Category Archives: Financial Freedom

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Automobiles, Financial Freedom, Financial Independence, Investing, Retirement, Saving, Wealth

Expensive Cars Are Masquerading Around As Signs Of Wealth

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Venice, Mask, Red, Carnival, Italy

You ever drive by a neighborhood that ends in Estates or Hills and look in the driveway?

There are usually enough European cars around for these folks to start a dealership down the street and give Audi a run for their money.

You figure places like Beverly Hills, Miami Beach, and New York are places that can afford these types of cars, but what about places you would think those people may not make the type of money it requires to have those vehicles?

Unfortunately, in my few decades on this earth, I have seen things that you would not believe.

Since, many of you out there know my absolute fiscal pet peeve is new car ownership, you understand my ire as I write this.

I can teach you to get rich without having to sign a car loan document or sell your soul. I’m not Ursula. I will give you back your voice.

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I rejected that notion that I must own a luxury car to feel good about myself and feel important. I paid off over $50,000 worth of debt so I could start investing more money in Mr. Market.

The goal was to try to always be increasing my investment portfolio by $20,000-$25,000 or more per year. It took me a decade, but I hit that goal. It’s raining dividends right now. All from just rejecting new car ownership.

I am going to share with you a few car buying horror stories that may very well give you nightmares. So hide the wife. Hide the kids. This is the part in the movie theater where you turn your heads, close you eyes and take a deep breath.

I am about to lift up the hood on the numbers behind what buying new cars will be in opportunity costs in this series of posts on rejecting new car ownership. So buckle up, sit back, and enjoy the ride.

Drip so hard or broke so much

First let me explain what drip is.

It is a slang term many rappers use and there are more or less elaborate definitions of “drip.” Offset and Cardi B use the term to refer to their diamonds and wealth, while Atlanta rapper Gunna told Billboard that “drip” refers to fashion: Drip is your attire, the clothes you wear.

But as rapper 50 Cent has shown us with his bankruptcy filing, looks can be deceiving. Fifty says money in Instagram photos are fake.

For instance, he doesn’t own like 50 Rolex watches or chains, but only rotated the same like three on Instagram because on the world of gram it’s all about appearances.

He also has stated he had $8 million in Bitcoin, but really he owns $0. He just made up $8 million out of thin air! Why put on this show? For likes of course, what else?

Bitcoin, Cryptocurrency, Digital, Money

This is nothing new. People inflate their salaries, income, accomplishments, and credentials all the time. What makes this case so sad is that he is telling the world, not just a few friends having a round of drinks while playing a poker game down at the local watering hole.

I have noticed that once you actually stop looking and start listening to what people have to say about their finances, that is when you uncover the truth. Behind all the expensive cars, clothes, and homes most people are stressed and broke.

What is wealth

I gave my definition of wealth in a previous post. Really it means you can meet all your basic needs and have some left over to last you several decades without you sweating whether or not the bills get paid.

For regular folks, a good week looks like this – there’s milk in the fridge, none of the kids got into a car accident or ran over any mailboxes this week, and all the bills got paid on time.

Image result for milk in the fridge gif

For the wealthy, a good week looks like this – enough food in the cupboards to feed an army, you taking the Rolls to work this week cause the Jag is in the shop being detailed, and you earned more in dividends than you spent last month.

Wealth is every bit as good as it sounds. Let us see the other side of the coin and how the lack of having enough coins can cause despair.

Dream cars are only for those with money in the bank

Here is where the horror stories are about to begin folks.

Brace yourselves.

I knew a guy who loved his dream car so much that it was keeping his bank account in the red. Let’s call him Edgar. Edgar grew up without a father. At one point, he was living in a shelter. After years of toiling in the salt mines, he was able to get an apartment and get on better financial footing.

At the ripe old age of 28, he decided to “treat himself” because he “deserved it” to a $30,000 BMW convertible and eventually he got a girlfriend to ride in that car beside him.

He felt that he had paid his dues so he should have a nice car.

Image result for bmw driving gif

I don’t know about all of you out there, but I look at paid dues as 10, 20, 30, or 40 years of busting your hump to build a security and a solid foundation for your future self and family. Buying a luxury car that costs $500 a month is not the way to having a life of abundance.

How else could he have spent that money?

Let’s say he saved up the $30,000 ($6,000 a year over five years) by taking public transportation to work and invested that money instead of trying t impress people with his wealth…er uh I mean debt that is masquerading as wealth in the form of a nice financed luxury vehicle. He could have also saved up a few tax returns and got a beater to get back and forth to work.

If you save $100.00 per month your savings may grow to $731,411.74 after 30 years. This includes a starting balance of $30,000.00 and a 10% annual rate of return.

