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.
Basically, he is looking to have more assets than a fat paycheck. He knows money can slip through your fingers. Assets do not easily slip away.
The bigger the paycheck means the higher the taxes you pay Uncle Sam. In contrast, assets usually go up in value and earn interest over time. Capital gains tax is lower than income taxes.
So, if you want to bet the farm, then put it all on staying in the black and not the red.
CASINOS ARE NOT WHERE THE WEALTHY ARE
I know you see all the television shows and advertisements telling you to go to Vegas. However, that is just a way to get you there to spend money. Most wealthy folks are not rolling the dice with their finances.
I have read enough blogs and books to know that you must hang around like-minded people.
Motivational speaker Jim Rohn said, “You’re the average of the five people spend the most time with.” And so is your net worth.
We are influenced by those we associate with. These relationships over time can have a profound effect on our lives.
Therefore, you must choose wisely when it comes to friends, business partners, and spouses.
The wealthy are about building assets. Therefore, you are not likely to see them at the casino at four o’clock on a Monday afternoon. They are out volunteering, networking, and closing business deals.
HOW DO CASINOS MAKE MONEY
A Canadian study stated that 75% of customers provide only 4% of casino revenues. It’s the habitual gambler that keeps the casino in business.
If you ever saw Mark Wahlberg in The Gambler, then you know who I’m talking about.
Computer gaming and slot machines are all the rage when it comes to gambling.
Most players lose more than they win. I don’t like those odds. Therefore, I do not gamble.
That means people with gambling addictions are the most vulnerable. Or you can become addicted after getting a taste of winning like in the film 21.
Slot machines are, like credit, addictive. Casinos actually can make you poorer. This exacerbates inequality.
CASINOS WILL HELP THE ECONOMY RIGHT?
Not so fast. Let’s take a look at Atlantic City.
Back in 1977, casino advocates made promises that casinos would help give the economy a boost by providing jobs. Don’t get me wrong, they did provide jobs. However, the surrounding local business owners did not get the foot traffic coming into the casinos.
The money that casinos make, stays with them.
Many local businesses had to close up shop. The retail economy collapsed all around Atlantic Avenue in New Jersey. Several casinos have actually shut down since 2014. That means jobs were lost not gained.
HOW TO BET ON YOURSELF
Devote all your time, money, and resources into yourself.
Use your hard earned money to invest in your education, training, and business.
When I was watching David Tutera plan those weddings on television, I learned he wasn’t doing this for, in the illustrious words of Sia, cheap thrills. He did it for a living. And earned good enough money to have a nice home, wardrobe, and chauffeur.
David started party planning and entertaining over 20 years ago. He just invested his time and money into himself. Eventually, he found what he was good at and then he just stuck with it.
There are countless tales of people out there that have found a skill they are good at, practiced and developed it, then went out and started earning a living at it.
Read up on some biographies. See for yourself. I recommend reading anyone you have an interest in or trailblazers such as Gloria Steinem, Arnold Schwarzenegger, Franklin Roosevelt, Charlie Chaplin, Oprah Winfrey, Winston Churchill, or Nelson Mandela.
WHAT CAN YOU DO NOW?
First, I feel people need to assess their situation. For example, when I was growing up I noticed that a lot of kids were not very into studying and really focused on their academics. However, many wealthy people I saw on television always advocated for education.
I figured, why not listen to other successful people?
I started studying and reading more. Especially, thanks to shows like Reading Rainbow hosted by Star Trek’s Next Generation alum LaVar Burton. I would go to the Book Mobile and get tons of books.
Much of my focus was less on having fun and more on learning. Saturday mornings were spent reading on my parent’s couch. Sunday afternoons were spent reading the comics and learning new things and vocabulary words.
I invested lots of time and money into my education and health.
And all of this paid off in spades.
I have four retirement accounts, a home, a car (no monthly payment), and save and invest upwards of 50% of my income.
It took me over a decade to build those things. But it all started with getting an education.
Sure, college helped, but it was sheer grit, discipline and determination that got me where I am today.
Stay away from vices (narcotics, alcohol, gambling, shopping)
Hang around like-minded people
Save 20% or more of your income
Invest 15% or more of your income
If you can do at least two of the items listed here, you have got a shot at making it into the top 10% of households and becoming financially independent.
Before Mr. McPherson died, he wrote an article called Falling, that was published in 2014, regarding his descent into poverty. It was published in The Hedgehog Review.
He went from book critic, novelist, and an editor at The Washington Post to destitute. That is a far fall from grace indeed. Here is his story.
HOW TO GO FROM PULITZER PRIZE WINNER TO PENNILESS
William Alexander McPherson was born on March 16, 1933. His father worked as a plant manager and his mother was a homemaker.
He attended public schools and eventually went on to college. Between the period of 1951 to 1966, he attempted to get a college degree. He attended several universities during this time. Alas, the coveted sheepskin (college diploma), remained ever elusive as he did not earn a degree.
He married in 1958, but it ended in divorce.
By 1969, he started working at The Post.
As an editor, he was in charge of Book World for The Post and under his leadership, he turned that into one of the leading literary publication in the United States, which is no small feat. That is a tremendous undertaking, job, and responsibility. However, here in the real world versus in college, he thrived.
WINNING THE PULITZER
In 1977, he was awarded the Pulitzer Prize for distinguished criticism and the judged noted his large breath of literary and historic knowledge.
