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Entrepreneurship, Financial Freedom, Financial Independence, Real Estate, Wealth

Finance Lessons from Flipping Vegas

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“There are only the pursued, the pursuing, the busy and the tired.” ― F. Scott Fitzgerald, The Great Gatsby

For many people out there I am sure you have heard of shows like Flip this or Sell that house.  Many of them are broadcast on A&E. One of these gems was a show called Flipping Vegas.

The show starred real estate investor Scott Yancey and his interior designer wife, Amie Yancey. What made this show stand out was the outrageous personality of its star, Scott Yancey. He could regularly be seen losing his mind over the tiniest of overages to his immensely short time table he gave to flip any house. It made for great television. I felt it was the funniest of all the house flipping shows out there.

Scott would regularly drive around in his Porsche (he loves cars) and go from house to house that he had invested in to inspect properties. His wife, Amie, could usually be found at places like Walker Zanger to purchase materials for all of the homes they were flipping. The couple were constantly bickering about house design, location, and finances. They were a riot.

What I remember most is that Scott was always very concerned about the budget as where Aime was not. She believed that a well-designed home sold itself. However, Scott did not always agree. He would regularly have a fit if she spent extra money or over-improved a house. It was hilarious.

“When you have a foreclosure sign on the house, it’s saying, ‘Vandals, homeless: Welcome. Please strip it,’ ” Scott told The Las Vegas Review-Journal of the properties he purchases. “We’re in a race to get it done and get it sold.”

So, without further ado, I give you what it’s like to flip Vegas.

WHAT IS FLIPPING VEGAS?

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“The houses that are the worst to buy are the ones we save for TV because we know there’s a great storyline with it.” – Scott Yancey

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Flipping Vegas was an American reality television series that aired in the United States on the A&E network for 5 seasons from June 18, 2011 – September 27, 2014. Featuring the husband and wife team, Scott and Aime Yancey. The couple would fix and flip homes in Las Vegas, Nevada. It aired on Saturdays. And ran for 41 episodes.

Meet the real estate players

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Scott and Aime

Vegas was hit hard by the housing crash of 2007-2009. Where most saw disaster, Scott saw opportunity. He would buy low-priced and dilapidated homes in Vegas, fix and flip them quick for a profit.

Setting a quick timetable of about 4 weeks and even shorter budgets of approximately $10,000. A quick fix schedule and low budget is called flipping. Spend less money equals more or maximum profit. His opposite is Aime, who buys high-end finishes that are not in the budget, without telling Scott. Let the fights over the checkbook begin.

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Here is some of the banter on this show.

Real estate agent: Can you all this done in a week? It’s a lot to do?

Scott: I turn and burn these suckers!

Aime: Scott, you’re so cheap.

Scott: Once again you are unconcerned with deadlines and bottom lines.

Aime: Give the house a great design.

Scott: This house is an ugly girl. Put lipstick on her, we’re not giving it plastic surgery.

That’s Scott, always keeping it classy. He works hard and lives his life fast. He likes quick wins and flips. I’ll give him this, at least he always kept it real.

In an interview with the Vegas Sun, Aime said, “I mean, I feel like I’m giving birth to each of them. I know Scott has timelines to turn them around fast, and we butt heads. He sees the bottom line, and I fall in love with the transformation. I can’t stop myself; I really need rehab for designers.”

 They generally work with the same contractors and real estate agents to sell their houses. In addition, will also have multiple trades working on one house at the same time to keep up with Scott’s insane open house schedule (think buying a home, renovating it, and putting it on the market in 7 days). And yes, there was an episode that he tried to do this.

The show got is start from a conversation Scott had with some show business friends where he recounted how he had to pull out his Glock (he’s licensed to carry) on some homeless people that came at him with needles in a boarded up house.  They recorded some footage of him (Scott paid for their expenses) at work and it got into the hands of someone at Lionsgate. That is how his reality show career got started.

Finance Lesson 101: You have to spend money to make money.

ALWAYS EXPAND

Expand. Never contract. – Grant Cardone

One of the best times to start a business is during a downturn. Scott is a businessman who owns a real estate brokerage called Goliath Company. He invests sells, and flips houses. In addition, Scott also was an executive producer of the show and an author. Reality television star is also one of his many titles.

