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Book Reviews, Celebrities and Money, Self-Made Millionaires, Wealth

Gene Simmons On Power

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“Walk amongst the natives by day, but in your heart be Superman.” ― Gene Simmons

In 2017, Gene Simmons wrote a book called, On Power: My Journey Through the Corridors of Power and How You Can Get More Power.

This book was nothing like I expected.

It was MORE.

Like the title says, it’s about getting more power. Become more powerful than you ever thought you could be. It all starts with your actions.

Let’s get right into it.

WHO IS GENE SIMMONS?

Image: Forbes.com

The short version is that he is a co-founder and front-man of the band KISS, that he helped start in the 1970’s. They are America’s #1 gold record-award-winning group of all time.

Image: New York Post

Gene grew up dirt poor. He practiced guitar for hours after watching The Beatles on an appearance of the Ed Sullivan show, he knew then that he wanted to be a rock star.

According to Harper Collins, the book was inspired by Niccolo Machiavelli’s The Prince, Simmons offers his unique take on the dynamics of power in every realm of life, from the bedroom to the boardroom, to the world of rock, celebrity, and social media, to politics. With one-of-a-kind anecdotes from his life and career, as well as stories from historical and contemporary masters of power, including Winston Churchill, Napoleon Bonaparte, Warren Buffett, Michael Jordan, Oprah, and Elon Musk, Simmons crafts a persuasive and provocative theory on how the pursuit of power drives civilization and defines our lives.

Gene Simmons has an estimated net worth of over $50 million dollars. So, I decided to give the book a quick read. Glad I did.

POWER IS WHAT EVERYONE WANTS

People want power.

  • Power over their lives
  • Power over their time
  • Power over their professional lives and career
  • Power over their money

So, how do you get this so-called power.

It’s a power grab for sure.

Gene takes a no-holds-barred approach to his life and on power. It’s dog eat dog out there. You have to be one of the big dogs.

Gene believed that everyone deserves power and that it is yours for the taking.

In his book, he gives you the key to unlock the doors to the temple of power.

GENE ON EDUCATION

“It’s up to you to educate yourself.”

“It’s up to you to learn speaking skills and people skills.”

“It’s up to you to try (and usually fail, but to try again) all sorts of ventures.”

“Believe me, the library is the temple of God. Education is the most sacred religion of all.” 

He graduated from Richmond College in New York City getting a bachelor’s degree in education. At one point, he was a school teacher in the Upper West Side.

Gene also speaks multiple languages such as German and Hebrew.

I noticed this was also a theme of Scrooge McDuck. Get a good education, become a linguist, and get to work.

I read everything I can get my little hands on. I go to the library every month. I regularly check out 4-5 books at a time. Sometimes more. I do believe in being well-read.

GENE ON SUCCESS

The rest is a combination of hard work, being at the right place …at the right time…with the right thing…oh yes…and more (never ending) hard work.” 

You want success? Well, you have to work for it.

Gene puts his money where his mouth is.

He worked for a butcher hauling up huge slabs of meat and cleaning the blood off the butcher block. Gene has worked as a typist and sold fruit on the side of the road when he was 8 years old.

Make no mistake. Gene is a hard worker and a hustler. He was working multiple jobs to get ahead. Similar to Jay Leno.

As for myself, at one point, I was working as a waitress, cashier, or in sales. In addition, to going to college and studying at times up to 5-7 hours a day! Going to bed at 1 am and getting up at 6 am. Rinse and repeat! I did that for years.

GENE ON ENTREPRENEURSHIP AND CAPITALISM

“Before I ever knew what the word Entrepreneur was, I realized in America and in the Western part of the world in general, you are given the opportunity to be whatever you want to be. And that is all anyone should ever expect from the Capitalist system. The rest is up to you.”

Yep. America is the land of YOYO (You’re on your own).

You learn real quick that no one is coming to save you. You have to create your own safety net. You can’t depend on the government. The only person to depend and rely on is self. Get it? Got it? Good.

GENE ON MONEY

“So much of our popular mythology focuses on the negative aspects of power that we forget that gaining power is, perhaps, the only way to enable ourselves to make a difference in our lives and in the lives of others.”

Gene says you must first get your financial house in order before you can espouse love.

This is similar to what I once heard Tyra Banks mother say, “you have to get yourself together first, before you can help anybody else.”

