Worry is the interest paid to those who borrow trouble. –
George Washington
Finance it! That should be slapped on bumper stickers across
the country.
There are now loans for just about anything you can think
of. Whatever your heart desires, you can finance. Almost.
My father would say that people need to learn discipline as
they want to do every whimsical little thing that comes to mind and this can
cause trouble in your life.
I learned at a young age that trying to get your little
hands on everything you crave is a gateway to higher levels of debt and
spending.
It starts with one video game and then balloons to buying
the console, accessories, new games every other week, and monthly subscriptions
to gaming magazines. That quickly escalates to $1,000 iPhones, $2,000 MacBook’s
and flying first class everywhere. Even if it is drivable and only a few states
away.
How is all this lifestyle creep paid for?
With plastic.
After working at a federal credit union, I got the inside
peek behind the financial curtain into many strangers lives.
Some people are clinging to their middle-class status like
the ones they had in their childhood upbringing, while others are dangling over
the financial edge and many more have fallen over the financial precipice
completely.
Financial institutions knowing this fact, as wages have been
stagnating since about 1979, are all too eager to fill that gap in earnings
with loans.
Let’s find out what type of debt is out there awaiting
consumers that are not financially savvy enough to avoid them or are left with
few alternatives to avoid them in the first place.
NO CASH, NO PROBLEM
Quick to borrow is
always slow to pay. – Proverb
How many times have you heard commercials that say your job
is your credit? Get real. Your credit is your credit.
Miss enough payments and that job means nothing. They will
repossess anything.
I saw this up close and personal at the credit union. I saw
cars getting repossessed, families stressed out and on the edge of a financial
cliff, and those with bad credit had it the worst of the lot.
Is your credit score too low or in the 500’s? Forget about
it. Either you will not be able to borrow or it will be at interest rates so
high you will be paying off that sweater you bought for your kid’s 3rd
birthday when your kid goes off to college.
Do not be fooled into thinking companies are being so nice
to give you this product for low monthly payments. That low monthly payment of
$42 over 24 months is still over $1,000!
If you must borrow, get those scores up. That way you pay
less interest.
IS IT FOR SALE?
Of course, it is! Everything is for sale. And its pricey
too.
“A business that makes
nothing but money is a poor business.” – Henry Ford
They will let you subscribe to just about anything, for a
fee. Much unlike this blog, which you can subscribe to for free, you have to
pay for anything you deem necessary or desired for your life.
Just because it is for sale does not mean you are not
shelling out big bucks for it. Case in point, if an item is on sale for 25%,
then you still have to pay 75% to take the item home with you.
I say skip the for sale signs and racks and focus on only
buying quality products that you need and truly want, but that you can actually
afford.
BUY NOW, PAY LATER
As an individual who
undertakes to live by borrowing, soon finds his original means devoured by
interest, and next to no one left to borrow from – so must it be with a
government. – Abraham Lincoln
This is what I feel is the old bait and switch. Sure, you
can finance it now and pay later, but later is going to be a long time and it’s
going to cost you…A lot.
I say avoid paying interest and forever and a day.
No one ever went broke
underestimating the taste of the American public. – H. L. Mencken
Over the years, I have started noticing more and more that
not only is everything for sale, but it is able to be financed.
What has been really glaring has been the new loans that
have crept up and put out in the main stream for the last 10-15 years.
What loans am I talking about?
Holiday Loans (for Christmas Presents)
Vacation Loans (finance that cruise)
Internship Loans (finance additional training
along with college tuition)
Summer Loans (for the gap between Fall and
Spring college semester)
Care Credit (healthcare financing)
Hurricane Loans (National Disaster Loans)
Government Assistance Loans (Government shutdown
loans)
That’s right. If you have never heard of some of these loans
listed above, that is because they are not often advertised except during
certain economic times or periods or places such as college campuses or certain
banks.
Do you really want to finance Christmas?
You take out a loan for $1200. You have 12 months to pay it
back with interest. The time you were supposed to be saving (the
previous 11 months) you were repaying this loan. That leaves you for no funds
for the following Christmas. You go to the bank and they say, “we have this
loan that could help you out.” Just skip it.
Better yet, have the family pull names out of a hat and just
buy a gift for that one person. Save a
fortune. Your bank account will thank you.
The ones that really get me steaming are the National Disaster and Government assistance loans. People are in a vulnerable position and you want them to go into debt! More debt! Really?!!
No one plans for national disasters. You can plan your
finances, but some things are not all foreseen.
For instance, some people lost their homes during the most recent
hurricanes in Puerto Rico and Texas. The insurance companies were saying they
had to pay a deductible to get their home rebuilt. This was to the tune of
$5,000! Most people don’t just have that type of money laying around.
Borrowing will only put you deeper into debt and unable to
save when an emergency like this happens.
The worst by far is government assistance loans for the
government shutdown. Folks would not need a loan if they could save. Now, you
want more of their money, which they don’t even have? What sense does that
make.
I say focus on building up the rainy day fund so you are not
caught out in the financial rain without a savings umbrella.
HOW MUCH IS THAT LEXUS IN THE WINDOW?
“A business that
tries to save money by not advertising, is like a man who tries to save time by
stopping his watch.” – Henry Ford
It’s all about advertising.
That’s why so many people are pulling up in Target parking
lots wearing Gucci boots, carrying a Louis Vuitton purse, all the while texting
on an iPhone on to buy $10 socks that are marked down and dare I say it On Sale.
I see more folks driving luxury vehicles now than I have
ever seen in my life.
What happened to just needing to get from Point A to B?
Please do not let the smell of new leather cause you to have
empty pockets. No car or gadget is worth going into debt over. Or worse yet,
going broke.
On one television show, I saw a mother of two young kids
trying to see if she could come up with the rationale to finance a $100,000
car! Do not do that. It is not worth it.
Sell to the masses, eat
with the classes. – Henry Ford
It has been often stated, if you sell to the classes, you’ll
dine with the masses. But if you’ll sell to the masses, you’ll dine with the
classes.
Another spin on this quote is this one here.
Sell to the masses, eat with the classes. Sell the classes,
go belly up!” – John F. Savage
It is said the majority of people rent this world from a
minority of people. That is how it goes. Unless you change the status quo.
Become an owner. Keep more of your money and always invest.
They make it all too easy for you to sign on the dotted line
and then have to fork over 25% of your paycheck just to pay for your items.
I want to pay for the item, get it handed to me, then
transaction over. Installments suck!
I say save for what you want.
Not sure where to start.
Just start small. Even saving $5 a week just to get in the
habit of saving is better than doing nothing and having no savings at all.
So, please do not sign on the dotted line. Do everything you
can to save. It will be your safety net should real disaster strike because
when it does it’s like lightning. It usually strikes fast and more than once.
Play good defense and save. Surround your financial house
with savings. Do not get tackled because you left your wallet open, figuratively
speaking.
Earn the spotlight on your own merits. You’ll feel better. – Serena
I was reading a book when I decided to take a walk down memory lane and watch Gossip Girl on Netflix.
