“A simple fact that is hard to learn is that the time to save money is when you have some.” —Joe Moore
Saving money is the cornerstone to building wealth.
Granted you have to have some to actually save some of it.
Regardless, the time to save is when you have it.
An ever better way to save money is to avoid doling it out in the first place. If you can slash or cut out expenses entirely, you can accumulate more wealth faster.
Buying a home is one of the reasons why people save money because buying one is expensive.
Every dollar that you do not have to send out ultimately stays in your wallet.
A great way to save on money you spend on your home is to eliminate the cost of mortgage insurance, which is known as PMI.
What Is PMI?
Private mortgage insurance is something lenders use to protect their investment in your home. Until you own it or have put down a reasonable down payment, the bank wants to protect its property by making you pay insurance on it.
Most lenders require PMI if a homebuyer does not make a down payment of 20% of the home’s purchase price – or, in mortgage-speak, the mortgage’s loan-to-value (LTV). This LTV ratio is in excess of 80% (the higher the LTV ratio, the higher the risk profile of the mortgage).
Meaning if you owe anywhere above 80% of the home’s value, then you are considered risky and are a candidate for PMI.
For example, if you purchase a home for $250,000 and are unable to put down 20% ($250,000 x .20 = $50,000); thereby, owing more than $200,000 to the bank, then you would need PMI.
And unlike most types of insurance such as automotive or renter’s, the policy protects the lender’s investment in the home, not yours.
However, PMI makes it possible for people to become homeowners sooner because they can put down less than 20% such as 5% and still purchase a home.
FROM RENTER TO HOMEOWNER
PMI allows borrowers to obtain financing if they can only afford (or prefer) to put down just 5% to 19.99% of the residence’s cost, but this ca be costly.
The home will now come with an additional monthly cost.
Borrowers have to pay their PMI until they have accumulated enough equity in the home that the lender no longer considers them high-risk.
Homebuyers who put down less than 20% of the sale price will have to pay PMI until the total equity of the home reaches 20%.
This means you have to pay 20% of your home’s value or have enough equity to build to that amount before PMI is no longer required. This can take years.
And your heirs also get nothing out of this.
Unlike most insurance policies, all proceeds go to the bank. The heirs get nada, zip, zero, nothing.
The lending institution is the beneficiary. PMI only helps the mortgage lender.
It is also not cancelled automatically.
You have to draft a letter to the lender explaining that the LTV of the home is now 80% or less. This usually requires getting an appraisal done. This could take months!
Or the other hand, if you wait until it automatically cancels, you would have to hit 22% equity. That is a full 2% higher than the 20% that is mandatory!
Meaning you essentially paid 2% more or $5,000 that was not even required!
Some lenders even request that you pay for a certain time period. So, if your home goes up in value and just absolutely skyrockets, you could zoom past the 20% minimum needed, but still be on the hook to pay.
How fair is that?
It’s like that scene out of Wedding Crashers, “I earned those miles.”
Now let’s talk the cost of PMI.
HOW MUCH IS PMI?
PMI acts just like the Red Hot Chili Pepper’s song Give it Away, in that you are giving this money away to insurance companies and that’s it.
This means if you purchase a home for $250,000 and owe 1% annually for PMI, you will have to fork over $2500 per year. This equates to $208 monthly!
The more house you buy, the more the cost goes up.
If it takes 5 years to build up enough equity in the home to stop paying PMI on a $250k mortgage, that would mean paying $208 x 60 (months) = $12,480! And that money is burnt. You cannot get it back.
Did I also mention that as of 2018, PMI is no longer tax deductible?
That’s right. Insurance is just in case. And in this case, that is like throwing out two hundred dollar bills out your car window once a month!
So, you have to find a way to roll up those windows and plug that money leak.
HOW YOU CAN SAVE $10,000 BY AVOIDING PMI
You have to find a way to keep your money in your pocket and not the insurance companies.
Better yet, find a way to not only keep it, but make money with it.
Putting that $208 into stocks over the course of 10 years could net a return of over $37,000 with an 8% return!
If you can avoid PMI all together, you could save yourself over $10k!
For example, let’s say you have to pay $250 per months for 4 years, that is $250 x 48 (months) = $12,000.
In order to save $10,000, you would need to eliminate paying $208.33 a month for 4 years, that is $208.33 x 48 (months) = $10,000!
HOW TO AVOID PAYING PMI
There are a few ways to avoid paying PMI and they are the following:
Put down a 20% down payment.
Lender paid mortgage insurance (LMPI) where the cost of the PMI is included in the mortgage interest rate for the life of the loan.
Get a piggyback mortgage where a second mortgage or home equity loan is taken out at the same time as the first mortgage.
Find a lender willing to forgo PMI.
The last one is a little tricky.
There are not many places I could find that allowed this. However, there are some financial institutions that will offer a 100% conventional mortgage without PMI. You will just need to do an online search in your state.
