starting a blog
I just did what I believed in. And I believed in myself. I just trusted my instincts. I picked a path and didn’t look back.
Things may not have always worked out the way I wanted, but I was never standing still. The needle of my life was always moving forward.
BE THE ARCHITECT OF YOUR LIFE
Don’t you ever let a soul in the world tell you that you can’t be exactly who you are. – Lady Gaga
What do you want?
Be specific.
I’ll give you an example.
I plan to have enough money to retire in 13 years.
Be more specific. No problem.
By May 5, 2031, I plan to have enough money in savings and investments to retire from full-time work forever.
And that is not a wish, but a goal. This is real.
I am planning for that date. Right now.
Will I retire? I don’t know. However, I still plan to have the option to do so.
Madonna said, “Poor is the man whose pleasures depend on the permission of another.”
Warrant Buffet decided at age 10, after going on a trip to the NYSE, this planted the idea in his young head to organize his life around money.
You are the person in charge of your destiny. Never forget it.
PENNIES OR DOLLARS
The mind is the greatest weapon. – Rambo
Oh, it is. If you have ever seen an episode of MacGyver or been in a tight situation and talked yourself out of it, there’s your proof right there.
I have noticed that math and science are great skills for analytical thinking. Great subjects to study in school or to use to prepare for a career.
In the 2004 film Ray, Jamie Foxx plays Ray Charles and is told the way to get a better deal is to ask for one.
Don’t be afraid to ask for more.
My mother taught me that.
She says all people can do is say yes or no.
In the movie, the man says to Ray you think pennies you get pennies, you think dollars you get dollars.
That was just by changing your mindset.
When I think now, I always think in millions.
For instance, it will take approximately 20-30 years to build a million-dollar investment portfolio depending on how much you save and the interest rate. Investing $10k a year at a 8% interest rate will net you $1,000,000 within 28.55 years.
You just have to decide.
Do you want thousands or millions? You think millions, then you get millions.
If you ask for it and are turned down, then use your mind to find a way to create this reality.
Til Debt Do Us Part is a Canadian television series that follows couples that are going through financial crisis and financial expert, Gail Vaz-Oxlade, comes in to help the couple find solutions.
The series ran for over 100 episodes from 2005-2011. It also had a spin-off called Princess. She teaches couples to go from red to black and gain control over their money.
The show would air right after the Suze Orman show during its run on CNBC. Read my post Dom Perignon Taste on a Budweiser Budget to see how it all went down on Suze’s show.
#1 REASON COUPLES BREAK UP
Money is the number #1 reason couples break up. She visits couples weekly and gives them challenges to help with their finances. Then at the end of each episode, after about 4 weeks, she awards the couple with up to $5,000 dollars to help them get out of debt.
CUT THE CHEQUE
By far the best part of the show, in my opinion, is when at the end of one month, Gail Vaz-Oxlade gives the couple a cheque for an amount up to $5,000, depending on their attitudes and how well they did during the challenges. Keep in mind, couples could get less and some have. One of the lowest amounts I have seen her give was $3,000, which is a 40% reduction of the prize money.
The show was so popular that a 52-Week Life Planner was released based on the television series and offers day-by-day, step-by-step strategies and tips for successfully managing household finances.
This reminds me of a Tom Holland interview he did for Spiderman talking about how Anthony Mackie always says, “cut the check.”
If you have never heard of the show Til Debt or can’t remember it, no worries, I will take you back down memory lane tonight.
WHO IS GAIL VAZ-OXLADE?
“We feel good when our homes are bright and shiny, put a little elbow grease into your money and it’ll glisten too.” – Gail Vaz-Oxlade
Gail Vaz-Oxlade is a financial writer and was a columnist for numerous publications as a freelancer including Yahoo! Canada Finance. She has helped people from high finance to low-income solve their money problems. Eventually, she became a television personality due to all of her work in finance and that is how the show Til Debt came into existence with her as the host.
She has written numerous books on the topic of finance. I have actually read one of her books called Debt-Free Forever.
Gail has a no-nonsense attitude when it comes to money. And that is what makes her so good at what she does.
FOR THE LOVE OF JARS
“You can have everything you want. All you need is a plan. And how do we spell plan? B-U-D-G-E-T!” – Gail Vaz-Oxlade
Watching the show was very interesting. One recurring theme was the jars. Gail advocated for couples to live on cash.
Every single episode, you got cash jars. You would put in a certain dollar amount. When you spend, you write it down in the budget binder cause cash slips through our fingers easier than that snail did with Julia Roberts in Pretty Woman.