Starting amount$30,000.00
Years30 years.
Additional contributions$100.00 per month
Rate of return10% compounded annually
Total amount you will have contributed$66,000.00
Total interest$665,411.74
Total at end of investment$731,411.74
YearAdditionsInterestBalance
Start$30,000.00 $30,000.00
1$1,200.00$3,064.06$34,264.06
2$1,200.00$3,490.46$38,954.52
3$1,200.00$3,959.52$44,114.04
4$1,200.00$4,475.46$49,789.50
5$1,200.00$5,043.01$56,032.51
6$1,200.00$5,667.32$62,899.83
7$1,200.00$6,354.01$70,453.84
8$1,200.00$7,109.45$78,763.29
9$1,200.00$7,940.38$87,903.67
10$1,200.00$8,854.41$97,958.08
11$1,200.00$9,859.87$109,017.95
12$1,200.00$10,965.86$121,183.81
13$1,200.00$12,182.43$134,566.24
14$1,200.00$13,520.67$149,286.91
15$1,200.00$14,992.74$165,479.65
16$1,200.00$16,612.02$183,291.67
17$1,200.00$18,393.24$202,884.91
18$1,200.00$20,352.54$224,437.45
19$1,200.00$22,507.80$248,145.25
20$1,200.00$24,878.59$274,223.84
21$1,200.00$27,486.45$302,910.29
22$1,200.00$30,355.08$334,465.37
23$1,200.00$33,510.59$369,175.96
24$1,200.00$36,981.65$407,357.61
25$1,200.00$40,799.79$449,357.40
26$1,200.00$44,999.79$495,557.19
27$1,200.00$49,619.76$546,376.95
28$1,200.00$54,701.76$602,278.71
29$1,200.00$60,291.92$663,770.63
30$1,200.00$66,441.11$731,411.74

Back to Edgar’s story.

One night while going to see his soon-to-be ex-girlfriend, he was so tired (he would get tired doing like two sit-ups) that he fell asleep at the wheel. He got into a major accident, the car was in the repair shop for months, BMW lent him a loaner, him and the girlfriend broke up (she may have been with him for the car) and he got to drive that DREAM car for all of like 8 months!

He did eventually get it back, but I noticed that every couple of months or so the car would have an issue and need to go in the shop.

He bragged how he was so smart to get an extended warranty or the repair bills would be like $2,000 or more. However, what he is failing to realize is that when that warranty runs out, you will be the one paying those expensive repair bills because luxury comes at a price. A very expensive one.

Last time I laid eyes on him; he still had that car, was still single, and had moved into a more expensive apartment. Instead of investing money, he spent every dime and his bank account stayed on empty.

If he would have been willing to give up the car, he could have saved a small fortune. I tried to run the numbers with him, but he wasn’t really interested. Little did he know that his dream car was turning his life into a nightmare.

After he lost his job, he couldn’t afford to make the payments. His mother had to step in and help him. Maybe if he put the money he spent on those expensive Xbox video games in the bank instead, he might have had the money to pay his bills himself. He needs to keep that devil-may-care attitude in the video games where it belongs.

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Dante in Devil May Cry for Xbox

And his motto was “live for the day.”

Image result for nightclub dance gif
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If living for the day means being broke for a lifetime, I’ll pass. He may have had a great car that made him feel like he had arrived and look like he had money, but he was really BROKE.

Do cars really equal freedom or are they a debtor’s prison on four wheels

I have owned only two cars in my entire life.

They are expensive money-pits with all-wheel drive.

I have seen people spend so much money on car repairs that it makes me want to cry. I have also seen people own three, five, or even seven cars by the age of 25!

Many people never even go on to pay the car off. They just roll over negative equity onto the latest new car purchase. Putting them in a never ending spiral of debt payments.

And do not even think about not purchasing gap insurance.

Gap insurance is an optional, add-on car insurance coverage that can help certain drivers cover the “gap” between the amount they owe on their car and the car’s actual cash value (ACV) in the event of an accident.

Even this can be something only the well-heeled can afford.

Gap can cost hundreds or thousands of dollars additional on top of what you are paying to purchase your vehicle. It must be paid for up front at the time of vehicle purchase. If you cannot pay out of pocket, they will add it to your loan. You are now paying interest on this insurance coverage.

Why do you need gap? I have a friend. Let’s call her Pam. Pam likes nice cars. However, Pam is in-between jobs right now, is several months behind on mortgage payments, and has been in two car accidents in two years.

At one time, she owed an Audi. When a maintenance issue arrived and the repair bill came in at $3,000, she couldn’t afford it so she sold it.

Speaking of repair bills, I have heard stories of people leaving the Jiffy Lube or car dealership after getting the repair quote, which they cannot afford, then go on to say, “I know someone that will do it for cheaper” or “I’ll fix it later” or “I’ll take it to my mechanic.” All just mean the same thing: Broke.

When you cannot pay the repair bills on your car, then how can you possibly afford to save for retirement?

Getting back to Pam, she ended up with gap insurance from a third party. Therefore, she was going back and forth trying to get the money for the car for over four months!

I don’t know many folks that can go without a car for this long. Her quality of life immediately went down. You could feel it with every passing month when you were around her.

One word. I will give you one guess. You give up? It rhymes with repair. Of course I mean despair.

She also has no cash savings and no retirement.

She was very young at the time. Maybe 22. This is what she could have done if she saved up that money and invested it instead.

If you save $100.00 per month your savings may grow to $1,464,646.73 after 40 years. This includes a starting balance of $20,000.00 and a 10% annual rate of return.