You should always be looking for ways to earn and expand those earnings. KISS started out with nothing. They slowly built a following. IT. TOOK. YEARS. They were riding around in an old van going from gig to gig and living off hot dogs.

But KISS got smart. They started licensing their name. Everything from lunchboxes to t-shirts. Their moniker is big. Multi-million dollar deals got them to the top of the heap. Monetize everything is Gene’s motto. And he has. And it’s been lucrative to say the least.

So, there you have it. Gene Simmons on power. If you want it bad enough, you just have to work and rock-n-roll all night, like KISS, to get it.

Book Reviews, Celebrities and Money, Retirement, Saving, Wealth

The Capitalist Code by Ben Stein

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The first step to getting the things you want out of life is this: Decide what you want. – Ben Stein

Ben Stein is an economist and actor, who wrote a book in 2017, called The Capitalist Code: It Can Save Your Life and Make You Very Rich. He has an estimated net worth of over $5 million. So, I thought I would check his book out.

On my quest to follow the money, I have discovered lots of books, blogs, and information about money.

I have been told I am seriously into all things money. Friends sometimes call me “the money lady.” That’s fine with me. I take that as a compliment. There are much worse things to be called than that.

But, I get it. I do have a laser-like focus when it comes to getting things done. I can be a task-master. It comes naturally to me. I just can’t help it because I believe in finishing what I start.

I learned that lesson from one of my favorite childhood books Where the Red Fern Grows.

You could say I’m a bit obsessed with learning about money. However, it has served me well to know about personal finance. I have a six-figure retirement and save over 40 percent of my income. All that came from reading finance books!

That is how I came to find this book. It is a quick read as the book is on the small side at 146 pages in length. I knew the name Ben Stein, but I wanted to find out What is The Capitalist Code?

But first…

WHO IS BEN STEIN?

“I’m an economist by training. I don’t really work as an economist. I only worked briefly as an economist.”

There is a short bio description of him online at goodreads which states:

Jewish-American economic and political commentator, writer, actor and attorney. He gained early success as a speechwriter for American presidents Richard Nixon and Gerald Ford. Later he entered the entertainment field and became an Emmy Award-winning actor, comedian, and game show host. He is famous for his monotonous yet humorous voice in acting.

For those who may not be that familiar with the name you may remember him from his self-titled television show, “Win Ben Stein’s Money” or from the film, Ferris Bueller’s Day Off.

“As to a media personality, well that just happened in large measure because people found me amusing, and I did lots and lots of T.V. news interview shows.”

“It’s a great stretch for me to do my game show. It’s very hard. It’s not me at all. The only part that’s me is sort of when I’m sitting in the booth looking tormented. That’s the only part that’s the real me.”

In Ferris Bueller, he is actually discussing a real topic of the era. During the 1980’s, Reaganomics was also referred to as voodoo economics or trickle-down economics. I’ll give you more on this topic later, in a future post. 😉

Ben has written for publication’s such as Barron’s, The New York Times, Fortune, and the Wall Street Journal. And numerous financial books including this one.

WHAT IS CAPITALISM?

By definition, an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state. You will often hear it referred to as a free market or free enterprise.

Simply put, capitalism is a system of investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained by individuals and corporations instead of by state-owned means.  Participants privately own capital.

Ben says, “Free market capitalism is a fantastic wealth-producing system and allows individuals to amass wealth.”

In addition, “There is no freer, more diverse, and more equal opportunity employer than capitalism. . . If you can produce a large amount of excess over your costs, you get well paid. And if you produce very much more than you cost, you get rich.”

A free market of competition, not a central government or regulating body, dictates production levels and prices. True capitalism needs a competitive market because without competition, monopolies exist.

See my post in which I discuss monopolies for more information

WHAT IS BEN’S ADVICE ON CAPITALISM?

“If there’s a recession, I’d buy stocks. That’s when you make money: when markets are spooked.”

His primary objection of this book, is to get people off the sidelines and into the market.

“The sad fact is that spending rises every year, no matter what people want or say they want.”

This book gives you the #1 simple thing you can start doing today to grow your wealth — thanks to this “rigged” system known as capitalism.

Anyone can do it. You don’t need to have a Harvard or Economics degree or be a financial expert.

Basically, he wants you to do this: Invest in the stock market.

