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Financial Freedom

The one-tweet financial plan

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“Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give.” — William A. Ward

That’s right folks. Step right up. Don’t be shy.

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I’m about to simplify your life. Your financial life anyway. A one-tweet financial plan is the way to go.

You see that quote at the start of this blog post.

There, I just gave it to you in the quote stated above. The end.

Just kidding. But seriously, it is in the quote above. I will just expand upon it.

Warning this post is full of tweets! But lots of information. Stay with me! 😉

Keyboard, Hand, Tweet, Twitter, Computer

WHAT IS A ONE-TWEET FINANCIAL PLAN?

A financial plan that is 240 characters or less and can be sent out in a tweet.

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I know what you’re thinking. Yeah, right. Well, since seeing is believing I will show you exactly what I mean.

Here is my one-tweet financial plan.

And due to the recent government shutdown, I have also created a one-tweet financial plan government shutdown edition. 😉 It’s kind of like how they created the Scrabble game deluxe. You take an already good thing and then just expand upon it and make it even better.

I also like to think ahead to the future and plan for my taxes. You need to save today because the future gets more expensive. What costs a $1 today will cost $1.25 in the future. Plan ahead.

Speaking of Scrabble…

LISTEN

It is one of the best qualities you can have. Being a good listener can lead to lasting marriages, better employment, and happier relationships.

You see #2 there. @mjp2520. Yes, that’s me. 😉

I started reading about personal finance and attending seminars or conferences long before I started writing and tweeting about it. Coming from a place of experience and information gives you a different point of view (POV). That POV can make you an expert in your field. Never underestimate the power of just listening and observing.

THINK

I want you to write down your goals, thoughts, wants, needs, and desires. Like I said before, seeing is believing. Think before you act.

There is nothing wrong with moving slowly or with caution. However, that does not give you the right to move like a turtle. First, think. Then act and move expeditiously once a decision has been made. Move quick. Make haste. Do not overthink it. This can lead to analysis paralysis.

Moving slowly does allow you to more clearly see the path ahead. But once you see it, I want you to run toward your goal. Not walk. RUN!

EARN

You have to earn money to save it. It is just that simple.

I was in debt up to my eyeballs. However, I did not toss my hands in the air and say who cares as I will be in debt forever. Nope. Not me. I chipped away at my debt. Then, I slowly started to have savings. I emerged from the debt cocoon I was in and became a soon to be debt-free butterfly.

I found ways to get rid of my debt. By any means necessary. It didn’t matter if I had to sell items, save my change, get 0% deals on every item I purchased, or stop buying chewing gum just to save a buck.

Once the debt started going away, I had tons of disposable income. Go figure.

INVEST

I cannot stress this enough. Investing can be the difference between you being one of the haves or have nots. I hate to break it to you, but the top earners invest.

Investing is a long game.

I read the wealthy invest up to 20 percent or more of their income each and every year.

The 1 percent are making a killing in the stock market. And you can too.

When I decided I was going to be rich, I turned my attention toward investing. If you want to know where Greenbacks Magnet is investing, then check out my post below. 😉

See my post How I turned a $450 car payment into $100,000

Here are some of my tweets on some good investment books to read.

The wealthy also read A LOT!!!

According to Grant Cardone, CEO’s read 60 books and attend 6 conferences a year. The average person reads less than one book a year. I read that in the 10X Rule.

Read the 10x rule. Took his advice. Set 10x goals and do 10x more action. It worked. Many thanks! Went from saving $10 to $10k a year. #OBSESSED

WAIT

Yes, like the Maroon 5 song. Wait.

Anything worth having is worth the wait.

You know all those overnight success stories you hear? Well, those are garbage. It takes years of hard work, persistence, determination and sacrifice to get anywhere worth going.

All those bands you hear about or people you see on television. They were honing their craft long before records executives starting signing them to deals.

Gene Simmons said he was going from gig to gig in an old van living off hot dogs with his bandmates in KISS.

Pat Benatar left her job as a bank teller to start working as a singing waitress making $4,000 a month before she hit it big.

You know their names now, but there was a time they were broke and unknown.

Success comes from doing not luck. And the toiling to make that success happen, can take years or even decades. So, prepare yourself.

Don’t be like Beetlejuice. Remember that scene in the movie where he took his number and was impatient. It was hilarious. One of Michael Keaton’s most memorable roles.

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The point is that you have to be patient. I do not mean wait forever. I just mean that all good things do take some amount of time.

Don’t be so quick to judge or criticize others, before you know the full story.

“I praise loudly. I blame softly.” – Catherine II, Catherine the Great

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FORGIVE

They say it’s divine.

“Always forgive your enemies; nothing annoys them so much.” – Oscar Wilde

And I make sure to forgive. I always forgive, once.

See my post A Christmas Carol: Lessons in Finance, Business, and Life

TRY

Don’t be a quitter. Try first. You will never know if you have got the goods to make it, unless you get out there and do it. Do something. Don’t just wait to be discovered. Get out there and meet people. Shake some hands. Knock down some doors. Make some phone calls. Just try.

SAVE

This one thing can change your life. Saving. It is the start of all things to come. The act alone is a reflection of who you are and what you value.

The foundation for all your future wealth is derived from this word and your ability to do it.

See my post How Millennial Money inspired me to start saving $13,333.06 a year

GIVE

You give as a way to reach back and help those that come after you. It is a way to show your gratitude for all the things those that came before you have done.

There was a time there was no stock market. Or anesthesia. 😮

Let’s take a little walk down Wall Street.

The NYSE celebrated its 200th anniversary in 1992. Wall Street started under a tree in 1792 with commodities.

The Dow Jones Industrial Average (DJIA) was founded in 1896 with only 12 industrial stocks. Those 12 companies: American Cotton Oil, American Sugar, American Tobacco, Chicago Gas, Distilling & Cattle Feeding, General Electric, Laclede Gas, National Lead, North American, Tennessee Coal and Iron, U.S. Leather and U.S. Rubber. 

My how things have changed. None of those stocks are now part of the DJIA.

The good thing about indexes is that unlike individual stocks, when things go south and a business performs badly or goes under, it is culled. That’s right. They remove it from the DJIA and replace it with another business. Usually one that is performing well. That is the reason you invest in indexes. For the protection against a business going out of business and you losing your shirt!

General Electric (GE) is the only member of the Dow Jones Industrial Average that has been in the index since it’s beginning in 1896. It is being taken out and replaced by Walgreens (WBA) as reported of July 2018. That’s a 122-year run.

They have made it easier for you to invest now than 100 years ago.

