All posts by Greenbacks Magnet

I grew up in the Washington DC metropolitan area and have been working in the financial services and lending industry for over a decade. I earned a bachelor's degree in psychology and master's degree in distance education from the University of Maryland University College.

Just Winging It: Heavenly Money Advice From The Heavenly Kid

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The idea is not to live forever, it is to create something that will. – Andy Warhol

I’m back with another blast from the past. This time I’m taking you back to 1985 with The Heavenly Kid.

The movie poster image says: In Life & Love, We’re All Just Winging It.

However, in the real world “WINGING IT” isn’t going to cut it.

Anything you want, you are going to have to work for and pursue it. You must devise a plan, write it down, determine a strategy, chart a course, set sail, and execute that plan until you reach the finish line.

See my post on Nike founder Phil Knight

One of my favorite films from the 80’s was this gem. The movie had a kick ass soundtrack too!

What I really loved about The Heavenly Kid (THK) is that in the end what mattered most was people and not things.

Take a walk with memory down memory lane. You will not be sorry you came along.

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Pinky promise.?

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I pinky promise you.

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The synopsis is as follows: A hip guardian angel named Bobby Fantana, who died in a car race in the 60s, reluctantly agrees to watch over lonely 80s high schooler Lenny Barnes who needs guidance on how to become cool.

This is how it all went down.

A young greaser-type rebel, challenges Joe Barnes (Mark Metcalf) to a game of chicken for making a pass at his girlfriend Emily (Jane Kaczmarek). Bobby wins the race easily when Joe dives out of his car, but Bobby is unable to get out of the car in time due to his bracelet getting caught on the gearshift. He dies as his car plummets over the cliff into a fiery wreck.

I know this is some sad sh*t, but it does get better.

Although, Bobby is no longer with us there is still some good he can do.

He wakes up aboard a speeding train, which stops at a station housing a huge escalator going up into a bright white light, which one of the attendants refers to as “Uptown”. Bobby is denied entry, and Rafferty (Richard Mulligan) appears and explains that he isn’t considered ready yet and needs to carry out an assignment in order to earn his ticket Uptown.

That train is hilarious. Basically, it is like some form of purgatory, but without any maliciousness. After what seemed like an eternity and many years in limbo, Bobby is finally given his assignment: he is to return to Earth and act as a guardian angel and friend for Lenny Barnes (Jason Gedrick), a promising high school student who is constantly picked on in school, particularly by school bullies Fred Gallo (Stephen Gregory) and Bill McIntyre (Beau Dremann).

The one and only Jason Gedrick.

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Iron Eagle 1986 young hero
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However, Bobby is instructed that he is only allowed to reveal himself to Lenny and nobody else.

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Ooh, plot thickens.

Basically, Bobby is not allowed to enter heaven but has to stay in one of the lower levels or downtown until he has worked enough as an guardian angel in order to deserve paradise. Like all good things, you have to earn it first.

Get out the popcorn, it’s going to be a good read.

WINGED ADVICE #1: CONFIDENCE IS KEY

When Bobby meets Lenny he is for lack of a better word; a nerd.

Just for flare. I am providing one of my favorite meet and greet handshakes of all time. By my favorite WWE wrestler Mach Man Randy Savage with Hulk Hogan. Now he had style and oozed confidence!

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And not the Steve Urkel type, but a kid that just has no confidence. Bobby is about to help him change that.

The first time he sees Lenny he is being picked on by a bunch of jerks from his high school. He notices that the “kid has no confidence cause he’s got no style.” Truer words had not been spoken.

I will not ever forget being teased in school. It only made me stronger. I remember thinking this is bull$#%t! I’m only here to get an education. I’m not here for you or your approval!

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All people cared about were looks and popularity. I was like there has to be more to life than they way you LOOK!

I decided to ignore them and hit the books and the gym. I found an upperclassman that was willing to do my hair anytime I wanted, then I worked on having impeccably flawless hygiene and appearance.

I felt this. Just like Regine Hunter (Kim Fields) in Living Single.

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I was like Beyonce in that b*tch! I WOKE UP LIKE THIS!

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All the bullying and teasing stopped REAL QUICK.

That is why I focus so much on my health, education, and building wealth. And it paid off in spades. I own a home, have multiple retirement accounts, I have over $100,000 in just 1 index fund and I own a bunch of those! Thanks Jack Bogle for creating the first index fund in 1975 with Vanguard.

I’m not the only one that has been teased in school. Lots of folks have. I recently saw an interview with William Zabka (Johnny from The Karate Kid) while he was promoting Cobra Kai with Ralph Macchio.

When asked about bullying he said he hates it. There are 3 core people involved in bullying: the bully, the one being bullied, and the witness. Go tell an adult or someone you trust what is going on. Speak up. No one knows unless you tell them. Don’t be afraid to stand up, say something or defend yourself. Remember that bullying is only a season; it is not your whole life. This too shall pass. It is not permanent; it is only temporary. At the time, it seems like your whole world because in that moment it is, but you will grow up an this will end. Yes, he said all of that. He played the bully in a movie. That is fiction. In real life (IRL), he is anti-bullying.

In addition, I remember hearing Jillian Michael tell her story. She was chubby and overweight. The kids were relentless in their teasing. Once she started training in martial arts she said the teasing dried up like prunes and stopped real quick. Therefore, if you want to do anything in this life, the first thing you have to do after making sure you are safe, dry, and feed is to build up some confidence. It can change your life faster than just about anything.

