Budgeting, Celebrities and Money, Credit Cards, Retirement, Saving, Self-Made Millionaires, Wealth

Money Lessons I learned from Jay Leno

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Photo: Forbes.com

Everyday and in every way, invest in yourself. Invest in your health and education to help build your wealth. With money comes power and protection. The wealthy are protected. Build up your knowledge and money coffers. A war money war chest is your way to ditch the 9 to 5 and get out of the rat race.

Jay Leno gives advice on how to do just that.

MONEY LESSONS FROM JAY

Jay on starting out

“I wasn’t a millionaire when I started.”

“I would alternate between the two, so it was cars and hamburgers, which are actually still two of my passions.”

He started his career working for minimum wage at McDonald’s in Massachusetts. Jay also worked at a Ford dealership. He discovered the key or secret sauce (pun intended) to getting rich: Developing multiple streams of income.

Jay on working more than one job

“I always had two incomes.”

“I’d bank one, and I’d spend one.”

“I had two jobs because I realized that was the quickest way to become a millionaire.”

“When I got ‘The Tonight Show,’ I always made sure I did 150 [comedy show] gigs a year so I never had to touch the principal.”

He has worked two jobs simultaneously since he was 16.

And there you have it. Basically, if you want riches, then you have to put in the work. If you work 40 hours a week, then find a way to work 50 or 60. Gotta make that paper.

Jay on saving money

“When I was younger, I would always save the money I made working at the car dealership, and I would spend the money I made as a comedian.”

“When I started to get a bit famous, the money I was making as a comedian was way more than the money I was making at the car dealership, so I would bank that and spend the car dealership money.”

“Then I got to the point where the comedy money was, like, five times the other money, so I decided to flip it around and save the comedy money.”

“I would always spend the lesser amount of what the two were.”

Therefore, if you are working 2 jobs or more, then you bank the bigger paycheck and spend the smaller checks. Bank the bigger of the two checks and live off the other.

Forget the pundits that tell you not to save. There is value in saving. You need an emergency to help in case of job loss or illness. Life is full of hiccups. Once you have saved reasonable amount, then you start investing your surplus income.

The key is not to only save, but to also invest. Savings help you live your life to the fullest. In addition, savings can help you fund your dreams. Not having to go to the bank for a loan is an incredible feeling.

Jay on living on one salary

“I pretended as if I didn’t even have the ‘Tonight Show’ job.”

“You know, when you start making money, you get lazy. I wanted to make sure I always had that hunger, so I never looked.”

“It would go directly into a bank.”

Simply put, bank it and forget it.

Jay on patience

It took 22 years to accumulate, “a nice little nest egg.”

You heard it here folks. Building wealth takes time. In many cases, it takes a couple decades. There are no get rich quick schemes. There’s is no free lunch. There are no shortcuts. You do the work, get paid, invest the surplus incomes, and wait to earn interest.

Jay on retiring

“If you do something and it works, then keep doing it.”

You do not have to retire early unless you want to. If you are passionate about something, and can make a living doing it, then do it.

Jay on Buy-And-Hold

“The McLaren F1, I paid $800,000 for it in 1998. The last offer I got was $12 million. … The nice thing is, if you buy what you like, and it doesn’t go up in value, you still like it.”

Warren Buffet likes to buy-and-hold forever. Therefore, don’t even part with your cash, if you don’t want to keep an item to infinity and beyond. Just don’t even open your wallet.

Jay on avoiding credit cards

“I barely use credit cards.”

Words to live by. Either use credit sparingly for a purpose and get it paid off ASAP or don’t even bother using it at all.

Jay on house buying

“I didn’t buy my house until I had cash. When you own something and you don’t have to write checks every month, you’re just better off.”

I learned from James Brown, Dick Clark, Jay-Z, Oprah, JK Rowling and Michael Jackson to own what you do. You can control your earning potential and life, if you own. You can continue to make money off the things you own and control for many years to come.

Regardless, of whether or not you’re still working. You can still earn royalties from work you have done in the past. That is how the rich get richer. Earnings on top of earnings.

Jay on debt

“I don’t carry any debt. I don’t write checks at the end of the month for anything.”

“I didn’t buy anything I couldn’t afford to pay for in cash.”

“Here is the money, give me the thing, transaction over.'”

Jay hates installments, as do I. His cash only solution is what the world needs to adhere by.

I have literally saved for two years or more to purchase items or services I wanted or needed.

When I wanted Lasik, I used my flexible spending and waited about 3 years before I did the procedure. It cost between $4,000 to $5,000. And was worth every penny. Paid cash, not credit.

When I needed dental work done, I saved for 2 years. Paid cash, no installments.

Don’t buy on credit, build a fortune.

Jay on Retooling

“Since high school, I’ve always had two jobs. I worked at a McDonald’s and I worked at a car dealership. … When I was doing the Tonight Show, I’d be on the road at least two to three days a week because I thought, ‘We’ll see how long this lasts.’ ”

Do not ever get too comfortable. Things can change. Always have more than one way to earn a living.

Jay on owning

“I own everything. I own my buildings. I own my cars. That way, if it ends tomorrow, I know what I’ve got.”

His conservative money philosophy gives him peace of mind. When you are out of debt you just feel better. Take control of your finances and this too will help give you some peace of mind.

Jay on old-fashioned values

“I’m not a big splurge guy, partly because I had Depression-era parents: “They just frightened me to death, saying, ‘You gotta save every penny!'”

“It’s a little old fashioned, I suppose, but it seems to work pretty well for me.”

No impulse buying. This is the debt trap. Plan your expenses. Budget just means you plan where your money goes and it gives you permission to spend. Use it.

Jay on Taxes

“I just pay. Fine, I’ll get another job, I’ll work harder. That’s probably not very good tax advice. I don’t have money in the Cayman Islands or any of that nonsense.”

Always pay your taxes. Period!

Jay on being frugal

“McDonald’s sent me these Happy Meal coupons, so one day I’m in the McLaren and I’m going to McDonald’s. I say, ‘Give me two Happy Meals.’ And I give them the [coupons].”