Dale Carnegie had to ask his mother to mortgage the house so that he could invest the funds in stocks that he knew. That was how he built his fortune. Remember to invest in what you know.  Earn a fortune and then give it away.

Giving is one of the best ways to be philanthropic.

Remember that part in the movie Troy where Achilles asks his mother if he should go to Troy. And she says to him only if he wants his name to be remembered and live on throughout the ages.

Giving is a way to have immortality.

Case in point, Ms. Oseola McCarty inspired many others to donate to charity as well after she donated her life savings of $150,000 to a college in 1995. How’s that for a swan song? One of the biggest donors she inspired: Media Magnate and Mogul Ted Turner.

So why is it even noteworthy when Oseola McCarty, an elderly woman, donates $150,000 to the University of Southern Mississippi? In the case of Ms. McCarty, it is the heart behind the gift, and the lifetime of effort that went into it. For her act of kindness, she was awarded the Medal of Freedom, the highest civilian honor and got to ring the stock market opening bell.

How about that for recognition in helping others? And she asked nothing for herself or in return. These things were given to her for her charitable contribution to society.

Giving is passed down from generation to generation.

So, if you want to be immortal and have your memory live on forever, one word: give.

Want to know more. Tweet me. I’ll be at @mjp2520 

Xoxo Miriam Joy AKA Greenbacks Magnet 💋

Financial Freedom

Money and Life advice I got from Paper Towns

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“You don’t get to choose if you get hurt in this world…but you do have some say in who hurts you. I like my choices.” – John Green, author The Fault in Our Stars

The summer of 2015 my nieces really wanted me to take them to go see this movie. Not knowing what it was about, I decided to go ahead and take them because of their sheer enthusiasm alone. I was not disappointed. The movie was incredible.

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It is a coming of age teenage romance written by the Fault in Our Stars author John Green.

The movie was based on a Young Adult (YA) he novel he wrote entitled Paper Towns.

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It follows along with two young teens Margo Roth Spiegelman (played by Cara Delevingne) and Quentin Jacobsen or Q for short (played by Nat Wolff).

It was turned into a motion picture by Twentieth Century Fox and released in theaters on July 9, 2015.

The film is a series of adventures and near misses while we tag along with Quentin to find his dream girl, who goes missing just a couple weeks before high school graduation. Although, the film is fun, it’s the dialogue that really captures your attention and wins your heart.

If you get a chance, you can get lost, get found with Paper Towns.

WHAT IS A PAPER TOWN?

A paper town is a fake town that is created by map makers, as a way to protect their copyright, to know if they’ve been robbed.

In the film, it is referenced as a shallow town or place. Everything is so fake. A place that is fragile.

ALL STORIES HAVE A BEGINNING AND SOME ARE SWEET

“She had the kind of fingers you want to interlace with your own.” – Quentin

The story is based around the feelings Quentin has for his childhood sweetheart and crush, Margo Roth Spiegelman.

At a young age, it was shown that Margo was a precocious child. This intrigued Quentin. However, as they got older she became more outgoing and him more introverted.

Throughout my life, I have had to throw caution to the wind and go for what I want. If you want anything in this world, at times, you will have to do the same. You have to go all in and strike first.

For example, when I was looking a job many years ago, I decided to approach it as a numbers game. I said screw it. I’m just going to apply for as many jobs as I can and see what happens.

I must have put out 100 resumes. Out of all of those job applications, I got one yes. But that was all I needed. You only need one yes to change your whole life. It just starts with putting yourself out there. Nothing comes from obscurity and being shy. Sometimes, you have to be willing to shout.

PRETTY HURTS

“That’s always seemed so ridiculous to me, that people want to be around someone because they’re pretty. It’s like picking your breakfast cereals based on color instead of taste.” ― John Green, Paper Towns

What you look like on the outside is all vanity. Beauty is in the eye of the beholder. Do not let society dictate what you should be. Be you. And remember this: beauty fades.

“I’m starting to realize that people lack good mirrors. It’s so hard for anyone to show us how we look, & so hard for us to show anyone how we feel.” ― John Green, Paper Towns

You have to rely on more than just your looks in this life.  Eventually, you will have to take care of yourself. You better be up for the task or you will have problems.

I have seen tons of beautiful women have bad credit, horrible relationships, and be broke. But hey, at least they were pretty right?

It is not enough to be pretty. You have to be more than just fine. No one wants to marry a beautiful airhead or a beautiful fool.

This blog is all about financial independence.

Have you ever heard the saying a fool and his money is soon parted?

I rest my case.

MAKE THE FIRST MOVE

“I didn’t need you, you idiot. I picked you. And then you picked me back.” ― John Green, Paper Towns

Those who make the first move are usually victorious.

In the film, Quentin wants so badly to be with Margo. However, he always holds back. In this life, you can’t hold anything back.

Case in point, in this blog, I don’t hold anything back. I give you everything I have. I know that’s what I want when I deal with people. So, I make sure to do the same to others. Whatever it is you want in this life, this is my advice to you: make your move.

YOUR LIFE CAN CHANGE IN ONE DAY…OR A NIGHT

“Tonight, darling, we are going to right a lot of wrongs. And we are going to wrong some rights. The first shall be last; the last shall be first; the meek shall do some earth-inheriting. But before we can radically reshape the world, we need to shop.” – Margo Roth Spiegelman

I have read countless biographies of the rich and famous where they retell how a single incident changed the course of their entire lives.

Well, in this film, it is the night Margo climbed through Q’s window.

She asks him to borrow his mom’s car so she can go on a midnight caper of revenge or he could come along too and be the get a way driver.

Decisions, decisions.

PICK A PATH

“The way I figure it, everyone gets a miracle. Like, I will probably never be struck by lightning, or win a Nobel Prize, or become the dictator of a small nation in the Pacific Islands, or contract terminal ear cancer, or spontaneously combust. But if you consider all the unlikely things together, at least one of them will probably happen to each of us. I could have seen it rain frogs. I could have stepped foot on Mars. I could have been eaten by a whale. I could have married the Queen of England or survived months at sea. But my miracle was different. My miracle was this: out of all the houses in all the subdivisions in all of Florida, I ended up living next door to Margo Roth Spiegelman.” ― Quentin Jacobsen, Paper Towns

You can pretty much guess what answer he gave Margo.

He went with her.

Let the fun begin.

REVENGE IS A DISH BEST SERVED COLD AND AT NIGHT

“I always felt like you had to be important to have enemies.” ― John Green, Paper Towns

When she asks for his mom’s car, she tells him that she has like 11 items on her to-do list tonight and that most of them will probably require a getaway car.  

