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.
After doing some research on millionaires and billionaires, I have noticed some recurring attributes among them, which include: reading, pursuing a passion, and setting goals.
READ
“The more that you read, the more things you will know. The more that you learn, the more places you’ll go.”
― Dr. Seuss, I Can Read With My Eyes Shut!
Many of the affluent read daily or often. They seem to set aside at least 30 minutes a day for reading. This greatly improves their knowledge of their products, brands, and businesses. When you know what drives the market, then it makes it easier to compete with everyone else. I even read that Marilyn Monroe was also said to be a voracious reader.
I know in my life reading has helped me a great deal. I was able to do better in school, make better informed personal and professional decisions, and increase my investment knowledge.
One of the most successful investors of all time, Warren Buffet, says he reads every day. Buffet typically spends 80% of his day reading. Here are some quotes from interviews he has done over the years in regards to how to become successful.
The CEO of Berkshire Hathaway, when asked once about the key to success, pointed to a stack of books and said, “Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.”
Warren Buffet starts his days with an assortment of national and local news. The billionaire investor tells CNBC he reads the Wall Street Journal, the Financial Times, the New York Times, USA Today, the Omaha World-Herald, and the American Banker in the mornings.
Even though Buffet reads tremendously, it would mean nothing if he did not retain what he has read. Buffets says that knowledge builds up over time. Here are some tips to remember what you read – take notes, skim the text, read out load – are just a few things you can do to retain what you read.
“To give anything less than your best, is to sacrifice the gift.” – Steve Prefontaine
I have always had an affinity for writing. I write pretty much every day. My goals are that my writing helps to plant the seed that inspire people, motivate them, and make them feel good about themselves. Writing about finances is the cherry on top of the sundae for me. And I give it everything I’ve got. No less. When I’m sick. I write. When I’m tired. I write. When I was down to my last $2. Still wrote. I would write down my thoughts, hopes, dreams, and goals. I have crossed off at least 5 items on my 10 year to do list. If it can work for me and countless others, then I know it can for you.
Dreams can come true. You just have to believe and lay down the groundwork. There is no builder of a home that would not first lay down the foundation and then build up. The same goes for life. You do not start in at the top. Otherwise, if you do, you are more likely to have created a house of cards, that can easily come tumbling down. Like the three little pigs, you want bricks and not sticks or straw. You want something that is concrete. Construct your life blueprint on building or creating something that is solid.
If you can, find a mentor. Mentors help guide and keep people on the right path to succeed. I suggest finding someone who has already done what you want to do successfully and then asking them for advice. You can also read their books or attend their workshops. Either way study their success and see if you can imitate it.
SET GOALS
“Set your goals high, and don’t stop till you get there.” – Bo Jackson
The best advice I have ever read was to write down your goals. I have heard this from numerous celebrities including Beyoncé. She said she would write down her goals; and that she wanted to go platinum and sell a million records. Well, she wanted to be financially secure. Well, she can scratch that off her checklist. Simply heed these words: Write it down.
When you set goals and pursue your passion it is a winning combination for success. Instead of watching the clock, you just keep on working. There are too many hours on the clock when you do something you detest, but no enough hours in the day when you do something you love.
Forget the naysayers. They are not you and you are not them. Focus your energy on doing what you enjoy putting your effort into. The energy you use to pursue your passion or anything that you do well is never wasted. When you can focus and limit or ignore distractions, you are well on your way toward success.
Don’t worry about the world coming to an end today. It is already tomorrow in Australia. – Charles M. Schultz
I know that many people around the world know the infamous Peanuts gang and of course the lead character, Charlie Brown. The Peanuts were an American comic strip created by Charles M. Schulz in the 1950’s. Race for Your Life, Charlie Brown! This is the title of one of many in a film series based off his comics. The film was released in 1977 and still has relevance today. The Peanuts not only have incredible satirical wit and humor, but are just great stories from the heart filled with stories of a young boy and his dog.
Charlie Brown may be good for a laugh, but also for learning life lessons. I have always enjoyed Charlie Brown growing up and loved reading the comic strips on Sunday mornings. Let’s see if we can bring back some of those feelings tonight.
