The world is in love with credit cards. – Warren Buffet
I’ve heard it so many times before.
Your favorite sports team is coming to town. You have wanted to go see them play live for years, but you don’t want the nosebleed seats. You want to be close to where the action is.
So close that you can almost touch your favorite player and shake their hands or pat them on the back while their names are announced as they come out of the tunnel.
This year you have decided to treat yourself and will go see your team play.
However, tickets aren’t cheap.
After reviewing information on ESPN.com, you will see that watching James Harden dunk on LeBron James comes at a hefty price.
The average ticket in the NBA now costs $51.02, according to the Team Marketing Report, which monitors the business of sports leagues. Add charges for food, drinks and parking, and that cost rises to $72.53 per person.
And if you want to sit front row, the range for a courtside seat in the NBA is generally anywhere from $300-$20,000 just from a quick price check on Ticketmaster.
Since almost everything in America costs more than the federal minimum wage of $7.25 that millions of low-wage workers are earning; Americans are turning to plastic to fund clothing, doctor fees, college, medical bills, furniture, cars, excursions, and jewelry. You name it, then folks are dropping down their American Express to make a purchase faster than The Rock can put out another film!
The problem with that is pretty obvious. You don’t have the money to go to the game so you put it on plastic instead. This can have serious consequences down the line. If you are unable to pay off the balance, now you have to pay interest on this purchase.
With the average credit card interest rate hovering around 18 percent, you could end up paying double or triple the cost of this little excursion to go see the LA Lakers play at Staples Center over the next several years!
In the book American Plastic, the author stated she saw consumers going into debt to pay for cosmetic surgery, which could cost you $7,000 for one procedure. Putting many Americans further behind in their wealth building.
The book Credit Card Nation by economist Robert D. Manning, published in 2000, provides a comprehensive overview of a social and economic crisis going on in America-escalating dependence on credit. The deregulation of financial services in 1980 paved the wave for Americans to become dependent on credit cards.
According to CNBC and USA Today, the average credit card debt in Americans held is approximately $6,200. And Alaska topped the 50 United States with the most credit card debt at $8,026. This is also the state that gives all its residents annual checks from its rich oil supply. Just something to chew on right there.
Meanwhile, the average credit card debt is now becoming a major wealth killer. Those households with it and more likely to have lower 401(k) balances, less in savings and investments, and less home equity.
Billionaire investor Warren Buffet says you should avoid using credit cards like a piggybank; it doesn’t work because a piggybank is filled with cash and credit cards are not cash. Credit cards funnel all your cash that should be used for wealth building into the banks coffers. Banks are now making a billion dollars a month thanks to easy credit access!
The credit card love affair usually ends in trail of past due bills.
Once the minimum payment (usually a paltry one percent of the balance) becomes unmanageable, you can get into serious trouble. Instead of making minimum payments are paying interest, you should be earning it instead in Mr. Market.
The one percent you are paying could be going to your retirement accounts or toward the down-payment of a home. How important is once percent really? It is enough that if you subtract that amount from the expense ratio of a mutual fund, then that one percent difference can be enough to fund 10 years of retirement. Very important in my book.
Forget credit card debt. Go max out that 401(k) at $19,500 annually and/or a Roth IRA at $6,000 per year and $7,000 if you are 50 and over.
This will of course take discipline, but so what. If you are willing to fork over $10,000 for season tickets to see the San Francisco 49’s play, why can’t you put away $100 a month for your future?
Maxing out a 401(k) over 20 years with a 9 percent return would net you 1,087,408.34. Don’t let credit card debt take this away.
The most sophisticated people I know – inside they are all
children. – Jim Henson
If you ever saw the film Willy Wonka and the Chocolate Factory, then you know how much people love chocolate. And it can be a goldmine business or chocolate mine depending on how you look at it. 😉 People were losing their minds to get that golden ticket.