It’s a way to own a tiny piece of a big business and minimize your risk. Your piece of the American financial pie.

More specifically: invest in an index fund of the S&P 500.

You’ll own a tiny piece of a bunch of businesses and you’ll have more money when it’s time to retire.

That is also Warren Buffet’s advice among others.

See my post below on stock ownership

Patience is the key to wealth 

BEN ON WALL STREET

“Trying to pick individual stocks is a trap. I can’t do it. Warren Buffett can, but hardly anyone else can beat the indexes over a long period of time.”

It’s easy to think of big business as morally bankrupt, but it isn’t, really. Business leadership can make poor/unethical decisions, but being big doesn’t make them inherently wicked, and being a small business doesn’t make it inherently virtuous.

“I agree that there are some bad apples on Wall Street. I spent about ten years exposing corporate and financial fraud for ‘Barron’s’ magazine and I found a lot to write about.”

If you want to know more about stocks, you can read numerous books and magazines on the topic such as Value Line, The Intelligent Investor, and anything by Jack Bogle.

The key point is this: Free market capitalism is an incredible machine for making wealth. Corporations “rain money” year after year. If you don’t participate, you are making a huge blunder. It doesn’t take a genius, but it does take a plan—a “little bit of knowledge and an even smaller amount of action.”

SCARY STATISTICS

“The education system should teach us about money; it’s an incredibly big subject. I run into people all the time that don’t have the first clue of what they should do about money.”

Ben states the following about personal finance in America:

  • Most Americans have not inherited wealth or a successful business that could set them up for life
  • 80% of millennial’s have no plan whatsoever for retirement savings
  • Many Americans are saving NOTHING
  • The average person says they need about $50,000 per year for retirement; but only has savings to achieve 20% of that number
  • We live in a country where more than half the people couldn’t come up with $500 in cash today if they had a family emergency

Source: GoBanking

WHAT YOU NEED TO DO

According to Ben, you need to save first, and then spend— automatically.

That’s similar advice that Shark Tank’s Kevin O’Leary says: “Don’t spend too much. Mostly save. Always invest.”

Barnes and Noble provides this overview of the book: harness the incredible power of the U.S. economy for enjoyment and security by being owners of profitable businesses-by consistent, conservative investment starting as young as possible in a diversified port- folio of stocks. Anyone can be a capitalist—and should be. All it takes is a little bit of knowledge and an even smaller amount of action. All it takes is The Capitalist Code.

BEN ON EDUCATION

“There is a clear, unequivocal, if generalized, connection between the amount of education that a man or woman achieves and the amount he or she earns.”

In the book, he shows what women can earn with a degree…

And men.

Agreed. I notice that the more education you have, the more informed decisions people tend to make.

Although, in my opinion, education is not an equalizer it does; however, provide you with increased opportunity, knowledge and exposure to scholarly information.

For most folks, a bachelor’s degree is enough. Particularly, from a reputable in-state public or private accredited institution.

I will never forget when I was reading Arnold Schwarzenegger’s biography when he saw a PhD professor driving up in an old, beat up car and he said to himself that if that is what an advanced degree gets you, then that guy was in the wrong career.

BEN ON SPENDING

“You must arrange your life from the very get-go so that you are spending less than you earn.”

Yep. I have learned it is not what you make, but what you spend.

You can totally blow through $200,000 USD a year after taxes! Just keep buying big homes and expensive cars.

BEN ON PICKING STOCKS

How should you invest?

“You don’t need to “play the market” and try to pick stocks. Just buying and holding index funds is a simple, effective method that beats money managers most of the time.”

How long should I hold onto stocks?

“Hold onto these funds as long as possible.”

Should I sell as soon as I get a sizable gain?

“Take advantage of huge tax subsidies for deferring investment gains.”

BEN ON WEALTH

“A highly disproportionate amount of the good things in life accrue to those who have financial capital. The easiest way is to own index funds.”

He states you must acquire wealth.

I too have read you must pursue wealth. You may not want to chase money, but sitting on your laurels won’t attract money and abundance to you. Wealth is something that is attracted to those that have beat inertia and exhibit exertion.

Well, there you have it.

Straight from the guy who is pretty focused on one-task himself as he continued to utter that famous line, Bueller? Bueller? Bueller? Bueller? 