When asked what it was like doing the show Scott stated, “It’s reality TV for a reason, but try working with your wife for 12-14 hours a day. [The producers] know our fans. They love it when I break shit, and that’s my favorite part. If I could take a bulldozer and knock out a shed, that’s great. Take a chainsaw to a wall, that’s great. Demolition is No. 1; drama is No. 2. And then education.”

The best episode I saw and my favorite was the Season 2 Episode 10 show entitled, “Yancey’s Eleven” which aired on February 16, 2013. Scott purchases 11 unfinished villas at Lake Las Vegas for a total of $380,000 and takes on the gargantuan task of getting them all fixed up at the same time.

A&E episode description(www.aetv.com): Scott takes on the biggest flip of his life having purchased 11 unfinished villas in upscale Lake Las Vegas with hopes of flipping all 11 in less than 45 days! It’s a risky gamble that could have a huge payoff…if Scott can manage to bulldoze through some unexpected and high-priced construction roadblocks.

Show me the money honey.

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The couple then began doing seminars. A no-strings attached sort of deal. It started out for free with a preview, but then morphs into a sales pitch. Over three-hours attendees are enticed to pay a $2,000 fee for a second, more intensive three-day seminar. Those who paid and made the investment in the three-day event received yet another pitch to invest in the next level that costs a whopping $30,000.

I, personally, can confirm the first part. I was invited to a Yancey seminar. I went and it was basically someone coaxing and goading you to spend money (not the Yancey’s as they were not there). Basically, it was a high-pressure sales pitch. The free part was just to get butts in the seats. The free meal was a cold sandwich, chips, and a stale cookie. Although, it sounded good, and everyone acted professional. I refused to spend money going to yet-another seminar. After that experience, I swore off all seminars for good.

They said most people did not complete the problem because there was work involved. So, they quit. Customers cry foul. That they were not properly trained. Scam???

Finance Lesson 102: If you are going to expand and ask people for money, then you better bring you’re A-game and deliver.  Better to write a book and sell it for a reasonable price, that provide the details of how you became successful then give people false hope and empty promises. A book is at least tangible.

A GOLIATH OF A TASK

‘Flipping Vegas’

“The main thing is that in TV land, they speed everything up. They [the viewers] think, ‘Oh, wow, it’s a breeze. They come in, and it’s done.’ It takes a long time to put them together, to pick out the fit and finish and work on the quality. They only see a glimpse of it.” – Amie Yancey

Scott started in real estate at a young age. He got advice from a friend to invest his $30,000 settlement from a car crash into real estate as his family was doing. Scott took the advice.

Forgoing finishing college he still found a way to make a million dollars. Even though he almost quit real estate after the downturn, overhearing a conversation between patrons made him change his mind. When he heard how little people were paying for properties in Las Vegas only to start renting them out to tenants, Scott saw a golden opportunity to profit. Why not buy at the bottom?

“At the next table, the discussion revolved around the Las Vegas real estate market and the fact that there were homes available to buy for as little as $36,000 that would rent out for $900/month. Just hearing those two numbers put Scott’s real estate brain into gear. Two things came to mind immediately, ‘You make your money on the buy in Real Estate’ and ‘fortunes are made in bad economies.'” – Scott Yancey

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His task was to buy real estate at the bottom. Things have to hit rock bottom become they come back up. You can capitalize on that. It was risky and things were rough. Like me, quotes were in Scott’s mind: “Nothing great is easy” and “Debt equals drive.” Those helped him. He had this epiphany and ran with it.

Similar to the money epiphany I had in 2017. Once I figured out a way to save more, I began to do so massively. Start where I was at and work my way up. I started by saving $50 a month and then slowing increased my savings every day or month. Now, I save over $13,000 a year and increase that number every year.

Finance Lesson 103: Best time to start a business is in an economic downturn as fortunes are made in bad economies. For instance, when the stock market crashes, that is the time to buy.

COLLEGE DROPOUT TURNED MULTI-MILLIONAIRE REAL ESTATE INVESTOR

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“I’m not a college graduate.” Scott told Vegas Seven. “I went to probably five colleges, and I dropped out of them all. I have ADD. I didn’t come from money. But you don’t need money to be a real estate investor, and that’s what I teach people. I did my first land deal on my own without any of my own money, and I netted $2.3 million. I can relate to most of the people who write to me and say, ‘I’d love to do what you’re doing. I don’t like my job, but I don’t have any money.’ Great, you don’t have to. You’re right where I started.”