Some couples were taking out cash at the ATM from their bank accounts or doing cash advances, which Gail said she could not track so we don’t know where the money went. When it’s gone, it’s gone. Without writing it down or keeping receipts, there is no other way to track cash. So, jars it is.
MONEY LESSONS FOR GAIL
Gai loves cash and hates banks. She thinks they are bleeding people dry slowly with their interest and fees. Gail says banks are wolves in sheep’s clothing. The only way this will change is to teach financial literacy in school. I say start in elementary when they are old enough to start asking for a $1 lollipop, it’s time to start the finance lessons.
This is the secret recipe to building wealth: You need to make more money and you need to spend less money.
Here are 3 lessons that Gail taught me: (1) both partners need to manage the money, (2) no retail therapy, and (3) debt repayment takes time.
LESSON ONE: GAIL ON COUPLES MANAGING MONEY
Do not have only one partner manage the finances.
“It’s not unusual for one person to assume the nitty-gritty of daily finances…. The problem is that when one person is excluded, or totally abdicates responsibility, it means the other can mess things up with no monitoring or grow resentful at always having to do the detail…. Taking turns managing the chequebook, and having regular conversations so that both of you are clear about what’s going on, means you’re both in the know and working to the same ends. It also means that one person doesn’t have to deal with all the crap, while the other merrily laughs off the stress and frustration with, ‘You’re managing the money, so this is your problem to deal with.’ (Yes, there are dopes who say this.)”
Always know what is happening with your money. I don’t care who signs the check and put it in the envelope. Just make sure you lick the stamp. Be involved. Ask questions. Don’t be in the dark.
It’s kind of like that scene in Charmed in the episode Be Careful What You Witch For. Remember that scene in the beginning, after the opening credits. I want you to be skeptical like Phoebe. Always know who you owe and how much. Nothing is for free.
The conversation went like this:
Phoebe: I don’t get it you’ve been stuck in that bottle for two hundred years then someone finally sends you to us and you’ve no idea who licked the stamp? I find that very hard to believe.
Genie:What? I don’t get it you win the lotto and you’re asking for explanations?
Piper:Actually we’d like to know who to send the thank you note to.
“Plastic is anesthetic — it dulls the pain, and then what happens is you just keep waiting for the next fake high.”
And don’t I know it. I had a huge shopping problem for years. It was done as a way to dull the pain of the things going on around me – low-income, working full-time, going to college – I was a mess!
I had some pretty terrible managers when I was younger too. All the stress was getting to me. I had to find a way to cope, but shopping was not it. As I got more mature, I found ways to de-stress that were cheaper or free.
I have said it before that credit is seductive and addictive. It should not be used to replace your emergency fund (liquid cash). However, if you do, be strategic and use credit wisely and sparingly.
“A goal without a deadline is just a dream.” – Gail Vaz-Oxlade
Slow and steady is the way to repay debt.
“One step at a time. You are on your way. Expect challenges. Keep your goal where you can see it.”
You better believe it. If it took you 8 years to accumulate the debt, thinking you can pay it off in 3 months is delusional. See my post Getting out of debt one step at a time.
The good news is that once you recognize you have a problem with debt, then you can work on solutions. I have noticed that generally 2-3 years of cutting back and attacking debt is usually enough time to pay off most if not all of your consumer debt except the mortgage and student loans. After 5-7 years, the only debt left is usually the mortgage. That is a small price to pay for freedom.
Money can’t buy you love. But keeping love alive without money can be pretty tough. In fact, ninety percent of marriage breakups are due to money problems. And to get advice on how to manage money usually costs money! Til Debt Do Us Part, is a series that offers tough-love solutions to those willing to face their financial troubles head on. In each episode we meet a couple in crisis. Some are on the verge of bankruptcy, hounded by creditors or facing eviction. Others are just getting by, but in the midst of a personal meltdown or relationship breakdown because of money issues. With the sensitivity of a therapist and the toughness of a CFO, our host, renowned financial author and columnist, Gail Vaz-Oxlade reveals what she’s found in a couple’s finances – and then she’ll dig a little deeper. She asks some tough questions and then they’ll be forced to face reality. Where will it end if they continue on this rocky road? To get things back on track, Gail takes control of their finances …
This show was very eye-opening in how people managed their finances. Many did not have a clue what was coming in and going out. Gail would come in with her screen shots of the couples bank accounts and spending and give it to them straight.
Many times the wives would burst out in tears after seeing how much debt the family was actually in. Lots of couples were in over their heads. Some so deep in debt they had to consider selling their house, or worse, bankruptcy!