A Pulitzer Prize is a coveted award in literature. It first began in 1917. This prize is given out for achievements in magazine, newspaper, literature, journalism, and music composition.
The Pulitzer is named after Joseph Pulitzer, a famed newspaper publisher, that made his fortune in publishing. The award is administered by Columbia University in New York City. Either a gold medal or cash prize of $15,000 (increased from $10,000 in 2017) and certificate is awarded to the winners.
He wrote two published works. One in 1984 and the other, a sequel to the first novel, in 1987. A third was in the works, but was never completed.
At the age of 53, he decided to leave his job, and head to Romania, after the fall of the Berlin Wall. He stayed there for seven years. Mr. McPherson opted for early retirement at the ripe old age of fifty-three. He would not be eligible to receive his pension for 12 years; at which time he would be sixty-five. This is where things began to spiral downward.
Why not retire at 65, when you can receive your money? That just makes more sense. In my opinion, unless you have between $2.5 to $5 million in assets it will be tough for most folks to retire or even justify retiring early before you have access to 401(k)’s, IRA’s, Social Security and pensions.
THE FALL FROM MIDDLE TO LOWER CLASS
Don’t follow any advice, no matter how good, until you feel as deeply in your spirit as you think in your mind that the counsel is wise. – Joan Rivers
After choosing early retirement, having no real plan and giving little thought for his future income, he set out for an adventure overseas.
Although, he is a writer by profession, with age and the decline in his health, he is unable to sustain this way of earning a living. It is far different to be a man of twenty-two, eking out a living by writing than it is at seventy-two. He can long longer grind out the words as he could when he was a young man. He states this is one reason that he is poor.
Inflation would also erode the purchasing power of his money. From 1986 to 2014, inflation has gone up 109.7 percent. Meaning things have doubled in price.
His pension becomes worth half of what it once was and it not adjusted for inflation.
He receives Social Security, but having not worked formally for the last few decades means that this amount would not be very high.
Medical insurance has skyrocketed. It is a much higher cost to insure anyone, let alone a man in his golden years. It now costs him more monthly than he used to pay in a year.
He did not pay attention to his investments and bought stocks on margin.
In addition, he allowed advisors to manage his money and give him advice against his own gut instincts.
Eventually, his investments and brokerage accounts were empty.
FINANCIAL MISHAPS AND MISSTEPS
These are the things that caused Mr. McPherson to lose his financial shirt:
No clear vision of a career
No path to wealth creation ever established
He did not complete his degree; after numerous attempts which is time and money wasted
His only income consists of a Social Security check and a miserable pension
He retired early without a financial plan
Gave no thought to the future or inflation
High cost of medical care never even considered
Higher cost of housing not considered either (as news flash, things become more expensive not cheaper)
Did not plan for health issues
Divorced without having a financial net
He invested on margin
He spent his investment capital
Took bad advice from advisors that told him not to buy shares in AOL and Apple
Due to this he has to depend on the kindness of family and friends
He couldn’t pay for $10,000 of dental work
Did not have the money to attend a funeral
He subsists on a HUD subsidy for housing and medical benefits
Things got so bad, at one point, he only had a quarter to his name in his pocket and no bank account
POVERTY IN OLD AGE
He states by all standards of living that he is poor. Living in poverty is awful and humiliating he writes. Being poor is exhausting and time consuming. Waiting for buses and in lines at assistance offices takes all day.
His income is above $11,670 annually, putting him above the poverty line, as he receives more than that in Social Security. Even though, he has not ever had to apply for food stamps, welfare, or Medicaid he still has had to ask for government assistance.
He feels his younger self was delusional and naïve.
Although, he does not live in a homeless shelter, but living in subsidized housing isn’t exactly palace living. Many living there are poor as well.
The ailments that come with age are hard. Without good medical insurance, medical bills can be catastrophic to say the least. Medical debt has caused some to declare bankruptcy.
According to Elizabeth Warren, Americans are filing bankruptcy in record numbers. The main causes are job loss, illness, and medical bills. Women with children are also most vulnerable to file for bankruptcy.
The things he did that harmed his financial future were unable to be undone.
I share this story because the author had the fortitude to do so. I urge you to not just eliminate, but crush all of your debt and save at least 20 percent of your income because one day you may need it.
“Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.” Chinese Proverb
“What you do not wish for yourself, do not do to others.” Confucius
Anyone out there that has been reading my blog, you can probably tell by now that I am a big fan of cartoons. I even named my blog after a scene in one. See my Meet Miriam page for more on how I came up with the name Greenbacks Magnet.
Anyhow, if you grew up in the 80s or 90s, then you may remember a Saturday morning anthology television show that aired on the CBS network called: CBS Storybreak.
It originally aired from 1985 to 1987 and was hosted by none other than Captain Kangaroo, Mr. Bob Keeshan.
Each episode was 30 minutes long and retold a beloved children’s story in animated adaptations.
It was later rebroadcast from 1993 to 1994 and was again returned to air in reruns in 1997 to 1998. This time it was hosted by actor Malcolm Jamal-Warner.
YEH-SHEN
My favorite episode of the series was entitled, “Yeh-Shen: A Cinderella Story From China.”
Yeh-Shen is a Chinese fairy tale that is similar to the European Cinderella story.
