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Financial Freedom

Patience is the key to wealth

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The key to everything is patience. You get the chicken by hatching the egg, not by smashing it. – Arnold H. Glasow

I read that the average age of a millionaire is 62.

That means most will not reach the millionaire milestone until after age 50.

Therefore, you will need to treat your working years as golden nuggets of knowledge and labor in which each year of work gets deposited into your wealth accumulation bank.

If you start your 401(k) at the age of 25 and invest consistently, this would require that you save and invest for a minimum of 26 years to reach the millionaire ranking through this vehicle alone.

A $1-million-dollar nest egg can generate $50,000 of income on a 5% return.

Since, $50,000 is around the average earnings of many workers, a $1-million-dollar money bucket keeps raining enough dollars on you to walk away from work if you are earning this much or less.

As long as you only spend the interest, and not the principal.

NOW, WAIT IT UP 

In order to get to this badge of honor, financially speaking, you will have to learn the art of waiting.

Waiting to buy a home.

Waiting to buy a new car.

Waiting to start a family.

You see what I mean.

Nothing comes without first understanding how to manage your time.

Patience is key.

Think of patience and investing like the letter and the stamp. One does not work without the other.

Consider the postage stamp: its usefulness consists in the ability to stick to one thing till it gets there. – Josh Billings

Life is complex. Situations may arise that will make it harder for you to reach your financial goals.

Remember this: It’s not the situation, but whether we react (negative) or respond (positive) to the situation that’s important. –Zig Ziglar

In my experience, optimism, truth, and positivity attract money to you.

Warren Buffest said, “The Stock Market is designed to transfer money from the Active to the Patient.”

We may all get the same 24 hours, but what we do with it is what matters the most.

Consider this quote. Everyday is a bank account, and time is our currency. No one is rich, no one is poor, we’ve got 24 hours each. – Christopher Rice

Therefore, manage your time wisely.

You do not have to move so fast. Slow down and focus. Distractions do not yield results only focusing does and that takes patience.

STOCKING UP ON STOCKS

The stock market has averaged returns of at least 9% over the last 90 years (1928-2016).

The shorter the time your money is invested so too are the amount of the returns.

You need a longer time horizon to invest to reap any rewards.

Here are some questions and answers when it comes to investing in the stock market.

Why should I buy stocks?

“If you don’t play you can’t win.”– Judith McNaught

How do I decide if I should invest in the stock market?

If you don’t feel comfortable owning a stock for 10 years, you shouldn’t own it for 10 minutes. – Warren Buffet

How do I decide what stocks to buy?

When buying shares, ask yourself, would you buy the whole company? – Rene Rivkin

How long should you hold a stock?

“Our favorite holding period is forever.” – Warren Buffett

Don’t you have to be really smart to invest in the stock market?

Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it. – Peter Lynch

Aren’t stocks risky?

“The biggest risk is not taking any risk… In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”– Mark Zuckerberg

Ask yourself, what is my risk level?

If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks. – John Bogle

Should I avoid stocks?

Why not go out on a limb? Isn’t that where the fruit is? – Frank Scully

Where should I invest my money?

“Consistently buy an S&P 500 low-cost index fund.”-  Warren Buffett

What should I do once I invest money?

Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. – Paul Samuelson

Check out books by quoted authors here on Amazon.

 

I say this when it ultimately comes down to investing or not investing; if you feel you can only afford to lose $5, then that is your risk level. When you pass that mark, whatever it is, it’s gambling.

And nothing is riskier than doing nothing except gambling.

Buffet once called a bad period the “Financial Pearl Harbor” during a terrible time in the market.  Guess what? He still held on to the bulk of his portfolio and is one the richest investors in the world.

So understand that you have to pursue wealth.

It is not simply going to come to you.

You have to do something.

As in life, you have to give to get.

Winston Churchill said, “We make a living by what we get, but we make a life by what we give.”

Think like this: If your ship doesn’t come in, swim out to meet it! – Jonathan Winters

And remember this: “A ship in harbour is safe, but that is not what ships are built for.” – William G.T. Shedd

So know this, it’s not what you make, it’s what you keep.

When it comes to investing, just do your research, do your best, and have fun.

Bankruptcy, Financial Freedom, Retirement

Do not cash out your retirement accounts

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“Don’t put your retirement on a credit card.” – Suze Orman

I recently read in the news that a guy emptied out his 401(k) to have enough cash to go see Super Bowl LII. That’s insane.