Scott was hired as a real estate runner for a real estate attorney named Walther (Walt) J. Plumb III. His salary at that time was $5/hour. Walt ultimately became Scott’s mentor. He also convinced Scott to get his real estate license as his last 3 runners had all become millionaires. He ended taking his advice and making so much money in real estate, that he left college. He was making hundreds of thousands of dollars, which is a lot of money for a guy in his 20s.

He was making so much money for Walt that he decided to strike out on his own.

The $2.3-million-dollar deal allowed him to pay off all his credit cards and buy the care of his dreams, the Porsche. And put a million in the bank. He used his big payday to pay off debt. This is similar to what John Legend did.

See my post Money advice I got from John Legend

You can also regularly hear Scott complain about amateurs on his show.

In an interview with the Vegas Sun, Scott said, “but I think there are a lot of amateur-type flippers who have gotten in in the last little while, and they have short fuses because they’ve borrowed money to their properties. Scott usually pays all cash.

This is what Warren Buffet says about borrowing: “I’ve seen more people fail because of liquor and leverage – leverage being borrowed money.”

This is what I said about borrowing.

See my post Don’t take money too personal

He says, “if you don’t know what you’re doing, leave it to the professionals.”  He stills relies on him and asks his mentor for advice. Looking up the couple net worth online yields results of $5 million each.

Finance Lesson 104: You can be successful without college. However, you need to decide early and when you are young what vocation you are going to do to try and make a living.  

THINGS WILL AND ALWAYS DO CHANGE SO PREPARE

“Flipping is great at first to generate capital, but as an investor, the goal is to take your capital and invest it in rental properties. The rental properties pay you every month. Flipping, you make one payday; you’ll make $100,000 on a good flip. [Investing] that in a rental property [can} make you $5,000 a month. … It’s a lot less work to collect a rent check than to renovate a house.” – Scott Yancey

At one point, in an interview with Vegas Seven, Scott thought that the real estate market would change as it always did. In addition, that there is a false send of high-fiving.

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Most purchases are all cash deals being done by investors. Lots of flippers have left and are out of the flipping market. People are buying and holding, which should be the real estate investor’s endgame. As far as renters for his homes go, he wants good tenants that resign every year and he only takes cash as payment. He also buys near hospitals so many of his renters are ER doctors and nurses. Basically, those with steady reliable incomes and paychecks.

I hear that.

I also read a real estate investing book that said a great place to buy was near college campuses. Get those college rentals going. Not bad advice. Pretty similar to what Scott has done.  

I recently read that the government shutdown has closed up shop 4 times within the last 10 years. That is a huge problem for RE owners. Especially, if this trend keeps up and considering that furloughed contractors don’t get back pay when the government reopens.  

See my post America is the land of loans

Not surprising. A home is only an asset if it can or does feed you. You can only get access to the equity when it’s sold. The only other way to make money is to rent it out. Either by the unit, home, or room. If you want to start a profitable real estate business and become a landlord, then you better have the funds to handle downturns, bad tenants, vacancies, and repairs.

Finance Lesson 105: All businesses need capital.

You can take that piece of advice all the way to the bank.  

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Financial Freedom

Name Brand Labels or Fat Stacks? You decide

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Porsche. There is no substitute. – Tom Cruise, Risky Business

When I was growing up, I don’t remember caring about labels. It wasn’t about getting or giving expensive gifts. It was about being safe and warm.

Maybe, that is why to this day I still keep things until they fall apart because of the memories attached to them. Not to mention it’s cheaper.

Today, I have noticed a shift in kids. They are so focused on what’s on the outside that I feel that may begin to forget that it’s what’s on the inside that counts.

I know it’s cliché, but I do not want the next generation growing up thinking that they are less than because they don’t have on the expensive pair of shoes or have the hot new cell phone.  

In my opinion, the best gift you can give your kids is to not be a financial burden to them.

That means saying no to pricey things today, so that you can have the money necessary to live and enjoy life tomorrow.

MONEY DOES NOT FIX ALL THINGS

Prada and Gucci and Dior, Oh My!

That sounds like something Carrie Bradshaw would say on Sex and the City.