The one adapted on the anthology series, Yeh-Shen: A Cinderella Story From China, retold by Ai-Ling Louie and illustrated by Ed Young, is a well-known children’s picture book adaptation of the fairy tale, which was originally published in 1982.
If you are unfamiliar with the story or the animated series, a kind soul uploaded it to YouTube, and I have linked it here for you to see.
Fast Fact: One of the voices in this 1985 animated anthology of Yeh-Shen, was played by actress Emily Kuroda. She played Mrs. Kim on Gilmore Girls.
Mrs. Kim ran a tight ship, but was hilarious.
And Gilmore Girls happens to be one of my favorite shows. I want this website to be the Gilmore Girls of blogs, as there will be enough pop culture references in here to make your head spin, but that, like Lorelai and Rory, is how my mind works.
Now let’s get to the story.
VIRTUE CAN BE SEEN IN RAGS AS WELL AS SILK
“I believe that virtue shows quite as well in rags and patches as she does in purple and fine linen.” – Charles Dickens
Yeh-Shen always kept a neat and clean appearance. She kept her place in the home tidy. She also told the truth. And always acted with dignity and grace. People noticed, including nobility. And not just any noble, A King. Ursula said it best, starting at 1:02 minutes.
I learned to keep a clean appearance at all times and take very good care of myself. I regularly get exercise, read, brush my teeth, and eat my three square meals a day. And people notice, including my partner. My appearance is one of the things that attracted my boyfriend to me.
FRIENDS ARE IMPORTANT
Yeh-Shen’s only friend is a fish named Gold Eyes. He is a spirit that is there to look out for her, that was sent by her mother, as a way for her to look after her beyond the grave.
Gold Eyes always helped Yeh-Shen. He would assist her with her laundry, give her food and advice, or provide anything else she needed help with.
She would share her meager breakfast with him, even though she had so little for herself. She was a good and kind person and a dear friend. In return, Gold Eyes held her in high regard and was always there for her in return. He tells her she deserves better and one day will have it.
From this, I learned how important friendship is. True friends are there in good times and bad.
It’s like Oprah Winfrey said, “Everyone wants to ride with you in the limo, but what you want is someone who will take the bus with you when the limo breaks down.”
Agreed.
POVERTY IS HARD
However, there is no shame in being poor.
Upon the death of her parents, Ye-Shen is poor. She becomes a lowly servant to her stepmother and her daughter. No matter the amount of work placed upon her, she does her duties, and does them well.
It didn’t matter how hard Yeh-Shen worked or how obedient she was. She was treated badly simply because she was poor.
A man in town even looked her over because he said he was looking for a beautiful wife and not a pretty servant.
From this, I learned two things: (1) A job worth doing is worth doing well, and (2) do all you can to change your station in life. You may be born into poverty, but only you can determine if you remain that way forever.
Might I suggest reading biographies and books about money. And get your education. A good one.
MANNERS MATTER
Every time someone spoke to Ye-Shen, she spoke elegantly and courteously. No disrespect. People remembered and appreciated that about her.
Those manners got her far. She was able to escape trouble, punishment, and land the attention of a handsome noble from minding her manners.
MIND YOUR BUSINESS
Her stepsister did not want Yeh-Shen to go to the festival because that is where people go to find a husband or wife. She said, “she couldn’t handle that type of competition.”
In addition, when she finds out about Yeh-Shen’s fish, she tells her mother, who then gets rid of him. In the end, it turned out to be fortuitous for Yeh-Shen.
Do not focus so much on others. Mind your own business. Run your own race. You could be getting yourself together and becoming your own success, if you focus less on what others are doing.
POSITIVE AFFIRMATIONS
In the show, her stepsister repeats this phrase after her mother tells her she wants to hear positive thinking and not any negative thinking, “I will find a husband, I will be a bride.”
To this day, I practice my affirmations. I actually learned this from Yeh-Shen. I reject negative thinking and focus on being positive. Optimism gets results. Negativity does not.
MISERY LOVES COMPANY
When the stepmother learns of Yeh-Shen’s talking fish she decides to get rid of him. Leaving Yeh-Shen all alone.
Those who are unhappy, don’t want to be alone in their unhappiness. It is your job to get away from them. They will only drag you down.
FATE
Gold Eyes turns into magical bones. He tells Yeh-Shen not to despair, as this was his fate. He is still there with her, even though only in spirit.
Like Doris Day said, “Que será, será, Whatever will be, will be, The future’s not ours to see.”
You cannot control what is meant to be, but you can control your actions and how you respond to others. Stay in control. Have a cool head. Control your emotions, control your life.
KINDNESS
Gold Eyes tells Yeh-Shen that he must repay her kindness. Her stepmother would feed her very little. Therefore, Gold Eyes would provide huge meals for her as a way to compensate for this slight.
Even after all they put her through, she asked Gold Eyes if she should share with her stepmother and sister. He replies by telling her, “Did they share me with you? No. This gift is from me to you.”
He says to her that she can ask for something more, but she says, “this is all I need.”
Being nice has its rewards. I always repay a kindness. However, there is a thing as being too nice. You have to set limits and boundaries with people. In addition, you must also stand up for yourself. You can be nice, but don’t be anybody’s fool. Also, only take what you need. No need to be greedy.
DO NOT BE EASILY PROVOKED
Throughout the entire episode, she is repeatedly reprimanded, punished, neglected, scolded, and insulted. She never responds to this.