Starting amount$20,000.00
Years40 years.
Additional contributions$100.00 per month
Rate of return10% compounded annually
Total amount you will have contributed$68,000.00
Total interest$1,396,646.73
Total at end of investment$1,464,646.73
YearAdditionsInterestBalance
Start$20,000.00 $20,000.00
1$1,200.00$2,064.06$23,264.06
2$1,200.00$2,390.46$26,854.52
3$1,200.00$2,749.50$30,804.02
4$1,200.00$3,144.46$35,148.48
5$1,200.00$3,578.92$39,927.40
6$1,200.00$4,056.80$45,184.20
7$1,200.00$4,582.47$50,966.67
8$1,200.00$5,160.72$57,327.39
9$1,200.00$5,796.80$64,324.19
10$1,200.00$6,496.47$72,020.66
11$1,200.00$7,266.12$80,486.78
12$1,200.00$8,112.74$89,799.52
13$1,200.00$9,044.00$100,043.52
14$1,200.00$10,068.42$111,311.94
15$1,200.00$11,195.25$123,707.19
16$1,200.00$12,434.76$137,341.95
17$1,200.00$13,798.25$152,340.20
18$1,200.00$15,298.06$168,838.26
19$1,200.00$16,947.87$186,986.13
20$1,200.00$18,762.67$206,948.80
21$1,200.00$20,758.93$228,907.73
22$1,200.00$22,954.83$253,062.56
23$1,200.00$25,370.31$279,632.87
24$1,200.00$28,027.34$308,860.21
25$1,200.00$30,950.07$341,010.28
26$1,200.00$34,165.09$376,375.37
27$1,200.00$37,701.60$415,276.97
28$1,200.00$41,591.74$458,068.71
29$1,200.00$45,870.92$505,139.63
30$1,200.00$50,578.02$556,917.65
31$1,200.00$55,755.83$613,873.48
32$1,200.00$61,451.41$676,524.89
33$1,200.00$67,716.54$745,441.43
34$1,200.00$74,608.19$821,249.62
35$1,200.00$82,189.02$904,638.64
36$1,200.00$90,527.91$996,366.55
37$1,200.00$99,700.71$1,097,267.26
38$1,200.00$109,790.79$1,208,258.05
39$1,200.00$120,889.85$1,330,347.90
40$1,200.00$133,098.83$1,464,646.73

I have actually seen people own multiple cars even though they can only drive one at a time. However, you have to maintain and insure all of them. Just give up the ones you are not using and fund your retirement with that money.

Instead of that money going into a 401k, the lender and insurance company was getting rich off these never ending payments they receive. Put that money to work for yourself by investing it.

Tow truck companies are winning

Image result for parking wars

Have you ever seen that show on A&E called Parking Wars? Some of the saddest things I have ever seen to do with cars was on that show.

The struggle is real in the city of brotherly love. So many people in Philadelphia were getting their cars towed and booted for failure to pay parking tickets it was crazy.

Those meter maids were making like $20,000-$30,000 a year and they were on a mission! Giving out those tickets like gumdrops! And making revenue for the city in the process.

I have seen and heard some stories so heartbreaking it made my eyes start watering. I have seen or heard people lose their jobs, then their homes, and finally get their car repossessed with all their belongings in it.

One guy came out running to his car while they were lifting it on the tow truck. He had almost every valuable possession he owed in that car including the photo albums of his deceased family members.

All he asked is if he could go in the trunk and get his stuff (clothing, personal hygiene, photos, credentials). The tow driver said no.

Unfortunately, once the car is on the lift, it can’t be stopped unless you pay or have already paid and can PROVE IT!

Image result for prove it gif

And that guy went from being homeless and living in his car, to being homeless on the street.

I have seen people give up their cars due to debt, gambling, substance abuse, you name it.

I know someone who saved up $8,000 and sink every penny into a new car just to have a $100 lower monthly payment. Never mind that she was still living with her parents at the age of 42.

I have also seen people have to choose between paying the gas, electric, or phone bill on-time or pay the car note.

I even had an ex-coworker get her car repossessed twice! She just had to have an SUV. She was making like $12 bucks an hour at time and was only 20. She destroyed her credit and the possibility of home ownership for at least a few years just for the sake of looking rich instead of actually saving towards becoming rich.

She was broke. She had no wealth whatsoever! The little she had, she mailed in monthly installments to Chevrolet.

Society would like you to believe that owning a nice brand new luxury car will make you look like you have achieved success.

It really only means someone has allowed you to borrow money from them and pay them back with interest for the privilege of loaning you their money.

Real wealth cannot just been seen by the naked eye in the form of fancy condos, clothes, jewelry, furs and luxury cars. It is usually shielded from prying eyes in the form of investments and inside bank accounts.

For most folks, a luxury car does not mean you have wealth; it means you have debt. Reject new cars like I have and I promise you will actually start to build wealth.

Scouts honor.

Automobiles, Financial Freedom, Financial Independence, Investing, Wealth

Rejecting Buying New Cars Has Made Me Richer

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Car, Sedan, Luxury, Vehicle, Automobile

The other day I overheard people talking about being 90 days late and past due…blah blah blah I couldn’t make out the rest, but I heard enough to fill in the blanks. Debt, debt, and more debt.