Just like someone had pity on him and answered him in the movie, Mr. Stein has answered a lot of your money answers in his book. The code is capitalist. He has given you the key to unlock the secrets on how to build wealth. So, use his key. Because guess what? The secret is out!

Celebrities and Money, Retirement, Saving, Wealth

Introducing the $100,000 bottle of water

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This $100,000 bottle of water costs as much as a house in some parts of the country. Heck, even the world!

Thirsty? Well, this bottle of H20 will only cost you $100 grand. You heard me. $100k! Yes, that’s USD.

That’s the most expensive sip of water I have ever heard.

What if I accidentally spill it? Oh, to perish the thought!

I was sure it was a joke. Like how Jokey the Smurf brings you a present and then you find out it’s a gag gift. You know, something like that.

I can’t even fathom parting with that much cash for something you could get for free out the tap at home or at any restaurant.

Who are the marketing geniuses who thought of this? Who is the target market? What are the demographics?

Who in their right mind would pay $100k for some water?!!

WHO WILL BUY $100K BOTTLE OF AQUA?

Fine. I’ll bite. Who are they?

I guess you could say this water is targeted at a high-end clientele. Those that have pockets so deep, that smacking down that type of scratch is no problem, as all they have to do is whip out their Centurion Black Card. Swipe, sign, and done.

The company actually got rapper 2 Chainz and DJ Diplo to taste the water. They have both sold millions of albums. So, sure you could market to them. Market to the affluent is a must at this price point.

If you don’t have to bat an eyelash at this type of transaction, then good for you.

The rest of us reasonable mere mortals are not buying it. Where did this water come from?  Is it magic water from the fountain of youth? Will it heal all maladies or whatever ailments you have. Basically, will it cure what ails you and eliminate the need for the ever increasing cost of healthcare?

Could I rub it and make 3 wishes?

Like in the show Gargoyles, this isn’t Aladdin’s lamp. All things have their limitations. Even the character called Puck agrees with me. Check it out 30 seconds in.

Water can quench your thirst, clean you, keep you healthy and alive, and that’s about it.

MAKERS OF THE MOST EXPENSIVE BOTTLE OF WATER IN THE WORLD

The company is called Beverly Water. They are located in Beverly Hills, California.  The water is called Beverly Hills 90H20. It is crafted spring water from the California Mountains.

Coined “The Most Expensive Bottle of Water in the World,” is clearly meant to entice people with deep pockets that this is a must have item.

Here is the description that I posted on their website:

Description

“The Most Expensive Bottle of Water in the World”

Limited to only nine bottles in the world, the Diamond Edition of the Luxury Collection of Beverly Hills 9OH2O is the ultimate in water.  Designed by Jeweler to the Stars Mario Padilla, each exquisite bottle features a white gold cap set with over 600 G/VS white diamonds and over 250 black diamonds, totaling 14 carats.  Each bottle comes in a custom secured presentation case together with four engraved Baccarat crystal tumblers, and it is presented in person by renowned water sommelier Martin Riese at a private water tasting anywhere in the world.  In addition, the Diamond Collection package includes a one year supply of the Lifestyle Collection of Beverly Hills 9OH2O.

THE MOST EXPENSIVEST SH*T

There is a video posted of 2 Chainz and Diplo getting a tasting of the water from a, get this, water sommelier. It turned out as expected. Neither care to buy $100k bottle of water. Why you ask? It’s simple. It’s just water!

After, introducing the water to the two gentlemen, which is housed in a massive case, you get the feeling something is seriously off here.

Then comes reality.

THE $100,000 DOLLAR QUESTION

2 Chainz asked what everybody wants to know, “What are you paying $100,000 for?”

The white-gloved sommelier then points at the bottle cap.

You are not really paying for the water, but what the water comes in and with.

Which is a 14 real diamonds, 600 white ones, 250 black diamonds, and white gold.

For this diamond luxury experience, you’re getting the case, and 4 diamond baccarat glasses.

After I stopped laughing hysterically, I started reading the comments on the video.

The hands-down and absolute funniest part after watching the video is reading the comments section.

MY SENTIMENTS EXACTLY

Here are just some of the comments I saw that popped out at me.

Imagine how disappointed you were if you paid $100k for this bottle thinking its vodka

MBA lesson right here

If you can convince someone to buy a bottle of water for $100k. You deserve that $100k.

