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.
Careers, Celebrities and Money, Credit Cards, Financial Freedom, Financial Independence, Investing, Real Estate, Saving, Self-Made Millionaires, Wealth

How Arnold Schwarzenegger Totally Recalls making $20 million-dollar paychecks

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Strength does not come from winning. Your struggles develop your strengths. When you go through hardships and decide not to surrender, that is strength. – Arnold Schwarzenegger

Arnold Schwarzenegger is one of the biggest movies stars in the world. His iconic roles in The Terminator, Predator, Total Recall, and True Lies are just some of his hit Hollywood blockbuster movies. During the 80’s and 90’s he raked in big bucks at the box office and cashed in big paychecks at the bank as a result.

In my quest to study the self-made, I decided to read up on the “Governator” himself, Arnold Schwarzenegger.

I actually mentioned Arnold in a couple posts I wrote, Forget casinos, bet on yourself and Money Lessons I learned from Jay Leno.  Now, I am going to talk about how he became self-made.

Arnold wrote his autobiography, written in 2012, entitled, “Total Recall: My Unbelievably True Life Story.” Clocking in at 656 pages long, it is a massive read. I actually completed this undertaking last December 2017. It took me 3 weeks to finish reading from cover to cover. In the book, Mr. Schwarzenegger actually lists his paychecks for his hit films. At one point, he was making $20 million per film.

How did he do it? There is only one word to describe it: unbelievably.

Here is his story.

ALL GREAT STORIES HAVE GREAT BEGINNINGS

The mind is the limit. As long as the mind can envision the fact that you can do something, you can do it, as long as you really believe 100 percent. – Arnold Schwarzenegger

Arnold Alois Schwarzenegger was born on July 30, 1947, in Thal, Styria, Austria. His father, Gustav Schwarzenegger, served in World War II. Arnold’s mother, Aurelia, was working at a local shop when she spotted his father in uniform. That was all it took for her to fall for him as she loved a man in uniform. I must admit, so did I.

His parents married on October 20, 1945. His mother was 15 years younger than his father as she was 23. They were strict disciplinarians. Arnold said in Austria the rod was not spared if a child was disobedient. In the book, he said his father would make him and his brother earn their breakfast by doing pushups or sit-ups.  His father believed that the way to fix any problem was through discipline.

YOUNG EXUBERANCE

Arnold was an average student but, was popular and well-liked for his boundless energy, humor, and cheerfulness. He started playing sports and picked up his first barbell at age 14. He decided that bodybuilding would be his career. His deep interest in the sport took up almost all his spare time. At one point, he even broke into the local gym when it was closed and began to lift weights for a couple hours just to get in his workout.

Money was tight growing up. There was no inside plumbing or bathroom. They fetched water to bathe from a local well and one of the highlights of his youth was getting a refrigerator, where he said they would marvel at the opening and closing of the fridge door. When going shopping his mother only used cash and never bought anything other than the essentials.

Austrians believed in conformity and were not allowed to be individuals. However, Arnold had different plans. He was considered a rebel because he wanted to move to America and be rich. He stated he wanted to be somebody. Due to his rebellious tendencies and other issues, Arnold was never close to his father as his favorite was Arnold’s brother. However, he had a close relationship with his mother until her death.

A chance meeting at his bodybuilding coaches house would change his life. Arnold, in 1966, met bodybuilder and movie star Reg Park, his idol, and he went on to become his mentor. Schwarzenegger decided he would not only be a body builder, but also a movie star, just like Reg Park.

BARBELLS AND COMPETITIONS

Training gives us an outlet for suppressed energies created by stress and thus tones the spirit just as exercise conditions the body. – Arnold Schwarzenegger 

Arnold would work out almost every day. Lifting weights became an obsession. He would break into the gym on weekends when it was closed and work out.

He couldn’t stand to miss a workout. Arnold has said he couldn’t even look himself in the mirror, if he missed a workout. That is dedication. This was 1961. By 1965, all Austrian males, at the age of 18, are required to fulfill one year of military service, but Arnold had other plans.

AWOL BODYBUILDER

While in basic training, Arnold learned he was able to eat meat every day. Growing up, his mother had a garden where she would grow vegetables so she could feed her family on a tight budget. They rarely ate meat. Once he was able to get protein on the daily, he was constantly growing out of his uniforms. He went up a size every month and required a new uniform several times.

During his service, he learned basic tank mechanics, almost wreaked one by not putting it in park, and learned to ride a motorcycle. He said those skills would later serve him well while doing the Terminator and other films. Arnold learned to become pretty fearless. He was scared, but he would push ahead anyway.

During his time in the military, a Junior Mr. Europe Contest came up. He went AWOL and served a week in military prison because he chose to attend. But Arnold won that title.

He later received a job offer to work and train in a gym as a bodybuilder. He used this information and his past transgressions to convince the military to release him and he received an honorable discharge. That competition in Europe made him famous and the Mr. Universe title was his ticket to America-the land of opportunity, where he felt he could become rich.

CALIFORNIA BOUND AND HOLLYWOOD DREAMS

Arnold was happy to leave Austria as he had been telling people for many years as a kid he was going to America, but no one believed in his dreams. But the day came in October of 1968, when he was headed to California to train at the infamous Gold’s Gym in Venice, Los Angeles. He could barely speak English, but at the age of 21, was going to America to live and work.

Arnold was able to get a role in a film in 1969, “”Hercules in New York”, which paid him $12,000. He continued to train from 1970-1974 non-stop. In 1970, he won his first of seven, Mr. Olympia titles.