Choose your battles
In the beginning of the film, Lucy loses her temper and confronts a young girl for sticking her tongue out at her. However, Lucy backs down after deciding it wasn’t worth fighting over. She then respectfully and humbly walks away.
I learned that you need to choose your battles in life. Sometimes you have to be man or woman enough to walk away. Everything is not worth fighting over. Trust me, when it is, you will know.
2. Plan B
Charlie Brown gets left by the bus on the way to Camp Remote in the mountains. His faithful pet dog, Snoopy comes to the rescue and gives him a lift on the back of his motorcycle.
If you want something to get done, then it is best to do it yourself. It is fine to ask and accept help. Just make sure you know and trust the source.
3. Be Brave
As soon as they enter the camp, they meet some bullies. They tease the Peanuts gang. After, insults fly Linus uses his blanket and valiantly pushes the bullies back away from him and the gang by towel snapping them.
Do not be afraid of standing up for yourself or others. Sometimes, you cannot just walk away from a fight or bullies. You may have to stand your ground. You can’t always turn and run away or hide. You have to say no more and stand your ground. When the going gets rough, you do not walk away, you stand your ground and plant your feet.
4. Democracy
Power without the confidence of a nation is nothing. – Catherine the Great
The girls – Peppermint Patty, Lucy, Sally, and Marcie – must decide who will sleep on what bunk at camp. They take the democratic approach and vote on it. It is Marcie’s responsibility to prepare the secret ballot and count the votes. This allows for all parties to have their say without being intimidated or influenced.
I learned that this method can be great for ending disagreements. One person prepares to pass out the voting materials and other counts the votes. I personally use a pro and con list myself when I want to make certain decisions more pragmatically. There is much more you can get done diplomatically than by force. When you have the will and confidence of the people, then you can lead more effectively.
5. Caring
When the girls finally settle in at night they realize there is no one there to tuck them in and wish them sweet dreams. That’s when Snoopy comes and kisses them all good night. This makes the girls feel good.
Sharing is caring. That is how we make friends. Caring makes all the difference in the world.
6.Love and Friendship
Marcie has a hard time participating in the sporting events at camp. In particular, potato sack racing. Instead of leaving her behind and focusing only on herself, Peppermint Patty stops each time and offers words of encouragement.
This shows me that not everything is about winning. Sometimes lending a helping hand is more important. Listening is a great skill to have. You can use it to your advantage in life.
7. Sympathy
The boys and girls both are targets of the bullies at camp. They are ruthless cheaters. They are always chanting “We’re number one,” and rubbing their wins in everyone’s face much to the chagrin of the whole camp.
You definitely get the sense that the campers are pretty distressed by all of this. Even though the bullies are cheating, they still keep fighting on. There is no need to wallow in despair when bad things happen. Keep pressing on. And hope good things for others.
8. Compassion
The boys and girls both get the air taken out of their rafts. The boys worked so hard the first time around blowing air into their floating tubes that you cannot help but have compassion for them when they have to do it all over again. The girls have to get out the air pump and were very displeased, but it did not stop them from competing in the river race.
In life, things are going to happen. You can have compassion for others. And if you can, try and help them out.
9. Put up a good fight
The bullies are constantly cheating throughout the race. This does not stop the Peanuts gang from putting forth their best efforts during the race. Their trials and tribulations only make them work harder and not give up.
If I have to go down, much like Atreyu said in The Neverending Story, I’m going down fighting. Do not give up so easily. What separates the winners from the losers is going on, one more second than your opponent.
10. Fight Back
The boys find a cabin in the woods and settle for the night. Then the girls come along and kick the boys out to sleep outside in the cold. When morning comes they girls expect hot, ready-made breakfast and ask, “Where’s the chow?” Peppermint Patty gets upset when its cold cereal. Charlie Brown snaps back, “If you don’t like, then you don’t have to eat it.” She then backs down, sits, and eats.
It’s okay to challenge people. Especially, those that like to boss people around. Again, choose your battles. Sometimes, they are worth having or speaking up for.