That is the financial equivalent of throwing all your money in a trash can, pouring gasoline on it, lighting a match, throwing it in, and setting it on fire.

The only time you should cash out is when you hit it big in Vegas at the poker table. Otherwise, just walk away and don’t do it.

They say poker is not about knowing how to play the game, “It’s about playing the other guy.” – Sam Winchester, Supernatural (Season 5 episode 7)

You can buy the whole Supernatural series on Amazon.

Well, in this case the other guy is the IRS. Since, the rules have recently changed you better make sure you learn them as there is no playing the feds.

This is not a game of craps where you just shoot the dice. This is for real.

Your future self is depending on you to do the right thing in the present.

The economy is still getting its act together, but in the meantime you still have responsibilities. I get it.

Millions are people are struggling with debt.

Americans owe about 2 trillion in credit card and student loan debt.

Many are just trying to keep their head above water.

Be forewarned, that even if you have good intentions, cashing out to pay college tuition costs for the kids or grandkids is a big no, no too.

YOU CANNOT FINANCE RETIREMENT

You cannot finance retirement, but your kids can finance their education. Just limit what you borrow.

I know someone living on a fixed income. She was short paying her property taxes because she owed over $25,000 in credit card debt!

And she was scared she would lose her home if she did not pay. She was shaking and crying it was so bad.

I gave her the part where she came up short. You see, she gave me a place to stay many (16) years ago. I had not forgotten. And I never forget a favor.

The good you do can definitely come back to you full circle.

I had a chance to repay her for her kindness and I took it.

Full disclosure: she is an 86-year-old grandmother who got into debt helping her grandkids.

I am not saying not to help your kids. Just be mindful what can happen if you do and you are not financially able or prepared.

Here is what I want you to know.

CASHING OUT A 401(k) IS EXPENSIVE

Cashing out means the following:

  • Paying a 10% federal tax penalty on the money you withdraw
  • Every penny is taxed as ordinary income (negating any pre-tax gains)
  • Any 401(k) loan money you repay is going to get taxed again
  • Every dime you take out is unable to earn interest for the future
  • Present pleasure will not erase future pain and problems when the money is not there to help
  • Every dollar is unable to turn into two from compounding over the years

I know people will switch jobs or attempt to stave off bankruptcy, but I am telling you this is not the way to do it.

Just like there is a way to structure your leaving a job, there is a way to structure how you repay your debts.

Did you know your retirement accounts are protected from creditors?

There’s a little tidbit many creditors will not likely tell you. Well, I am letting you in on the recipe of the secret sauce.

You can learn even more about money and debt by reading any of the books listed in this post and purchasing or renting from the library.

If you cash out, that money is up for grabs. You are all in and could lose to the house.

The decks are stacked against you in this standoff with the banks as you have nothing left to bargain with once you have exhausted all your resources.

That is why it is best to put down no more than 20% on a down payment on a home.

If you decide to do more, like, say 35%, and the market tanks, you could lose your shirt and every dime you put into the property!

That’s too much skin in the game.

ALWAYS PLAY TO WIN

You could also lose your home, literally as well.

Once the money is cashed out, it’s gone forever.

If you cash out to pay off credit cards, medical bills, or back mortgage payments then that’s all folks.

The money is spent. You can’t get it back. And if something else goes wrong, then it’s game over.

All of those things can actually be discharged and wiped away in bankruptcy.

You are; however, still responsible for child support, alimony, back taxes, fines, penalties, and restitution you owe for breaking the law and student loans.

So, you could cash out, pay the credit cards and mortgage, and still get into financial hot water again should a medical or some other type of emergency arise.

You are far better off going ahead with a bankruptcy than breaking the 401(k) piggy bank.

That is, if you truly can’t afford to make the payments and pay your debts.

When your financial back is against the wall a bankruptcy may be your best course of action not cashing out your retirement.

A chapter 13 bankruptcy can possibly even help protect the equity you have in your home.

The money in your retirement account is protected from bankruptcy.

That means if you have $1 million in your 401(k) and go into personal bankruptcy due to owing $100,000 in medical bills the banks and courts can’t touch it.

When you cash out you are likely to pay 35% of the balance of the funds you withdraw.