EDUCATION IS JUST AS IMPORTANT AS PHYSICAL FITNESS

In the 1970s, Arnold is enrolled in college throughout the decade. He bounced around to several taking math, English, science, and eventually earned his bachelor’s degree from the University of Wisconsin-Superior in 1979. It took about 10 years, but finally he had his college degree.

He also stated in the book he would write down his goals on an index card at the start of every new year.

At one time in his life, he met Pope John Paul II in 1983, they talked about workouts. The pope rose daily at 5 a.m. in order to stick to his regimen. It was something like 300 push-ups. If he could do it, this book says, you can do it, too. This is where I got the idea to start my daily fitness routine. I, personally, like boxing.

ALL ROADS LEAD TO HOLLYWOOD

All roads not only lead to Rome, but in Arnold’s case also to Hollywood, California.

OLYMPIC CHAMPION

Arnold also competed in the Olympics and won the title of Mr. Olympia 3 times. After the 1971-74 competitions, in 1975, filmmakers convinced him to do the bodybuilding film Pumping Iron.

SAVING MONEY AND INVESTING

The worst thing I can be is the same as everybody else. I hate that. – Arnold Schwarzenegger 

Arnold is big into frugality. He saved every dime he could from any winnings he made while competing. When he first got to America, he had $27,000. That is the equivalent of $173,000 (adjusted for inflation) in 2017. His motto was turn every dollar into two.

Arnold invested his money in real estate. He researched for 3 years and worked with an agent before finally setting his sights on putting a down payment on his four-unit apartment building at the cost of $214,000. Then he sold the building the next year for $360,000. Then immediately put his profits into a new 12 unit building. He did this to avoid the huge tax bills of his profits.

The Los Angeles real estate market was booming. You could make $100k profit in just a year or two.

Arnold then bought a 36 unit building, followed by a 100 unit building. Within about 10 years, Arnold Schwarzenegger was a real estate tycoon and millionaire.

This was close to 7-8 years before he would become a bankable Hollywood action star. He was able to be pickier and choose plum movie roles because he did not have to take any role that came his way. He always believed in going to the top. Go where its empty and you can chart your own path. He aimed to be the leading man.

CONAN

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

After small roles in various film and television, he was offered the lead in his breakthrough film role of Conan the Barbarian in 1982. The movie was a hit.

Love the painted look.

Then he starred in the sequel, Conan the Destroyer, in 1984.

For me life is continuously being hungry. The meaning of life is not simply to exist, to survive, but to move ahead, to go up, to achieve, to conquer. – Arnold Schwarzenegger 

Arnold got to meet and work with lots of people. He feels that building relationships is key to having a successful, happy, and fulfilled life. Some of those people include, Linda Hamilton, Sharon Stone, Michael Ironside, Vanessa Williams, and the late Andy Warhol.

THE TERMINATOR

I’ll be back. – Arnold’s famous line as The Terminator

Arnold was offered a role in a film where there is a futuristic war between man and machines. At the meeting, with Gale Anne Hurd (The Walking Dead) and James Cameron (Avatar), he was convinced that the role of the T1 was pivotal, if the film was to be a success.

He was right. Listen to Ah-nuld! I just watched the film a few weeks ago. It still holds up.

Here’s one of my favorite scenes from the film; it’s Kyle Reese, played by actor Michael Biehn. He did an incredible job as he also did in the film Aliens.

Arnold Money Lesson: When Arnold met his future wife, Maria Shriver, he accidentally left his wallet at home. She had to write him a check for $70, to pay his train ticket home. He paid her back and wrote her a thank you note. In addition, he learned a valuable lesson. Always have cash. From that moment on, he would carry $1000 cash and a high or no limit credit card. He learned the motto of this blog, that cash is king.

He then decided to do a film by new first time director, Jim Cameron, called The Terminator.  It went on to gross $80 million and Arnold was officially a bonafide movie star.

Fun Fact: Arnold likes to tell jokes. He decided early on that his films should include quips that are memorable one-liners and catchphrases.  Like this, “Hasta la vista, baby” — Terminator 2: Judgment Day.

I actually heard that same phrase in a Jody Whatley song Looking For A New Love from her self-titled 1987 album. That was 4 years before T2.

HOLLYWOOD MAKING IT RAIN DOWN ON ARNOLD

“Money doesn’t make you happy. I now have $50 million, but I was just as happy when I had $48 million.” – Arnold Schwarzenegger

From there it just keeps getting better. He’s a hit factory and the paychecks got bigger and bigger. Arnold made $250,000 for Conan and $360,000 for Conan 2. Then took a pay cut for The Terminator, at $75,000.  Arnold earned $1.5 million for 1985’s Commando, $3 million for 1987’s Predator and $8 million for 1988’s Red Heat. Bang, bang, bang! That’s all money in the bank.

He hit the deca-million ($10 million USD) paycheck mark with Total Recall in 1990. Then made $15 million for Terminator 2 and True Lies. Arnold eventually hit a $20 million-dollar payday in 1996 with Eraser. Yes, that’s US Dollars!

Source: themovietimes.com

He is estimated to have a net worth around $400 million dollars.

And there you have it.

At the end of the book, he also listed Arnold’s Rules for Success.

Here is Arnold talking Life’s 6 Rules during the Governor’s 2009 USC Commencement Address. He said be unique, be a maverick. Maybe even an outlier?