Do the right thing
At one point in the movies, Snoopy gets separated from his friend Woodstock. What a friend. Instead of going on without him, he stops racing, takes out a pack back and stick and goes looking for him. This part of the film just warms your heart. When the rest of the gang meets up later, after being concerned for one another’s safety; they all rejoice in seeing one another knowing that they all are unharmed.
If something bothers you, then trust your instincts. Act on it. Do not disregard your feelings. If others do, then say something. If they do not accept you for who you are, then let them find and be with someone different. You know who your friends are because they will show they care. Love is a verb and it requires action. A friend in need is a friend indeed.
Working Together
The bullies once again mess with the Peanut gangs rafts and basically destroy them. So, they all band together by putting on their life jackets, making a chain, and swimming out to get the raft. Charlie Brown misses and then Peppermint Patty goes swimming after it and gets the raft.
Unlike the title of the Buffy the Vampire Slayer season 4 episode entitled, The I in Team; there is no I in Team. You can get much better results and yield higher returns when you work as a group instead of alone. Banding together in hard times could mean the difference between survival and starvation.
13. Don’t give in to surrender
The Peanuts gang could have easily accepted defeat after all they went through. Instead, they paddled on. They saw victory in their sight and went for it full steam ahead.
You cannot just say I can’t take anymore. You have to fight on. The champ is the one that can throw one more punch. In life, it’s not how many times you get knocked down or pushed around. It’s about how many times you get back up.
Appreciation
The boys take charge in leading the raft when the race is nearly over. On more than one occasion, they expected Charlie Brown to lead or save them. Instead of saying thanks, they generally mocked or criticized him when things went wrong, even when he tried his best.
There is a time and place for criticism. You should criticize softly and praise loudly. At the very least, say thank you.
15. Cheating
The bullies cheat by changing signs, destroying personal property, and playing dirty. In the end, the expensive and fancy speed boat they use with all the gadgets – sonar, radar, the works- instead of paddles or sails like the rest of the racers, sinks.
Cheaters never prosper. These boys got what was coming to them. They did not even handle their boat with care. In the end, the expensive boat sank and was rendered utterly useless. And you know what, most expensive things are.
Enough is Enough
Deciding the rest of the racers should not finish if they can’t, the bullies try to again sabotage them before making it to the finish line. Even though they are out the race and will lose, it is not enough for them; therefore, everyone else must lose too. However, when Snoopy’s pal Woodstock is crossing their path, instead of letting the bullies cat take him out, Snoopy knocks him in the water and defends his friend. Thereby, this action was effective in ensuring Woodstock’s safe passage to cross the finish line.
You just have to stand up for yourself. You cannot just let people walk all over you. Otherwise, they will do it for the rest of your life.
17. Diplomacy
At one point, the boys end up in trouble. The girls have to decide whether or not to help them. Again, they use the secret ballot method to make a decision to help them out. Even though, helping them was just common sense and the right thing. Resulting in Charlie Brown replying to the girls, “how big of you.”
A recurring theme in the film is about using democracy to solve problems. Everyone gets a say by casting a vote. No hard feelings as you get your say. Your voice and input are counted. So, don’t say nothing because that is a vote that will cost you in the end to having no say in what goes on.
18. No more Mr. Nice Guy
After the race is over, and the bullies are no longer number one, the start spouting off about returning to number one next year. The winner of the race walks by with his trophy. The bullies’ cat gears up to hit the winner and Snoopy roughs him up again.
Sometimes you just can’t take it anymore. You get fed up. Everyone has a threshold. Once you reach, then that’s it. You won’t be anyone’s doormat anymore. If you test people again, they are likely to come back just as strong as or stronger than before.
19. Don’t be a sore loser
The bullies seem to take defeat not too kindly. They lost. Get over it.
If you can be an incredible winner, then also be an incredible loser. Be gracious on the way up, while you are up, and on the way down. You never know who you may run into again on the way back down.
20. You reap the fruits of your labor or whatever you sow.
At the end of the film, the bullies reaped what they sowed. They lost. They were no longer numero uno. They could no longer call themselves, as Nigel Uno did in Codename: Kids Next Door, number one. In the illustrious words of the bullies in the film, “ha-ha.”
