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Financial Freedom, Wealth

America is the land of loans

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Worry is the interest paid to those who borrow trouble. – George Washington

Finance it! That should be slapped on bumper stickers across the country. 

There are now loans for just about anything you can think of. Whatever your heart desires, you can finance. Almost.

My father would say that people need to learn discipline as they want to do every whimsical little thing that comes to mind and this can cause trouble in your life.

I learned at a young age that trying to get your little hands on everything you crave is a gateway to higher levels of debt and spending.

It starts with one video game and then balloons to buying the console, accessories, new games every other week, and monthly subscriptions to gaming magazines. That quickly escalates to $1,000 iPhones, $2,000 MacBook’s and flying first class everywhere. Even if it is drivable and only a few states away.

How is all this lifestyle creep paid for?

With plastic.

After working at a federal credit union, I got the inside peek behind the financial curtain into many strangers lives.  

Some people are clinging to their middle-class status like the ones they had in their childhood upbringing, while others are dangling over the financial edge and many more have fallen over the financial precipice completely.

Financial institutions knowing this fact, as wages have been stagnating since about 1979, are all too eager to fill that gap in earnings with loans.

Let’s find out what type of debt is out there awaiting consumers that are not financially savvy enough to avoid them or are left with few alternatives to avoid them in the first place.

NO CASH, NO PROBLEM

Quick to borrow is always slow to pay. – Proverb

How many times have you heard commercials that say your job is your credit? Get real. Your credit is your credit.

Miss enough payments and that job means nothing. They will repossess anything.

I saw this up close and personal at the credit union. I saw cars getting repossessed, families stressed out and on the edge of a financial cliff, and those with bad credit had it the worst of the lot.

Is your credit score too low or in the 500’s? Forget about it. Either you will not be able to borrow or it will be at interest rates so high you will be paying off that sweater you bought for your kid’s 3rd birthday when your kid goes off to college.

Do not be fooled into thinking companies are being so nice to give you this product for low monthly payments. That low monthly payment of $42 over 24 months is still over $1,000!

If you must borrow, get those scores up. That way you pay less interest.

IS IT FOR SALE?

Of course, it is! Everything is for sale. And its pricey too.

“A business that makes nothing but money is a poor business.” – Henry Ford

They will let you subscribe to just about anything, for a fee. Much unlike this blog, which you can subscribe to for free, you have to pay for anything you deem necessary or desired for your life.

Just because it is for sale does not mean you are not shelling out big bucks for it. Case in point, if an item is on sale for 25%, then you still have to pay 75% to take the item home with you.

I say skip the for sale signs and racks and focus on only buying quality products that you need and truly want, but that you can actually afford.

BUY NOW, PAY LATER

As an individual who undertakes to live by borrowing, soon finds his original means devoured by interest, and next to no one left to borrow from – so must it be with a government. – Abraham Lincoln

This is what I feel is the old bait and switch. Sure, you can finance it now and pay later, but later is going to be a long time and it’s going to cost you…A lot.

I say avoid paying interest and forever and a day.

Read my posts on savings or get my eBook on crushing debt and saving $10,000 every single year to see how you can save and start paying cash.

LOANS FOR EVERYTHING

No one ever went broke underestimating the taste of the American public. – H. L. Mencken

Over the years, I have started noticing more and more that not only is everything for sale, but it is able to be financed.

What has been really glaring has been the new loans that have crept up and put out in the main stream for the last 10-15 years.

What loans am I talking about?

  • Holiday Loans (for Christmas Presents)
  • Vacation Loans (finance that cruise)
  • Internship Loans (finance additional training along with college tuition)
  • Summer Loans (for the gap between Fall and Spring college semester)
  • Care Credit (healthcare financing)
  • Hurricane Loans (National Disaster Loans)
  • Government Assistance Loans (Government shutdown loans)

That’s right. If you have never heard of some of these loans listed above, that is because they are not often advertised except during certain economic times or periods or places such as college campuses or certain banks.

Do you really want to finance Christmas?

You take out a loan for $1200. You have 12 months to pay it back with interest.  The time you were supposed to be saving (the previous 11 months) you were repaying this loan. That leaves you for no funds for the following Christmas. You go to the bank and they say, “we have this loan that could help you out.” Just skip it.

Better yet, have the family pull names out of a hat and just buy a gift for that one person.  Save a fortune. Your bank account will thank you.