“Now I look like the cheapest guy in the world driving this multimillion-dollar McLaren and I’m trying to get a free hamburger.”

“I’ve never touched a dime of my ‘Tonight Show’ money. Ever.”

He hates spending on clothes and has not touched one dime of his Tonight Show money. At one point, he was earning around $30M a year! It pays to be frugal.

So, you just avoid the mall, invest the money you would spend on clothes and start earning your way to a fortune with compound interest. Delay your gratification. Discipline is the key to wealth. Once you have it, no one can take it from you. Then you can save money to invest. Easy as pie.

Jay on Shifting Gears

“So many friends of mine, all they ever did was the TV show. When the TV show ends, suddenly their life ends, because that was their whole life. I was never that guy.”

It’s great to have hobbies and interests outside of work. See if you can turn a hobby or side gig, into an income. At the very least, have something to do after one thing ends. Remember, no idle hands.

Jay on shopping

“I’m not a big shopping guy. I’m just not interested in clothes outside of the essentials.”

“To me, it seems like a complete waste of money. I just want to have enough clothes to cover legally what parts I have to cover.”

Hear, hear! I used to like shopping. Until I didn’t. That happened once I learned I was losing a small fortune for that new purse or shoes.  Read my post How Millennial Money inspired me to start saving $13,333.06 a year for more on that topic and see how I quit shopping for good.

Jay on Fixing Things

“When you’re in a business like show business, everything is subjective. Some people think you’re funny, some people think you suck. …When something’s broken and you fix it, no one can deny it’s running.”

Very true. Always be tweaking or working toward expanding and doing better. People notice you the harder you work.

Jay on setting high standards

He, like Coco Chanel, believe in setting high standards for yourself. Chanel said, “keep your head, heels, and standards high.”

Jay learned this attitude while working at McDonald’s. A key pillar of success: You can never go too far to ensure you’re producing a great product.

He would go home every night after work and write jokes. Jay would go through hundreds with his staff and get it down to the top 20. He would record himself and then re-listen for timing. Tedious? Yes, I know. But effective. The hard work paid off.

Jay on idle hands

“I meet with the writers at about midnight or so and work until about 4:00 a.m.”

“I sleep four hours, maybe five.”

The way he saw it was, “if you have time to complain, you don’t have enough work to do.”

I am notorious for going to bed thinking of work and getting up to work. Sometimes I get up in the middle of the night to write down ideas about work. I work so much I barely have time to breathe.

I learned that from Pat Benatar who was a workaholic in the 80’s.  But guess what? She wrote hits songs for like a decade. When there are times I need a break or pick me up while working, I’ll listen to her songs Invincible, Shadows of the Night or Love is a Battlefield.

For those who may not know or remember those songs, check out the links below. Good stuff.

Jay on failure

“You learn a tremendous amount from the mistakes.”

I have learned to fail better. It makes you stronger. It also humbles you and makes you more empathetic to others.

Jay on money to blow

“So many people get to be the age I’m at now and they’ve got nothing because they just blew it all.”

“I put my money in a hammock and say, ‘You relax. I’m going to go work.’ And when I come back, I put some more money in the pile.”

It’s your money. Don’t blow it.

Jay on Life

“Life is not that complicated … if you’re kind and decent, and try to be honest, it’ll probably work out. Yeah, you’ll get screwed once in a while. I certainly have, but that’s okay … don’t dwell on it.”

Pick yourself up, dust your wallet off, and get back into the grind. Don’t rest on your laurels. Put your head down and work. Stay humble and stay hungry. Generate multiple streams of income, diversify your earnings, increase your savings, and build your wealth. Get that net worth pumping in that interest faster than Arnold Schwarzenegger did lifting weights in Pumping Iron and you will start rolling in the dough!

Just FYI: Jay is worth over $300 million dollars. Has no debt. Is a self-made millionaire. And still works at the age of 68.

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

How being an outlier can make you rich

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“Ten thousand hours is the magic number of greatness.” – Malcolm Gladwell

“I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.” – Bruce Lee

No one can arrive from being talented alone, work transforms talent into genius. – Anna Pavlova

If you’re a fan of Enter the Dragon, like me, then you know that talent and practiced skill are the difference between winning and defeat.

Bruce Lee also said Knowledge will give you power, but character respect. 

That reminds me of this saying from The Rock.

I also notice that mavericks tend to get rich.

Those willing to do more than the bare minimum. We are talking captains or titans of industry and business mavericks, that buck the trend, throw caution to the wind, and are all in.

Steve Jobs, Bill Gates, LeBron James, Phil Knight, and Walt Disney, to name a few, embody the characteristics of what it takes to dominate in one’s field.  They are outliers. If you dare to dream and be an outlier yourself, then you are in great company.

WHAT IS AN OUTLIER?

A person or thing that is atypical within a particular group, class, or category. – Merriam Webster Dictionary

Simply put, you are different than the rest. You stand out. An outlier is the proverbial diamond in the rough or needle in the haystack. The 1 out of a million.

We all know how it worked out for Aladdin in the end.

When everyone else goes right, you go left and turn down the street.

You have tunnel vision. All energy is focused on a single task until it is completed or you are an expert. The rejection of noise and naysayers are a must.

A great definition of focus is this: To follow, without halt, one aim: There’s the secret of success. – Anna Pavlova (Prima Ballerina)

WHO ARE OUTLIERS?

The more you like yourself, the less you are like anyone else, which makes you unique. – Walt Disney

We will take the examples above and expand on those individuals that have either been born great, achieved greatness, or had greatness thrust upon them. (To revise Humphrey Bogart’s famous words: Here’s looking at you, William. Shakespeare that is.)

So, who are these mavericks you say? Just keep reading.

Steve Jobs

Photo: Forbes.com

Steve Jobs was the CEO and co-founder of the most valuable brand in the world: Apple. The first ever trillion-dollar company in the entire world.  He pioneered revolutionary technologies. Thanks to his genius and willingness to dare to be different, we now have a computer in our pockets.