Some couples did not want to make any changes. Even though they were debt up to their eyeballs. These people needed to get their priorities straight. Much like Hermione, in Harry Potter.
Here is the show’s Intro and theme song along with a promo. This is just a taste, a light sampling, of what you are in store for with this show.
There are 2 episodes that stand out for me. They were called The Worst Family Ever and Love Affair with Luxury.
MONEY WORRIES CAN CAUSE SLEEPLESS NIGHTS
In the S03E13 entitled, “The worst family ever?” One couple were living in the wife’s family basement for about a couple of years. They spent with reckless abandon. Oh, the couple popped bottles night and day. Especially, after moving out and buying their own home for about $225,000. That’s not bad. What is bad is that they saved zero dollars while sponging off her parents.
Then, to make matters worse, they threw non-stop parties at their house for friends and family. This was obviously all to make themselves look good to friends and family. In Yoda speak, so concerned with appearances they are.
“Happy people don’t worry about what other people think about them.” – Gail Vaz-Oxlade
OUT OF CONTROL SHOPPING FOR BABY BUT THE KIDS ARE ALRIGHT
In addition, they expanded their family and had a son, but financially were unprepared for this. At one point, the wife was spending $1200 a month outfitting junior! I couldn’t believe it. What is she buying Versace onesies? Get real. A baby doesn’t care. They just want to be warm, feed, and dry.
This couple were overspending by the tune of $4,100 a month! Holy spending gone bonkers, Batman!
Fun Fact: For those of you unfamiliar with that Batman line, here is where it comes from. The Batman television series from the 1960’s. Batman was American live action television series, based on the DC comic book. It starred Adam West as the titular character and hero Batman and Burt Ward as his sidekick Robin.
It was also turned into a cartoon series. Here is Robin at his finest with his sayings. Hilarious!
I decided to post it so you won’t ever have to get the tongue lashing that Penny got from Sheldon on an episode of The Big Bang Theory about Batman at 2:48 into the video.
It was about The Lord of the Rings. Even Raj used a Holy Robin saying in there!
In this next video, Sheldon gives a fun fact to Raj. Now, you know where I get it from.
Now, back to the story.
The way the couple on the show were able to overspend like that, drumroll please…the credit cards!
When Gail comes along they are so bad she tells them they have to sell the house. They flat out said they could not sell the house. Even though they are on the path to $1.3 million in debt and possible bankruptcy! Gail, at one point in the show, tells them they are the worst couple she has had on the show and that she had a few sleepless nights worrying about how to help them out of this situation. Coming from Gail, that’s scary.
The way it went down, it reminded me of that scene in The Chipmunk Adventure, when Jeanette and Eleanor was telling the Arabian prince that Brittany spends money like a drunken sailor and Brittany got mad. Hilarious. I just so happened to find the footage of that particular scene and the movie on YouTube. Hope you have fun watching! No need to thank me. Like Dean Winchester says, “You’re Welcome.”
SHOULD YOU FINANCE A $100,000 CAR?
“Change brings challenges, learning, and a sense of New. Change is full of promise.”- Gail Vaz-Oxlade
In the S04E03 entitled, “Love Affair with Luxury,” which aired March 6, 2008, is the gold standard of delusions of grandeur when it comes to money management. The wife, Simone, is a champion shopper and a spendthrift who manages to make 53 shopping trips in a single month! That’s nuts. Even though she’s on maternity leave, a luxury car is next on her shopping list.
The only reason the couple is able to afford such luxuries is because they have each other’s incomes. The minute one person’s income is gone or reduced, i.e. disability or divorce, the whole house of cards comes tumbling down faster than the stock market has in the last 30 days.
Frank and Simone’s combined $110,000 annual income is currently curbed by Simone being on maternity leave. Simone is addicted to what she believes she needs to keep up appearances in every respect, which includes working out at the gym, and spending money on “stuff” for herself, such as clothes, getting beauty treatments of various kinds, and having a beautifully appointed house. A $125,000 new car is next on the list. Simone, however, states that she would never do anything that would place her family at risk. But Frank doesn’t realize he is just as guilty, spending money on his electronics, which includes six large television sets in their house of four people, including one infant. This spending has resulted in $55,000 in consumer debt so far. They constantly fight about money, something having to give if their marriage can overcome this issue. As such, Gail issues them challenges largely focusing on dealing with their root problem, namely their addiction to luxury, this focus which not only entails them doing the challenges, but understanding why she has issued these challenges.