How do you get it? Create a safe place and space for yourself to be who you are, but also to have a clean and neat appearance.

Coco Chanel once said the fastest way to change your appearance is to never underestimate the value of fresh-shaped eyebrows, clean glowing skin and a good haircut.

Basically, focus on hair, teeth, and skin.

You do this by drinking water, exercising, and eating well.

The End.

As far as clothing goes, just do the basics. You are in high school for goodness sakes! All you need are jeans, t-shirts, sweaters, and sneakers.

For the ladies, some fitted tops, jeans, skirts, dresses and heels. A nice blazer and black leather jacket are staples along with nude heels and black pumps. A little black dress is always great to have.

And most important, nothing too TRENDY! Styles change quick. They change so fast that styles have already changed while I was typing this sentence on this post!

Stick to regular staples and basic solid colors and you will never go wrong. Remember that red is the color of confidence.

Also, that you are your biggest cheerleader. You have to believe in yourself or otherwise no one else will. Find a way to build up your confidence and you will go a lot further along in your life.

That’s just my $0.02 cents. Smooches 💋

living single kiss GIF

WINGED ADVICE #2: CRUSHES DON’T LAST FOREVER AND NEITHER DOES BEING BROKE

Lenny has a crush on a girl named Sharon who is the most beautiful and popular girl of the class. He was totally obsessed.

But she does not even notice him until Bobby helps Lenny change his image and boosts his confidence. By doing this Bobby dresses Lenny up making him a playboy and tough guy so that he gets what he wants although Bobby knows that this is not the best. 

Lenny spent so much time obsessing over Sharon that the girl that really liked him wasn’t even in his eyesight, but was right in front of him in his friend Melissa (Nancy Valen).

Look we have all been there. Young love. Sometimes it goes unrequited. You will love again. I promise you. Like a friend told Romeo, during the infamous feud between the Montague’s and the Capulets), he must move on from Juliet, there are other beauties.

Shakespeare had that right. Nothing lasts forever. You must be willing to move on once you have done all you can. Did you do your best? Alright then, move on. Time heals all wounds and this includes a broken heart.

Now let’s talk money.

Don’t sped money like a drunken sailor.

Once you start earning some income, put some money aside. Even if it is only $5 dollars a week! This will get you in the habit of saving.

They say the niches are in riches. If that is so, then saving is the niche to building lasting wealth.

I started with nothing and slowly built what I have. First, I was saving $1 a day. Then it was $50 a month. I slowly started bumping it up every chance I got. Got a raise. Save it. Got a windfall. Save it. Can’t just let that money sit. Money can’t be idle.

See my post Money Lessons I Learned from Scrooge McDuck

Money must be invested and it has to keep circulating. Spend on what you need. If there is excess, then you can buy luxuries, but not before you have earned the money first. Learn it. Live it. Love it.

I finally started doing $150 a month and then doubled that. I started reading more on saving and figured “What the heck?” just cut out the crap, stop spending and save.

That is when I leap frogged from saving $3,600 a year to $5,000, $8,000, $10,000 and then $13,333. I sold, stop buying, or earned more and saved. From sacrifice comes great things. Get it. Got it. Good.

WINGED ADVICE #3: SHOPPING FOR A PURPOSE

One of my favorite scenes in the film was the shopping scene. Bobby takes Lenny shopping for new clothes. This boosts his confidence.

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In addition, he builds Lenny a car. Now that he has a new set of wheels and fancy clothes, he is ready to take on the world.

I am all for new clothes and buying things you need. Lenny needed to burn those clothes he had or donate them (waste not want not). They made him sad and lonely. He went from geek to chic. And his attitude along with it. However, they only got what he needed. No $5,000 Rolex, or $700 sneakers. Enough for the kid to get by and feel good.

See my post Shoe Game Is Not For The Frugal At Heart

That is what I do. That is how I was able to save thousands in annual clothing expenses and bank that money.

He was also economical in how he got a car. They went to a junkyard and put it together from all the spare parts lying around. No $500 car note there, which is the average that Americans are paying. Stop trying to impress people with your fancy gadgets.

Take a note from 50 Cent’s playbook. When in doubt: sell. Here is a cautionary tale.

Curtis 50 Cent Jackson recently sold his Connecticut mansion for $2.9 million. That is an 84% loss as he paid $4.1 million for the place in 2003. The reason he sold: money The place was a money pit. It cost a whopping $70,000 a month to maintain the property!

Therefore, he is paying $840,000 a year for his manse. He hasn’t even eaten yet! No gas was put in the Hummer (fill in any fancy car name here) and no food was put in the fridge. And don’t forget health insurance. That’s all got to be paid. In 9 years, 50 Cent will have paid over $7.5 million just to do nothing but sit on the sofa in his house! This 19 bedroom manse had no purpose other than to impress people. No one NEEDS 19 bedrooms unless they are running a bed and breakfast. Matter of fact, having a 10,000 or more square ft home is like having a small hotel. I’ll pass.