I will put some tap water in a bottle and sell it for 500k!

Marketing and BS.

Ima stick with my Aquafina😂😂😂

I’m no mathematician, but that’s more than 2 chains.

For those who didnt catch it, you are not paying 100k for the water. You pay 100k for the Diamonds and the gold on the Cap.

The glasses the diamonds and the case cost 99,999 and the water 1$

0$ water … 100k bottle cap

Man, that water better have the power to cure all diseases for that kind of price. 100K seriously???

I better become a mermaid after taking a sip for 100k

100k for a bottle of water? That sh*t better bring Jesus and 2pac back.

Meanwhile in Flint, Michigan…

This water better come from the fountain of youth.

Bottle of air 2billion dollars

One person put my exact thoughts, as I described above, into an elegant rebuke of buying water this freaking expensive.

MadeInVolantis 2 years ago

For 100k that water better turn me 18 again. For 100k that water better cure my thirst forever. For 100k that water better wash me of my sins. For 100k that water better make me a million dollars back somehow.

Well said.

Basically, it’s a $100k jewel-encrusted capped bottle with water inside.

Let’s think about this for a second. What could you do with one hundred thousand dollars? I’m about to tell you.

YOU COULD DO BETTER THAN BUY A DIAMOND CAPPED BOTTLE OF WATER

You could do all types of things with that kind of money. These are just some suggestions.

WHAT YOU COULD DO WITH $100,000

  • Start a college fund for underprivileged kids
  • Put every dime in the market and get historical ROI average of 7%; be a millionaire in 30 years (there goes that million bucks the commenter above was talking about)
  • Start a business
  • Donate $1,000 to 100 charities
  • Donate $10,000 to 10 charities

WHAT WOULD BE FUN TO DO WITH $100,000

  • Rent out a blimp over your old college campus, get $100,000 worth of ones and make it rain
  • Go to Vegas, rent out the Penthouse of an expensive hotel , and bet 10,000 on black
  • Get on a plane to Dubai, UAE, fly first class on the Emirates and visit every attraction
  • Visit Rome, Paris, China, London, and Australia just to get a keychain
  • Get back stage and front row passes to see your favorite artist in concert
  • Enter a professional poker tournament with a $10,000 buy-in
  • Walk up to anyone of the people collecting for the salvation army and give them a check for $25,000 (kind of like that scene in the movie Ghost)

Great scene. You will love it. No need to thank me for uploading it here.

If you have never seen the movie, then I highly recommend it.

WHAT YOU SHOULD DO WITH $100,000

  • Donate 10% to charity
  • Put a down payment on a piece of property
  • Pay off all or a large portion of your debt
  • Invest in the stock market like the S&P 500 index
  • Pay cash for college
  • Buy a car outright
  • Invest in your health

If you want to impress people, just show up to their events on-time and don’t complain.

And if you just so happen to get thirsty, stick with VOSS, Evian, or Deer Park. Can’t go wrong.

That’s just my $0.02, er ehh, I mean $100k money saving tip of the week.

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

Money advice I got from John Legend

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“It’s not wrong to be afraid.” John Legend

John Legend is a Grammy and Oscar Award winning musician. The singer-songwriter won his first Grammy Award with 2004’s Get Lifted. The album went platinum, thanks in large part to his hit single “Ordinary People.”

He was a child piano prodigy. He skipped two grades and graduated from high school at 16.

Legend stated he was offered admission into Harvard University and scholarships to Georgetown University and Morehouse College. Ultimately, he chose to go to the University of Pennsylvania, where he studied English with an emphasis on African American literature.

He sang in the church choir (which he joined at 7 and was leading it by 11), was head of the music department in his church, served as a music director in college and also worked as a wedding singer.

He has done numerous interviews in his career and much of the information in this post comes from them. I discuss multiple ones in this post.

John has an estimated net worth of $40 million dollars.

He did an interview with Katherine Schwarzenegger for her 2014 book I Just Graduated… Now What?: Honest Answers from Those Who Have Been There. You may recognize the last name. Yes, she is the daughter of Arnold Schwarzenegger and Maria Shriver (Kennedy).

For more information on her famous father, you can read my post How Arnold Schwarzenegger Totally Recalls making $20 million-dollar paychecks.

