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.
Financial Freedom

FINCON 18: The Recap from your friendly neighborhood Greenbacks Magnet (Pt. I)

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FinCon 18 ended for me, as I write this post, literally 36 hours ago!

It was so good I couldn’t wait to write this post.

This was my very first FinCon.

I promised Michael, a PF blogger, who runs the website Financially Alert that I would write this post and include a link to the one he wrote for FinCon 2016, as his was so helpful to me!  So, here’s a shout out to you Michael for being so kind.

This post is going to be long, but I promise it will be worth it!

I had to write this post now while I still have the momentum going with everything fresh in my mind.

A strike as the iron is hot mentality if you will.

So here it is.

This should help anyone learn how to navigate FinCon like a Pro.

Happy Reading!

MY VERY FIRST FINCON!

For those who don’t know, FinCon is the ComicCon for money nerds (bloggers, YouTubers, podcasters, and the like).

Basically, we talk about finance and anything that centers around money. Bloggers try to help people navigate through the complexity of personal finance. The Founder (PT Money) brought us all together and it was an absolute blast!!!

FinCon has just wrapped up its 8th conference in Orlando, Florida. It was held at the Rosen Shingle Creek Resort about 13 minutes from the Orlando International Airport.

Next year it will be hosted in my backyard… Washington D.C.!

I actually arrived one day before (on Tuesday) the kick-off of FinCon on Wednesday at noon. And I am so glad I did. Let me tell you all about it.

But first….

I did a little recon before purchasing my ticket to FinCon. This is how I ended up actually deciding to go to FinCon.

I was posting on my blog and tweeting and it was around February I started hearing people being excited about this money conference called FinCon.

Someone even reached out to me on Twitter (another blogger DM’d me: Stephanie from Poorer than You) and asked if I was going.

And please forgive my ignorance to those familiar with the now infamous FinCon, but I had to ask what is FinCon?

So, I started doing some searches online and found tons of information. However, it wasn’t enough. I needed to know more. Therefore, I DM’d someone myself. Another blogger. His name was Drew and he started the blog GuyOnFire.  I asked him about FinCon.

He said it was great! He tries to go every year. He had so much enthusiasm about the conference that it made me want to go.

That’s when I made a decision: I was going to FinCon!

I did some more detective work to see reactions from past attendees and came across the website Financially Alert.

There were photos and other information from other bloggers about FinCon, but I found Financially Alert to be the most detailed. It was not too much or too little information. Like Goldilocks, I found these posts to be just right.

Therefore, upon deciding to go, I was going to put theory to practice and do all the things Michael suggested on his blog posts.

Here is a list of some of the things Michael suggested and discussed on his posts: Why I Love Conferences and How to Milk It for All It’s Worth! And FinCon 16: The Ultimate Recap from One Blogger’s Perspective

 

  • Plan in advance.
  • Sign up for networking Meetings or Meetups.
  • Be Flexible.
  • Network and BE REAL. Be genuine, and friends will flock.
  • Prioritize time interacting with people.
  • Volunteer to help.
  • The first day your voice will probably be raw and hoarse from talking to so many people.
  • As the day’s progress, you’ll find yourself naturally clumping into groups of friends you find common ground with.
  • It’s still a good idea to go out and meet new people every day. You never know who you may collaborate with later on.
  • Furthermore, reach out to others that you want to meet specifically BEFORE you attend. This will increase your chances of meeting them. (By the way, I did this with Michael and that is how I got to meet and hang out with him!)
  • Bring paper and pens.
  • Laptop.
  • Phone and Charger.
  • Bring lots of business cards. (Vistaprint or Moo are good places to get them)
  • Credit card.
  • Water.
  • Get some sleep and be well rested.
  • Take Immediate Action by following up with new contacts within 48 hours. If you don’t, chances are it’s not gonna happen at all.
  • Reach out to those you want to forge a mutually beneficial relationship with. Offer them something first and see where that takes you.
  • Don’t Forget to Have Fun!

Michael also has a Takeaways & Actions at the end of his post FinCon 16: The Ultimate Recap from One Blogger’s Perspective with fantastic advice and information!

I did all of these things and it worked for me!

His posts are what ultimately got me to push purchase ticket on the FinCon website.

After, reading his posts and purchasing my ticket, I decided to do a Yes, Man approach to FinCon. I said yes to everything!

Let me share with you my story.

Pre-FinCon: Day Zero (Tuesday) 9/25

I flew into Orlando from Reagan. Wheels up at 10 am. A quick one-stop layover in Atlanta (ATL). Wheels down at 2:00 pm in FL.

I met my driver right after landing. He was holding a sign with my name on it.

I looked into doing a shuttle, but then thought better of it as I knew I did not want to make any stops and would want to go straight to the hotel.

We pull up at the Rosen Shingle Creek Resort, I hop out the car, tip my driver and proceed to the lobby.

Once there I check-in at the front desk, pay for my room, get my keys, and head straight up.

While walking towards my room, I see a gentleman in a FinCon shirt. So, I looked at him and asked if he was here for FinCon? He said yes. I told him so was I.

He introduced himself as Sean and gave me his card which read: 2 Frugal Dudes.

Sean (Frugal dude #1) then invited me to a meetup later that night. I gave him my card too and said goodbye.

At first, I was not sure if I should go.

But I was doing Yes, Man. So I was like why not.

Sean was even nice enough to tweet me and to tweet out that they were meeting in the lounge at 8 pm for the mastermind meetup.

https://twitter.com/seanmerron/status/1044674916690391046

How could I refuse such as thoughtful guy? I couldn’t. So I went.

I got there around 830 pm and did not leave until close to midnight! It was so much fun.

I met so many people that I would go on to hang out with and talk to for the duration of the conference.

I met Kevin Griffin (Frugal Dude #2), Amanda (Debt Free in Sunny CA), Kelley (Freedom in a Budget), Justine Nelson (Debt Free Millennials), Jamie (Mr. Jamie Griffin), Cal (Mogo Interactive), Eric Rosenburg (FinCon DJ), Rachel (Budgets & Kale), Liz (Less Debt, More Wine) and others including Sarah the budget girl!