WINGED ADVICE #4: FOR THE LOVE OF MONEY OR FAMILY

Bobby later finds out that Lenny’s mother is his former girlfriend who has married another guy. Although not being allowed he makes himself visible to her…

and after some additional situations take place Lenny is challenged to a chicken race at the local quarry by Fred, Sharon’s former boyfriend. Having been told by Rafferty that Lenny will die just as Bobby did earlier, Bobby offers to trade his own chance to move Uptown (essentially, his own immortal soul) to save Lenny’s life.  He vows to give up his soul. A selfless act indeed.  

This unknowingly earns Bobby a trip to Heaven or “uptown” as the movie refers to it. Rafferty explains to Bobby that he had learned to love and value someone more than himself, and that is how one earned a ticket Uptown.

There are going to be times in this life when you will have to chose what matters most to you. What do you value? I remember hearing the Osmonds father (yes, those Osmonds of Donnie and Marie fame) tell his children: faith, family, then career.

I pick my investments based on what I value most: freedom. The freedom to choose what I do with my life and my time.

Money is infinite, but time is not. Once it’s gone, it is gone forever.

That is why I only do what excites me. You only get one life. One shot. One chance. I suggest we all do what Eminem says, ” You better lose yourself in the music, the moment You own it, you better never let it go You only get one shot, do not miss your chance to blow This opportunity comes once in a lifetime.” I agree wholeheartedly.

If you like this post, then check out the film The Heavenly Kid. Because life and you money are too important to “just wing it.”




Lipstick Confessions: Confessions Of A Teenage Waitress

Lips, Taboo, Secret, Silence, Mouth

You read that right.

Like Usher, these are my confessions.

Lipstick Confessions that is. 💋

Not Confessions of a Teenage DRAMA QUEEN. Even though I was a teenager, but of a TEENAGE WAITRESS!

Being a waitress was a humbling experience.

After reading about Financial Samurai working for $3.50 an hour at McDonald’s, I was inspired to share my story of making $2.39 an hour + tips while waiting tables at Shoney’s.

It was early experiences like that that shaped my attitudes toward money and work today.

It is also a reason why I try to tip well.

I believe in being a good tipper because that is how people make their living. My father always says tip well enough for people to feel it. I concur.

A waitress is a pretty grueling job.

You are on your feet for hours on end. You must constantly be moving and taking orders or picking up food. Then there’s the nonstop cleaning, folding of napkins, packaging silverware, putting ketchup, salt and pepper and other condiments out and etc.

That early job experience was enough to make me want to work and study so hard while I was young, so that I would not have to when I was older.

This job and other hardships are what drove me to dig my way out of debt and start saving over 40% of my after-tax income.

I have always been thrifty and a saver.

It is because of that, I knew I could not marry someone that is fiscally irresponsible and stay married to them. It just wouldn’t work.

See my post on Why I and Halle Berry Save Soo Much

I have never had the urge to go rent a Mercedes-Benz, drive down to Vegas, buy lottery tickets at every 7-eleven along the way, buy a $4,000 Cartier wrist watch just cause you know bosses gotta be on time, visit a psychic who says my lucky numbers are 4,5, and 6, and then bet it all on black.

Nope. I have not given any of that any thought at all.

Except maybe that the color of the S-Class Mercedes with a 3-layer fabric top is impeccably crafted for coupelike comfort, sleekness and outward views when it’s up, or vanishes in under 20 seconds, even as you accelerate to 30 mph should be silver.

Other than that, no thoughts whatsoever!

See my posts

Finance Lessons From Flipping Vegas

Mega Millions Win Or Bust

At age 17, I was a teenage waitress.

It would be six years before I began my career working in finance, banking, and loans.  

And a full decade after that waitressing job, before I got hired to work at a top-tier private university with excellent benefits.

But first I had to pay my dues.

SLINGING HASH TO MAKE A BUCK

I looked down at my bank receipt.

I had about $10 bucks in my bank account. I was BROKE!

I needed a job.

Being only 17 didn’t provide me with too many options, but as they say, “beggars can’t be choosers.”

I heard the local Shoney’s was hiring wait staff. To my surprise, I applied and got the job.

We went in for training at around 9 am the next week after being hired.

My uniform was black pants, white button shirt, sneakers, a small bow-tie and a black apron.

I only worked there for one summer.

That was long enough to realize I did not want to make my career in the food service.

I knew this was going to be the first, last, and only job I ever took that dealt with serving or making food.

See my post Fast Food Nation

After reading the book Nickel and Dimed, I felt that the author expressed my views on how she and I observed the treatment of low-wage workers was pretty spot on!

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The job: take orders, greet customers, keep the restaurant clean, and serve food.

Sounds simple right. Wrong.

We had a busy body manager. Chaotic shifts. And lulls in customers.

Shoney’s was an eat-in restaurant (mostly was a buffet place) that started in Tennessee, but had restaurants in the Mid-Atlantic region.

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So many people opted for the breakfast mostly leaving afternoons and dinner times pretty sparse inside. 

That means little to no tips!

Not something I was told upon being hired.

Some of the food on the menu looked better than it actually was in-person, but all the food was at least good.

And no matter how hard I worked, it never felt good enough to our nitpicking manager who was always so concerned about how she looked in the eyes of the suits at corporate.

She was too busy kissing their a$$ to worry about us lower employees on the totem poll.

Little good it did her.

She was a ball of constant worry and stress, a chain smoker, and overweight. This was our manager. Our fearless leader?

Is this what management is supposed to look like in America or was this just her issue?

There has to be better ways for her to almost be eligible for food stamps and make a buck, but what do I know.

