Category Archives: Wealth

Budgeting, Saving, Wealth

How to give yourself a $6,000 a year raise

Gallery Leave a comment

“To hell with circumstances; I create opportunities.” – Bruce Lee

When I read headlines and reports talking about how 75% of Americans are living paycheck-to-paycheck, or 30% do not have enough to cover a $400 emergency, I get concerned.

Especially, when credit card debt is reaching record highs and as of the writing of this article, credit card debt in the United States stands at $1 trillion.

I do not like to see so many Americans cash strapped.

I want to see people funding their dreams, buying homes, and starting businesses.

Although, those things take time to build, it is very possible to do over time. However, it gets harder to do those things when you have debt.

I have read lots of books and articles online that gives the following advice: ask for a raise.

Easier said than done. Why not ask for a pony, while you’re at it?

They say ask and you shall receive, but this is not always the case. More and more, I hear about how jobs are downsizing or cutting expenses. That’s code for slashing wages and human capital.

These things happen all the time. It is a business decision. Like a family trying to balance their budget and manage their household finances, a business has to do the same.

I have asked for lots of things in life. And, why not? All people can do is say yes or no. I have had to deal with rejection plenty of times. All you need is someone to say yes once. If you hear 100 no’s, then finally get to that one yes, it could possibly change your life.

I do not wait for people to hand me anything. Nobody owes me nothing. I work for what I want. I have learned to create my own opportunities. And you can do the same. Just work with what you’ve got.

Wages have been stagnant and quite frankly flat. It is becoming more difficult to move up an income bracket. While you’re trying to climb that economic ladder, it may not always come with a corner office, higher pay, and bonuses.

Truth be told, a raise may not do but so much for your finances. After taxes, you bring home less than the actual raise. And what’s even worse, is that many people do lifestyle inflation, where they slowly increase their spending due to lifestyle creep from making more money.

Burning through large amounts of cash is not good for your wallet. If you want deeper pockets, you have to make some changes to your behavior.

In order to give yourself a yearly raise of $6,000 ($500 per month), you would need to grow your income by $250 and cut your expenses by $250 or some combination of both, if not one or the other.

Here are some ways to give yourself a raise that don’t require you to quit or get promoted.

SLASH EXPENSES

Cutting expenses is like giving yourself a tax-free raise. Every penny you save stays with you.

You need to find creative ways to spend less. When you reduce the outflow you can increase your cash inflow and cushion.

Most people, I have noticed, that get into trouble with their finances tend to be the ones who have high fixed expenses.

Keep your expenses as low as possible. Then you do not have to worry so much about or even depend on getting a raise, bonus, promotion, inheritance, or any type of financial windfall.

For example, I decided to quit going to restaurants for about 2 months. My average bill would be about $30. If I give a tip 10-20% every check, that means paying $3-$6 every time. Eating out just 4 times per month, meant paying $12-$24 or $25-$50 over 2 months alone! That is $300-$600 a year.

That does not include the cost of food. The $2 delivery fee, the extra container of rice, or springing for the extra tuna roll.

Don’t even get me started on going out in groups to places that just so conveniently can’t split the check. You usually end up paying more than your fair share to say the least. Basically, you are subsidizing someone else’s alcoholism.

I now call the restaurant ahead and ask if they do check splitting. If not, I try to just order at the bar.

You are the controller or should we say comptroller of your destiny.

GO TO COLLEGE

Increasing your knowledge is usually a great way to earn more money. Although, education is not an equalizer (some may profit more from going to the Ivy League than others), you can still qualify for more prestigious jobs with a little more book smarts.

You can job hop your way to a higher salary. Even I have done this. I have noticed I have gotten a raise or promotion by applying for another job as opposed to asking for one. But that’s another story.

However, I do not recommend going into a ton of debt to do it. I suggest you find ways to go to school affordably such as monthly payment plans to pay-as-you-go, going online (which is cheaper that traditional brick and mortar), or seeing if an employer will offer tuition benefits.

If your employer pays, $1,500 a semester and you go for 2 semesters a year, that is an annual savings of $3,000.

LEARN A TRADE

Go to any barber shop or hair salon on a Saturday morning and take note how many people are there.

Having a skill can earn you some serious bread.

If I have to pay the plumber or electrician one more copay, I may start looking up how to fix the plumbing myself on YouTube.

By this point in my life, I am sure I have paid enough to hairstylists, washer repairmen and manicurists to put at least one kid through college or at least pay for a semester. That’s no joke.

If you have any type of skill or hobby that you can monetize, do it.

I read online that a woman who dresses in costume and does displays is making six-figures. You read that right. Putting on a wig and some tights is allowing her to pay the mortgage and save for retirement.

Think walking those dogs are beneath you. Think again. You can earn $40 bucks a day. Just doing this on the weekends could net you $80 x 4 = $320 a month. Pass me the leash.

OPEN A ROTH IRA

A Roth IRA has no upfront tax benefits, but the savings gain down the line is second to none. All the investment gains will not be subject to taxation in retirement.

Since, the money in this account is funded with after-tax dollars, you will be able to enjoy this account without having to pay the man. Sign me up please!