How being an outlier can make you rich

So let’s recap…

  • Start with a dream
  • Write it down
  • Say out loud what you want to do or be
  • Work hard
  • Break the rules, not the law
  • Don’t be afraid to fail
  • Exercise
  • Weight lifting builds muscles and confidence
  • Trust yourself
  • Ignore the naysayers
  • Save and invest
  • Real estate can make you a fortune
  • Financial independence equals freedom
  • Give something back
  • Turn every dollar into two
Banking, Bankruptcy, Budgeting, Credit Cards, Saving, Wealth

3 Money Lessons from Til Debt Do Us Part

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“Money isn’t rocket science.” – Gail Vaz-Oxlade

Til Debt Do Us Part is a Canadian television series that follows couples that are going through financial crisis and financial expert, Gail Vaz-Oxlade, comes in to help the couple find solutions.

The series ran for over 100 episodes from 2005-2011. It also had a spin-off called Princess.   She teaches couples to go from red to black and gain control over their money.

The show would air right after the Suze Orman show during its run on CNBC. Read my post Dom Perignon Taste on a Budweiser Budget to see how it all went down on Suze’s show.

#1 REASON COUPLES BREAK UP

Money is the number #1 reason couples break up. She visits couples weekly and gives them challenges to help with their finances. Then at the end of each episode, after about 4 weeks, she awards the couple with up to $5,000 dollars to help them get out of debt.

CUT THE CHEQUE

By far the best part of the show, in my opinion, is when at the end of one month, Gail Vaz-Oxlade gives the couple a cheque for an amount up to $5,000, depending on their attitudes and how well they did during the challenges. Keep in mind, couples could get less and some have. One of the lowest amounts I have seen her give was $3,000, which is a 40% reduction of the prize money.

The show was so popular that a 52-Week Life Planner was released based on the television series and offers day-by-day, step-by-step strategies and tips for successfully managing household finances.

This reminds me of a Tom Holland interview he did for Spiderman talking about how Anthony Mackie always says, “cut the check.”

https://twitter.com/UNILADFilm/status/886949865330155521

Let’s get back to Gail.

If you have never heard of the show Til Debt or can’t remember it, no worries, I will take you back down memory lane tonight.

WHO IS GAIL VAZ-OXLADE?

“We feel good when our homes are bright and shiny, put a little elbow grease into your money and it’ll glisten too.” – Gail Vaz-Oxlade

Gail Vaz-Oxlade is a financial writer and was a columnist for numerous publications as a freelancer including Yahoo! Canada Finance.  She has helped people from high finance to low-income solve their money problems. Eventually, she became a television personality due to all of her work in finance and that is how the show Til Debt came into existence with her as the host.

She has written numerous books on the topic of finance. I have actually read one of her books called Debt-Free Forever.

Gail has a no-nonsense attitude when it comes to money. And that is what makes her so good at what she does.

FOR THE LOVE OF JARS

“You can have everything you want. All you need is a plan. And how do we spell plan? B-U-D-G-E-T!” – Gail Vaz-Oxlade

Watching the show was very interesting. One recurring theme was the jars. Gail advocated for couples to live on cash.

Every single episode, you got cash jars. You would put in a certain dollar amount. When you spend, you write it down in the budget binder cause cash slips through our fingers easier than that snail did with Julia Roberts in Pretty Woman.

Some couples were taking out cash at the ATM from their bank accounts or doing cash advances, which Gail said she could not track so we don’t know where the money went. When it’s gone, it’s gone. Without writing it down or keeping receipts, there is no other way to track cash. So, jars it is.

MONEY LESSONS FOR GAIL

Gai loves cash and hates banks. She thinks they are bleeding people dry slowly with their interest and fees. Gail says banks are wolves in sheep’s clothing. The only way this will change is to teach financial literacy in school. I say start in elementary when they are old enough to start asking for a $1 lollipop, it’s time to start the finance lessons.

Check out my posts on banking.

Banking at Credit Unions versus Banks – The Great Debate

New Banking Rules: Clear a check payment in a day

Q&A with Lisa Servon:, Author of the Unbanking of America

This is the secret recipe to building wealth: You need to make more money and you need to spend less money.

Here are 3 lessons that Gail taught me: (1) both partners need to manage the money, (2) no retail therapy, and (3) debt repayment takes time.

LESSON ONE: GAIL ON COUPLES MANAGING MONEY

  1. Do not have only one partner manage the finances.

“It’s not unusual for one person to assume the nitty-gritty of daily finances…. The problem is that when one person is excluded, or totally abdicates responsibility, it means the other can mess things up with no monitoring or grow resentful at always having to do the detail…. Taking turns managing the chequebook, and having regular conversations so that both of you are clear about what’s going on, means you’re both in the know and working to the same ends. It also means that one person doesn’t have to deal with all the crap, while the other merrily laughs off the stress and frustration with, ‘You’re managing the money, so this is your problem to deal with.’ (Yes, there are dopes who say this.)”

Always know what is happening with your money. I don’t care who signs the check and put it in the envelope. Just make sure you lick the stamp. Be involved. Ask questions. Don’t be in the dark.

It’s kind of like that scene in Charmed in the episode Be Careful What You Witch For. Remember that scene in the beginning, after the opening credits. I want you to be skeptical like Phoebe. Always know who you owe and how much. Nothing is for free.

The conversation went like this:

Phoebe: I don’t get it you’ve been stuck in that bottle for two hundred years then someone finally sends you to us and you’ve no idea who licked the stamp? I find that very hard to believe.

