I’m a lot like Cardi Bin that song Money and I like it because like her, Now I like dollars, I like diamonds! However, in order to fund that lifestyle you have to have money in the bank.
I want deep-pockets; therefore, I avoid debt, save and invest.
And between you and me, I can’t stand debt. That’s no secret if you have been reading my blog. It just weighs you down.
I figured out a way to make myself feel better about paying off debt. I tend to use the debt-snowball method. I like small wins. And you should too, if it helps you continue to work on paying off your debt over several years, which can be 2-5 years.
The debt–snowball method is a debt reduction strategy, whereby one who owes on more than one account pays off the accounts starting with the smallest balances first, while paying the minimum payment on larger debts. You typically use this method when paying off revolving credit card debt.
Dave Ramsey discusses this and the debt avalanche, paying off debt with highest interest rate first, both are good methods of paying off debt.
But my favorite is the debt-snowball method. This strategy is where you pay off debt in order of smallest to largest, gaining momentum as you knock out each balance.
When the smallest debt is paid in full, you roll the money you were paying on that debt into the next smallest balance. You get a chance to celebrate your hard work by knocking out small debts and slowly working your way toward paying them all off.
For example, I have done the following:
Paying off my payday loan in the early 2000’s, I wrote the final check for $333.
Paying off my car note in 2009, once it got down to under $2,000, I wrote the final check for $1,500 and paid that sucker off!
Paying off my personal loan for $20,000, once I got down to the end, I wrote the final check for $3,500.
Paying off my credit card I got in 2005, once I got it down under $15,000, I wrote the final check (electronic) payment for $14,745, so then I could continue to live my best life.
I did this by saving up my money, paying the minimums on all my accounts until I saved up a certain dollar amount and then I wrote big fat checks to pay off what I owe. I like to pay in lump sums and pay off huge chunks of debt at a time. It makes me feel better. I call it the debt-chunk method. I like to see big results.
I got this idea from reading personal finance blogs like Millennial Money and books like I Will Teach You To Be Rich and Set For Life. In addition to studying the self-made. I combined my knowledge of reading about the money habits of Grammy-winner John Legend and Millennial Money founder Grant Sabatier.
Basically, I combined two different philosophies on saving and debt.
From John Legend I learned that once you have money in your hand you should pay off your debt IMMEDIATELY. If you have the full amount, then pay it all off. Thereby, paying off debt in huge chunks!
From Millennial Money I learned to save huge amounts of money over time by making small increases in may savings rate. I also make sure to take other good advice as well.
For instance, over the years, I have learned to listen to the following:
My partner Charlie says there is only three ways a smart person can go broke: liquor, ladies and leverage – Warren Buffett
Find ways to advertise for less or free. Leverage what you know by thinking outside the box. – Daymond John, The Power Of Broke
Find ways to start or build a business for less, cheaper alternatives out there or for $0 to start. – Zac Bissonnette, Debt Free U
There has never been a time when reading a book has not helped me. Work 10X harder, get 10X the results. – Grant Cardone, The 10X Rule
Work out. Have Discipline. Save and invest your money. I started in real estate and built wealth that allowed me to devote more time to the things I wanted to do. – Arnold Schwarzenegger
Try to save $5 a day. And increase your savings by 1% a month or more. Network. I bought coffee for those I wanted to learn from every week! – Grant Sabatier, Millennial Money
Save $25,000 to stop living paycheck-to-paycheck. Spend more on fun not less. Spend money on the things you care about and cut spending on the things you don’t. – Scott Trench. Set For Life, Bigger Pockets podcast
Spend extravagantly on the things you love, and cut costs mercilessly on the things you don’t. – Ramit Sethi
Focus your energy on the big wins!
If you can cut your housing and car costs, your stand a chance to save $500 or more per month. That is a nice amount to start stashing away in your 401k.
Cutting out $5 lattes and couponing alone are not going to get you to amassing a fortune. But first, before you do anything, you must save!
