A Christmas Carol: Lessons in Finance, Business, and Life

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Have a heart that never hardens, and a temper that never tires, and a touch that never hurts. – Charles Dickens

A Christmas Carol has to be one of the most beloved Christmas tales of all time. It was written as a novella by Charles Dickens in 1843. Although, the story is over 170 years old, there are many lessons of wisdom imparted within this story that still has relevance today.

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It never gets old watching Ebenezer Scrooge’s redemption at the hands of three ghosts and the spirit of his late business partner Jacob Marley.

A compelling story indeed.

It is set during the Victorian era of the 1800’s in England. Around 1860.

The story gave us the words and phrases Scrooge, Bah Humbug, and Merry Christmas.

In the 1940’s, Disney even created their own character in his image named Scrooge McDuck.

How did Scrooge go from an innocent young pupil to a crotchety miser?

One word: Life.

We all must go through it, but how we handle life’s ups and down is what really makes us who we are.

Scrooge hated people. However, those around him still chose to show him kindness.

I have learned that you cannot answer hate with anger. You can only show people who you are by how you live your life.

Remembering his story always reminds me to treat others the way I would want to be treated, and that is with dignity and respect.

WHO IS EBENEZER SCROOGE?

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Ebenezer Scrooge is the protagonist of this tale. A miserly business owner who is a skinflint to the core. Though successful in business, he is angry and alone.

His only family is a single nephew from his late and only sister.

As a young boy, he spent all his time on his studies. His father was a very strict and harsh man. There was little time for play or fun for Ebenezer. It hardened his heart. Money was the answer that will give him meaning to his life.

He decided to close himself off to others so that he wouldn’t get hurt. But the thing is, when you open up to people, you let the good in with the bad. This adapted defense mechanism had a profoundly negative effect on adult Scrooge. He learned to place the pursuit of money above love.

He was later employed by a man named Fezziwig, who was kind and gentle. His employer was in the shipping business that was established in 1766.

Although, Scrooge had examples of charitable people and love around him, somehow he let greed take over his heart.

LOVE AND HAPPINESS ARE NOT ONE AND THE SAME

We need never be ashamed of our tears. – Charles Dickens

Money does not buy happiness only temporary satisfaction. It cannot buy friends, family, faith, loyalty, or love. Money is empty. People is what fills you up inside and your heart. Don’t let money control you like it did Scrooge. Money doesn’t control you, you control it.

The absolute saddest and most touching part of the story is when his betrothed has some very harsh words for Ebenezer.

At a young age, he made a promise to marry a girl of no fortune.

Over time he changes. He becomes cold and harsh. She tells him that one by one she has watched his nobler aspirations fall away.

His master passion of gain is now his only love. An Idol has displaced and replaced her in his heart. A golden one. He only cares now for gold. Money.

She asked him if he was a free man would he still want to marry a dowerless or penniless girl with nothing but myself to bring to a marriage. He stays silent. She has her answer.

In one of the absolute most heart wrenching and saddest rebuffs I have ever heard a woman say to a man, it almost brings tears to my eyes.

She tells Scrooge this; thus, ending their engagement:

Ebenezer, I release you;

You are a free man;

I let you go with a full heart;

May you be happier in the life you have chosen.

Her rejection of him was the final straw as he was never the same. He calls himself a fool for not going after her. I think it was his pride that let love slip away.

It seems that old fools used to be young fools.

This film version of he speech in 1984, in my opinion, is the best version I have heard. It makes me stop in my tracks every time to hear her say it just sends a sharp chill down my spine its so cold and sad.

A Christmas Carol (1984)

This is my favorite version of the many film adaptions. I remember seeing it on reruns growing up during the holidays.

Scrooge (1970) Starring Albert Finney

The 1951 version also has fine acting and strong dialogue including its delivery. The scene where the engagement ends is particularly well-spoken by the films star.

He says, “the world can be so brutally cruel to the poor. All the while professing to condemn the pursuit of wealth in the same breath.”

He asked his soon to be ex-fiance, “is it a terrible thing for a man to struggle to be something better than he is?”

She feels that is is if a man weighs everything only by gain.

A Christmas Carol (1951)

A CHANCE TO GLIMPSE THE PAST, PRESENT, AND FUTURE

A loving heart is the truest wisdom. – Charles Dickens

In the story he is visited by the spirits of Christmases Past, Present and Future.

He gets to relive the mistakes of the past and present and see what will come to pass in the future, if he doesn’t change his ways.

As hindsight is always 20/20, who wouldn’t like a chance to change right what once went wrong.

However, Scrooge was a tightwad. Ridiculously cheap and stingy. He ate a bowl of gruel for Christmas dinner in a room with one lit candle. Pathetic.

He didn’t even spend for his own comfort. So, he was miserable and made everyone around him the same. People like him only see the cost of visiting the eye doctor, not the benefits that could come with 20/20 vision.

From his story we learn this, you may not be able to change the past, but the future is not written yet. You can write the last few pages, if you have the courage to change. It is NEVER too late to change for the better.

THEY SAY CHARITY STARTS AT HOME

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

Your actions do impact others. For every cause there is an effect. Every action you take affects not only you, but the people around you and someone else in the long run. There is a reaction for every action.

When asked to give to charity, he asks, “Are there no prisons?” and “Are there no workhouses?” Then goes on to state that it would be better to decrease the “surplus population” than to help the needy.

Oh yea. He’s a real charmer.

Scrooge had a loyal and faithful employee named Cratchit. It was a shame he treated him so badly. He wouldn’t even allow the man to put more coal on the fire to keep warm while at work.

It was too bad he could not show the same kindness upon Bob Cratchit that his former employer did upon him. It would have been a great way to pay it forward. And to honor those that came before him.

They say when you want to be charitable, you do not have to look far. You can start at home. Why not start with your friends?