Sometimes you have to be man or woman enough to walk away. You must pick your battles. Live to fight another day. Move on.
YOU MUST GIVE TO GET
When Gold Eyes tells her she deserves more and that they should not treat her so bad she says she knows. But she was an orphan and they gave her a home.
He offers to do her chores for her, but she says she does not mind doing manual labor, for now. She hopes to find a husband (her true love) at the festival. He concedes and tells her if that is her destiny so be it.
She is offered the world on a silver platter and turns it down. She wants to make her own future on her terms. It is best to keep your head down and work. You must give to get. That is just how the universe and karma works.
BROKEN PROMISES AND DREAMS
She helps her stepsister get ready for the festival. After, she is done, she says she must get herself ready and asks if it is still alright for her to go, as her stepmother promised.
Her stepmother breaks her promise. She tells Yeh-Shen she can go to the next one, or the ones after, but this this one for this year. Yeh-Shen was looking forward to that festival all year. Hope was thoroughly dashed. Yes, this can happen in life.
A TIME TO BE DISOBEDIENT
When her family leaves to go to the festival, Gold Eyes tells her she should go. She says she has nothing to wear. He then magically turns his bones into golden slippers, which transforms her plain clothes into a gorgeous dress. She disobeys her stepmother and leaves to go to the festival.
In life, there is a time to act. You must decide if you are going to break the rules. And if you are, you better make sure it’s for a good reason.
DEMURE AND CHARMING
At the festival, her family sees the man referred to as The Handsomest One. She then gives a toothy smile and he scowls at her. It was hilarious.
Her mother then says your supposed to charm not scare him. She then goes on to say, “Let’s try the not handsome, but rich crowd.” Come on, really?
Then enter Yeh-Shen all dolled up. Yeh-Shen, who is usually demure, looks confident and sophisticated. A far cry from the reserved creature you are used to seeing in this episode.
Her mother remarks that, “There is the prize winner. She will get the handsomest, richest husband.” She says to her unmarried daughter, “Why can’t you look like that?” Who smartly remarks, “because I was born from you.” Her mother then pinches her.
Oh yea, for a drama it also has quite a bit of comedy. It’s a dramedy for sure.
HATERS GONNA HATE
When Yeh-Shen walks her stepsister says that she had hot nothing to do all day, but take dancing lessons and be pampered. Come on. Hating like that will give you wrinkles unmarried daughter.
It doesn’t matter how nice you are or what you do for people. Some people just are some haters! Ignore them. They hate us, cause they ain’t us. I say don’t hate, congratulate. Figure what they doing so you can see what makes them so successful and find the secret recipe, so you can copy it.
PRICELESS
At the festival, she runs away and loses one of the gold slippers. A man finds it and sells it to the merchant. The merchant then gives it as a gift to the King.
The gold slipper is referred to as priceless. And it is. Rare indeed. When something is priceless, you don’t just give it away to anyone. The merchant gave it to someone he felt was worthy.
A GIFT FIT FOR A KING
The King feels that the slipper must belong to someone of great beauty and wealth. He decides to find the owner. Who just so happens to be Yeh-Shen; who is also looking for a golden slipper.
If something is lost, then you may decide to return it to its owner. However, do not think that it will come with a reward or be some fairy tale, happy ending. All that glitters may not be gold. In this case, the owner was a poor, orphaned, peasant girl. But there is more to her than people can see.
SEEK AND YOU SHALL FIND
Yeh-Shen asks around town to find the other slipper She finds a man who sold it to the merchant. He then tells her he gave it as gift to the King. She says she must acquire it from the King. The merchant tells her to go to palace to go try it on. She says, “Thank you sir, I shall.”
If you want something, go and get it. Sitting on your laurels has never helped anyone.
THE POOR HAVE NO VOICE
Yeh-Shen waits in line all day to try on the slipper, but is denied. She then tries to take it. The palace guards accuse her of trying to steal it. They called her a girl in rags. She tells them the slipper belongs to her friend, a dead fish, as the slipper design is like the scales of a fish. They lock her in the dungeon.
First, if she had been a woman of nobility, she would not have been treated this way. To be poor is not a crime. However, if you want to be heard, you must ask the right way.
Second, you cannot even look as if you are attempting to steal something. There is a saying that, if you’ll lie, you’ll steal and if you’ll steal, you’ll kill. Do not even give people a reason to think that.
MERCY
The King says to have her released in the morning. A guard tells her in a curt tone to get out and stay away. She merely bows.
Like in the Karate Kid (1984), there is a time to show mercy. A tense situation arises between an adult and a teen. And they needed an adult at the wheel. Mr. Miyagi was that adult.
And for those who do not know Mr. Miyagi, this is for you. Please do not be like that kid on that episode of Supernatural.
For those of you who do not know or may not remember, here is the scene of Mr. Miyagi teaching Daniel son another life lesson.
A TRAP SO TINDER
Better than any tinder app could do, the results of this match are written in the stars. Slide left, I mean right. Don’t want to make that mistake.
The King sets a trap to leave the slipper unattended so Yeh-Shen will take it and he will then follow her to see what she does and why it’s so important to her. That’s smart.
And pretty slick, if you ask me. Reminds me of that scene in Hackers (1995).
PATIENCE
They wait. She takes the slipper. They follow.
