After seeing it being reported today in the media, that there is a huge college admissions scheme involving wealthy parents (CEOs, Hollywood actors), I thought of writing this post.
ALTERNATIVES TO TRADITIONAL FULL-TIME ON-CAMPUS COLLEGE LIFE
Here are just a few things I will throw out there. I am sure
some of it is already being done, but just not on a massive scale in the United
States.
Dear parents of college-bound kids,
I would like to share with you some things I have learned
about college alternatives. Here goes.
FLAT-RATE TUITION. How about a flat-rate tuition to help improve graduation rates? Much like a flat-tax would probably improve the economy (and closing loopholes in the tax code), a flat-rate means that once you reach a certain amount, it does not matter how many credits you take for that semester.
COMMUNITY COLLEGE. Community college is cheaper. You can also transfer to other state colleges without losing credits. Just be sure to find out first.
Starting at a community college or cheaper college then transferring to a bigger more expensive university is college arbitrage. You pay less, but have that flagship college on your resume.
COLLEGE LEVEL EXAMINATION PROGRAM. CLEP – testing out of courses can save you thousands of dollars.
FLEXIBLE ONLINE LEARNING WITH STRAIGHTERLINE. StraighterLine – an online educational website that allows students to take college courses for cheaper. For example, $99 a month would allow you to take as many courses as you can handle and then transfer those credits to major universities, saving you thousands!
ADVANCED PLACEMENT. AP courses – Advanced Placement testing that could offer you college credits. One student graduated from University of Virginia (UVA) in one year and paid only $1,000! He took so many advanced courses that he came into college with 60 credits and took 18 classes in two semesters and one in the summer to graduate early.
APPRENTICESHIP OR INTERNSHIP. Pick a major early or career path and stick with it. You can always learn on the job or find other ways to learn about a career. Do an internship or shadow someone? Changing majors is costly and time consuming. Changing colleges can be just as damaging without proper planning. Avoid it at all costs.
GAP YEAR. Take a gap year and save. It is no shock that many college students get burnt out. Mainly because they did not decompress from high school. A gap year give students a chance to recover from high school before tackling college.
WHAT SOME BOOKS BY EXPERTS SAY ABOUT COLLEGE
In the book, A New U: Faster and Cheaper Alternatives to College, it states that; every year, the cost of a four-year degree goes up, and the value goes down. The book looks at alternative routes to great first jobs that do not involve a bachelor’s degree. Bootcamps, income-share programs, apprenticeships, and staffing models are attractive alternatives to great jobs in numerous growing sectors of the economy: coding, healthcare, sales, digital marketing, finance and accounting, insurance, and data analytics.
Another book called Debt Free U, I actually read this one, discusses how one student manages to graduate college on-time and with no student loans. He recommends student work their way through school. Find a place you can afford. Make a budget. And find a way to earn the money to pay for each semester. If a semester costs $3,000, then you must first earn that money before starting that semester. He says stay away from scholarships that make you pay a fee to apply. In addition, he also recommends books like The Brazen Careerist and Getting from College to Career.
College (Un) Bound discusses the four-year college experience is as American as apple pie. So is the belief that higher education offers a ticket to a better life. But with student-loan debt surpassing the $1 trillion mark and unemployment of college graduates at historic highs, people are beginning to question that value. The great credential race is having long lasting consequences. Alternatives such as MOOC’s, apprenticeships, trades, and lower cost options are discussed where you can get a top-tier education for middle-tier college prices.
There Is Life After College: What Parents and Students Should Know About Navigating School to Prepare for the Jobs of Tomorrow. Saddled with thousands of dollars of debt, today’s college students are graduating into an uncertain job market that is leaving them financially dependent on their parents for years to come—a reality that has left moms and dads wondering: What did I pay all that money for? The book offers practical guidance for how to navigate life after college.
If you can find a way to cut out taking several classes or shave
entire years of college, like that guy in the example I gave above at UVA, you
could save anywhere from $500 to $60,000 or more!
Think of it like this.
If going to the University of Chicago costs $50,000 a year
in tuition, and you can cut out two years of college by using CLEP,
transferring credits, AP credits, and internships; then you save $100,000!
“People say that money is not the key to happiness, but I
always figured if you have enough money, you can have a key made.”― Joan Rivers
Joan Rivers was a comedic force to be reckoned with, but it
didn’t start out that way. She was born in 1933. Her parents were immigrants
and even though her father was a medical doctor, he was more frugal than her
upwardly mobile mother wanted.
Joan’s attitude toward money was shaped early. She saw that
men managed the finances and women were financially dependent on their
husbands. It would be many years later before Joan would learn that is a grave financial
mistake.
On my quest to study the self-made, I decided to look into
the life of Joan Rivers. I was not disappointed. You can also read some of my
other posts on celebrities and money.
Joan wound up in $37 Million dollars of debt at the age of 54. Her grueling and formidable work ethic is the only thing that saved her from poverty. At the time of her passing, at the age of 81, Joan Rivers was estimated to be worth $150 Million.
Here is her story.
EVERYONE LOVES A CLOWN
I succeeded by saying
what everyone else is thinking. –Joan Rivers
Joan was the vice president of her high school drama club. She graduated from Barnard College in 1954 in Literature. She worked numerous jobs to support herself. Joan was a writer, tour guide, and fashion consultant.