Two of the biggest culprits are house and car loans. Some may disagree with me, but cars are wealth killers! At least Dave Ramsey agrees with me.

Then it hit me.

After three years of blogging, I found my niche.

This blog is really all about rejecting new car ownership to become financially independent (FI). That’s right. I refuse to buy new cars so I can become FI.

Previously I have spoken on the topic of why I can’t stand buying new cars and instead put that money in stocks thereby earning myself $100k in Mr. Market by ending my car payments.

When I hear people complain about having no money but paying $600 a month for their car, all I hear is the same sound Charlie Brown’s teacher makes. Cut the excuses!!!

Image result for charlie brown wah wah gif

Obviously, reminding people why they should reject buying a NEW CAR bears repeating.

Do BMW’s really equal happiness

To drive a brand spanking new car out on these streets today, it will cost you about $554 a month; as that is the average car payment in the U.S. according to Experian.

However, you and I both know that those are small potatoes compared to what some folks are shelling out. We gotta Keep Up With The Joneses’ today or life just plain sucks!

There are now new luxury vehicles coming off the assembly line with an MSRP of $80k! MSRP stands for the Manufacturer Suggested Retail Price — also known as “sticker” price — which is a recommended selling price that automakers give a new car. A dealer uses the MSRP as a price to sell each vehicle; it’s different from invoice price on a car, which can stand thousands below the sale price.

Vehicles have become so expensive that dealerships are offering 84 month car loans! I have no intention of owing the man that type of moola.

Especially, considering that the REPO Man is out there lurking in the shadows, ready to take my car if I miss even one single car payment.

Image result for cruella driving by gif

And BTW the REPO Man tends to show up at the worst possible times; such as when you are already 20 minutes late picking up your kids from soccer practice, while the Walgreen’s pharmacy is texting you that this is the last day to pick up your $600 EpiPen or else it goes back on the market.

I actually have a friend that was unable to continue making payments on her BMW. Before, we get into this story here is a little background. She owns a home with an ARM and payments can fluctuate wildly from $1500 to $2400, is finishing her bankruptcy payments, and calls herself a Glam Ma and not Grand Ma.

She used to use dating apps after her divorce, but stopped after one guy told her he was looking for a place to stay. Hard pass. No more Bumble Bee for her! She likes her independence. Always has, always will.

For instance, her son recently asked if his mother would be willing to watch his newborn infant after she is born to save on daycare costs, which is astronomical in America and can cost people one whole paycheck, to which she replied, “not unless she got ID to sit with me at the bar on Friday’s, then no I can’t watch her.”

Getting back to the car situation, she decided to stop all car payments due to financial constraints.

Therefore, she stopped paying for two years.

Two whole years!!!

Since she knew she could no longer afford it; she just strategically stopped paying and put that money towards other obligations. The same way a squatter strategically walks away from an underwater mortgage. No reason to raid the retirement accounts and then end up completely broke now is there.

Anyhoo, she kept the car clean and left nothing in it in case the repo man ever showed up to take it. Well that day finally came and they took it right out of her driveway.

She then decided to hail cabs, and take Lyft and Uber rides until she got her tax refund and then she bought her next car with cold, hard cash baby! Lesson learned. If you own it, no one can take it.

Setting money on fire

Image result for setting money on fire gif

Cars are making people go broke. SUV’s are some of the priciest on the market.

And Americans LOVE their SUV’s.

They are willing to SHELL out the big bucks here and dealers know it. Why do you think they stopped making Mitsubishi’s, GM stooped making Pontiac’s, and Ford stopped making compact cars? It is because they are not making money on moderately priced vehicles.

According to Business Insider, Ford made a game-changing decision in April when the company announced it would dissolve its entire line of sedans and compact cars that includes Focus, Fusion, Fiesta, and Taurus by 2020. Other cars that will be discontinued this year and beyond include the Alfa Romeo 4C Coupe, Chevrolet Sonic, and Cadillac ATS.

Maybe this is why Aston Martin has rolled out its latest car with a pricetag of this: New $189,000 SUV.

You could wind up spending $2500 a month just to own this luxury monster!

Let’s do a little math

I’m going to pull back the curtain on this and show you why you need to take off your BMW rose-colored glasses.

Buying a 2020 BMW truck will cost you about $176,000 after all is said and done.

Item

2020 BMW X6 SAV M50I AWD

Interest:

Maintenance:

Gas:

Total Cost over 7 years:

Cost

$104,095

$104,095 x 3% = 31,228 BMW of Alexandria website

$3,122.85 x 7 = $21,859.95 Setting aside 3% of purchase price

$50 x 52 = $2,704 x 7 = $18,928

$176,110.95

You get to basically drive to work, the grocery store, gym, and Pottery Barn for the low, low price of almost the cost of a house in Georgia.

20 Marietta St NW Unit 6B Atlanta, GA 30303

$179,000 Price 2 Beds 2Baths 1,156 Sq. Ft.$155 / Sq. Ft. Redfin Estimate: $175,558 On Redfin: 70 days Status:  Active

20 Marietta St NW Unit 6B
Redfin Listing

That is also more than three times the median salary of an American adult making $56,000. Even Rappers are buying into this crap before the ink is even dry on that million-dollar deal they just signed!