Anything worth having is worth the wait.
IT DOESN’T BELONG TO YOU
After getting the slipper back, her step family find her out. Her stepmother is happy to have a matching pair of gold slippers. She says their fortune is made and their ticket out of the cave. She will sell to the King.
You do not own and cannot sell what is not rightfully yours.
NO THIEF HERE
The King stops the squabbling between Yeh-Shen and her stepmother. She tells him she is no thief. She needs to have the slippers together so that her friend can go return to the pond of his forefathers.
Sounds crazy, I know. However, when in doubt, tell the truth.
WHO ARE YOU?
The problem with playing games is that you get hurt too. – Common (actor, rapper, entrepreneur)
She tells the King who she is. No more games or pretending.
He asked. She answered. Tell people who you are.
GET TO THE ROOT OF THE PROBLEM
The King asks her, “What are these slippers to you?” She says they belong to her friend. Explains her story to the king.
That’s right. Tell people your story. Share what you are trying to do. You will be surprised how much people are willing to help you when you are doing the right thing. Also, when you know the truth, then you can deal with it.
DO THE RIGHT THING
The King tells her if that is what she must do with the slippers, then do so. He then says “but first, place them on your feet.”
She obliges and transforms back into the woman seen at the festival that day in the beautiful dress.
The look on her stepmother and stepsister faces are priceless!!!
The King could have decided not to believe her, but he listened. Do the right thing because it is the right thing to do and not for any prize or reward. Doing the right thing is its own reward.
SECRETS REVEALED AND DESTINY
Gold Eyes magically appears as a spirit and thanks Yeh-Shen. All secrets are now revealed. He tells her now he can go. As her dreams are about to come true.
If you are meant to have it, no one can stop you from your destiny.
The truth is out, now you can deal with it.
MARRIAGE MATERIAL
Her stepmother tells her that the clothing that Gold Eyes gave Yeh-Shen belongs to her because she is her guardian.
The King says no as she is a free person. She must then step aside.
The King says, “Your friend, the mystical fish has brought you into my life for a reason.” He then steps up to the plate, wasting no more time and asks for her hand in marriage. She says yes.
The show ends by letting the audience know to visit your local library or book store. Book recommendations are provided by the Library of Congress. If you like this tale, then read Cinderella by The Brothers Grimm.
I, myself, am a huge fan of the fairy tales. I like Hans Christian Anderson and the Grimm Brothers. Particularly, the Grimm Fairy Tale Classics cartoon, but that’s another story.
“It is so liberating to really know what I want, what truly makes me happy, what I will not tolerate. I have learned that it is no one else’s job to take care of me but me.” – Beyoncé
Many of you may have heard of the FIRE movement (financial independence, retire early). However, what some of you may not know is that there are different ways to FIRE.
Let’s explore some of those ways shall we.
WHAT IS FIRE?
According to Camp Fire Finance, the elevator pitch for FIRE is this, “When your investments generate enough money to cover your annual expenses you’re financially independent (FI). At that point work is optional and you can retire early (RE) if you want to.”
Basically, you have more than enough money coming in to stop working. Usually, this requires anywhere from $1 million to $5 million dollars depending on what you want or need to spend to maintain your lifestyle or that of the one you dream of having.
For example, if you decide you want to withdraw at least $80,000 a year, you would need to have a $2-million-dollar portfolio.
HOW DO YOU BUILD A $2 MILLION DOLLAR PORTFOLIO?
“Don’t focus on getting to $1 million; focus on getting to $2 million.” – Arnold Schwarzenegger
I heard that little gem when Mr. Schwarzenegger was doing a radio interview.
So, one word: invest.
Property, stocks, art, and stamps can all help you build your net worth.
“Market crashes are the best times to buy,” he said. “When Walmart has a sale, everybody would run in to buy. But when the stock market has a sale, or the real estate market has a sale, everybody runs away. That’s why there’s a difference between rich and poor today because they don’t know a good thing when they see one.” – Robert Kiyosaki quoted from a MarketWatch interview
Do not focus on your income; focus on your net worth.
Earning a high income means nothing, if you spend it all. If you make $85,000, but spend $86,000 you’re in the red. You can blow through just about any paycheck.
PURSUIT OF LIFE, LIBERTY, HAPPINESS AND FINANCIAL FREEDOM
The pursuit of financial freedom takes work and time. I thought this post from Apathy Ends, hit the nail on the financial head on why people are not rich, yet. See my post on Patience is the key to wealth.
I will never forget that episode of America’s Next Top Model (ANTM) when Ms. J was teaching the girls how to walk down the runway. He was fierce and determined. What he got from the girls was gentle and undetermined or undefined and lazy.
He commented to them, while slapping his hands together, with one palm face up against the other hand palm down for emphasis: “I want you to walk like you’re selling it and the rent is due tomorrow.”
I could think of no better way to tell someone that is how you approach your money and your life’s work. Either be all in or don’t do it at all. Passion is what separates the have’s from the have not’s. And in that case, it was a $100,000 prize and modeling contract.
Get a financial education. Learn all you can about money. Make a plan or a budget for your money, but make it sexy. I know for some people talking about interest rates puts them to sleep, but how about we think of the subject differently and come at it from another angle.
I went to a meetup in DC and heard J. Money of BudgetsareSexy say this, “Do you want to learn how to balance a check book? Boring. Or do you want to learn how to save a million dollars?” WHAT?!!!