Genie:What? I don’t get it you win the lotto and you’re asking for explanations?

Piper:Actually we’d like to know who to send the thank you note to.

Same conversation you should have with your partner, but about which creditor.  And winning the lotto, yeah right? Read my posts Forget casinos, bet on yourself and Mega Millions win or bust.

LESSON TWO: GAIL ON RETAIL THERAPY

  1. Forget retail therapy

“Plastic is anesthetic — it dulls the pain, and then what happens is you just keep waiting for the next fake high.”

And don’t I know it. I had a huge shopping problem for years. It was done as a way to dull the pain of the things going on around me – low-income, working full-time, going to college – I was a mess!

I had some pretty terrible managers when I was younger too. All the stress was getting to me. I had to find a way to cope, but shopping was not it. As I got more mature, I found ways to de-stress that were cheaper or free.

I have said it before that credit is seductive and addictive. It should not be used to replace your emergency fund (liquid cash). However, if you do, be strategic and use credit wisely and sparingly.

How to get access to a $250,000 Emergency fund with $0 of your own cash

How Benjamin Franklin used 13 virtues to get rich 

LESSON THREE: GAIL ON DEBT REPAYMENT

“A goal without a deadline is just a dream.” – Gail Vaz-Oxlade

  1. Slow and steady is the way to repay debt.

“One step at a time. You are on your way. Expect challenges. Keep your goal where you can see it.”

You better believe it. If it took you 8 years to accumulate the debt, thinking you can pay it off in 3 months is delusional. See my post Getting out of debt one step at a time.

The good news is that once you recognize you have a problem with debt, then you can work on solutions. I have noticed that generally 2-3 years of cutting back and attacking debt is usually enough time to pay off most if not all of your consumer debt except the mortgage and student loans. After 5-7 years, the only debt left is usually the mortgage. That is a small price to pay for freedom.

TIL DEBT O US PART

I did a search online and found this synopsis of the show’s premise at IMDB.com. It’s spot on.

Storyline

Money can’t buy you love. But keeping love alive without money can be pretty tough. In fact, ninety percent of marriage breakups are due to money problems. And to get advice on how to manage money usually costs money! Til Debt Do Us Part, is a series that offers tough-love solutions to those willing to face their financial troubles head on. In each episode we meet a couple in crisis. Some are on the verge of bankruptcy, hounded by creditors or facing eviction. Others are just getting by, but in the midst of a personal meltdown or relationship breakdown because of money issues. With the sensitivity of a therapist and the toughness of a CFO, our host, renowned financial author and columnist, Gail Vaz-Oxlade reveals what she’s found in a couple’s finances – and then she’ll dig a little deeper. She asks some tough questions and then they’ll be forced to face reality. Where will it end if they continue on this rocky road? To get things back on track, Gail takes control of their finances …

This show was very eye-opening in how people managed their finances. Many did not have a clue what was coming in and going out. Gail would come in with her screen shots of the couples bank accounts and spending and give it to them straight.

Many times the wives would burst out in tears after seeing how much debt the family was actually in. Lots of couples were in over their heads. Some so deep in debt they had to consider selling their house, or worse, bankruptcy!

Some couples did not want to make any changes. Even though they were debt up to their eyeballs. These people needed to get their priorities straight. Much like Hermione, in Harry Potter.

Here is the show’s Intro and theme song along with a promo. This is just a taste, a light sampling, of what you are in store for with this show.

There are 2 episodes that stand out for me. They were called The Worst Family Ever and Love Affair with Luxury.

MONEY WORRIES CAN CAUSE SLEEPLESS NIGHTS

In the S03E13 entitled, “The worst family ever?” One couple were living in the wife’s family basement for about a couple of years. They spent with reckless abandon. Oh, the couple popped bottles night and day. Especially, after moving out and buying their own home for about $225,000. That’s not bad. What is bad is that they saved zero dollars while sponging off her parents.

That’s right. While mooching off the rents’ they saved $0. Not one dime. Even Scrooge McDuck saved his number one dime. See my post Money Lessons I Learned from Scrooge McDuck. Also, check out Why the Rents’ shouldn’t pay your rent.

Then, to make matters worse, they threw non-stop parties at their house for friends and family. This was obviously all to make themselves look good to friends and family. In Yoda speak, so concerned with appearances they are.

“Happy people don’t worry about what other people think about them.” – Gail Vaz-Oxlade

OUT OF CONTROL SHOPPING FOR BABY BUT THE KIDS ARE ALRIGHT

In addition, they expanded their family and had a son, but financially were unprepared for this. At one point, the wife was spending $1200 a month outfitting junior! I couldn’t believe it. What is she buying Versace onesies? Get real. A baby doesn’t care. They just want to be warm, feed, and dry.

This couple were overspending by the tune of $4,100 a month! Holy spending gone bonkers, Batman!

Fun Fact: For those of you unfamiliar with that Batman line, here is where it comes from. The Batman television series from the 1960’s. Batman was American live action television series, based on the DC comic book. It starred Adam West as the titular character and hero Batman and Burt Ward as his sidekick Robin.

It was also turned into a cartoon series. Here is Robin at his finest with his sayings. Hilarious!

I decided to post it so you won’t ever have to get the tongue lashing that Penny got from Sheldon on an episode of The Big Bang Theory about Batman at 2:48 into the video.

The Precious Fragmentation – Season 3, Episode 17
Aired March 8, 2010. One of my favorite episodes.

https://www.dailymotion.com/video/x6ng6kb

It was about The Lord of the Rings. Even Raj used a Holy Robin saying in there!