I remember that quote from Winston Churchill, “You have enemies? Good. That means you’ve stood up for something, sometime in your life.” Margo reminds me of that. She found out her friends had wronged her. So, she decided to take matters into her own hands.

“We bring the rain down on our enemies, not the scattered showers” – Margo Roth Spiegelman

That is a line that she says of their hit-and-run capers, on that fun-filled night, as she leaves a Zorro-like ‘M’ that is left at the scene of all her crimes.

Margo replies this when Q asks her if her scheme of getting revenge is necessary and if they can do something that is not so risky and harsh.

I have to agree. Sometimes you have to teach people a lesson. You have to tell people how you want to be treated. Stand up for yourself. You may not need a night of midnight capers to do it, but you can still send a message that you’re not a pushover.

“If you don’t imagine, nothing ever happens at all.” ― John Green, Paper Towns

Margo has some pretty extreme things she does that night.

First, they shop for supplies.

Second, they visit each one of her enemies.

Lastly, they celebrate their success at escaping getting caught.

I too like to celebrate my wins.

When I was able to start slowly paying off debt one by one, I celebrated each time. It keeps the momentum going. And just makes you feel good. Hard work = success and rewards.

  • Paid off my car. Then I treated myself to a spa day.
  • Then used that money to invest.
  • Once I hit my $100k mark, I turned my attention to hitting a target of 3 times more of $300k.
  • After I pay off each debt, I either save or invest that money.
  • I started saving $25 a week and slowly went to saving $100 a week and so on.

See my posts

How I turned a $450 car note into $100,000

They Shoot Greenbacks, Don’t They?

Money and Life Lessons from The Pirates of Dark Water

Finance Lessons from Flipping Vegas

 No matter how big or small. Winning just feels good so you want to celebrate.

BE PRESENT IN THE MOMENT

Quentin had the time of his life that night. It was a fun ride to say the least. And he enjoyed every moment.

Some dialogue from the film.

“What about the rest of your life?”

She shrugged. “What about it?”

“Aren’t you worried about, like, forever?”

“Forever is composed of nows,” she says.”

During that incredible night with Margo, Quentin is laughing and smiling. He was having so much fun.

“My heart is really pounding,” I said.

“That’s how you know you’re having fun,” Margo said.”

While they were running away from one of their capers, Margo says, “I mean, we’re ninjas.”

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Of his time with Margo, Quentin thinks to himself, “At least I carpe’d that one diem.”

As she left notes, at all of her crime scenes, Quentin notices her handwriting and remarks on it.

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“Interesting capitalization,’ I said.

‘Yeah. I’m a big believer in random capitalization. The rules of capitalization are so unfair to words in the middle.”

Absolutely. Live in the present. Enjoy the moment. Have some fun. Plan for the future, but don’t forget to live for today. Plan a visit with friends, or to a park or movie or museum. Or relax and take a break.

Seize the day!

There will always be something that requires your attention. I say if you have to work, find a way to have some fun too. If you’re not having fun, then what’s the point?

SURVIVE AND THRIVE

“I’m not saying that everything is survivable. Just that everything except the last thing is.” ― John Green, Paper Towns

No matter what life throws at you, handle it like an adult. You can’t always throw a temper tantrum every time you can’t get your way. You cannot use your fists and throw punches at people. Use your words. That’s what adults do.

It is not enough to merely survive. You do want to survive, yes. But you also want to thrive. Success comes to those who work for it. It is your duty to go out and get it. Your family’s survival depends on it.

If you ever saw the movie Troy, you heard the line, “guard this sword with your life. As long as a Trojan wields it, our people have a future.” Same rule applies for your family. You must survive and prosper today, so that your family has a future.

See my post Financial Independence in 10 years

LEARN HISTORY AS IT TEACHES US LESSONS

“Did you know that for pretty much the entire history of the human species, the average life span was less than thirty years? You could count on ten years or so of real adulthood, right? There was no planning for retirement. There was no planning for a career. There was no planning. No time for planning. No time for a future. But then the life spans started getting longer, and people started having more and more future. And now life has become the future. Every moment of your life is lived for the future–you go to high school so you can go to college so you can get a good job so you can get a nice house so you can afford to send your kids to college so they can get a good job so they can get a nice house so they can afford to send their kids to college.” ― John Green, Paper Towns

They say history often repeats.

Did you know that in the gilded age, robber barons held about 80% of all the wealth in this country about a century ago? And that many folks had no plan for retirement at all. No pensions, no 401(k), nothing.

That’s right. Before FDR created Social Security in the 1930’s, there was no pension for the elderly and many were living in poverty. Many people did not live past the age of 65. They did not have to plan so far ahead because many did not live long enough to see any type of future.

That has changed. Today people are living longer. You are your first, best, last, and only line of defense against living in poverty.  

Bill Gates said, “If you are born poor, it’s not your mistake. But if you die poor, it’s your mistake.”

Basically, he means you should do everything you can to build a better life for yourself. That means if you can’t go outside and play all day, you have to deal with it.

Can’t see that concert this week. Oh well.

You can only play one sport or instrument. Well, that’s it then.

You have to stay up and study all night for that big exam. That’s life.

Buy a new car or invest that money? Your call, but I suggest you buy a Honda or Ford and invest your dough.

See what I mean. Sacrifice. It yields great rewards.

HIGH SCHOOL IS NOT A DEMOCRACY

“High school is neither a democracy nor a dictatorship – nor, contrary to popular belief, an anarchic state. High school is a divine-right monarchy. And when the queen goes on vacation, things change.” ― John Green, Paper Towns

This is a nice take on the whole high school experience.

I felt high school was so silly. I could care less about who wears what or say this or that. I have never been a gossip. I kept my eye on the prize: high school diploma. Everything else is just stuff you do in-between until you reach the end of that goal. Most of the stuff that goes on won’t even matter after you graduate.

“I know it’s impossible for you to see your peers this way, but when you’re older, you start to see them–the bad kids and the good kids and all kids–as people. They’re just people, who deserve to be cared for.”

Amen.

“As much as life can suck, it always beats the alternative.” ― John Green, Paper Towns

You have to make lemonade out of lemons. There is always another rainbow and tomorrow does always come and it can get better. The alternative to getting old is dying young.

I will never forget this one time I was talking to an older gentleman and he said he felt old because he was retired. It went down like this.

Him: I feel old. Now, that I’m retired.

Me: Retirement means income.

Him: I like you. (He smiled and perked up.)