LEARN FROM THE MISTAKES OF THE PAST AND OTHERS

A sad sight to see was his old deceased business partner. Jacob Marley, who is in purgatory for his sins. As punishment, forced to walk the earth in chains while seeing those he could have helped but didn’t and now being unable to do so. He tells Scrooge to change before it is too late.

Jacob says, “The common welfare should have been my business.” Helping people should have been more important than money.

I cannot tell you how many times I have watched others that are older than myself and said I do not want to make the same mistakes. I made different plans for my life and charted a different path.

When I get a chance to repay a kindness, I do it. Unlike Scrooge, it is rare in this life that you get a second chance. I try to do a good job the first time. Tell people the truth. Help them. Reach back and pull someone else up. They say you never get a second chance to make a first impression. A true statement indeed.

I read history to see what has been done in the past to avoid making those same mistakes in the future.

No regrets.

Most people’s number one regret on their deathbed is that they focused too much on work and money and not enough on their relationships. Please don’t be one of those people.

The best and biggest change in Scrooge after his ghostly visits is his generosity. The spirit of Christmas Yet to Come foretold of a bad future. He saw a life of sadness and loneliness and that his deeds directed his future of misery. He says he will remember what the spirits tell him and says, “I will not shut out the lessons that they teach!” Scrooge heeded the spirits words and mended his ways.

HAVE A FINANCIAL PLAN

Scrooge was the extreme version of frugality. He saved more than necessary and gave little. Scrooge hoarded every penny. His plan was to have as much money as possible, but that is only one piece of the puzzle. He planned for his money, but not his life. Life is complex. It requires money, yes, but also people because life is about building relationships.

Get a good education, then keep your head down and work. But don’t forget about developing your friendships and relationships.

The Cratchits were poor. Living off a miserable 15 shillings a week. They had a roof, food, and clothes, but no luxuries. They made use of everything they had. No wasteful spending. And were grateful for what they had: each other.

I try to only do what I’m passionate about. Will it get me closer to my goals? If not, I tend to not spend any money and instead find a way to economize. I spend on what is important, what I value, and what I need.

FORGIVENESS

To err is human, to forgive divine. – Alexander Pope

At the end of the story, Scrooge pledges a vow by saying, “I will honor Christmas in my heart, and try to keep it all the year.” A wonderful promise to make and keep indeed.

Do not ever be afraid or ashamed to ask for forgiveness. It is a sign of strength and growing maturity.

Dickens once said, “No space of regret can make amends for one life’s opportunity misused.” I believe that people should do what they are good at, cultivate their gifts, and help people with that gift. Use your gifts to solve problems creatively. And not just once a year, but all the days of the year.

So, in the words of Dickens, Merry Christmas!

And Happy Holidays from Greenbacks Magnet

Shoe game is not for the frugal at heart

“It doesn’t matter how great your shoes are if you don’t accomplish anything in them.” ― Martina Boone, Compulsion

I thought women loved shoes, but I’m beginning to think men love them more.

Nobody does it to the same grandiose scale as the NBA players of today’s time.

If you have ever watched the series Uninterrupted or MTV’s Nice Kicks, heard commentary on Kneading Dough or read the Complex magazine or Coveteur online, then you know the NBA are paying salaries large enough to fund startups with paychecks that are bigger than some countries GDP.

What do some of these players do with all this money?

Invest it in shoes, of course.

WHAT IS SHOE GAME?

Shoe game is all the shoes you own, your shoe wardrobe, used when comparing the type and amount of shoes you have against another person.

I know it sounds crazy, but many top sports superstars have shoe closets that could rival any boutique or downtown footlocker.

The real shock isn’t the amount of shoes, but the sheer price tag to owning all these shoes in the first place.

Each year, analysts predict that the sneaker bubble will soon burst. However, the shoe business is a billion-dollar industry that just keeps on growing.

WHAT IT TAKES TO STEP UP YOUR SHOE GAME?

It seems the first step is to simply own a whole bunch of pairs of shoes.

Generally, in the hundreds or thousands.

Usually one corner of the master bedroom closet is never enough.

These sneakers need some room to breathe.

Therefore, many are opting to get custom made closets. People are devoting as much as 800-square-feet or more dedicated to housing 3,500 pairs of shoes. That is larger than some people’s apartments!  In some cases, people have gone on to give their shoes storage units, commercial buildings or whole wings of an entire house!

This isn’t cheap. A custom closet could go from an average closet costing up to $1,200 to $5,000. However, a custom closet fit for a sneaker connoisseur can cost upwards of $15,000 to $25,000 or more.

For that price, many closets come with climate control, lighting, and tons of racks for you to house massive amounts of sneakers.

They even have apps you can get to showcase Sneakology for any Sneakerhead that wants to do it right.

HOW MUCH DOES IT COST TO SNEAKER IT UP?

Well, a few people out there have thrown out some numbers.

Considering that some have anywhere from 500, 3,000, or even 6,000+ pairs of shoes, you have to know that is a lot of dough being spent on shoes that you can only where one pair at a time on your one set of feet.

Rare sneakers can fetch anywhere from $500 on up to $5,000. One pair of Jordan’s is going for $25,000!

If the average pair of sneakers cost $80 a pair, we can start to do some of our own math.

A few numbers I came across include:

500 pairs at $80 each equates to $40,000.

1,000 pairs at $80 each equates to $80,000.

3,000 pairs at $80 each equates to $240,000.

6,000 pairs at $80 each equates to $480,000.

That last one means some poor soul spent a half a million dollars on shoes! Most of which they are unlikely to ever wear more than once.

I read one guy had 3,500 pairs averaging $214 each for a total value of $750,000.

One post I read on Coveteur stated one guy had 3,600 pairs at an average of $280 each which equates to $1,000,000! You could buy an apartment building for that! I say get that rent money and be a landlord instead of a shoe lord.

Shoes won’t pay you every month to stay on your property, but tenants sure will.

A tenant could help you pay off your mortgage in half the time. Say, 15 years on a 30 year mortgage.