Just before midnight I called it a night and went up to my room.

FinCon: Day 1 (Wednesday) 9/26

I got up around 8 am and headed down for my 930 am mentoring session with none other than podcaster Nick Loper of Side Hustle Nation.

Oh yea, FinCon sends you emails leading up to the event. That’s how I found out about the mentoring. They offered and I said: Yes.

We met at the Smooth Java coffee place which also proudly serves Starbucks.

We spoke for about 30 minutes. He answered all of my questions and was a true gentleman and professional.

We discussed the following:

  • #1 rule of podcasting is to have excellent audio quality
  • Audacity audio software is excellent for podcasting
  • Zencaster is an easy way to record interviews with good quality
  • Can use sites that costs as low as $15 monthly for your podcast needs
  • There are audio tutorials that show how to edit on YouTube that are helpful such as Pat Flynn
  • You can submit feed to iTunes and get your message out there
  • Editing podcasts takes a long time and is the hardest part
  • Media host that is good to use is Libsyn
  • Amolto is a good call recorder for Skype
  • Sign up for affiliate programs to monetize site such as Flex Offers and impact.com
  • Be strategic. Look at those that are doing well (Well Kept Wallet, The College Investor, Millennial Money)

By the end of our talk, I knew I was not ready for podcasting as editing is tedious (Brad and Jonathan from ChooseFI said in their workshop it takes Jonathan 8-10 hours to edit each podcast!). Holy cow!

We parted ways and I went to go have some breakfast. On the way down, I ran into Justine from last night who asked if I wanted to grab some breakfast. The answer: Yes.

While at the buffet breakfast which cost $18.50 + tax, we saw just 15 feet away from us, from the Dave Ramsey crew: Rachel Cruze.

After, about 10 minutes Justine was itching to meet her. I had to nudge her to do it. And she did. She even thanked me for pushing her to do it! Hey, glad I could help.

Justine is the person who also pushed me to download the FinCon app. So glad I did. I used this as a resource for the rest of the conference. Very helpful. It lists who is in attendance and where they are speaking.

We parted ways and I went off to check in and get my Fincon ID.

I ran into tons of people from last night and none other than Michael from Financially Alert.

I also got to meet Gia and Brian from The Lazy Man and Money.

I went off to volunteer with NEFE to decorate piggybanks for 3rd graders in local elementary schools. I did this with my new gal pal Rachel (Budgets & Kale).

Then I went to my first workshop.

I ducked into two, but it was in the hallways where the action was happening. You could feel the electricity in the air. I talked so much I got a headache from meeting so many people.

[Workshop] Next Level Affiliate Marketing hosted by Cut Dailey of The Penny Hoarder and Anatomy of a Podcast with Bobbi Rebell (Financial Grown Up) and Steve Stewart of Steve Stewart Podcast Productions.

I met tons of people in workshops and in the hallways like Shani from Purse Empowerment, Dave from Accidental FIRE and Paulette from the F-off Fund.

Some notes are:

  • Elevate your ability to monetize your affiliate marketing
  • Sign up for courses to learn how to do marketing, advertising, book writing, etc.
  • Scalability and think about scaling
  • Be persistent. Ask for help.
  • You need a proper microphone for guests
  • Headset with mike or Apple earbuds with little microphone piece will suffice
  • Can have interviewer do interview in a closet (closets offer no background noise)
  • Watch the amount of space on device your using as podcasts take up a lot of space on computer
  • Write quality content that engages people
  • It’s not your age, its what’s on the webpage
  • Think about the content you are creating
  • What is your message

I took breaks here and there. I also went up to my room, closed the curtains, turned off all the lights and took a short rest. It helped a lot. I also did this every afternoon I was there. Trust me you will need it.

I also met Rachel Cruze in the hallway. She was really nice. She said she was glad I walked up and introduced myself and wished my people would do that because she likes meeting people. You heard it here folks straight from Ms. Cruze herself.

Rachel Cruze gave a great keynote and said a budget gives you permission to spend. She also said don’t try to be the hero when it comes to teaching people about personal finance. Be their guide. Let them decide what is best for them.

She also said she had to work for money. She didn’t get an allowance.

In addition, she would go and speak for free when she started out. Did that for a long time before anyone offered her any money to speak.

You have to take what you can get when you are starting out.

Don’t focus on what someone else is doing or have. It’s okay to start small. Important just to start.

Start where you are.

While taking a break I ran into Jamie and Gina from The Frugal Convert.

We introduced ourselves and Gina invited me to breakfast the next morning. My answer: Yes. We exchanged numbers and agreed to meet at the 18 street market at 9 am Thursday.

I missed the First Timer Orientation at 430 pm presented by Nick True from Mapped Out Money (I’m a big fan of his blog btw) because it was standing room only.

There was another Thursday morning. I figured I would just catch the next one. (No such luck as I was busy that day too)

While I went to get some food at the market I decided to talk to a gentleman in line. I was a stranger, but so what we are at a conference. And you know what? He was very informative.

He said make sure you go to the EXPO on Thursday from 1-5 pm. That is where the brands are. You just say this: Hello, how can we work together? (more to come on the EXPO later)

I also took notes throughout the entire event. Starting from day one. I knew I would not remember everything.

I would look at ID’s and write down names of blogs or podcasts I was interested in looking up. I would also listen to groups and people talk.

That is how I learned about Millionaires Unveiled podcasts, the ChooseFI Meetup DC, and local fincon groups.

Even when I spoke to people I took notes. I would go to my room every night and write notes of things I remembered throughout the day like a journal or diary entry and tweet people I met.

I also followed everyone who followed me. I want to keep up with people. And I like to tweet.

That night I was scheduled to go to dinner at 630 pm for a birthday party for Stephanie from Poorer that You. I met up with her and about 10-12 others in the lobby.

Nope. You got me. My Twitter @mjp2520 is there. So, yep that’s me!