A few words of kindness can elevate someone mood, lift their spirits, make their day, and change a situation completely. So, be kind.

“Be curious, not judgmental.” – Walt Whitman

“You know your problem, Quentin? You keep expecting people not to be themselves. I mean, I could hate you for being massively unpunctual and for never being interested in anything other than Margo Roth Spiegelman, and for, like, never asking me about how it’s going with my girlfriend – but I don’t give a shit, man, because you’re you. My parents have a shit ton of black Santas, but that’s okay. They’re them. I’m too obsessed with a reference website to answer my phone sometimes when my friends call, or my girlfriend. That’s okay, too. That’s me. You like me anyway. And I like you. You’re funny, and you’re smart, and you may show up late, but you always show up eventually.” ― John Green, Paper Towns

That last line brought it home didn’t it? He started kind of shaky, but he finished strong. And that is how life is. You start out shaky and are working on a learning curve, then you finish strong. You do everything in your power to stay grounded, stay hungry, hustle hard, and stay humble.

I promise you, that if you ever get lost, the harder you work, the louder you shout and the more you seek to find answers and the truth, then the more likely it is you will find what you are looking for and get found.

Fictional characters Cartoons and Money, Financial Freedom

Money and Life Lessons from The Pirates of Dark Water

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Always the quest. – Ren, Prince of Octopon  

If you grew up watching cartoons like I did, then you may remember this one from the 90’s called The Pirates of Dark Water.

The Pirates of Dark Water is an American fantasy animated television series produced by the dynamic animation team of Hanna-Barbera (The Flintstones, Scooby Doo) and created by David Kirschner, which first aired in 1991.             

It was part of the Saturday morning cartoons line-up.

See my post on CBS Storybreak’s Yeh-Shen

Fun Fact: CBS Storybreak was also produced by Hanna-Barbera Productions.

A young man, seventeen-year-old Ren, learns that he is a Prince with an urgent quest to save his world by finding thirteen magical treasures of rule.

Ren is a very likeable hero much like Luke Skywalker. And for every yin there is a yang.

The pirate lord Bloth is a savage alien pirate and Ren’s mortal enemy. He is Ren’s Darth Vader.

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The show had action, adventure, sword fights, and of course humor. This show was unlike many other of that time as it was way more serious, well-written, surprisingly mature, very developed with memorable characters, imaginative worlds, plot driven, and involved a high degree of morals. I still think of this show and those lessons to this day.

You get to go along with Ren and his shipmates, Tula and Ioz, on a quest to save the world. However, no cartoon by Hanna-Barbera would be complete if they didn’t give you some life lessons along the way.

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The premise and the opening credits spoken over the theme music.

The alien world of Mer is being devoured by an evil substance known as Dark Water. Only Ren, a young prince, can stop it by finding the lost Thirteen Treasures of Rule. At his side, his allies on this quest are an unlikely, but loyal crew of misfits. At his back, is Bloth. The evil pirate lord, Bloth, will stop at nothing to get the treasures for himself.

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I found the show synopsis at IMDB.com

Storyline

When Ren, a young son of a lighthouse keeper, rescues a stranger foundering in the rocks near his home, he learns the man was an aide to his true father, a great king. Ren is given a magic compass crystal that guides him to a dragon who shows him that the only way to claim his heritage is to find the Thirteen Treasures of Rule. Unfortunately, a pirate ship captained by the evil Bloth is also aware of this treasure and is relentlessly pursuing Ren for it. On his side, Ren soon acquires companions like Ioz the Pirate, Tula the Eco-Mage and Nibbler the Monkey Bird who help him in his quest. That quest becomes all the more urgent when Ren learns that the Dark Water, a carnivorous form of water that consumes anything it snares, threatens to envelope and destroy his world and only the treasures he seeks can stop it. Written by Kenneth Chisholm

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The show’s opening credit ending theme song tagline: It’s high adventures with The Pirates of Dark Water. 

The Pirates of Dark Water (1991)

Let’s go!

FORTUNE FAVORS THE BOLD

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The rich are bold. So seek adventure.

Think Richard Branson, Steve Jobs, Oprah Winfrey or Walt Disney.

The characters in this series are also very outrageous, bold, and at times, reckless, but they get the job done.

This show is packed with great dialogue, fun characters, and on the edge of your seat action. The storyline was driven by its protagonist, Ren (voiced by George Newbern), the leader of this group of pirates. His unabashed furor over the treatment of people, eloquent way with words, and logical reasoning made him a good leader.

Accompanying him on his quest were Tula (voiced by Jodi Benson aka The Little Mermaid Ariel) and Ioz (voiced by Hector Elizondo of Pretty Woman, Runaway Bride). Ioz is a fortune hunter and mercenary swayed by Ren’s noble quest and throws himself in the fracas to help them. They also had a talking monkey-bird, if you can picture that, by the name of Niddler (who is also the comic relief).

For origins of the Little Mermaid see my post on Grimm

Wherever they go, trouble sure follows. Not surprisingly, as every successful person always has something or someone nipping at their heels, vying to claim the same victory to hang up on their mantelpiece.   

Ren and company also receives help, guidance, and encouragement along the way. From this I learned that people are usually willing to help you, when you’re doing the right thing.

See my post Money and Life advice from Nike founder Phil Knight

SUCCESS TAKES TIME

There is nothing impossible to him who will try. – Alexander the Great

There is no shortcut on the road to success.

All things that are good and important take time.

You have to put the work in. Once you do that, then the money seems to follow.

In the show, Ren and his crew had to find the lost treasures of Rule and this takes time. After 21 episodes of the show, they still had only found seven treasures. And they had to guard them with their lives. This odyssey would no doubt take years.

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Tula:

This is going to be a long trip…

You got that right!

Everyone was chasing those treasures. Kind of reminds me of the Legend of Zelda (which they also turned into a cartoon, as was the norm in the 80’s and 90’s).

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If you remember that obscure animated series, then you know his famous line after he felt he should be rewarded by Zelda for keeping the Tri-force of Wisdom safe, “Well, excuuuuuse me princess.” Hilarious.

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There is no story I have ever read that did not take the victor time to complete their journey to the finish line. Even Odysseus, didn’t make it home for ten years after leaving Troy and twenty after joining the Trojan war expedition, but that’s another story. If you like Greek mythology, then check out Homer’s the Iliad and the Odyssey.

Alexander the Great went on a military campaign for over a decade to conquer one of the largest empires in ancient times starting from 336 BC. William the Conqueror let nothing stand in his way to victory as the first Norman King of England, reigning from 1066 until his death. His conquest took six years. Don’t even get me started on The Crusades or Napoleon.