I read that most people keep their favorite 10 pairs of shoes in regular rotation.

That would mean all these people could have saved themselves anywhere between $39,000 to $479,000. Just something to think about right there.  

MONEY SPENT ON JUST YOUR FEET

When I think of all that money spent at shoe stores across the nation, it just makes me shake my head.

I know you can spend your money on anything you choose, but when is it enough?

Just a peek inside some of these closets let you know that enough money is being housed in there that these sneakers may need to be in some kind of vault.

DJ Khaled's Sneaker Closet (1)
DJ Khaled via Instagram
Joe Johnson Sneaker Closet (2)
NBA player Joe Johnson’s closet via Sports Illustrated
Image result for shoe closet with blue lights
Custom closet showcased on nextluxury Modern Mens Closet Design With Neon Blue Light Shoe Wall Shelf

For that kind of money, you need these babies in a fire proof room or safe.

If you’re getting heart palpitations just from reading these numbers, then I understand. That’s a lot of money that has to be protected and put under lock and key. Security can be another added expense on top on housing and maintaining these shoes.  

WHAT ELSE CAN WE DO WITH ALL THIS MONEY?

You could actually invest in startups by becoming an angel investor.

According to Brian Cohen, an experienced angel investor and the chairman of the New York Angels, a consortium that focus on start-ups in the New York City area, most startups fail.

However, Fred Wilson of VC firm Union Square Ventures says that one-third of early stage investments are hits, meaning they return five times the investment or more. Guess what happens to the other two-thirds? Most go bust.

Therefore, you must research any investment before you hand over even $1 of your money.

You could sell them.

A Guinness World Record holder at one time had 2,500 pairs of sneakers called the Shoezeum.

When asked what brands he wore he replied, “Nike. It’s sneakers or barefoot, and sneakers are always Nike.”

Want to know how Nike got its start?

See my post on Nike founder Phil Knight

He also has some frugal tendencies. He stated, “I bought 1,800 pairs of Converse Chuck Taylors for $1 each. I took them all to a swap meet and sold them for $5 a pair.”

Not bad.

However, regardless of what you do, put your money into something that it can earn interest and grow.

Make your money work even harder for you than you had to for it.

There are only so many hours you can work in 24 hours of a day. Your money can work 365/24/7 in the stock market. So, let it.  

Name Brand Labels or Fat Stacks? You decide

Porsche. There is no substitute. – Tom Cruise, Risky Business

When I was growing up, I don’t remember caring about labels. It wasn’t about getting or giving expensive gifts. It was about being safe and warm.

Maybe, that is why to this day I still keep things until they fall apart because of the memories attached to them. Not to mention it’s cheaper.

Today, I have noticed a shift in kids. They are so focused on what’s on the outside that I feel that may begin to forget that it’s what’s on the inside that counts.

I know it’s cliché, but I do not want the next generation growing up thinking that they are less than because they don’t have on the expensive pair of shoes or have the hot new cell phone.  

In my opinion, the best gift you can give your kids is to not be a financial burden to them.

That means saying no to pricey things today, so that you can have the money necessary to live and enjoy life tomorrow.

MONEY DOES NOT FIX ALL THINGS

Prada and Gucci and Dior, Oh My!

That sounds like something Carrie Bradshaw would say on Sex and the City.

See my post It’s a Suit, Tie, and High Heel City for more on Sex and the City

Following the diamond bricked road can be dangerous.

However, I hear more young people taking about incredibly expensive name brands and labels than in any other point in my life.

I, myself, am a little more like Rory from Gilmore Girls.

Things are not that important to me. I am perfectly fine with a good book. My parents did not spoil us.

In fact, we were encouraged to work and be thrifty. Our parents just were not buying it. It wasn’t really about the money; it was just not needed so our parents said no.

My father would always say that you have to learn to accept no just like you accept yes.

From him, I learned not to be spoiled or to spoil children.

Spoiled kids turn into rotten adults.

When you never hear the word no, you can get very upset.

Teaching young people today to be thankful and grateful for what they have is something that will be good for them to know and use throughout the rest of their lives.

Spending money does not always equate to happiness. It can make things easier, but it does not solve every problem. And in some ways, money can cause more problems.

See my post More money more everything including problems

CHRISTMAS STOCKINGS STUFFED WITH LABELS

I had a friend recently tell me she knew someone who had a kid that asked for Gucci boots for Christmas.

How do they even know about that?

And they want the real stuff.

Got some diamonds round my neck no fugazi – Future lyrics off the Streetz Calling album

Fugazi is just another word for fake.

I looked up the price of Gucci boots. The lowest price I found was $980. I have gone on vacations for less. After tax, you are paying $1,000 for one pair of boots! Absurd.

The only teenager that deserves a $1,000 pair of Gucci boots is on stage with her two friends Kelly and Michelle.

That money could be used for books for college or starting a fund for tuition.

You have to use your dollars wisely today or you may not have them when you need them tomorrow.

DIAMONDS OR STOCKS

You could buy designer purses or expensive vacations. But those things are fleeting.

Especially, if you come back home to a stack of unopened and unpaid bills.

You are right back in the same situation before you left or bought that designer handbag. What sense does that make?

Who cares if you own a Tiffany bracelet if your rent check is late or worse yet, bounces!

Diamonds around your neck or wrist won’t keep you warm at night.

Things will not feed you, make you happy, or pay your rent.

However, having a passive income stream can.

Money that is working on your behalf is like the gift that keeps on giving.

A stock can be like a goose that lays a golden egg.

If you own a mutual fund comprised of hundreds of stocks, then you can receive dividends and interest on the money you invested.

With a return rate of 7 percent over 30 years, the following can happen to your invested money:

  • $1,000 can turn into $7,5000
  • $10,000 can turn into $75,000
  • $100,000 can turn into $750,000

And that is without adding another dime to your initial investment.

Think of how your money could grow if you added money annually.