There is even a possibly after the taxes and penalties are paid, you will not have enough left over to pay the debts you wanted to pay off!

All that work and you still get the short end of the stick.

When the chips are down, just leave them on the table and walk out. Do not add in more chips!

Whatever you decide, make sure cashing out is the last Hail Mary pass in your financial playbook.

Celebrities and Money, Financial Freedom, Self-Made Millionaires

How Beyoncé and Jay-Z became a $1 billion couple

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I don’t like to gamble, but if there’s one thing I’m willing to bet on, it’s myself. – Beyoncé

Hip-hop is more about attaining wealth. People respect success. They respect big. They don’t even have to like your music. If you’re big enough, people are drawn to you. – Jay-Z

The 2018 Grammy’s have come and gone. And even though Jay-Z went away empty-handed on January 28th, he is far from empty-pocketed.

Forbes listed his net worth as $810 million and Beyoncé with her own at $350 million net worth.

That’s right. Beyoncé and Jay-Z are a billion-dollar couple.

Through not only music and touring, but lucrative business dealings have made them a fortune.

Here is where it all began.

Jay-Z builds an empire

“By the time I got to record my first album, I was 26, I didn’t need pen or paper – my memory had been trained just to listen to a song, think of the words, and lay them to tape.” – Jay-Z

Back in 1996, a rising rap star named Jay-Z, who was known for memorizing lots of rhymes without writing them down, put out the album Reasonable Doubt.

It all began when Jay-Z and two others started their own record label, Roc-A-Fella Records, when the talented artist was unable to get a record deal.

It eventually went platinum. From there he would go on to record the commercially successful and critically acclaimed album Hard Knock Life in 1998.

He has not slowed down since.

Jay-Z was a business owner and rapper as he rapped for the very label he owned.

And he would eventually go on and sell the label to Def Jam.

He became a record exec who helped launch the careers of Kanye West and Rihanna. And eventually served as CEO of Def Jam Records in 2004 (a job he took to assume control of his earlier master recordings with the label).

Jay-Z signs another huge deal with Live Nation for $200 million in 2017, his second big payday with the concert promoter. The first 10-year deal was for $150 million in 2008. Through this deal he makes millions in merchandising and concert revenue.

His interests outside of music (Rocawear, and stakes in 40/40 Club and the New Jersey Nets as a sports team owner) have netted him millions more. He sold Rocawear for a reported $204 million. It was said the deal in 2007, would net him around $35 million in cash. This cash infusion would be the seed money used to fund his other business ventures.

He has sold more than 28 million albums in his 15 plus-year solo career.

He has done numerous solo tours including going out on the road in 2013 to support one of his most recent albums, Magna Carta…Holy Grail.

He purchased the streaming service Tidal for $56 million back in 2015. It is now said to be worth $600 million.

He has used his ownership of Roc-A-Fella Records and Rocawear clothing brands to build what he has today.  In 2018, he is one of the richest musicians in the world.

Beyoncé builds her own empire

“Do what you were born to do. You just have to trust yourself.” – Beyoncé Knowles

Beyoncé decided at the tender young age of five that she wanted to be a performer after going to a Michael Jackson concert.

She sang in the choir at church, at school, and everywhere. She honed her craft. Practice, practice, practice.

After appearing on star search in 1993, and later landing a record deal with her singing group in 1997 with Columbia Records, from there she would rise to fame in the late 1990s with the R&B girl group Destiny’s Child.

As a member of Destiny’s Child, she has sold 17 million albums. The group went on to sell more than 60 million albums worldwide. Their 1999 album ‘The Writings On The Wall’ sold over 15 million copies worldwide and was one of the top selling albums of 2000.

The release of her debut album Dangerously in Love, in 2003, turned her into a solo artist. From there she would go on to do films such as “Pink Panther” and Academy Award winner “Dreamgirls.”

Her 2007 tour, ‘The Beyoncé Experience’ grossed over $24 million following the release of her 2006 record B’Day, her 2nd studio album which spawned numerous hits and videos. She then followed up this tour with an even bigger one in 2009, ‘I Am… World Tour’ which grossed $119.5 million. 

She set a new record when she earned 6 Grammys in 2010 for ‘I Am… Sasha Fierce. Her 2009 single from the Sasha Fierce album ‘Single Ladies (Put a ring on it)’ was a huge success and in constant rotation on radio stations worldwide.