So, there you have it.
I have showed you several ways to avoid PMI.
Now, I have saved you $10,000!
What is my fee for this service?
Only for you to share this with someone else. And by doing so, help them save $10,000 as well.
She then takes a bow and says thank you for taking the time to read this post. I’ll be here all week!
“To hell with circumstances; I create opportunities.” – Bruce Lee
When I read headlines and reports talking about how 75% of Americans are living paycheck-to-paycheck, or 30% do not have enough to cover a $400 emergency, I get concerned.
Especially, when credit card debt is reaching record highs and as of the writing of this article, credit card debt in the United States stands at $1 trillion.
I do not like to see so many Americans cash strapped.
I want to see people funding their dreams, buying homes, and starting businesses.
Although, those things take time to build, it is very possible to do over time. However, it gets harder to do those things when you have debt.
I have read lots of books and articles online that gives the following advice: ask for a raise.
Easier said than done. Why not ask for a pony, while you’re at it?
They say ask and you shall receive, but this is not always the case. More and more, I hear about how jobs are downsizing or cutting expenses. That’s code for slashing wages and human capital.
These things happen all the time. It is a business decision. Like a family trying to balance their budget and manage their household finances, a business has to do the same.
I have asked for lots of things in life. And, why not? All people can do is say yes or no. I have had to deal with rejection plenty of times. All you need is someone to say yes once. If you hear 100 no’s, then finally get to that one yes, it could possibly change your life.
I do not wait for people to hand me anything. Nobody owes me nothing. I work for what I want. I have learned to create my own opportunities. And you can do the same. Just work with what you’ve got.
Wages have been stagnant and quite frankly flat. It is becoming more difficult to move up an income bracket. While you’re trying to climb that economic ladder, it may not always come with a corner office, higher pay, and bonuses.
Truth be told, a raise may not do but so much for your finances. After taxes, you bring home less than the actual raise. And what’s even worse, is that many people do lifestyle inflation, where they slowly increase their spending due to lifestyle creep from making more money.
Burning through large amounts of cash is not good for your wallet. If you want deeper pockets, you have to make some changes to your behavior.
In order to give yourself a yearly raise of $6,000 ($500 per month), you would need to grow your income by $250 and cut your expenses by $250 or some combination of both, if not one or the other.
Here are some ways to give yourself a raise that don’t require you to quit or get promoted.
SLASH EXPENSES
Cutting expenses is like giving yourself a tax-free raise. Every penny you save stays with you.
You need to find creative ways to spend less. When you reduce the outflow you can increase your cash inflow and cushion.
Most people, I have noticed, that get into trouble with their finances tend to be the ones who have high fixed expenses.
Keep your expenses as low as possible. Then you do not have to worry so much about or even depend on getting a raise, bonus, promotion, inheritance, or any type of financial windfall.
For example, I decided to quit going to restaurants for about 2 months. My average bill would be about $30. If I give a tip 10-20% every check, that means paying $3-$6 every time. Eating out just 4 times per month, meant paying $12-$24 or $25-$50 over 2 months alone! That is $300-$600 a year.
That does not include the cost of food. The $2 delivery fee, the extra container of rice, or springing for the extra tuna roll.
Don’t even get me started on going out in groups to places that just so conveniently can’t split the check. You usually end up paying more than your fair share to say the least. Basically, you are subsidizing someone else’s alcoholism.
I now call the restaurant ahead and ask if they do check splitting. If not, I try to just order at the bar.
You are the controller or should we say comptroller of your destiny.
GO TO COLLEGE
Increasing your knowledge is usually a great way to earn more money. Although, education is not an equalizer (some may profit more from going to the Ivy League than others), you can still qualify for more prestigious jobs with a little more book smarts.
You can job hop your way to a higher salary. Even I have done this. I have noticed I have gotten a raise or promotion by applying for another job as opposed to asking for one. But that’s another story.
However, I do not recommend going into a ton of debt to do it. I suggest you find ways to go to school affordably such as monthly payment plans to pay-as-you-go, going online (which is cheaper that traditional brick and mortar), or seeing if an employer will offer tuition benefits.
If your employer pays, $1,500 a semester and you go for 2 semesters a year, that is an annual savings of $3,000.
LEARN A TRADE
Go to any barber shop or hair salon on a Saturday morning and take note how many people are there.
Having a skill can earn you some serious bread.
If I have to pay the plumber or electrician one more copay, I may start looking up how to fix the plumbing myself on YouTube.
By this point in my life, I am sure I have paid enough to hairstylists, washer repairmen and manicurists to put at least one kid through college or at least pay for a semester. That’s no joke.
If you have any type of skill or hobby that you can monetize, do it.
I read online that a woman who dresses in costume and does displays is making six-figures. You read that right. Putting on a wig and some tights is allowing her to pay the mortgage and save for retirement.