I ended up riding shotgun to none other than J.D. Roth of Money Boss and Get Rich Slowly. I couldn’t believe it. I had been reading his stuff for like the last three years. He could not have been more down to earth.

Also riding were Cara (Military Dollar), Erin (Reaching for FI), Ruby (A Journey We Love), and none other than Liz (Chief Mom Officer)! I was a huge fan of her blog.

We talked in the car and I told them what made me get into finance was reading the book The Automatic Millionaire by David Bach.

I remember one of the stories within one of his books where he told a crowd, that women would have to start taking more control of their finances and not rely so heavily on the men in their lives because if men were so great at finances, then why are so many Americans in debt?

A woman got up and told the crowd that he was absolutely right. Her doctor husband had recently passed away and mortgaged everything to the hilt. Even his medical practice.

She only had $25,000 dollars left and the $1 million home they had a mortgage on was so high it was about to be foreclosed.

I was in shock after I read this. I was like how did she not know this?

It was then and there I decided I would always be in control of my money and would learn all I could about finances.

Liz (Chief Mom Officer) said she remembered that story. And what got her into finance was reading the book The Wealthy Barber. She also said The Millionaire Woman Next Door was a good read as well.

At dinner, there ended up being about twenty of us.

I didn’t get to meet everyone because we were on one end of the table and were all so busy chatting that I missed some people on the other end.

I was sitting near JD Roth (Money Boss), Ruby (A Journey We Love), Kitty and Piggy (Bitches Get Riches), Josh (Josh Overmyer), Andrew (ShiftUpwards), Erin (Reaching for FI), Cara (Military Dollar), and Liz (Chief Mom Officer).

I also met Jimmy and Jennifer (Living Life Loving Us), Lisa (The Get and Give), Annie (Champagne & Capital Gains), Emilie (Wise Mind Money), Holly, Kevin, and Jennifer (Good Life. Better).

Money Women Unite. A list of women bloggers. And there are a ton. More than even I knew and I am one.

I sat next to Kitty who told jokes all night. She and her partner Piggy are a riot. They should be on YouTube or a podcast. They are like a comedy show (duo) together.

After dinner, we went back to the hotel around (you guessed it, midnight) and up to our rooms for bed.

What a fun night.

Stephanie (Poorer than You) reached out to me on Twitter, a complete stranger that I was, and invited me to dinner. She was so nice in her invitation that I just couldn’t refuse. My answer: Yes. So glad I went.

To be continued in Part II…

FINCON 18: The Recap from your friendly neighborhood Greenbacks Magnet (Pt. II)

Wealth

Health really does equal wealth

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“The first wealth is health.” – Ralph Waldo Emerson

I am sure many of you have heard the saying “An apple a day keeps the doctor away.”

Well, I wish I would have taken that more to heart when I was younger.

Sure, I focus on my health more today, but when I was young I was a junk food junkie.

And I would feel sluggish, moody, and unhappy. I didn’t drink enough water and craved salt and sugar.

About six years ago, I started getting serious about my health as most of my reading on wealth would discuss how important your health is in the journey to accumulate wealth.

In one excerpt, a man stated he worked out and ate well for the past 60 years because he knew he would acquire most of his wealth toward the end of his career.

In the illustrious words of Bill (Alex Winter) and Ted (Keanu Reeves), from Bill & Ted’s Adventure: Whoa!

Hearing this man say that really made me think about the choices I was making. I started to clean up my act. Limit the sugar and focus on nutrients.

It has also been reported, that most people become millionaires after the age of 50!

In fact, 99% of Warren Buffet’s wealth was earned after his 50th birthday and he is worth over $60 billion dollars.

So, put down those empty calories and stop eating those chips and pass the hummus!

Here are some of the things I would tell young me to do in order to be healthier to get wealthier.

FOCUS ON WHOLE FOODS

I heard Jillian Michaels once say that if it doesn’t come from the ground or a mother, don’t eat it.

Real whole foods are the way to go.

You do not eat for taste. You eat for nutrition.

SKIP THE BOX

I used to be the cereal queen.

If it had sugar in it, I ate it.

It was like that scene in The O.C., when Seth (Adam Brody) says, “please help yourself to the large assortment of breakfast cereals.”

Yes, he just loves cereal.

- What? Mom can't even make cereal. - Thanks, Seth.

Unfortunately, food that is in a box usually contains high amounts of sodium, sugar, and GMO’s.

Major no-no’s when it comes to health.

Best to just stick with real eggs, lean meats, nuts, fruits and veggies.

IF IT’S FAST, GO SLOW

I would go to McDonald’s sometimes twice a day! Now I haven’t been inside one for the past five years or more.

What a difference a decade makes!

It’s no secret that fast food is loaded with salt, sugar, and lots of calories!

In some instances, a burger such as a double bacon cheeseburger can be 1,200 calories or more! And that’s based on the recommended 2,000 calorie diet. Yikes!

Better to purchase farm fresh ingredients and cook at home. Less calories and more flavor. Oh, and did I mention it’s cheaper.

The money saved on not buying junk or the medication to remedy any maladies from bad food consumption can go straight toward investments and working for you instead of being spent on you.

STAY ACTIVE

They say even walking has its benefits. It keeps joints and muscles healthy. The mind sharp and is a mood booster.

So lace up those sneakers!

People who stay active tend to have less health problems down the road.

This means more time to focus on working, accumulating, and growing those assets.

DRINK WATER

I know smoothies are all the rave, but I still prefer plain old water.

In addition, I prefer to eat my calories.

In one book I read (Beyond Diet), it said to drink half your weight in ounces daily.

Not only does water help your organs, it keeps the weight down, regulates your mood and blood flow. Yes, all that from H20. So drink up.

Oh yeah, and it clears the skin better than anything else on the planet!

TO BE OR NOT BE ORGANIC

I started doing some reading about organic foods to see which is better.

Safe to say the organic shelf is the top shelf of foods.

However, not all organic food tastes great or may even be necessary.

One dietitian said that sure all organic is a great way to go but, if you cannot afford it then at least get organic milk and eggs.

You just need to focus your energy on what you can do to be healthy and not what is the most expensive.