This is a clip from way back in 2003 from Dame Dash (who has his own money issues; he can’t afford and is too cash poor to pay $2400 in a lawsuit due to his paychecks being garnished by creditors to pay off debt).

That video came out the same year I bought my car.

Maybe if I had seen this, I would have done something different.

Hopefully seeing this here will help all of you out there.

Put that money into Mr. Market

I know this is the part where your eyes glaze over but please bear with me.

Related image
Image result for charlie brown wah wah gif

Here’s my story. In 2003, I decided I needed a new car. BIG MISTAKE! I previously had an Nissan Altima that cost about $8k and I was paying $229 per month for it. Then it started having problems so I decided to trade it in for a new Ford Explorer.

Original MSRP was $30k, but I got it on sale for $24,000. Stupid. I had a negative equity balance on the Altima so I rolled it over onto the new loan. I went from owing $6k to $32k in the span of 5 hours at a car dealership from the time I walked in until I signed the papers.

The payment on the Explorer was $448.65 a month for about 5-6 years. Therefore, from 2003-2009 I was paying on this car instead of investing that money in Mr. Market. DUMB!!!! For 6 whole years, I could not do much of anything because the car payment was always due.

Want to go on that trip to Dominican Republic? Sorry guys, can’t do it. The gas guzzler has got to get paid.

Want to buy new socks and clothes because yours are worn out and have holes in them? Sorry, no can do. The car note is due on the first, which is same time as the rent. Sucker! They got me good.

I was even paying over the phone for faster processing at the tune of $5 a pop!

All that changed once I paid it off. I got down to $1500 and just paid it off. I was free b#tche$!! Can’t nobody hold me down…oh no…I got to keep on moving!!!

I haven’t had a car payment in over 10 years! Not since Steph Curry was selected as a draft pick in the NBA.

I took that money and started investing in stocks. Before I know it, I had like a couple hundred grand in Mr. Market just from rejecting new car ownership.

How would you feel having $200,000 working for you everyday 365/24/7 in the market paying you just for having a pulse?

Financial Freedom, Financial Independence, Investing

Why Investing Is Like Owning Park Place With A Hotel

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Image result for monopoly park place with a hotel
PHOTO: ISTOCKPHOTO

It was a typical day.

The birds were chirping. Car horns are honking. The sun is shining.

Nothing extraordinary.

Then I decide to look at one of my retirement accounts, when lo and behold, I saw $466 in capital gains I earned the end of December last year. This was a surprise because I wasn’t expecting to earn much on the account as I was in the early stages of still building this one up.

Looking at some other accounts, I learned I gained over $25k! Not too shabby.

Let me illustrate how investing can turn you into a millionaire.

A millionaire is built by attracting $1 dollar at a time

If you save $24,000.00 per year your savings may grow to $1,070,380.15 after 17 years. This includes a starting balance of $0.00 and a 10% annual rate of return.

Starting amount$0.00
Years17 years.
Additional contributions$24,000.00 per year
Rate of return10% compounded annually
Total amount you will have contributed$408,000.00
Total interest$662,380.15
Total at end of investment$1,070,380.15

Therefore, if you start with nothing and decide to max out your 401k for 17 years, you are now part of the double comma club! You can see the numbers below.

YearAdditionsInterestBalance
Start$0.00 $0.00
1$24,000.00$2,400.00$26,400.00
2$24,000.00$5,040.00$55,440.00
3$24,000.00$7,944.00$87,384.00
4$24,000.00$11,138.40$122,522.40
5$24,000.00$14,652.24$161,174.64
6$24,000.00$18,517.46$203,692.10
7$24,000.00$22,769.21$250,461.31
8$24,000.00$27,446.13$301,907.44
9$24,000.00$32,590.74$358,498.18
10$24,000.00$38,249.82$420,748.00
11$24,000.00$44,474.80$489,222.80
12$24,000.00$51,322.28$564,545.08
13$24,000.00$58,854.51$647,399.59
14$24,000.00$67,139.96$738,539.55
15$24,000.00$76,253.96$838,793.51
16$24,000.00$86,279.35$949,072.86
17$24,000.00$97,307.29$1,070,380.15

Grow your net worth with Real estate and REIT’s

During the Great Recession, the subprime housing market destroyed property values all over the country.

Since most Americans net worth is tied to their homes, around 50% or more, this caused many people to delay retirement because their homes were now worth less than the mortgage owed on them.

Warren Buffet even said that homes were selling for so cheap in some markets that if he had the time and resources to manage them, he would buy hundreds of thousands of homes to collect the rent on them.

Might I suggest an alternative to active real estate investor, passive real estate investing with REIT’s; a real estate investment trust (“REIT”) is a company that owns, operates or finances income-producing real estate. 

Approximately 87 million Americans invest in REIT stocks through their 401(k) and other investment funds. REITs must pay out at least 90 % of their taxable income to shareholders—and most pay out 100 %. In turn, shareholders pay the income taxes on those dividends.

mREITs (or mortgage REITs) don’t own real estate directly, instead they finance real estate and earn income from the interest on these investments.

The reason I love Park Place so much

I know that everyone wants Boardwalk with a hotel because it makes you the most money in the game, but Park Place is the first stop on the tour.