How Arnold Schwarzenegger Totally Recalls making $20 million-dollar paychecks

His advice in that book inspired me to work harder to pay off all my credit card debt and start massively saving. See my post How Millennial Money inspired me to start saving $13, 333.06 a year 

Here is some of what he had to say. (Not every word or quote is from her book, but numerous interviews) I highlight his advice in her book with KES (Ms. Schwarzenegger’s initials).  There they are (KES) on the board right behind her.

I really liked this book. So, I tweeted Ms. Schwarzenegger and told her so. She gave me a like. Thanks! I appreciated that. 👍😊

NO OVERNIGHT CELEBRITY

“I had followed the path that the Penn graduate was supposed to take, but I didn’t fall in love.” – John Legend

KES: John directed theater productions in school and performed in talent shows. He wanted to be a big star, but did not know the steps to get there. John said he had a fire in his belly.  No one was coming along to make him a star as he learned along the way. John had to put together a demo and have it produced by the right people. Anything that he was doing that wasn’t music, was going to be temporary.

After graduation, he switched gears (gave into peer pressure) and starting worked for the prestigious Boston Consulting Group, but would also perform in nightclubs in New York City.

Although, music is his first love, he worked a safe corporate job for three years while hustling to get his music off the ground. He received lots of rejections, but continued to side hustle as a musician playing anywhere he could.

DON’T BE AFRAID TO FAIL 

“Fear of failure stops too many people from doing things. It’s not wrong to be afraid, but you have to fight through fear to overcome it.” – John Legend quoted as saying this in Katherine’s book (KES)

Many of his friends became bankers and consultants so he did too. However, after following in their footsteps he found that was not meant for him. He was not cut out to be a consultant.

“I couldn’t shake my passion for music.” – John Legend

He made savvy moves to make his dream a reality. During the day he did PowerPoint presentations, but at night he wrote and performed music.

Fun Fact: While in college, Legend was introduced to Lauryn Hill by a friend. He played piano on Lauryn Hill’s “Everything Is Everything.” That was his first album appearance.

WHY SIDE HUSTLE?

“I needed money. I lived in New York and had to pay my rent.”

KES: John didn’t have any financial support from his parents and he had student loans to pay back. He found that you could make good money in consulting.

He was rejected by all major labels. All the heads of these labels all turned him down.

KES: John paid his own way through college, racking up tons of student loans in the process. He had to deal with them after graduating college. He rolled the dice, took chances, and worked his butt off to follow his dreams, and never lost faith along the way.

Basically, he moonlighted his way to a music career.

BREAKTHROUGH

Havin’ money’s not everything, not havin’ it is. – Kanye West

John’s big break came out of relationships he had made. A college roommate (which was Kanye’s cousin) introduced John to a music producer in Chicago named Kanye West.

KES: John would go to the studio straight from worked dressed in his business attire. He said he definitely stood out from the way everyone else was dressed in the studio. He ended up getting a manager and a lawyer that were also well-connected. This was in 2002.

If you want to be treated like an adult, you have to dress like one. – Diane Kruger (actress and star of National Treasure) See my post on the film. 

Money and Life Lessons I Learned from Disney’s film National Treasure

Through his collaboration with Yeezy, he was able to parlay that into a record deal. His first album was produced by Kanye. He got a deal with Sony.

That album would go on to earn eight Grammy nominations.

Years of toiling and hard work had paid off. It just goes to show, it’s not only what you know, it’s who you know. If you want to be taken serious, then you have to act like you do.

FIRST BIG PAYDAY

“When I got my first big check, I paid [my college loans] off. No more debt!” – John Legend

As you can see, his biggest earnings are from his music. It goes to show that passion can pay off big!

KES: John quit his job and started working part-time so he could focus more on his music. He struggled for a while, living on credit cards and skating by. Then he started making money touring with Kanye. In 2004, he got a deal with Columbia Records and when that happened he didn’t have to worry about money anymore. As soon as he got my record deal, he paid off all his student loans and credit card debt. He said no one ever told him about college loan debt and how to manage it.

Preaching to the choir here with not knowing how to manage debt. And in his case, that is literally speaking as he was in the church choir singing, which would become his meal ticket.

INVESTMENTS

“I bought a place [in Manhattan]. I just bought some art—some abstract stuff—and some collages are coming too. A friend who works at MoMA is like my art consultant. I just wanted nice stuff that would hold value.” – John Legend

You should always invest and buy things that go up in value. It just makes sense.