The ones that really get me steaming are the National Disaster and Government assistance loans. People are in a vulnerable position and you want them to go into debt! More debt! Really?!!

No one plans for national disasters. You can plan your finances, but some things are not all foreseen.

For instance, some people lost their homes during the most recent hurricanes in Puerto Rico and Texas. The insurance companies were saying they had to pay a deductible to get their home rebuilt. This was to the tune of $5,000! Most people don’t just have that type of money laying around.

Borrowing will only put you deeper into debt and unable to save when an emergency like this happens.

The worst by far is government assistance loans for the government shutdown. Folks would not need a loan if they could save. Now, you want more of their money, which they don’t even have? What sense does that make.

I say focus on building up the rainy day fund so you are not caught out in the financial rain without a savings umbrella.

HOW MUCH IS THAT LEXUS IN THE WINDOW?

“A business that tries to save money by not advertising, is like a man who tries to save time by stopping his watch.” – Henry Ford

It’s all about advertising.

That’s why so many people are pulling up in Target parking lots wearing Gucci boots, carrying a Louis Vuitton purse, all the while texting on an iPhone on to buy $10 socks that are marked down and dare I say it On Sale.

See my post on Name Brand Labels

I see more folks driving luxury vehicles now than I have ever seen in my life.

What happened to just needing to get from Point A to B?

Please do not let the smell of new leather cause you to have empty pockets. No car or gadget is worth going into debt over. Or worse yet, going broke.

On one television show, I saw a mother of two young kids trying to see if she could come up with the rationale to finance a $100,000 car! Do not do that. It is not worth it.

See my post on 3 Money Lessons from Til Debt Do Us Part

JUST SIGN HERE

Sell to the masses, eat with the classes. – Henry Ford

It has been often stated, if you sell to the classes, you’ll dine with the masses. But if you’ll sell to the masses, you’ll dine with the classes.

Another spin on this quote is this one here.

Sell to the masses, eat with the classes. Sell the classes, go belly up!” – John F. Savage

It is said the majority of people rent this world from a minority of people. That is how it goes. Unless you change the status quo. Become an owner. Keep more of your money and always invest.

They make it all too easy for you to sign on the dotted line and then have to fork over 25% of your paycheck just to pay for your items.

I want to pay for the item, get it handed to me, then transaction over. Installments suck!

I say save for what you want.

Not sure where to start.

Just start small. Even saving $5 a week just to get in the habit of saving is better than doing nothing and having no savings at all.

So, please do not sign on the dotted line. Do everything you can to save. It will be your safety net should real disaster strike because when it does it’s like lightning. It usually strikes fast and more than once.

Play good defense and save. Surround your financial house with savings. Do not get tackled because you left your wallet open, figuratively speaking.

Plan your money smart and be safer financially.

Celebrities and Money, Financial Freedom, Self-Made Millionaires

How Beyoncé and Jay-Z became a $1 billion couple

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I don’t like to gamble, but if there’s one thing I’m willing to bet on, it’s myself. – Beyoncé

Hip-hop is more about attaining wealth. People respect success. They respect big. They don’t even have to like your music. If you’re big enough, people are drawn to you. – Jay-Z

The 2018 Grammy’s have come and gone. And even though Jay-Z went away empty-handed on January 28th, he is far from empty-pocketed.

Forbes listed his net worth as $810 million and Beyoncé with her own at $350 million net worth.

That’s right. Beyoncé and Jay-Z are a billion-dollar couple.

Through not only music and touring, but lucrative business dealings have made them a fortune.

Here is where it all began.

Jay-Z builds an empire

“By the time I got to record my first album, I was 26, I didn’t need pen or paper – my memory had been trained just to listen to a song, think of the words, and lay them to tape.” – Jay-Z

Back in 1996, a rising rap star named Jay-Z, who was known for memorizing lots of rhymes without writing them down, put out the album Reasonable Doubt.

It all began when Jay-Z and two others started their own record label, Roc-A-Fella Records, when the talented artist was unable to get a record deal.

It eventually went platinum. From there he would go on to record the commercially successful and critically acclaimed album Hard Knock Life in 1998.

He has not slowed down since.

Jay-Z was a business owner and rapper as he rapped for the very label he owned.

And he would eventually go on and sell the label to Def Jam.

He became a record exec who helped launch the careers of Kanye West and Rihanna. And eventually served as CEO of Def Jam Records in 2004 (a job he took to assume control of his earlier master recordings with the label).