Did you also know reducing your 401(k) investment fee by 1% can provide you with 10 years of income? Shocking? Yes, I know. I can teach you how to save $1 million and keep $100,000!
Now, those things sound sexy and exciting. Yes, please tell me more.
Once you have a question. Start looking for answers.
THE RULE OF 25
“I can never be safe; I always try and go against the grain. As soon as I accomplish one thing, I just set a higher goal. That’s how I’ve gotten to where I am.” – Beyoncé
If your annual expenses are $55,000 a year, then you need $1.375 million to retire (55,000 x 25) and then this should last you for the next 25 years.
The formula used to calculate your 25 years of expenses is this (expenses x 25 years).
Estimate your FIRE number.
You want more money to retire on? Like Beyoncé says, set a higher goal.
For $100,000 in income, you would need a $2.5-million-dollar portfolio to generate that kind of cash.
“Keep your feet on the ground and keep reaching for the stars.” – Casey Kasem
The 3% rule refers to your withdrawal rate: the annual percentage amount you can safely withdraw from your investment portfolio when you retire.
This allows you to touch your interest earned at a slower pace. Since, you are withdrawing 3% instead of 4%. Meaning your draw down the principal more slowly, if ever. The more you have squirreled away and the less you take, you may not even touch the principal at all.
I know that is really shooting for the stars, but that really is the goal. You never want to touch principal. That way, you live only off the interest forever!
I got this chart from doing another online search and the best I came across was from the blog Financially Alert.
“‘Enough’ is what it takes to not worry about the bills.”
“‘A lot’ is enough that you never have to worry about working again.”
“‘F you’ money means you can rent a jet to go wherever you want, whenever you want, and no party is out of reach.”
“‘F everyone’ money means you can have your favorite band in your backyard, not care how much it costs, and lend them your jet to get there.”
We’re not talking about rich; talking about wealthy. Chris Rock once said, “Shaquille O’Neal is rich. The guy who pays his salary is wealthy.” He also said comfort is the poison. Too much of it can slow down your progress on the road to wealth. All I mean is to stay hungry. I’m just saying there are different levels of wealth.
FIRE IT UP
“Focus on all four of your net worth factors: increasing your income, increasing your savings, increasing your investment returns, and decreasing your cost of living by simplifying your lifestyle.” – T. Harv Eker
Simple math can help you retire rich.
Unfortunately, many people think of math as a foreign language and say it’s too hard to learn.
In my experience, to build wealth you need to know addition, subtraction, division, and multiplication. And that’s about it.
Why FIRE AT ALL?
More control and satisfaction over how you spend your time and money. Finding something you love to do and are passionate about is life changing and fulfilling. What you want is…FREEDOM. Waste less money and work with what you’ve got. Do more with what you have.
What do you want out of life? Write it down. Go seek answers. They say seek and you shall find.
According to Mr. Money Mustache, you should focus more on you than your bank account. Get wiser and healthier so you can increase your probability to get wealthier. My favorite quote of his is this: “Salads and barbells every day.” Become your best self with hard work, dedication, and consistency. Be the Boss.
READY, AIM…FIRE!!!
According to an article by Physician on Fire (POF), called What is fatFIRE?, a Facebook group defined FIRE as the following:
FIRE = Financial Independence. Retire Early.
leanFIRE = FIRE on a shoestring budget.
fatFIRE = FIRE on a generous budget.
Most aspiring to fatFIRE have a target of $2.5 Million or more or the equivalent annual budget of $100,000 or more based on a 4% withdrawal rate.
I found a breakdown of the terms financially speaking on Miniafi on the difference between lean and fat FIRE under the title So Many Terms!
I break it down like this:
LEAN FIRE = $1 million dollar or less portfolio
FIRE = $1.25 to 2-million-dollar portfolio
FAT FIRE = $2.5 million dollar or more portfolio
FIRE is about having enough passive income flows to never work again or to decrease the amount of time you spend doing work you don’t want to do and increasing it on the work you do want to do.
It’s almost Halloween! So, I will start this post like the Crypt-Keeper would on the show Tales from the Crypt on the heels of this upcoming All Hallows Eve.
Hello Boils and Ghouls! Tonight’s tale is one of money, sophistication, and women.
Topic du jour: Women who talk money. Who are the ladies behind the riches?
Before I get into the interview, I just want to start by saying this:
Thanks for coming out tonight. You could’ve been anywhere in the world. But you’re here with me, I appreciate that. – Jay Z
So, like Nas says, “Yo sit back, relax, sip your cog-ni-ac” and I hope you enjoy this blog post!
INTRODUCTIONS ARE IN ORDER
Much like Chaucer did, in A Knight’s Tale, I want to make an introduction.
Welcome Ladies and Gents!
And everybody else here NOT sitting on a financial cushion:
Today, you find yourself equals.
For you will all equally receive the same knowledge.
I have privilege, nay pleasure, of introducing you to bloggers, like no others,
Bloggers that can trace their lineage back to 2015.
I first met them at a dinner table near Orlando, Florida,
Waiting for our drinks,
Hoping that our meals would be arriving soon,
As the chips and salsa, were not enough to satisfy our hunger.
Next, Kitty amazed me still further
With her sign language skills and by telling jokes for an hour
Helping us forget we were ravenous
And to not walk across the street to the Shake Shack.