My lunch break was the only thing I looked forward to because it was the one-time no one could give you any orders and you could get off your feet and rest.

I usually ate a Philly cheesesteak because it was just so good. Calories be damned!

Even some of the cooks seemed disgruntled. They liked to flirt with waitresses and I think one was dating one of them! Whatever.

I just needed the cooks to be happy so that I could get food out piping hot and fast so I could make this money.

I need those tips!

After calculating the $2.39 an hour, working 40 hours a week would only get me $95.60! And that’s gross not net! 

Anyway, I now had to deal with the situation.

The goal was to have spending money to hang out with my friends and buy all the cool stuff I always wanted but could never afford.

To be so young and naïve. If I would have been thinking, I should have started tucking money into a Roth IRA. I would probably have had less anxiety when I got my first REAL job!

If I would have saved just $2,000 a year from ages 16-26, without adding another penny, in 40 years that money could have turned into $1,586,894.95 at a 10% return with compound interest! That would have required me to only stash away $22,000!

Just some food for thought right there. Start investing young!

WELCOME TO THE WONDERFUL WORLD OF TIPPING

Like the first episode of Buffy the Vampire Slayer, “Welcome to the Hellmouth,” I was welcomed to how cheap people really are.

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Tipping is the holy grail of waitressing and bartending.

See my post on Money Tips From Buffy The Vampire Slayer

Make that money honey.

I had a wide range of tips, as anyone who works for tips can tell you.

My range was this: $0 to $27.

The highlight of my night was always counting up my tips when I got home. I think the highest I ever got was $100 bucks in one day!

I know that may not sound like a lot, but to a high school kid in the 90’s that was good money.

Things were also cheaper back then as well.

You bought the item, like a pair of shoes or video game, and then the transaction was over.

Not like subscription mania that has now swept across the nation.

See my post America is the land of subscriptions

One of the smallest tips I ever got was from 2 girls I went to high school with. We were not friends but I didn’t expect to only get a $1.17 tip! That was basically the change from the meal they just ate and paid for. Maybe they should have put in an application to work here too!

I remember one time in college when I got a ride home from a weekend class I was taking (I was doing 6 classes that semester), telling me she worked at her brother’s restaurant and she made sure to be on point in order to get that $20 tip!

My days at Shoney’s was long gone by then, but I remember thinking it is far better to work at a higher end restaurant like her because you can make more money.

Lesson Learned: Focus working or catering to high-end clientele that can afford to pay for your services.

SAVE LIKE YOU WILL LIVE FOREVER

Have you ever heard the saying “Live like tomorrow is your last day on earth?”

Well, I like to save like I am going to live forever.

I learned this lesson, like James Brown said, you have to Pay the Cost to be the Boss.

That song and The Payback made me want to get my act together.

I put a plan into action. I was going to save money out of every paycheck.

It took years to make happen, but I went from saving nothing to putting aside 9% of my income. Then from saving $1 a day to $13,000 a year!

The plan had been to stop living paycheck-to-paycheck. 

That was okay, but I needed a goal. Something to aim at.

So I picked a number. $13,333 was that number.

I chose it for a few reasons: 1) The number 3 is my favorite number; 2) I saw that another blogger was saving that amount per month so I aimed to duplicate that, but started smaller; and 3) I did the math and discovered I could have over $100,000 cash if I did this for about 7.5 years.

I also knew it was possible that if I invested $100k in the stock market that after 30 years without adding another dime, I could have $1 million shored up for retirement.

Considering that about 20% of Americans have $0 saved for retirement, I knew that I better prepare because tomorrow does come.

The future is going to happen.

If I was going to bet on anything, I would bet on that. Forget Vegas. You can bet the farm the future is coming. And it’s coming fast!

Remember that 9% I mentioned earlier. Well that small sum turned into a small nest egg of $25,000!

And most of that sum is invested in just a few stocks!  

The power of compound interest baby!

Pro Blogger IRA # 1 of 3 (Personal Finance)
Traffic Estimate: 50,000 pageviews
Pinterest Estimate: 48,000 monthly viewers
Stock Price Stock Quantity Current Balance
AAPL $201.35 37.256 $7,501.50
AMZN $1866.86 5.000 $9,334.30
Total
    $16,835.80

Source: GreenbacksMagnet.com

I hope this post inspires people to understand the value of a dollar and that paying off debt and saving are far better than blowing all your money on things. 

Invest and watch your money grow!

The Skeleton Key Of Personal Finance

Time, Watch, Key, Old, Antique

To follow, without halt, one aim: There’s the secret of success. – Anna Pavlova

To save, without stopping, one goal: There’s the secret of building wealth. – Miriam Joy, Founder of Greenbacks Magnet

You are about to receive a gift.

From me to you.

I am going to give you the secret to untold riches beyond your wildest dreams and I will give it to you for free.

You will learn how to amass a fortune so great that no man can measure its vastness.

I’ve got a secret. Shhh. But I’ll tell you. Come closer.

I’ll give you the secret to how I became a savings wildcat.

I pick a number, say $10k, divide it by 12, and save that amount monthly.

How you ask? I automate it.

The End.

Smooches 💋

What will this secret cost you? Nothing. Therefore, you will not have to sell your soul to get access to it.

What am I talking about? Saving money.

That is the Skelton key of building wealth. You save a portion of every dollar you earn. Then you invest it.