She has performed for presidents and as the headliner for the super bowl half-time show in 2013.

She also has multi-million dollar endorsement deals with L’Oreal, Coty (the perfume company) H&M and Target. She has also released at least three fragrances which has made $400 million in sales.

In 2012, Beyoncé inked a deal with Pepsi for a reported $50 million dollars.  

BEYONCE became the fastest-selling album in iTunes history and solidified her as one of the most powerful women in music.

She released her own documentary in 2013 ‘Life Is But A Dream,’ which she directed and produced. It was a rare inside peek behind the curtain of her personal life.

The 2016 release of Lemonade exclusively on Tidal debuted at No. 1, and became her sixth album. She is the first ever female artist to have every one of her solo albums debut at No 1.

As a solo artist, she has sold 16 million records in the U.S. alone and 100 million worldwide.

Beyoncé enjoys making video diaries with the help of her favorite item to do so which is a MacBook.

Beyoncé is a singer, dancer, songwriter, and entrepreneur who continues to tour worldwide while making money from concerts, merchandise, and albums.

Jay-Z and Beyoncé empire as a power couple

“Those who are successful overcome their fears and take action. Those who aren’t submit to their fears and live with regrets.” – Jay-Z

“And we have to teach our girls that they can reach as high as humanly possible.” –Beyoncé

They both own equity in Tidal, which is worth $600 million. That is more than 10 times what Jay-Z paid for it.

In addition, together they both own over $100 million in Real Estate holdings.

Headlining tours independently and together for the 2014 joint On The Run Tour with Beyoncé,  has netted them millions more. This tour earned well over 9 figures with a staggering over $100 million in ticket sales. Making them one of the most profitable touring and recording artists today.

Jay-Z and Beyoncé amassed their fortune from hard work, savvy business acumen, and ownership. Simply put, they own what they do.

All this combined has made them into the billion-dollar couple you see today.

Basically, to build wealth, you have to own. Whether it is a business, stocks, or real estate the money comes from owning.

Side note: Jay-Z is a 21-time Grammy winner and Beyoncé is a 22-time winner. Just in case you were wondering.

Financial Freedom

Gift cash instead of gift cards

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The manner of giving is worth more than the gift. – Pierre Corneille

I know gift cards are all the rage nowadays, but I still prefer to gift cash.

Thinking about the gift card craze made me wonder how this whole thing even got started.

When did this become so popular? And why?

My theory is that it was a marketing idea targeted at consumers to get them to spend more money on fees to purchase or activate the card.

Gift cards are so common now that I read upwards of 50 percent of Americans now purchase them during the holiday season.

I even saw a movie where a guy told a girl “you’re the best, you’re a subway gift card.”

I definitely understand the appeal, but what they fail to inform you is that a huge number of gift cards go unused.

That’s right. You may have wanted to give your sister the option to purchase whatever her heart desires by giving her that VISA gift card; however, many recipients fail to use them.

Contrary, to popular belief cash is still the number one preferred gift.

Cash does not expire or go out of style.

Remember that gift card you got at Kohl’s for your younger sibling, well guess what, they no longer shop there. Now they shop at H&M (which btw only accept gift cards in store).

So, either the card is re-gifted, exchanged, or expires.

In my opinion, gift cards are a waste of money because so many go unused, but the place you purchased the card from still gets that sale.

Basically, every store on the planet are now offering them and I feel it is partially for this reason: gift cards expire.

Meaning that if you do not use them by a specified date, they are worthless.

Or, what if a retailer decides they are no longer honoring gift cards after 30, 90, or 180 days.

Then what? You can’t fight it because policies and rules can change on a whim.

That’s it, game over.

I say Do Not Waste Your Money.

Here are some gift card Alternatives

  1. Gift Cash.

No explanation necessary. I have yet to see anyone unhappy with cash as a gift. I know they say there is no thought in it, but I beg to differ.

I thought that you would be able to spend it anywhere, not have to go to any particular store to spend it, not worry about expiration dates…

I’m sure you catch my drift.

I even keep a collection of birthday cards and a small cash box just for those times that I forget to pick up a card or gift.

Both have come in handy on numerous occasions.

  1. An actual gift

I know it sounds like a lot of work, but you can even shop online and have the gift shipped directly to the recipient.

Some retailers offer free shipping (if you purchase a certain dollar amount) or 2-day shipping and will gift wrap.