Remember this: Life is not about wants, but needs.

Don’t get me wrong. It’s good to want things. Just like Winona (Ryder) says in Welcome Home, Roxy Carmichael.

It's good to want things.

However, everything does not have to be so expensive because truth be told most useless things are.

Put that money to work and then use it for something that is useful.

Interviews

MEET NEW YORK TIMES BEST-SELLING AUTHOR BRENDA JACKSON

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Ms. Brenda Jackson has written numerous romance novels over the past two decades. One of her most notable book series is for a family named the Westmoreland’s. I was able to speak with Ms. Jackson for a peek behind the writing curtain and found out how she went from novice middle school writer to full-time novelist for Harlequin, the world’s largest romance book publisher.

I was outside reading one her books entitled; The Secret Affair, a Westmoreland novel, and a complete stranger saw me and said, “that’s a good book.” I know. That was probably my 30th time reading it at that point! It also happens to be my favorite Brenda Jackson novel. Just in case you couldn’t tell.

I got a chance to interview the best-selling author with a Q&A session. You can read my interview with Ms. Jackson here and find out more about the woman behind the romance.

And here we go…

Thank you Ms. Jackson for taking the time for me to interview you. Let’s get right into it!

What made you become a writer? How did you get started writing romance?

My mother asked me what I wanted to be when I grow up. During those days many women went into the teaching profession because during the 1960’s and 1970’s, becoming a teacher was the job most available to women. I said that I want to be a professional woman, go to the office, and wear a nice suit.

However, until then, I liked to write stories. In school, around the 8th grade, after meeting my future husband Mr. Jackson, I started writing innocent little love stories.

What were your stories about?

I would write about school stories and outings. Like an American beach story. My church sponsored beach trips and I would write stores like the beach movies I saw. Similar to the Gidget and Moondoggie stories from the Gidget movies.

I would hand-write stories on notebook paper and write it out about four or five times and then pass it out to groups of kids at school.

How did you start writing for Harlequin?

It actually took some time. Harlequin was not my first publisher. This happened years later after writing books for another book publisher.

When did you start writing professionally?

I did not start out a writer. I went to work for State Farm and stayed there for over 30 years while working my way up into management before retiring.

While I was working and moving up the ranks, I ended up going to my high school reunion. It was there that people kept asking me what I did for a living and when I told them the most common response was that they all said they thought I would be a writer.

So, I decided I would start writing again. I sent out requests to get published, but major publishers and Harlequin rejected me. Those publishers said, unless there was a market for the types of novels I was writing that they were not interested.

I received 40 to 50 rejections.

However, I did not give up and was given a contract with Kensington books.

How did it feel to get accepted? What happened after you got your book deal?

It felt good. First, I started out writing as a hobby and now I am being paid for it. It was wonderful.

I started writing manuscripts with African-American characters. Those books were initially rejected and denied by other publishers, but Kensington was the one publisher that took a chance and felt there was a market for this genre.

I started writing and publishing my books and then they took off.

How did you get started with Harlequin?

After writing 20 or so books, I had a following and with that success Harlequin then reached out to me.

Harlequin wanted me write for them and so after my agent called and then speaking with them I decided to accept. At this point, I was writing for more than one publisher.

However, it took many years of writing and hard work before I started writing for Harlequin. I had positioned for that and one day I received an offer to write for them.

Harlequin later asked me to be exclusive. I told them that they would have to pay me for exclusivity. They made me a deal of a lifetime. My contract was good. Even more than Kensington.

The deal was so good that I left my six-figure salary job with State Farm.

I had made more money writing books than I ever dreamed of making.

How long have you been a writer?

I started writing over 20 years ago. I was still working for State Farm and began writing in the 1980’s and 1990’s. I would go away on conferences and write in my hotel room when I was not attending any workshops making sure to that I wrote on my time and not theirs.

While at State Farm, they supported my career and my dreams as a writer. They also helped promote my career. State Farm sent me to college and I majored in business at Jacksonville University in Florida. They would sponsor me to go on book tours. And I would do books signings.

I would represent my company wherever I went. I also later got football sponsors from HBCU’s such as the Bayou East West Classics.

In the beginning, I would go around to libraries and ask them if they would carry my books.

While in college, I mapped out what I wanted to do. I also became a Delta after joining their sorority and have kept a relationship with my fellow Deltas to this day.

Where do you write?

I essentially had two incomes while still working at State Farm and writing and made sure to purchase a home and paid off the mortgage. So, my home in Florida is paid for and I have no mortgage.

And this where I write. From home. I built an in-home office where I go and work. I still had a morning routine where I would get up, get dressed, and go downstairs to work.

What was your first published work?

The Madaris Family. One of their novels was my very first work. It was called Tonight and Forever.

What are your favorite characters? What types of romance novels do you like to write?

I have so many favorites. Just too many.

I like to write reunion books and about first love. How love starts, grows, and blossoms and becomes full circle. It feels so good.

Did your husband inspire any of the stories you have written? Are any characters based on him?

He always has and always will. He influences my writing. I write my characters as I see him, which is as the Alpha male. In my novels, you are the king. I get that feeling and like romance.  I feel that that could be in any man and so I write them that way.

I married my high school sweetheart, Gerald, and I still have the going-steady ring he gave me at 15.

I read that you are a New York Times (NYT) Best Selling Author. Congratulations! What book(s) have made it onto this prestigious list? Are there more than one?

I have had most of my books on the USA Today Best Sellers List but some titles like the Westmoreland’s and Madaris have made the NYT list series genre.

Some books do not qualify for the market so I started my own publishing company, Madaris Publishing Company. Those books as well as my other titles are sold on my online store.

How many books have you written?

I have written 120 books. I am now on my 124th book.

Wow! How many books do you write each year?

I used to write six to eight books a year when I started writing exclusively for Harlequin. I now write two to three a year. Typically, I submit a book for Harlequin every nine months or basically one a year.

Some of my books are now being turned into films. One of my publishers, BET, made one into a movie.

Do you have a favorite book you have written? Any favorite characters?