So when your peers are paying taxes on their 401(k) withdrawals, you could be going to the ATM getting out that $600 max withdrawal without paying Uncle Sam for the convenience.

PAY DOWN YOUR DEBTS

Paying off high interest or anything charging you interest such as personal and auto loans, credit cards and student loans is money in the bank.

Every dollar you do not give the local banker stays in your bank account.

If you pay $200 monthly to service your credit card debt, getting rid of this money drain means having an extra $2,400 a year back in your pocket. That can be put in your Roth IRA and then you are working towards turning every dollar into two.

LIVE ON CASH

It is hard to part with cold, hard cash. Swiping is easy. Work on handing every person you meet the money to pay for expenses, even to buy a postage stamp, and you will start to feel the sensation of giving away a small fortune.

SET UP AUTOMATIC PAYMENTS

The late fees from not paying on time are astronomical. A one-time missed payment on a credit card is regular $30 or more. Miss a payment on 3 credit cards in one month and that’ll cost you $100 bucks!

Over a years’ time, that is $1,200. Just in fees. Save that money automatically into your savings account instead.

DELEGATE TIME-SUCKING TASKS

By paying a nominal fee to others, you free up precious hours to find ways to make money.

The trick is to pay for services that are not particularly pricey and expensive. You then use the hours you would have put into cooking, cleaning, or doing laundry into making money during those hours instead.

RENT OUT YOUR HOME

These days you can rent out just about anything. Over 30 million people have used Airbnb. Most rentals I have seen can charge anywhere from $100-$300 a night.

You could rent out your place and make $500 a month. Or who knows how much. Sky’s the limit here.

FORGO VICES

Forget the lottery tickets, tobacco, concert tickets, expensive shoes, and beer runs.

You could save anywhere from $40-$200 a month. That’s $480-$2,400 dollars a year.

SUMMING IT UP

There are many other ways to save or cut expenses. You just have to be willing. From just some of the examples I provide, someone could save anywhere from $100-$600 dollars a month. That is between $1,200-$7,200 a year.

If you can find a way to bring in $500 more a month, whether it is an additional income or slashing expenses, that is like giving yourself a raise of $6,000 a year!

Whenever, I hear someone say I can’t live without my weekly happy hours I say to them: can’t or won’t.

There is usually always something you can do. Break it up into small tasks, if the bigger task seems too daunting.

Just focus on getting your monthly or daily savings rate up. You can do it.

Financial Freedom, Financial Independence, Saving, Wealth

America is the land of subscriptions

Gallery 2 Comments

I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel. – Dr. Maya Angelou

TO SUBSCRIBE OR NOT SUBSCRIBE, THAT IS THE QUESTION

America used to be known as the land of opportunity and dreams. And for some and in many ways it still is. However, things have changed dramatically over the last two to three decades.

One of the biggest changes I have noticed can be described in one word: subscriptions.

When I was growing up, you bought the thing one time and you were done. Transaction over.

Today, many places want you to subscribe to their services and pay them every month. I am not on board with this.

Even Jay Leno agrees with me. He told CNBC, “Here is the money, give me the thing, transaction over.”

He told CNBC Make It: “When you own something and you don’t have to write checks every month, you’re just better off.”

I couldn’t agree more. I can’t stand installments for anything. It means you earn money and then have to give it away. Period.

I learned that if I could cut down or out the installment payments in my life that I would be better off and would get to keep my money.

Sure you will have bills like utilities – gas, water, electric and insurance, food, etc.

Those are not the bills I am talking about.

I mean the ones that are not necessities.

In a Washington Post interview from 2016, Sociologist Joseph Cohen of Queens University is fond of saying that “America is a place where luxuries are cheap and necessities costly.”

Exactly, the luxury items have stayed the same: high-priced. However, the cost of college, daycare, education, and the mortgage have all gone up.

Even rent can be insane. There is no cap on rent. So, it can go up every year with inflation. Unfortunately, that is just a cost of life. You need a place to lay your head. You need shelter.

But I urge people to consider carefully what type and how much home they buy.

A HOME IS YOUR CASTLE BUT DOESN’T HAVE TO ACTUALLY BE ONE

I am all for the Huey P. Long saying that Every Man a King, but I think a woman is also the queen of her castle.

I prefer to be able to clean my own home. To be able to sweat over lonely labor, have sense of pride in a job that is well done is what I need. And just FYI, for those who like to stay in shape and are into physical fitness, cleaning is also a workout.

After reading the book Nickel and Dimed by Barbara Ehrenreich, in where she worked undercover with a big house-cleaning chain in her book, I feel I am better off doing the work myself.

Barbara Ehrenreich said, “I had been taught by my mother, a compulsive housekeeper who employed water so hot you needed rubber gloves to get into it,” to basically clean her own home.

Paying a service is another bill. I say if you can afford it and it will free up time you want for yourself, then do it.

However, I also have learned the bigger the home, the more help you need to clean it.

It gets tougher to clean a home yourself once it is more than 3,500 square feet. That’s when you usually have to hire help.

Paying the gardener, maid, chef, and chauffeur all adds up.