At one point in the show she says, “we can finance $100,000 can’t we.” For a car no less! If you have ever read this blog, you know I can’t stand cars for the simple reason that they can keep you in debt forever. You could spend a couple hundred grand on cars in a lifetime. You know how much interest you could earn on $200,000! Here are just a few on my posts on my beef with car loans below.
Money is a tool we use in the present to create the reality we want in the future. Learning about finance is a good start. Practicing good money habits and teaching your kids to understand the concepts of money – budgeting, saving, and spending – you help create their reality.
So, I want to always stay in control of your…I will now end this post in the last words of the Til Debt Do Us Part theme song, money, money, money, money, money, money, moneyyyy!
I get it. You win the jackpot and your financial freedom. You’re on cloud nine.
However, you have to plan your escape from the rate race whether or not you win the lottery.
If you want to get rich, either by picking winning numbers or otherwise, you better learn quick how to manage a fortune.
Here’s why.
CHANCES OF WINNING
Are pretty slim.
According to Fortune magazine, the odds of winning the lottery are about one in 300 million. Considering that there are over 326 million Americans, that makes your odds quite small.
Chances of winning the lottery today: 1 in ~300 Million
Chances of being born as yourself: 1 in ~400 TRILLION
If you want to close this gap, you will have to increase your scope of numbers to play and play more often.
It’s not enough to do the kids birthdays or your anniversary. Going to have to get creative. You need the locker combination to your high school locker, your kids Xbox password, your great-aunt’s wedding date, and your first love’s old address. You know, something like that.
But all jokes aside, you will have to increase your range of numbers to increase your odds of winning.
In addition, you will have to play more often.
It has been well-documented that people who win the lottery once are likely to win it again.
The problem with this is that you also increase the amount of money you lose while playing the game.
LOTTERY WINNERS GO BROKE
Get rich or die tryin’. – 50 cent
Did you know a high percentage of lottery winners end up broke? According to the National Endowment for Financial Education, 70 percent of lottery winners go broke.
According to @NYTimes, 90% of lottery winners go broke within 5 years of winning. What would be your plan to keep your winnings long term?
“Using money you haven’t earned to buy things you don’t need to impress people you don’t like” – Robert Quillen
I have seen too many lottery winners go bankrupt. You win all that money just to go back to being broke! No, thanks.
Forget your friends and family telling you to spend. Do not inflate your lifestyle and then upgrade it even more after moving to that gated community in Beverly Hills. You do not need to outspend your neighbors.
You can still drive a Honda. The kids can still get jobs. If you think that it is taking away an opportunity for someone else to work for a needed paycheck, then let junior volunteer.
That was the advice Fran gave Mr. Sheffield in The Nanny. He wanted to teach his daughter about responsibility and the value of money. So, in S02E21 Maggie became a candy striper at a hospital. Great advice.
Fun Fact: In the S02E08 of Gilmore Girls, Rory gets in trouble at school. It just so happens that one of her schoolmates in that episode was none other than Mr. Sheffield’s youngest, Grace, played by actress Madeline Zima. You can see her in the blue sweater walking behind Rory in this clip.
My advice to anyone who comes into large sums of money whether by inheritance, large windfall, bonus, or lottery is to stay humble.
Hire an intermediary to answer requests for money on your behalf
Set a daily, monthly, annual spending limit
Hire an attorney
Take the lump sum
Create your own annuity with a spending budget
Hire a CPA
Learn how to manage money
Understand your tax liability
BUY STOCKS INSTEAD OF LOTTERY TICKETS
I would much prefer people spend their money wisely than to bet it on chance.
You could invest your money instead of throwing it down on the roulette table. If you are want to be a part owner of Caesar’s Palace, instead of merely placing bets at one, you can buy REIT’s or mutual funds.
Even better, you can buy index funds that includes hundreds of stocks that track a benchmark such as the S&P 500.
Every dollar you invest can possibly be turned into two or three dollars.
Source: familyfinancefavs.com
Not sure what all this is? No problem. Go down to your local library and ask for books on personal finance. You can also look up any words you are unfamiliar with online.
In addition, you can read blogs, listen to podcasts, join investing clubs, get a job in banking, take a few online finance courses, or ask friends and family for book recommendations.
Many books offer book recommendations in the appendix.
All you have to do is be willing to do some homework.
Trust me, it’s worth it.
When your one-day sitting on a beach in Hawaii, sipping cocktails and able to get up at noon just because.
However, whether or not you FIRE, you can help others. It can be done with money or time. Either way, with financial independence comes the ability to choose what you do, as you become the master of your time when you no longer have to punch a clock.