Ties that Bind is my favorite. It’s longer than my other books. It’s about four couples that met in 1968 on campus at Howard University. It’s during the time of MLK, civil rights, Black Panthers, and Vietnam. It was also featured in the Washington Post.

Zion is one of my favorite characters. He is a jewelry maker and a bad boy.

Are you currently reading any good books?

Not presently. I spend so much time writing that I do not always get a chance to read other books.

However, I am doing research for a book of mine that is being turned into a movie. The Grangers is a three book series and the climax is in the third book. I get script approval, so I am studying how to promote A Brother’s Honor. The film will be on the Passionflix network. We want to make sure the script still has the Happily Ever After (HEA) in there.

Any inspirational words or advice for aspiring authors?

Know your genre and do your research. Focus on tone. Write from the heart.

Where can people find you?

You can find me on Twitter, Facebook, via email, and my website.

Thank you Ms. Jackson for your time as it was an absolute pleasure to speak with you!

If you would like to know more about Brenda Jackson, as well as purchase any of her books, you can go to her website www.brendajackson.net

You can also connect with her on Twitter at @AuthorBJackson 

 

 

Financial Freedom, Real Estate

American homes are now $1,100 per month storage units

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American homes are becoming expensive storage units.

A house is not a home unless it contains food and fire for the mind as well as the body. – Benjamin Franklin

According to Zillow, the median home price in the United States is $200,000 across the country.

According to CNBC, in other cities across America, the price of a home is even higher.

That’s not too bad.

However, considering that the median income is $50,000 buying a home can be tough.

That would mean to purchase a home, based on the median price, you would have to spend up to four times the average median income!

Um. Hold up. I do not want to be house rich, cash poor. So, I suggest that people wait to buy until you can afford a decent down payment.

Lately, I have heard a lot of stories from friends, colleagues, and acquaintances about their desire to purchase a home.

I am all for it. I want what they want. It’s the American Dream after all, isn’t it?

Not according to some.

There are quite a few financial experts and self-made millionaires that feel a home is a liability and not an asset.

Unfortunately, in many ways a home is a liability. Unless it gives you money, its taking it from you.

Let’s examine this further shall we.

HOME OR STORAGE UNIT

Times have changed.

I remember when one parent would work and the other would stay home and take care of home. One working parent was able to put food on the table and provide for a family of four or five.

You could come home after working your nine-to-five and enjoy spending time with your family. You could eat dinner together and just enjoy relaxing in your home.

There were less cars on the road as many families in the 1950’s had only one car. There were not four licensed drivers and three cars.

Then in the 1980’s we went to two cars. And families were still able to put food on the table and take a yearly vacation.

If you want to have some additional confirmation and perspective on how times have changed, watch the scene in the film Back to the Future where Marty (played by Michael J. Fox) from 1985 says we have two televisions and listen for the responses from his family from 1955.

That’s right. One home, one car, one television. Simple, right. The good old days.

Well, those days are long gone for most folks.

It now takes most families having two incomes. And that is just to make ends meet. Many Americans are now living check to check.

It is not uncommon today to have two working parents.

Not only that, but to have one parent working multiple jobs.

For some people, it has gotten so bad that they are practically (or literally for some folks in Silicon Valley) living in their cars.

People go out, earn the money, and then spend upwards of 50% of take home pay on housing.

And that is after taxes (net not gross).

With housing prices in cities going for $500,000 or more, most of your paycheck is gone.

And yes, homes are going for half a million in various parts of the country. That is fact, not fiction.

According to Zillow, the median list price in Washington, DC is $568,600.

According to CNBC, in other cities across America, the price of a home is even higher.

Now working adults have to move further away from their jobs to find affordable housing. As to earn a decent salary usually means longer commutes, when you work in the city.

I live in the Washington, DC Metropolitan area. It is not unusual for someone to regularly have a one-hour commute.

The DC area has the second-longest average commute with an average travel time of 46 minutes or just under 25 minutes per one-way commute.

Let’s do a little math.

You start your day at 5 am. Get to work by 8 am. Put in the customary 8 hours. Travel back home and get there by 6 pm. Eat dinner, hug the kids, watch the evening news, and get ready for bed at 9 pm. Get the standard 8 hours and then do it all over again until Friday at 5 pm.

If you calculate through all that time, you will see you only spent about 5 + 8 = 13 hours at home and eight of them while you were asleep!

Oh, and don’t forget the weekend trips to the wine bars, parties, and regular outings or errands. Yep, again that is all time spent away from home.

You are not really utilizing and enjoying this home you are working so hard for. It has become a pit stop on the way to the work, the grocery store, the dry cleaners, soccer practice, and the trips to the Caribbean.

Basically, your home is storing your stuff.

You are either gone, going away from home or asleep most of the time your there.

Mighty expensive digs to be fronting as your own personal hotel, if you ask me.

Now let’s look at the cost of buying and furnishing a home.

BUYING THE AMERICAN DREAM

Not so long ago, families bought starter homes with hopes of trading up later when finances permitted to get their dream home.

Now, I hear more folks buying the dream home as the starter home.

So, instead of buying a condo or townhouse, people are getting 5-bedroom single family homes as the forever home.

Well, guess what? Dreams costs…. A lot.

Not only are homebuyers ponying up bigger down payments and closing costs for this mini Mansion, but also have to furnish it.

Trips to Ikea and Pottery Barn are being replaced with expensive interior designers and Havertys.

Not to mention, the costly window treatments ($500 per window), replacing new carpets with newer carpets, custom chef’s kitchen, fancy gas range, custom back splash, French doors, custom king bed, home office with Vizio or MacBook laptop, and the pool furniture.

And don’t forget buying a state of the art sound system for the man cave.

After going through every room, you spend enough dough to put one kid through college furnishing your new home.

Let’s add it up.

Home purchase price: $400,000 (approved for this amount)

Living Room Furniture: $10,000

Dining Room Furniture: $5,000

Bed Room Furniture: $8,000

Man Cave: $3,000

Kitchen remodel: $9,000

Office Furniture: $3,000

And you budgeted $240,000 for the home and $15,000 for the furnishings. With a total of $255,000.