If we add an additional $3,000 (that’s $250 a month) every year, we get the following:

  • $1,000 can turn into $300,000
  • $10,000 can turn into $400,000
  • $100,000 can turn into $1,000,000

You read that right. Start with an initial investment of $1,000. That pair of Gucci boots.

Putting away an additional $250 per month for 30 years can net you $1,000,000!

FAT STACKS ARE FAR BETTER THAN THINGS

Basically, if you could forgo pricey labels, you could save and invest your way to a fortune.

For me, that is far more exciting than having some diamonds on my wrist.

While a diamond bracelet is nice to look at and pretty to hold, a stock is something that never gets old.

I tell people all the time to get the money first, then you can buy whatever you want.

Money in the bank or sitting in a brokerage account is far more valuable that getting the latest hot gadget.

Once the novelty wears off, all you are left with is another trinket or item that sits in your house and collects dust.

I know there is no substitute for quality.

What I ask you to really consider is opportunity cost? If this item will bring you long lasting happiness and prosperity?

If not, then you should focus on doing the things that will.

I am just a blogger.

I can only advise you.

It is up to you to decide.

Money and life advice from Nike founder Phil Knight

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


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

It has been valued at over $20 billion.

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

How did a small company that sold shoes out the trunk of a car get this far?

One word: Endurance.

The man behind it all fought through endless money woes, legal problems, lawsuits, and inventory issues for 20 years, but came out ahead in the end.

He is now estimated to be worth over $10 billion dollars.

His name is Phil Knight and this is his story.

A RUNNER WITH NO DIRECTION

“If you’re following your calling, the fatigue will be easier to bear, the disappointments will be fuel, the highs will be like nothing you’ve ever felt.” ― Phil Knight

Phil Knight was born in Portland, Oregon on February 24, 1938.

In his youth, he liked two things: sports and running.

At the University of Oregon (OU) he earned a journalism degree in 1959.

After Phil Knight graduated from University of Oregon, he then earned an MBA from Stanford Graduate School of Business. He graduated from the school with a master’s degree in business administration in 1962. At the age of 24, he has no idea what to do.

He looks over his final paper he wrote on shoes.

In his small business class, Knight produced a paper, “Can Japanese Sports Shoes Do to German Sports Shoes What Japanese Cameras Did to German Cameras?,” which would foretell his eventual foray into selling running shoes.

WHAT’S IN A NAME

Ford had just paid a top-flight consulting firm $2m to come up with a name of its new Maverick, I announced to everyone. “We haven’t got $2m — but we got 50 smart people, and we can’t do any worse than… Maverick.” – Phil Knight

The company was founded on January 25, 1964, as Blue Ribbon Sports (BRS), by University of Oregon track runner Phil Knight and his coach Bill Bowerman, with a partnership by handshake and officially became Nike, Inc. on May 30, 1971.

The name from Nike, is named after the Greek goddess of victory.

When they needed to choose a name for Nike, the “Buttfaces” (an affectionate term for the inner circle) were trying to come up with something.

That night as Nike legend has it, Johnson, from a dead sleep, sat upright: “Nike, the winged goddess of victory! That’s IT!”

Jeff Johnson, employee number one of Nike, and fellow Stanford runner whom Phil hired as he hasn’t met anyone with his passion for running, suggested calling the firm “Nike,” named after the Greek winged goddess of victory.

It’s pronounced “ny’-kee.”

The name is Nike and their rival was Adidas.

It met with a lukewarm Buttface reception. In the eleventh hour, Knight begrudgingly went with it.

“‘What’d you decide?’ Woodell asked me at the end of the day. ‘Nike,’ I mumbled. ‘Hm,’ he said. ‘Yeah, I know,’ I said. ‘Maybe it’ll grow on us,’ he said.

FIND A MENTOR

FPhil had a great mentor, Bowerman, a great American running coach, who was constantly experimenting with shoes.

Bowerman would make then on his waffle iron.

Bowerman stressed that an extra ounce on a shoe added 55 pounds of lifting over one mile. As a mediocre runner, Phil was Bowerman’s favorite guinea pig (he wouldn’t dare jeopardize the top runners with experimental shoes).

He trained Olympic athletes so he knew what they needed to wear on their feet to compete. He trained one of the most prolific Olympic runners of that time: Steve Prefontaine.

Somebody may beat me, but they are going to have to bleed to do it. – Steve Prefontaine legendary runner of the 1972 Olympics

Bowerman was the most famous track coach in America, training local champions. It was said future Olympian Steve Prefontaine known as “Pre” did not want to run for anyone, but him.

He was also one of the top paid Nike endorsers before his death in 1975.

In my personal opinion, I do not think I have ever seen any runner run like Prefontaine with so much passion. I hold my breath every time I watch him run. It’s like time is standing still. You don’t want to blink because you know without a shadow of a doubt that you are witnessing greatness and what the human spirit could do without limits.

The real Steve Prefontaine

THE BUSINESS OF RUNNING

“Don’t tell people how to do things, tell them what to do and let them surprise you with their results.” ― Phil Knight (original quote by George S Patton)

Back in his day, running wasn’t a “thing.” People were ridiculed for running. There were no real running shoes. So, he set out to change that.

After graduating, he decides he must travel to figure out a plan how to see what the Japanese do with the making of shoes. Alas, he has no money. His only option is to ask his no-nonsense father. However, he feels that his father will not fund his wanderlust. But in a surprise, his father agrees and gives him $1,000 to go to Japan.

“How can I leave my mark on the world, I thought, unless I get out there first and see it?” ― Phil Knight, Shoe Dog

Phil goes to Kobe, Japan, in November 1962.

His father has two friends in Tokyo, and they dispense business advice – the Japanese are soft negotiators, not fans of the aggressive American style. Armed with this advice, he sets out.