Chocolate Mania had swept the nation! 😂
It was pure marketing genius. They even commented on that in
the film. Wonka was making a mint selling those chocolate bars. It’s all about
marketing folks!
It’s sort of like Patron. They don’t have the best tequila;
they just have the best marketing. Get that money.
Just look at all the money the candy business makes! Billions!
Here are some of the top chocolate companies in the world.
They may have even helped spread the let’s have candy at every event or holiday cheer. If not, I am sure they somehow found a way to cultivate and capitalize on Halloween and even Christmas.
Who says you need a box of chocolate on Valentines?!!! Most people don’t even eat most of it. That box of chocolates is still bought and paid for!
If you ever saw the film Legally Blond, you actually saw her do what most do with a box of variously filled chocolates. That’s right. She took a bite and put it BACK in the box!
Reese Witherspoon in Legally Blond
Mondelez International Inc. even tried to cash in on this
love of chocolate. However, they have officially abandoned its pursuit of
Hershey Co., which would have created the biggest confectionery conglomerate in
the world.
Now that you have some background on the business of
chocolate, let’s get down to money affairs.
Back in 1990, the movie, The Witches, based on the 1983 children’s novel of the same title by Roald Dahl, was released in theaters. The movie premiered on 25 May 1990, in London and was scheduled to open the same day in the United States, but was delayed until August.
Sadly, it would be Muppet and Fraggle Rock creator, Jim Henson’s last film.
As in the original novel, the story features evil witches who masquerade as ordinary women and hurt children. However, a boy and his grandmother need to find a way to foil and destroy them.
The witches decide they will open up, get this, chocolate
shops to lure poor unsuspecting children.
This is where the story begins.
GUARDIANS OF THE MILKY WAY GALAXY
While on vacation in Norway, eight-year-old American boy
Luke Eveshim is warned about the witches, female demons with a boundless hatred
for children and various methods of destroying or transforming them.
Helga, Luke’s Grandmother, becomes his legal guardian after
the passing of his parents. They move to England. His grandmother is advised to
take a vacation for a summer by the sea for fresh air after discovering she has
diabetes.
Also staying at the hotel are a convention of witches, masquerading as the Royal Society for the Prevention of Cruelty to Children, with the Grand High Witch, the all-powerful leader of the world’s witches, attending their annual meeting under the name Eva Ernst (played by Academy Award Winner Angelica Houston).
Really? They have some nerve naming their coven the
Prevention of Cruelty to children. Hiding in plain sight like that, but open to
interpretation. Yes, indeed.
Let us examine the fact that Luke had a grandmother that not
only decided to raise him, but has the financial means to take a vacation by
the sea.
I have it on good authority that if you try to rent a house
on Virginia Beach for a week it can set you back $5,000!
I wouldn’t mind paying that if I had investments like
interest earned from stocks or royalties to pay for it.
If you have $25,000, you could earn over 2 percent in a high
yield savings account. That’s the ish I’m talking about right there. Making
money for breathing. That is the equivalent of doing a part-time gig and
earning $500 a year.
I find the idea of earning money just for having a pulse so sexy. I find that It’s like Beyoncé says in her song Rocket. Shhh. Just listen. To the words. Hell yeah, you the sh*t That’s why you’re my equivalent So sexy! Haha
Inside a ballroom where the witches hold their meeting, Luke
spies upon them as the Grand High Witch unveils her latest creation: a magic
potion to turn children into mice, which they will use on confectionery
products in sweet shops and candy stores to be opened using money provided by
her.
They know how to make their vision a reality.
You have to chart a course and follow that path to where you want to go. What path? You just point to the top and go! That’s what I learned from Dwayne “The Rock” Johnson 😉
I have also learned that when you own something to hold onto
it.
It doesn’t matter of it is a taco stand, food truck, or blog. If you own 100%, then it’s yours to do with as you wish. Hold on to as much equity and ownership in your company as possible. I learned that from Shark Tank’s Daymond John. Like McDonald’s does to its hamburgers, keep grinding.