He decided to buck the trend and paid no dividends for Apple shareholders (this changed in 2012), as he thought that money could be better spent to expand the company.

Forbes, in 2011, estimated Jobs’ net worth to be around $6 billion to $ 7 billion dollars prior to his passing.

Bill Gates

Photo: Forbes.com

Bill Gates is a business magnate who is the founder of Microsoft. He took the road less traveled by famously dropping out of one of the most elite and prestigious universities in the world: Harvard.

Mr. Gates devoted every minute of his time to computer technology. He would read trade magazines and stay informed on the latest in tech. Becoming an expert in the field and later launching Windows in 1985. It became the top operating system for PC’s.

Forbes lists Gates’ net worth at $96B.

LeBron James

Photo: Forbes.com

LeBron James started playing basketball at a very young age. He loved the game so much that he played and practiced non-stop. By the time LeBron was 14, he had ESPN covering his high school basketball games because he was just that good.

He was drafted in 2003, to play professional basketball with the NBA. It is estimated that he spends $1.5 million dollars a year just on his health care and personal training to keep his body in the best athletic shape possible. He would go on to win the first ever championship for Cleveland. Ever. He recently built a school and is offering college scholarships to those students.

Forbes estimates James’ net worth at $440 million. That’s a lot of M’s just for going hard in the paint. It pays well to be the best.

Phil Knight

Photo: Forbes.com

Phil Knight is a business magnate and the co-founder of Nike. He ran track for the University of Oregon under the infamous track coach Bill Bowerman, with whom he co-founded Nike.  Bowerman is famous for coaching 31 Olympic athletes including the legendary Steve Prefontaine.

After attending Stanford Graduate School of Business, Knight decided to become an entrepreneur. His business plan paper became the catalyst for his company. He traveled to Japan to see about good running shoes, which would go on to become Nike.

Forbes estimates Knight’s net worth at $31B.

Walt Disney

Photo: Forbes.com

Walt Disney was a pioneer in the American animation industry. He always loved to draw. He had a paper route with a grueling and exhausting schedule as a kid, which contributed to his poor grades at school.

None the less, he continued to draw. He had $40 dollars in his pocket when he moved to CA to start his career. After, getting fired from a job in animation at one company, he decided to start his own.

People laughed at him for wanting to draw a talking mouse. An old legend states he was rejected 302 times to get financing to start Disney World. He ended getting the last laugh as Disney is the biggest and most diversified mass media and entertainment conglomerate in the world.

At the time of his death in 1966, he was estimated to have a net worth equal to $1 billion in today’s dollars (adjusting for inflation).

HOW CAN BEING AN OUTLIER MAKE YOU RICH?

Go confidently in the direction of your dreams. Live the life you have imagined. – Henry David Thoreau

People are willing to pay for unique. Something that is one of a kind. The rarer the better.

Do something so good that people can’t wait to see you.

“Make sure it’s mean so them fiends keep on coming back” –  Who Dat (Song by J. Cole)

Keep them wanting for more.

They say the riches are in niches.

Mae West wrote on taboo subjects in the 1920’s. She made a mint in real estate and oil. This is what she thought of all that hoopla she made way back when.

I believe in censorship. I made a fortune out of it. – Mae West

Figure out what you are good at and make it happen.

When you start out you have to take what you can get, but when you blow up, you can name your price.

Remember that song Back Then by Mike Jones. Yeah, it can be something like that.

GO AHEAD AND TAKE THE ROAD LESS TRAVELED

Two roads diverged in a wood, and I — I took the one less traveled by, and that has made all the difference. – Robert Frost

Many people have made a fortune off being different.

Success depends in a very large measure upon individual initiative and exertion, and cannot be achieved except by a dint of hard work.  – Anna Pavlova

Let’s see some numbers for clarity and perspective.

Only the best can become NFL players. Here is what the best can make.

Rookie Salaries in the NFL

Source: FootballNextLevel.com

Highest Paid Players in NFL

Source: Spotrac.com

These are just salaries for one profession. There are many others.

CEOs are making bank. In addition, so can authors, producers, actors, musicians, professors, doctors, and more can as you can garner success in many other fields.

How hard are you willing to work to make success happen?

Dwayne “The Rock” Johnson says success takes no less than everything you’ve got. You don’t need directions on the road to success, just point to the top and go! Here are a few more of his words of wisdom for motivation.

Financial Freedom, Financial Independence, Investing, Wealth

Mega Millions win or bust

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Here’s something to think about: How come you never see a headline like ‘Psychic Wins Lottery’? – Jay Leno

Are you feeling lucky? Well, do ya?

If so, well then playing the lotto might just be for you.

But like Katniss, the odds may not be ever in your favor.

It has about two weeks since the largest jackpot in Mega Millions history was won by a single ticket to the tune of $1.537 billion dollars!

All over the country it was Powerball and Mega Millions fever.

Everywhere I went people were talking about the lotto. Some people even tweeted about what they would do if they won.

I get it. You win the jackpot and your financial freedom. You’re on cloud nine.

However, you have to plan your escape from the rate race whether or not you win the lottery.

If you want to get rich, either by picking winning numbers or otherwise, you better learn quick how to manage a fortune.

Here’s why.

CHANCES OF WINNING

Are pretty slim.

According to Fortune magazine, the odds of winning the lottery are about one in 300 million. Considering that there are over 326 million Americans, that makes your odds quite small.

If you want to close this gap, you will have to increase your scope of numbers to play and play more often.

It’s not enough to do the kids birthdays or your anniversary. Going to have to get creative. You need the locker combination to your high school locker, your kids Xbox password, your great-aunt’s wedding date, and your first love’s old address. You know, something like that.

But all jokes aside, you will have to increase your range of numbers to increase your odds of winning.

In addition, you will have to play more often.

It has been well-documented that people who win the lottery once are likely to win it again.