Investing is the equivalent of being paid royalties as an actor, musician, or author.

HERE. WE. GO.

WHAT IS A SKELTON KEY?

Skeleton Key, Antique, Old World, Wood

A skeleton key is a type of master key in which it is designed in a way so that it can fit and open numerous locks.

The term derives from the fact that the key has been reduced to its essential parts.

Saving money unlocks all the doors to everything you have ever wanted.

Have you ever wanted anything, but could not find a way to get it?

Saving money will solve that problem for you.

See my post How Millennial Money Inspired Me To Start Saving $13,333.06 A Year

My recommendation is this:

Women save $0.50 of every dollar you earn.

Men save $0.40 of every dollar you earn.

Why the difference? Because women earn on average $0.80 for every dollar a man earns.

Therefore, men have to save less and women have to save more in order to reach the same goal of fill in the blank $ dollar amount here.

WHY IS SAVING SO CRUCIAL?

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

All wealth building starts with saving.

Don’t let anyone tell you any different.

Sure you may have to invest and diversify your money such as investing in stocks, real estate, and bonds, but you have to save money FIRST before you can buy or invest in anything.

If you have ever read a Jane Austen or Charles Dickens novel, then you know the theme always comes around to money.

See my post A Christmas Carol: Lessons In Finance, Business, And Life

Considering that Jane Austen never married and Charles Dickens grew up in a poor house, it is not surprising that the authors chose to hone in on this topic.

The sorted topic of coin. Both authors are British and in that society they have a class system.

You are either born into wealth and inherit it or you must work for many years and earn your fortune.

Many of the landed gentry lived off of their land. Profits that were made from owning land was how they made a living.

That monthly sum could be the difference between prosperity and being locked away in poor houses, which were a form of jail for the poor.

Here in America, we do not have a class system of royalty, nobility, tradesmen, shop keepers and owners, or farmers.

However, we do have a social ranking and social class. Those are the haves and the have nots.

If you want to find yourself in the realm of having, then you best start saving money for your future today.

Many years ago, I was laughed at for my paltry savings amount of 9% per year.

Now I am saving over 40% of my income.

No one laughs at me now.  

HOW SAVING MONEY CAN MAKE YOU HEALTHIER

They say wealth equals health. And that is an understatement if I ever heard one.

Having money allows you to pay for all of your needs.

This includes doctor visits, healthy food, and medicine.

See my post Why America Doesn’t Have Free Universal Healthcare And A Look At Those Who Do

Even something so simple as reading glasses can get pricey. I once saw a pair of Oakley glasses for $300.

You want organic fruit and meat? Well that costs.

Eating well not only affects your waistline, but also your brain functions.

It is said that children that do not get the proper rest, nutrition or eat breakfast before school perform lower on tests and have harder times concentrating.

See my posts Wealth Really Does Equal Health

HOW SAVING MONEY CAN MAKE YOU HAPPIER

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

When you have the means to pay your bills, eat, and work in good health; then you are fortunate indeed to be able to pay your own way.

Being able to afford your monthly nut just makes you happier overall.

You are protected from the pitfalls of many of life’s hiccups.

Money offers protection.

See my posts

Dwayne Johnson: The Rock Solid Way And The Fast And The Furious Way To Make Millions

5 Wealthy Nuggets Of Wisdom From The Count Of Monte Cristo

Halle Berry On Success And Failure: Why She And I Continue To Save So Much

The One-Tweet Financial Plan  

Money Lessons I Learned From Jay Leno

Money Advice I Got From John Legend

Money And Greek Myths: Lessons From Clash of The Titans

You can get just as much pleasure saving as you can from spending.

I seem just as happy being able to have the ability to afford items than am to actually purchase them.

It is a great feeling to payoff debt. Every check you write frees you from obligation to lenders. Then your money can stop serving THEM and start serving YOU.

Make a goal to write down evet single bill you have and person you owe.

I started doing this and tackling every debt I had one by one.

Once I paid of my car, I owed $30,000 and my personal loan, I owed $20,000, then things started really taking off from there.

I was able to take these monthly payments, $450 and $333 respectively, and start investing that money. Now that money works for me in the stock market.

Here is one stock I recommend: VFINX or VFIAX. (You can also invest in the VTSAX or any equivalent)

Portfolio composition of VFIAX

Month-end 10 largest holdings
(22.40% of total net assets) as of 03/31/2019 

1Microsoft Corp.
2Apple Inc.
3Amazon.com Inc.
4Alphabet Inc.
5Facebook Inc.
6Berkshire Hathaway Inc.
7Johnson & Johnson
8Exxon Mobil Corp.
9JPMorgan Chase & Co.
10Visa Inc.

Whatever you do just make sure you not just SPEND money but SAVE money.

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

Doctor, Luggage, Verbandszeug, Patch

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

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

Those things don’t come cheap.

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

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

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

However, we cannot doubt Universal Healthcare’s popularity.

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

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

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

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


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

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

So let’s talk about healthcare.

WHAT IS UNIVERSAL HEALTHCARE?

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

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

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

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

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

We will get into that later.

WHAT COUNTRIES HAVE UNIVERSAL HEALTHCARE?

Doctor, Luggage, Verbandszeug, Patch

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

Well, now you can find it right here.

That’s right. I did the work for you.

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

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

Well, you are about to find out.