However, what was spend was this: $438,000

That’s a difference of $183,000!

You could buy another house for that amount. You could then keep one and rent out the other. Merely a suggestion.

STORAGE UNITS FOR $1,100 PER MONTH

You read that right.

That comes out to $13,200 per year.

You’re essentially paying the bank thousands of dollars annually for you to literally have a place to store your hat box.

If you invest money in the stock market over 30 years and get a 7% return, you could have over $600,000 squirreled away!

Forget what lenders say you can afford. Do what you know you can afford.

Don’t be led astray from your budget. Stick to it. This will help you prosper and thrive instead of just survive.

Moral of the story: Don’t let your dreams be bigger than your wallet.

Entrepreneurship, Financial Freedom, Financial Independence, Investing, Self-Made Millionaires, Wealth

How Benjamin Franklin used 13 virtues to get rich

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“Tell me and I forget. Teach me and I remember. Involve me and I learn.” – Benjamin Franklin 

Benjamin Franklin is not only one of America’s founding fathers (known as one of the signatories the Declaration of Independence), but also its first millionaire.

He did this by investing in what he knew. That is how he built his fortune.

You can do the same to build yours.

I listen to what people have to say, but I always make my own decisions.

I research any industry I want to know and then focus on investing in what I know. I try to put my money where my values are.

I prefer consumer staples such as food, beverage, toothpaste, cleaning supplies, tissue, and other household items.

Companies like Proctor & Gamble, Colgate-Palmolive, Kimberly-Clark. Clorox, and PepsiCo.

You can find many of these companies included in many mutual funds such as any 500 index fund like the Standard & Poor’s 500 Index (S&P 500 index), the Vanguard 500 Index Fund Investor Shares (VFINX), the Fidelity Spartan 500 Index Investor Shares (FUSEX), the Schwab S&P 500 Index Fund (SWPPX) or the   T. Rowe Price Equity Index 500 Fund (PREIX).

I figured a good way to start my wealth journey was to learn about those that became wealthy.

Benjamin Franklin also created a list of 13 virtues to develop his character. This lets me know that your character is your destiny.

Here I provide you with his checklist. See which ones you can try to emulate to help you on your road to wealth accumulation.

THE 13 VIRTUES OF BENJAMIN FRANKLIN

In 1758, Benjamin Franklin published his essay The Way to Wealth.

Although, it was written 260 years ago, the advice still is holds up, even to this day.

Below is a copy of his checklist.

SPOTLIGHT ON FRUGALITY

My personal favorite is frugality because it includes all the other virtues.

Frugality is basically the will to spend money on what is important and avoiding spending on what is not.

Frugal is not being merely cheap or miserly like Ebenezer Scrooge.  See my post on Money Lessons I Learned from Scrooge McDuck. It is about saving money on things you do not really need.

Saving money allows you to put that money to work for you.

Imagine every dollar is a little soldier. What do soldiers do? They fight.

You have to fight for your money because everyone is trying to part it from you. Don’t let them.

Invest that money and each dollar (soldier) fights for you everyday 365/24/7. Even while you sleep.

FOCUS ON FRUGALITY

In this world, you’re on your own. Benjamin Franklin knew that. So, he set out to start a business in a field he knew. He was a printing apprentice and started a printing shop. He became an expert at that one thing and did it so well that people paid him for it.

He then reinvested the profits back into his business.

That is how he grew rich.

He knew to become wealthy, he had to ignore the charlatans or hype. He had to focus on himself and his spending habits.

And that is what you must do. Ignore the hype. Forget what everyone else says or thinks. Trust your gut.

FORGET THE FANCY SET OF WHEELS

You do not need a fancy car to make you happy. Ride a bike and get some exercise. Better yet, buy an inexpensive, older Chevy where the bumper looks like it will fall off any second.

Then people will be less likely to ask you for money, if they see you riding around in a clunker because they will think your broke, but it couldn’t be further from the truth.

It’s not that you do not like nice cars or can’t necessarily afford one. It’s that you choose not to spend your money on it. Sounds pretty good right?

And watch out for the hangers on. They tend to come around when your last name is followed by an M.D. or Esquire.

FORGET THE BIG HOUSE

You do not need a mansion to live in. You know what that does? It just causes you to spend more money to heat, cool, maintain, and furnish it.

You fill the home up with stuff. No one likes an empty corner. Every inch is piled high with stuff.

How is that stuff paid for? Usually with credit.

What happens if you need that money? For instance, homes need maintenance.

Do you know what the repair bill is for a roof on a mansion? Well, you don’t want to know. One thing we do know for sure is that it costs more than what you would spend on a smaller house.

What about PMI? Private mortgage insurance is what you must pay if you put down less than a 20% down payment. And folks, that money is on top of the insurance and a monthly mortgage payment. We aren’t talking chicken feed here. It can be hundreds of dollars per month!

What about property taxes? It can add hundreds or thousands to a monthly mortgage payment. That’s money that’s not working for you in the bank.

You want to be investment rich, not house poor.

Every dollar that goes toward the house, can’t be working for you in an investment account.

I know they say the value of the home will go up and your equity will increase as you are making the house payments. However, let’s not forget the 2008 housing bubble.

When that bubble burst, so did most folks equity. Foreclosure notices were going out in the mail all over the country. Many lost homes. And many have still not recovered.

FORGET THE DESIGNER CLOTHES

You know those people who say dress to impress. Well, that’s fine and dandy, if you can afford it. However, if you can’t swing it, then walk by the $400 clothing rack and head to the sales rack in the back. Forget sartorial superiority. Who wants to be the best-dressed poor person?

I now see more people walking around with designer purses today than I have seen at any other time I can remember. Who’s paying for it? Mr. credit card, that’s who.

I see people opening up store cards all the time.

They have so many different color credit cards in their wallet it looks like a skittles bag exploded.

Places are handing out applications for credit cards every, single day.