For those of you that may not know or remember the show, Gossip Girl was a show about privileged American socialite teens at an elite and exclusive academic prep school in Manhattan’s Upper East Side (UES); whose every move was texted out through an eblast via tips to an anonymous site called Gossip Girl.
What is Gossip Girl and what it does?
What’s the difference between gossip and scandal? So glad you asked, UES Forever. Anyone can commit a minor indiscretion and generate a day’s worth of buzz. But in order for gossip to birth a true scandal, it requires the right person to be in the wrong place. – Gossip Girl
Live in such a way that you would not be ashamed to sell your parrot to the town gossip. – Will Rogers (1879-1935)
The show was on the WB, then the CW, and aired from September 19, 2007 through December 17, 2012. The show was narrated by Kristen Bell (as Gossip Girl). Scandals, scoops, and hemlines run amuck. The show may have had a serious lack of ethics, but it did make for some interesting television.
Gossip Girl is based on a popular book series of the same name written by Cecily von Ziegesar. The adapted television series in 2007 came about from the book series she started in 2002.
Gossip Girl will always have a special place in my heart.
It was in 2007 that I heard this line from the show: You know, Dad, there’s this thing called MySpace where you can post all of this information online. Save some trees, have a blog. – Dan Humphrey
It peaked my interest in blogging. Then, I started this one, Greenbacks Magnet, 9 years later.
Some of the dialogue may be a bit harsh in its tone and delivery, but there was some truth behind some of their words.
Gossip Girl likes to keep things classy and somewhat true. – Serena van der Woodsen played by Blake Lively
Serena is so grateful because she likes to see the best in people. I like to see the truth. – Blair
So, let’s get right into it.
MEET THE MONEY PLAYERS
You got me thinking. If my class is so important to you maybe I ought to make it worth your while. So for the next seven weeks it’s fewer models and martinis, more flow charts and footnotes.– Colin Forrestor played by Sam Page
Last month, on Thanksgiving Day, I decided to watch some Thanksgiving themed movies and television episodes. And I settled on watching Gossip Girl.
The series follows Upper East Siders throughout their never ending drama filled lives that is often self-inflicted. It Girl Serena van der Woodsen is centered around it all and is the star of the show. Her friends and family make up the rest of the cast.
One of my favorite scenes is actually from the first episode of the series. It was a face-off that was incredible between two young women and it set the tone for the show.
The 4 top-billed (in my opinion) and main cast includes the following:
Blake Lively as Serena van der Woodsen AKA S
Leighton Meester as Blair Waldorf AKA B
Chace Crawford as Nate Archibald AKA Golden Boy
Ed Westwick as Chuck Bass Always
If you pay close attention to their conversations, they are dropping some serious money gems.
These little nuggets of life and money wisdom, when interpreted and applied correctly, could transform lives and bank balances.
Let’s begin.
WORK FOR WHAT YOU WANT
Never in my 16,982 hours of schooling have I ever been sentenced to detention. – Blair
Throughout the show, the main cast is always discussing their futures and going to college.
It was almost incessant in the amount of pretentious ponderings of how to be sartorially correct while interviewing for a top spot as a Yalie. And yes, that is a quite accurate assessment of the character known as Blair on the show.
Blair would look and act so innocent and demure like she couldn’t melt butter, but her stare and looks were as cold as ice. Very entertaining.
Here she goes on one of her tirades.
I am so a better fit for Yale than that Rory. – Blair
Now, she’s belittling and disparaging the character of one of my favorite shows Gilmore Girls.
But enough of the $50 words. Let’s talk about the rest of the show.
They attend the fictitious Constance Billard School for Girls and St. Jude School for Boys. In addition, throughout the show you may hear them casually drop names of other schools.
In the Gossip Girl (book series) — it contains the line “two little Sacred Heart girls in their cute red and white checked pinafores were walking an enormous black Rottweiler” on page 86 in the first novel of the series.
Many of the parents are part of high-society and are on boards of prestigious organizations, own businesses, and live in penthouses. They go to great parties, opening nights to the ballet, and fashion week.
You get the impression that these kids know to base their lives around money and making sure to earn piles of it is a must.
They are tireless paragons of poshness. The parties are lavish, the lifestyle is glamorous, and the fashion is couture and expensive. Makes for a great show.
What I noticed was that everyone in one way or another was working hard at trying to make their own way in the world apart from their rich and or famous families.
They chased their dreams relentlessly. Like a boss.
And made huge sacrifices to get what they wanted.
Great leaders only need three hours of sleep! – Blair
They worked, started or interned at major businesses, magazines, for fashion designers, newspapers, literary writers, politicians, and fashion houses.
You’re not likely to get or keep those gigs for long if you are playing around.
“When and if we end up together, it has to be as equals.” – Blair
Yes, indeed. Be independent.
BET ON SELF
Here’s my advice: Have a little faith, and if that doesn’t work, have a lot of mimosas.– Blair in the Wild Brunch Season 1 Episode 2
My family is really into waffles. – Jenny Humphrey sister of Dan Humphrey played by Taylor Momsen
If you want something, go get it. Have some faith in yourself. And good food and conversation go together. I have learned a lot about people when having lunch with them. It’s a great way to build relationships. My favorite meal is brunch. I too love waffles!
Their membership is so restricted, it makes Soho House look like a halfway house. – Blair
They say of you want to increase membership to something then increase the selection criteria.
The Ivy League have made this an art form. As you see on this show, even the wealthy were concerned about their college admissions. There was even some talk of donations to a school to get in. In the end, you see deep down, we all have our insecurities. Accept it, and move on.
I have learned that I am no better than anybody else, but I am always just as good.
KNOW YOUR WORTH
You deserve someone who would move mountains for you if he had to. – Blair to Serena
Normal people don’t get an endless number of chances, no matter the situation. That’s just you. – Dan to Serena
I have heard people say that well-behaved women seldom make history. At least that is what Eleanor Roosevelt said. I guess you can take her word for it as her husband FDR made history.
“I have an idea for you: quit. Your boss is a bi*ch. Let’s go to lunch.”
I have actually done just that very thing. I quit a bad job. Got a better job. And never looked back.
“I’m not a stop along the way, I’m a destination.” – Blair
That line could be someone’s Bumble Bee bio. I call it sophisticated confidence.
“He ended up treating me like something he owned instead of something he earned.” -Blair
You’re worth more than a guest lecture fee, everyone knows that. – Dan to Serena
A man who own a tuxedo shows that he has the means and can afford to provide for his family – Blair in Belles Du Jour Season 4 Episode 1
One of my favorite lines from the show comes from none other than Nate Archibald while talking to Chuck Bass.
Excuse me? Where’s my boy? “Seal the deal.” “Tap that a$$.” “Money marries bigger money.”
Wow. Money marries bigger money. That’s kind of cold, but ok.
I could care less about his Bassets and probably he’s filtering his assets through some foreign government so I won’t know. – Blair on Chuck Bass.
S: So you hired escorts? B, you couldn’t just tell your mom you don’t have friends at NYU?