It is far easier to control and cut your spending than it is to go out and earn more.
Besides, the more you make the more Uncle Sam takes! I am all for people earning more money, but it will make no difference if you spend every last dime.
Therefore, start focusing on slashing expenses, cutting costs, saving an emergency fund (for big expenses), a rainy day fund (for short-term expenses i.e. a flat tire) and paying off ALL YOUR DEBT!!! Doing those five things can start you on the path from broke millennial to millionaire.
And that is because all millionaires know you get there by saving $10 bucks at a time. – Mr. Money Mustache
Therefore, if you want to get rich, just start by saving $10 bucks at a time.
Why the difference? Because women earn on average $0.80 for every dollar a man earns.
Therefore, men have to save less and women have to save more in order to reach the same goal of fill in the blank $ dollar amount here.
WHY IS SAVING SO CRUCIAL?
No one can arrive from being talented alone, work transforms
talent into genius. – Anna Pavlov
All wealth building starts with saving.
Don’t let anyone tell you any different.
Sure you may have to invest and diversify your money such as investing in stocks, real estate, and bonds, but you have to save money FIRST before you can buy or invest in anything.
If you have ever read a Jane Austen or Charles Dickens novel, then you know the theme always comes around to money.
Considering that Jane Austen never married and Charles Dickens grew up in a poor house, it is not surprising that the authors chose to hone in on this topic.
The sorted topic of coin. Both authors are British and in that society they have a class system.
You are either born into wealth and inherit it or you must
work for many years and earn your fortune.
Many of the landed gentry lived off of their land. Profits that were made from owning land was how they made a living.
That monthly sum could be the difference between prosperity
and being locked away in poor houses, which were a form of jail for the poor.
Here in America, we do not have a class system of royalty, nobility, tradesmen, shop keepers and owners, or farmers.
However, we do have a social ranking and social class. Those are the haves and the have nots.
If you want to find yourself in the realm of having, then
you best start saving money for your future today.
Many years ago, I was laughed at for my paltry savings
amount of 9% per year.
Now I am saving over 40% of my income.
No one laughs at me now.
HOW SAVING MONEY CAN MAKE YOU HEALTHIER
They say wealth equals health. And that is an understatement
if I ever heard one.
Having money allows you to pay for all of your needs.
This includes doctor visits, healthy food, and medicine.
Eating well not only affects your waistline, but also your
brain functions.
It is said that children that do not get the proper rest,
nutrition or eat breakfast before school perform lower on tests and have harder
times concentrating.
Success depends in a very large measure upon individual
initiative and exertion, and cannot be achieved except by a dint of hard work. –
Anna Pavlov, Prima Ballerina
When you have the means to pay your bills, eat, and work in
good health; then you are fortunate indeed to be able to pay your own way.
Being able to afford your monthly nut just makes you happier
overall.
You are protected from the pitfalls of many of life’s
hiccups.
You can get just as much pleasure saving as you can from spending.
I seem just as happy being able to have the ability to
afford items than am to actually purchase them.
It is a great feeling to payoff debt. Every check you write frees you from obligation to lenders. Then your money can stop serving THEM and start serving YOU.
Make a goal to write down evet single bill you have and
person you owe.
I started doing this and tackling every debt I had one by
one.
Once I paid of my car, I owed $30,000 and my personal loan,
I owed $20,000, then things started really taking off from there.
I was able to take these monthly payments, $450 and $333
respectively, and start investing that money. Now that money works for me in
the stock market.
Here is one stock I recommend: VFINX or VFIAX. (You can also invest in the VTSAX or any equivalent)
Portfolio composition of VFIAX
Month-end 10 largest holdings (22.40% of total net assets) as of 03/31/2019
1
Microsoft Corp.
2
Apple Inc.
3
Amazon.com Inc.
4
Alphabet Inc.
5
Facebook Inc.
6
Berkshire Hathaway Inc.