PASSION MAKES A GRAMMY WINNER

“But that cool detachment only gets you so far. Passion gets you a lot further. It makes you a better entrepreneur, a better leader, a better philanthropist, a better friend, a better lover.” – John Legend

He chose to pursue his interest. This made him his fortune. I call it the House that was built on a piano. 😉

Just FYI: John Legend is a 10-time Grammy Award winner. He won an Oscar for the song Glory in the film Selma.

College, Financial Independence, Saving

Why the Rents shouldn’t pay your rent

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Financial independence is the ability to live from the income of your own personal resources. – Jim Rohn

Reading headlines in the news about how boomerang kids are returning home in droves is quite alarming.

When I was growing up, I saw lots of young adults leave home and never return. They got jobs and worked their way up to where they were trying to go.

However, a couple decades have changed all that.

One of the biggest culprits: student loans.

The cost of college has outpaced inflation. Therefore, it is now up to families to find affordable ways to get a college degree.

Otherwise, your kids may just end up back in your basement, or worse, in their childhood rooms that they could hardly keep clean when they were debt-free teenagers. Gulp!

The reason that so many millennial’s need parental assistance in paying their rent is because they shoulder the bulk of the $1.4 trillion in student loan debt.

However, borrowing or taking out deposits from the bank of Mom and Dad is not a good idea and can have lingering consequences for the parents as well as the kids and future generations.

Here are the reasons why young adults should stop relying on their parents and become independent as fast as they can.

FINANCIAL INDEPENDENCE WILL TAKE LONGER TO REACH

We are living in a time when more people discuss this phenomenon called FIRE (financial independence retire early).

Although, this should be taken with a grain of salt, as many people will need to save 50% or more of their income for a decade or two to make this dream a reality. And that is not always possible or feasible to do, to say the least.

That being said, the decision is always yours whether or not you retire at 42 or 62. The point is to be able to one day have the option to retire.

When you lean on your parents (the Rents) to pay your bills, it can delay the transition into adulthood.

I have noticed when people have no safety net, they are a lot more resilient and cautious about what they do and spend.

For example, to rely less on Mom and Dad later in life as an adult, you could do the following:

  • Live with a couple roommates
  • Pick a smaller apartment to live in (say 700 square ft.)
  • Go without a car or at least buy a smaller, more affordable one
  • Commute to college and save by not paying room and board; therefore, requiring less or no student loans

It seems to be the people that get off their parent’s payroll ASAP are the ones that are able to become financially independent the fastest because they have no other choice.

When the only option is self-reliance, then you learn to live lean really quick. And low fixed expenses are how you will be able to start saving money.

A SUBSIDY SHOULD HAVE LIMITS

For those that may not know, right now the Direct Stafford Loans offer a three-year subsidy (you may have to ask your loan servicer if your loan has this feature) for students entering repayment.

Those funds give graduates time to find suitable employment and create a budget for their lifestyles in order to repay what they owe.

This cushion is a great way to help young people get on more solid financial footing.

What you may or may not have noticed is that there is a three-year window and then it closes shut.

And do you know why? It is because when you offer people a crutch, then unless they have the drive, perseverance, determination and the will to be self-sufficient, they are likely to use the crutch forever.

You have to limit aid, otherwise, people come to rely on it for all their days.

This includes the funds from your parents.

Get off their bankroll as fast as you can, or you may come to depend on it for the rest of your life.

Let’s be honest. Nothing lasts forever. Even milk, has an expiration date.

You would rather have the option of saying no than hearing the words: We’re cutting you off.

RELYING ON SELF GETS BETTER RESULTS

I know that having help is at times necessary to keep a roof over your head. I would not tell parents not to help their children. I am asking children to tell their parents, that they no longer would like their financial assistance.

Therefore, you become the adult or hero in your own life and story.

If you read any number of stories about the rich and successful, you will notice that many did not pull themselves up by their bootstraps, but had just enough help to get things running and then go it alone.

When you allow someone to write you a check, you are also giving them some form of say so in your life. This de facto control you are giving up every time you cash that check, has far reaching and lasting consequences.

You may want to live in SoHo, but the parents say they are only willing to pay for something closer work or at a specific dollar amount. Thereby, giving them more control over your life.