B: Prostitutes are people, too, and they have a lot of disposable income. – Serena and Blair
Yes, people are focused on income, A LOT.
Take a cue from them and subscribe to The Wall Street Journal, pick up Fortune, TIME, instead of a gossip magazine and follow financial experts on Twitter. Become a devoted student of money, and you can master the science of getting rich.
Jane Austen also so eloquently puts how much emphasis people put on income in two of her novels. And also how to treat others with or without money.
FOR THE LOVE OF HEADBANDS
I know you disapprove of me, but can’t you at least do so in a tuxedo?– Lily van der Woodsen played by Kelly Rutherford
This show loves their tuxedos. And themed parties. Masquerade. Kiss on the Lips. You name it.
It is often said when you look good, you feel good. Well, I concur. You feel more confident as well.
I remember going to a job interview where some folks didn’t take it seriously. I wore a nice dress and some of the men wore suits while others wore jeans.
After I got hired and when I later started the job, I noticed on my first day that all the people that got hired were the ones that were well-dressed.
If you know one thing about GG, you know it’s all about the fashion.
The well-heeled wear nice heels. Blair was known for her love of headbands. People were always giving her grief about it.
Your era is over, and so is that headband. – Jenny
No headbands in college, okay? – Dan to Blair
Et tu, Dan?
SvdW was known for her fantastic sense of style.
And she had more loose interpretation of a school uniform than any person on the planet. The Tie Goddess. See for yourself.
EDUCATION IS PRICELESS AND THE PRICE OF INTELLECTUALISM
S:Wow, and I thought college would be different from high school.
B:Who would want that? – Serena and Blair
These kids were not just applying to any colleges, but the Ivy League. They wanted to be HYPsters (Harvard, Yale, Princeton) or the like. What Blair called the Holy Trinity of colleges. Which are all expensive colleges. We are talking $50,000 USD per year or more.
It was a constant stressor of theirs during the shows first four seasons. Case in point, here is a list of the schools they were trying to get into or that their parents attended.
For instance, Serena wanted to go to Brown and that college and Harvard are where her parents went. Blair wanted Yale and Nate was considering UCLA over Dartmouth like his father. There was also talk of Columbia, Georgetown, and NYU on the show.
It just goes to show you that getting an education is still mighty important.
Serena van der Woodsen or SvdW for short – Brown University, Columbia University
SvdW parents attended – Harvard University and Brown University
Fun show Fact: SvdW dropped out of Brown at the last minute because she wanted to find herself and she felt that moving away to another city wouldn’t help her achieve that. The classic one-year hiatus otherwise known as the infamous gap year before entering college.
This is what Blair had to say to her about going there.
Your deductive-reasoning skills are perfect for a place like Brown. An enclave of trustafarians and children of celebrities who major in drum circles and semiotics, whatever that is. I can’t wait for you to come home next Thanksgiving a militant veganista, anemic and proud. – Blair
It left me speechless.
Blair Waldorf – Yale University, Columbia University, New York University (NYU), NYU – Tisch School of the Arts
Nate Archibald – Columbia University, Dartmouth
Chuck Bass – Columbia University
Dan Humphrey AKA Lonely Boy played by Penn Badgley – NYU
Vanessa Abrams played by Jessica Szohr – NYU
Eric van der Woodsen played by Connor Paolo – Sarah Lawrence
Some character’s shots at the sheepskin, in my opinion, and other honorable college mentions include:
I’m telling you, I learned everything I know about women from Judy Blume’s Forever. – Dan
According to List Challenges, “Gossip Girl” (2007 – 2012) : here is a listing of some of the favorite authors and books of the characters or simply the ones mentioned by them and showed along these 6 seasons, books studied in university, etc.
Many characters also name dropped or were caught reading well-known books by famous authors.
I love the Snowflake Ball. It reminds me of Anna Karenina, only by Anna Wintour. – Serena
Maybe if we become famous writers one day, they’ll publish [our letters] after we die, like Sartre and de Beauvoir. – Vanessa
They also liked to travel extensively. Especially, in Europe such as Paris, France. In addition, they speak more than one language such as French while in Paris.
Elliott’s the perfect mix of smart and fun: He speaks three languages, but he has a subscription to People magazine. – Eric
List of titles includes:
House of Mirth by Edith Wharton – read by Juliet Sharp played by Katie Cassidy
The Lorax by Dr. Suess – Mentioned by Dan
Colette by Gigi – Blair read this on a bench in Paris
Jane Austen books – Pride and Prejudice, Emma, Mansfield Park, Northanger Abbey, Persuasion
Charles Dickens novels – A Tale of Two Cities, A Christmas Carol, Oliver Twist, Les Grandes Espérances
C. S. Lewis books – The Chronicles of Narnia, Alice’s Adventures in Wonderland
William Shakespeare – Othello, Romeo and Juliet, MacBeth, Henry V, Hamlet, King Lear
A few other famous works, Rabbit Redux by John Updike, Cyrano De Bergerac by Edmond Rostand, Les Liaisons Dangereuses, The Crucible (Arthur Miller), Wuthering Heights (Emily Bronte), I Know Why the Caged Bird Sings by Dr. Maya Angelou, The Art of War, The Crucible (Arthur Miller), Madame Bovary, The Old Man and the Sea (Ernest Hemingway), The Beautiful and Damned (F. Scott Fitzgerald), Cinderella (Charles Perrault),The Canterbury Tales by Geoffrey Chaucer, Faust, In Cold Blood by Truman Capote, Anna Karenina by Tolstoy, Walden, The Great Gatsby (F. Scott Fitzgerald), and Beloved by Toni Morrison.
There, I have just given you a reading list that every good high school student or Ivy League hopeful should have. Some of which I have read. My favorite author is Jane Austen. A close second is Louisa May Alcott, as I just love Little Women and the 1994 film starring Winona Ryder. But Austen’s Sense and Sensibility (1995) just amazes me every time. That along with Pride and Prejudice (2005) and Emma (1996).
The rich seem to be highly educated. They also tend to get ahead in life. Therefore, be well-read.
However, these trust fund babies did end up leaving college and higher education after a while to set out for their own fortunes in the real world.
For people like us a college degree is just an accessory. – Chuck
So, this too let’s you know that it is not always about what you know, but who you know.
You never know who you may run into at expensive coffee shops, libraries, restaurants, college, and hotels like the Palace in New York.
So, go build up those relationships.
MONEY AND RELATIONSHIPS
Just to clarify, I do think you deserve to be with someone who makes you happy. – Dan
True words indeed.
I read, like, five self-help blogs on how to turn friends into lovers. Yes, they used that word. – Dan
Come on, Cece’s heart pumps secrets and gin. – Dan
And there was lots of secrets on this show. Relationships and secrets were everywhere.
Sex is meaningful, like art. And you don’t rush art.– Dan
All great things are built or done slowly.
If you watched this show, then you may remember the season 3 episode with Lady Gaga. Here is her take on relationships that is so Blair Waldorf.