  1. Write a check to a charity or donate online

There are numerous organizations that could use help. You could pick a cause to donate cash to such as the Wounded Warriors Project, Make-A-Wish Foundation, Doctors Without Borders, or Kiva.

Just make sure you research the charity yourself before you give.

Those a just a few suggestions instead of giving a gift card.

I feel like as soon as someone gives me one I get amnesia.

My suggestion is for people to say when a gift giving occasion is on the horizon the following: We appreciate your presence and any gift you give; however, monetary gifts are preferred. Thank you.

This simple phrase can save hundreds of thousands of dollars in needless transaction fees.

CBS reported that Americans spend $32 billion on gift cards, which turns into $10 billion in wasted money.

Millions of dollars that could go to helping fund social programs or investing in communities are gone.

That is nothing but net for businesses because that is all pure profit with almost no effort.

Gift cards are so common that many retailers and banks do not even need to advertise them.

Many shoppers seek them out or see them at the cash register.

Most stores now have a gift card section with a huge selection from a wide range of stores.

Plastic is so much a part of spending in America that even with a gift card many overspend and end up spending their own money to purchase the items they want.

I thought the point of a gift card was to spend less, not more.

So, when it comes to gift cards, buyer beware.

Financial Freedom

Join the top 5% percent club

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“No one’s ever achieved financial fitness with a January resolution that’s abandoned by February.” – Suze Orman

Working toward financial freedom is a great goal. Some say lofty. I say if you can believe it, you can do it.

No doubt you have heard the naysayers tell you it can’t be done.

Well, I have read enough stories to know that anything is possible.

They say you become not what you want, but what you believe.

Therefore, only you can decide what is best for you and what you can achieve.

In a previous post, I share with you my view on how to join the ten percent club of wealth.

Well I’m back again. Just in case you missed the last one you can read it by clicking on the link above.

This time I will focus on the top five percent of wealth club.

Let’s keep it simple and define families in the top five percent as those with a net worth of $1,500,000.

That is simply 1.5 times the top ten percent net worth of $1,000,000.

That means that if you fall into the top five with a net worth of $1,500,000 in 2018, you have more wealth than 95% of the population. And you are a member of the top five percent. Let’s pop the cork and champagne all around.

How do you get to $1,500,000? In keeping with simplicity, you could have a paid off home or home equity with a value of $500,000.

The other $1,000,000, which is needed to reach the upper echelons of wealth in the five percent club, would be in savings and investments.

To accumulate $1,000,000 in savings, you need to save $8,500 a year for 30 years starting at age 35 and earn a rate of return of 8%.

Side note: If you can accumulate $100,000 in a retirement account, it will take another 30 years to have $1,000,000 without adding another penny just from compound interest of 8% or above.

Check out this chart from the book I read called the Automatic Millionaire by David Bach and see how much regular saving can get you to millionaire status.

So, keep this in mind. If it takes you 15 years to save up a $100,000 in a 401(k), then in another 30 years you could be a millionaire. And that’s if you stop contributing.

However, saving is habitual. The likelihood of that happening is very slim. Therefore, you would likely reach millionaire status before 30 additional years of compounding your savings. Just knowing you have the option to stop contributing is a whole other thing all together.

This means you have more options. For instance, you could put money in certificates of deposit (CD’s), money market accounts, a Roth IRA or just a savings account. Then use these funds to start a business, pay for your nieces, nephews, or grandkids college educations, or go on an around the world vacation.

Either way you have more freedom or options that were not there before.

I read numerous books on personal finance to help me decide financial freedom was the way to go. I just read the book reviews on Amazon before purchasing.  The Automatic Millionaire also has a workbook you can check out as well.

This is just something to chew on. Now let’s get back to the being a five percenter.

Basically, you could amass an excellent nest egg of a $1,500,000 net worth by paying off a $500,000 home and saving $8,500 over 30 years to join the top five percent. All this done simultaneously over a 30 year career, would equate you to having accumulated a net worth of $1,500,000.

No matter what the numbers or how long it takes you, such as saving $5,000, $10,000, or $15,000 annually doing this continually and consistently yields results.

The key is to be consistent. It is the same with building muscle, but instead of building up your body you are building up your wealth. Understand this: both require discipline and repetitions. Do your reps. Earn money, put it to work, leave it alone. Repeat.