He discovers the Tiger-brand running shoes, manufactured in Kobe by the Onitsuka Co. Phil was impressed by the quality and low cost of the shoes. Knight calls Mr. Onitsuka, who agreed to meet with him. By the end of that meeting, Knight had secured Tiger distribution rights for the western United States. Off the top of his head and thinking on his toes, he thinks of the blue ribbons on his walls in his room he won from running when asked what the name of his company as he says, “Blue Ribbon Sports.”

SIDE HUSTLE OF SELLING SHOES 

SIn the beginning, there was no money.

Phil sent shoes to his old coach to see if they would sell. Bowerman, who was obsessed with runner performance and making shoes lighter, not only liked the shoes, but asked to work on product shoe designs and from there a partnership was born. This was 1964.

His father’s friend advised him to get a CPA. With an MBA and CPA, he would likely never be out of work. So, he gets his CPA and a job at a small firm. It had 4 employees. He worked 70-hour weeks.

Phil still worked as an accountant during the day while trying to get his business of the ground.  Finally, in 1969, he quit working for the likes of firms as Price Waterhouse to work on his business full-time.  

So why was selling shoes so different? Because, I realised, it wasn’t selling. I believed in running. I believed that if people got out and ran a few miles every day, the world would be a better place, and I believed these shoes were better to run in. People sensing my belief, wanted some of that belief for themselves. Belief, I decided. Belief is irresistible. – Phil Knight

THE RICHES ARE IN NICHES AND PITCHES

TRunning is not a hobby or sport during his time in the 1960’s.

Mostly only student athletes were buying their shoes, as popular as they were, they appeal to just a small niche of the population.

He sold shoes at track meets out of the back of his car in the Pacific Northwest.

The pitch: Japanese shoes are extremely high-quality, low-cost shoes.

 A 300 order of shoes cost $1k. He got his half $500 from his father and the other was put up by Bowerman.

They SOLD OUT!

The shoes were so popular that people were showing up at his house to by them.

PHIL ON MONEY

P“But that’s the nature of money. Whether you have it or not, whether you want it or not, whether you like it or not, it will try to define your days. Our task as human beings is not to let it.”  ― Phil Knight, Shoe Dog

Money problems plagued the company.

Distribution rights became an issue so he had to fly to Japan (ticket paid for by credit card as he has no money) to plead his case to keep selling and got the green light. He found this out from a letter his employee named Johnson sent him. The lesson here is to listen to good counsel and advice. This very well may have saved the company from ever existing today.  

However, the company did want a bigger player in the shoe game to represent them, but Phil said they had offices in both coasts to shore up the deal.

(He was lying – they didn’t’ have an East Coast office).

No venture capitalist or angel investors in 1965. Phil had to use banks. They wanted big profits and slow growth. Phil was having none of it.

BOOTSTRAPPING IT LITERALLY 

BThe company was always strapped for cash. They had to stay lean to survive. And worked mainly in storage rooms and Phil’s apartment.  

Meeting the demands of the banks and customers became equally tougher.

EVERY. SINGLE. YEAR.

Trying to get imports on time, make cash payments to creditors, and get orders to customers was a logistical nightmare.

Onitsuka is painfully unresponsive as shoe shipments arrived late, which meant less time to sell, and each loan repayment period to creditors tougher.

EVERYDAY I’M HUSTLING

EPhil did everything he could do to keep the lights on, make payroll, and keep the company going. They were growing every year and sales were doubling, but they still had problems financially.

First year, they made $8,000 in sales in 1964. By 1967, says had grown to $84,000. They double again in 1968 to $160,000, but Phil still can’t afford to draw a salary.

So, he did what he and adult has to do when they need money: get a job.

That’s right, he went back to working in accounting.

He doesn’t love the work, but it pays the bills.

At this point in Phil’s story, I had to give him the slow clap of praise for doing what needed to be done.

However, sales double again to $300,000 in 1969, Phil is able to draw a salary of $18,000. He quits his job teaching and is at BRS full-time. In 1970, doubling again, sales reach $600,000. By 1971, they crossed the million dollar sales mark at $1.3 million.

Finally, it all came to a head when their Japanese exporter decided to buy them or give their business to someone else.

AN ACE UP HIS SLEEVE OR SOLE?

A“Have faith in yourself, but also have faith in faith. Not faith as others define it. Faith as you define it. Faith as faith defines itself in your heart.” ― Phil Knight

The biggest asset Blue Ribbon has is Bill Bowerman.

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

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

He learns that Japanese and American bodies are simply different, and thus the shoes need to be different, like more arch support. To have a great chance in the US, he believes Onitsuka needs to customize their shoes for Americans.

He draws up countless designs and sends them to Japan, only to receive no response. Occasionally they relent and make a few prototypes, and indeed they’re far better. Undeterred by Onitsuka’s hesitance, Bowerman even experiments with producing homemade rubber to make new soles.

You might be able to see where this is going.

OUR SOLES AT KNIGHT LEARN YOYO: YOUR ON YOUR OWN

OThey secretly start manufacturing their own shoes. Having dreamed about Nike as the name for the company, it was then born and the sidestepped acquisition.

Their reputation sold their shoes and saved their company.

They also learned how powerful celebrity endorsement is as well.

When the company was in dire financial straits one of his top employees (#4 full-time) Woddell and his family gave him their life savings of $8,000 ($50,000 in 2017 inflation) to keep Nike afloat. A friend indeed.

PHIL ON MANAGEMENT

PHis employee in CA, Johnson, he sends Phil mountains of letters, detailing his every development, every sale and notable customer.

He sends advertising ideas (Phil doesn’t believe in advertising), shoe designs (Phil already has enough to deal with Bowerman), and his insistence on opening a retail shop in Los Angeles.

Phil feels smothered and rarely replies to Johnson’s letters. From studying war heroes and generals, he holds a virtue: “Don’t tell people how to do things, tell them what to do and let them surprise you with their results.”