“Some women choose to follow men, and some women choose to follow their dreams. If you’re wondering which way to go, remember that your career will never wake up and tell you that it doesn’t love you anymore.” ― Lady Gaga
Marriage
Settling down means death. Less sex, more silence. – Blair on marriage
Blair also had some of the best lines on the show. EVERY. SINGLE. EPISODE.
Case in point, check this out.
And she actually said this too.
That’s the thing. You need to be cold to be queen. Anne Boleyn thought only with her heart, and she got her head chopped off. So her daughter Elizabeth made a vow never to marry a man. She married a country. Forget boys. Keep your eye on the prize, Jenny Humphrey. You can’t make people love you, but you can make them fear you. For what it’s worth, you’re my queen. I choose you. – Blair
As, I am a history buff and studied up on Queen Elizabeth I of England, my mouth fell open when she said this.
Check it out here.
And I am not the only one who feels she should get some praise for her talented banter.
C: It’s a facility for the disturbed or addicted.
B: You must have your own wing.
C: You don’t get enough credit for your wit.
– Chuck and Blair
If you go back with an uncertain heart, there will be drama and disaster for all. – Blair
You better believe it. In life and relationships, to be successful, you have to commit.
LOVE
B:Love me?
C:Always.
– Blair and Chuck
They were the best characters on the show, in my humble opinion. The two of them together was gold. Take a look for yourself.
But ultimately, I have learned that love is what we are all looking for.
MONEY DOESN’T BUY HAPPINESS
Trouble is moving in, and it’s looking to make the Upper East Side it’s bi*ch.– Gossip Girl
You would think that folks in tuxedos and ball gowns are the happiest, but these people seemed so unhappy.
Happiness can’t be measured in things. It comes from having the things that really matter like people who love you for who you are.
Doing the right thing takes courage and strength. At least that’s what I’ve heard. – Blair
Well, I hope you had fun going down memory lane with me and I will bid you adieu in the best possible way to end this post.
Have a heart that never hardens, and a temper that never
tires, and a touch that never hurts. – Charles Dickens
A Christmas Carol
has to be one of the most beloved Christmas tales of all time. It was written
as a novella by Charles Dickens in 1843. Although, the story is over 170 years
old, there are many lessons of wisdom imparted within this story that still has
relevance today.
It never gets old watching Ebenezer Scrooge’s redemption at
the hands of three ghosts and the spirit of his late business partner Jacob
Marley.
A compelling story indeed.
It is set during the Victorian era of the 1800’s in England. Around 1860.
The story gave us the words and phrases Scrooge, Bah Humbug, and Merry Christmas.
In the 1940’s, Disney even created their own character in his image named Scrooge McDuck.
How did Scrooge go from an innocent young pupil to a crotchety
miser?
One word: Life.
We all must go through it, but how we handle life’s ups and
down is what really makes us who we are.
Scrooge hated people. However, those around him still chose
to show him kindness.
I have learned that you cannot answer hate with anger. You
can only show people who you are by how you live your life.
Remembering his story always reminds me to treat others the
way I would want to be treated, and that is with dignity and respect.
WHO IS EBENEZER SCROOGE?
Ebenezer Scrooge is the protagonist of this tale. A miserly business owner who is a skinflint to the core. Though successful in business, he is angry and alone.
His only family is a single nephew from his late and only
sister.
As a young boy, he spent all his time on his studies. His
father was a very strict and harsh man. There was little time for play or fun
for Ebenezer. It hardened his heart. Money was the answer that will give him
meaning to his life.
He decided to close himself off to others so that he
wouldn’t get hurt. But the thing is, when you open up to people, you let the
good in with the bad. This adapted defense mechanism had a profoundly negative
effect on adult Scrooge. He learned to place the pursuit of money above love.
He was later employed by a man named Fezziwig, who was kind and gentle. His employer was in the shipping business that was established in 1766.
Although, Scrooge had examples of charitable people and love
around him, somehow he let greed take over his heart.
LOVE AND HAPPINESS ARE NOT ONE AND THE SAME
We need never be
ashamed of our tears. – Charles Dickens
Money does not buy happiness only temporary satisfaction. It
cannot buy friends, family, faith, loyalty, or love. Money is empty. People is
what fills you up inside and your heart. Don’t let money control you like it
did Scrooge. Money doesn’t control you, you control it.
The absolute saddest and most touching part of the story is
when his betrothed has some very harsh words for Ebenezer.
At a young age, he made a promise to marry a girl of no fortune.
Over time he changes. He becomes cold and harsh. She tells
him that one by one she has watched his nobler aspirations fall away.
His master passion of gain is now his only love. An Idol has displaced and replaced her in his heart. A golden one. He only cares now for gold. Money.
She asked him if he was a free man would he still want to marry a dowerless or penniless girl with nothing but myself to bring to a marriage. He stays silent. She has her answer.
In one of the absolute most heart wrenching and saddest
rebuffs I have ever heard a woman say to a man, it almost brings tears to my
eyes.
She tells Scrooge this; thus, ending their engagement:
Ebenezer, I release you;
You are a free man;
I let you go with a full heart;
May you be happier in the life you have chosen.
Her rejection of him was the final straw as he was never the
same. He calls himself a fool for not going after her. I think it was his pride
that let love slip away.
It seems that old fools used to be young fools.
This film version of he speech in 1984, in my opinion, is the best version I have heard. It makes me stop in my tracks every time to hear her say it just sends a sharp chill down my spine its so cold and sad.
A Christmas Carol (1984)
This is my favorite version of the many film adaptions. I remember seeing it on reruns growing up during the holidays.
Scrooge (1970) Starring Albert Finney
The 1951 version also has fine acting and strong dialogue including its delivery. The scene where the engagement ends is particularly well-spoken by the films star.
He says, “the world can be so brutally cruel to the poor. All the while professing to condemn the pursuit of wealth in the same breath.”
He asked his soon to be ex-fiance, “is it a terrible thing for a man to struggle to be something better than he is?”
She feels that is is if a man weighs everything only by gain.
A Christmas Carol (1951)
A CHANCE TO GLIMPSE THE PAST, PRESENT, AND FUTURE
A loving heart is the
truest wisdom. – Charles Dickens
In the story he is visited by the spirits of Christmases
Past, Present and Future.
He gets to relive the mistakes of the past and present and
see what will come to pass in the future, if he doesn’t change his ways.
As hindsight is always 20/20, who wouldn’t like a chance to change right what once went wrong.
However, Scrooge was a tightwad. Ridiculously cheap and stingy. He ate a bowl of gruel for Christmas dinner in a room with one lit candle. Pathetic.
He didn’t even spend for his own comfort. So, he was miserable and made everyone around him the same. People like him only see the cost of visiting the eye doctor, not the benefits that could come with 20/20 vision.
From his story we learn this, you may not be able to change
the past, but the future is not written yet. You can write the last few pages,
if you have the courage to change. It is NEVER too late to change for the
better.
THEY SAY CHARITY STARTS AT HOME
No one is useless in
this world who lightens the burdens of another. – Charles Dickens
Your actions do impact others. For every cause there is an
effect. Every action you take affects not only you, but the people around you
and someone else in the long run. There is a reaction for every action.