Joan was quick-witted, very sharp, and had a penetrating and original intelligence that was like none other. A female comic was a hard living, but that is the life she chose. Her gift of gab became her meal ticket.
Joan Rivers once said that she liked the comedy business and
being a comedienne. This job had nothing to do with race, wealth, privilege,
your background, religion, or gender. Either you have talent or you don’t.
For a decade, Joan couldn’t really catch much of a break. She did learn that comedy was her gift. Even without the support of her parents, she continued her grind and gift of gags. This work ethic finally paid off in 1965. After 3 years and 7 auditions, she booked the Johnny Carson show.
There was no stopping her now.
WORK, WORK, WORK, WORK, WORK
I hate housework! You
make the beds, you do the dishes and six months later you have to start all
over again.
I wish I had a twin,
so I could know what I’d look like without plastic surgery.
Women should look good. Work on yourselves. Education? I spit on education. No man is ever going to put his hand up your dress looking for a library card.
From 1965-1986, all Joan did was WORK! She wrote jokes,
movie and television scripts, made guest appearances on television shows, did
stand-up comedy gigs, and directed film.
If the job came with a paycheck, Joan did it. She was fearless and took on every paying gig that came her way. She even won a Grammy Award for Best Comedy Album in in 1983.
She hit the big time when, in 1986, Fox Television Network
gave her a late night talk show, The Late Show Starring Joan Rivers, making
Rivers the first woman to have her own late-night talk show on a major network.
However, unbelievable tragedy struck. She and her husband
were fired from the show and following his death that same year, she learned
she was in debt to the tune of $37 Million!
Broke, alone, and jobless for once in her life, Joan was without words. However, she did what she knows best; she went back to work.
THE FASHIONABLY BROKE POLICE
Yesterday is history, tomorrow is a mystery, today is God’s gift, that’s why we call it the present.
I was a financial idiot.
Others may be smarter than you and know how to manage your money better, but you care more.
It was in 1989, The Joan Rivers Show, which ran for five
seasons, put Joan back on the map and in the driver’s seat of her financial
life.
Joan designed a jewelry line, clothing and beauty products and sold them on QVC. She said that she had bills to pay as to the reason to become a celebrity entrepreneur selling products on QVC. By the time of her death, sales of her products exceeded $1 billion!
During this time in the 1990’s, Joan wrote best-selling
books, hosted television shows and won an Emmy!
Joan had charted her own path to success and financial
security.
Don’t follow any
advice, no matter how good, until you feel as deeply in your spirit as you
think in your mind that the counsel is wise.
One of my favorite stand-up comedians is Chris Rock. I once saw an interview where he said Joan was an underrated comic.
On another interview, this is what Chris Rock said:
You think she’s better than Robin Williams?
Yeah, well, put it this way, she could definitely follow
him. That’s it. You as a reporter might go one way or the other. But put a
bunch of comedians in a room and go, “Okay, who’s going to have a good set?”
Who could Joan Rivers NOT follow? You’re not going to come up with anybody’s
name. There’s literally no one in the world Joan Rivers couldn’t follow and
blow off the stage.
It’s problematic to
label her a female comedian?
You know, she did do a lot for women, but she did a lot for
comedy. Please! A lot of my style is Joan Rivers. A lot! But, you know, nobody
would ever say that because we don’t look alike. She’s one of the greatest to
ever live!
What do you mean a
lot of your style is Joan Rivers?
I mean, just watch me on any awards show telling jokes about
celebrities. Who started that shit? Joan Rivers! [Laughs.]
Joan continued her grueling work schedule in the 2000’s.
The comedian hosted E!’s “Live from the Red Carpet” from 1996 to 2004 and later became a co-host on E!’s “Fashion Police,” which premiered in 2002. She did this with her daughter Melissa Rivers.
Joan was hilarious on this show. Remember that one time she tried to give Kelly Osbourne dating advice. You don’t? No problem. I found someone on Twitter who stays well-informed on all things fashion.
Joan insisted she date an older man.
Kelly Osbourne: “I don’t want old balls, Joan.”
Joan: “Old balls roll to Tiffany’s.” 😂
In 2009, she won “The Celebrity Apprentice.” Then starred in “Joan & Melissa: Joan Knows Best?” and constantly toured doing comedy gigs and guest starring on television shows.
THE LAST LAUGH ALL THE WAY TO THE BANK
And JOAN GOT PAID!!!!
Some of Joan’s best jokes were about money. She made a mint
off of telling jokes about wealth. Smart lady!
I don’t exercise. If
God had wanted me to bend over, he would have put diamonds on the floor.
The first time I see a
jogger smiling, I’ll consider it.
Every woman in this room tonight: Think like a second wife. You grab and you take. You grab and you take. And when you die, whatever you got out of him you have buried on you. If the next bitch wants it, make her dig for it. 😂
I’ll write for Hitler
for $500
“Elle says she and
Dakota are ‘normal sisters’ who just go to school and play together…In their
six-hundred-room mansion on the island they own.”
Joan even joked about marriage and divorce. Nothing was off
limits!
“Half of all marriages end in divorce—and then there are the really unhappy ones.”
“I would never get married again. Never, absolutely not – but for 10 carats, maybe.” 😁😂
That reminds me of a hilarious joke I remember from the late Robin Williams.