In this next video, Sheldon gives a fun fact to Raj. Now, you know where I get it from.

Now, back to the story.

The way the couple on the show  were able to overspend like that, drumroll please…the credit cards!

When Gail comes along they are so bad she tells them they have to sell the house. They flat out said they could not sell the house. Even though they are on the path to $1.3 million in debt and possible bankruptcy! Gail, at one point in the show, tells them they are the worst couple she has had on the show and that she had a few sleepless nights worrying about how to help them out of this situation. Coming from Gail, that’s scary.

The way it went down, it reminded me of that scene in The Chipmunk Adventure, when Jeanette and Eleanor was telling the Arabian prince that Brittany spends money like a drunken sailor and Brittany got mad. Hilarious. I just so happened to find the footage of that particular scene and the movie on YouTube. Hope you have fun watching! No need to thank me.  Like Dean Winchester says, “You’re Welcome.”

SHOULD YOU FINANCE A $100,000 CAR?

“Change brings challenges, learning, and a sense of New. Change is full of promise.”- Gail Vaz-Oxlade

In the S04E03 entitled, “Love Affair with Luxury,” which aired March 6, 2008, is the gold standard of delusions of grandeur when it comes to money management. The wife, Simone, is a champion shopper and a spendthrift who manages to make 53 shopping trips in a single month! That’s nuts. Even though she’s on maternity leave, a luxury car is next on her shopping list.

The only reason the couple is able to afford such luxuries is because they have each other’s incomes. The minute one person’s income is gone or reduced, i.e. disability or divorce, the whole house of cards comes tumbling down faster than the stock market has in the last 30 days.

Check out this post by BudgetsareSexy to see just how far down the stock market has gone in his The Red Wedding of Net Worth Reports.

LOVE AFFAIR WITH LUXURY SUMMARIZED

I found the plot summary for the episode Love Affair with Luxury online at IMDB.com.

Frank and Simone’s combined $110,000 annual income is currently curbed by Simone being on maternity leave. Simone is addicted to what she believes she needs to keep up appearances in every respect, which includes working out at the gym, and spending money on “stuff” for herself, such as clothes, getting beauty treatments of various kinds, and having a beautifully appointed house. A $125,000 new car is next on the list. Simone, however, states that she would never do anything that would place her family at risk. But Frank doesn’t realize he is just as guilty, spending money on his electronics, which includes six large television sets in their house of four people, including one infant. This spending has resulted in $55,000 in consumer debt so far. They constantly fight about money, something having to give if their marriage can overcome this issue. As such, Gail issues them challenges largely focusing on dealing with their root problem, namely their addiction to luxury, this focus which not only entails them doing the challenges, but understanding why she has issued these challenges.

At one point in the show she says, “we can finance $100,000 can’t we.” For a car no less! If you have ever read this blog, you know I can’t stand cars for the simple reason that they can keep you in debt forever. You could spend a couple hundred grand on cars in a lifetime. You know how much interest you could earn on $200,000! Here are just a few on my posts on my beef with car loans below.

If you want to be wealthy, drive a Ford 

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

Life is good without a car payment 

A car and nothing more

Outrageous Loan Terms for Porsche that even the Rich can’t justify 

FINAL THOUGHTS

Money is a tool we use in the present to create the reality we want in the future. Learning about finance is a good start. Practicing good money habits and teaching your kids to understand the concepts of money – budgeting, saving, and spending – you help create their reality.

So, I want to always stay in control of your…I will now end this post in the last words of the Til Debt Do Us Part theme song, money, money, money, money, money, money, moneyyyy!

Careers, Relationships

6 Money and Life Lessons I Learned from the film Mannequin

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“You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose.” ― Dr. Seuss, Oh, The Places You’ll Go!

Mannequin was a film released in 1987 starring Andrew McCarthy and Kim Cattrall. The story was about finding love and doing your passion. It was a feel good romantic-comedy (rom-com), that is memorable for its theme song Nothing’s Gonna Stop Us Now.

Mannequin Trailer

PASSION TRUMPS ALL

  1. Find your passion and get paid for it

The main character in the movie, aptly named Jonathan Switcher, as he was constantly switching jobs in the film. Kind of reminds me of John Ritter as Jack Tripper in Three’s Company, as his character was always tripping or falling. Ritter’s character also did lots of pratfalls (falling down) like Chevy Chase would do on Saturday Night Live for laughs as a sight gag dating back to the days of vaudeville.

Anywho, in the film Jonathan was really an artist at heart, but he just couldn’t find the right gig. Finally, as luck would have it, being nice and kind, is what got him his start.

He was walking when a little old lady (Estelle Getty, Sophia from Golden Girls) came into the path of a huge store sign that was falling. He pushed her out of the way and saved her life! She just so happened to be the owner of a major women’s department store and offered him a job on the spot.

This changes the course of his life.

Once she learns what he can do, she gives him a job as a window dresser. This is where his artistry skills come into play.  He finally found a way to make a living doing something he loved and was good at.  And people were willing to offer him good money. A competitor wanted to offer him big bucks for his skill by doubling his salary. He said he didn’t do it just for the money.

Turn your passion into your career. 

He kept his job where he was. This is where the movie truly begins.

Your Fired! Pick up your paycheck and get out of here.

COMPASSION

  1. Compassion for others

Before getting his job as a window dresser, Jonathan had lost his job, his girlfriend (Roxy, played by Carole Davis), had no money, and was just sad and alone. All that changes when he starts dressing a Mannequin who comes to life!