Think walking those dogs are beneath you. Think again. You can earn $40 bucks a day. Just doing this on the weekends could net you $80 x 4 = $320 a month. Pass me the leash.
OPEN A ROTH IRA
A Roth IRA has no upfront tax benefits, but the savings gain down the line is second to none. All the investment gains will not be subject to taxation in retirement.
Since, the money in this account is funded with after-tax dollars, you will be able to enjoy this account without having to pay the man. Sign me up please!
So when your peers are paying taxes on their 401(k) withdrawals, you could be going to the ATM getting out that $600 max withdrawal without paying Uncle Sam for the convenience.
PAY DOWN YOUR DEBTS
Paying off high interest or anything charging you interest such as personal and auto loans, credit cards and student loans is money in the bank.
Every dollar you do not give the local banker stays in your bank account.
If you pay $200 monthly to service your credit card debt, getting rid of this money drain means having an extra $2,400 a year back in your pocket. That can be put in your Roth IRA and then you are working towards turning every dollar into two.
LIVE ON CASH
It is hard to part with cold, hard cash. Swiping is easy. Work on handing every person you meet the money to pay for expenses, even to buy a postage stamp, and you will start to feel the sensation of giving away a small fortune.
SET UP AUTOMATIC PAYMENTS
The late fees from not paying on time are astronomical. A one-time missed payment on a credit card is regular $30 or more. Miss a payment on 3 credit cards in one month and that’ll cost you $100 bucks!
Over a years’ time, that is $1,200. Just in fees. Save that money automatically into your savings account instead.
DELEGATE TIME-SUCKING TASKS
By paying a nominal fee to others, you free up precious hours to find ways to make money.
The trick is to pay for services that are not particularly pricey and expensive. You then use the hours you would have put into cooking, cleaning, or doing laundry into making money during those hours instead.
RENT OUT YOUR HOME
These days you can rent out just about anything. Over 30 million people have used Airbnb. Most rentals I have seen can charge anywhere from $100-$300 a night.
You could rent out your place and make $500 a month. Or who knows how much. Sky’s the limit here.
FORGO VICES
Forget the lottery tickets, tobacco, concert tickets, expensive shoes, and beer runs.
You could save anywhere from $40-$200 a month. That’s $480-$2,400 dollars a year.
SUMMING IT UP
There are many other ways to save or cut expenses. You just have to be willing. From just some of the examples I provide, someone could save anywhere from $100-$600 dollars a month. That is between $1,200-$7,200 a year.
If you can find a way to bring in $500 more a month, whether it is an additional income or slashing expenses, that is like giving yourself a raise of $6,000 a year!
Whenever, I hear someone say I can’t live without my weekly happy hours I say to them: can’t or won’t.
There is usually always something you can do. Break it up into small tasks, if the bigger task seems too daunting.
Just focus on getting your monthly or daily savings rate up. You can do it.
If you read my FinCon18 recap, you know I went to Universal Studios during the conference.
I had to recharge my batteries. I was just so exhausted. I needed some me time.
Therefore, I purchased tickets online to go to Universal Island of Adventure and Universal Studios: Halloween Horror Nights 2018 or #HHN28.
Buying the tickets online is a good idea for Halloween Nights as they offer a discount online.
I got one ticket to go to either park for 1 day for $115. And For Halloween Nights, I got a Flex ticket for $81.99, which allowed me to go any night Sunday – Friday.
This ended up being a good idea because I was unable to go on a specific night (as you can buy a specific date ticket for cheaper $50-60).
I had an absolute ball. It was so much fun. This is the most fun I have ever had at a theme park.
Every hour something new would happen. I walked in circles around the park all night long. I had to finally force myself to leave because it was after midnight.
This is how I was able to do everything I want at Universal on a budget and have a blast!
UNIVERSAL HERE I COME
First, I decided to wait until noon to go. I saw no reason to get there when the park opens because I knew I did not want to be there all day in the heat walking around.
After, I got dropped off by the Resort taxi, I went straight through CityWalk and when to the gate. I printed out my paper ticket, but was told I would need to get a park ticket because it was a digital ticket I had and needed to be on a device (cell phone).
I waited in line at customer service, which was oh so slow.
Finally, I got my turn and had to show photo ID. I then received both of my tickets to each park and was able to get into the park.
Park tip 1: To avoid this aggravation, simply download the ticket to your phone.
OFF TO SEE ISLAND OF ADVENTURE
I got park maps of both the Adventure Park and Halloween Nights and mapped out a plan.
I would do this park for 6 hours from noon until about 630 pm when Halloween Nights started.
At that time, I would do the other park for Halloween for about 4-5 hours as it did not close until 2 am!
First, I got on the Incredible Hulk Coaster. It was so much fun. I had to use my ticket to open the locker for the ride.
Please note, you need to have pockets or a ticket holder to keep your ticket with you while on this ride because you need it to re-open the locker.