He said: Divorce is expensive. I used to joke they were going to call it “all the money”, but they changed it to “alimony”. It’s ripping your heart out through your wallet.
She wrote 13 best-selling books. Her work calendar was FULL!
She had gigs lined up for months.
Joan said that for her a calendar full of gigs equals happiness.
I saw in one television documentary about her that she would write all her jokes down and put them in a large file cabinet with toms of tiny draws to house her wit. She said at her age, people forget things, and that includes jokes so she writes them down.
Joan Rivers: A Piece of Work
Her biggest money-maker was her QVC royalties. At the time
of her passing, it was reported that she was earning as much as $50 million per
year!
She enjoyed a lavish lifestyle. She has a Penthouse in
Manhattan reportedly worth $35 million, antique furniture, rare books and other
assets of valuable such as diamond jewelry and artwork.
When asked why she works so much as she can retire rich, she
replied that she wanted to live lavish and opulently. She did not want to cut
back. She wanted to enjoy creature comforts, spend her wealth, and help and
support others with it. Working allowed her to do that.
Not bad for a woman who nobody though would make it. Underestimated,
underrated, undervalued, and unappreciated in every way. But in the end, the
duckling turned into a beautiful swan.
A very rich one.
So, cheers to you Ms. Joan Rivers. Joan may be gone but she’s
still getting applause.
And when it comes to finances, from me she is getting a standing ovation.
That’s what keeps me going: dreaming, inventing, then hoping
and dreaming some more in order to keep dreaming. – Joseph Barbera
This is the truth: I’d rather fail at this, whatever failure
is, than waste my life doing something elses, and feeling empty. – William Hanna
If you grew up in the 1960’s through the 1990’s, then you are sure to remember the Hanna-Barbera produced cartoon series The Jetsons. The Jetsons is an American animated sitcom, which originally aired in primetime from September 23, 1962, to March 17, 1963, then later in syndication, with new episodes in 1985 to 1987 as part of The Funtastic World of Hanna-Barbera block. It was Hanna-Barbera’s Space Age counterpart to The Flintstones, another show they also produced.
In contrast to The Flintstones comical version “stone age” world, The Jetsons lived in a comical version of a futuristic world that was powered by gadgets, robots, and machinery.
The Jetson ran in reruns for decades on ABC starting in the
1963-64 season, and aired on Saturday mornings.
The Jetsons stands as one of the single most important piece
of 20th century futurism. The 24-episode first season has come to define the
future of Americas present.
The Jetsons are a nuclear family in the “space age” future residing outer space in a place called Orbit City. The city’s architecture is Google style, and all homes and businesses are raised high above the ground on adjustable columns. The year is 2062. Although, the show always references it’s the 21st century. The family consists of a husband, wife, two kids and a dog.
Let’s meet the family.
“Meet George Jetson…”
George Jetson lives with his family in the Skypad Apartments: Jane his wife, daughter Judy, and his boy Elroy. He works at Spacely’s Space Sprockets where he has a (relatively stable job) *cough* *cough* sideways glance and air quotes insert here please.
Meet Jane his wife…
His wife Jane is a homemaker, a mother of two children, enjoys the latest fashion, has a robot named Rosie that actually does most of the housework, and is obsessed with new gadgetry.
Housekeeping is seen to by a robot maid, Rosie, which handles chores not otherwise rendered trivial by the home’s numerous push-button Space Age-envisioned conveniences. A show before it’s time. 😉
Her favorite department store is the Mooning Dales. She enjoys charity work as she is a member of
the Galaxy Women Historical Society and is an avid art fan of Leonardo de Venus
and Picasso Pia.
I love how they take things and make them their own version
on this show. However, somethings need no modifications or improvements. For
instance, in my opinion, I say pay cash for all appliances like they did before
the invention of credit cards in the 1950’s.
However, some things do. A great response that a movie star
once gave when asked about changing silent films to “talkies” that is films
with words, was the following:
“Talking pictures are like lip rouge on the Venus de
Milo.” – Mary Pickford (The Queen of the Movies)
Variant: Adding sound to movies would be like putting
lipstick on the Venus de Milo.
And meet their kids…
Daughter Judy: their teenage daughter Judy attends Orbit High School. She enjoys buying clothes, hanging out with boys, listening to music, having fun, and talking to her digital diary she calls DiDi. (That ain’t nothing but FaceTime 😉
Some may even call it a Vlog or Vlogging, which is similar to a Blog and Blogging.
His boy Elroy: their son Elroy attends Little Dipper School. He is wicked smart. As sharp as they come, and just whip smart. He is a mild-mannered child that enjoys all space science such as astrophysics, star geometry, and space history. His best friend is his dog; the family pet dog named Astro.
Now, let’s talk about the future. Financially speaking of
course.
Meet George Jetson . . . His boy Elroy . . . daughter Judy . . . . Jane his wife. I just love that song.
Fun Fact: The theme song to The Jetsons was a pop hit in 1986 on the Billboard charts.
MAKE THAT MONEY: FROM THE SALT MINES TO SPACE OFFICES
1. Earn a living
George Jetson works for Mr. Spacely and he owns Spacely’s
Space Sprockets. R.U.D.I.: is George’s work computer and one of his best
friends. His name is an acronym for Referential Universal Differential Indexer
and he has a human personality.
Based on which version you have heard, George works either one-hour-a-day, two-day-a-week or three-hour-a-day, three-day-a-week job. Either way that’s a workweek of no more than 3-9 hours. Pretty sweet!