The problem with this is that you also increase the amount of money you lose while playing the game.

LOTTERY WINNERS GO BROKE

Get rich or die tryin’. – 50 cent  

Did you know a high percentage of lottery winners end up broke? According to the National Endowment for Financial Education, 70 percent of lottery winners go broke.

I have a theory.

If you are unable to manage balancing your check book with $1k, then it is nearly impossible to do it with $1B.

I feel like it is.

But, if you saw  Justin Timberlake in The Social Network, you know he says, “you know what is cool? A billion dollars.”

They say the first million is the hardest. Well, try wrapping your head around a billion!

Even billionaire T. Boone Pickens thinks that it is too!

That’s a whole lot more zeroes you are working with. If you don’t know what PEMDAS stands for (Please Excuse My Dear Aunt Sally), you are in trouble.

You must first learn the rules of money, if you are to win the game. See my posts for more on how to build up your wealth knowledge bank.

Forget casinos, bet on yourself

The six ways to get rich

Money Lessons I learned from Scrooge McDuck

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

STAY GROUNDED

“Using money you haven’t earned to buy things you don’t need to impress people you don’t like” – Robert Quillen

I have seen too many lottery winners go bankrupt. You win all that money just to go back to being broke! No, thanks.

Forget your friends and family telling you to spend. Do not inflate your lifestyle and then upgrade it even more after moving to that gated community in Beverly Hills. You do not need to outspend your neighbors.

3 Rich Habits of Millionaires

You can still drive a Honda. The kids can still get jobs. If you think that it is taking away an opportunity for someone else to work for a needed paycheck, then let junior volunteer.

That was the advice Fran gave Mr. Sheffield in The Nanny.   He wanted to teach his daughter about responsibility and the value of money. So, in S02E21 Maggie became a candy striper at a hospital.  Great advice.

Fun Fact: In the S02E08 of Gilmore Girls,  Rory gets in trouble at school. It just so happens that one of her schoolmates in that episode was none other than Mr. Sheffield’s youngest, Grace, played by actress Madeline Zima. You can see her in the blue sweater walking behind Rory in this clip.

My advice to anyone who comes into large sums of money whether by inheritance, large windfall, bonus, or lottery is to stay humble.

Read my posts for lessons on eating humble pie:

How Dave Grohl turned passion into profits

Money Lessons I learned from Aesop’s The Ants and the Grasshopper

Money and Life Lessons I learned from Mr. T

Life Lessons I learned from The Warriors

The Greatest Assets are people

HOW TO MANAGE ALL THAT MONEY

You have to ask yourself after winning the lottery: How are you planning to manage all that cash?

You need a team to help you manage all that money. A circle of trust, like in Meet the Fockers.

I have a few suggestions.

  • Set up a trust to stay anonymous
  • Get a financial advisor
  • Hire an intermediary to answer requests for money on your behalf
  • Set a daily, monthly, annual spending limit
  • Hire an attorney
  • Take the lump sum
  • Create your own annuity with a spending budget
  • Hire a CPA
  • Learn how to manage money
  • Understand your tax liability

BUY STOCKS INSTEAD OF LOTTERY TICKETS

I would much prefer people spend their money wisely than to bet it on chance.

You could invest your money instead of throwing it down on the roulette table. If you are want to be a part owner of Caesar’s Palace, instead of merely placing bets at one, you can buy REIT’s or mutual funds.

Even better, you can buy index funds that includes hundreds of stocks that track a benchmark such as the S&P 500.

Every dollar you invest can possibly be turned into two or three dollars.

Source: familyfinancefavs.com

Not sure what all this is? No problem. Go down to your local library and ask for books on personal finance. You can also look up any words you are unfamiliar with online.

In addition, you can read blogs, listen to podcasts, join investing clubs, get a job in banking, take a few online finance courses, or ask friends and family for book recommendations.

Many books offer book recommendations in the appendix.

All you have to do is be willing to do some homework.

Trust me, it’s worth it.

When your one-day sitting on a beach in Hawaii, sipping cocktails and able to get up at noon just because.

Your future self will thank you.

 

Financial Independence, Saving, Wealth

Forget casinos, bet on yourself

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“There is a gigantic difference between earning a great deal of money and being rich.” —Marlene Dietrich

You bet there is. I am a firm believer in being rich in assets. Those are the things that will help you build wealth. They attract money to you.

I once read a wealthy gentleman online state he wants to be cash poor and asset rich.

Basically, he is looking to have more assets than a fat paycheck. He knows money can slip through your fingers. Assets do not easily slip away.

The bigger the paycheck means the higher the taxes you pay Uncle Sam. In contrast, assets usually go up in value and earn interest over time. Capital gains tax is lower than income taxes.

So, if you want to bet the farm, then put it all on staying in the black and not the red.

CASINOS ARE NOT WHERE THE WEALTHY ARE

I know you see all the television shows and advertisements telling you to go to Vegas. However, that is just a way to get you there to spend money. Most wealthy folks are not rolling the dice with their finances.

Casinos are designed to separate you from your money. Just like subscriptions. Read my posts Do not cash out your retirement accounts and  America is the land of subscriptions.

I have read enough blogs and books to know that you must hang around like-minded people.

Motivational speaker Jim Rohn said, “You’re the average of the five people spend the most time with.” And so is your net worth.

We are influenced by those we associate with. These relationships over time can have a profound effect on our lives.

Therefore, you must choose wisely when it comes to friends, business partners, and spouses.

The wealthy are about building assets. Therefore, you are not likely to see them at the casino at four o’clock on a Monday afternoon. They are out volunteering, networking, and closing business deals.

HOW DO CASINOS MAKE MONEY

A Canadian study stated that 75% of customers provide only 4% of casino revenues. It’s the habitual gambler that keeps the casino in business.

If you ever saw Mark Wahlberg in The Gambler, then you know who I’m talking about.

Computer gaming and slot machines are all the rage when it comes to gambling.

Most players lose more than they win. I don’t like those odds. Therefore, I do not gamble.