You must work for what you want. You can’t just get by on your good looks or live off someone else. The lazy people actually work the hardest. If you do not work in the Fall, there will be no harvest in the Spring. You have to work for your keep. You can’t build lasting wealth if you’re not willing to work.
Basically, I learned a lot from this film years ago as a kid. So, I just want to say, “Thanks Charlie Brown, for racing for your life!”
I am a child but I have to think and act like a woman, this business forces you to. – Rihanna
First name is Robyn, Last name is Fenty, but you know her simply by one name: Rihanna.
WHERE IT ALL BEGAN
Robyn Rihanna Fenty was born on February 20, 1988 and raised in Bridgetown, Barbados. At an early age, she had an interest in music and choose to leave high school (as many artists have done) to pursue a music career.
Although, she started out in a musical trio, Rihanna went on to land a solo audition with record producer Evan Rogers and recorded a demo to send to record labels.
As you can see, she chooses a career at a young age and pursued it. College is not the only path to success. If you want something in this life, then go after it and go get it. Do not let lack of money, resources, or connections stop you from living your dreams. If it is important to you, then you will find a way. I wanted to be a writer, so I write. Rihanna wanted to sing, so she did. And Rihanna did not let anything stop her in the way of her dreams.
She moved from Barbados to the United States to record her first album. Rihanna’s debut single, “Pon de Replay” was released for summer in May 2005 and became a worldwide hit.
Her first album Music of the Sun was released in August of 2005 was the start of her non-stop charting success and would eventually go on to sell two million copies worldwide.
CHART TOPPER AND BREAKTHROUGH ALBUM
Rihanna’s breakthrough album would be her third, Good Girl Gone Bad in 2007. Her new image and sound would become what she is known by today. Her lead single, “Umbrella,” became an international chart topper and would end up selling 8 million copies. She then headlined a tour and was nominated for and won her first Grammy in 2008 for the song. This album not only went platinum, but was the start of the superstar’s international powerhouse takeover of the music world.
Over the next decade, she would perform, record, tour, and work almost non-stop.
Rihanna’s fifth studio album, Loud, would go on more charting topping success for the artist with the songs “What’s my name?”, and “Only girl (In the World),” that would eventually lead to a world tour. Loud Tour would become one of the highest grossing in 2011. And the album would go on to win a Grammy at the 53rd Grammy Awards.
She followed this up with her sixth studio album, Talk that Talk, released in 2011 and her seventh studio album, Unapologetic, was released in 2012 with the lead single “Diamonds.” Rihanna picked up her sixth Grammy Award in 2013 and headlined the Diamonds World Tour, her fifth headline tour.
One of my favorite songs and performances of Rihanna’s is “Diamonds” which she performed flawlessly for the Victoria’s Secret Fashion Show back in 2012.
Here is one of her most recent and memorable interviews on Ellen in 2016.
Rihanna’s infamous and often discussed Instagram account also brought up on the Ellen show. This is just a sample and you can see why it’s so talked about here. Just Rihanna hanging out with Prince Harry. Before the #RoyalWedding. Just a day in the life.
I love music, and after my first experience with movies, I can’t wait to do more. – Rihanna
She started doing more acting work as well with roles in television and film such as Bates Motel and Battleship. She also inked a $25-million-dollar contract with Samsung adding to her impressive list of endorsements (some seven-figures) over the years – Christian Dior, Puma, Gucci, MAC Cosmetics and Covergirl – making her one of the most bankable celebrities on the planet. She has also landed on the covers of magazines worldwide such as Maxim, FHM, Rolling Stone, Vogue, Vanity Fair and GQ.
FORTUNE WELL-EARNED AND NETWORTH
Rihanna has a net worth of a reported $245 million dollars. She is recognized as a pop culture phenomenon and fashion icon. She even started her own beauty business and make-up line, Fenty Beauty and is a co-owner of the music streaming service, Tidal. She also has her own charity foundation and has helped raise millions for charity including cancer research. Time Magazine even listed her as one of the most influential people in 2012.
No matter what Rihanna does – from acting in movies, performing live, singing, endorsing products, or starting her own business – she always keeps her style unapologetic.