And try to be cash heavy. Meaning stay away from debt. I learned that from Warren Buffet. 😉 They say his company Berkshire Hathaway aims to keep $1 billion or more in cash to snap up businesses and be able to make quick decisions when buying stocks.
In addition, they say Apple does the same. The world’s first
EVER $1 trillion-dollar company keeps billions in cash.
Therefore, you should do the same and follow in their example. ALWAYS have cash reserves. NO EXCUSES!!!
Like Mr. Money Mustache once said, “Salads and barbells every day, no goddamned excuses!!!”
WE ALL WANT TO BE ROYALS
And I don’t mean Prince William and Kate Middleton.
I mean getting royalty checks in the mail.
I saw an article in which Don McLean owns only 2 stocks:
Google and Amazon.
I also recently read that Don McLean continues to receive
royalties off his music he wrote almost 50 years ago. Yes, this artist still
makes $300,000 per year from something he created in 1971.
In the article by Sovereign Man, it retells McLean’s story.
Early spring in 1971 when an obscure American folk singer
wrote a song that would change his life forever.
Sitting at a café in Saratoga Springs, New York, Don McLean
scribbled the lyrics to a long ballad about an experience he had as a
13-year-old boy.
It began with a radio bulletin that said that Buddy Holly
had died in a plane crash. In 1959, when this happened they called it the day
the music died. The boy was crushed. But the man used this emotion to write a
song that would take the world by storm.
Of course, that song was “American Pie.”
It stayed atop the Billboard music charts for more than a
year. And it turned this once obscure folk singer into a global sensation.
Ah yes, the power of the pen.
More than that – McLean was immediately set for life: he
still makes more than $300,000 a year from that song.
Imagine getting paid hundreds of thousands of dollars a year
for something you did in 1971!
That is what stocks can do for you! That is why we must
invest. Unless you can write the next hit song for Beyoncé, you must invest in
the stock market to make money on your money. You already earned it and now
your money works for you and this is your equivalent to getting royalties.
This story holds the key to one of the greatest business
models ever invented: the idea that you can create something once and get paid
on it for life.
“The idea is not to live forever, it is to create
something that will.” – Andy Warhol
It’s the royalty business. That’s right. I did the work like
20 years ago. Now cut the check!
In case you’re not familiar with the term, a royalty is a
cash payment that you receive over and over again from an asset that you created,
developed, or own.
For example, songwriters collect a royalty every time a song
they write is played, purchased, downloaded or streamed. Some more than others.
That is why Taylor Swift was mad at Apple iTunes for giving away artists music, such as herself, for free for three months!
That’s why McLean still makes money from American Pie. You
have to pay to play. Music that is. In this case anyway.
Royalties are also common in natural resources. Royalty companies
often provide financing to oil and mining companies… and those borrowers pay a
royalty on every ounce of gold or gallon of oil that the land produces.
Authors earn a royalty every time somebody buys their book. Inventors receive royalties from their patents. Why do you think Beyoncé trademarked Blue Ivy, Taylor Swift trademarked Swiftmas, and Cardi B is trying to trademark OKrrrrrrr?!!!
The powerful cashflow of this model can be incredibly
appealing to investors, and there are even some companies that specialize in
acquiring assets that produce royalty income.
Therefore, if you are good at something, don’t give it away
for free.
Even though I am a HUGE Marvel comics fan, I actually got
the last comment mentioned above from DC Comics The Joker. 😉
It’s still true though. You have to admit.
If I could, I would tap dance on Twitter, if they paid me.
Me and my lipstick confessions charge a premium for the
really good stuff.
I would hand draw or smack lipstick stickers 💋on Kylie Jenner’s lip kits if she paid me $400.
Joan Rivers wrote jokes for days. She once said jokingly, that she would, “write for Hitler for $500.”
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.
I'm always asked "What's the secret to success?". The secret is, there is no secret. Be humble, hungry and the hardest worker in the room.