You have to pass that to get to Boardwalk.

However, there are times when you roll the dice and land on Park Place and then hit a two and land on Boardwalk! Cha ching!

Park Place sets up the psychological warfare that I never could.

You land on my property and have to pay me $1500 for Park Place and $2000 for Boardwalk. That is $3500 bucks!

MONOPOLY BOARDWALK TITLE DEED POSTER - 12" X 18" - REALLY COOL!

You now see the reason why people own real estate. You can make some serious cash collecting rent and it seems to come around on the first of every month over and over and over again.

Once you put in the work to own the property and maintain it, it starts to spit off cash flow and feeds you.

If you look on the Monopoly Park Place deed, you will notice in the beginning you only collect $35 in rent with no houses or hotels. As you start owning more properties, you start collecting more in rent.

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If you cannot stomach the thought of waking up at 3 am to a phone cal about a clogged sink or toilet, then you can hire a property manager or just stay passive and invest in REITs instead.

Why you should invest

It’s simple. You should invest because it can make you rich.

Consistent investing has proven to turn people into millionaires over time. You could do the following:

  • Collect teeny tiny amounts of interest from your checking account with your local bank
  • Put your money under a mattress where it earns $0
  • Invest in Mr. Market and let compound interest do its thing

No pressure.

Think of me as your fiscal Yoda.

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Here to guide, I am.

Much to learn about investing, you have.

May the fiscal force be with you.

Financial Freedom, Financial Independence, Investing, Saving, Television Shows and Money

You Can’t Do That On Television Or With Your Finances

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Never spend your money before you’ve earned it. – Thomas Jefferson

If I could rub on Aladdin’s lamp, I would wish for world financial literacy. Oh…And world peace.

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However, what I really want is for more people to get involved with the family finances and build generational wealth for their future.

Within the last 72 hours, I have read that college students are unable to afford housing in Sacramento, Forever 21 went bankrupt, WeWork will be letting go of 2,000 employees, Sports Illustrated (SI) sacked half the staff.

In addition, that there is also an aging population and a doctor shortage due to issues with stress, debt loads in the $200,000-$500,000 range, not to mention under funding of residency programs; and that most of the growth in the job market is concentrated in only two areas: health services and education.

What your job is, should you choose to accept it, is to keep as many dollars in your bank account as possible. Unlike Tom Cruise’s message in Mission Impossible, this message will not self-destruct in five seconds.

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If this were a financial hospital, I would want you to form a triage and determine which parts of your finances need most immediate care. Your bank account is the heart of your finances so let us perform a little CPR. Greenbacks Magnet style of course. This post is all about letting you know what you cannot do with your finances in order to grow your nest egg to a fortune. This reminds me of a sketch comedy show called You Can’t Do That on Television. Let me explain.

You Can’t Do That on Television is a Canadian sketch comedy television series that first aired locally in 1979 before airing in the United States in 1981. It featured preteen and teenage actors in a sketch comedy format similar to that of American sketch comedies Rowan & Martin’s Laugh-In and Saturday Night Live.

What I loved most about this show was that they would always say what you could not do followed by some hilarious punishments such as being covered in green slime. And nobody wants that! Who wants to have to wash all that slime out of your hair?

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Let’s pretend that everywhere you go there is a bucket of green slime waiting to be poured on your head for any financial missteps that you make. You may think twice about maxing out that credit card or renting that posh pad in the SoHo district for $4,000 a month. I’m just saying.

Here is a list of things that you cannot do with your finances:

  • Upgrading to First Class on credit
  • Maxing out credit cards
  • Using Payday Loans
  • Overloading on Student Loan Debt such as paying $100,000 for a Sociology degree
  • Buying a car that costs more than your annual income
  • Paying for a family member’s vacation to Disneyland on your credit card because theirs is maxed out
  • Taking out Personal Loans for more than you can afford to repay
  • Buying a home for more than four times your salary
  • Spending on fancy jewelry
  • Going on shopping sprees at the mall just because its Tuesday

Now that we have gotten that out of the way, let’s talk about what you can do with your finances. The list is short and quite simple:

  • Save until it hurts aiming for 50% of your after-tax income
  • Invest in index funds such as the VTSAX at Vanguard
  • Open up a Roth IRA
  • Max out your Roth IRA

And that’s about it.

I know what you’re thinking. That’s it?! The list for what not to do was more than twice as long.

That is because there are endless ways to spend money, but the road to wealth is quite simple. Spend less than you make and invest the difference. Therefore, if your take-home pay is $75,000 a year and you spend $50,000 on living expenses, then you should invest $25,000 a year. No matter what the numbers are, the goal is the same. The way to get to your destination may change, as life happens, but keep the goal.

I must now bid you farewell. Do not worry. I will not be far away. I am only a tweet away.

This is not goodbye. As they said in the 1987 He-Man film, Masters of the Universe, we Don’t Say Goodbye, we say Good Journey.

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I will be your Yoda on this money journey.

And may the odds be ever in your favor.

I salute you.