A common theme on the show was George being fired.
That is all too common in today’s time too.
The retail apocalypse, such as the recent closure of Payless shoe stores, has cost thousands of American jobs. Toys R’ Us resulted in about the loss of 30,000 jobs alone.
Here is some dialogue from the show.
Episode Unilab
(Nov 25, 1962)
George Jetson:
It’ll be easy. I’ll just tell Mr. Spacely I’m very sorry and that I’ll never
call him names again.
[Nearly has a head-on collision with another car]
George Jetson: Why you big strata-jerk. It’s vacuum-heads like you who keep fuselage and fender shops in business. Come on out and face the music.
Mr. Spacely: [Emerges from the other car] ‘Morning, Jetson. Nice day isn’t it?
George Jetson: M-M-M-Mr. Spacely, I presume?
Mr. Spacely: That’s correct. I hope you’re wearing your watch, Jetson, because you have exactly 5 MINUTES TO CLEAN OUT YOUR DESK!
Mr. Spacley: JETSON. YOU’RE FIRED.
Fun Fact: Forbes made a list in 2007 and figured out what 25 fictional companies would be worth in today’s market. Spacely Space Sprockets, where George Jetson worked, ranked number 25 on their list. Listing its worth as $1.3 billion. In the article it said, “[CEO] Cosmo Spacely’s coddled employees said to only work three-hour-a-day, three-day-a-week jobs, but workers must suffer his notoriously volatile temper and endure incessant termination threats.”
In the illustrious words of Charlie Brown, “Good Grief.”
Although, on the show its comedy fodder, in the real world
this is no laughing matter. Due to the lack of financial teaching and literacy
in public school (where like 90% of preK-12 students go), many people are left
unprepared financially for setbacks. You must plan ahead.
I read this information on public versus private school
enrollment predictions in the Huffington Post. According to the U.S. Department
of Education, most preK-12 students, about 91 percent, go to public school.
I, personally, plan 2-3 years ahead or more if I can. I started by paying off debt, then rerouting that money to savings and investments. I have a minimum of 6 months’ emergency fund at all times, $100,000 invested in 1 out of 5 index funds, own a home that was way less than $1 million to buy, and am striving to have a 12-24-month emergency fund for those just in case moments.
THE GOLDEN AGE OF AMERICAN FUTURISM IN TECHNOLOGY
2. Automation is on the rise
The Jetsons it had everything our hearts could desire: jetpacks, video chats, e-books and electronic newspapers, flying cars, convertible objects, computerized watches (Apple Watch anyone?), robot maids, air chamber elevators, and moving sidewalks. They even predicted tanning beds! Tanning beds didn’t come into the U.S. until the 1970’s. This show first aired in 1962!
The Jetsons showed a technologically advanced culture where the largest concern of the middle class was getting “push-button finger.” And yes, The Jetsons were middle class! And still living paycheck to paycheck in the techno-savvy utopian future.
Grinding it out in the rat race.
” I told them 1,000 years from now or a million years, the problem is always going to be parking.” – Joseph Barbera
Think people don’t think much of this show or write it off
as merely a cartoon. Think again.
James Cameron was once asked about interactivity for future
movies. He concedes it is far off and replies: “You’re talking ‘Jetsons’ here.”
Your girl, Greenbacks Magnet, even recently did a shout out
to The Jetsons in a tweet.
See my tweet
I don't even want phones anymore. I'm sick of paying the bill.
On the 15th episode of The Jetsons, which originally aired on January 6, 1963 and was titled “Millionaire Astro.”
This episode shows how their dog Astro came from money. Elroy found Astro on the street. His original owner wants him back. A custody battle over Astro ensues where the original owner wins and he is returned to the estate. Given a life of incredible wealth and boredom (All the steaks he can eat, all the bones he can gnaw on), Astro is depressed and drowned in wealth and extreme luxury.
Meanwhile, George teeters on the edge of middle and working
class, while it seems that everyone is living in the lap of luxury, but
tangible quality of life improvements have not funneled down to those at the
bottom of the economic pyramid.
You may remember they did similar stuff like this at Walt
Disney studios with the cartoon Ducktales.
Case in point, The Occupy Wall St. movement, Americans being
reported to not have $400 to cover an emergency, little to no retirement
savings, and living off meager Social Security and minimum wages.
If my memory serves correct, didn’t Real Estate Mogul Leona Helmsley leave her dog like $7 million? In addition, I recently heard rumblings that the recently deceased Karl Lagerfeld (House of Chanel) and worth over $100 million, may have left $2 million to his dog? Interesting and disturbing.
ENTERTAINERS ARE ALL THE RAGE OR A SCREAM
4. Rock star money
One of the funniest things I ever saw on The Jetsons had to be Judy’s obsession with celebrity. And one in particular: Jet Screamer.
He is the quintessential rock god. The sun, moon, and the
stars revolve around him. People go wild when he comes in a room (as he always
makes a grand entrance). You get to see first-hand that he is living a very
different life than the average-joe.
In today’s time, that is still very relevant. I have nothing
against people with talent or those that create something out of nothing. It’s like Shakespeare says, “I am a true
laborer. I earn that I eat, get that I wear, owe no man hate, envy no man’s
happiness, glad of other men’s good.”