Her name is Emmy. She says she saw him last night in the rain.  He looked so sad and lonely. So, she came back to life just for him.

Emmy Comes Alive

DANCE

  1. Dance

It’s good exercise and fun. Singing also can help cure loneliness, sickness, and unhappiness.

So, like I once heard Toni Braxton say to her sistsers on Braxton Family Values, “Don’t be the fun police. Don’t be the fun po-po.” When you go out, have some fun. Don’t be a wallflower. Go out there on the dance floor and dance.

Good health is vital on the road to wealth. You don’t have to lift a ton of weights, but you do need to get moving.

So, sing and dance, will ya.

The absolute most fun and funniest scene in the movie was the dance scene. That is what dancing does, it brings you to life and in this film that means literally.

Dancing scene 

NO STEALING

  1. Don’t steal

The men in the film are competitors to Switcher’s company. Once they find out about Emmy and her helping him make a name for himself as an in-demand window dresser, all hell breaks loose. They steal Emmy and then get arrested for it.

Do not steal. That’s all I have to say.

BE NICE

  1. Be nice

Jonathan was a nice guy, but he was nobody’s fool. His kindness to others was always reciprocated back to him. He was nice. Then he got a job offer. He was nice. Easily, he made a friend. He was nice. And found his true love.

Good things can happen when you are nice. Being nice attracts things to you. In this film, it was a job.

It’s like Mark Cuban says, “It’s always easier to be nice than to be a jerk. Don’t be a jerk.” So be nice.

REAL LOVE IS WORTH THE WAITING FOR

  1. Real love is something worth waiting and fighting for

My favorite and best scene of the film was the ending where they get married while the song Nothing’s Gonna Stop Us Now by Starship is playing. This is the most memorable part of the movie. It was a good way to end the film. It was a great scene and it made you feel good. Jonathan had finally found true love with Emmy.

When she came on the scene she informed him that she wanted to escape a loveless marriage from 4000 years ago B.C. She waited to come back to life to find the right man. And she commented to him in the film that she was so glad she picked him. And they only had eyes for each other.

Window Wedding Scene

This life is unpredictable. There are only a few things that are worth fighting for. Love is definitely top of that list.

I remember this movie fondly. It still has a special place in my heart.

This movie is what inspired me to help little old ladies. I had to help a complete stranger get out of a chair at a hotel one time. It just so happened that she was alone and I saw her struggling to get up. I walked over and asked if he needed help getting up. She looked up at me in surprise and said yes.

It sure felt good to help someone in need.

I do it every chance I get. Helping people across the street. Answering questions. I try to tip pretty well.

You know, I just try to treat people the way I would like to be treated.

I am nobody’s doormat, but I try to help the little guys out.

So recap…

  1. Find your passion and get paid for it
  2. Have compassion for others
  3. Dance
  4. Don’t steal. Earn your keep. Work for what you want.
  5. Be Nice
  6. Anything worth having is worth the wait
Budgeting, Celebrities and Money, Credit Cards, Retirement, Saving, Self-Made Millionaires, Wealth

Money Lessons I learned from Jay Leno

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Photo: Forbes.com

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

Jay Leno gives advice on how to do just that.

MONEY LESSONS FROM JAY

Jay on starting out

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

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

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

Jay on working more than one job

“I always had two incomes.”

“I’d bank one, and I’d spend one.”

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

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

He has worked two jobs simultaneously since he was 16.

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

Jay on saving money

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

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

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

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

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

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

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

Jay on living on one salary

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

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

“It would go directly into a bank.”

Simply put, bank it and forget it.

Jay on patience

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

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

Jay on retiring

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

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

Jay on Buy-And-Hold

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

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

Jay on avoiding credit cards

“I barely use credit cards.”

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

Jay on house buying

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

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

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

Jay on debt

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

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

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

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

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

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

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

Don’t buy on credit, build a fortune.

Jay on Retooling

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

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

Jay on owning

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

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

Jay on old-fashioned values

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

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

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

Jay on Taxes

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

Always pay your taxes. Period!

Jay on being frugal

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

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

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

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

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

Jay on Shifting Gears

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

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

Jay on shopping

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

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

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

Jay on Fixing Things

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

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

Jay on setting high standards

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

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

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

Jay on idle hands

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

“I sleep four hours, maybe five.”

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

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

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

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

Jay on failure

“You learn a tremendous amount from the mistakes.”

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

Jay on money to blow

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

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

It’s your money. Don’t blow it.

Jay on Life

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

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

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

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

How being an outlier can make you rich

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“Ten thousand hours is the magic number of greatness.” – Malcolm Gladwell

“I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.” – Bruce Lee

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

If you’re a fan of Enter the Dragon, like me, then you know that talent and practiced skill are the difference between winning and defeat.

Bruce Lee also said Knowledge will give you power, but character respect. 

That reminds me of this saying from The Rock.

I also notice that mavericks tend to get rich.

Those willing to do more than the bare minimum. We are talking captains or titans of industry and business mavericks, that buck the trend, throw caution to the wind, and are all in.

Steve Jobs, Bill Gates, LeBron James, Phil Knight, and Walt Disney, to name a few, embody the characteristics of what it takes to dominate in one’s field.  They are outliers. If you dare to dream and be an outlier yourself, then you are in great company.

WHAT IS AN OUTLIER?