If you want something, then you have to be willing to put the time in.

When I decided I wanted to be financially independent, I studied hundreds of blog, reads dozens of books and started reading about conquerors of ancient civilizations and the self-made.

Over the course of seven years, I did the following:

  • Went form saving $1 a day to $13,000 a year.
  • Increased my savings rate by 2% or more per year.
  • Calculated my FIRE number (Financial Independence/Retire Early) $750,000 and figured out a way to get there in less than 10 years.
  • Started setting impossibly high SMART (Specific, Measureable, Attainable, Realistic, Timely) goals, tasks, and deadlines and meeting them.
  • Figured out the date to retire my credit card debt (which is some of the worst you can have).
  • Determined that all credit card debt is the worst kind of debt to have and found a way to get rid of all revolving debt.
  • Reading a minimum of 2 books a month.
  • Established a six-figure retirement.
  • Started saving $15,000 a year in 2019.

That took years! However, as you can see from above, patience, hard work and determination get results. This blog takes you along on my quest and all the things I do in the pursuit of financial independence. And ultimately, earn back my freedom as time is one thing you can never get back once it’s gone.

FRIENDSHIP IS IMPORTANT

Remember upon the conduct of each depends the fate of all. – Alexander the Great

One of my favorite things about this show was the kinship of not only the show’s stars, but the people in that world. They were always willing to lend a hand to help one another. Especially, in those dark times, people just banded together. As it should be. They also forgave.

Lend me some sugar, I am your neighbor! – Outcast, Hey Ya!

Treat your friends as if they are worth their weight in gold. The ones that truly have your back will be there in good times or bad.

Lots of people want to ride with you in the limo, but what you want is someone who will take the bus with you when the limo breaks down. – Oprah Winfrey

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Got it?

Good.

RESPECT

It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently. – Warren Buffet

Everywhere Ren went he received respect whenever he name dropped his father’s name, King Primus. It was awesome to see people help him because of the reputation built by his father. Wow.

That taught me reputation is everything.

Keep a good name. Keep your promises. Overcommit and over deliver.  

You want respect? You have to earn it.

I like to write. And it’s exciting to write new content. I try to keep this blog informative, but fun. It’s like Sesame Street for adults! Ha ha!

So, if anyone ever namechecks Greenbacks Magnet, I know it’s because they like what you read.

MONEY ISN’T EVERYTHING

Havin’ money’s not everything, not havin’ it is. – Kanye West, Good Life

The show is constantly filled with pirates talking, stealing, earning, or wanting gold and treasure. It’s all in good fun. However, there are times when Ren and his friends are in grave mortal danger. His companions mean the world to him. The circle of trust is very strong and real with them. They never leave one another behind. Not ever.

Ren never chooses money, things, or any possession over people. A fine quality to have indeed.

You can get more things, you can earn more money, but there is only one You! Never forget that.

BEING EVIL ALWAYS MEANS LOSING SOMETHING

50 told me, go ‘head, switch the style up. And if they hate then let ’em hate and watch the money pile up. – Kanye West, Good Life

On the show, the pirate lord Bloth was always trying to lie, cheat, steal, and con his way in and out of everything. His ego could suck up all the air in a room. However, Ren and company always thwarted him in the end, to his chagrin.

Here is some dialogue from the show.

Onda, The Dagron Master:

What about my gold? You promised!

Ioz:

A pirate’s promise. I lied.

ETHOS, PATHOS, AND COMPASSION

The protagonist, Ren, is kind to everyone. He is also loyal to a fault. Therefore, he values honesty and loyalty. And this becomes his reputation. His good natured ways and good name takes him far in the world.

The sheer amount of emotion he evokes and passion for what he does is inspiring. He acts without malice, but steadfastly and with courage. Ren also takes the advice of those he trusts most and not just anyone.

Here is some more dialogue from the show.

Ren:

I can’t ask you to continue with me on this dangerous quest. Name the port of your choice and I’ll take you there.

Ioz:

Which way does the compass point?

Ren:

[Ren picks up the compass and spins it around] The second treasure of Rule… East!

Tula:

Then east it is! For adventure!

Ioz:

For treasure!

Ren:

For Octopon!

Niddler:

For crying out loud! When are we gonna eat?

They would throw in some humor once in a while as you can see.

I have also learned to take good advice when it’s given.

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It’s not about the messenger, it’s the message.  

One of my favorite episodes on the show as entitled, “The Beast and the Bell,” episode 8, which aired on November 2, 1991.

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Ren is tricked into freeing an imprisoned evil creature by the name of Keroptus.

The Pirates of Dark Water (1991)

He makes a promise to re-imprison the monster to the people who guard him. I will never forget what he said to an optimistic Ren about this dangerous foe as you should never underestimate an enemy.

King of the Guards:

 Keroptus is nobody’s fool boy. He will not be easily deceived by parlor tricks.

To this day, I feel that way about every person I meet. You do not know what or who anyone knows. You should always proceed with caution.

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Well, that concludes this latest post.

I enjoyed revisiting this show from my childhood.

It always gives me a great feeling when I watch this show. The swashbuckling, seeking of treasure and adventure. Personally, that’s how it feels to pursue wealth. I go for the gold. And I play to win.

I know a credit card company has a saying; don’t leave home without it.  However, this show taught me how valuable having morals are and I learned to never leave home without them.

Financial Freedom, Saving

They Shoot Greenbacks, Don’t They?

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I save money because I don’t ever want the lack of money to cause me to make bad decisions. – Miriam Joy

luck, dollars, darts, lottery, chance, target

One of my favorite things to do is dance.

If I could get paid to do it, I would.

It’s great exercise and helps me relieve stress. I am better able to manage my life and all the things that come my way. And let’s not forget that exercise gives you endorphins, which makes you happy.

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And they make you happy. 😊

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However, as much as I like to dance and earn money, I have my limits.

If you have ever seen the movie, They Shoot Horses, Don’t They?, then you know what I’m talking about.

The film is based on the 1935 novel of the same name written by Horace McCoy. It starts out in 1932. The Great Depression is only a few years in America’s rearview.

The film start’s just as the title says. By putting the hurt animal out of its misery.

During this time period, the country is still reeling from the stock market crash of 1929. Therefore, smelling opportunity, an unscrupulous emcee runs a Depression-era dance marathon for a down on their luck group of characters. The contestants are competing for the grand prize of $1,500 dollars.

What ensues is sheer madness. The contest slowly descends into chaos as each contestant is eliminated one-by-one. It is a test of wills where it is all about the survival of the fittest.