Just FYI: Rihanna has received 9 Grammys and sold over 100 million singles and albums worldwide.
Want to finance an exotic car? No sweat. It will only cost you $157,944.33.
That amount is based on a Porsche that costs $144,750 with loan terms of 144 months, with a 3.3% interest rate, and $14,475 down payment.
Yes, you read that right. Financing for 144 months is the equivalent of 12 years! Just ridiculous.
Especially, considering that a car depreciates in value the minute you take it off the lot.
For example, a $100k BMW 6 Series after five years will likely only be worth $40,000 in resale value. Therefore, over that time period you have paid over $70k. You would still owe approximately the same amount as the current resale value and it would be worth even less in a few more years.
What made me look into this was listening to talk on a radio show I heard about being able to finance a $100k Porsche over 8 years. I was like that can’t be real. Oh, but it is. The people on the radio said that people were doing it and taking out these loans. I was like that’s insane. You can buy houses in different countries all over the world or in certain parts of the United States for that.
If you are so set on having an exotic vehicle, then I think the best course of action is paying cash in the form of a cashier’s check. If you have to finance a $100k car, then that sounds like a red flag that you can’t afford it. Instead of spending $100k on a car, why not invest it? Over a period of 12 years with a 7% ROI you could have $272,641 in your 401(k). Even without investing another dime, you could be a millionaire in about 20 years. Is that car worth a million dollars? I don’t think so.
Who are these people that want to finance a $100k car? The only one I have ever seen was on a Canadian television show called Til Debt Do Us Part hosted by finance writer Gail Vaz-Oxlade. In one episode, a married couple had accumulated a significant amount of debt, but what made this episode stand out was the fact that the wife wanted a very fancy car and was thinking of financing over $100k to get it. Mind you, the couple had kids and debt, so where was this money coming from?
Here is a sample of how the show went on to explain to viewers how people are spending and where the money comes from: credit. If you want to order Gail Vaz-Oxlade or other financial books, then look to the side or go to the top of my blog page and click the Amazon banner link.
Who are these companies that are likely to finance these amounts? BMW Financial, Audi Financial, Porsche Financial, and the like. See the screen shot.
And not only do these companies allow you to finance, but expect a down payment on cars with six-figure price tags.
I have had my car for more than a decade. Actually, it has been 15 years. My car has been very reliable. Once I paid it off I decided I did not want another car note. That was almost 10 years ago. Here is a snapshot below of my last payment. It may become my screensaver.
I have been able to do so much without having that payment hanging over my head. I decided to start paying off my credit card debt, invest more, get Lasik, join a gym, and get another degree. Basically, I invested in myself. I do not regret not purchasing a new car for one second.
Here is my take on it. Why stretch yourself financially, for a car you desire? Ask yourself if you would still be willing to do that, if the most popular car in the world among the money elite was a Honda? Financially savvy folks know that a fancy set of wheels is pricey in more ways than one.
I was told that a rapper was discussing online about owning a Bugatti or some other luxury vehicle that has three radiators. If one goes down, it costs $90k to replace. Gulp! That’s a hard pill or repair bill to swallow.
I heard an NBA player say that he knew people that would buy Bentley’s, but then would stop driving them because they were not meant for everyday driving. The wear and tear was ridiculous. Owners were shelling out tens of thousands of dollars on maintenance. Don’t believe me. I read an article by Forbes about unreliable luxury cars. Apparently, I am not the only one who has noticed that every luxury car that glitters isn’t gold, but merely sold to those willing to fork over their hard earned cash.
That means you basically are driving a house on wheels for the amount you paid. Then after all that, still have to worry about thousands of dollars in repairs. And since this isn’t your run of the mill car, you have to go to specific repair shops. Usually, this means repeated trips to the dealership. Who has time for that?
Luxury cars seem not only to come with a high price tag, but also lots of headaches. I say this: if you can afford the monthly payments, maintenance, and can hire a mechanic or chauffeur to repair or take your car in for service at a moment’s notice, then you can get the car. If not, you’re better off sticking to something you can take to Jiffy Lube.