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

Country                         Start Date   System Type

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

Norway                               1912       Single Payer

New Zealand                    1938       Two Tier

Japan                                    1938       Single Payer

Germany                            1941       Insurance Mandate

Belgium                              1945       Insurance Mandate

United Kingdom           1948       Single Payer

Kuwait                                1950       Single Payer

Sweden                              1955       Single Payer

Bahrain                              1957       Single Payer

Brunei                                 1958       Single Payer

Canada                               1966       Single Payer

Netherlands                    1966       Two-Tier

Austria                               1967       Insurance Mandate

United Arab Emirates     1971       Single Payer

Finland                                 1972       Single Payer

Slovenia                               1972       Single Payer

Denmark                             1973       Two-Tier

Luxembourg                      1973       Insurance Mandate

France  1974                       Two-Tier

Australia                              1975       Two Tier

Ireland                                  1977       Two-Tier

Italy                                       1978       Single Payer

Portugal                               1979       Single Payer

Cyprus                                  1980       Single Payer

Greece                                 1983       Insurance Mandate

Spain                                     1986       Single Payer

South Korea                     1988       Insurance Mandate

Iceland                                 1990       Single Payer

Hong Kong                        1993       Two-Tier

Singapore                          1993       Two-Tier

Switzerland                      1994       Insurance Mandate

Israel                                     1995       Two-Tier

United States                   2014?    Insurance Mandate

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

WHAT TYPES OF HEALTHCARE SYSTEMS ARE THERE?

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

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

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

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

What is free universal healthcare?

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

Which country has free medical care?

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

HOW ARE COUNTRIES ABLE TO AFFORD IT?

Now let’s talk about them taxes.

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

Is health care free in Canada?

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

Does Canada have good healthcare?

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

How is healthcare funded in Canada?

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

Do Canadians really pay more in taxes than Americans?

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

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

A brief note on France.

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

WHY ALL THE UPROAR OVER UNIVERSAL COVERAGE?

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

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

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

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

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

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

As you know, it all comes down to money.

What Is Your Degree Worth

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College is a reward for surviving high school. – Judd Apatow

Let’s face the facts. A college degree is not as valuable as it used to be.

Many folks are landing starting salaries well below what it cost them to get that required degree before starting that job that pays less than what it cost to go to school to qualify for the job in the first place.  

According to PayScale, the typical college graduate with zero to five years of experience is raking in $48,400.

The National Association of Colleges and Employers (NACE) states that average starting salary for graduates is about $50,004. So what does that say about paying $100,000 for that creative writing degree? That it is overpriced.

Let’s get down to brace tacks.

HOW MUCH MORE IS COLLEGE TODAY?

The price of college has now outpaced inflation.

college-education.procon.org

The average yearly cost of 4-year public college cost from 1971-2016:

2016: $20,967

1971: 8,734

140.1% increase in college costs

During that same period of time wages decreased by 5.4% over those 45 years.

You read that right. Wages actually went DOWN instead of UP with a college degree in your hand.

See my post College Alternatives that could save you $100,000

WHAT IS THE PRICE OF COLLEGE VS THE VALUE OF YOUR EDUCATION?

After you get that degree, then you have go out and get that coveted job. You want a great starting salary, but most employers will tell you they cannot quantify your knowledge but so much.

Really?

Cause college are sure about to slap a price tag on getting that knowledge.

Why not offer the same salary as the cost of the degree?

For instance, if you pay $45,000 for your sociology degree, then that would be your starting salary.

Let’s think about that for a second.

What if colleges and employers printed the cost of degree and payment for that degree? Then you would see something like this:

Petroleum/Mechanical Engineering: Degree cost and starting salary $90,000.

Psychology: Degree cost and starting salary $47,000.

That would alleviate a lot of stress and salary negotiations right there.

THE MOST EXPENSIVE DEGREES ON THE PLANET

“A university is just a group of buildings gathered around a library.” ― Shelby Foote

Education is an asset. And investing a great deal of money in a degree doesn’t necessarily guarantee a first-class education. However, it can alter the trajectory of your life if you are able to parlay all those late nights writing papers into some serious coin.

As of 2019, Harvey Mudd College has taken the crown for the most expensive college in the world costing students approximately $57,401 for the upcoming 2019/2020 academic school year.

If we time that by four, which is being nice considering the average college kid is graduation in 5-6 years, then we get a mind-blowing $229,604!

For some perspective, if we invest that money instead over four years and let it ride, then after 30 years with an 8% return you would have $2,310,426.27! Yes, those four years cost you over $2 MILLION!

You literally could have used your college savings and invested every penny in the stock market and gotten a higher return than what many will get after 10 years of drudgery repaying that $200,000.

It gets even more expensive if your kid starts in at the top and goes to a private school from K-12. This could cost you even more and the losses start to really pile up!

Say those adolescent years are spent in some swanky private school at $50,000 a year. Over the course of 13 years, you would have paid $650,000! Add that $229,604 and you are staring at education bills of almost $900,000!

I would take a check for $900,000 at the age of 22 any day of the week over going to fancy private schools for 17 years!

And just in case you were wondering.

If you invest that $50,000 private school money over 13 years in the stock market, you would have $1,160,746.02 with an 8% return. And add in four years of college, that would net you $1,822,512.19.

Going to public school isn’t looking so bad now is it?