I was also able to go in the single rider lines. Since, no one wanted to ride single these were the shortest lines. Therefore, I was able to get on every ride in both parks within 5-20 minutes!!!
Park tip 1: Go in the single rider lines. They are faster and anyone can use them. You can still end up riding with all or most of your party on the ride, but without the long wait in line.
MARVEL ISLAND
Then I walked over to Marvel Super Hero Island and got on the Spiderman 3-D ride.
While in line, I saw lots of people with lanyards and clear ticket holders around their necks.
I asked two gentlemen standing in line where they got it from. They said the front of the park, but I could buy one at stores around the park for about $10-12 bucks.
The first thing I did when I got off the ride was buy a lanyard. It cost me $10.65.
Park tip 1: Get the lanyard. You can tuck it inside your shirt while you ride. The holder keeps your tickets safe and dry from water rides.
Park tip 2: Put a credit card inside the ticket holder with your park ticket and then you can pay for food and locker rental without needing to carry your bag around the park.
Park tip 3: I asked if there was a place close by to get water and was informed that every place that offers food and drink provide free ice water. Including all the food stands or carts. Drink it! I asked like every hour for cold water.
Park tip 4: I also asked what the gentlemen were asking for when asking patrons if they could speak to them. She said it was a timeshare. They say it will be a 90 minute tour, but it turns into four hours. Stay away from these folks! It’s a high pressure sales pitch. Don’t fall for it.
On a side note: I did this before and they try to pressure you to buy all day. They ask for personal information. Don’t give it to them. They especially want your credit card or bank account number. Don’t do it!
I decided on a whim to sign up, but then looked these people up online before the tour. By sheer happenstance, I clicked on the reviews. They were horrible. So, I did what any sensible person would do. I backed out.
I called the salesperson 2 hours before my scheduled tour and said something came up. The conversation went something like this:
ME:Hello. Good morning. Something has come up and I am not able to make the tour. I’m checking out my hotel and flying home ASAP. So, you can cancel the tour. Hope you have a good day.
SALESPERSON: (sad voice) No problem…they continue to talk, but I hang up.
I then immediately blocked that number and anyone that called from that out of state area code.
My gut instinct was that they would try to contact me and I had someone call me 3 times at the time I was supposed to be picked up for the tour.
Nope. I blew them off.
I kept the conversation short (per my phone it lasted 20 seconds) and controlled the entire situation.
Do I feel bad? Absolutely not. I followed phone etiquette. If you say goodbye, have a nice day or I’m hanging up now, it’s not hanging up on anyone, right?
My motto is sometimes you just have to be aggressive. Be, be aggressive. But I digress. Let’s get back to the fun.
JURASSIC PARK
I went on my third ride: Jurassic Park River Adventure. It was not scary at all and the park is definitely family friendly as many of the rides were not thriller roller coasters, but still fun.
Then after, this ride I was tired. I took a break and got a grilled chicken salad from Captain America Diner. It cost $11.50.
Park tip 1: Take breaks after 2 or 3 rides. The sun and all the walking really wear you out.
Park tip 2: Wait at least an hour to an hour and a half to start riding again to give your food a chance to digest and body a chance to rest and recover from all the movement of the day.
The Wizarding World of Harry Potter – Hogsmeade
Next, I got on the Harry Potter ride. You can keep your stuff in the lockers they provide. You will need to place your index finger on the pad until it says remove finger and verified. Then you will be assigned a locker number.
Park tip 1: Some lockers ask you to create a six digit passcode for you to re-open your locker. Keep it simple so you remember.
This ride is decent. Great visuals. Lots of jerky movements.
The Lost Continent
I went to Poseidon’s Fury. Waited in line for a while as they grouped all riders together. The ride was okay. Again, great visuals here and atmosphere.
After riding all the roller coasters I wanted, I decided to do the water rides.
Park tip 1: I suggest you do the water rides last. The other park does not have any. And the Volcano Bay park where it is nothing but water, think inner tubes and lazy river (no rides), you have to be bused to. No thanks.
Park tip 2: If you want to get wet, either do it during the day when the suns out or bring a change of clothes. And I mean a whole change of clothes including socks and undergarments as you are going to get soaked.
Park tip 3: Bring sandals to wear on water rides. I put my sneakers in the locker and did all the water rides in sandals so I wouldn’t have to walk around the park in wet sneakers!
Toon Lagoon
The last stop in this park for me.
I got on Dudley Do-Right’s Ripshaw Falls. You get pretty wet here. My pants were soaked but my hair and shirt were not too terrible. I even found a partner to ride with here.
Next up, Popeye & Bluto’s Bilge Rat Barges. YOU GET WET. Absolutely soaked, from head to toe. They have waterfalls that just drench you. And oh yea, dryers cost $5 a cycle!
I had a blast, but it’s time to get to the real action. Halloween Nights!! Yea baby!!!