Three hours later, both ladies entertained us with stories
So, that we did not spend dinner in uncomfortable silence.
And so, without further gilding the lily,
And with no more ado,
I give you the Seekers of Financial Independence,
The Protectors of ending uncomfortable silence,
The Enforcers of Getting Rich,
The Ones —
The Only –
Bitches Get Riches!!!
MEET THE BI*CHES
GBM Miriam: It was an absolute pleasure meeting you ladies at FINCON 18 this year! Congrats, on winning the PLUTUS Award for funniest financial blog for Bitches Get Riches. Thank you for stopping by Greenbacks Magnet.
This blog is to help folks learn all things money.
I asked Kitty and Piggy to share their knowledge by answering a few questions and they so kindly said yes.
And thankfully so, I need all the help I can get because I don’t want to have to live in the forest, eat off the land, and use roots as medicine due to lack of money and financial literacy.
After the Dow dropped 800 points, I was strongly considering it, but then, like my sister, I thought if only I didn’t need tampons and to watch Supernatural…
So, here they are dropping gems right here for all to see. In the illustrious words of Sailor Moon, “And that means you!”
Fast Fact: The hand signs that Sailor Moon makes while she says her famous line, “In the name of the moon, I will punish you” means “I love you” in sign language.
Let’s get right into the interview.
BI*CHES START A BLOG
What prompted you ladies to start a blog about money?
BGR Kitty:We were the first among our group of friends to hit the classic major life milestones–marriage, buying a home, selling our souls in big girl corporate jobs. Our parents and grandparents, bless them, they meant well, but their advice was from another century. So we were always texting each other for advice. We needed help from a peer who’d been there recently. Eventually we realized there was a wealth of valuable information just sitting in our text convos, and we thought, “Hey, why not publish it?”
BGR Piggy:What Kitty said.
What are your favorite finance books? How come?
BGR Kitty: Piggy is The Good Child and will give you real answers. But I’ll tell you that I get more out of reading advice that I don’t agree with. Bad advice fires me up. For that reason I have to say The Four Hour Workweek is my current favorite. I haaaaaaaate that book. Myopic, exploitative, and smug. Just thinking about it gets me excited!
What are you reading right now? What’s on your night stand?
BGR Kitty: I’m currently rereading Y the Last Man. It’s one of my absolute favorite graphic novels. It’s the story of what happens to the world when everyone with a Y chromosome dies suddenly, with the exception of one guy and his pet monkey. A fantastic piece of sci-fi that’s I mean, I love any story with roving bands of crazed misandrists. I also just started White Trash: The 400-Year Untold History of Class in America.
BGR Piggy: I just finished reading “Dietland” by Sarai Walker. It’s a total mindfuck of a book, all about body positivity, subversive feminism, rape culture, and a literal feminist terrorist cell that assassinates rapists and blackmails corporations into eliminating sexist products. If your reaction to that description was “… wut?” then hey, me too!
One thing people may not know about each of you?
BGR Kitty: I don’t get hangovers. (I try not to rub it in the morning after a long night of drinking, but it definitely came up at FinCon.) I also have a genetic mutation that makes my body not process cannabinoids. Finally, I can open ANY jar. Seriously, ANY jar. Given this body of evidence, it’s entirely possible that I am Bruce Willis’s character from Unbreakable.
BGR Piggy:I hate chocolate. Refuse to eat it. When I was a kid my brother and I would divide the Halloween candy between us: he’d get all the chocolate, I’d get all the non-chocolate. He also got all the cavities which I’m sure is unrelated. I also love playing blues covers of pop songs at open mics! Just learned Ariana Grande’s “Dangerous Woman.”
What’s in your wallet? How did you start getting your riches?
BGR Kitty: I have a net worth of a quarter million. I find that beyond amazing, considering I’m a working artist. Every single lucky break I’ve had in my career has been because someone believed in me and advocated for me. If I were trying to make it in the big city with just my brains and my work ethic, I’d be straight fucked. I’ve had help, lots and lots of help. That’s why I like helping other people! It both feels good and is the only karmically sensible reaction.
BGR Piggy: I love this question, but I feel like Kitty’s question is perfect. Also, the Capital One Venture card is LITERALLY in my wallet. My husband and I paid for a vacation to Portugal for our fifth anniversary using the travel points for that card. It took us about two years of earning the points, which isn’t bad for a free vacation.
BONUS ROUND
Bonus Questions (pick any of the questions from the top or below that you want to answer)
Any life or money lessons from a favorite movie or TV show you would like to share?
BGR Piggy:According to my favorite movie, The Princess Bride, you should never get involved in a land war in Asia, nor should you go in against a Sicilian when death is on the line.
If you could have dinner with anyone in history, who would it be? Why?
BGR Kitty: Malcolm X, especially towards the very end of his life. He’s a personal hero, and an incredibly complex figure. I’d be so interested to hear his thoughts on the state of America right now. Also, he doesn’t eat pork, and neither do I, so it would be super easy meal planning.
GBM Miriam: On your About Page it states: Who are Kitty and Piggy?
Some people wonder which of us is the Bebop, and which one’s the Rocksteady. But that question is an illusion. We are both Krangs.
So, here is my question.
Why not Bebop and Rocksteady? Why 2 Krangs? Inquiring minds want to know! You said I could ask you anything. Please, no judgment.