When asked to give to charity, he asks, “Are there no
prisons?” and “Are there no workhouses?” Then goes on to state that it would be
better to decrease the “surplus population” than to help the needy.
Oh yea. He’s a real charmer.
Scrooge had a loyal and faithful employee named Cratchit. It
was a shame he treated him so badly. He wouldn’t even allow the man to put more
coal on the fire to keep warm while at work.
It was too bad he could not show the same kindness upon Bob Cratchit
that his former employer did upon him. It would have been a great way to pay it
forward. And to honor those that came before him.
They say when you want to be charitable, you do not have to
look far. You can start at home. Why not start with your friends?
LEARN FROM THE MISTAKES OF THE PAST AND OTHERS
A sad sight to see was his old deceased business partner. Jacob Marley, who is in purgatory for his sins. As punishment, forced to walk the earth in chains while seeing those he could have helped but didn’t and now being unable to do so. He tells Scrooge to change before it is too late.
Jacob says, “The common welfare should have been my business.”
Helping people should have been more important than money.
I cannot tell you how many times I have watched others that
are older than myself and said I do not want to make the same mistakes. I made
different plans for my life and charted a different path.
When I get a chance to repay a kindness, I do it. Unlike
Scrooge, it is rare in this life that you get a second chance. I try to do a
good job the first time. Tell people the truth. Help them. Reach back and pull
someone else up. They say you never get a second chance to make a first
impression. A true statement indeed.
I read history to see what has been done in the past to
avoid making those same mistakes in the future.
No regrets.
Most people’s number one regret on their deathbed is that
they focused too much on work and money and not enough on their relationships.
Please don’t be one of those people.
The best and biggest change in Scrooge after his ghostly
visits is his generosity. The spirit of Christmas Yet to Come foretold of a bad
future. He saw a life of sadness and loneliness and that his deeds directed his
future of misery. He says he will remember what the spirits tell him and says,
“I will not shut out the lessons that they teach!” Scrooge heeded the spirits
words and mended his ways.
HAVE A FINANCIAL PLAN
Scrooge was the extreme version of frugality. He saved more than necessary and gave little. Scrooge hoarded every penny. His plan was to have as much money as possible, but that is only one piece of the puzzle. He planned for his money, but not his life. Life is complex. It requires money, yes, but also people because life is about building relationships.
Get a good education, then keep your head down and work. But don’t forget about developing your friendships and relationships.
The Cratchits were poor. Living off a miserable 15 shillings
a week. They had a roof, food, and clothes, but no luxuries. They made use of
everything they had. No wasteful spending. And were grateful for what they had:
each other.
I try to only do what I’m passionate about. Will it get me
closer to my goals? If not, I tend to not spend any money and instead find a
way to economize. I spend on what is important, what I value, and what I need.
FORGIVENESS
To err is human, to
forgive divine. – Alexander Pope
At the end of the story, Scrooge pledges a vow by saying, “I
will honor Christmas in my heart, and try to keep it all the year.” A wonderful
promise to make and keep indeed.
Do not ever be afraid or ashamed to ask for forgiveness. It
is a sign of strength and growing maturity.
Dickens once said, “No space of regret can make amends for
one life’s opportunity misused.” I believe that people should do what they are
good at, cultivate their gifts, and help people with that gift. Use your gifts
to solve problems creatively. And not just once a year, but all the days of the
year.
“It doesn’t matter how great your shoes are if you don’t
accomplish anything in them.” ― Martina Boone, Compulsion
I thought women loved shoes, but I’m beginning to think men
love them more.
Nobody does it to the same grandiose scale as the NBA
players of today’s time.
If you have ever watched the series Uninterrupted or MTV’s Nice
Kicks, heard commentary on Kneading Dough or read the Complex magazine or
Coveteur online, then you know the NBA are paying salaries large enough to fund
startups with paychecks that are bigger than some countries GDP.
What do some of these players do with all this money?
Invest it in shoes, of course.
WHAT IS SHOE GAME?
Shoe game is all the shoes you own, your shoe wardrobe, used
when comparing the type and amount of shoes you have against another person.
I know it sounds crazy, but many top sports superstars have
shoe closets that could rival any boutique or downtown footlocker.
The real shock isn’t the amount of shoes, but the sheer
price tag to owning all these shoes in the first place.
Each year, analysts predict that the sneaker bubble will
soon burst. However, the shoe business is a billion-dollar industry that just
keeps on growing.
WHAT IT TAKES TO STEP UP YOUR SHOE GAME?
It seems the first step is to simply own a whole bunch of
pairs of shoes.
Generally, in the hundreds or thousands.
Usually one corner of the master bedroom closet is never
enough.
These sneakers need some room to breathe.
Therefore, many are opting to get custom made closets. People
are devoting as much as 800-square-feet or more dedicated to housing 3,500
pairs of shoes. That is larger than some people’s apartments! In some cases, people have gone on to give
their shoes storage units, commercial buildings or whole wings of an entire
house!
This isn’t cheap. A custom closet could go from an average
closet costing up to $1,200 to $5,000. However, a custom closet fit for a
sneaker connoisseur can cost upwards of $15,000 to $25,000 or more.
For that price, many closets come with climate control,
lighting, and tons of racks for you to house massive amounts of sneakers.
They even have apps you can get to showcase Sneakology for
any Sneakerhead that wants to do it right.
HOW MUCH DOES IT COST TO SNEAKER IT UP?
Well, a few people out there have thrown out some numbers.
Considering that some have anywhere from 500, 3,000, or even
6,000+ pairs of shoes, you have to know that is a lot of dough being spent on
shoes that you can only where one pair at a time on your one set of feet.
Rare sneakers can fetch anywhere from $500 on up to $5,000. One
pair of Jordan’s is going for $25,000!
If the average pair of sneakers cost $80 a pair, we can
start to do some of our own math.
A few numbers I came across include:
500 pairs at $80 each equates to $40,000.
1,000 pairs at $80 each equates to $80,000.
3,000 pairs at $80 each equates to $240,000.
6,000 pairs at $80 each equates to $480,000.
That last one means some poor soul spent a half a million
dollars on shoes! Most of which they are unlikely to ever wear more than once.
I read one guy had 3,500 pairs averaging $214 each for a
total value of $750,000.
One post I read on Coveteur stated one guy had 3,600 pairs
at an average of $280 each which equates to $1,000,000! You could buy an
apartment building for that! I say get that rent money and be a landlord
instead of a shoe lord.
Shoes won’t pay you every month to stay on your property,
but tenants sure will.
A tenant could help you pay off your mortgage in half the
time. Say, 15 years on a 30 year mortgage.
I read that most people keep their favorite 10 pairs of
shoes in regular rotation.
That would mean all these people could have saved themselves
anywhere between $39,000 to $479,000. Just something to think about right
there.
MONEY SPENT ON JUST YOUR FEET
When I think of all that money spent at shoe stores across
the nation, it just makes me shake my head.
I know you can spend your money on anything you choose, but when
is it enough?