Universal Studios Florida
PARK HOURS: Universal Studios Florida: 9am – 9pm Islands of Adventure: 9am – 9pm Volcano Bay: 9am – 9pm CityWalk: Open until 2am every day
This is where the action is. Huge crowds have formed outside the park and everyone is buzzing to get inside. I walked over from Island Adventure in my wet clothes so I could take care of everything all at once while inside the park.
Once inside, I immediately make my way into the ladies and change clothes. Feeling refreshed. I go over to a locker at the front of the park, by the entrance and pay $10 for all day and unlimited access.
I also brought a thin strapped bag to wear over my clothes like a cross body that was similar to a fanny pack to walk the park hands-free. I was able put my cell phone, lip gloss, and any receipts into it.
Since, I kept my cell phone on me in this park, I texted myself the locker number that I stored all my stuff in at the front of the park to make sure I wouldn’t forget. (small productivity hack there)
Park tip 1: They will let you ride with the fanny pack as long as it’s around your waist for all the rides I went on except Harry Potter. Just FYI.
Then I was on my way. I was off to the next ride.
NEW YORK
I rode the Revenge of the Mummy. It was pretty cool. It also had a surprise drop and was super creepy inside the dark caves. It was awesome!
Park tip 1: I played no games because I did not want to carry any prizes or spend unnecessary money on souvenirs. I just kept my park maps as one.
Park tip 2: Like with the other park, I zipped inside shops and cafes. I was in and out because if you stay too long, you will spend money.
San Francisco
I got on the Fast and the Furious. Prepare to wait for this one. It gives a long tour. However, the ride makes you feel like you’re a part of the action in the movie. So it’s not too bad.
The Wizarding World of Harry Potter – Diagon Alley.
This place is straight out of Hogwarts. It is really cool. I zoomed in and out of shops because again you will spend. That quiddich outfit or wizard uniform is pricey. The school uniform tie costs $30 bucks!
As I said above, you must put all items in a locker.
Then off you go. The ride is pretty cool. After every ride, it just so happens to exit into a shop of the character attraction you just got threw riding. A coincidence? I think not. Nope, I don’t need a wand to sit in my closet at home. I’m good.
World Expo
Men in Black (MIB) Alien attack. This is pretty fun. You shoot aliens. Just shoot everything!
Now, it’s gotten dark. All of the sudden chainsaw sounds are going off and people are in monster make-up and costumes. Zombies jump out at you and you get chased by people out of dark alleys. Let the fun begin!
I am also hungry. I go to Richter’s in San Francisco and get a grilled chicken sandwich for; you guessed it, another $11.50 like my lunch salad. And a small sundae from Ben & Jerry’s for $8 dollars! I bought no drink as water was free everywhere.
I walk around and take my customary break of at least one hour before riding.
At this point, the park is in full swing. The Killer Clowns from Outer Space are walking around, people are on stilts in full costume, and lighted jack-o-lanterns are hanging from the trees.
A life size Chucky from the movie Child’s Play box is in the middle of the street and inside is Chucky! He is talking to the crowd. It was one of the most bizarre things to see, but it sure was cool. He drew the largest crowd.
— Halloween Horror Nights (@HorrorNightsORL) October 1, 2018
Every hour the park gets wilder, crazier, more fun, and crowded. It was sheer pleasure.
Sights and sounds were everywhere. In every corner, there was something going on. I just kept walking in circles to see what would happen next. They just kept adding characters and shows.
An impromptu performance on the front stage started right before midnight of dancers doing the choreography in Michael Jackson’s thriller while the song played.
I took a short video of the performance. In this short clip, you could feel the energy of the park. It was crackling. It was electric. It was live. People were laughing, joking, dancing in the streets and just having a good time.
Imagine being in this energy for 6 hours like I was. It was the most fun I have ever had at a theme park hands down. Universal does Halloween big!!
I also got my face painted. So much fun. People kept walking up to me asking for help. They thought I worked there! But I guess when you’re wearing all black and costume makeup that can happen.
LAST RIDE OF THE NIGHT: TRANSFORMERS 3-D
This was another short line and the singles line was super short.
Park tip 1: Do not waste your money on a fast pass. You can get on most rides within 20 minutes.
Park tip 2: Pay attention to the monitors throughout the park. They tell you the wait times of rides.
Transformers were my favorite ride at the park. So, I guess I saved the best for last. It was like being in the movie with them. It was just so much fun and so cool.
Do not pass this ride up as I almost did. I thought it was going to be kind of slow like the other 3-D rides, but I was wrong. This ride was more than meets the eye!
THE END OF THE NIGHT. MIDNIGHT.
I walk over to the lockers and get my stuff out. I head over to voodoo donut, but the line is wrapped around the corner so I leave and catch a cab back to the resort.
Park tip 1: There is a pick up and drop off area at the park. This includes cabs, Uber, and Lfyt. Cabs are also available all day at the park like an airport.