Here are some of the most expensive colleges in the United States and the world.

These 12 colleges are currently the most expensive in the United States:

12. Duke University (18)
2018-19 Tuition & Fees: $55,960

11. Bucknell University
2018-19 Tuition & Fees: $56,092

10. University of Southern California
2018-19 Tuition & Fees: $56,225

9. Tufts University
2018-19 Tuition & Fees: $56,382

8. Amherst College
2018-19 Tuition & Fees: $56,426

7. Franklin and Marshall College
2018-19 Tuition & Fees: $56,550

6. Landmark College
2018-19 Tuition & Fees: $56,800

5. Harvey Mudd College
2018-19 Tuition & Fees: $56,876

4. Trinity College
2018-19 Tuition & Fees: $56,910

3. Vassar College
2018-19 Tuition & Fees: $56,960

2. University of Chicago
2018-19 Tuition & Fees: $57,006

1. Columbia University
2018-19 Tuition & Fees: $59, 430

These 11 colleges are currently the most expensive in the world:

11. Yale University
2018-19 Tuition & Fees: $49,480

10. UCL (University College London)
2018-19 Tuition & Fees: £9,250 or $12,080 USD

9. ETH Zurich (Switzerland)
2018-19 Tuition & Fees: CHF 1,298 (~US$1,310)

8. University of Chicago
2018-19 Tuition & Fees: $57,006

7. Princeton University
2018-19 Tuition & Fees: $43,450

6. California Institute of Technology
2018-19 Tuition & Fees: $45,390

5. University of Oxford
2018-19 Tuition & Fees: £9,250 or $12,080 USD

4. Harvard University
2018-19 Tuition & Fees: $46,340

3. University of Cambridge UK (United Kingdom)
2018-19 Tuition & Fees: £9,250 or $12,080 USD

2. Stanford University
2018-19 Tuition & Fees: $46,320

1. Massachusetts Institute of Technology
2018-19 Tuition & Fees: $47,704

Those are expensive colleges.

Did you know you could go to university cheaper abroad?

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For some perspective on exactly how expensive colleges are in the United States, as an international student you could go to the same college as Prince William and Duchess Kate Middleton for less than it costs to go to Harvard, Yale, or Princeton! The cost is £20,770 or $27,125 USD. That is what it would cost annually to attend the University of St Andrews.

NOT ALL DEGREES ARE CREATED EQUAL

Education is not an equalizer. If you go to the same college as a science nerd majoring in Math, while you are majoring in philosophy, you both are not on equal footing by a long shot.

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In light of the recent college bribery scandal, let’s talk top-tier universities.

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If you were to get an acceptance into Yale or Duke University, congrats to you, as you are among the college elite. However, don’t break out the celebratory champagne just yet.

Although you and another student may be paying the same amount to go Duke, if you major in a different field, then that degree can easily eclipse yours.

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Put it this way. You and another student both pay $48,000 a year over four years. That is $192,000. You become an engineer raking in big bucks right after grad by getting a starting salary of $95,000. Your friend on the other hand, let’s call him Joe, majored in piano or violin and is only able to get a starting salary as a backing musician for $38,000.  

That is a difference of $57,000 a year.

You ask how is that so? We went to the same university. We paid the same amount.

Yes, but your degree is in higher demand than Joe’s.

Then you may ask yourself: Well why didn’t Joe pick a more in demand degree? And therein lies the rub.

Joe is a skilled musician. That is where his passion and interest lie. Even if he would have seen a brochure, which there aren’t any in wide circulation on any college campuses that I have ever been to, showing the starting salaries of majors he still would have chosen music.

The playing field of majors is not level. Therefore, you need to decide before you even step foot on a college campus what you want to be.

This is a small list of what employers are paying for college majors.

My suggestion is that you do a search on what it costs and what it pays to be a lawyer, accountant, doctor, or violinist. When you know what your options are, then you can at least make an informed decision.

Precious Stones of Wisdom: Life Lessons from Indiana Jones and the Temple of Doom

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Train yourself to let go of the things you fear to lose. – George Lucas

If you have ever seen any of the Indiana Jones films, then you know they are all full of action and adventure.

However, my absolute favorite in the film franchise is Indiana Jones and the Temple of Doom.

There had some jaw dropping moments throughout the entire film.

They take you on the joyride of a lifetime in 120 minutes!

You get to see Indiana Jones (Harrison Ford) at one of his most defining moments in his career. As well as, watch him put the well-being of people ahead of money and things.

The series was created from the mind of Star Wars creator George Lucas and directed by Steven Spielberg.  

Now let’s go back to 1984! No legwarmers required! 😂

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RULE #1: LISTEN

The film was released on May 8, 1984. Adventure sequel extraordinaire. The film went on to gross $333.1 million dollars at the box office.

My favorite number is 3. That is one of the 3 reasons I chose to start saving $13,333 a year.

See my post

Halle Berry on Success and Failure: Why She and I Continue To Save So Much

Here is the synopsis of the film.

Intrepid archaeologist Indiana Jones, on the trail of fortune and glory in Old Shanghai, is ricocheted into a dangerous adventure in India. With his faithful companion Short Round (Jonathan Ke Quan) and nightclub singer Willie Scott (Kate Capshaw), Indie goes in search of the magical Sankara stone, and uncovers an ancient evil which threatens all who come into contact with it.