Why not purchase a home that is 3,000 square feet or less? Not only are they cheaper, but also easier to maintain.

That’s just my $0.02.

SUBSCRIBERS BEWARE

I have seen countless companies start subscription services. Some are pretty cheap and then others are downright outrageous.

I just started noticing this new way of the subscription life myself fairly recently.

I first started noticing it in high school. I wanted to buy Harlequin romance books, because I mean come on, who doesn’t like Happy Ever After’s (HEAs)?

And to my delight, in each book was a subscription notice. They offered 2 free books as a bonus! I was like sign me up. Then things started to go downhill for me from there.

Let me just start by saying, I am a huge Harlequin romance fan. It was not that they did not provide quality service or great reads. Quite the opposite. It was the quantity and price of the service that caused my woes.

I started getting books like every 3 or 4 weeks. It was expensive too, at least to a teenager, it cost about $15 a month. Some books I didn’t even want, but they shipped them in packs of four, which were chosen for you.

As much as I loved Harlequin, I had to cancel my subscription. They sent books faster than I could read and bills faster than I could pay.

That was my first taste of the subscription life. It left a bad taste in my mouth. One that, like Maya Angelou said, I never forgot how it made me feel. And all these years later, that one event was the catalyst for me not ever wanting to have subscription anything.

So, when something doesn’t feel right, listen to yourself. Trust your gut and make some changes.

I can walk away from anything. Relationships, bad jobs, roommates, you name it. Even if I am comfortable, I have still walked away from people, places or things that were not in my best interest.

Chris Rock said, “comfort is the poison.”

I have learned to hold on loosely to everything so you are not so rattled when change comes.

YOU KNOW WHO THEY ARE

There are lots of companies that offer subscriptions.

I pretty much avoid them all.

Everyone is out there trying to take the money out of your pocket and put it into theirs. Everyone is trying to separate you from your money. Don’t let them.

Expenses would occur once or infrequently when I was growing up. Now everything is a monthly subscription. Even toothbrushes are turning into a subscription service!

I buy products and stick with them until I get my monies worth. I bought a car for $30k, 15 years and six months ago. My payment was $448.65. So, $30,000/186 = the equivalent of paying $161 per month on this vehicle or $2,000 per year not including gas and maintenance.

It’s American made so I have not ever had to pay $3,000 or more in a single visit. My last oil change cost me less than $50!

I have more than got my money’s worth out of this car. I paid this car off in 2009. That money has been going to my retirement account ever since.

Companies now try to offer you the world and all this personalized attention and concierge service, until you stop paying. Whether or not it is by choice or you cannot afford to pay anymore.

It’s like trickery. Or in some cases like the old bait and switch. They promise you the world on the way in and engrave your initials on everything and then can’t remember your name on the way out.

What’s that Lucy? Another football for me to kick. No thank you.

Just say no to subscriptions. It will save you a fortune.

Here are some places that offer subscriptions – gym memberships, clothing stores, book publishers, magazines, and newspapers.

List of well-known companies that offer subscriptions and the cost of some pricing plans:

  • Apple iTunes $9.99 monthly
  • Under Armour (ArmourBox) 4-6 items of gear pay only for kept items) $80+ per box
  • The Wall Street Journal $100-$400 annually
  • Kiplinger Magazine $6.99+ annually
  • Forbes Magazine $20 annually
  • The New York Times $14.99 monthly
  • Deer Park Water $12.99 monthly (minimum)
  • Spotify $9.99 monthly
  • Hulu $7.99 monthly
  • Netflix $9.99 monthly
  • Amazon Prime $99 annually (from $79)

List of less well-known companies that offer subscription and the cost of some pricing plans:

  • Quip oral care tooth brush delivery $10 per user per month! For a toothbrush!
  • Stitch Fix $20 style fee
  • Le Tote $59 a month
  • Rent the Runway $139 a month!
  • Shoedazzle $39.95 a month
  • Gwynnie Bee $49 a month
  • Fabletics $25 per month or box
  • Her Fashion Box $59.95 a quarter! So, its really $239.80 annually

Oh and by the way, subscriptions are the bait to get you on the hook. After, they reel you in, over time they will start slowly increasing the cost. Again, this is just business and the cost of things, as there is this pesky little thing called inflation that just make goods and services costlier over time.

Let me tell you how my life has changed as I cancelled and avoided subscription services like the plague.

CASH RULES EVERYTHING AROUND ME

Money is like air, try and live without it. – Motivational Speaker

Some of you out there may remember the group the Wu-Tang Clan. They had a song called C.R.E.A.M and that pretty much summed up that you need money to sustain your life and that of your family.

You need shelter, food, water, transportation, insurance, internet, and phone.

Everything else is pretty much optional.

I have Netflix, Hulu, World Gym Express, AAA, insurance (life, auto, health, dental), and that’s about it.

I got a term life policy for pretty cheap through AAA.

I got some of the lowest prices available that would sustain my household. Things mean nothing to me. I don’t care about clothes or shopping. I prefer experiences. Me and the girls would have wine, pizza, and game night at each other’s houses.