MONEY IS A MOTIVATOR

I like to calculate the opportunity cost or hours of work compared to the cost of purchasing an item.

For example, if you make $30 an hour and purchase a concert ticket for $150, then you have to work 5 hours to pay for that purchase. You have to ask yourself, if that ticket is worth 5 hours of your time? Are you willing to work that long to buy that ticket?

You can use this formula for anything.

I used this formula as motivation to stop buying clothes and miscellaneous items.

After reading several books, I was motivated to stop shopping and pay down and off my credit card debt and personal loans.

That was my way of putting my debt of its misery. Paying it off!

I started saving over $10,000 a year. That’s money in the bank. I needed that amount to be able to sleep at night. I call that my sleep number.

WHAT IS YOUR SLEEP NUMBER?

My sleep number is $10,000.

What is a sleep number?

Well, I feel that it is the amount of money you keep in savings so that you can handle emergencies such as a medical bill, dental work, or a flat tire and can sleep at night without worrying how you’re going to pay your bills.

If you could give yourself a number like that, what would it be?

Calculate it.

For you to sleep at night without having nightmares that the bill collector is calling and to stop tossing and turning, how much would it take? $2,500, $5,000, $10,000, or $20,000?  

That’s your sleep number.

ATTRACTING MONEY

You know I am all for attracting good things to yourself. You do this with your behavior.

I love magnetism. That’s why I named this blog Greenbacks Magnet.

It is the Law of Attraction which uses the power of the mind to translate whatever is in our thoughts and materialize them into reality.

Remember that like attracts like.

Athletes like other athletes.

Musicians like to work with other musicians.

Academics attracts other academics.

Money attracts money.

You see my point. If you want something, then you have to find a way to attract it to you. What are you going to give, to get?

Case in point, you can earn money in a high yield savings account. First, you must have some money to put in the account. That money will be used as the principal to attract interest. The higher the amount, then the more money you attract and ultimately earn.

Broke attracts nothing.

That is why you save. To not be broke.

In the book You are broke because you want to be, the author lists all types of reasons why people are broke. Mostly it has to do with spending habits.

He even said saving coins in a huge gallon milk jug could allow you to save $400 a year. If you do it consistently and save all your coins, that is, instead of spending them.

HABITS IS WHAT MAKES YOU RICH

Your behavior is the number things standing between you and incredible wealth.

Habits equal riches.

You limit the spending and build your wealth. That is how it is done.

Keep yourself healthy and agile. The wealth building years when you are young can set the foundation for the rest of your life.  This is the time to get the skills and training you need to earn.

That’s when you’re loose like a mongoose.

 For those of you that remember Rikki-Tikki-Tavi by Rudyard Kipling, you got to read about the actions of a mongoose. Quick and deliberate. Single-minded focus. That is what it takes to build wealth. You keep hammering at your target until you nail it.  

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Your number one asset is your ability to work. That is what you will use to earn your fortune. Stay nimble. Move out West or where ever the jobs are.

It is your duty, responsibility, and obligation to be successful. Habits is torch that blazes the trail to wealth. If you want financial freedom, you have to work for it.

No one is going to hand it to you. But it’s out there. And it’s yours for the taking.

To recap…

  • Before making a purchase, figure out how many hours you have to work to get it
  • Calculate your sleep number
  • Attract money by earning and saving money
  • Habits make you rich so practice the habit of saving
Financial Freedom, Financial Independence

Financial Independence in 10 years

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Base Jump, Jump, Base Jumper, Leaping

If the goal is to have financial freedom, then it is worth the sacrifice.

I have been reading nonstop about personal finance. It has been a heck of a ride. The roller-coaster of emotions that goes along with it is not so scary when you focus purely on the numbers.

Most experts will say to save 10-20% of your income, but that still means working a 30+ career until being free. I wanted to get off the hamster wheel earlier or at least whenever I wanted instead of when only I could.

I thought wouldn’t it be great to focus on getting out of the rat race sooner. Why not just focus on a certain time period?  I picked 10 years because that is a good chunk of time for most people to get themselves in the head space to understand that discipline is in order to achieve this lofty goal.

I just narrowed down my focus to only looking for information pertaining to how to become FI in a decade.

Here is what I found along the way.

THINK 10

They say to think big. So, I say think 10.

I began to look for information on being financially free.

For instance, saving 50% of your income and getting a return of 5% or more could net you over $500,000 and allow you to become FI in 15 years. Not bad.

If your living expenses are under $40k a year, then you can make that work for you. Therefore, the more you spend, then the more you have to save. It is just that simple.

Saving 65% of your income with a return of 7% or more could net you over $600,000 and allow you to become FI in about 11 years.

Even better, saving 70% your income with a return of 7% or more could net you over $700,000 and allow you to become FI in less than 10 years. Yahtzee!

I found a savings rate early retirement chart on Clark Howard’s website. He generally decreased the number of working years by four once you hit a 40% savings rate.

TAKE YEARS OFF THE RETIREMENT SCHEDULE

After, I did my research, I also found the following:

  • By saving 60% of your income, you can take 1 year and 6 months off every time you work 1 year.
  • By saving 70% of your income, you can take 2 years and 4 months off every time you work 1 year.
  • By saving 80% of your income, you can take 4 years off every time you work 1 year.
  • By saving 90% of your income, you can take 9 years off every time you work 1 year.

This is what Jacob Lund Fisker details in his book Early Retirement Extreme.

Saving a high percentage of your income is literally allowing you to sock away years of retirement income at a faster rate.

That would mean based on the above statements, the following:

  • Saving 60% of your income for 7 years, allows you to knock 11.2 years off your retirement schedule.
  • Saving 70% of your income for 7 years, allows you to knock 16.8 years off your retirement schedule.
  • Saving 80% of your income for 7 years, allows you to knock 28.7 years off your retirement schedule.

This would mean retiring in your 30s or 40s as opposed to your 50s or 60s. However, working is relative. If you truly have something that you enjoy doing, then it is not an issue. FI is about finding work or activities that you want to do without having to worry about punching a clock and getting paid.

WHAT IS FI?

It is the ability to make work optional.

Your assets are now generating enough cash flow for you to exit stage left out of the workforce.

I found this great chart that defines it eloquently.

Freedom vs independence

Image credit: doubledebtsinglewoman.com

HOW AND WHERE TO SAVE

Unfortunately, it is not enough just to save, but to have a target.