I get back to the hotel by about 1 am. I am fully recharged. I head up for bed. As I headed into my last day of FinCon, I felt like Rory Gilmore in the season 5 episode of Gilmore Girls, You Jump, I jump Jack, in ominous paratus, that’s Latin for “ready for all things.”
Well, that is the end of my Universal Studios adventure. Hope you had fun and thanks for coming along for the ride (pun intended).
“Think of giving not as a duty but as a privilege.” John D. Rockefeller
“I believe that it is my duty to make money and use it for the benefit of my neighbors. This is what my conscience tells me.” John D. Rockefeller
“No one is useless in this world who lightens the burdens of another.” Charles Dickens
Every now and then I read stories that just lifts my heart. Recently there have been articles of heroes saving lives and people donating to charitable causes close to their heart. It reminded me of a story I heard about many years ago, but is still very inspiring today.
This article was reported on the front page of the New York Times in 1995:
She may be gone, but her act of charity is remembered. This tweet is from 2017. Ms. McCarty passed away in 1999. Therefore, the good you do is still remembered long after you are gone.
Oseola McCarty, a Washerwoman Who Gave All She Had to Help Others, Dies at 91 https://t.co/M8tYhMnUaw
Her name was Oseola McCarty. And here is her story.
MEET OSEOLA MCCARTY
Oseola McCarty was born on March 7, 1908 in Mississippi. As a young child, she had to quit school in order to tend to a sick family member. Quitting school in the sixth grade, she went straight to work as a laundress like her grandmother before her. She would go on to do this for about 75 years. Leaving school was one of her biggest regrets. She wanted to go back, but all the kids in her class had moved on ahead and so she didn’t go back because she wanted to be with her class. She decided to just keep working.
HOW SHE SAVED $150,000
She was never idle. She was working since she was a young child until she retired in 1994. She worked for many years and just put almost every dollar she made into the bank. She learned to save from her mother and kept the habit for life.
The following is what she did over 70 years:
She took one short vacation to Niagara Falls
She did not travel
She did not fly on planes
She did not stay in hotels
She never owned a car (she walked everywhere)
All her immediate family passed away and she never married or had children
She had lived alone since 1967
She lived in a family home her uncle gave her in 1947 for the rest of her life
Money she received from the passing of her mother and aunt went into savings
She spent almost nothing and lived very frugally
Repaired instead of replaced items for brand new ones
Covered her old bible in Scotch tape to keep Corinthians from falling out
Cut wholes in her shoes if they did not fit
Bought her first air-conditioner in 1992 and only uses it when company comes over
Owns one tiny black and white television (that only gets one channel) but she rarely watches
She did not retire until she was around 85 years old
Keeps her utility bills low
Never subscribed to a newspaper because it cost too much (an extravagance)
She would pay her bills and deposit the rest of her money (even coins) into savings
Over time this grew into $280,000
How she donated her life savings
One day she decided she would gift her money to a local university. Not as a bequest, but immediately as she wanted to be alive to see a recipient graduate from college as he one wish. In July 1995, she would go on to start a scholarship fund to help finance college tuition for students, preferably of African-American descent, who would be unable to attend college due to financial hardship. at the University of Mississippi. When asked why she chose that school, she simply said, because it was close.
A banker at one of her financial institutions assisted her. In 1995, he wanted to help an 87-year-old Ms. McCarty, but was unsure how to assist a woman with a fifth-grade education through estate planning. He came up with the novel idea of giving her 10 dimes, each representing 10 percent of her assets. He gave her five slips of paper to write down the names of the beneficiaries and divide up the coins. She deposited one dime to her church, one for each of her cousins and the last six for a scholarship fund, after setting aside enough money to live on.
She signed an irrevocable living trust and the bank managed her funds while she received a regular check for her living expenses.
WHY SHE DONATED
She decided to give because she knew the importance of education. She had struggled all her life doing manual labor (scrubbing laundry by hand on a scrub board). She did not want that for the younger generation coming up so she gifted them money to help them not have to do what she did and get a degree she was never able to get herself.
Oseola McCarty (1908-1999), an 88 yr old woman set up a $100k scholarship fund on an income of $10 an hr washing clothes.
The news hit the media and overnight she went from obscurity to a celebrity. She wanted no monuments or other recognition’s of her selflessness, but they came to her.