“What’s keeping you from being rich? In most cases, it’s simply a lack of belief. In order to become rich, you must believe you can do it, and you must take the actions necessary to achieve your goal.” —Suze Orman
Sure, there are lots of ways to get rich, but they all fall into one of these six categories as there are only six ways to actually get rich.
The six ways to get rich are:
Capitalize on a unique skill or talent.
Marry rich.
Inherit money.
Own a business.
Take calculated risks and get lucky.
Spend less than you earn and invest wisely.
Let’s explore each category.
CAPITALIZE ON TALENT
Don’t make money your goal. Instead, pursue the things you love doing and then do them so well that people can’t take their eyes off of you.” ― Maya Angelou.
Become an expert in one area or niche and exploit it. Dominate that field. And never stop growing.
If you read my post on Beyoncé, you will notice that she started young, developed her craft, and expanded her expertise. She not only sings, but dances, endorses products, started businesses, and writes songs. She owns what she does. Everything from trademarks – Blue Ivy and Ivy Park – to owning a music streaming service. Put it simply, she dominates in her field.
If you want to be the next J.K. Rowling or Stephen King, then you just have to start writing. J.K. Rowling famously said she was rejected at least 12 times before anyone would publish Harry Potter. Persistence and determination are vitally important if you want to succeed. And just FYI, it took her 7 years to write Harry Potter.
MARRY RICH
“Don’t you know that a man being rich is like a girl being pretty? You wouldn’t marry a girl just because she’s pretty, but my goodness, doesn’t it help?”
―Marilyn Monroe as Lorelei Lee in Gentlemen Prefer Blondes (1953)
Dating is all about introductions and proximity. It doesn’t matter if you swipe right on Tinder or meet at your family’s country club, you just have to get some face time. You can’t date who you can’t see or touch.
In my experience, men date and marry women who are in their vicinity or social circle. Therefore, if you are looking for a rich man, then you have to be where they are i.e., charity events, sports games, auction houses, doctoral seminars, or the like.
In addition, if you know where wealthy men tend to reside, then hey you can pack up and find a job there and frequent their haunts. Location, location, location baby.
People also tend to look for partners that are successful in their own right. You don’t necessarily have to be rich, but having some sort of talent or career outside of just being a wealthy mate’s plus one bodes well for you and your prospects of landing and keeping a partner. So, invest in yourself – get educated, cultured, learn opera, play piano, paint or learn another language – either way you have a skill.
Above all else, respect yourself. Have your own life, career, friends, family, and money. No one wants a loner that can barely make rent, they want someone who is open to people, new experiences, and can pick up the check.
Don’t agree. Well, how’s this for food for thought; Chrissy Teigen once responded to a mean tweet by telling someone she does not just spend someone else’s money, but in two words replied: “my money.” She also went on to note her Forbes ranking and that she is a best-selling cookbook author. She basically told people to chew on that – no pun intended. A very nice retort on her part and her equivalent of put that in your pipe and smoke it.
You have to admit it sure sounds better when you can list your own accomplishments. Respect for self is attractive and shows confidence. And confidence is key.
INHERIT MONEY
I would rather make my name than inherit it. – William Makepeace Thackeray
Studies into the wealth of households have shown that most wealth today is now earned than inherited. In my experience, people truly appreciate and cherish that which they work and sweat for.
For example, when I was given gifts of money or other items I am usually losing or unable to tell you whom gave me the gift. The car in my driveway that I worked so hard for is still there 15 years later.
There are those that inherit their fortunes, but the saying goes that a fool and his money are soon parted. I suggest you get a career, get educated, and learn a craft to earn your own living. If you do inherit, then you can manage your money instead of squandering it.
OWN A BUSINESS
Only I can change my life. No one can do it for me. – Carol Burnett
Starting a business is what two-thirds of millionaires do. This lets you know that if you are successful and become rich, then most likely you will or do own a business at some point in your life.
I suggest determining what you are good at and then turning that into a business. Passion is great, but just because you are passionate about golf and want to be a pro golfer does not mean that is what you are good at or meant to do.
Also study up and get a mentor or work with people in the field you want to be in. Read books, attend seminars and save money. All businesses need capitol. If you can find a business to start with a low barrier to entry such as a food truck or blogging, then the better.