You must resist. Resist the urge to spend. Credit is seductive. The temptation is too great.

So you must decide, what is more important. Buying a designer’s clothing and paying for their summer home or funding your own future.

FORGET THE EXPENSIVE WATCHES AND JEWELRY

I read about an NBA player who had bought dozens of watches. And not just any watches, but Rolexes!

Just because. Well, hey, you know bosses got to be on time.

Do you know what those things retail for? Well, last time I checked, it could be anywhere from $2500 to $40,000 and up.

The guy could have started a college fund. He could have funded an entire small city of kids $1k college scholarships.

Who needs 30 watches? Someone who wants to know the exact moment they went bankrupt I guess.

FORGET THE EXOTIC VACATIONS

So you want to travel. That’s great. But unless you can afford it or do it on someone else’s dime (like for work).

You may just have to watch the latest episodes of House Hunter or any show on the travel channel.

I once read it is a great thing to go travel and see the world as it is a great education, it will only cost you: $25,000.

I think I’ll just read a good book on world travels instead and invest that money until it earns enough interest that I can pay for the trip with cash.

Here are some of my suggestions on traveling when your travel budget is on life support.

You want to see the northern lights in Iceland? See it on a YouTube video.

You want to go skiing in Switzerland, Aspen, France or Vail? Watch a travel show until you can afford it.

You want shopping sprees in Milan, Paris, Rome, New York’s Fifth Ave, or Rodeo Drive?  Focus on buying things that will appreciate in value. Clothes, once purchased, is money that’s burnt.

I know you watch the television shows and see all the families going to Disneyland or Hawaii. However, what they don’t tell you is how much it costs to go to these places. Lots of times the studio or the network is picking up the tab.

They do it for ratings. Because who wants to watch a show about people sitting on couches all day. They want to see the lifestyles of the rich not the broke and unknown. I say just stop watching those shows.

Focus your attention on earning and working. If your head is down working, you never can look up and notice what everyone else around you are doing.

FORGET FOMO (fear of missing out). It’s a myth.

I know plenty of people that go out, spend money, buy nice cars, big homes, fly to the islands, and go to lots of parties.

However, they are not the boss. They work a 9-to-5 just like everybody else. One missed check could cause havoc on their already precarious finances.

Many people are one paycheck away from being on the sidewalk.

Don’t be like them.

Practice the 13 virtues. Be frugal. Then you can live like no one else because you will actually be rich instead of acting like you are.

FORGET PRETENDING TO HAVE MONEY

Forget pretending to be rich. The only time bluffing works when it comes to money is at the poker table.

And you know what happens when the hand is over, the bluffing stops there.

So leave the bluffing at the table and check it at the door.

Remember that scene in the comedy movie Back to School with Rodney Dangerfield. He was a wealthy guy named Thornton Melon, but always said to his son: A man without an education is nothing.

There was one scene in the film where he was talking in class about being in business and all the things a businessman is doing to make it in the real-world.

The teacher disagrees with his assessment, even though he was coming from a place of information.

When the professor asks where to build the business after scolding Melon he replies, “How about fantasyland.”

When it comes to your money you cannot afford to live in a fantasy. You have to keep your feet planted firmly on the ground and your actions based in reality.

Earn money, save it, invest it, and get rich slow.

College, Film Reviews

Money and Life Lessons I Learned from Disney’s film National Treasure

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An investment in knowledge pays the best interest. – Benjamin Franklin

It has been so long that I had almost forgotten this gem of a film released by Disney in 2004 called National Treasure starring Nicolas Cage. He plays a historian, Benjamin Franklin Gates, on the hunt for a fabled national treasure hidden in America that was told as a secret to one of his ancestors in 1832 by Charles Carroll.  The secret was the first clue (the secret lies with Charlotte) to the treasure and this is where the story begins.

After finding the first clue, it then leads to another, this time it’s to an invisible map the Declaration of Independence, which was signed on July 4, 1776. And here begins the adventure and the life lessons.

GET A GOOD EDUCATION

After hearing the secret of the treasure from his grandfather, Gates goes on to become an expert in history as he recites historical facts, data, and events in American history with ease throughout the film. It was also at one point stated that he had various degrees from top colleges such as Georgetown and Brown University.

His educational and historical prowess is evident during the film to be quite extensive. This makes him very important to those who want the knowledge he has. His education and skills also helps him get out of all types of jams and sticky situations in the film. His expertise in literature, culture, science and history also drives the movie forward as he informs the audience of how he plans his next move why and with what tools he needs to succeed. His street smarts and brains are what keeps him alive. I learned from this that the value of a good education is priceless.

SHARE RESOURCES AND KNOWLEDGE

Gates is constantly figuring out his next move and is usually one step ahead of everyone else. However, he always shares what he knows. This allows people to put faith and trust in him, which was necessary for his success.

At one point in the film, he does not know something, but his comrade does (Justin Bartha). This enables them to keep moving toward their goal. Therefore, it goes to show that knowing is not enough, but you must also apply and at times ask for help. Shared knowledge brings more gains that keeping it to yourself.

CARE FOR OTHERS

Throughout the film, he makes sure to ask the woman (Diane Kruger) he is with if she is hurt or hungry. He tells people to be careful and to watch their step. He does all he can to keep his father out of trouble or in any harm’s way. He also shows great respect and that he cares for the people around him. They, in turn, watch out for and care for him.

Gates kept good people and characters around him. He surrounded himself with capable people. If you ever saw the film The Fast and the Furious: Tokyo Drift, there is a scene when Han says he needs good people and character around him. He also said you make decisions and you don’t look back. Words of wisdom to live by. It’s gems like that people need to hear.

A LITTLE COMMON SENSE GOES A LONG WAY

In the film, while they are on their way from Washington, DC to Philadelphia, Gates says they need to buy new clothes to look less conspicuous. His companions agree, but one states they have no money. He then tells them that he has taken a book off his father’s shelf called Common Sense, which was written by Thomas Paine during the Revolutionary War in 1776. Paine is also famous for writing the American Crisis and this sentence: THESE are the times that try men’s souls.