However, after
hearing so many stories of celebrities going broke, it makes me wonder if he
really is making all the dough we think he is as a rock star. For all we know,
Jet Screamer may be making $12,000 on 2.5 million downloads of music from Apple
iTunes as I read something like that in an article online. Maybe, he is making
$0 after all the money he owes to mangers, lawyers, stylists, and publicists.
Who really knows?
Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver. -Ayn Rand
Many of you out there I am sure have heard of Bigger
Pockets. It is the place to be for anyone interested in Real Estate (RE).
Basically, they are the Facebook of Real Estate.
Bigger Pockets (BP) is the real estate social network. You
can find out all types of things such as how to finance rental properties, find
property management companies, and how to invest in real estate.
While on my journey to learn ALL THINGS MONEY, I came across an interesting post called House Hacking.
For readers of my blog, you know I am a fan of Millennial Money (MM). Grant Sabatier is the money genius behind that site and because I was a fan of his is how I came to learn about Bigger Pockets. I learned so much from Grant that I wrote a blog post about how he inspired me to save more money.
It was on his website that I read about House Hacking, which is when you live in one of the multiple units of your investment property as your primary residence, and have renters from the other units pay your mortgage and expenses.
Like I stated on my last post, one of the biggest expenses
in any budget is housing. The trifecta of expenses is housing, food, and
transportation. If you can cut your expenses in this area, you are g2g (Good to
Go). 😉
It just so happened that he did an interview with Scott Trench
from Bigger Pockets. I am not the best when it comes to listening to podcasts,
as I prefer to read books! However, the podcast is transcribed so I read
through that. Great idea there Grant. The transcription was so good that I
listened to the podcast and just like that a fan of BP was born.
That is what made me decide to pick up the book How to
Invest in Real Estate from Bigger Pockets authored by Josh Dorkin and Brandon
Turner.
I just so happened to post a tweet and saw FINCON ask what books am I reading? So I answered and tagged the authors of the book. To my surprise, Josh Dorkin replied to my tweet and said thank you for reading and asked if I would post a review on Amazon.
Since he was polite in asking for this small request, I not only did the Amazon review (still pending as of this writing), but I also decided to review the book on my site. They say ask and you shall receive. So, I gave him a 2-for-1 and posted a review and did this blog post. One tweet did all of that.
So, without further ado…
How to Invest in Real Estate: The Ultimate Beginner’s Guide to Getting Started
THE #1 QUESTION
The reason Brandon and Josh wrote this book was to help
people. One of the most asked questions they get is, “How Do I Get Started
in Real Estate Investing?”
Well, guess what? They say ask and you shall receive, right?
Then Brandon and Josh answered.
They wrote this guide to help people along their way.
Although, the Bigger Pockets forum and blog is filled with tons of information,
it can be overwhelming. Where do you begin?
This book packs many of the interviews they do on the podcast and brings it together in one place as a reference guide.
WHAT WILL YOU LEARN
The guide contains eight chapters but my three favorites are: Chapters 1, 4, and 7.
The book will show you the following:
How to get started in Real Estate?
How to invest with no money, bad credit, and
with a full-time job?
Why you should save cash reserves?
What is an LLC? Do you even need one?
Real Estate Niches (as the riches are in niches)
😉
12 Ways to Finance your Real Estate Deals
Real Estate Exit Strategies
I think the reason people choose to invest in RE is not only
to get rich (obviously), but to have more financial control over their lives.
In addition, real estate is tangible. Unlike stocks, bonds, and CD’s you can drive by and visit with your investment. Have a cup of coffee in it. Heck, you can even live in it!
THE REAL WORLD OF INVESTING
Remember the television show “The Real World” on MTV. Well,
that was a lot of fiction and made up drama for ratings. This book provided
insight directly from RE investors with real world experience.
One of my favorite stories actually came from Chad Carson of the Coach Carson blog site. Chad decided the go big or go home route to RE was the best route for him. His niche was house flipping.
He tested this hypothesis and decided to change courses. Instead
of trying to flip 50 properties, he then decided to do less for the sake of his
sanity. This method worked.
This taught me that flipping is NOTHING like the television shows portray. We are getting the Campbell Soup version (condensed). I need the 💯 real.
You must find out what works for you. Although, you can
learn from the mistakes of others, usually trial and error will show you the
way. Fail fast, early, and hard. Then you can start to profit from your
knowledge and experience.
The book is filled with tons of stories. I just shared one.
If you want to learn more about Real Estate, then hop on over to Bigger Pockets. You can also look up some real estate blogs and books. Just like I did with this one.
Have you recently wrote a book? Are you looking for a review? Do you want to be Greenback’d? Tweet me. I’ll be here @mjp2520
“Fashion is not about utility. An accessory is merely a
piece of iconography used to express individual identity.” – The Devil
Wears Prada
I am sure many of you have seen or heard of the film The Devil Wears Prada. It was released in 2006 and based on a book written by Lauren Weisberger in 2003. The film starred Anne Hathaway, Emily Blunt, Stanley Tucci, and Meryl Streep. The film was a financial success and grossed millions at the box office.
What really made it great was the dialogue in the film. If you can decipher all the quips in the film, you can get some valuable money and life advice. All fiction has some truth.
Check out some hilarious, but honest, dialogue from the film.
This scene was particularly truthful and funny, but on point.