And Johnson delivers results. His customers love him, depending on Johnson to solve their problems in both running and life. Even when he gets in a car crash and breaks his skull, he’s continuing to sell shoes. Phil even issues him a challenge – sell 3,250 pairs of shoes in a few months, and Johnson could open his retail space in LA. And sell he does – now Blue Ribbon has an official runner mecca in Los Angeles.

MARKS OF VICTORY

MOn his travels, he stopped in Greece. While visiting the temple of Athena, he notices a carving of Athena – bending down to adjust her shoe. She is known to be the goddess of wisdom, battle strategy, and victory or “nike.”

And what’s THIS?

That’s a swoosh.

The hell’s a swoosh?

The answer flew out of me: It’s the sound of someone going past you.

They liked that. Oh, they liked it a whole lot.

The trademarks of “Just Do It” and the Swoosh logo became synonymous with Nike. The logo is also one of the most powerful in the world.

The logo was commissioned for a mere $35 USD from graphic design student at Portland State University by the name of Carolyn Davidson in 1971. She charged them only $35 for her work.

According to Nike’s website, Knight said at the time: “I don’t love it, but it will grow on me.”

PHIL ON PRAISE AND CHARITY

PPhil never gave praise or money. But…

He was so pleased with the logo that in 1983 he gifted Carolyn with an undisclosed amount of Nike stock for her contribution to the brand. She had worked for the company from 1971 until 1980.

That year, 1980, is the year Nike went public with an IPO.

Phil told Oprah on her show in April 2011, that he gave Davidson “A few hundred shares” when the company went public.

For years, the value of the stock was unknown.

Well, guess what? You’re about to find out right here, right now.

What is the cost of helping someone when commissioned with a task and not thinking it is beneath you?

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

Counterkicks got a hold of a recent Nike shareholders meeting transcipt in which Knight reveals exactly how much stock he gave Davidson and the value of that stock today…

“…we hired a graphic art student at Portland State University, and told her to come up with something that connoted speed, and we gave her $75.00 for what she came up with. When we went public in 1980, we called her back up and gave her 500 shares of stock, which she has never sold, and is worth close to $1 million this day.”

His top employee’s or the foot soldiers as I like to call them, Bowerman is worth $9 million; Woodell, Johnson, Hayes and Strasser each about $6 million; Phil $178 million.

In 2012, it was reported that Knight himself owned 67,097,005 shares of Class A Common Stock and 7,740 shares of Class B Common Stock in the Nike corporation.

Nike has revenues of $20 billion annually.

In 2018, he is now estimated to be worth $29 billion dollars. Him and his wife donate $100 million a year.

PHIL ON HELPING OTHERS

P“When goods don’t pass international borders, soldiers will.” Though I’d been known to call business war without bullets, it’s actually a wonderful bulwark against war. Trade is the path of coexistence, cooperation. Peace feeds on prosperity. – Phil Knight

When on travels in his younger years he went all over the world.

He noticed incredible poverty in places like Vietnam.

When his goal of taking over Adidas as the number one shoe company in the world, by 1986, total sales hit $1 billion, and Nike surpassed Adidas to become the No. 1 shoe manufacturer worldwide.

He also was able to fulfill some other dream. He opened factories in Vietnam so that war would likely stop there due to commerce and work.

Luck plays a big role. Yes, I would like to publicly acknowledge the power of luck. Athletes get lucky, poets get lucky, businesses get lucky. Hard work is critical, a good team is essential, brains and determination are invaluable, but luck may decide the outcome. Some people might not call it luck. They might call it Tao, or Logos, or Jnana, or Dharma. Or Spirit. Or God. – Phil Knight

Read my post Wealth comes from doing not luck.

Knight’s memoir, Shoe Dog, was released on April 26, 2016 by Simon & Schuster, was rated fifth on The New York Times Best Seller list for business books in July 2018, and details the building of the Nike brand.

Knight has donated hundreds of millions of dollars to each of his Alma Maters including $105 million to Stanford Graduate School of Business in 2006.

As of 2016, according to Portland Business Journal, “Knight is the most generous philanthropist in Oregon history. His lifetime gifts now approach $2 billion.”

It is safe to say that Phil Knight and his Nike business are a running success.

They live their dreams. They just do it.

For Nike, there is no finish line.

It’s a Suit, Tie and High Heel City

Concrete jungle where dreams are made of there’s nothin’ you can’t do. – Jay-Z featuring Alicia Keys Empire State of Mind


Women and high heels.


It is a love affair that has been raging on for 500 years. Since about the 15th or 16th century.


Those 3-inch spiked heels and peep-toe pumps can really turn heads.


“It is better to be looked over than overlooked.” – Mae West


However, is that what you really want? Or is it something more to it than that?


Here are some women in pop culture that regularly work, dance, sing, wear, perform, and even workout in high heels.


Let’s take a look.


Nicole Scherzinger – estimated net worth $8 million (she was known to run on the treadmill in heels)

Shakira – estimated net worth over $80 million (she is known for her belly-dancing skills)


Victoria Beckham – estimated net worth over $100M (Posh Spice loves her some heels)


Beyoncé – estimated net worth over $350 million (performs in high heels while doing intense dance choreography)


From what I gather, the high heel is all about power.


In what way you ask?


Keep reading and find out.


WHERE THE HEELS HAVE A NAME

And the Clackers just worship her. They call them Clackers, the sound that their stilettos make in the marble lobby. It’s like, “Clack, clack, clack”. – Anne Hathaway in The Devil Wears Prada


Clackers are characters in The Devil Wears Prada. They are known for the clacking noise their stiletto heels make against the marble floors of the fictional Elias-Clark.


One of the biggest cities in the world, Manhattan, in New York is known as much for its power lunches and business suits as it is for women decked out in sky-high heels.


A business and fashion capitol of the world. It is also known as a concrete jungle. And the Empire state.


However, you have to pay the cost to be the boss.

A custom made bespoke business suit can cost anywhere from the low thousand-dollar range on up to $5,000. Regardless, if you are in New York buying a Tom Ford three-piece suit, or across the pond in England buying from Henry Poole & Co on Savile Row.