A person or thing that is atypical within a particular group, class, or category. – Merriam Webster Dictionary

Simply put, you are different than the rest. You stand out. An outlier is the proverbial diamond in the rough or needle in the haystack. The 1 out of a million.

We all know how it worked out for Aladdin in the end.

When everyone else goes right, you go left and turn down the street.

You have tunnel vision. All energy is focused on a single task until it is completed or you are an expert. The rejection of noise and naysayers are a must.

A great definition of focus is this: To follow, without halt, one aim: There’s the secret of success. – Anna Pavlova (Prima Ballerina)

WHO ARE OUTLIERS?

The more you like yourself, the less you are like anyone else, which makes you unique. – Walt Disney

We will take the examples above and expand on those individuals that have either been born great, achieved greatness, or had greatness thrust upon them. (To revise Humphrey Bogart’s famous words: Here’s looking at you, William. Shakespeare that is.)

So, who are these mavericks you say? Just keep reading.

Steve Jobs

Photo: Forbes.com

Steve Jobs was the CEO and co-founder of the most valuable brand in the world: Apple. The first ever trillion-dollar company in the entire world.  He pioneered revolutionary technologies. Thanks to his genius and willingness to dare to be different, we now have a computer in our pockets.

He decided to buck the trend and paid no dividends for Apple shareholders (this changed in 2012), as he thought that money could be better spent to expand the company.

Forbes, in 2011, estimated Jobs’ net worth to be around $6 billion to $ 7 billion dollars prior to his passing.

Bill Gates

Photo: Forbes.com

Bill Gates is a business magnate who is the founder of Microsoft. He took the road less traveled by famously dropping out of one of the most elite and prestigious universities in the world: Harvard.

Mr. Gates devoted every minute of his time to computer technology. He would read trade magazines and stay informed on the latest in tech. Becoming an expert in the field and later launching Windows in 1985. It became the top operating system for PC’s.

Forbes lists Gates’ net worth at $96B.

LeBron James

Photo: Forbes.com

LeBron James started playing basketball at a very young age. He loved the game so much that he played and practiced non-stop. By the time LeBron was 14, he had ESPN covering his high school basketball games because he was just that good.

He was drafted in 2003, to play professional basketball with the NBA. It is estimated that he spends $1.5 million dollars a year just on his health care and personal training to keep his body in the best athletic shape possible. He would go on to win the first ever championship for Cleveland. Ever. He recently built a school and is offering college scholarships to those students.

Forbes estimates James’ net worth at $440 million. That’s a lot of M’s just for going hard in the paint. It pays well to be the best.

Phil Knight

Photo: Forbes.com

Phil Knight is a business magnate and the co-founder of Nike. He ran track for the University of Oregon under the infamous track coach Bill Bowerman, with whom he co-founded Nike.  Bowerman is famous for coaching 31 Olympic athletes including the legendary Steve Prefontaine.

After attending Stanford Graduate School of Business, Knight decided to become an entrepreneur. His business plan paper became the catalyst for his company. He traveled to Japan to see about good running shoes, which would go on to become Nike.

Forbes estimates Knight’s net worth at $31B.

Walt Disney

Photo: Forbes.com

Walt Disney was a pioneer in the American animation industry. He always loved to draw. He had a paper route with a grueling and exhausting schedule as a kid, which contributed to his poor grades at school.

None the less, he continued to draw. He had $40 dollars in his pocket when he moved to CA to start his career. After, getting fired from a job in animation at one company, he decided to start his own.

People laughed at him for wanting to draw a talking mouse. An old legend states he was rejected 302 times to get financing to start Disney World. He ended getting the last laugh as Disney is the biggest and most diversified mass media and entertainment conglomerate in the world.

At the time of his death in 1966, he was estimated to have a net worth equal to $1 billion in today’s dollars (adjusting for inflation).

HOW CAN BEING AN OUTLIER MAKE YOU RICH?

Go confidently in the direction of your dreams. Live the life you have imagined. – Henry David Thoreau

People are willing to pay for unique. Something that is one of a kind. The rarer the better.

Do something so good that people can’t wait to see you.

“Make sure it’s mean so them fiends keep on coming back” –  Who Dat (Song by J. Cole)

Keep them wanting for more.

They say the riches are in niches.

Mae West wrote on taboo subjects in the 1920’s. She made a mint in real estate and oil. This is what she thought of all that hoopla she made way back when.

I believe in censorship. I made a fortune out of it. – Mae West

Figure out what you are good at and make it happen.

When you start out you have to take what you can get, but when you blow up, you can name your price.

Remember that song Back Then by Mike Jones. Yeah, it can be something like that.

GO AHEAD AND TAKE THE ROAD LESS TRAVELED

Two roads diverged in a wood, and I — I took the one less traveled by, and that has made all the difference. – Robert Frost

Many people have made a fortune off being different.

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

Let’s see some numbers for clarity and perspective.

Only the best can become NFL players. Here is what the best can make.

Rookie Salaries in the NFL

Source: FootballNextLevel.com

Highest Paid Players in NFL

Source: Spotrac.com

These are just salaries for one profession. There are many others.

CEOs are making bank. In addition, so can authors, producers, actors, musicians, professors, doctors, and more can as you can garner success in many other fields.

How hard are you willing to work to make success happen?

Dwayne “The Rock” Johnson says success takes no less than everything you’ve got. You don’t need directions on the road to success, just point to the top and go! Here are a few more of his words of wisdom for motivation.

Financial Freedom, Financial Independence, Investing, Wealth

Mega Millions win or bust

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Here’s something to think about: How come you never see a headline like ‘Psychic Wins Lottery’? – Jay Leno

Are you feeling lucky? Well, do ya?