Music videos were also a shopping trigger. Everyone from Ja Rule to Lil Wayne talked about being cash money millionaires. A rapper even made it his moniker: Chamillionaire!

Everyone in music videos had private planes, diamonds, champagne, mansions, and beamers, Benz and Bentleys!

Who thought of this thing called shoe game. I have never cared about shoes. I just wear them out until they are no longer useful and then repair or replace and toss the ones that are useless. I would wear shoes until I had holes in them. I don’t care. I’m fine. Grateful to have shoes on my feet.

However, when I was around 15, those videos started making me feel bad. So, at age 16, I decided to stop watching them. My self-esteem went through the roof!

Then years later, I discovered that many episodes of MTV cribs were not the full truth. I was floored. I was like you made me believe that success was in what I drove and what home I lived in. All wrong. Wrong, wrong, wrong!

MONEY IS JUST A TOOL

Money can buy you a fine dog, but only love can make him wag its tail. -Kinky Friedman

If you read my last post, you know I was inspired to save more by the blogger who owns Millennial Money.

I backed off of doing and buying much of anything, so that I could be free. I wanted to be financially independent (FI). And that, my friends, requires discipline. FI requires sacrifice and saving.

Women tend to focus on saving.

Men tend to focus on earning.

I encourage you to do both. That is what I did.

Ask for a raise, if it will get you to your goals faster. Don’t ever be afraid to ask for anything, because all people can do is say yes or no. So, I ask for everything. I do not fear rejection. I have learned to fail better. You are rewarded for it.

I knew getting a good education or learning a skill (construction, HVAC, barber, hairstylist, IT, plumbing, electrician, or dental hygienist) that could be monetized was key.

I knew a guy many years ago that skipped college in favor of heating refrigeration and air conditioning training. Within like 6 months he was making $20 an hour! And that was right out of high school.

In the news, it was reported that construction is in dire need of those willing to learn the trade. Due to a lack of construction workers, homes being built now are higher priced and low-income homes are not being built.

All of the sudden people are too good for construction! I have always admired and liked a hardworking, driven person. Especially, a man who can work with his hands.

Remember that episode of Charmed, where their ancestor came back from the 1600’s. It’s okay if you don’t remember, I own the DVD and just so happen to have a clip of it. This part and another episode called Morality Bites are some of my favorites from the show.

What’s wrong with working with your hands? Like all of my uncles were mechanics. It was like Marissa Tomei in my cousin Vinny.

They always had grease under their fingernails and on their hands, but people depended on them. My Uncle Tommy helped everyone. He was kindhearted. He, like my father, never raised his voice because they didn’t have to. They were respected and loved. There was no need to yell.

I have always liked and been drawn to well-mannered, hardworking men.

My mom grew up on a farm and we would visit it every summer when I was little. My only memory of my grandfather was always of him dressed in overalls.

He was in excellent physical shape well into his 70’s. Farming is hard work. He was up by dawn and in bed by dusk.

There was always fresh fruit and vegetables because he grew it and sowed his crops himself.

I love the fact that you can take a blueprint, follow a plan, build a home, and have tangible proof of labor. But, you know, that’s just me.

I spent parts of my childhood holed up in my room or on the couch reading books. I would read the Sunday Comics (Peanuts were my favorites), Archie Comics, history books or anything lying around the house.

I put all my time and money into developing myself. It went to my health, family, education, and community. Those sacrifices of going to an in-state school and driving a beater have paid off in spades!

Let me show you how.

MONEY IS THE NAME AND SAVING AND INVESTING IS THE GAME

After being introduced to Millennial Money online, almost three years ago, I made some changes.

I started looking at money differently.

I started thinking of ways to save on a daily basis instead of just monthly or after I paid all my bills.

You have to have money left at the end of the month, if you want to build wealth.

I took a look at my bank and credit card statements to see what I was spending my money on. Was there anything I could cut out? Did I really need this?

I cut out nail salon visits, excess hair appointments, shopping sprees, vacations, car washes (another subscription, ugh), birthday parties (no gift to buy or buying the birthday girl a drink) and anything I could find.

I cut out miscellaneous expenses too. No stopping at Walgreen’s without a list. I only need one pen, not a pack. Is it on sale? I can’t afford full price to anyone whose name isn’t followed by M.D.

After trimming the fat, I started figuring out my savings rate.

I started out with this:

Year 1. Saving $50 per month. $600 a year. That’s $600/365 (days a year) = $1.64 a day savings rate.

Year 3. Saving $150 per month. $1,825 a year. That’s, $1,825/365 = $5 a day savings rate.

Year 6. Saving $1,111.04 per month. $13,333.06 a year. That’s, $13,333.06/365 = $36.53 a day savings rate.

I went from saving $1.64 a day to $36.53 a day! That’s a 22% increase in savings.

That’s progress. That is almost the equivalent of someone paying me $40 (two twenties a day) and I put aside $36.53 of it in savings.

If you notice, from the examples of what I did, it took 6 years to get here. I just started where I was at.

I just wanted to save $5 a day like Millennial Money talked about. I had no idea that I had done that and more. I was used to spending everything I had and being in debt.