Inside the book, there is money. Gates says his father usually tucks away a small stash of hundreds in there. Bravo, how very smart of his father. They say hide it in the books, as that is the last place most people will look, if you are trying to keep something hidden.

I learned here that even small amounts of money can you help out, if you are in a pinch. And remember cash is king. People can turn you down for credit, but people welcome cash with open arms.  In one scene, a sales girl was hesitant to give back a hundred dollar bill he paid the clothes with, but conceded when he offered something of value in exchange. And he just wanted to borrow it to look at the back of the bill! Do not ever downplay the power of cold, hard cash.

THE STATUS QUO

Later in the film, Gates is in a bind. The bad guys (Sean Bean) find him and use his friends and leverage to do their bidding. He is reminded that their usefulness exists in keeping the status quo. One the bad guys get what they need, then they are no longer useful. Therefore, they do all they can to keep the state of affairs ever in their favor. Much like the motto of The Hunger Games: May the odds be ever in your favour. This film starred Jennifer Lawrence as Katniss Everdeen.  And the motto was said repeatedly by Effie Trinket (played by Elizabeth Banks). Trust me, you will need them to be as no one wants the odds stacked against them.

If you can, your goal is to always have a strategic plan to win. One of the greatest military leaders of all time, Napoleon Bonaparte, was well aware of battle strategy. During his time, he dethroned the king and queen (Marie Antoinette) of France during the French Revolution. His goal was to be emperor himself. However, short of funds he decided to sell the French controlled territory in America, known as the Louisiana Purchase in 1803.  Although, the United States could have said no, they decided to get the funds together in order to double the size of the country. The U.S. paid $15 million dollars and would go on to eventually have enough territories to create seven, and later, 15 states. I learned when opportunity knocks, answer the door.

PAY ATTENTION TO YOUR SURROUNDINGS

At various times within the film, he assesses the situation and surroundings to get out of numerous scrapes. Every time he was in some sort of trouble or missing a piece of the puzzle, he with the help of his companions figured a way out or an answer to a clue. Paying attention to your surroundings and telling the truth can help keep you safe. For example,

  • He knew that a ship was buried in the artic based on climate change and where to look for it
  • Saw that a barrel was being safeguarded by a deceased ship captain
  • Solved various riddles and clues throughout the film
  • Was aware of a smuggling cargo hold in an old ship
  • Noticed an incomplete coin collection in the office of a would be ally and used this information to get on this person’s good side and lower her defenses
  • Saw an opportunity to get access to the Declaration due to a 70th anniversary party advertised at the Smithsonian
  • Bought a duplicate Declaration just in case of any trouble as a way to safety precaution
  • Knew to watch for signs of activity from afar and to then park blocks away from his father’s house for fear of being followed
  • Bought new clothes to appear less conspicuous
  • Separated the map (lock) from the glasses (key)
  • When in federal custody he told the truth and received goodwill treatment
  • Recovered items that were clues and kept them in his possession (which would come in handy later)
  • Avoided danger at all costs
  • Delegating tasks such as asking a young boy to access the Silence Dogood letters written by Benjamin Franklin to avoid detection from the FBI
  • Always left little to no trace of his existence when plotting schemes such as putting the brick back where he found it
  • Did not knowingly try to put anyone in harm’s way and avoided loss of life
  • Knowing that when spelunking in caves that the explorers would create second opening in case of cave ins or other danger as a means of escape
  • Recognizing that using the clue piece was how to open a secret door (the secret lies with Charlotte, literally)

ALWAYS HAVE A PLAN

When the bad guys need more help as their knowledge is not as vast as Gates, they then turn to him for assistance. This kept the ball in Gates court and the status quo on his side because he knew things they didn’t know. Once it was evident that he was the one in control, he exploited this opportunity and used it to his advantage to win. I learned that in life you need to acquire knowledge and skills, keep learning, apply what you know, be useful, and always have a goal or plan for success.

FORGIVENESS

Once they are abandoned and left by the henchmen, they then look for a way out. Thinking it is the route to the treasure. When it is not, they are thoroughly disappointed. Gates, very thoughtfully, apologizes to this friends. They forgive him.

This reminded me of an old saying I heard: To err is human, to forgive is divine. This saying is from “An Essay on Criticism,” Part II, 1711 by English poet Alexander Pope.

GIVE IT TO THE PEOPLE

It is not enough to have abundance, if there is no one to share it with. Too much should not be held by one person. The founding fathers believed the same thing about government: Give it to the people.

When Gates had the opportunity to give, he did so. He decided to give the wealth he had from the knowledge he had gained to the people. Therefore, there is no common good to be had by being miserly, stingy, or hoarding. Give what you have and give freely without looking for anything in return. Earn what is yours, keep what you need, and then give the rest away.

WHAT IS LIFE WITHOUT A LITTLE WHIMSY

You will notice in the film certain times when they are playful or funny. Although, they were in serious situations, they still made time to laugh now and then. One of my favorite scenes is when he covertly and illegally goes into the room for the Declaration and once he walks in, points to the camera as his friend looks on. This was funny because it signaled to his friend that his plan could be done and that as serious as things were he could still keep it lighthearted. Sometimes, in life you just have to smile or laugh at yourself.

It’s like Sheldon Cooper said, on The Big Bang Theory, after he decided to to drink hot chocolate in months with an R in them: “What’s life without a little whimsy.” Indeed. Not very much fun.

HARD WORK = REWARD$

By the end of the film, Gates turns down a 10% finder’s fee. Instead, he requests only a 1% fee for his services. His friend is upset by this. However, you will see what that 1% has gotten them.

Although, it took him 30 years, he was able to reap the benefits and rewards for all of his acquired knowledge and hard work. He also garnered the respect of his peers, family, friends, and colleagues.

From this I learned that nothing can replace hard work. You have to give it everything you have because success takes no less than everything you’ve got. You must believe in yourself, even when nobody else does. Prove people wrong. Work for what you want. Do the right thing as it is its own reward. However, that reward may take years. But do not give up. The journey is more satisfying than winning.