That means people with gambling addictions are the most vulnerable. Or you can become addicted after getting a taste of winning like in the film 21.

Slot machines are, like credit, addictive. Casinos actually can make you poorer. This exacerbates inequality.

CASINOS WILL HELP THE ECONOMY RIGHT?

Not so fast. Let’s take a look at Atlantic City.

Back in 1977, casino advocates made promises that casinos would help give the economy a boost by providing jobs. Don’t get me wrong, they did provide jobs. However, the surrounding local business owners did not get the foot traffic coming into the casinos.

The money that casinos make, stays with them.

Many local businesses had to close up shop. The retail economy collapsed all around Atlantic Avenue in New Jersey. Several casinos have actually shut down since 2014. That means jobs were lost not gained.

HOW TO BET ON YOURSELF

Devote all your time, money, and resources into yourself.

Use your hard earned money to invest in your education, training, and business.

When I was watching David Tutera plan those weddings on television, I learned he wasn’t doing this for, in the illustrious words of Sia, cheap thrills. He did it for a living. And earned good enough money to have a nice home, wardrobe, and chauffeur.

David started party planning and entertaining over 20 years ago. He just invested his time and money into himself. Eventually, he found what he was good at and then he just stuck with it.

There are countless tales of people out there that have found a skill they are good at, practiced and developed it, then went out and started earning a living at it.

Read up on some biographies. See for yourself. I recommend reading anyone you have an interest in or trailblazers such as Gloria Steinem, Arnold Schwarzenegger, Franklin Roosevelt, Charlie Chaplin, Oprah Winfrey, Winston Churchill, or Nelson Mandela.

WHAT CAN YOU DO NOW?

First, I feel people need to assess their situation. For example, when I was growing up I noticed that a lot of kids were not very into studying and really focused on their academics. However, many wealthy people I saw on television always advocated for education.

I figured, why not listen to other successful people?

I started studying and reading more. Especially, thanks to shows like Reading Rainbow hosted by Star Trek’s Next Generation alum LaVar Burton. I would go to the Book Mobile and get tons of books.

Much of my focus was less on having fun and more on learning. Saturday mornings were spent reading on my parent’s couch. Sunday afternoons were spent reading the comics and learning new things and vocabulary words.

I invested lots of time and money into my education and health.

And all of this paid off in spades.

I have four retirement accounts, a home, a car (no monthly payment), and save and invest upwards of 50% of my income.

It took me over a decade to build those things. But it all started with getting an education.

Sure, college helped, but it was sheer grit, discipline and determination that got me where I am today.

THE FUTURE MR. OR MRS. FI

If you want to have a chance at financial independence, I suggest you do the following:

  • Focus on learning more about money and finance
  • Stay away from debt
  • Get a good education (the best you can afford)
  • Pay for cars and appliances in cash
  • Opt for a 15-year mortgage
  • Stay away from vices (narcotics, alcohol, gambling, shopping)
  • Hang around like-minded people
  • Save 20% or more of your income
  • Invest 15% or more of your income

If you can do at least two of the items listed here, you have got a shot at making it into the top 10% of households and becoming financially independent.

Bankruptcy, Retirement, Saving

From Pulitzer Prize winner to Penniless

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‘All happy families are alike; each unhappy family is unhappy in its own way.’ – Leo Tolstoy from Anna Karenina 1877

The rich are all alike, to revise Tolstoy’s famous words, but the poor are poor in their own particular ways. – William McPherson

William McPherson, was a Pulitzer prize winning novelist and an editor at The Washington Post.

Although, he tried in earnest, he did not become a man of means.

A career in writing does not often come with riches. Writing tends to be a labor of love.

The career you choose can determine your outcome. It could mean the difference between fulfilling your destiny or starving.

No one wants to be a starving artist. I am not a romantic when it comes to money.

That is why I occasionally write these Cautionary Financial Tales such as these:

From debt-free to owing $1 million in mortgage debt

Meet an orthodontist with $1 million in student loan debt

Why the Rents shouldn’t pay your rent

Before Mr. McPherson died, he wrote an article called Falling, that was published in 2014, regarding his descent into poverty. It was published in The Hedgehog Review.

He went from book critic, novelist, and an editor at The Washington Post to destitute. That is a far fall from grace indeed. Here is his story.

HOW TO GO FROM PULITZER PRIZE WINNER TO PENNILESS

William Alexander McPherson was born on March 16, 1933. His father worked as a plant manager and his mother was a homemaker.

He attended public schools and eventually went on to college. Between the period of 1951 to 1966, he attempted to get a college degree. He attended several universities during this time. Alas, the coveted sheepskin (college diploma), remained ever elusive as he did not earn a degree.

He married in 1958, but it ended in divorce.

By 1969, he started working at The Post.

As an editor, he was in charge of Book World for The Post and under his leadership, he turned that into one of the leading literary publication in the United States, which is no small feat. That is a tremendous undertaking, job, and responsibility. However, here in the real world versus in college, he thrived.

WINNING THE PULITZER

In 1977, he was awarded the Pulitzer Prize for distinguished criticism and the judged noted his large breath of literary and historic knowledge.

A Pulitzer Prize is a coveted award in literature. It first began in 1917. This prize is given out for achievements in magazine, newspaper, literature, journalism, and music composition.

The Pulitzer is named after Joseph Pulitzer, a famed newspaper publisher, that made his fortune in publishing. The award is administered by Columbia University in New York City. Either a gold medal or cash prize of $15,000 (increased from $10,000 in 2017) and certificate is awarded to the winners.

He wrote two published works. One in 1984 and the other, a sequel to the first novel, in 1987. A third was in the works, but was never completed.

At the age of 53, he decided to leave his job, and head to Romania, after the fall of the Berlin Wall. He stayed there for seven years. Mr. McPherson opted for early retirement at the ripe old age of fifty-three. He would not be eligible to receive his pension for 12 years; at which time he would be sixty-five. This is where things began to spiral downward.