To this day, I still try to find ways to increase my daily savings rate. Once I changed my money mindset, I changed my life. I got results. And you can too!

Financial Freedom, Financial Independence, Investing, Retirement, Saving, Self-Made Millionaires, Wealth

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

Gallery 4 Comments

If you have been reading my blog recently, then you know I attended FinCon in Orlando, Florida this year.

However, what many of you may not know is that I have been listening to podcasts and reading blog posts by Grant Sabatier of Millennial Money.

Grant discussed saving money every day. Something like $5. And when I changed my mindset, I was like I want to do that too.

The escalation of your saving rate. Grant recommended that people try to escalate their saving by 1% every 30 days.

I knew this was a massive undertaking, but I was determined to do something.

So, I started where I was at and worked my way up. I just shifted upwards.

This is the first time I have ever opened up about what triggered me to start saving larger sums of money.

I am nervous just writing this post. However, I wanted to share some of the things that I have done in hopes that it may help someone else in the same way that Grant helped me.

SHIFT YOUR MONEY MINDSET

It was around 2013, that I started to do some Million-Dollar Math. I used an online calculator to determine how much I would have to save to get to millionaire status.

I focused on 2 numbers: $100,000 and $300,000.

The reason for this was because at an 8% return $100,000 will net you $1,000,000 in 30 years. At a 9% return, $300,000 will net you $1,000,000 in 12 years.

Even that, seemed like it would take tremendous effort.  Then I realized I had to think big, but start small. Start where I was at.

The answer was staring me right in the face. I was like Homer Simpson, Doh! Come on, Miriam. Use your Noggin.

I needed to take the small steps first in order to get to the bigger ones.

A number like $1,000,000 is too daunting. So, I broke it up into bite sizes like Oreo mini’s.

First, I focused on my retirement savings and then my regular savings. It went something like this.

Retirement Savings Escalation Example

Year Savings % Annual Increase Change
Savings Escalation    
2013 13% 2% +2
2014

2015

 15%

20%

 2%

5%

 +4

+9
2016* 25% 5% +14

*** I stopped at 2016 because I shifted my focus from mostly all savings going to my 401(k) to focusing more on liquid savings for the time being. Don’t worry. I still invest in my 401(k). I have to get that match after all. Can’t leave free money on the table.

In 2017, I made some changes to my savings approach. I needed to have some liquid cash too and not just have all my funds locked up in my 401(k). I had to have cash reserves. Especially, for any unforeseen emergencies that just pop up.

I decided to pay myself first. Instead of saving what was left over after paying my bills and spending money on things, I saved first. I set up an automatic deposit to my savings, then paid my bills and then spent what was left.

My savings rate was so high that there was not but so much left over to spend. I did this on purpose.

It meant I must not only spend less (a lot less), but I must also earn more if I want to spend more.

I started saving more liquid cash in my savings and money market accounts.

In order to get my savings rate higher, I had to cut subscriptions, payoff debt, and eat out less.

And there is a secret to my success. Shhh! But, I’ll tell you guys. The secret is this: I automate it.

Savings Year Monthly Savings Amount End of Year Total Savings
2013 $50 $600
2014 $100 $1200
2015 $150 $1800
2016 $250 $3000
2017 $333 $3996
2018 $1,111.04 $13,333.06
2019* $1,211.09 $14,533.06

I try to increase my savings rate by a minimum of between 1%-5% a year and even double or triple it, if I can. I just cut out everything. I spend as little on clothes as possible. I haven’t bought a car in almost 16 years. I don’t care. I’d rather save and be financially independent.

You can see from the numbers above that once I was introduced to Grant, my savings rate went through the roof and increased quite dramatically!

At the rate I’m going, I estimate I will have somewhere between $80,000 – $90,000+ after factoring in for life (cause things just come up).

And that is only if I continue on this path for at least the next several years and increase my savings by about 11% per year or around $1200 annually, which is a $100 increase in savings per month. I could decide to save even more over time.

I would then have enough savings in the bank to pay for 3-5 years of my expenses.

I estimated my FIRE number (25 x my expenses): $750,000.

Once I hit that or a certain number in liquid savings, I will then re-evaluate my situation.

WHEN I GOT INSPIRED BY MILLENNIAL MONEY

It happened around 2017. I like to read money articles, magazines and books. I like to study the self-made. Then maybe I can emulate their success.

I saw an article about Grant on CNBC in early 2017. I was intrigued to learn how someone could do this in just 5 years what most are unable to do in a 30 or 40-year career or even in a lifetime.

Once I read his story I was inspired to act. I was determined to get my act together too. I devoured personal finance (PF) books. I must have read at least 40-60 in the last 15 months alone.

However, I haven’t bought a book in about 3 years. Too expensive. I rent them all from the library.

I do have some books I own from the years I was buying personal finance books. I have a small mini-library in my home (just a medium-sized book shelf) full of all my PF books.

I feel that if you want to be wealthy, then you have to read. You have to pursue wealth. Your house should look like a Barnes and Noble, if you want to be rich.

And ditch the plastic, unless you can pay it off every month. Once you stop making those installments, all your money is yours and a lot of your money woes disappear.