And women’s shoes are no exception.


When a Manhattanite was asked why women wear heels, she says the power is everything. The reason why women wear shoes that hurt their feet is about POWER.


I read online that a Manhattan woman was quoted in the New York Times saying “Low shoes are for those who give up. If a woman cannot wear heels, can she really take over the world?”


“Give a girl the right shoes, and she can conquer the world.” – Marilyn Monroe

You saw how crazy in love women can get with their heels on Sex and the City.


At one point, Carrie Bradshaw (Sarah Jessica Parker) was regularly dropping some serious coin on the likes of Jimmy Choo, Manolo Blahnik, Christian Dior and Christian Louboutin. Anywhere from $300 to $1,000 a pair!


If these boots were made for walking, then she was usually in heels.
Remember this iconic newspaper dress. Well, those shoes are Louboutins.


WHY SO HIGH?


That’s a great question.


I actually read a book about finance and in the book it discussed women wearing heels while working as cocktail waitresses. Particularly in casinos. When asked why they wore heels that obviously hurt their feet and back, they replied, “bigger tips.”

The higher the heels, the better the pay.

Even with this fact, statistics say at least 40% of women have given heels up.

So, basically it’s all about money. As a study reported, taller people or at least those that look taller make more money. Like $800 or more per year. Go figure.


WHAT DOES IT COST TO LOOK THIS GOOD?


“I like my money where I can see it – hanging in my closet.” – Carrie Bradshaw


Glad you asked.


As an extreme example, we will use a reference by Carrie Bradshaw.


Remember that episode where her building was going co-op. She had to come up with a down payment or lose her home. An apartment in a great location.


She told her friends Samantha, Miranda, and Charlotte (Kim Cattrall, Cynthia Nixon, and Kirsten Davis) that she didn’t have the money.


When prompted why she didn’t she stated she wasn’t sure where her money was going.


They tallied up her shoe addition.


Those Jimmy Choo’s ain’t cheap after all.


At $500 bucks a pop, she owned maybe 30 pairs. She then gasps, and clutching her chest she says, “I spent $15,000 on shoes!


That is a down payment on a home or rental property.


Using the rule of 72, with a 12 percent interest rate she could have doubled her money every 6 years! In 18 years, that $15k is worth $120,000! In 48 years, that’s $3,840,000!


Come on, Carrie. I need you to spend more wisely. And follow your own advice.


“Beauty is fleeting, but a rent-controlled apartment overlooking the park is forever.” – Carrie Bradshaw


BUT DOES IT SCALE?


Buying all those shoes I mean.


Scaling can mean a lot of things, but in this case I mean making best possible use of the resources we have and amassing wealth. Can we also do better things with our money ethically?


If she was a costume designer, and she got paid to shop and was paid in shoes and money. Then yes.


However, since someone else isn’t footing the bill, that money is coming out of your pocket. Gone forever.


According to philosopher Kant, there is no greater good to come from this.


If buying shoes was a hobby she turned into a business, like taking all those heels and putting them all in one marketplace online for resell with an upsell. Then using that money for a better purpose.


That’s money in your pocket. More is coming in than going out.

Saving equals success.


WHERE CAN ALL THOSE SAVINGS GO?


Another great question!


I’ll tell you.


But first…


A few questions for you.


• What interests you?
• Do you want to earn money?
• What do you like to do with your time?


Once you have a starting place, you can go from there.


Therefore, if remodeling, decorating, scrapbooking, sports, or the ballet interest you, then maybe you should consider putting your money into those things.


You could place your money in REIT’s (real estate investment trusts).
These mutual fund stocks allow you to invest in real estate without doing all the work of managing a property or paying property taxes on it.


Like to play sports?


How about investing in sports teams.


You may not be an owner like Jerry Jones, but you can certainly buy stocks in sporting equipment or businesses that own sports teams. For instance, owning shares in a publicly traded team like the New York Knicks.


You can also buy sporting goods stores who sell retail merchandise and apparel. Like Dick’s Sporting Goods, Foot Locker, or Nike and Adidas. On the New York Stock Exchange (NYSE), the Nike shoe brand is listed as NKE.


Are you interested in the arts?


You can donate to charities like libraries, hospitals, and museums.
For example, the Metropolitan Museum of Art or “The Met” in New York City.


Founded in 1870, its statement reads: The Met “collects, studies, conserves, and presents significant works of art across all times and cultures in order to connect people to creativity, knowledge, and ideas.” The art and library is accessible to anyone and you can make any donation you wish. Anything will do.


You can also donate to your local library or other places that are close to your values because the best thing you can do with your money is put it where your values are.

Oprah’s 10 commandments for lifelong success

Rather than love, than money, than fame, give me truth. – Henry David Thoreau

I recently read the book Oprah Winfrey Speaks : Insights from the World’s Most Famous Influential Voice.

It was very inspiring.

Here are some of the things the “Queen of Media” had to say:

“Just tell the truth. It’ll save you every time.”

“Don’t complain about what you don’t have. Use what you’ve got. To do less than your best is a sin.”

“Every single one of us has the power for greatness, because greatness is determined by service-to yourself and to others.”

“I am a woman in progress. I’m just trying like everyone else. I try to take every conflict, every experience and learn from it. All I know is that I can’t be anybody else. And it’s taken me a long time to realize that.”

“If you’re angry, be angry and deal with it. Don’t go eat a bag of Ruffles.”

“God blesses you better when you pray on your knees.”

Oprah Winfrey is worth an astounding $2 billion dollars. I figured if anyone could talk about what it takes to be successful it’s her.

OPRAH ON COMMENCING SUCCESS

Oprah gets requests to speak at college commencements. Sometimes she accepts. Hear her talk about life and success to recent college grads in this 2018 commencement video.

And now, let’s talk Oprah’s 10 commandments for success.