Why not retire at 65, when you can receive your money? That just makes more sense. In my opinion, unless you have between $2.5 to $5 million in assets it will be tough for most folks to retire or even justify retiring early before you have access to 401(k)’s, IRA’s, Social Security and pensions.

THE FALL FROM MIDDLE TO LOWER CLASS

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. – Joan Rivers

After choosing early retirement, having no real plan and giving little thought for his future income, he set out for an adventure overseas.

Although, he is a writer by profession, with age and the decline in his health, he is unable to sustain this way of earning a living. It is far different to be a man of twenty-two, eking out a living by writing than it is at seventy-two. He can long longer grind out the words as he could when he was a young man. He states this is one reason that he is poor.

Inflation would also erode the purchasing power of his money. From 1986 to 2014, inflation has gone up 109.7 percent. Meaning things have doubled in price.

His pension becomes worth half of what it once was and it not adjusted for inflation.

He receives Social Security, but having not worked formally for the last few decades means that this amount would not be very high.

Medical insurance has skyrocketed. It is a much higher cost to insure anyone, let alone a man in his golden years. It now costs him more monthly than he used to pay in a year.

He did not pay attention to his investments and bought stocks on margin.

In addition, he allowed advisors to manage his money and give him advice against his own gut instincts.

Eventually, his investments and brokerage accounts were empty.

FINANCIAL MISHAPS AND MISSTEPS

These are the things that caused Mr. McPherson to lose his financial shirt:

  • No clear vision of a career
  • No path to wealth creation ever established
  • He did not complete his degree; after numerous attempts which is time and money wasted
  • His only income consists of a Social Security check and a miserable pension
  • He retired early without a financial plan
  • Gave no thought to the future or inflation
  • High cost of medical care never even considered
  • Higher cost of housing not considered either (as news flash, things become more expensive not cheaper)
  • Did not plan for health issues
  • Divorced without having a financial net
  • He invested on margin
  • He spent his investment capital
  • Took bad advice from advisors that told him not to buy shares in AOL and Apple
  • Having fun was more important than getting his financial house in order (See my post on Aesop’s The Ants & The Grasshopper)
  • He did not spend modestly
  • Due to this he has to depend on the kindness of family and friends
  • He couldn’t pay for $10,000 of dental work
  • Did not have the money to attend a funeral
  • He subsists on a HUD subsidy for housing and medical benefits
  • Things got so bad, at one point, he only had a quarter to his name in his pocket and no bank account

POVERTY IN OLD AGE

He states by all standards of living that he is poor. Living in poverty is awful and humiliating he writes. Being poor is exhausting and time consuming. Waiting for buses and in lines at assistance offices takes all day.

His income is above $11,670 annually, putting him above the poverty line, as he receives more than that in Social Security. Even though, he has not ever had to apply for food stamps, welfare, or Medicaid he still has had to ask for government assistance.

He feels his younger self was delusional and naïve.

Although, he does not live in a homeless shelter, but living in subsidized housing isn’t exactly palace living. Many living there are poor as well.

The ailments that come with age are hard. Without good medical insurance, medical bills can be catastrophic to say the least. Medical debt has caused some to declare bankruptcy.

According to Elizabeth Warren, Americans are filing bankruptcy in record numbers. The main causes are job loss, illness, and medical bills. Women with children are also most vulnerable to file for bankruptcy.

The things he did that harmed his financial future were unable to be undone.

I share this story because the author had the fortitude to do so. I urge you to not just eliminate, but crush all of your debt and save at least 20 percent of your income because one day you may need it.

Fictional characters Cartoons and Money, Financial Freedom

Money and Life Lessons I Learned from CBS Storybreak’s Yeh-Shen

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“Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.” Chinese Proverb

“What you do not wish for yourself, do not do to others.” Confucius

Anyone out there that has been reading my blog, you can probably tell by now that I am a big fan of cartoons. I even named my blog after a scene in one. See my Meet Miriam page for more on how I came up with the name Greenbacks Magnet.

Anyhow, if you grew up in the 80s or 90s, then you may remember a Saturday morning anthology television show that aired on the CBS network called: CBS Storybreak.

Click here or on the logo to see the CBS Storybreak Intro.

It originally aired from 1985 to 1987 and was hosted by none other than Captain Kangaroo, Mr. Bob Keeshan.

Each episode was 30 minutes long and retold a beloved children’s story in animated adaptations.

It was later rebroadcast from 1993 to 1994 and was again returned to air in reruns in 1997 to 1998. This time it was hosted by actor Malcolm Jamal-Warner.

YEH-SHEN

My favorite episode of the series was entitled, “Yeh-Shen: A Cinderella Story From China.”

Yeh-Shen is a Chinese fairy tale that is similar to the European Cinderella story.

The one adapted on the anthology series, Yeh-Shen: A Cinderella Story From China, retold by Ai-Ling Louie and illustrated by Ed Young, is a well-known children’s picture book adaptation of the fairy tale, which was originally published in 1982.

If you are unfamiliar with the story or the animated series, a kind soul uploaded it to YouTube, and I have linked it here for you to see.

Fast Fact: One of the voices in this 1985 animated anthology of Yeh-Shen, was played by actress Emily Kuroda. She played Mrs. Kim on Gilmore Girls.

Mrs. Kim ran a tight ship, but was hilarious.

And Gilmore Girls happens to be one of my favorite shows. I want this website to be the Gilmore Girls of blogs, as there will be enough pop culture references in here to make your head spin, but that, like Lorelai and Rory, is how my mind works.

Now let’s get to the story.

VIRTUE CAN BE SEEN IN RAGS AS WELL AS SILK

“I believe that virtue shows quite as well in rags and patches as she does in purple and fine linen.” – Charles Dickens

Yeh-Shen always kept a neat and clean appearance. She kept her place in the home tidy. She also told the truth. And always acted with dignity and grace.  People noticed, including nobility. And not just any noble, A King. Ursula said it best, starting at 1:02 minutes.