Let’s see him actually use facial expression to get his point across. 😂
“Yes, because that’s really what this whole multibillion-dollar industry is all about, isn’t it? Inner beauty.”
So, with no further ado, I give you lessons I learned while watching the film The Devil Wears Prada.
Let’s go!
SPENDING ON HIGH-END FASHION CAN MAKE YOU BROKE
I will not bore you with the details of countless celebrities who post their closets or other lifestyle choices on social media only to find out years later they are BROKE!
I have reviewed and studied many bankruptcy filings over the years. For work when necessary. And outside of work to satisfy my curiosity. In addition, to reading books on bankruptcies, I seem to notice the following patterns.
Tons of credit card debt (usually more than $25,000)
Huge mortgages (for celebs this can be in the millions!)
Exotic Automobiles (BMV, Range Rovers seem to be favorites)
Property liens (foreclosures and short sales)
Thousands owed to the IRS (several celebs such as Willie
Nelson and Chris Tucker owed the IRS more than $10 million dollars!)
In the film, Andy (played by Anne Hathaway) gets a job as the second assistant to Miranda Priestley (played by Meryl Streep) and works with the first assistant Emily (played by Emily Blunt) and staffer Nigel ( played by Stanley Tucci).
They regularly and casually name drop designer labels such as Tom Ford, Yves Saint Laurent, and Oscar de la Renta.
If you look up any of these haute couture designers, you will find clothing that ranges $500 to $10,000. You could drop $25,000 in their establishments in a single visit easy. The fact that you could turn that money into a fortune from investing is lost on those that buy these clothes.
I am not saying not to buy clothes. I am not saying not to
buy designer clothes. What I am saying is that I need people to recognize that
if you truly cannot afford to spend like the Queen of England, then you should
act your wage. Buy what you can afford. If you want pricey clothing items or
fancy toys, then buy them when you have made your first $1 million or second,
but not before.
If you ever watched that Chris Rock comedy special where he talks about the difference between a job and a career, then you understand what I mean by this.
A job pays the bills.
You watch the clock waiting for it to hit 5 o’clock and rush
out of work like the building is on fire.
With a career, there is never enough time. You don’t watch
the clock. You work for the sheer joy it brings you. The paycheck is a bonus in
recognition of and a result by dint of hard work in excelling at what you do
because of your drive and passion.
In the movie, Andy is working in this job to land a bigger and better one down the road. That is all well and good, except for the fact that Miranda is a slave driver.
If you do some research, you can find what are the most
expensive zip codes in America and the world.
According to Forbes, this would be 94027 in Atherton, CA
where the median price of a home is $9,686,154.
You see the stark contrast of living conditions in the film.
Andy lives in a small walk-up apartment in New York, while Miranda lives in the
modern day equivalent of a palace with several floors and spacious rooms that
could easily set you back for $2 million in New York.
One of the biggest expenses in any budget is housing. The
trifecta of expenses is housing, food, and transportation.
While listening to a podcast on BiggerPockets, I learned
about house hacking.
House hacking is
when you live in one of the multiple units of your investment property as your
primary residence, and have renters from the other units pay your mortgage and
expenses.
If you can cut your expenses in this area, you are g2g (Good
to Go). 😉
Please do not get caught up in the zip code and school
district rat race. I say this because people will buy properties they cannot
afford in good school districts and pay astronomical property taxes instead of
investing that money. This can lead to retirement shortfalls if you are not
careful.
My advice is to buy what you can afford and save the
difference. Truth be told, when I looked up profiles on Facebook, I noticed
that folks I knew that went to private school ended up going to the same
colleges as everyone else including myself.
Matter of fact, I know folks that were “C” students in high
school and still managed to eke out an existence and graduate from a flagship
university while some private school kids went to second tier state schools. Go
figure.
You could live in a safe but affordable neighborhood, drive
Hondas, and put that money to work in a 401k or 529 college savings plan instead
of paying high mortgages and property taxes. That would pay for college right
there. I’m just saying.
BEAMERS, BENZ, AND BENTLEYS
There was a hilarious scene in the film where she tells Andy not to take public transportation. EVER!
I cannot say I agree with this. Let me tell you why. Public
transportation can save you thousands in annual costs sue to lowering the cost
of mainteannce and repair bills on your car. You could also forgo a car all
together and have no car payment or maintenance and gas to deal with!
So, many people are working the 9-to-5 grind and in the rat
race living check to check, but at the end have very little to show for it.
Nothing in savings. Nothing in retirement. Nothing in the bank period.
For every dollar you earn, I suggest you find a way to stash away 5% of what you earn and slowly start increasing your savings rate monthly or annually by 1% or more. This will get you in the habit of saving and also allow you to start building an emergency fund.
During the film, Andy talks about getting some amazing job as a writer. However, this job is all about paying her dues.
You do not get something for nothing. You have to give to
get. That’s the bottom-line.
Building strong relationships is to key to growth and a
happy life. People rarely look back and say I wish I could have worked more!
Take pictures today. In 20 years, you will be glad you did. In
reality, people think more about the things they didn’t do instead of the
things they actually did.
So, stop and smell the roses while you can. Right now! Bend
down and smell the flowers, take that trip, go visit family, make those phone
calls, send that email, write that letter, hit send on that text message and
stay in contact with those you love and care about.
No one cares about who dies with the most toys. People care
about what type of person you are.