Just a peek inside some of these closets let you know that enough money is being housed in there that these sneakers may need to be in some kind of vault.
DJ Khaled via Instagram NBA player Joe Johnson’s closet via Sports Illustrated Custom closet showcased on nextluxury Modern Mens Closet Design With Neon Blue Light Shoe Wall Shelf
For that kind of money, you need these babies in a fire proof room or safe.
If you’re getting heart palpitations just from reading these
numbers, then I understand. That’s a lot of money that has to be protected and
put under lock and key. Security can be another added expense on top on housing
and maintaining these shoes.
WHAT ELSE CAN WE DO WITH ALL THIS MONEY?
You could actually invest in startups by becoming an angel
investor.
According to Brian Cohen, an experienced angel investor and
the chairman of the New York Angels, a consortium that focus on start-ups in
the New York City area, most startups fail.
However, Fred Wilson of VC firm Union Square Ventures says that one-third of early stage investments are hits, meaning they return five times the investment or more. Guess what happens to the other two-thirds? Most go bust.
Therefore, you must research any investment before you hand
over even $1 of your money.
You could sell them.
A Guinness World Record holder at one time had 2,500 pairs
of sneakers called the Shoezeum.
When asked what brands he wore he replied, “Nike. It’s
sneakers or barefoot, and sneakers are always Nike.”
He also has some frugal tendencies. He stated, “I bought
1,800 pairs of Converse Chuck Taylors for $1 each. I took them all to a swap
meet and sold them for $5 a pair.”
Not bad.
However, regardless of what you do, put your money into
something that it can earn interest and grow.
Make your money work even harder for you than you had to for
it.
There are only so many hours you can work in 24 hours of a
day. Your money can work 365/24/7 in the stock market. So, let it.
Porsche. There is no substitute. – Tom Cruise, Risky Business
When I was growing up, I don’t remember caring about labels.
It wasn’t about getting or giving expensive gifts. It was about being safe and
warm.
Maybe, that is why to this day I still keep things until
they fall apart because of the memories attached to them. Not to mention it’s
cheaper.
Today, I have noticed a shift in kids. They are so focused
on what’s on the outside that I feel that may begin to forget that it’s what’s
on the inside that counts.
I know it’s cliché, but I do not want the next generation
growing up thinking that they are less than because they don’t have on the
expensive pair of shoes or have the hot new cell phone.
In my opinion, the best gift you can give your kids is to
not be a financial burden to them.
That means saying no to pricey things today, so that you can
have the money necessary to live and enjoy life tomorrow.
MONEY DOES NOT FIX ALL THINGS
Prada and Gucci and Dior, Oh My!
That sounds like something Carrie Bradshaw would say on Sex and the City.
Following the diamond bricked road can be dangerous.
However, I hear more young people taking about incredibly
expensive name brands and labels than in any other point in my life.
I, myself, am a little more like Rory from Gilmore Girls.
Things are not that important to me. I am perfectly fine
with a good book. My parents did not spoil us.
In fact, we were encouraged to work and be thrifty. Our
parents just were not buying it. It wasn’t really about the money; it was just
not needed so our parents said no.
My father would always say that you have to learn to accept
no just like you accept yes.
From him, I learned not to be spoiled or to spoil children.
Spoiled kids turn into rotten adults.
When you never hear the word no, you can get very upset.
Teaching young people today to be thankful and grateful for
what they have is something that will be good for them to know and use
throughout the rest of their lives.
Spending money does not always equate to happiness. It can
make things easier, but it does not solve every problem. And in some ways,
money can cause more problems.
I had a friend recently tell me she knew someone who had a
kid that asked for Gucci boots for Christmas.
How do they even know about that?
And they want the real stuff.
Got some diamonds round my neck no fugazi – Future lyrics
off the Streetz Calling album
Fugazi is just another word for fake.
I looked up the price of Gucci boots. The lowest price I
found was $980. I have gone on vacations for less. After tax, you are paying
$1,000 for one pair of boots! Absurd.
The only teenager that deserves a $1,000 pair of Gucci boots
is on stage with her two friends Kelly and Michelle.
That money could be used for books for college or starting a
fund for tuition.
You have to use your dollars wisely today or you may not
have them when you need them tomorrow.
DIAMONDS OR STOCKS
You could buy designer purses or expensive vacations. But
those things are fleeting.
Especially, if you come back home to a stack of unopened and
unpaid bills.
You are right back in the same situation before you left or
bought that designer handbag. What sense does that make?
Who cares if you own a Tiffany bracelet if your rent check
is late or worse yet, bounces!
Diamonds around your neck or wrist won’t keep you warm at
night.
Things will not feed you, make you happy, or pay your rent.
However, having a passive income stream can.
Money that is working on your behalf is like the gift that
keeps on giving.
A stock can be like a goose that lays a golden egg.
If you own a mutual fund comprised of hundreds of stocks,
then you can receive dividends and interest on the money you invested.
With a return rate of 7 percent over 30 years, the following
can happen to your invested money:
$1,000 can turn into $7,5000
$10,000 can turn into $75,000
$100,000 can turn into $750,000
And that is without adding another dime to your initial investment.
Think of how your money could grow if you added money
annually.
If we add an additional $3,000 (that’s $250 a month) every
year, we get the following:
$1,000 can turn into $300,000
$10,000 can turn into $400,000
$100,000 can turn into $1,000,000
You read that right. Start with an initial investment of
$1,000. That pair of Gucci boots.
Putting away an additional $250 per month for 30 years can
net you $1,000,000!
FAT STACKS ARE FAR BETTER THAN THINGS
Basically, if you could forgo pricey labels, you could save
and invest your way to a fortune.
For me, that is far more exciting than having some diamonds
on my wrist.
While a diamond bracelet is nice to look at and pretty to
hold, a stock is something that never gets old.
I tell people all the time to get the money first, then you
can buy whatever you want.
Money in the bank or sitting in a brokerage account is far
more valuable that getting the latest hot gadget.
Once the novelty wears off, all you are left with is another
trinket or item that sits in your house and collects dust.
I know there is no substitute for quality.
What I ask you to really consider is opportunity cost? If
this item will bring you long lasting happiness and prosperity?
If not, then you should focus on doing the things that will.
How did a small company that sold shoes out the trunk of a car get this far?
One word: Endurance.
The man behind it all fought through endless money woes,
legal problems, lawsuits, and inventory issues for 20 years, but came out ahead
in the end.
He is now estimated to be worth over $10 billion dollars.
His name is Phil Knight and this is his story.
A RUNNER WITH NO DIRECTION
“If you’re following your calling, the fatigue will be
easier to bear, the disappointments will be fuel, the highs will be like
nothing you’ve ever felt.” ― Phil Knight
Phil Knight was born in Portland, Oregon on February 24,
1938.
In his youth, he liked two things: sports and running.
At the University of Oregon (OU) he earned a journalism
degree in 1959.
After Phil Knight graduated from University of Oregon, he then
earned an MBA from Stanford Graduate School of Business. He graduated from the
school with a master’s degree in business administration in 1962. At the age of
24, he has no idea what to do.