I learned to keep a clean appearance at all times and take very good care of myself. I regularly get exercise, read, brush my teeth, and eat my three square meals a day. And people notice, including my partner. My appearance is one of the things that attracted my boyfriend to me.

FRIENDS ARE IMPORTANT

Yeh-Shen’s only friend is a fish named Gold Eyes. He is a spirit that is there to look out for her, that was sent by her mother, as a way for her to look after her beyond the grave.

Gold Eyes always helped Yeh-Shen. He would assist her with her laundry, give her food and advice, or provide anything else she needed help with.

She would share her meager breakfast with him, even though she had so little for herself. She was a good and kind person and a dear friend. In return, Gold Eyes held her in high regard and was always there for her in return. He tells her she deserves better and one day will have it.

From this, I learned how important friendship is. True friends are there in good times and bad.

It’s like Oprah Winfrey said, “Everyone wants to ride with you in the limo, but what you want is someone who will take the bus with you when the limo breaks down.”

Agreed.

POVERTY IS HARD

However, there is no shame in being poor.

Upon the death of her parents, Ye-Shen is poor. She becomes a lowly servant to her stepmother and her daughter. No matter the amount of work placed upon her, she does her duties, and does them well.

It didn’t matter how hard Yeh-Shen worked or how obedient she was. She was treated badly simply because she was poor.

A man in town even looked her over because he said he was looking for a beautiful wife and not a pretty servant.

From this, I learned two things: (1) A job worth doing is worth doing well, and (2) do all you can to change your station in life. You may be born into poverty, but only you can determine if you remain that way forever.

Might I suggest reading biographies and books about money. And get your education. A good one.

MANNERS MATTER

Every time someone spoke to Ye-Shen, she spoke elegantly and courteously. No disrespect. People remembered and appreciated that about her.

Those manners got her far. She was able to escape trouble, punishment, and land the attention of a handsome noble from minding her manners.

MIND YOUR BUSINESS     

Her stepsister did not want Yeh-Shen to go to the festival because that is where people go to find a husband or wife. She said, “she couldn’t handle that type of competition.”

In addition, when she finds out about Yeh-Shen’s fish, she tells her mother, who then gets rid of him. In the end, it turned out to be fortuitous for Yeh-Shen.

Do not focus so much on others. Mind your own business. Run your own race. You could be getting yourself together and becoming your own success, if you focus less on what others are doing.

POSITIVE AFFIRMATIONS

In the show, her stepsister repeats this phrase after her mother tells her she wants to hear positive thinking and not any negative thinking, “I will find a husband, I will be a bride.”

To this day, I practice my affirmations. I actually learned this from Yeh-Shen. I reject negative thinking and focus on being positive. Optimism gets results. Negativity does not.

MISERY LOVES COMPANY

When the stepmother learns of Yeh-Shen’s talking fish she decides to get rid of him. Leaving Yeh-Shen all alone.

Those who are unhappy, don’t want to be alone in their unhappiness. It is your job to get away from them. They will only drag you down.

FATE

Gold Eyes turns into magical bones. He tells Yeh-Shen not to despair, as this was his fate. He is still there with her, even though only in spirit.

Like Doris Day said, “Que será, será, Whatever will be, will be, The future’s not ours to see.”

You cannot control what is meant to be, but you can control your actions and how you respond to others. Stay in control. Have a cool head. Control your emotions, control your life.

KINDNESS

Gold Eyes tells Yeh-Shen that he must repay her kindness. Her stepmother would feed her very little. Therefore, Gold Eyes would provide huge meals for her as a way to compensate for this slight.

Even after all they put her through, she asked Gold Eyes if she should share with her stepmother and sister. He replies by telling her, “Did they share me with you? No. This gift is from me to you.”

He says to her that she can ask for something more, but she says, “this is all I need.”

Being nice has its rewards. I always repay a kindness. However, there is a thing as being too nice. You have to set limits and boundaries with people. In addition, you must also stand up for yourself. You can be nice, but don’t be anybody’s fool. Also, only take what you need. No need to be greedy.

DO NOT BE EASILY PROVOKED

Throughout the entire episode, she is repeatedly reprimanded, punished, neglected, scolded, and insulted. She never responds to this.

Sometimes you have to be man or woman enough to walk away. You must pick your battles. Live to fight another day.  Move on.

YOU MUST GIVE TO GET

When Gold Eyes tells her she deserves more and that they should not treat her so bad she says she knows.  But she was an orphan and they gave her a home.

He offers to do her chores for her, but she says she does not mind doing manual labor, for now. She hopes to find a husband (her true love) at the festival. He concedes and tells her if that is her destiny so be it.

She is offered the world on a silver platter and turns it down.  She wants to make her own future on her terms. It is best to keep your head down and work. You must give to get. That is just how the universe and karma works.

BROKEN PROMISES AND DREAMS

She helps her stepsister get ready for the festival. After, she is done, she says she must get herself ready and asks if it is still alright for her to go, as her stepmother promised.

Her stepmother breaks her promise. She tells Yeh-Shen she can go to the next one, or the ones after, but this this one for this year. Yeh-Shen was looking forward to that festival all year. Hope was thoroughly dashed. Yes, this can happen in life.

A TIME TO BE DISOBEDIENT

When her family leaves to go to the festival, Gold Eyes tells her she should go. She says she has nothing to wear. He then magically turns his bones into golden slippers, which transforms her plain clothes into a gorgeous dress. She disobeys her stepmother and leaves to go to the festival.

In life, there is a time to act. You must decide if you are going to break the rules.  And if you are, you better make sure it’s for a good reason.

DEMURE AND CHARMING

At the festival, her family sees the man referred to as The Handsomest One. She then gives a toothy smile and he scowls at her. It was hilarious.

Her mother then says your supposed to charm not scare him. She then goes on to say, “Let’s try the not handsome, but rich crowd.” Come on, really?

Then enter Yeh-Shen all dolled up. Yeh-Shen, who is usually demure, looks confident and sophisticated. A far cry from the reserved creature you are used to seeing in this episode.