See my post It’s a Suit, Tie, and High Heel City for more on Sex and the City

Following the diamond bricked road can be dangerous.

However, I hear more young people taking about incredibly expensive name brands and labels than in any other point in my life.

I, myself, am a little more like Rory from Gilmore Girls.

Things are not that important to me. I am perfectly fine with a good book. My parents did not spoil us.

In fact, we were encouraged to work and be thrifty. Our parents just were not buying it. It wasn’t really about the money; it was just not needed so our parents said no.

My father would always say that you have to learn to accept no just like you accept yes.

From him, I learned not to be spoiled or to spoil children.

Spoiled kids turn into rotten adults.

When you never hear the word no, you can get very upset.

Teaching young people today to be thankful and grateful for what they have is something that will be good for them to know and use throughout the rest of their lives.

Spending money does not always equate to happiness. It can make things easier, but it does not solve every problem. And in some ways, money can cause more problems.

See my post More money more everything including problems

CHRISTMAS STOCKINGS STUFFED WITH LABELS

I had a friend recently tell me she knew someone who had a kid that asked for Gucci boots for Christmas.

How do they even know about that?

And they want the real stuff.

Got some diamonds round my neck no fugazi – Future lyrics off the Streetz Calling album

Fugazi is just another word for fake.

I looked up the price of Gucci boots. The lowest price I found was $980. I have gone on vacations for less. After tax, you are paying $1,000 for one pair of boots! Absurd.

The only teenager that deserves a $1,000 pair of Gucci boots is on stage with her two friends Kelly and Michelle.

That money could be used for books for college or starting a fund for tuition.

You have to use your dollars wisely today or you may not have them when you need them tomorrow.

DIAMONDS OR STOCKS

You could buy designer purses or expensive vacations. But those things are fleeting.

Especially, if you come back home to a stack of unopened and unpaid bills.

You are right back in the same situation before you left or bought that designer handbag. What sense does that make?

Who cares if you own a Tiffany bracelet if your rent check is late or worse yet, bounces!

Diamonds around your neck or wrist won’t keep you warm at night.

Things will not feed you, make you happy, or pay your rent.

However, having a passive income stream can.

Money that is working on your behalf is like the gift that keeps on giving.

A stock can be like a goose that lays a golden egg.

If you own a mutual fund comprised of hundreds of stocks, then you can receive dividends and interest on the money you invested.

With a return rate of 7 percent over 30 years, the following can happen to your invested money:

  • $1,000 can turn into $7,5000
  • $10,000 can turn into $75,000
  • $100,000 can turn into $750,000

And that is without adding another dime to your initial investment.

Think of how your money could grow if you added money annually.

If we add an additional $3,000 (that’s $250 a month) every year, we get the following:

  • $1,000 can turn into $300,000
  • $10,000 can turn into $400,000
  • $100,000 can turn into $1,000,000

You read that right. Start with an initial investment of $1,000. That pair of Gucci boots.

Putting away an additional $250 per month for 30 years can net you $1,000,000!

FAT STACKS ARE FAR BETTER THAN THINGS

Basically, if you could forgo pricey labels, you could save and invest your way to a fortune.

For me, that is far more exciting than having some diamonds on my wrist.

While a diamond bracelet is nice to look at and pretty to hold, a stock is something that never gets old.

I tell people all the time to get the money first, then you can buy whatever you want.

Money in the bank or sitting in a brokerage account is far more valuable that getting the latest hot gadget.

Once the novelty wears off, all you are left with is another trinket or item that sits in your house and collects dust.

I know there is no substitute for quality.

What I ask you to really consider is opportunity cost? If this item will bring you long lasting happiness and prosperity?

If not, then you should focus on doing the things that will.

I am just a blogger.

I can only advise you.

It is up to you to decide.

Automobiles, Financial Freedom, Financial Independence, Saving

How I turned a $450 car payment into $100,000

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There’s always tomorrow and it does get better. – Ariana Grande

That statement reminds me of something Scrooge McDuck says, “there’s always another rainbow.”

Nothing is permanent. All is temporary. So, stay calm and keep moving on.

I remember it like it was yesterday. The car payment had to get paid. If I paid late, I had to pay a late fee.

So, it was either be late with the phone bill or the car. I chose the car because my cell phone could wait.

I couldn’t stand making this payment after the first year. It took me 6 years to pay that car off!