He looks over his final paper he wrote on shoes.
In his small business class, Knight produced a paper,
“Can Japanese Sports Shoes Do to German Sports Shoes What Japanese Cameras
Did to German Cameras?,” which would foretell his eventual foray into
selling running shoes.
WHAT’S IN A NAME
Ford had just paid a
top-flight consulting firm $2m to come up with a name of its new Maverick, I
announced to everyone. “We haven’t got $2m — but we got 50 smart people, and we
can’t do any worse than… Maverick.” – Phil Knight
The company was founded on January 25, 1964, as Blue Ribbon
Sports (BRS), by University of Oregon track runner Phil Knight and his coach Bill
Bowerman, with a partnership by handshake and officially became Nike, Inc. on
May 30, 1971.
The name from Nike, is named after the Greek goddess of
victory.
When they needed to choose a name for Nike, the “Buttfaces”
(an affectionate term for the inner circle) were trying to come up with
something.
That night as Nike legend has it, Johnson, from a dead
sleep, sat upright: “Nike, the winged goddess of victory! That’s IT!”
Jeff Johnson, employee number one of Nike, and fellow
Stanford runner whom Phil hired as he hasn’t met anyone with his passion for
running, suggested calling the firm “Nike,” named after the Greek
winged goddess of victory.
It’s pronounced “ny’-kee.”
The name is Nike and their rival was Adidas.
It met with a lukewarm Buttface reception. In the eleventh
hour, Knight begrudgingly went with it.
“‘What’d you decide?’ Woodell asked me at the end of
the day. ‘Nike,’ I mumbled. ‘Hm,’ he said. ‘Yeah, I know,’ I said. ‘Maybe it’ll
grow on us,’ he said.
FIND A MENTOR
FPhil had a great mentor, Bowerman, a great American running
coach, who was constantly experimenting with shoes.
Bowerman would make then on his waffle iron.
Bowerman stressed that an extra ounce on a shoe added 55
pounds of lifting over one mile. As a mediocre runner, Phil was Bowerman’s
favorite guinea pig (he wouldn’t dare jeopardize the top runners with
experimental shoes).
He trained Olympic athletes so he knew what they needed to
wear on their feet to compete. He trained one of the most prolific Olympic
runners of that time: Steve Prefontaine.
Somebody may beat me,
but they are going to have to bleed to do it. – Steve Prefontaine legendary runner
of the 1972 Olympics
Bowerman was the most famous track coach in America,
training local champions. It was said future Olympian Steve Prefontaine known
as “Pre” did not want to run for anyone, but him.
He was also one of the top paid Nike endorsers before his death
in 1975.
In my personal opinion, I do not think I have ever seen any
runner run like Prefontaine with so much passion. I hold my breath every time I
watch him run. It’s like time is standing still. You don’t want to blink
because you know without a shadow of a doubt that you are witnessing greatness
and what the human spirit could do without limits.
The real Steve Prefontaine
THE BUSINESS OF RUNNING
“Don’t tell people how
to do things, tell them what to do and let them surprise you with their
results.” ― Phil Knight (original quote by George S Patton)
Back in his day, running wasn’t a “thing.” People were
ridiculed for running. There were no real running shoes. So, he set out to
change that.
After graduating, he decides he must travel to figure out a
plan how to see what the Japanese do with the making of shoes. Alas, he has no
money. His only option is to ask his no-nonsense father. However, he feels that
his father will not fund his wanderlust. But in a surprise, his father agrees
and gives him $1,000 to go to Japan.
“How can I leave my mark on the world, I thought, unless I
get out there first and see it?” ― Phil Knight, Shoe Dog
Phil goes to Kobe, Japan, in November 1962.
His father has two friends in Tokyo, and they dispense
business advice – the Japanese are soft negotiators, not fans of the aggressive
American style. Armed with this advice, he sets out.
He discovers the Tiger-brand running shoes, manufactured in
Kobe by the Onitsuka Co. Phil was impressed by the quality and low cost of the
shoes. Knight calls Mr. Onitsuka, who agreed to meet with him. By the end of that
meeting, Knight had secured Tiger distribution rights for the western United
States. Off the top of his head and thinking on his toes, he thinks of the blue
ribbons on his walls in his room he won from running when asked what the name
of his company as he says, “Blue Ribbon Sports.”
SIDE HUSTLE OF SELLING SHOES
SIn the beginning, there was no money.
Phil sent shoes to his old coach to see if they would sell.
Bowerman, who was obsessed with runner performance and making shoes lighter,
not only liked the shoes, but asked to work on product shoe designs and from
there a partnership was born. This was 1964.
His father’s friend advised him to get a CPA. With an MBA
and CPA, he would likely never be out of work. So, he gets his CPA and a job at
a small firm. It had 4 employees. He worked 70-hour weeks.
Phil still worked as an accountant during the day while
trying to get his business of the ground. Finally, in 1969, he quit working for the
likes of firms as Price Waterhouse to work on his business full-time.
So why was selling
shoes so different? Because, I realised, it wasn’t selling. I believed in
running. I believed that if people got out and ran a few miles every day, the
world would be a better place, and I believed these shoes were better to run
in. People sensing my belief, wanted some of that belief for themselves.
Belief, I decided. Belief is irresistible. – Phil Knight
THE RICHES ARE IN NICHES AND PITCHES
TRunning is not a hobby or sport during his time in the 1960’s.
Mostly only student athletes were buying their shoes, as popular
as they were, they appeal to just a small niche
of the population.
He sold shoes at track meets out of the back of his car in
the Pacific Northwest.
The pitch: Japanese shoes are extremely high-quality,
low-cost shoes.
A 300 order of shoes
cost $1k. He got his half $500 from his father and the other was put up by
Bowerman.
They SOLD OUT!
The shoes were so popular that people were showing up at his
house to by them.
PHIL ON MONEY
P“But that’s the nature of money. Whether you have it or not, whether you want it or not, whether you like it or not, it will try to define your days. Our task as human beings is not to let it.” ― Phil Knight, Shoe Dog
Money problems plagued the company.
Distribution rights became an issue so he had to fly to
Japan (ticket paid for by credit card as he has no money) to plead his case to
keep selling and got the green light. He found this out from a letter his
employee named Johnson sent him. The lesson here is to listen to good counsel
and advice. This very well may have saved the company from ever existing today.
However, the company did want a bigger player in the shoe
game to represent them, but Phil said they had offices in both coasts to shore
up the deal.
(He was lying – they didn’t’ have an East Coast office).
No venture capitalist or angel investors in 1965. Phil had
to use banks. They wanted big profits and slow growth. Phil was having none of
it.
BOOTSTRAPPING IT LITERALLY
BThe company was always strapped for cash. They had to stay
lean to survive. And worked mainly in storage rooms and Phil’s apartment.
Meeting the demands of the banks and customers became
equally tougher.
EVERY. SINGLE. YEAR.
Trying to get imports on time, make cash payments to
creditors, and get orders to customers was a logistical nightmare.