BGR Kitty: If we’re going by the 1987 animated series, Bebop and Rocksteady–though lovable–are bunglers of the highest order. We’re strictly bunglers of the second-highest order. Like Krang, we are very goal-oriented. We too have platform dependencies (us, Patreon; him, Shredder). And most of all, we share Krang’s personality: sarcastic and demanding, with an almost admirable abiding pettiness.
If you found a lottery ticket that ends up winning $1 million. What would you do?
BGR Kitty: I would drive my van to Empire City and stay at Le Hotel with my son in the hopes that I could convince my dead wife’s possessive lesbian ex-servant to chill the fuck out. Hashtag reference! All the kids got it!
The End.
This is where the screen fades to black and the curtain closes. Please ladies take a bow!
Well, we have now come to the end of this interview. That was not only interesting, but also entertaining to say the least. I feel like I just walked out of an amateur comedy night, open-mic contest!
BGR:Thanks Miriam!!!
GBM Miriam: Thank you Kitty and Piggy for coming aboard!! The next time we see each other the Patreon is on me!
Want more financial and life gems, from the comedy stylings of the dynamo duo of Bitches Get Riches?
“If you would be wealthy, think of saving as well as getting.” —Benjamin Franklin
Growing up one of my favorite toys was my piggybank.
I used to put all the spare change and money I found or received into it.
It was my ice cream truck money.
I just loved having my own.
It was such as source of pride, freedom, and independence because I was allowed to spend my money on the things I wanted.
That is how I want everyone to feel.
A sense of ownership and accountability over oneself and your actions.
In order to do this, you have to go back to saving the old-fashioned way, like putting money inside that old piggybank.
Here’s how.
A HOUSE IS NOT A PIGGYBANK
First, you need to stay away from borrowing. And if you truly must borrow, make sure to only get what is absolutely necessary. Every dollar you borrow just keeps you in debt.
Case in point, if you do a cash out refinance on your home, that can reset your mortgage debt-free clock and cause you to owe more interest over the life of the loan.
No one wants that.
You need to keep your hands off of large piles of cash. This includes the equity in your home, your 401(k), and easy access savings accounts.
It’s like losing weight. You have to keep your hands out of the cookie jar. In this instance, it’s the money jar. If you keep taking out of it, you will never reach your goals.
Forget taking out huge auto loans and personal loans. You do not need to drive a BMW to the airport on the way to Jamaica. That is the road to broke, if you cannot afford it.
I would rather you drive a Honda to the Grand Canyon, if this will keep you out of debt.
HOW TO START SAVING YOUR COINS
The most important step is to decide to save. If you want to save more, you have to earn more, slash expenses, or both.
Set a goal.
I started out with a goal of $50 per month and worked my way up to saving $13,000 a year by increasing yearly savings goals.
You have to write it down. Otherwise, it is a wish and not a goal. A goal requires action. It starts with writing it down. A written plan is 80% more likely to succeed.
I started saving my change. I would put it into a jar or bag.
I would save up anywhere from $25 to $100 dollars in change and then deposit this into the bank.
When you see the money add up and feel how heavy that coin jar or bag is, it gives you incentive to keep going. After, mastering the coin game, I moved on to bigger gains.
TURN SAVING COINS INTO SAVING DOLLARS
Then I started turning my attention onto dollars.
I started with manually transferring $50 per month into my savings account.
From there, I set up an automatic deposit of $25 every two weeks.
However, I was also getting tired of having to pay ATM fees. So, I found a way around this.
I would have to either go to the bank and take out a large enough amount of money to get me through the week, go to free ATM’s, spend less, or go to stores and do cash back.
For instance, grocery stores will allow you to do a debit card cash back of anywhere from $100-$300 depending on what store you go to.
Other places, like the convenience store, may allow you to get between $20-$80 cash back with a purchase.
I slowly worked my way up to saving more.
Every year, I would re-evaluate what my saving goals were, I would write it down, and figure out a way to make it happen.
If you zero sum budget, then you know when something gets paid off or you eliminate any type of expense that money gets freed up and must go somewhere or it disappears. Like all good dogs, it goes into heaven, I call it dollars heaven.
I started saving my money first from income I earned, and then spending what was left over.
I would decide to save $300 per month and figure out how much more to bring in to increase my cash flow or what I could cut in my budget to lower my expenses and then save that money.
It went down like this:
Year 1: Save $600.
Year 2: Save $1,800.
Year 3: Save $2,500.
Year 4: Save $3,600.
Year 5: Save $10,000.
Year 6: Save $13,333.
WHERE TO PLACE YOUR MONEY
Since, I knew I did not want to depend on having to go to the bank or grocery store every week, I decided to place money into a cash box.
I would put no more than a few hundred bucks in it.
I was placing my savings into several savings accounts such as regular savings and money market savings.
In addition, I would label my savings accounts to ear mark that money for things I wanted to pay for such as a vacation, car, home down payment, or college.
I started doing 5% of my income to now saving over 41% of my gross income!
It took years to get to this point.
Once I made the decision to save, I wrote it down, and created a plan.
It took over 5 years to get here!
So, take my advice, do not rush to try and do so much and then do nothing.
Take small steps toward bigger ones. That is the key to building wealth. The kind of wealth that lasts takes time to build. There are no shortcuts. Only patience, discipline, consistency, and time.