Once word spread of what she had done, it spread far and fast. Accolades and recognition for her act of charity in anticipation of her death was almost immediate. Goodness and kindness tend to spread. There was a chain reaction to her charitable action that had people wanting to reciprocate what she had done by also donating. This is what happened over four years:
She was honored by the United Nations
She received more than 300 awards
Contributions poured in from other donations adding almost $330,000 to her gift
Ted Turner donated a billion dollars to charity after hearing her act of philanthropy
She received the Presidential Citizen’s Medal, the nation’s second-highest civilian award
She received an honorary doctorate from Harvard University
She carried the Olympic torch through part of Mississippi in 1996
In December 1996, hers was the hand on the switch that dropped the ball in Times Square in New York’s New Year’s Eve celebration (also the first time she stayed up past midnight, rode an airplane, and stayed in a hotel)
McCarty received the Award for Greatest Public Service Benefiting the Disadvantaged, an award given out annually by Jefferson Awards
She was awarded an honorary degree from USM, the first such degree awarded by the university in 1998
McCarty was also recognized with an Essence Award and Patti LaBelle sang tribute to her during the ceremony at Madison Square Garden in New York.
Ms. McCarty gave out pearls of wisdom, if people wanted to listen, but mostly it was common decency and sense she had said. She also said you should know the difference between a need and a want. Just because something is free does not mean you need it. It is okay to turn down something that is free, if you really do not need it. ”There’s a lot of talk about self-esteem these days,” she once said. ”It seems pretty basic to me. If you want to feel proud of yourself, you’ve got to do things you can be proud of. Feelings follow actions.”
It was reported that her home will be turned into a museum.
When asked what she wanted to do with her money right before she donated it, Ms. McCarty replied: “I want to help some child go to college.”
And just in case you were wondering, the recipient of the very first Oseola McCarty award not only met Ms. McCarty in person to say thank you, but she also went to the University of Mississippi and graduated. Ms. Oseola McCarty also lived long enough to get her wish: to live to see a recipient graduate.
“Luck Is What Happens When Preparation Meets Opportunity” – Seneca
“I’m a great believer in luck, and I find the harder I work the more I have of it.” –Thomas Jefferson
I do not believe in coincidences.
I believe that whatever happens was meant to. A series of actions and events put two people or things together for a reason. You attract people and things to you.
“The truth attracts money to you and lies repel it.” – Suze Orman
Therefore, if you want to attract wealth, good health and abundance then tell the truth.
THE TRUTH WILL SET YOU DEBT-FREE
Tell people your financial truth. Tell your friends and family that you can’t go on that trip with them, or out to dinner at an expensive restaurant, or that you do not have the funds to buy Christmas gifts.
Yeah, I said it. Cancel Christmas if you have to.
There’s no rule that says you have to go into debt to buy gifts for Christmas.
How about the family finds a more economical way to give gifts? Like a lottery or drawing or Secret Santa. This could be drawing names out of a hat and buying just for that one person.
Who cares if you ruffle some feathers? It is far better to be debt-free. That is the gift that keeps on giving.
Not having to pay interest to service debt is the best gift of all you can give to yourself.
“Rather go to bed without dinner than to rise in debt.” – Benjamin Franklin
Couldn’t have said it better myself.
If I hear one more person talk about going on vacation to Jamaica, I’m going to start an exotic vacation jar. It works similar to a swear jar. However, the end result will be I put my own money into the jar, say $5, and then deposit it in my savings to invest it into a Certificate of Deposit (CD) or stocks at the beginning of each year.
I know some people may not agree with me, but I really do feel that you get as much pleasure and excitement out of saving as you do spending.
I have watched and heard many friends, family, and acquaintances talk about plans for vacation, but I rarely hear them talk about plans for saving for the future.
Everything revolves around spending.
Well, I’m here to let you know it’s okay to say no to things.
It is okay to say no that you cannot afford to go shopping, out to dinner with friends or to birthday parties.
Heck, even weddings if the ticket and tux will put you in the red.
If you feel obligated to go to a wedding, I completely understand, but plan for it.
For instance, you could save $100 bucks a month in a weddings account. This is for all things wedding related. Flights, hotel rooms, wedding attire, and gifts. Set aside a certain amount. Let’s say $1,000 and that is your budget. Then you never have to worry when you get that call, “I’m engaged.”
If you feel that it makes you uncomfortable to tell people you can’t afford it, try this one line on for size: “I choose not to spend my money on insert item here.”
Fill in the blank with anything. It sounds good no matter how you say it.
Cause after all, it is your money.
Lastly, tell your doctor the truth. You can’t have wealth without health.
Do not ever feel embarrassed to tell a health professional what is going on with you.
They are there to help not to judge.
LUCK MAY NOT EQUAL MORE BUCKS
“If you just keep your head down, work, and put it on the bottom line, sooner or later that takes care of everything else.” – Wayne Huizenga
I feel that people make their own luck. The harder you work, the more you give of your time, energy and efforts to work, help and care for others is all the luck you need. Hard work is like a magnet because it attracts things. Like money. It’s a Greenbacks Magnet. Get it. Wink, wink.
Even, Star Wars Master Jedi Obi-Wan agrees with me.
“There is no such thing as luck. Only opportunity and being prepared.” – Terry Crews as Julius on Everybody Hates Chris (2005-2009)
"When I looked at luck," Corley remembers, "a lot of rich people said they were lucky and a lot of poor people said they were unlucky."