7
Johnson & Johnson
8
Exxon Mobil Corp.
9
JPMorgan Chase & Co.
10
Visa Inc.
Whatever you do just make sure you not just SPEND money but SAVE money.
Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver. -Ayn Rand
Many of you out there I am sure have heard of Bigger
Pockets. It is the place to be for anyone interested in Real Estate (RE).
Basically, they are the Facebook of Real Estate.
Bigger Pockets (BP) is the real estate social network. You
can find out all types of things such as how to finance rental properties, find
property management companies, and how to invest in real estate.
While on my journey to learn ALL THINGS MONEY, I came across an interesting post called House Hacking.
For readers of my blog, you know I am a fan of Millennial Money (MM). Grant Sabatier is the money genius behind that site and because I was a fan of his is how I came to learn about Bigger Pockets. I learned so much from Grant that I wrote a blog post about how he inspired me to save more money.
It was on his website that I read about House Hacking, which is when you live in one of the multiple units of your investment property as your primary residence, and have renters from the other units pay your mortgage and expenses.
Like I stated on my last post, one of the biggest expenses
in any budget is housing. The trifecta of expenses is housing, food, and
transportation. If you can cut your expenses in this area, you are g2g (Good to
Go). 😉
It just so happened that he did an interview with Scott Trench
from Bigger Pockets. I am not the best when it comes to listening to podcasts,
as I prefer to read books! However, the podcast is transcribed so I read
through that. Great idea there Grant. The transcription was so good that I
listened to the podcast and just like that a fan of BP was born.
That is what made me decide to pick up the book How to
Invest in Real Estate from Bigger Pockets authored by Josh Dorkin and Brandon
Turner.
I just so happened to post a tweet and saw FINCON ask what books am I reading? So I answered and tagged the authors of the book. To my surprise, Josh Dorkin replied to my tweet and said thank you for reading and asked if I would post a review on Amazon.
Since he was polite in asking for this small request, I not only did the Amazon review (still pending as of this writing), but I also decided to review the book on my site. They say ask and you shall receive. So, I gave him a 2-for-1 and posted a review and did this blog post. One tweet did all of that.
So, without further ado…
How to Invest in Real Estate: The Ultimate Beginner’s Guide to Getting Started
THE #1 QUESTION
The reason Brandon and Josh wrote this book was to help
people. One of the most asked questions they get is, “How Do I Get Started
in Real Estate Investing?”
Well, guess what? They say ask and you shall receive, right?
Then Brandon and Josh answered.
They wrote this guide to help people along their way.
Although, the Bigger Pockets forum and blog is filled with tons of information,
it can be overwhelming. Where do you begin?
This book packs many of the interviews they do on the podcast and brings it together in one place as a reference guide.
WHAT WILL YOU LEARN
The guide contains eight chapters but my three favorites are: Chapters 1, 4, and 7.
The book will show you the following:
How to get started in Real Estate?
How to invest with no money, bad credit, and
with a full-time job?
Why you should save cash reserves?
What is an LLC? Do you even need one?
Real Estate Niches (as the riches are in niches)
😉
12 Ways to Finance your Real Estate Deals
Real Estate Exit Strategies
I think the reason people choose to invest in RE is not only
to get rich (obviously), but to have more financial control over their lives.
In addition, real estate is tangible. Unlike stocks, bonds, and CD’s you can drive by and visit with your investment. Have a cup of coffee in it. Heck, you can even live in it!
THE REAL WORLD OF INVESTING
Remember the television show “The Real World” on MTV. Well,
that was a lot of fiction and made up drama for ratings. This book provided
insight directly from RE investors with real world experience.
One of my favorite stories actually came from Chad Carson of the Coach Carson blog site. Chad decided the go big or go home route to RE was the best route for him. His niche was house flipping.
He tested this hypothesis and decided to change courses. Instead
of trying to flip 50 properties, he then decided to do less for the sake of his
sanity. This method worked.