Her mother remarks that, “There is the prize winner. She will get the handsomest, richest husband.” She says to her unmarried daughter, “Why can’t you look like that?” Who smartly remarks, “because I was born from you.” Her mother then pinches her.

Oh yea, for a drama it also has quite a bit of comedy. It’s a dramedy for sure.

HATERS GONNA HATE

When Yeh-Shen walks her stepsister says that she had hot nothing to do all day, but take dancing lessons and be pampered. Come on. Hating like that will give you wrinkles unmarried daughter.

It doesn’t matter how nice you are or what you do for people. Some people just are some haters! Ignore them. They hate us, cause they ain’t us. I say don’t hate, congratulate. Figure what they doing so you can see what makes them so successful and find the secret recipe, so you can copy it.

PRICELESS

At the festival, she runs away and loses one of the gold slippers. A man finds it and sells it to the merchant. The merchant then gives it as a gift to the King.

The gold slipper is referred to as priceless. And it is. Rare indeed. When something is priceless, you don’t just give it away to anyone. The merchant gave it to someone he felt was worthy.

A GIFT  FIT FOR A KING

The King feels that the slipper must belong to someone of great beauty and wealth. He decides to find the owner. Who just so happens to be Yeh-Shen; who is also looking for a golden slipper.

If something is lost, then you may decide to return it to its owner. However, do not think that it will come with a reward or be some fairy tale, happy ending. All that glitters may not be gold. In this case, the owner was a poor, orphaned, peasant girl. But there is more to her than people can see.

SEEK AND YOU SHALL FIND

Yeh-Shen asks around town to find the other slipper She finds a man who sold it to the merchant.  He then tells her he gave it as gift to the King. She says she must acquire it from the King. The merchant tells her to go to palace to go try it on. She says, “Thank you sir, I shall.”

If you want something, go and get it. Sitting on your laurels has never helped anyone.

THE POOR HAVE NO VOICE

Yeh-Shen waits in line all day to try on the slipper, but is denied. She then tries to take it. The palace guards accuse her of trying to steal it. They called her a girl in rags. She tells them the slipper belongs to her friend, a dead fish, as the slipper design is like the scales of a fish. They lock her in the dungeon.

First, if she had been a woman of nobility, she would not have been treated this way. To be poor is not a crime. However, if you want to be heard, you must ask the right way.

Second, you cannot even look as if you are attempting to steal something. There is a saying that, if you’ll lie, you’ll steal and if you’ll steal, you’ll kill. Do not even give people a reason to think that.

MERCY

The King says to have her released in the morning.  A guard tells her in a curt tone to get out and stay away. She merely bows.

Like in the Karate Kid (1984), there is a time to show mercy. A tense situation arises between an adult and a teen. And they needed an adult at the wheel. Mr. Miyagi was that adult.

And for those who do not know Mr. Miyagi, this is for you. Please do not be like that kid on that episode of Supernatural.

For those of you who do not know or may not remember, here is the scene of Mr. Miyagi teaching Daniel son another life lesson.

A TRAP SO TINDER

Better than any tinder app could do, the results of this match are written in the stars. Slide left, I mean right. Don’t want to make that mistake.

The King sets a trap to leave the slipper unattended so Yeh-Shen will take it and he will then follow her to see what she does and why it’s so important to her. That’s smart.

And pretty slick, if you ask me. Reminds me of that scene in Hackers (1995). 

PATIENCE

They wait. She takes the slipper. They follow.

Anything worth having is worth the wait.

IT DOESN’T BELONG TO YOU

After getting the slipper back, her step family find her out. Her stepmother is happy to have a matching pair of gold slippers. She says their fortune is made and their ticket out of the cave. She will sell to the King.

You do not own and cannot sell what is not rightfully yours.

NO THIEF HERE

The King stops the squabbling between Yeh-Shen and her stepmother. She tells him she is no thief. She needs to have the slippers together so that her friend can go return to the pond of his forefathers.

Sounds crazy, I know. However, when in doubt, tell the truth.

WHO ARE YOU?

The problem with playing games is that you get hurt too. – Common (actor, rapper, entrepreneur)

She tells the King who she is. No more games or pretending.

He asked. She answered. Tell people who you are.

GET TO THE ROOT OF THE PROBLEM

The King asks her, “What are these slippers to you?” She says they belong to her friend. Explains her story to the king.

That’s right. Tell people your story. Share what you are trying to do. You will be surprised how much people are willing to help you when you are doing the right thing. Also, when you know the truth, then you can deal with it.

DO THE RIGHT THING

The King tells her if that is what she must do with the slippers, then do so. He then says “but first, place them on your feet.”

She obliges and transforms back into the woman seen at the festival that day in the beautiful dress.

The look on her stepmother and stepsister faces are priceless!!!

The King could have decided not to believe her, but he listened. Do the right thing because it is the right thing to do and not for any prize or reward. Doing the right thing is its own reward.

SECRETS REVEALED AND DESTINY

Gold Eyes magically appears as a spirit and thanks Yeh-Shen. All secrets are now revealed. He tells her now he can go. As her dreams are about to come true.

If you are meant to have it, no one can stop you from your destiny.

The truth is out, now you can deal with it.

MARRIAGE MATERIAL

Her stepmother tells her that the clothing that Gold Eyes gave Yeh-Shen belongs to her because she is her guardian.

The King says no as she is a free person. She must then step aside.

The King says, “Your friend, the mystical fish has brought you into my life for a reason.” He then steps up to the plate, wasting no more time and asks for her hand in marriage. She says yes.

The show ends by letting the audience know to visit your local library or book store. Book recommendations are provided by the Library of Congress. If you like this tale, then read Cinderella by The Brothers Grimm.

I, myself, am a huge fan of the fairy tales. I like Hans Christian Anderson and the Grimm Brothers. Particularly, the Grimm Fairy Tale Classics cartoon, but that’s another story.

Financial Freedom built attracting one dollar at a time