If you remember that episode of Golden Girls, Sophia wanted
to know who would show up at her funeral, so she spread the word of her
passing.
The people who show up are the ones who care.
Your legacy is not built in things, but lasts in the minds and memories of the people whose lives you’ve touched or changed in some significant way.
Money will not and cannot buy true friendship or loyalty. If
you are watching the news right now, you can see that for yourself firsthand
with Michael Cohen.
Focus your energy on doing good things and good work so you
will not ever have to look back and regret.
All human wisdom is summed up in two words; wait and hope. –
Alexandre Dumas, author of The Count of Monte Cristo and The Three Musketeers
As I am sure by now you can tell, that I like to not only be entertained, but to entertain my readers as well. Well, this blog post du jour will be no different. One of my favorite stories is one that was written many years ago.
This tale has it all. Money. Lust. Power. Greed. Revenge.
I am sure many out there have heard of the book called The
Count of Monte Cristo. It was written by Alexandre Dumas in 1844. Although, the
book’s origin is over 200 years old, its plot is just as poignant today as it
was then.
The story takes place in France, Italy, and islands in the
Mediterranean. The Italian island of Monte Cristo is where the protagonist in this
story derives his name. The historical events in the novel happen between
1815-1839, during the time Napoleon Bonaparte was exiled. A true adventure tale
that involves the themes of betrayal, hope, justice, vengeance, mercy, and
forgiveness.
The plot involves a young sailor that is wrongfully accused
of a crime he did not commit. Falsely
convicted with no trial and imprisoned, he escapes from jail, acquires a
fortune, and sets out a plan to exact revenge on those who conspired against
him.
His name is Edmund Dantes. And this is his story.
This post will focus on the 2002 film version of this story.
So, sit back, relax, pull up a chair, pour yourself a glass of wine, and enjoy this post.
Money Nuggets of Wisdom I got from The Count of Monte Cristo.
ALL WEALTH BUILDING STARTS WITH INCOME
Money Nugget One:
You must earn money to save money. Frugality allows you to save more money.
In order to even start building wealth, you have to have
income. Money needs to come in before you can start saving any. But make no
mistake, all wealth building starts with saving. Once you have money to save
then you have to allocate funds to savings.
Please do not discredit the act of saving and frugality. It is far easier to slash expenses and save then it is to make more money.
Work with what you have. It will be far harder to save once you start making more money. So, start saving while you have small sums so you will already be in the habit to do so when you have large sums.
And make time to spend on fun. Do not cut back on fun. Spend more on fun. It will give you the energy and inspire you to earn and save more money. So that you can have even more fun.
I started by reviewing my bank statements and seeing what I
was spending.
I made the decision to get rid of as many fixed expenses as
possible. In addition, as I paid off debt I would incrementally up my savings.
I started with $1 a day. That was $365 a year. Then went to $50 per month and so on until I finally reached $13,333.06 a year. I cut out tons of subscriptions and services I didn’t need or wasn’t using. Once I saw how much I could save and in such a short time period, as I went from saving $3k a year to $13k a year within 12 months, I started realizing the power of saving.
In the film, Edmond (played by Jim Caviezel) is a Second
Mate of a French merchant vessel. It starts in 1815. As their ship’s captain is
ill, Edmond commands the ship to stop on the island of Elba. Napoleon Bonaparte
offers the help of his physician’s services if Edmond will deliver a letter. And
is sworn to secrecy.
Keep in mind, Napoleon is in exile and any correspondence delivered
from him would be considered to be treason to the French monarchy as he is an
enemy to the crown. The letter was to be
delivered to a powerful politician’s father. You can pretty much guess where the story is
headed.
Upon his return home to Marseille, he is rewarded for his bravery and promoted to captain over another gentleman that was First Mate by the name of Danglars and at the ire of his friend, Fernand Mondego (played by Guy Pearce). This provided Edmond with enough income to marry his fiancée, Mercedes (played by Dagmara Dominczyk).
Mercedes
However, before that happens, Edmond must deliver the letter he promised. He gives it inadvertently to the son of the man the letter was meant for. The politician J.F. Villefort (played by James Frain) said the letter was treasonous. It is revealed that Edmond could not read. All was good until he said the name of who was to receive the letter. Upon hearing his father’s name and knowing it would ruin his political career, Villefort burned the letter and ordered Edmond to be arrested.
RICH IS RELATIVE
Money Nugget Two: Rich is relative
Edmond escapes arrest and goes to his friend Fernand’s house. His father is a count and he goes there for help and protection. However, his friend turns him in to the gendarmes (the French police). As he is arrested, he gives Edmond a chess piece as that is game they used to play as a parting gift.
Then Edmond asks, “why?” He replies that he should not envy the son of a fisherman or someone not of noble birth. That’s cold.
At this point in the film, you are reeling. A good man has
been falsely accused and arrested. Put away in prison for life because he was a
pawn in a much bigger scheme. One he was unaware of.
Let’s stop and think for a second.
Let’s meet the money players. Because everything always comes back to money. If you truly want to know something., then follow the money.
Villefort is a well-known, connected, and in a respectable position of a salaried politician.
Danglars is an educated shipman.
Fernand is the son of a count, wealthy, of noble birth and education.