This taught me that flipping is NOTHING like the television shows portray. We are getting the Campbell Soup version (condensed). I need the 💯 real.
You must find out what works for you. Although, you can
learn from the mistakes of others, usually trial and error will show you the
way. Fail fast, early, and hard. Then you can start to profit from your
knowledge and experience.
The book is filled with tons of stories. I just shared one.
If you want to learn more about Real Estate, then hop on over to Bigger Pockets. You can also look up some real estate blogs and books. Just like I did with this one.
Have you recently wrote a book? Are you looking for a review? Do you want to be Greenback’d? Tweet me. I’ll be here @mjp2520
“No. I can survive well enough on my own— if given the proper reading material.” ― Sarah J. Maas, Throne of Glass
Where do I begin?
Let’s start here. The cost of college.
College is expensive. According to the College Board, the average cost of a 4-year in-state public university hovers around $9,970, at private colleges $34,740, and $25,620 for out-of-state residents attending public universities.
Many folks don’t just have $10,000-$30,000 sitting around in their bank accounts.
According to numerous reports, many Americans do not even have $400 for an emergency. How the heck are they going to come up with 10 times that amount or more for college?
I, myself, had to become an extremely massive saver in order to stop living paycheck-to-paycheck.
This required me to become very frugal and find ways to earn more, cut spending, or both from my household budget.
Most of my problem was the revolving credit card debt I had. So, I had to come up with a plan to get it paid off. Every time I paid off one debt, I started saving that money.
What I really noticed about college besides just the price was that many of the things we’re learning came from equally expensive textbooks. Couldn’t I have saved tons of money by just skipping college and reading the textbook instead? Literally, all I would have needed is the syllabus of the course.
I went on Amazon to see books about the cost of college being worth it. It is right? Well, maybe.
The point I am trying to make with this article is to examine the following:
Challenge the conventional wisdom that college will solve all your problems
Going to college will make you rich
Prestige is to be pursued at all and any cost
THE COST OF COLLEGE
It has been well-documented that college is coasting more and more every year.
The amount of student loan debt in the United States alone stands a $1.5 trillion.
I cannot even wrap my head around that number. Basically, it means that many people are either going to be paying back their loans for a long time or will not ever be able to repay them. That is a sad fact indeed.
We are mortgaging our young people’s future.
Many are unable to buy homes, start families, get married, and put down roots.
The cost of college is especially hard to manage for those that are of low-income. The issues of poverty do not stop with a college acceptance letter.
We are starting to create a reality in where the poor inherit their parents’ poverty while the rich hoard opportunities for their kids.
That glass floor is real. When poor kids are getting 1200 to 1600 SAT scores and pulling hard A’s but still unable to graduate, while trust fund babies are barely pulling soft C’s is just ridiculous. That means, a rich kid can get a college degree simply because their parents have wealth, income, and resources.
I have heard stories of low-income college students dropping out for owing less than $1,000 to get their degree. Frankly, this saddens and alarms me.
And I am not buying avocado toast at $10, according to one politician, who will remain nameless.
The cost of a Bachelor’s (BA/BS) degree is just too darn expensive. The worst part is that an education is not an equalizer. Just because you went to Harvard doesn’t mean you are going to get the corner office. That fancy C-Suite is the carrot being dangled in front of all those Ivy League hopefuls.
Many do not make it there.
Don’t believe me.
Check this out.
When I looked up books on colleges, admissions, and the Ivy League online, I found the following titles:
Excellent Sheep
Nudge
No Sucker Left Behind
Where you go is not who’ll you be
The Chosen: The Hidden History of Admission at Harvard, Yale, and Princeton
The Price of Privilege
Paying for the party
Pedigree Elite: How Elite Students Get Elite Jobs
The Blessing of the B Minus
Academically Adrift
Winners Take All
Generation Debt: How Our Future Was Sold Out for Student Loans, Bad Jobs, No Benefits, and Tax Cuts for Rich Geezers–And How to Fight Back
Equity and Excellence in American Higher Education
How to Raise an Adult
iGen: Today’s super connected kids are growing up Less Rebellious, More Tolerant, Less Happy – And completely unprepared for Adulthood
I have read a few of the books listed above. Many are eye-opening recounts of their experiences with elitism, the Ivy League, college admissions, debt, student loans, finances, etc. Paying high prices, as much as $100 an hour for instruction, for college, taking on tons of debt and then receiving low starting salaries.