Jay-Z signs another huge deal with Live Nation for $200 million in 2017, his second big payday with the concert promoter. The first 10-year deal was for $150 million in 2008. Through this deal he makes millions in merchandising and concert revenue.

His interests outside of music (Rocawear, and stakes in 40/40 Club and the New Jersey Nets as a sports team owner) have netted him millions more. He sold Rocawear for a reported $204 million. It was said the deal in 2007, would net him around $35 million in cash. This cash infusion would be the seed money used to fund his other business ventures.

He has sold more than 28 million albums in his 15 plus-year solo career.

He has done numerous solo tours including going out on the road in 2013 to support one of his most recent albums, Magna Carta…Holy Grail.

He purchased the streaming service Tidal for $56 million back in 2015. It is now said to be worth $600 million.

He has used his ownership of Roc-A-Fella Records and Rocawear clothing brands to build what he has today.  In 2018, he is one of the richest musicians in the world.

Beyoncé builds her own empire

“Do what you were born to do. You just have to trust yourself.” – Beyoncé Knowles

Beyoncé decided at the tender young age of five that she wanted to be a performer after going to a Michael Jackson concert.

She sang in the choir at church, at school, and everywhere. She honed her craft. Practice, practice, practice.

After appearing on star search in 1993, and later landing a record deal with her singing group in 1997 with Columbia Records, from there she would rise to fame in the late 1990s with the R&B girl group Destiny’s Child.

As a member of Destiny’s Child, she has sold 17 million albums. The group went on to sell more than 60 million albums worldwide. Their 1999 album ‘The Writings On The Wall’ sold over 15 million copies worldwide and was one of the top selling albums of 2000.

The release of her debut album Dangerously in Love, in 2003, turned her into a solo artist. From there she would go on to do films such as “Pink Panther” and Academy Award winner “Dreamgirls.”

Her 2007 tour, ‘The Beyoncé Experience’ grossed over $24 million following the release of her 2006 record B’Day, her 2nd studio album which spawned numerous hits and videos. She then followed up this tour with an even bigger one in 2009, ‘I Am… World Tour’ which grossed $119.5 million. 

She set a new record when she earned 6 Grammys in 2010 for ‘I Am… Sasha Fierce. Her 2009 single from the Sasha Fierce album ‘Single Ladies (Put a ring on it)’ was a huge success and in constant rotation on radio stations worldwide.

She has performed for presidents and as the headliner for the super bowl half-time show in 2013.

She also has multi-million dollar endorsement deals with L’Oreal, Coty (the perfume company) H&M and Target. She has also released at least three fragrances which has made $400 million in sales.

In 2012, Beyoncé inked a deal with Pepsi for a reported $50 million dollars.  

BEYONCE became the fastest-selling album in iTunes history and solidified her as one of the most powerful women in music.

She released her own documentary in 2013 ‘Life Is But A Dream,’ which she directed and produced. It was a rare inside peek behind the curtain of her personal life.

The 2016 release of Lemonade exclusively on Tidal debuted at No. 1, and became her sixth album. She is the first ever female artist to have every one of her solo albums debut at No 1.

As a solo artist, she has sold 16 million records in the U.S. alone and 100 million worldwide.

Beyoncé enjoys making video diaries with the help of her favorite item to do so which is a MacBook.

Beyoncé is a singer, dancer, songwriter, and entrepreneur who continues to tour worldwide while making money from concerts, merchandise, and albums.

Jay-Z and Beyoncé empire as a power couple

“Those who are successful overcome their fears and take action. Those who aren’t submit to their fears and live with regrets.” – Jay-Z

“And we have to teach our girls that they can reach as high as humanly possible.” –Beyoncé

They both own equity in Tidal, which is worth $600 million. That is more than 10 times what Jay-Z paid for it.

In addition, together they both own over $100 million in Real Estate holdings.

Headlining tours independently and together for the 2014 joint On The Run Tour with Beyoncé,  has netted them millions more. This tour earned well over 9 figures with a staggering over $100 million in ticket sales. Making them one of the most profitable touring and recording artists today.

Jay-Z and Beyoncé amassed their fortune from hard work, savvy business acumen, and ownership. Simply put, they own what they do.

All this combined has made them into the billion-dollar couple you see today.

Basically, to build wealth, you have to own. Whether it is a business, stocks, or real estate the money comes from owning.

Side note: Jay-Z is a 21-time Grammy winner and Beyoncé is a 22-time winner. Just in case you were wondering.