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The second of the George Lucas/Steven Spielberg Indiana Jones epics is set a year or so before the events in Raiders of the Lost Ark (1984). After a brief brouhaha involving a precious vial and a wild ride down a raging Himalyan river, Indy (Harrison Ford) gets down to the problem at hand: retrieving a precious gem and several kidnapped young boys on behalf of a remote East Indian village.

His companions this time around include a dimbulbed, easily frightened nightclub chanteuse, and a feisty 12-year-old kid named Short Round. Throughout, the plot takes second place to the thrills, which include a harrowing rollercoaster ride in an abandoned mineshaft and Indy’s rescue of the heroine from a ritual sacrifice.

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In the beginning of the film, Indiana instructs his companion to stay out of the light and follow his steps exactly behind him.

Of course, the man gets greedy and this ends in a Mortal Kombat style fatality.

Here is Indiana Jones the Atari game.

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Indiana Jones and the Temple of Doom Atari  screenshot photo

And here is Mortal Kombat.

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If you truly want to be successful, you must learn to listen to those that are more knowledgeable than you are.

That is why I listen to and read the shareholder letters of Warren Buffet.

He says stay away from debt and ALWAYS have cash reserves.

This simplistic and basic money advice is why his company Berkshire Hathaway has the most expensive stock on the NYSE at over $300,000!

According to The Motely Fool, one takeaway from the annual shareholder letter (which are excellent reading sources for learning about investing and life) is the following: At the end of 2018, Berkshire Hathaway had nearly $112 billion of cash and equivalents on its balance sheet, officially consisting of $30.4 billion in cash and $81.5 billion in short-term Treasuries.

You must have cash if you are to build wealth.

See my post Forget Simon, Do What Buffet Says

RULE #2: FOCUS ON WHAT IS MOST IMPORTANT

There is a scene in the film where our hero is poisoned. But, there is a cure.

The anecdote is rolling around on the floor and so are millions of dollars in diamonds in a small jewelry bag.

Willie comes across the anecdote while trying to find the diamonds. Instead of casually dismissing it as many might have, she picks it up and puts it in a safe place. This ultimately saves Indiana’s life.

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There are times in your life when you will have to choose: right or left.

I prefer to choose the path of least resistance but also the one that will help the most people.

Remember: The needs of the many outweigh the needs of the few.

In The Wrath of Khan (1982), Spock says, “Logic clearly dictates that the needs of the many outweigh the needs of the few.” Captain Kirk answers, “Or the one.” This sets up a pivotal scene near the end of the film.

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Speaking of Star Trek, I read William Shatner’s book Live Long and… which was pretty good.

He says to spend the money on the living. No expensive funerals or caskets. Pay for what you want in cash and if you don’t have the money, then you can’t afford it.

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RULE #3: WHEN IN DOUBT, RUN

Indiana comes across another archaeologist that steals his stone he just risked his life to get!

Instead of trying to fight for it, he lets the man take it. While the man is distracted with his patting himself on the back and his own vanity, Indiana makes a run for it! And keeps his life long enough to fight another day.

The same rules apply when buying stocks or spending money.

If the risk is too high for you, then sell. You will sleep better at night. Forget trying to get you money back. That is like gambling in Vegas.

Or if you just so happen to come across someone in a nice suit and briefcase that promises to double your money, pass.

There is no such thing as guarantees. All risk involves possible losses. That is why you do your homework and take calculated risks.

If it sounds too good to be true, RUN!!!

In the book called Winning the Money Game: Lessons Learned from the Financial Fouls of Pro Athletes by Adonal Foyle. He was an NBA player who describes the things he says while playing in the league in regards to how other athletes dealt with financial management or lack thereof.

He that said you should learn the basics of money and that you should rule your money or money will rule you. He saw many people lose homes, cars, wives, and careers.

In addition, he said you should audit anyone who comes into contact with your money. That includes family. Even your MOM!!! Shocking right???

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See my post More Money More Problems

RULE #4: FOOD IS FUEL, BUT NOT ENTERTAINMENT

One of the absolute best scenes in the film is the dinner scene.

I will not give too much away, but let’s just say the room is full of snakes! LITERALLY!

They say health equals wealth.

Let’s say you are investing for the long-term (as you should be!). Then in order to realize those gains, you must live long enough to see them.

That requires you to eat your three square meals, lots of fruits, nuts, berries, leafy greens and veggies. In addition, drink mostly water and tea.

This will alleviate 90% of ailments that are associated with poor diet.

Food is not for taste; it is for nutrition.   

And please, no smoking.

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Can’t stand exercise? Find a fun or simple activity such as bowling, walking, or dancing. Done.

See my post Health Really Does Equal Wealth

RULE #5: THE KIDS ARE OUR FUTURE

Indy sees that children need his help. He does not turn his back on them. He helps them.

They are more precious than any stone.

People were always more important to him than things or money.

See my post Generosity Can Go A Long Way

You want to help someone in need?

Read to the elderly.

Start a book club.

Volunteer to be a troop leader like Phyllis Nefler in Troop Beverly Hills.

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Donate to college scholarship funds.

The point is to get involved.  

You are powerful. More powerful than you know.

One person can change and lift all tides.

Case in point, the late Senator John McCain voted against the repeal of the Affordable Care Act. That vote saved MILLIONS from losing healthcare coverage! One man. One voice. One vote.

I’m just saying.