However, for the first time in years I am allowing myself to buy a book and it will be Grant’s new book that is coming out in February 2019.

How do I know he has a book coming out at that time you ask?

Thanks for asking. I’ll tell you all about it.

MEETING MILLENNIAL MONEY

I went to Fincon, a financial conference where money and media meet, and Grant happened to be speaking at one of the workshop sessions.

I stepped in to see what he had to say.

He was awesome. I felt his passion for what he did. It was palpable.

He said blogging is a long game. Your blog and appearance should be clean and shiny.

Be unique, be yourself and tell your story.  Stand out from the crowd because the media will try to lump you in with all the other bloggers. Don’t let them.

Sell your feel goods. Feelings are what connect people to you and your blog.

Do you care about your reader? If so, be clear and transparent. Have a mission.

When I shared my story about having only $2.26 in my bank account it just one day exploded. I have done over 400 media interviews because of it.

90 days ago a firm offered me $4 million dollars for my site. I turned it down. I can’t sell my site. It’s my baby. There is more to life than money. It’s not the money. It’s the work.

If you want to be a blogger, make your posts memorable. Have personality. Be vulnerable. Be more giving. Show people that you are human.  Tell your struggles and challenges. Reveal things to your readers over time. Humanize your site. Be more open.

Screen shot your story. Make it unique so people can remember. Always start with a story.

Write lots of stories. Do your reps. Put in your time. Putting in the extra time to write 3 times more content means you connected the reader. Readers are looking for an emotional connection. And Storytelling.

I’ve written 1 million words about money. And I’m not done. Be distinctive.

This is the age of vulnerability and that is why digital podcasts are so popular.

At this point, I got the message. He was so passionate when he spoke I did not want to leave the session because he was so engaging.

I made a point to walk up to him later in the day and introduce myself and tell him how much I enjoyed his workshop.

He said thank you so much. I really appreciate that because it’s scary up there. Your like an island up there.

I also told him I did not think he should sell his website. I mean where I would get my feel goods.

I then gave him my card and he gave me his flyer. He was super grateful and humble when I told him I liked his speech. I felt and thought that he had a good personality and thoughtful disposition that was positive and hardworking.

And I was right. At the closing party, Grant displayed , yet again, his big-hearted and kind nature.

The DJ was packing it up for the night, but people still wanted to dance. He offered to pay the DJ (out of his own pocket to keep the party going). That was really nice.

That’s the type of people I need and want around me. Those with good character and that care about others. I want to be a good neighbor. And want to be around good neighbors as well.

After all, you never know when you may need to borrow a cup of sugar or need someone’s help.

Case in point, I had a close friend that needed some money fast in order to close on her house. I wrote her a check the very next day, with no other questions asked and she paid me back within 2 months.

My sister also many years ago was in a bind and needed to pay a debt. She said she needed $500 dollars. I wired her the money the same day. She said she would pay me back and I told her to forget it. After all she had done for me. I didn’t forget when there were times she helped me out. I had a chance to repay the favor, so I did.

I know some people out there may say it was just a DJ, but no. It was more than that. It was the fact that he was willing to dig in his pockets and spend money on hundreds of virtual strangers.

I have seen people not willing to give up a dollar, a penny even, not one red cent to help family members. Let alone a stranger. And this guy did it, no questions asked and without waiting for or expecting a thank you.

https://twitter.com/ptmoney/status/1046239732580188161

HOW I STARTED SAVING MORE AND SPENDING LESS

Well, there you have it. My story of how I started to save more.

You now know more about me than some of my close friends and family members do.

I’m not going to lie. I was scared to write this post, but if Grant can screen shot his bank account showing $2.26 in it, then I am willing to share as well.

I too lived at home longer that I wanted or planned to. I went shopping and spent recklessly to numb the pain. I felt I was failing at adulting.

I had to find a way to kick the habit because it was putting me in the poor house.

I started shopping with lists. I would make painstakingly long lists of clothes I wanted to buy. I would make myself wait 30 days before making a purchase. By then, I didn’t even want the clothes anymore.

To satisfy my cravings, I would at times (every few days or weeks) allow myself to go online to Nordstrom and put every item of clothing I wanted in the shopping cart. I once raked up a bill for $18,000 dollars!

However, I thought about my money or my life. How much in sweat would I have to toil to pay off that sweater that no one is going to see me in because I am too broke to go out?

By the time I would be able to pay off the debt (plastic fantastic), those clothes would be long gone and the interest would have made them way more expensive than the $18,000 I racked up just to buy them.

I did not buy one single item.

I proceeded to do this for about 6 months and sometimes I did it every day, in order to get it out of my system.

I have been cured of my shopping addition and clean and clothes sober for the last 5 years. Thank you very much.

I have never told anyone any of these things except my partner. He said do whatever you have to do not to spend.

I’m embarrassed to tell people that I used to do that, but whatever it’s my truth and I’m living in it.

I wasted so much money on clothes. You would not believe. For every event, I would go shopping. I needed a new dress or jacket or boots. I spent with reckless abandon to impress people that I didn’t even know, like or who didn’t even care.