If so, well then playing the lotto might just be for you.

But like Katniss, the odds may not be ever in your favor.

It has about two weeks since the largest jackpot in Mega Millions history was won by a single ticket to the tune of $1.537 billion dollars!

All over the country it was Powerball and Mega Millions fever.

Everywhere I went people were talking about the lotto. Some people even tweeted about what they would do if they won.

I get it. You win the jackpot and your financial freedom. You’re on cloud nine.

However, you have to plan your escape from the rate race whether or not you win the lottery.

If you want to get rich, either by picking winning numbers or otherwise, you better learn quick how to manage a fortune.

Here’s why.

CHANCES OF WINNING

Are pretty slim.

According to Fortune magazine, the odds of winning the lottery are about one in 300 million. Considering that there are over 326 million Americans, that makes your odds quite small.

If you want to close this gap, you will have to increase your scope of numbers to play and play more often.

It’s not enough to do the kids birthdays or your anniversary. Going to have to get creative. You need the locker combination to your high school locker, your kids Xbox password, your great-aunt’s wedding date, and your first love’s old address. You know, something like that.

But all jokes aside, you will have to increase your range of numbers to increase your odds of winning.

In addition, you will have to play more often.

It has been well-documented that people who win the lottery once are likely to win it again.

The problem with this is that you also increase the amount of money you lose while playing the game.

LOTTERY WINNERS GO BROKE

Get rich or die tryin’. – 50 cent  

Did you know a high percentage of lottery winners end up broke? According to the National Endowment for Financial Education, 70 percent of lottery winners go broke.

I have a theory.

If you are unable to manage balancing your check book with $1k, then it is nearly impossible to do it with $1B.

I feel like it is.

But, if you saw  Justin Timberlake in The Social Network, you know he says, “you know what is cool? A billion dollars.”

They say the first million is the hardest. Well, try wrapping your head around a billion!

Even billionaire T. Boone Pickens thinks that it is too!

That’s a whole lot more zeroes you are working with. If you don’t know what PEMDAS stands for (Please Excuse My Dear Aunt Sally), you are in trouble.

You must first learn the rules of money, if you are to win the game. See my posts for more on how to build up your wealth knowledge bank.

Forget casinos, bet on yourself

The six ways to get rich

Money Lessons I learned from Scrooge McDuck

How Millennial Money inspire me to start saving $13,333.06 a year

STAY GROUNDED

“Using money you haven’t earned to buy things you don’t need to impress people you don’t like” – Robert Quillen

I have seen too many lottery winners go bankrupt. You win all that money just to go back to being broke! No, thanks.

Forget your friends and family telling you to spend. Do not inflate your lifestyle and then upgrade it even more after moving to that gated community in Beverly Hills. You do not need to outspend your neighbors.

3 Rich Habits of Millionaires

You can still drive a Honda. The kids can still get jobs. If you think that it is taking away an opportunity for someone else to work for a needed paycheck, then let junior volunteer.

That was the advice Fran gave Mr. Sheffield in The Nanny.   He wanted to teach his daughter about responsibility and the value of money. So, in S02E21 Maggie became a candy striper at a hospital.  Great advice.

Fun Fact: In the S02E08 of Gilmore Girls,  Rory gets in trouble at school. It just so happens that one of her schoolmates in that episode was none other than Mr. Sheffield’s youngest, Grace, played by actress Madeline Zima. You can see her in the blue sweater walking behind Rory in this clip.

My advice to anyone who comes into large sums of money whether by inheritance, large windfall, bonus, or lottery is to stay humble.

Read my posts for lessons on eating humble pie:

How Dave Grohl turned passion into profits

Money Lessons I learned from Aesop’s The Ants and the Grasshopper

Money and Life Lessons I learned from Mr. T

Life Lessons I learned from The Warriors

The Greatest Assets are people

HOW TO MANAGE ALL THAT MONEY

You have to ask yourself after winning the lottery: How are you planning to manage all that cash?

You need a team to help you manage all that money. A circle of trust, like in Meet the Fockers.

I have a few suggestions.

  • Set up a trust to stay anonymous
  • Get a financial advisor
  • Hire an intermediary to answer requests for money on your behalf
  • Set a daily, monthly, annual spending limit
  • Hire an attorney
  • Take the lump sum
  • Create your own annuity with a spending budget
  • Hire a CPA
  • Learn how to manage money
  • Understand your tax liability

BUY STOCKS INSTEAD OF LOTTERY TICKETS

I would much prefer people spend their money wisely than to bet it on chance.

You could invest your money instead of throwing it down on the roulette table. If you are want to be a part owner of Caesar’s Palace, instead of merely placing bets at one, you can buy REIT’s or mutual funds.

Even better, you can buy index funds that includes hundreds of stocks that track a benchmark such as the S&P 500.

Every dollar you invest can possibly be turned into two or three dollars.

Source: familyfinancefavs.com

Not sure what all this is? No problem. Go down to your local library and ask for books on personal finance. You can also look up any words you are unfamiliar with online.

In addition, you can read blogs, listen to podcasts, join investing clubs, get a job in banking, take a few online finance courses, or ask friends and family for book recommendations.

Many books offer book recommendations in the appendix.

All you have to do is be willing to do some homework.

Trust me, it’s worth it.

When your one-day sitting on a beach in Hawaii, sipping cocktails and able to get up at noon just because.

Your future self will thank you.