Money can’t sit still. Money can’t just be idle. Money has to be invested, so it can be put to work making more money. That’s right. Invested dollars work 24/7/365. Even though you cannot, your money can.

Imagine being in the top five percent club of all wealthy families in the world. It is amazing what discipline, savings and compound interest can do.

I know what you’re thinking. That is incredibly hard to do in today’s gig economy.

Where others see problems, I only see solutions.

Walt Disney was laughed at for dreaming up a talking mouse. However, he stuck with his passion which was drawing and made it happen. He said, “If you can dream it, you can do it.”

Let his words inspire you.

Automobiles

Why not to own a $50,000 car on a $25,000 salary

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“A penny saved is a penny earned.” – Benjamin Franklin

Car mania is in the water.

It feels like every time I turn around someone is buying not a used car, but a brand spanking new car.

What happened to the days when people bought a beater and made due until they could afford a nice ride. As we know, it’s not the ride, it’s the rider.

Owning an expensive car on an unrealistic salary is starting to become the norm. At least it is where I live.

I live near the nation’s capital: Washington DC.

When the spring comes, I can almost set my watch to the time when someone is going to say I just bought a new BMW.

Now a BMW is an impressive machine, but it comes at a price. A hefty price tag, that can be more than some folks make in a year.

The average American income is reportedly around $50,000. However, many folks are spending a huge chunk of their income to finance a car that can’t take them back in time or to the future when the speedometer hits 88 mph, fly, self-clean, or self-drive itself.

Nope. None of that. However, people are spending upwards of 50% of their income on their ride.

Well, they better be prepared to live in it should something go horribly wrong. That percentage is way too high!

I have read that 50% of your income should go toward all your living expenses. This includes housing, utilities, and transportation.  People are actually spending this amount on one item!

And a car of all things is one of the worst wastes of money you can possibly have.

Let’s do the math. (I used an online calculator)

Summary

Vehicle Price$50,000

Tax, Title & Fees (est.) $3,400

APR3.50%

Term Length72 MOS

Down Payment$2,500

Monthly Payment$785

So, for a $50,000 vehicle, even if you factor in the interest rate, fees, and down payment, then you are still paying an incredibly high car note at $785 per month.

Edmunds.com says the average car payment is a whopping $479 a month! You haven’t eaten, taken grandma out to bingo, or even put gas in your tank.

If you just save that amount instead, you will have $56,520 in the bank. That’s no joke.

You could start a business or put a down payment down on a home.

It makes no sense to pay this type of money for a car when you really can’t afford it.

What if you needed that money for medical expenses, a new roof, or dental work? Worst yet, what if you lose your job? Dealerships are not exactly known for working out long term refinancing options.

Even if you can agree to new repayment terms, if you miss a payment, they can repossess the car.

Here’s some food for thought: If you pay on your vehicle for 71 of the 72 required months, then are unable to pay the last payment, they can still repossess the car.

Stop making payments for a few months or more and this is a very real possibility.

That means you would have paid well over $50,000 including interest and they can still take the car because you do not own it.

Same rules apply with a home. Until you pay it off the bank owes it.  If you pay on the home for 29 years, then can’t make the last year of payments, they can take your home. Pretty scary stuff.

Therefore, it makes no sense to have high fixed expenses like buying a $50,000 car on a $25,000 salary with a fixed payment of $785 a month.

Instead, go for a more affordable car and home. A car note should be around 8% of your income not 50% and should be for no more than three to four years. For a home, you should try to keep the mortgage payment to less than 30% of your income and go for a 15 year mortgage instead of 30 years.

If those tasks sound daunting, then it probably means you cannot afford to buy that $50,000 car or $500,000 home.

If you are approved for those amounts, then deduct 25% from these amounts to make the purchase more affordable so there are no signs of struggling to pay the bills when they come due.

For instance, 25% of $50,000 equals $12,500. Deduct that from $50,000 and that means you would purchase a car for $37,500 instead.

You can do this for any purchase. Find what you want. Get the price. See if you can get it for 25% less.

If so, you could save yourself thousands of dollars a year.

They say you miss 100% of every shot you don’t take. We’ll guess what, let’s flip this saying and instead of doing more you just do less when it comes to spending money and you do the opposite and save.

Then, instead the saying would go like this: You get to keep 100% of every penny you don’t spend.