Now, I never go on Macy’s website for longer than 10 minutes, I get what I need, and get out. I have bought very little and way less clothing than in the past. I rarely go to malls and no longer go to any clothing sites online.

I had about 600 items in my Amazon cart. Those items have been just sitting there probably for like the last 5 years. I was like forget it. I don’t need any more stuff.

I also notice when I don’t shop, I feel better. I get just as much joy in saving as I o spending. Almost. Let’s not go crazy now. I’m only human.

I started donating clothes and items all around the house. It feels good to purge all that stuff. It’s so freeing. It was cluttering up my mind and house. I don’t need a bunch of gadgets and new clothes and shoes. I would repair instead of replace.

I rarely go to the movies and almost never go on vacation. And if I do, it’s usually once a year.

I keep myself busy. I don’t like ideal hands. I find something productive to do. Even if, it’s just reading or cleaning the house.

Sometimes, I still get the itch to shop and spend, but I have learned not to scratch it. If the goal, is to be financially secure then sacrifices will have to be made. Hard work is required of anything good and important and it takes time. And hard work builds character.

And I am okay with not getting rich quick or overnight because I know anything truly worth having is worth the wait. The only way to really feel good about something is to earn it first.

I had to train myself on how to deal with large influxes of money and to keep my paws off of it. And much like the narrator said at the end of the Neverending Story, but  that’s  another story…

Wealth

Health really does equal wealth

Gallery 1 Comment

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

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

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

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

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

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

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

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

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

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

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

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

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

FOCUS ON WHOLE FOODS

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

Real whole foods are the way to go.

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

SKIP THE BOX

I used to be the cereal queen.

If it had sugar in it, I ate it.

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

Yes, he just loves cereal.

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

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

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

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

IF IT’S FAST, GO SLOW

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

What a difference a decade makes!

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

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

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

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

STAY ACTIVE

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

So lace up those sneakers!

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

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

DRINK WATER

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

In addition, I prefer to eat my calories.

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

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

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

TO BE OR NOT BE ORGANIC

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

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

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

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

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

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

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

It's good to want things.

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

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

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

How Benjamin Franklin used 13 virtues to get rich

Gallery Leave a comment

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

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

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

You can do the same to build yours.

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

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

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

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

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

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

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

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

THE 13 VIRTUES OF BENJAMIN FRANKLIN

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

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

Below is a copy of his checklist.

SPOTLIGHT ON FRUGALITY

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

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

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

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

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

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

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

FOCUS ON FRUGALITY

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

He then reinvested the profits back into his business.

That is how he grew rich.

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

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

FORGET THE FANCY SET OF WHEELS

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

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

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

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

FORGET THE BIG HOUSE

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

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

How is that stuff paid for? Usually with credit.

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

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

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

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

You want to be investment rich, not house poor.

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

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

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

FORGET THE DESIGNER CLOTHES

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

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

I see people opening up store cards all the time.

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

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

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

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

FORGET THE EXPENSIVE WATCHES AND JEWELRY

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

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

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

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

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

FORGET THE EXOTIC VACATIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Don’t be like them.

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

FORGET PRETENDING TO HAVE MONEY

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

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

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

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

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

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

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

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

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

College, Credit Cards, Financial Freedom, Retirement, Saving, Wealth

How I went from $5k to a six-figure 401(k) in 6 years

Gallery 2 Comments

“It’s not your salary that makes you rich, it’s your spending habits.” ― Charles A. Jaffe

It seems like every other day I read about some new 401(k) millionaire.

I think that’s really great, but you know what I always think about when I hear about newly minted 401(k) millionaires; I think how that money is all on paper only. You cannot access those funds without cashing out. Making this investment illiquid.

There is nothing wrong with that except if you need or want the money now to spend or invest. Tapping a retirement account before age 59 ½ comes with a 10% penalty and a 25% income tax rate. Ouch!

Therefore, I focus on earning more, saving more, and investing more all at the same time.

However, years ago I thought to myself why not also focus on getting a million in investable assets.

That’s when I set about focusing on what I could do to get to $1 million in my retirement account.

After doing some research, I found that millionaires did the following:

  1. Invest at least 20% of their income
  2. Spend less than they earn
  3. Read about finance

So, then I determined that I would have to make some sacrifices, if my goal was to get to $1 million.

First, I looked at what it would take to get there.

I learned that a $100,000 could turn into $1 million in 30 years at an 8% rate of return or higher and that is a great return on investment (ROI). Since, the stock market has averaged a return of 9.8% over 90 years from 1926-2016, then I figure 8% ROI is not an unrealistic percentage. And that is without adding another dime to your portfolio.

Imagine what life would be like if you no longer had to contribute to a 401(k). Pretty sweet. All that money now comes back to you and you can put it in other places such as a college fund, real estate, or seed money to start a business.

Now, I am not saying not to continue investing. Especially, if you get a match from your employer. That’s free money. Don’t give that up. It’s just good to have and know your options. Just FYI, I am still investing in my retirement accounts.

This is how I went from $5k to five zeroes in retirement accounts in just over 5 years.

DECIDE TO GET TO SIX-FIGURES

Once I made the decision to get to $100k, then I had to figure out a way to do it.