Edmond Dantes is none of those things. He had to work for
every dime. He is poor and illiterate. When a sacrifice had to be made and a
lamb had to be slaughtered, the sacrificial lamb was a poor man. Just something
to think about right there.
Although, these people have money and connections, all of them disliked a man of no means, who lacked money, prestige, position, power, and education.
Money will not make you happy as you can clearly see from above.
Money itself has no power. It is what you do with it that gives it meaning or power. It does have the power change lives ad make life easier, but that’s about it. Therefore, rich is relative. It is what you perceive it to be.
Perception is reality.
Rich is different for everyone.
NEGLECT CAN BE AN ALLY
Money Nugget Three:
You can build a fortune without anyone knowing. Stealth wealth anyone?
One of the best parts of the film happens while Edmond is in prison. After six years, he meets a fellow prisoner by the name of Faria (played by Richard Harris), who was once a general in Napoleon’s army. He himself has been imprisoned for 11 years because he would not divulge the whereabouts of a secret treasure; the treasure of Spada.
Faria asks Edmond to help him dig tunnels to escape the
prison. They barter. Edmond will only help if the man will teach him how to
read. Faria agrees. In addition, he also teaches him how to fight.
Over the next 7 years, Edmond becomes a scholar and a swordsman.
This was made possible because the guards completely ignored
and shunned them. Their neglect became their ally.
This is similar to a story I read in Millionaire Women Next Door. While a young woman’s parents were ignoring her, she built up a healthy work ethic and saving plan that helped turn her into a millionaire as an adult. Do not let anyone tell you that you cannot be anything you want to be. If it is important to you, then you will find a way.
If I hear one more person tell me they do not have time to
read personal finance books, I’m going to start a bull**it jar and put $20
bucks into it every time I hear that. By the end of 3 years, I will probably
have enough to buy a car with cash.
If you have time to surf the Web, spend hours on Twitter, or read Facebook posts, then you can read about finance.
Now, I need your undivided attention for this next part. Reminder that glass of wine I mentioned earlier? Well, I need you to put it down for one minute.
Once you get all this knowledge, then put it to use. Start
investing. Even better, after you grow your fortune, tell no one. Then they can’t
hit you up for gifts and interest free loans.
Think I’m joking? Look up bankrupt, broke, or rich NBA
players and see interviews where they talk about how friends, hangers-ons, and
family members ask them for money.
I regularly tell people I am just out here trying to make
it, you know, trying to make a dollar out of fifteen cents. Whatever will
distract them from asking me about my money.
Sure, I have money in the bank. However, I am not a bank.
Money Nugget Four: There is power in getting an education.
After one conversation, Edmond was very upset. Faria helped
him figure out who, how, what, and why he was sent to prison for life. That is
when Edmond decides he wants justice. He must live and get out of prison.
Faria is hurt badly in prison, but before he dies, he tells
Edmond where the secret treasure is hidden and provides him with a map. Knowing
this was his chance to escape, Edmond hatches a plan to get out of prison.
After he escapes, he runs into a band of pirates and befriends them.
He then sets off to see old acquaintances and in search of
the lost treasure.
After getting the information he required on all his old enemies
and his nemesis, Fernand, he finds the treasure.
Once a poor man, he is now the richest man in Marseille. He gives himself a new identity; a count. And a new name: Count of Monte Cristo.
I remember hearing this growing up, beauty fades but dumb is forever. You cannot get by on looks alone. Get an education. It could be the difference of a life of penury or extreme wealth. You decide.
MONEY OFFERS PROTECTION
Money Nugget Five: Money attracts money. Money also provides protection.
Edmond Dantes is no more. The Count of Monte Cristo is what he is referred to from this moment on. Everywhere he goes, people hang on to his every word. No one dares to disrespect or cross him to his face, but they will behind his back.
There are some excellent parts in the film as to what he does with his money and how he acquires his home. He is also careful with his identity. He guards it close. He is aloof and cold but not recalcitrant. He is very respectful to all levels of gentry no matter how noble or what manner of nobility a man is. An inferior or low ranking birth means nothing to him. Only power.
You’ll see what I mean in this scene from the film.
In the illustrious words of Charlotte’s Web, “Salutations.” Or in the case of Monte Cristo, “Greetings.” 😉 Now this is how you make an entrance! This is my favorite scene in the film.
Monte Cristo is nobody’s fool. He has been to both sides of the island. Having been voted off the island of poverty so many years ago, he knows which side to be on.
“In this life we are either kings or pawns, emperors or fools.” – Napoleon Bonaparte
Money is not only a tool, but one of protection. You can
afford to pay your fare and your fair share of any financial obligations.
Financial mediocrity is a fool’s game. You should respect money and take care
to grow your money so that you can pay your share of any bill that comes in
your mailbox.
Money offers protection from eviction.
Money offers protection from sleepless nights and worrying
how to pay bills.
Money offers protection from bankruptcy.
Money offers protection from poor health.
I think you get my point.
I want you to be protected. I want you to have the means to
take care of yourself and your family. That is why I write. I want to help
people improve the quality of their financial lives. I want you to be
self-made. I want you to be a financial
rock star. To fulfill your dreams. And if you happen to look for suggestions on
good reading materials, you can come here.
May I suggest this literacy classic be one of those books, The Count of Monte Cristo, on your road to wealth that you pick up along the way. Or check out the movie and see how the story ends.
If you enjoyed this post, then you will not regret it.
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