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Celebrities and Money, Financial Freedom, Financial Independence, Retirement, Saving, Self-Made Millionaires, Wealth

Fiscal Age Ain’t Nothing But A Number

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Architecture, Building, Concrete

I want people to remember me as a full on entertainer and a good person. – Aaliyah

In case you have not already heard the news, the late superstar Aaliyah has her very own Madame Tussauds Wax Figure in her likeness from the Try Again Era.

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Madame Tussauds for VIBE
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Although, Aaliyah is gone she is not forgotten.

Therefore, this next post is titled in her honor. This post is named after her first ever record, Age Ain’t Nothing but a Number which is the debut studio album by American singer Aaliyah. It was released under Jive and Blackground Records on May 24, 1994, in the United States.

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I learned a lot from watching Aaliyah work so hard in her youth.

Like her, I want to be remembered as well, although as a full on financial blogger and a good person.

So let’s get right to it and start talking money.

When in doubt: save.

Don’t ever let anyone tell you what you cannot do or accomplish.

People have said to me the following:

You’ve been in school forever. Are you ever going to graduate?

Are you in school finishing your associate degree, because I know the bachelor’s takes a long time so you are probably only halfway done right?

You should write a book or something? Are you ever going to do that?

It is impossible to save any money. Is it possible to save thousands?

Winning the lottery is a great way to get rich. Do you play?

You should go for the Master’s degree. Why a second bachelor’s?

Why get a 2nd Master’s degree? Why not go for the doctorate?

You really have no car payment?

You’ve gained a little weight.

You’ve lost weight.

You have been saving forever, you are not ever going to buy a home.

I laughed at all these questions and comments.

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This is my life. I set the pace. No one else. I control my destiny and the outcome of my life. I control the narrative.

And just to set the record straight, I did finish my bachelor’s and Master’s degrees. So take that haters. In addition, I also bought a home, started a daily exercise routine, a health and wellness regimen, started a blog in 2016, wrote an eBook in 2019, paid off my car in 2009, don’t play the lottery, and learned to save thousands by not shopping or taking fancy vacations.

And after I paid off my car, this is how I felt. Just like Katelyn Ohashi at the ESPYs. And like in her acceptance speech that night, I too had made a reference about Cardi B.

Paying off debt and saving. This all took many years. Like over a decade to accomplish. I know folks are out there retiring at like 27. But guess what? Life is full of ups and downs, but I never let my goals be far from my mind and kept them in sight because whether you retire at 22 or 62, fiscal age ain’t nothing but a number.

Safe to say, I set out to conquer every mountain or hill that was put in front of me. Yea baby!! I feel like dancing!!!

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Life is complex. No one has all the answers. No one has a crystal ball to see the future. But reading up on the past has let me make some great predictions on what I think will happen.

For instance, after reading books on history, finance and biographies such as Arnold Schwarzenegger, Daymond John, Bruce Lee, Dale Carnegie, Pat Benatar, Sean “Puffy” Combs, Warren Buffet, Ben Stein, Tony Robbins, Jennifer Lopez, Rihanna, Dave Grohl, Kevin O’Leary, Barbara Corcoran, Dwayne “The Rock” Johnson, and countless others, it is safe to assume the following:

  • Financial markets are cyclical. About every 10-20- years the market corrects itself and there is a recession. Plan accordingly.
  • When stocks go down, buy more.
  • Save until it hurts. Something like 50% or more of your income.
  • Things will get more expensive in the future.
  • You can expect inflation to average at least 2-3% a year.
  • Investing in real estate tends to yield good results over many years.
  • If you do nothing else in real estate, at least purchase your primary residence.
  • Buying franchises is expensive.
  • Find your talent and exploit it for profit. If you are a good mechanic, then charge a good and fair price for your work.
  • Never undervalue yourself.

I truly believe optimism is the key to happiness. I am always in a good mood. Laughter is always a part of my day and life.

My mind is always full of ideas, my eyes are clear and my heart is full.

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I can’t hear you!!! Say it with me now!! Louder!!! Say it like you are in a stadium full of screaming football fans and Antonio Brown is out there running drills and scoring like he did on an episode of HardKnocks! So say it loud for me! One more time for the cheap seats in the back!!!

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When people start complaining, I always feel that they should also provide solutions to their problems. I believe in being solution-based.

One of the greatest joys of my life is speaking my mind. I have done this since I was a little girl. I hold nothing in or back. I am always respectful, but I set clear boundaries on how I let people treat me. I respect others so I expect the same treatment in return. Instead of holding back, I dive in. Speaking your heart is a great way to free yourself from the constraints of life. You have to tell people what you want if you ever expect to get anything. SO SPEAK UP!!

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In this life, you have to keep going. There is no time to rest on your laurels. No pity parties here. If you want financial independence, then you must fight for it. You have to work your butt off for it. Even if it takes, 10, 20, 30, or 40 years. My goal is to have at least $2 million in assets before I retire. Over 10 years later, I am still working on that goal. NEVER GIVE UP ON YOUR DREAMS AND YOUR GOALS!!! If you fall down, get up! You get up, dust yourself off and like Aaliyah said, “try again.”

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Best of luck to you all in your fiscal adventures.