I decided to stick to a conservative estimate of a 6% ROI. That would equate to investing $12,585 per year. That works out to $1,048.75 per month or $484.04 bi-weekly.

Salary of $35k-$100k means you would have to put in anywhere from approximately 13% to 36% of your income in investments to get this figure.

COMMIT TO SAVING

I had to then commit to the idea. That meant some belt tightening. I looked for ways to save. I cut anything that was not required for me to eat, sleep, or stay healthy. I know financial gurus say it is best to focus on earning. And while I agree, I also know it is easier to cut expenses than it is to earn more.  Therefore, these things had to go:

  • Cable
  • Subscriptions (magazines, books, etc.)
  • Buying clothes (waved bye-bye to this)
  • Vacations
  • Nail salon visits
  • Restaurant Meals (ate out less)
  • Movies
  • CD’s, DVD’s and books (rented from the local public library for free)

This freed up quite a bit of money. Anywhere from $200-300 per month. Yep, that went to saving.

Then I turned my attention toward my debt. I was paying about $800 per month to service debt. Yikes! Even though that included different kinds of consumer debt (personal loan, credit cards), it was still a huge monthly expense. So, I decided to make some changes.

I wanted to stop paying so much in interest. That money could go toward saving and investing after all. I figured I could either pay it off, see about getting the interest rates down or both.

I called up a couple lenders to see if they would lower my interest rate based on payment history and credit score. They said no. And here’s a word of caution: after calling one lender, my credit limit was lowered. That’s right. You have no say or control when you owe money. The lender has all the power. Therefore, it is your job to pay off your debt so that you can have all the power.

Your credit limit is very important because this also affects your credit score.

Say you have a $10k credit limit and you owe $1k. That is a 10% credit usage. Very low. However, if your credit limit is slashed by more than half to $2k, then that $1k balance becomes a 50% credit usage. This would increase your debt ratio and lower your credit score.

And we all know how important your credit score is. The credit bureaus – Experian, Equifax, and Transunion – hold a lot of weight in the eyes of lenders. If you have a low credit score, it can affect whether or not you get a job, are able to buy a home or even a car. Credit scores below 620 usually mean you pay higher interest rates. On a mortgage, that could mean the difference of paying $10,000 to $100,000 in interest! No pair of name brand jeans, destination wedding, or fancy exotic vacation is worth a $100,000 dollars!

Going back to saving on credit interest, I had to figure out another route. Therefore, I did two things. One, I paid off all the low balance credit cards. Any lender I owed less than $500, I paid them off. Then, went after the ones under $1k and so on until I only owed two lenders.

That’s when I used the 0% balance transfer deals I had. I was able to put $10k at 0% for 18 months and another $5k at 0% for 12 months.

I also paid off my $20k personal loan! I had previously paid off my car loan. See my post Outrageous loan terms for Porsche that even the rich can’t justify about how and when I paid off my car!

I went from spending $1k to $1,100 per month to spending $500 and saving $600 more per month!

MAKE YOUR MONEY WORK AS HARD FOR YOU AS YOU WORK FOR IT

I was able to put that in my retirement accounts. I went from investing $450 a month with an employer match to investing $1,050 to get to the required $12,585 annually needed for $100,000.

Once I hit this goal I started looking for other ways to save. Mentally, it was a great feeling to know if I never invested another dime, that I could still end up a 401(k) millionaire by just letting my money sit and work for me while I was sleeping.

Then, I turned my attention toward other goals such as paying off all debt, building a 12-month emergency fund, and building capital to purchase an income property.

I also started saving more and looking for higher rate saving accounts because it’s not that the sky is falling (shout out to chicken little); I just need a better saving rate because inflation is coming!

Thus, the purpose you need to invest. You need assets that will beat inflation, which is anywhere from 2-3% per year.

I prefer to pay off debt first. All of it as fast as you can. If not, then prioritize.

If you know that your credit cards are going to charge an Annual Percentage Rate (APR) of 11.99 to 29.99%, then this has to go.

If your student loans and mortgage are charging you 7% or higher, then you may want to focus on getting the amounts down to under $50,00 or $100,000 respectively. That way you pay less interest over the life of the loan.

If possible, I say pay them all off before age 50. Then all your money is yours in your golden years. If this is not feasible, like, say a 15-year mortgage, then you may want to focus on beefing up your savings and investing more if your loans are charging 5% or less.

Either way, automate your savings. Can’t spend what you can’t see. Pay yourself first. You do this by putting money aside in savings as soon as it comes in and not the other way around. Paying bills first and then saving what is left is a recipe for disaster. Try to aim to invest 20%, save 30%, and use the other 50% for living expenses. If you can aim to save 40-50%, and then you can invest more money to get out of the rat race sooner.

Investing 20% or more in retirement and saving 30-50% would mean you are saving and investing 50-70% of your income. At a 50% savings rate, you could turn every dollar into two. At a 10% compound interest savings rate, you could double your money every 7 years! Now that’s what I’m talking about. Turn one dollar into more.

Remember this: It’s not what you make, it’s what you keep that will make you wealthy.