Onitsuka is painfully unresponsive as shoe shipments arrived
late, which meant less time to sell, and each loan repayment period to
creditors tougher.
EVERYDAY I’M HUSTLING
EPhil did everything he could do to keep the lights on, make
payroll, and keep the company going. They were growing every year and sales
were doubling, but they still had problems financially.
First year, they made $8,000 in sales in 1964. By 1967, says
had grown to $84,000. They double again in 1968 to $160,000, but Phil still can’t
afford to draw a salary.
So, he did what he and adult has to do when they need money:
get a job.
That’s right, he went back to working in accounting.
He doesn’t love the work, but it pays the bills.
At this point in Phil’s story, I had to give him the slow
clap of praise for doing what needed to be done.
However, sales double again to $300,000 in 1969, Phil is able
to draw a salary of $18,000. He quits his job teaching and is at BRS full-time.
In 1970, doubling again, sales reach $600,000. By 1971, they crossed the
million dollar sales mark at $1.3 million.
Finally, it all came to a head when their Japanese exporter
decided to buy them or give their business to someone else.
AN ACE UP HIS SLEEVE OR SOLE?
A“Have faith in
yourself, but also have faith in faith. Not faith as others define it. Faith as
you define it. Faith as faith defines itself in your heart.” ― Phil Knight
The biggest asset Blue Ribbon has is Bill Bowerman.
He learns that Japanese and American bodies are simply
different, and thus the shoes need to be different, like more arch support. To
have a great chance in the US, he believes Onitsuka needs to customize their
shoes for Americans.
He draws up countless designs and sends them to Japan, only
to receive no response. Occasionally they relent and make a few prototypes, and
indeed they’re far better. Undeterred by Onitsuka’s hesitance, Bowerman even
experiments with producing homemade rubber to make new soles.
You might be able to see where this is going.
OUR SOLES AT KNIGHT LEARN YOYO: YOUR ON YOUR OWN
OThey secretly start manufacturing their own shoes. Having
dreamed about Nike as the name for the company, it was then born and the
sidestepped acquisition.
Their reputation sold their shoes and saved their company.
They also learned how powerful celebrity endorsement is as
well.
When the company was in dire financial straits one of his
top employees (#4 full-time) Woddell and his family gave him their life savings
of $8,000 ($50,000 in 2017 inflation) to keep Nike afloat. A friend indeed.
PHIL ON MANAGEMENT
PHis employee in CA, Johnson, he sends Phil mountains of
letters, detailing his every development, every sale and notable customer.
He sends advertising ideas (Phil doesn’t believe in
advertising), shoe designs (Phil already has enough to deal with Bowerman), and
his insistence on opening a retail shop in Los Angeles.
Phil feels smothered and rarely replies to Johnson’s
letters. From studying war heroes and generals, he holds a virtue: “Don’t tell
people how to do things, tell them what to do and let them surprise you with
their results.”
And Johnson delivers results. His customers love him, depending on Johnson to solve their problems in both running and life. Even when he gets in a car crash and breaks his skull, he’s continuing to sell shoes. Phil even issues him a challenge – sell 3,250 pairs of shoes in a few months, and Johnson could open his retail space in LA. And sell he does – now Blue Ribbon has an official runner mecca in Los Angeles.
MARKS OF VICTORY
MOn his travels, he stopped in Greece. While visiting the temple of Athena, he notices a carving of Athena – bending down to adjust her shoe. She is known to be the goddess of wisdom, battle strategy, and victory or “nike.”
And what’s THIS?
That’s a swoosh.
The hell’s a swoosh?
The answer flew out of me: It’s the sound of someone going past you.
They liked that. Oh, they liked it a whole lot.
The trademarks of “Just Do It” and the Swoosh logo became synonymous with Nike. The logo is also one of the most powerful in the world.
The logo was commissioned for a mere $35 USD from graphic
design student at Portland State University by the name of Carolyn Davidson in
1971. She charged them only $35 for her work.
According to Nike’s website, Knight said at the time:
“I don’t love it, but it will grow on me.”
PHIL ON PRAISE AND CHARITY
PPhil never gave praise or money. But…
He was so pleased with the logo that in 1983 he gifted
Carolyn with an undisclosed amount of Nike stock for her contribution to the
brand. She had worked for the company from 1971 until 1980.
That year, 1980, is the year Nike went public with an IPO.
Phil told Oprah on her show in April 2011, that he gave
Davidson “A few hundred shares” when the company went public.
For years, the value of the stock was unknown.
Well, guess what? You’re about to find out right here, right
now.
What is the cost of helping someone when commissioned with a
task and not thinking it is beneath you?
Counterkicks got a
hold of a recent Nike shareholders meeting transcipt in which Knight reveals
exactly how much stock he gave Davidson and the value of that stock today…
“…we
hired a graphic art student at Portland State University, and told her to come
up with something that connoted speed, and we gave her $75.00 for what she came
up with. When we went public in 1980, we called her back up and gave her 500
shares of stock, which she has never sold, and is worth close to $1 million
this day.”
His top employee’s or the foot soldiers as I like to call
them, Bowerman is worth $9 million; Woodell, Johnson, Hayes and Strasser each
about $6 million; Phil $178 million.
In 2012, it was reported that Knight himself owned
67,097,005 shares of Class A Common Stock and 7,740 shares of Class B Common
Stock in the Nike corporation.
Nike has revenues of $20 billion annually.
In 2018, he is now estimated to be worth $29 billion
dollars. Him and his wife donate $100 million a year.
PHIL ON HELPING OTHERS
P“When goods don’t pass international borders, soldiers will.” Though I’d been known to call business war without bullets, it’s actually a wonderful bulwark against war. Trade is the path of coexistence, cooperation. Peace feeds on prosperity. – Phil Knight
When on travels in his younger years he went all over the
world.
He noticed incredible poverty in places like Vietnam.
When his goal of taking over Adidas as the number one shoe
company in the world, by 1986, total sales hit $1 billion, and Nike surpassed
Adidas to become the No. 1 shoe manufacturer worldwide.
He also was able to fulfill some other dream. He opened
factories in Vietnam so that war would likely stop there due to commerce and
work.
Luck plays a big role.
Yes, I would like to publicly acknowledge the power of luck. Athletes get
lucky, poets get lucky, businesses get lucky. Hard work is critical, a good
team is essential, brains and determination are invaluable, but luck may decide
the outcome. Some people might not call it luck. They might call it Tao, or
Logos, or Jnana, or Dharma. Or Spirit. Or God. – Phil Knight
Knight’s memoir, Shoe
Dog, was released on April 26, 2016 by Simon & Schuster, was rated
fifth on The New York Times Best Seller list for business books in July 2018, and
details the building of the Nike brand.
Knight has donated hundreds of millions of dollars to each
of his Alma Maters including $105 million to Stanford Graduate School of
Business in 2006.
As of 2016, according to Portland Business Journal,
“Knight is the most generous philanthropist in Oregon history. His
lifetime gifts now approach $2 billion.”
It is safe to say that Phil Knight and his Nike business are a running success.