When you write the check, you have all control. You say when, where, and how much.

No need to wait on anyone to give you the green-light or hand you the money. You can make decisions for yourself and might I add, faster than if you had to wait for help or other form of assistance.

Thereby, causing you to not miss opportunities because you can say yes without having to check in with anyone else.

You can say yes to that job, internship, business opportunity, apartment lease, car purchase, or vacation.

Just something to think about.

INDEPENDENCE IS ATTRACTIVE

Independence, especially financial independence, is attractive.

When you are an adult, you do not have to tell anyone you are one.

They can see it in your actions.

Are you out at the bar every night? Or are you at home, working on that new app your developing to earn enough money for a down payment on a house?

Do you spend with reckless abandon? Or are you cognizant of what you are spending, and where your money is going?

People are drawn to confident people. It is an attractive quality. They say like attracts like.

Nothing exudes confidence like someone who is in control of their money and time.

Are you looking for a partner? If so, ask yourself what qualities are you looking for in one.

For instance, do you want someone who buys everything in three’s, likes to lease cars, and maxes out their credit cards every month?

If the answer is no, then you may want to make sure you are not doing any of those things as well.

Everyone wants to date up, but they forget that they too need to get themselves together in order to attract someone worthy of their time and vice versa.

When you are independent, people want to be around you. You attract jobs, opportunities, people, and money when you have your own.

GENERATIONAL WEALTH INTERFERENCE

The New York Times has reported that 40% f people in their early 20s receive financial assistance from their parents.

Parents are paying for everything from rent to car insurance.

According to CNBC, this is what parents are paying for.

The problem with this is that every dollar that parents give their children, is money that is not working for them in building their financial house and keeping it secure.

If parents have the money to give their children for a down payment or college education, then I am all for it. By all means, help the kids out.

However, what many kids may or may not know is that Mom and Dad cannot afford some of these expenses.

It is one thing to help someone with a one-time expense, like a down payment on a home.

It is another thing entirely to help pay someone’s rent or mortgage every month with no end or deadline in sight.

Many baby boomers are going into retirement unprepared. Therefore, they usually do not have the funds to give the kids or grand-kids because they need that money themselves.

How do I know? Well, I ask people. And many have said that their are finances precarious and funds are limited. Many give until it hurts. However, it not just hurts them, but also their heirs.

The Sandwich Generation is a generation of people who care for their aging parents while supporting their own children.

By not taking or limiting financial help from parents, it limits the help you may need to give your own parents when you are raising your kids.

Let me share with you this story for some perspective.

I read an article about a man who decided to become writer. While he did pretty well for himself, the family still struggled financially.

This is what happened during the course of their lives:

  • His wife quit working and became a stay at home mom
  • Their daughters were given the option to go to the private colleges of their choice, even though the family could not truly afford it
  • His father helped them pay for college for the kids; thereby, making him forfeit any future inheritance for him or his children for the sake of present conveniences
  • They also paid for their two daughters weddings out-of-pocket, with empty pockets
  • His wife has been out of the workforce so long she is unable to find reasonably paid work
  • He works 7 days a week
  • They have no savings and NO RETIREMENT

From the example above, you can see how paying for present pleasure or not planning for expenses can harm you and your family down the line.

This is scary stuff. Their inability to say no and set firm limits on what they were willing to spend has caused long-term consequences. They may have to rely on their children for financial assistance in their old age as opposed to passing on wealth.

I urge you to reconsider.

Let this post be your wake up call.  A call to arms, if you will. A call to financial arms. To arm yourself with financial knowledge, so that nothing can stop you from working toward your goals and building a solid financial future; independently.

Budgeting, Saving, Wealth

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SLASH EXPENSES

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

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

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

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

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

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

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

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

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

GO TO COLLEGE

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

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

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

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

LEARN A TRADE

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

Having a skill can earn you some serious bread.

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

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

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

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

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

OPEN A ROTH IRA

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

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

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

PAY DOWN YOUR DEBTS

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

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

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

LIVE ON CASH

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

SET UP AUTOMATIC PAYMENTS

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

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

DELEGATE TIME-SUCKING TASKS

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

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

RENT OUT YOUR HOME

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

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

FORGO VICES

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

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

SUMMING IT UP

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

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

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

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

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