OPRAH ON PLEASING OTHERS

Oprah Winfrey’s Ten Commandments for Success

  1. Don’t live your life to please others.

You better believe it. When I was younger, I was so concerned with what other people thought of me. I was teased so bad that I just got numb to it all.

I started focusing on my education. Read every book I could get my hands on. Looked for colleges I could go to that were affordable. Made sure my personal style and grooming became impeccable. The teasing stopped. I never looked back. Read my post on being fearless

That was in high school.

When I stopped trying to people please my life got better.

I also noticed whenever someone would call me selfish after I just finished helping them out or because I chose not to help them out at onetime or another. Just ignore the them. Push ahead and move forward.

I let those people go and cut them out of my life. Or cut them back. I need people that will lift me up.

No one can stop you. If you are meant to have it, no one can stop you from getting it.

Thank u, next!

OPRAH ON DEPENDING ON SELF

2. Don’t depend on forces outside of yourself to get ahead.

That’s right. Everything I every really got in life was due to hard work, determination, and persistence.

It didn’t matter if someone helped me out or gave me anything. I still had to work to keep or maintain it.

OPRAH ON HARMONY AND COMPASSION

3. Seek harmony and compassion in your business and personal life.

I too have noticed when I have my personal life in order, then I can also get my professional life in order.

The two are connected.

A cluttered home or office usually leads to a cluttered mind.

Simplify your life and always keep moving forward.

Like that animated movie, Meet the Robinsons taught its young audience, you can’t stop moving forward.

OPRAH ON SURROUNDING YOURSELF WITH GOOD PEOPLE

4. Get rid of the backstabbers—surround yourself only with people who will lift you higher.

In the book, Oprah Winfrey speaks, Maya Angelou went to court when Oprah was involved in a lawsuit in Texas. When asked what made her come down to Texas she stated, “I am here to lift Oprah up. For no other reason than that.”

Get rid of naysayers, negative Nancy’s, and Debbie Downers. They will only bring you down.

You do not have to be friends with everyone. Everyone does not have to like you. But we can respect each other.

OPRAH ON BEING NICE

Abstract autumnal backgrounds with petzval lens bokeh

5. Be nice.

A little kindness can go a long way.

I learned that Oprah said as a little girl her family was poor. They had so little money that one time they could not even celebrate Christmas.

Then on this one fateful night, a group of nuns visited her family and offered Christmas dinner. Oprah was so grateful and thankful that someone cared she decided she would make sure in her life she always helped others.

Due to this story, I decided I would also do the same. Making a difference in the life of others is its own reward. I love to write. So, I write. I don’t do it for the money. I do it because this is my passion.

OPRAH ON GETTING RID OF VICES

6. Rid yourself of your addictions—whether they are food, alcohol, drugs or behavior habits.

Yep. I had an addition to credit and shopping. It took years to understand that I was psychologically using shopping as a way to fill avoid.

 Once I was able to identify the problem, I am happy to report that shopping was never a problem  for me again. I shop with lists, on a budget, and do not impulse buy.

You are looking at a reformed shopaholic.

I also was able to change my eating habits because I focused my energy more on working than eating.

I only needed three square meals to do the work. Made sure not to have idle hands. And to get the work done, it required me to exercise so I would have more energy and strength to work even more doing my passion!

OPRAH ON SMART PEOPLE

7. Surround yourself with people who are as smart or smarter than you.

I once read a woman say she when she goes out on she asks dates men do they have a passport and a library card.

She wanted someone who had traveled and was as well-read as she herself was. Since, it’s easier to maintain a relationship with people we have things in common with. She figured just ask for what she wanted. 

I always recommend books for people to read about finances.That way, instead of always having to ask someone for help, pay a professional financial advisor, or feel inadequate in any way you would now be knowledgeable.

I like to fill the gaps in anyone’s financial education. That way, if you know what I know, we are equals.

This is also why many people tend to meet and marry people that run in their social circles. It’s easier.

OPRAH ON MONEY

8. If money is your motivation, forget it.

Don’t even get me started.

It’s funny because I noticed whenever I focused on money it never appeared. When I stopped focusing on it, like chicken little said, it fell from the sky.

Money attracts money. Money is attracted to money.

Therefore, it is best to figure out who you want to be and what you want to do. If you are good at whatever it is, the money seems to come.

“Do what you love and the money will follow.” — Marsha Sinetar.

Build up the capital first, then start a business.

“If you wish to get rich, save what you get. A fool can earn money; but it takes a wise man to save and dispose of it to his own advantage.” ― Brigham Young

I learned that like I control a car, I also control and command my money. I tell it what to do. It doesn’t control me. YOU control it!

When you are angry, frightened or beg for money it seems to pull away from you.

If you act like this, would you want to hang out with you?

OPRAH ON POWER

9. Never hand over your power to someone else.

Absolutely, not!

When I read Pat Benatar’s biography, the two things I remember most are this:

One – when she said that her family went on annual vacations on someone else’s dime. Their creditor. They borrowed from their home to do it.This caused the family to go from having a home that was purchased for $7,000 to balloon to a $45,000 balance! They traded their life energy and many more years of working for a few days of fun every year. The creditor after 20+ years of payments still had power over their lives. She said it was not worth it.

Two – after signing her record deal with Chrysallis, she said she became an indentured servant. The label or “suits” had control of everything they did. It ruined relationships within the band that took years to repair, if ever. When her contract ended she never gave her power away again!

These are lessons we all can profit from. Do not give up your power. NEVER. EVER. EVER. 

OPRAH ON PERSISTENCE

10. Be persistent in pursuing your dreams

Never give up if you really want something, keep plugging away at it and your dreams can come true. – Robin Leach

I agree. One of my biggest dreams in life was to get a good education. It took me years to get where I wanted to go, but it happened.

Now, I not only finished college, but on average I read about 50 books a year.

It took me 15 years to get to the level I aspired for myself.

I just never gave up.

And neither should you.