Most reading I have done on FI includes putting money in index funds, taxable accounts, savings, checking, and money market accounts,

For example, J.P. Livingston of TheMoneyHabit says she was saving about 70% of her income and then split that up into different categories.

Of that 70% of her income, she put 60% in savings and the remaining 40% into investing.

A place like the Vanguard Total Stock Market Index Fund (VTSMX) or EFT (VTI) should work for you just fine.

All this means that you must not only invest, but put a high portion of your income aside to actually be able to hit the eject button on your job. After all, you need income to live off of and investments typically come with rules like you are unable to withdraw any funds before age 55 to 59 ½.

I continually read about those that have retired early and reached financial independence. The common denominator is this: savings.

What can I tweak? How can I do better? I always strive for abundance. After I achieve one goal, then I make a new goal.

Once I got serious, I started socking away 41% of my income. My next move was to get to 50% of my income and eventually work my way up to a 75% savings rate.

I have also noticed that high yield savings accounts rates have gone up recently. There are accounts now paying over 2% interest. That’s right. You can earn 2% just for parking your money. The more you save; the more you earn. That is the same amount some people are receiving in annual raises and cost of living increases!

Do not let anyone tell you that this is not possible. Forget the naysayers. There is a saying that the elephant keeps walking as the dogs keep barking. Do not let fear, others opinions, or lack of effort keep you from reaching your goals.

You are the MVP on your Financial Freedom team. Go for the goal. Always.  

There is no better goal than being free.

Entrepreneurship, Financial Freedom, Financial Independence, Real Estate, Wealth

Finance Lessons from Flipping Vegas

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“There are only the pursued, the pursuing, the busy and the tired.” ― F. Scott Fitzgerald, The Great Gatsby

For many people out there I am sure you have heard of shows like Flip this or Sell that house.  Many of them are broadcast on A&E. One of these gems was a show called Flipping Vegas.

The show starred real estate investor Scott Yancey and his interior designer wife, Amie Yancey. What made this show stand out was the outrageous personality of its star, Scott Yancey. He could regularly be seen losing his mind over the tiniest of overages to his immensely short time table he gave to flip any house. It made for great television. I felt it was the funniest of all the house flipping shows out there.

Scott would regularly drive around in his Porsche (he loves cars) and go from house to house that he had invested in to inspect properties. His wife, Amie, could usually be found at places like Walker Zanger to purchase materials for all of the homes they were flipping. The couple were constantly bickering about house design, location, and finances. They were a riot.

What I remember most is that Scott was always very concerned about the budget as where Aime was not. She believed that a well-designed home sold itself. However, Scott did not always agree. He would regularly have a fit if she spent extra money or over-improved a house. It was hilarious.

“When you have a foreclosure sign on the house, it’s saying, ‘Vandals, homeless: Welcome. Please strip it,’ ” Scott told The Las Vegas Review-Journal of the properties he purchases. “We’re in a race to get it done and get it sold.”

So, without further ado, I give you what it’s like to flip Vegas.

WHAT IS FLIPPING VEGAS?

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“The houses that are the worst to buy are the ones we save for TV because we know there’s a great storyline with it.” – Scott Yancey

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Flipping Vegas was an American reality television series that aired in the United States on the A&E network for 5 seasons from June 18, 2011 – September 27, 2014. Featuring the husband and wife team, Scott and Aime Yancey. The couple would fix and flip homes in Las Vegas, Nevada. It aired on Saturdays. And ran for 41 episodes.

Meet the real estate players

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Scott and Aime

Vegas was hit hard by the housing crash of 2007-2009. Where most saw disaster, Scott saw opportunity. He would buy low-priced and dilapidated homes in Vegas, fix and flip them quick for a profit.

Setting a quick timetable of about 4 weeks and even shorter budgets of approximately $10,000. A quick fix schedule and low budget is called flipping. Spend less money equals more or maximum profit. His opposite is Aime, who buys high-end finishes that are not in the budget, without telling Scott. Let the fights over the checkbook begin.

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Here is some of the banter on this show.

Real estate agent: Can you all this done in a week? It’s a lot to do?

Scott: I turn and burn these suckers!

Aime: Scott, you’re so cheap.

Scott: Once again you are unconcerned with deadlines and bottom lines.

Aime: Give the house a great design.

Scott: This house is an ugly girl. Put lipstick on her, we’re not giving it plastic surgery.

That’s Scott, always keeping it classy. He works hard and lives his life fast. He likes quick wins and flips. I’ll give him this, at least he always kept it real.

In an interview with the Vegas Sun, Aime said, “I mean, I feel like I’m giving birth to each of them. I know Scott has timelines to turn them around fast, and we butt heads. He sees the bottom line, and I fall in love with the transformation. I can’t stop myself; I really need rehab for designers.”

 They generally work with the same contractors and real estate agents to sell their houses. In addition, will also have multiple trades working on one house at the same time to keep up with Scott’s insane open house schedule (think buying a home, renovating it, and putting it on the market in 7 days). And yes, there was an episode that he tried to do this.

The show got is start from a conversation Scott had with some show business friends where he recounted how he had to pull out his Glock (he’s licensed to carry) on some homeless people that came at him with needles in a boarded up house.  They recorded some footage of him (Scott paid for their expenses) at work and it got into the hands of someone at Lionsgate. That is how his reality show career got started.

Finance Lesson 101: You have to spend money to make money.

ALWAYS EXPAND

Expand. Never contract. – Grant Cardone

One of the best times to start a business is during a downturn. Scott is a businessman who owns a real estate brokerage called Goliath Company. He invests sells, and flips houses. In addition, Scott also was an executive producer of the show and an author. Reality television star is also one of his many titles.

When asked what it was like doing the show Scott stated, “It’s reality TV for a reason, but try working with your wife for 12-14 hours a day. [The producers] know our fans. They love it when I break shit, and that’s my favorite part. If I could take a bulldozer and knock out a shed, that’s great. Take a chainsaw to a wall, that’s great. Demolition is No. 1; drama is No. 2. And then education.”

The best episode I saw and my favorite was the Season 2 Episode 10 show entitled, “Yancey’s Eleven” which aired on February 16, 2013. Scott purchases 11 unfinished villas at Lake Las Vegas for a total of $380,000 and takes on the gargantuan task of getting them all fixed up at the same time.

A&E episode description(www.aetv.com): Scott takes on the biggest flip of his life having purchased 11 unfinished villas in upscale Lake Las Vegas with hopes of flipping all 11 in less than 45 days! It’s a risky gamble that could have a huge payoff…if Scott can manage to bulldoze through some unexpected and high-priced construction roadblocks.

Show me the money honey.