BIG RISKS FOR BIG REWARDS
“If you want big rewards, you gotta take big risks.” Jessica Biel as Tenley Parrish in Summer Catch (2001)
If you read my post, wealth comes from doing not luck, then you understand that from preparedness comes opportunity and hard work creates luck and success.
It is okay to take risks, but I prefer calculated ones. The ones where you do your research, study your results, learn from you’re mistakes or the ones of others and keep moving forward. Make that pro con list, watch videos, attend conferences or better yet, speak to those that have done or are doing what you long to do. If you’re going to risk it all, then best to know all the facts first.
SPEND LESS, SAVE AND INVEST OVER TIME
The formula for getting rich is this: spend < money earned
Simply put, spend less than you earn.
If you can do that, you have got a shot at getting rich.
For example, you can be a millionaire over time if you do the following:
Save $6,000 a month for 10 years getting a 6% return
Save $2,200 a month for 20 years getting a 6% return
Save $800 a month for 25 years getting an 8% return
Save $600 a month for 30 years getting an 8% return
Save $500 a month for 40 years getting a 6% return
The combinations can vary based on the amount of savings invested and the return on investment of compound interest. However, the bottom line is saving can earn you a fortune.
For those concerned with inflation, here is an inflation-adjusted. 25-year wealth accumulation chart.
Source: www.businessinsider.com
THE BOTTOM LINE
Ultimately, no matter what path you take if you partake in spending less than you earn and investing, over time you will become rich eventually.
“I never took lessons to learn how to play the drums, and I never took lessons to learn how to play guitar, l just sort of figured it out. I think that if you’re passionate about something and you’re driven and focused, that you can pretty much do anything that you want to do in life.” – Dave Grohl
I am a firm believer in being passionate about what you do. If you’re going to do it for a living, then you may as well enjoy it. That’s how I feel about finances. I can’t stop talking about it. So, I write about it.
It’s funny because growing up I always felt I wanted to be a writer. From the time I was in the 5th grade I knew writing stories made me happy. It just so happened I was able to combine my two passions and got this blog up and running.
I also try to learn from those who have turned their passion into a successful career. One person that really stood out for me in the music world was none other than one of the legendary grunge music founders: Dave Grohl.
DAVE GROHL THE BEGINNINGS
Dave Eric Grohl was born on January 14, 1969 in Warren, OH. He discovered his passion for guitar at the age of 10, started lessons at 12, and then started teaching himself at age 13. After he saw his first concert in 1982, he knew from then on that his music that he would play would be punk rock.
He went to several high schools in Virginia before finally dropping out to start playing in a rock band full-time. It was also at a concert in 1990, where Grohl met Kurt Cobain and Krist Novoselic. Little did he know these guys would be the start of his future in rock. They asked him to audition for their band. His passion, drive, and all out hardcore drumming impressed them and from there he became the new, fifth and final, drummer for the legendary band Nirvana. As one-third of the iconic Nirvana, he played with them from (1990-1994). And they played grunge music.
Grunge started around the 1980’s in Seattle. As a form of alternative rock, these bands changed the game in music. One band that stood out from the crowd was Nirvana.
NIRVANA FROM GRUNGE MUSIC TO MUSIC ROYALTY
After playing with Nirvana for a few years, they got the attention of major record labels. Nirvana was signed to Geffen Records and recorded the iconic album “Nevermind” right after. This album, in 1991, had the hit single “Smells Like Teen Spirit,” which was a huge commercial success worldwide, became the anthem for grunge music and became one the top selling singles of all time, with 8 million copies sold. It also spawned the hit single “Come as you are” in 1992. Nirvana went from grunge music to music royalty, and became international superstars.
Nirvana became so big that their music had to be cut from the 1992 Cameron Crowe film soundtrack for “Singles” after they became famous. The song and band became so popular that the movie could not afford the rights to the song as it became too expensive by the time the studio released the movie. The album “Nevermind” was recorded over the course of a year and would go on to sell over 24 million albums worldwide. The band would go on to record 102 songs and become one of the biggest recording groups of all time.