Celebrities and Money, Entrepreneurship, Film Reviews, Financial Freedom, Financial Independence, Saving, Self-Made Millionaires

Fiscal Gentleman Are Tailor Made: Money Lessons From Keanu Reeves John Wick

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Fashion is the vocabulary of the wealthy. – Evan R. Lawson, Royal Pains

Keanu Reeves is arguably one of the most stylish and successful actors of a generation. His latest film John Wick 3: Parabellum earned over $300 million dollars at the box office spawning another sequel from Lionsgate for a John Wick 4 coming on May 21, 2021. So if you haven’t heard the news already then you’re hearing it here first! BREAKING NEWS: John Wick 4 is coming!

His hugely successful career has made him a bankable action star with an estimated net worth of over $350 million.

Let’s find out out millionaires are minted and tailor made.

There are three John Wick movies, so I will give you three money lessons.

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The Continental in New York
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Lesson One: If you’re going to do something, then you may as well look good while doing it I love this Buzzfeed interview with Keanu Reeves or KR as they refer to him. It is a film about suits. A ballet of bullets. Those suits are pristine mortuary chic.

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Custom made finely tuned works of art in clothe. It adds to the prestige and dark mystic of the film.

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The costuming and fashion is top notch. Definitely reminds me of suits I have seen on other men that come straight from suit designer to the stars Savile Row in London England.

Savile Row, founded by Henry Poole in 1846, bespoke suits are so popular that shops in that district have received the Royal Warrant (seal of approval from HRH the Queen of England or Prince Charles) to outfit the royals and all those who wear a crown. Getting a thumbs up from The Crown of England is no small feat as you have to be the top 0.01 percent of your craft.

Savile Row is the world’s most famous suiting street as reported by Maxim where suits on Savile Row can start at $5,000.

And speaking of Maxim, the magazines late founder Felix Dennis had some great advice on money. Considering he was worth an estimated $400 million, I would say listen to what he has to say.

The top financial advice he offers is to always pay your taxes. In addition, he states the following:

“To become rich you must be an owner. And you must try to own it all. You must strive with every fibre of your being, while recognising the idiocy of your behaviour, to own and retain control of as near to 100 per cent of any company as you can. – Felix Dennis, How to get rich “

If it flies, floats or fornicates, always rent it. It’s cheaper in the long run.” ― Felix Dennis

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Now back to the suits.

The suits designed for this movie are no exception. They almost take on a life of their own. This movie would make Barney Stinson (Neil Patrick Harris or NPH for short) of How I Met Your Mother proud. He was known on HIMYM for constantly wearing suits and saying suit up.

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John Wick #1 or JW1
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JW2

One of my favorite things in this film are the manners. Everyone is respectful and well-mannered even when fighting or speaking with enemies. Parlay? haha This reminds me of that scene in the 1979 film The Warriors.

Anyway, I love a man in a suit. Any suit really. Or uniform. Uniforms means a man is employed. And a retired man means he has income. Wink, wink.

A man that can balance a check book, hang a suit (look good in it that is), and has great manners is my kind of guy! I’m just saying. Like any good host, in the film you regularly see people treat each other with human decency, courtesy, and respect.

Lesson Two: Save money and build up your savings muscle There’s my girl Halle Berry. You know in my previous post I wrote about why she and I continue to save so much.

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If you want to be a fiscal gentleman or lady, you must learn to invest your money.

You have to learn to move the needle on your savings and investment accounts the same way you do when you fill up on a tank of gas.

For more info on your girl Greenbacks Magnet money tips and tricks check out my interviews on the websites Financially Alert and Think Save Retire.

That is why I started with saving $1 a day and slowly went upwards to $13,333 a year. Now that is what I call upward savings mobility. It took years to do this. You think Keanu can do all those stunts without proper training?

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I once read in a magazine interview that he said to pull off The Matrix stunts he had to do two hours of stretching. It took months of work and preparation including weapons and martial arts training.

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A retrospective look back at Keanu.

1999: I need guns. Lots of guns.
2017: I need something Robust… Precise.
2019: I need guns. Lots of guns.

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Man has he evolved. haha

Therefore, you need to understand that it could take years to build your fortune. You must have patience or it will eat you up inside to try to get rich quick.

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Lesson Three: Make sure you have a safety cushion and that people owe you a favor because time is always of the essence

One the most intense parts of JW3 is his constant looking at his watch in the beginning of the film. As time is ticking by and he is in short supply of it.

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The intensity and emotions you feel in those scenes are the same way I want you to feel when it comes to paying off debt. It must go.

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Another part of this film I like was when you saw he had a stash of things he needed hidden in a book at the library. This is classic if you don’t want people to find something, then hide it in the books rhetoric.

It is always good to have a hidden nugget or money stash just in case. I explore that topic further in my post on Disney’s film National Treasure and Money Lessons I Learned From Scrooge McDuck.

And last but certainly not least, always make sure someone owes you a favor. I am known to help people out and at times ask for a favor in return.

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Life is about building relationships, or so Ryan Reynold’s character Van Wilder says; therefore, it is in your best interest to help your fellow man. There may come a time when you need to ask for help.

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People are 90 percent more likely to help those that have previously helped them in the past. So if you get a chance help others because remember that time in finite and you must show people today how you feel as tomorrow may be too late.

Good luck on all your money endeavors!

I’ll be seeing you.

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