My lesson was learned. A car payment isn’t worth it.

I cannot tell you how many times I had to make payment arrangement, pay a late fee, or forgo making a payment to one creditor over the other. It royally sucked!

There had to be a better way. It had to get better. And it did.

Once I got down to the last $1,500, I just paid the car off. I immediately asked for the lien and a copy of my payment history.

The last payment had been made. I no longer owed a penny on my car. I was a free woman!

That was about a decade ago.

I wanted so bad to start shopping, traveling, or just do anything with that money. But then I stopped. I remembered all the sleepless nights and the time I spent worrying over how to make my car payment.

That’s when it hit me.

Why not put that money to work? I could max out a IRA or put the additional funds into my 401(k).

So, I looked into doing just that.

WHERE TO INVEST

“If you’re saving, you’re succeeding.” ― Steve Burkholder

I did some research. The money could go into a Traditional or Roth IRA. In addition, I had the option of my company retirement account.

I chose the latter.

Then, I had to decide what brokerage account. I could go with several including Fidelity and Vanguard.

Vanguard had the lowest fees. So, I went with Vanguard.

Next, I had to decide what fund or stock to actually invest my money.

I though a mutual fund looked pretty good and went with the Vanguard 500 index fund (VFINX).

WHAT’S THE GOAL

Money can’t just sit. There has to be a plan or like idle hands, good things do not happen. Money can’t be idle. It has to be put to work. Save it, spend it, or invest it. Either way, you must choose.

“The habit of saving is itself an education; it fosters every virtue, teaches self-denial,cultivates the sense of order, trains to forethought, and so broadens the mind.” — T.T. Munger

 I had read enough about wealth building to know you need to invest your money.

But, I also needed something to aim for. A target.

That’s when I did some more research.

Then, I saw it. The first $100k is the hardest. I had my goal.

THEY SAY THE FIRST $100K IS THE HARDEST

You will find many stories written about getting to the first $100k. It seems to be this is a very important number.

Many have said once you hit that six-figure mark, you are able to build wealth from compound interest faster.

So, okay.

I just had to find a way to get to five zeroes.

What could I do? How long would it take? How can I get to $100k?!

HOW DO YOU GET TO $100K

Hitting that magic number.

Once I decided $100k was what I wanted, I had to see how I could make it happen and how long it would take.

I used an online calculator to determine my time horizon to hit the six-figure mark by investing my now retired $450 car payment. That just feels so good to say.

Before, we get to the numbers, I just want it to be known that I did think about buying a new car.

However, remembering how painful it was to write that check every month for years sobered me right up!  

“The way to stop financial joyriding is to arrest the chauffeur, not the automobile.” —Woodrow Wilson

Yes, investing was the way to go.

The calculator informed me that if I invested $450 and got a 9% return (wishful thinking as the average is about 7%), then I could hit my target of $100,000!

That money could set me on the path to financial independence.

You start earning way more compound interest at $100k.

Take a look.

Once I hit $100k, without even putting in another penny, at that same interest rate, my money would double in 8 years!

It took 10 years of investing $5,500 a year to get to $100k.

Without investing another dollar, my earlier dollars are doing all the heavy lifting and have gotten to the same $100k it took me 10 years to build in less time than that. It only took 8 years!

All this only involves my car payment.

This does not include any other invested funds.

I excluded my company match and additional funds I am investing.

This was just to show you what could be done with what you’ve already got.

Literally, by just shifting that money to your retirement account has made a huge difference in your 401(k) balance.

From there, if you continue to let it ride, this means no cash outs, you could again amass another $100k in 5 years! You could even double $200,000 to $400,000 in 8 years. That is only three more years!

Are you starting to see a pattern?

For every dollar you let sit and compound, you just grow your money without you having to do any additional work. Your money grows every  year.

Money you earned and invested over a decade is still paying you dividends!

Think about how you can also double your $200k in just another 3 years!

“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do.” — Mark Twain

I cannot press upon you any further the importance of investing money and letting it stay invested for the long term. Investing is along game. It can take 10-20 years before you see a significant increase or return on your investment.  

“Try to save something while your salary is small; it’s impossible to save after you begin to earn more.” — Jack Benny

Remember, I was able to do all this by just by investing my old car payment.

I just started small and worked my way up.

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.

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.

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.