After the death of Nirvana lead singer, Kurt Cobain, the grunge music scene was left reeling as many grunge bands in Seattle broke up and from there things were never the same. That is just how much Cobain and Nirvana had influenced alternative rock. Their talent as a band forever lives on in their music.
FOO FIGHTERS
Grohl went on to form the critically acclaimed bad the Foo Fighters in Seattle, Washington in 1994. Founded by the Nirvana drummer as a one-man project after the dissolution of Nirvana. Although, he was asked to join other bands, including Tom Petty and the Heartbreakers, he turned them down to pursue his own vision and dreams.
According to an article in Rolling Stone magazine, devastated by the death of Cobain, he went to Ireland and was just in a daze driving around until he saw someone walking down the street wearing a Cobain T-shirt. From there he decided to go back to work. He then recorded a 15-track demo. This would become the Foo Fighters first album.
The band’s debut album “Foo Fighters” was in 1995 and they are still going strong today. In the band’s twenty plus year long career they have won four Grammys, recorded nine albums and sold over 12 million albums in the United States alone.
ADVICE FROM A ROCKSTAR
When Nirvana became popular, you could very easily slip and get lost during that storm. I fortunately had really heavy anchors – old friends, family. – Dave Grohl
No excess needed. Grohl has said he does not believe in rock-star excess. When Nirvana made it big and got popular he was renting a house with a friend. He had a lamp, futon, and a dresser. When the band sold over ten million records later, he still was in the same spot with the same lamp, futon, and dresser. He said he didn’t have much growing up, but does not remember ever needing anything. Grohl says, how much do you need?
When asked about what he does with his money, this is what Dave Grohl replied:
“It goes straight into my bank account, where it turns all moldy and smelly… I don’t waste my time thinking about how I could make more when I already got enough. I’m not a banker, I’m a musician.”
Nirvana (Cobain, Novoselic, and Grohl) would eventually be forever remembered by receiving one of the highest honors in music as they were inducted into the Rock and Roll Hall of Fame on April 10, 2014. The band has sold over 75 million albums worldwide. They are considered one of the greatest rock bands of all time.
Why Dave Grohl puts every paycheck directly in the bank and drives a 'family car' https://t.co/D2cAic9JwD
More than one path to success. Coming from money and pursuing higher education are not the only ways to succeed. In an interview, Grohl stated “I never graduated school and I never had enough money for college.” He worked blue collar jobs and played music on the side. Now he’s in the Rock and Roll Hall of Fame. Grohl says, “I want everyone to imagine that same opportunity is possible.”
Be true to yourself. Grohl’s advice to others after all his success is simple and honest which is just to be yourself as it has worked for him for the last 20 years. Grohl feels he is an earnest and nerdy guy, but it works. His mother has described him as driven and determined with money never really being part of their conversation as he just wanted to work.
When he writes music, he wants a story behind it. He wants something that is relevant. And having sold over 100 million albums in two different bands it shows that it works. His mother says she believes people listen to his music because he is sincere. Basically, he could be the Phil Collins of alternative rock. As Phil Collins, is one of the only artists (there are only three) to ever sell 100 million albums as a solo artist and with a band.
He once even broke his leg during a concert, went to the hospital, and was back on stage within two hours playing guitar. That’s just how much passion he has for what he does.
I love to play music. So why endanger that with something like drugs? – Dave Grohl
Grohl says, “It’s important to me – that the stories that inspired me can inspire other people. I don’t feel like I’m on a mission. But I have the opportunity and the resources.” I take this advice to heart and I just try to be myself, do what interests and excites me, and just live my life. If it doesn’t excite me, then I probably won’t do it. Life is too short for mediocrity.
And just in case you were wondering, Nirvana went on to receive seven Grammy award nominations; winning one. The Foo Fighters have been nominated for 16 Grammys.
Grohl, the man behind the drums in Nirvana, and the lead guitarist in Foo Fighters, has received 15 Grammys out of 39 nominations. He continues to tour with the Foo Fighters and has amassed a fortune of $280 million dollars. Not bad for a high school dropout. It just goes to show; never give up on your dreams.