Wealthy people think that bad habits create detrimental luck and that good habits create "opportunity luck," meaning they create the opportunities for people to make their own luck.
So if luck is tied to work, then what do you think happens when people are lazy. So in essence, you are not ever really unlucky, but you can be lazy.
I know life is a journey that is full of twists and turns. It is not a straight path – as the crow flies – from obscurity to abundance.
I also know that life is full of tough times, obstacles, and at times unfair. We may not all have the same opportunities, but we all have to play the hand we were dealt because our turn at bat will come. Every action may not be a royal flush or a home run. Sometimes you just have to roll with the dice. However, you can do your best with what you’ve got. Either way, life happens. So batter up.
I agree with this quote: “You don’t get to choose if you get hurt in this world…but you do have some say in who hurts you.” – John Green (author of The Fault in Our Stars and Paper Towns)
You may not earn what you want when you want, but you can start building lasting impressions and relationships that can put you on the path to wealth.
It’s been said the harder you work the luckier you get. Tejano singer Selena once said, “When you get hard work you get success.” That was 25 years ago. But you don’t have to believe me. Here is it straight from the singer herself. She may be gone, but her music and words of wisdom are not forgotten.
Thank you for this tweet. I am a huge Selena fan & to this day I follow the advice she gave in interviews. Gone but not forgotten.
Let’s say you get to the cherry on top of the sundae and earn gobs of money and it piles up. Well, don’t let money make you complacent. No resting on your laurels. Hard work is about more than prosperity. Jennifer Lopez says she learned the following from her parents:
They showed me that you put your head down and work—you work for a living and then, when you’re making a living, you still don’t stop… We don’t stop working because we have money in the bank—we do what we do and we keep on doing it.
Remember this: “We make a living by what we get, but we make a life by what we give.” – Winston Churchill
You read that number right. That’s access to a quarter of a million in emergency funding. Here’s how.
An emergency fund is just money that is sitting around until something happens. It’s a just in case fund.
However, you can have funds outside of your own by using other people’s money (OPM). Then your own funds are not under lock and key.
Instead your money can be used to pay off debt (i.e., mortgage, credit cards, student loans, auto loans). Or better yet, your money can be invested to earn compound interest over time.
If you invest $368 a month at an 8% rate of return, over a 35-year career this could net you $1 million for retirement.
You can use a Home Equity Line of Credit (HELOC) and credit cards as your emergency fund.
I am not saying not to have cash ever or that this will entirely replace cash. A HELOC and credit cards are just added options on top of your cash.
Credit cards are self-explanatory. They are revolving accounts where you pay back what you owe, but as long as you have available credit then you can still keep spending. HELOC’s are another story.
How a HELOC works is similar, but with higher limits. Say you have a $400,000 home with a balance of $150,000 on your first mortgage and your lender is allowing you to access up to 95% of your home’s equity: $400,000 x 95% = $380,000. $380,000 – $150,000 = $230,000, your maximum line of credit limit.
What makes a HELOC different is that it allows you to borrow against your home equity, where your credit limit is based on how much equity you have in your home.
The HELOC is also not considered by the FICO score, this is in stark contrast from a credit card. The credit bureaus do consider how much you owe versus what’s available on your credit cards in factoring your credit score.
Basically, the biggest differences between a credit card and a HELOC is the underwriting standards, collateral, refinancing options, interest rates and tax deductions.
With a HELOC, you must document your income and employment. However, with a credit card, you need only provide the information.
In addition, a credit card is different because it is unsecured. Whereas, with a home, your HELOC is secured by your home equity and if you do not repay it, then your home can be foreclosed.
You can also refinance higher rate debt with the HELOC better than you could a credit card because the interest rates are lower on the HELOC because it is secured with your property. Meaning you are highly motivated to repay this debt back.
Lastly, the interest you pay on a credit card is gone with the wind. HELOC’s allow you to deduct the amount of interest you pay on your taxes. Therefore, if you pay 4.49% in interest that is tax-deductible versus 15.99% or more on a credit card that isn’t deductible, you see why a HELOC is so attractive.
Why not have access to these funds? Then, if your car breaks down, you chip a tooth, and your furnace goes out all in the same week, your covered. Oh, it can happen.
You can also have various funds that can make up your emergency money that you can pool together. For instance, a combination of $5,000 cash, $65,000 HELOC, and $30,000 credit card limits still equal $100,000 in access to funds in case of an emergency.
Funds Access
Credit Limit
Borrowed Funds
Access
Interest Rate
HELOC
$230,000.00
$ –
Instant
4.49%
Credit Card
$20,000.00
$ –
Instant
6.99%
Total
$250,000.00
$ –
Bottom-line: You can have access to hundreds of thousands of dollars without using a drop if your own money. You just have to have the means, discipline, good credit score, and high enough credit limits to have this as a plan to access credit for use in emergencies.