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The couple then began doing seminars. A no-strings attached sort of deal. It started out for free with a preview, but then morphs into a sales pitch. Over three-hours attendees are enticed to pay a $2,000 fee for a second, more intensive three-day seminar. Those who paid and made the investment in the three-day event received yet another pitch to invest in the next level that costs a whopping $30,000.

I, personally, can confirm the first part. I was invited to a Yancey seminar. I went and it was basically someone coaxing and goading you to spend money (not the Yancey’s as they were not there). Basically, it was a high-pressure sales pitch. The free part was just to get butts in the seats. The free meal was a cold sandwich, chips, and a stale cookie. Although, it sounded good, and everyone acted professional. I refused to spend money going to yet-another seminar. After that experience, I swore off all seminars for good.

They said most people did not complete the problem because there was work involved. So, they quit. Customers cry foul. That they were not properly trained. Scam???

Finance Lesson 102: If you are going to expand and ask people for money, then you better bring you’re A-game and deliver.  Better to write a book and sell it for a reasonable price, that provide the details of how you became successful then give people false hope and empty promises. A book is at least tangible.

A GOLIATH OF A TASK

‘Flipping Vegas’

“The main thing is that in TV land, they speed everything up. They [the viewers] think, ‘Oh, wow, it’s a breeze. They come in, and it’s done.’ It takes a long time to put them together, to pick out the fit and finish and work on the quality. They only see a glimpse of it.” – Amie Yancey

Scott started in real estate at a young age. He got advice from a friend to invest his $30,000 settlement from a car crash into real estate as his family was doing. Scott took the advice.

Forgoing finishing college he still found a way to make a million dollars. Even though he almost quit real estate after the downturn, overhearing a conversation between patrons made him change his mind. When he heard how little people were paying for properties in Las Vegas only to start renting them out to tenants, Scott saw a golden opportunity to profit. Why not buy at the bottom?

“At the next table, the discussion revolved around the Las Vegas real estate market and the fact that there were homes available to buy for as little as $36,000 that would rent out for $900/month. Just hearing those two numbers put Scott’s real estate brain into gear. Two things came to mind immediately, ‘You make your money on the buy in Real Estate’ and ‘fortunes are made in bad economies.'” – Scott Yancey

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His task was to buy real estate at the bottom. Things have to hit rock bottom become they come back up. You can capitalize on that. It was risky and things were rough. Like me, quotes were in Scott’s mind: “Nothing great is easy” and “Debt equals drive.” Those helped him. He had this epiphany and ran with it.

Similar to the money epiphany I had in 2017. Once I figured out a way to save more, I began to do so massively. Start where I was at and work my way up. I started by saving $50 a month and then slowing increased my savings every day or month. Now, I save over $13,000 a year and increase that number every year.

Finance Lesson 103: Best time to start a business is in an economic downturn as fortunes are made in bad economies. For instance, when the stock market crashes, that is the time to buy.

COLLEGE DROPOUT TURNED MULTI-MILLIONAIRE REAL ESTATE INVESTOR

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“I’m not a college graduate.” Scott told Vegas Seven. “I went to probably five colleges, and I dropped out of them all. I have ADD. I didn’t come from money. But you don’t need money to be a real estate investor, and that’s what I teach people. I did my first land deal on my own without any of my own money, and I netted $2.3 million. I can relate to most of the people who write to me and say, ‘I’d love to do what you’re doing. I don’t like my job, but I don’t have any money.’ Great, you don’t have to. You’re right where I started.”

Scott was hired as a real estate runner for a real estate attorney named Walther (Walt) J. Plumb III. His salary at that time was $5/hour. Walt ultimately became Scott’s mentor. He also convinced Scott to get his real estate license as his last 3 runners had all become millionaires. He ended taking his advice and making so much money in real estate, that he left college. He was making hundreds of thousands of dollars, which is a lot of money for a guy in his 20s.

He was making so much money for Walt that he decided to strike out on his own.

The $2.3-million-dollar deal allowed him to pay off all his credit cards and buy the care of his dreams, the Porsche. And put a million in the bank. He used his big payday to pay off debt. This is similar to what John Legend did.

See my post Money advice I got from John Legend

You can also regularly hear Scott complain about amateurs on his show.

In an interview with the Vegas Sun, Scott said, “but I think there are a lot of amateur-type flippers who have gotten in in the last little while, and they have short fuses because they’ve borrowed money to their properties. Scott usually pays all cash.

This is what Warren Buffet says about borrowing: “I’ve seen more people fail because of liquor and leverage – leverage being borrowed money.”

This is what I said about borrowing.

See my post Don’t take money too personal

He says, “if you don’t know what you’re doing, leave it to the professionals.”  He stills relies on him and asks his mentor for advice. Looking up the couple net worth online yields results of $5 million each.

Finance Lesson 104: You can be successful without college. However, you need to decide early and when you are young what vocation you are going to do to try and make a living.  

THINGS WILL AND ALWAYS DO CHANGE SO PREPARE

“Flipping is great at first to generate capital, but as an investor, the goal is to take your capital and invest it in rental properties. The rental properties pay you every month. Flipping, you make one payday; you’ll make $100,000 on a good flip. [Investing] that in a rental property [can} make you $5,000 a month. … It’s a lot less work to collect a rent check than to renovate a house.” – Scott Yancey

At one point, in an interview with Vegas Seven, Scott thought that the real estate market would change as it always did. In addition, that there is a false send of high-fiving.

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Most purchases are all cash deals being done by investors. Lots of flippers have left and are out of the flipping market. People are buying and holding, which should be the real estate investor’s endgame. As far as renters for his homes go, he wants good tenants that resign every year and he only takes cash as payment. He also buys near hospitals so many of his renters are ER doctors and nurses. Basically, those with steady reliable incomes and paychecks.

I hear that.

I also read a real estate investing book that said a great place to buy was near college campuses. Get those college rentals going. Not bad advice. Pretty similar to what Scott has done.  

I recently read that the government shutdown has closed up shop 4 times within the last 10 years. That is a huge problem for RE owners. Especially, if this trend keeps up and considering that furloughed contractors don’t get back pay when the government reopens.  

See my post America is the land of loans

Not surprising. A home is only an asset if it can or does feed you. You can only get access to the equity when it’s sold. The only other way to make money is to rent it out. Either by the unit, home, or room. If you want to start a profitable real estate business and become a landlord, then you better have the funds to handle downturns, bad tenants, vacancies, and repairs.

Finance Lesson 105: All businesses need capital.

You can take that piece of advice all the way to the bank.  

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