Stagnant wages and student loans are a dangerous cocktail.
The one book that still haunts me is No Sucker Left Behind. In this book, he describes college as a rip-off as he feels that colleges are involved in price-gauging schemes. Colleges, in his opinion, have become profit-obsessed businesses with an approach that is more reserved for used car salesman.
There are some Ivy Leaguer’s that become Corporate America rock stars. However, the majority go on to careers in the same type of jobs that those that do not go to top tier colleges.
COLLEGE EARNINGS
You think the Ivy League is the only way to go. Well, think again.
You hear all the time that a college degree means higher earnings, like $1 million more in income over a working lifetime. What you do not hear are the tales of people paying $100,000 for that sheepskin and then getting a $35,000 starting salary right out of college.
He looked up profiles of people that went to Elite Schools.
Mostly more of the same from elites: people chasing money.
Surprise, surprise many end up in investment banking and consulting. If places like Harvard are the playgrounds of the rich, then places like investment banks are close behind. The Elite School graduate sandlots.
I have come to believe that you should pursue what is in your heart and your God given talent. Whatever that may be. God does not give anyone anything he doesn’t want them to use. Sacrificing doing any less than your best is to sacrifice the gift. Figure out what you are good at and then pursue that! The money tends to follow.
Some studies have followed, like the one above, people who attended Ivy League schools and others accepted to those schools but who chose lower ranked schools instead. The result: There wasn’t a difference in lifetime earnings. In other words, Ivy League caliber people don’t need an Ivy League education to have high earnings.
WHY FOUR YEARS OF COLLEGE?
Remember that $100 an hour for instruction that I previously stated? Due to that, the real cost of college is costing some students $100,000 a year, according to the book No Sucker Left Behind. So, that is what part of the reasoning behind four years is. Collecting the tuition and fees.
The BA/BS degree takes no less than 120 credits to complete.
Why is this?
Should we not question this? I get it. You do not want a doctor that is immature performing surgery on you. However, I value work ethic and experience over age.
Why not have a degree take 48 credits to complete?
How we would do this is to cut out all the unnecessary courses one needs to graduate. Forget the gen eds and endless electives. Stick to what we need to graduate.
A college degree should be done as quickly as possible so that people can get out there and work. Most families do not have 4 years to let junior go off and explore. They need him out there working and bringing home the bacon today!
I read an online forum called college confidential where it asked why is college in America so long. Great question. Here are some of the responses. This is how it went down.
Why is it that it takes so long to get a professional degree in the US?
In order to study Optometry or Medicine or Dentistry etc you need to do 4 years in college first, not even 1 or 2 years but 4 years whereas in the UK the 16-18 education is enough to prepare you for it.
People may want to start/support a family and at the same time pursue their passion but the length of study is off putting.
Answers were the following:
Gen eds.
The US is looking for mature people to be their doctors and lawyers, not a 21 year old whose frontal lobe is not yet fully developed.
If you have many AP/IB credits, you can get your degree in 3 years, too.
I would not want my doctor/dentist to have had only 1 year of formal education.
It’s a business. The more classes one is required to take, the more money the school makes.
What I suggest is that colleges get straight to teaching you all you need to know in your field. This would cut down on the time and expense of school.
And as for those who say people need to mature. Sure, I’m all for that, but how many people know 30 year-olds that are still wet behind the ears? Lots.
If you want people to mature, put them to work. Nothing makes people grow up faster than responsibility and accountability.
If maturity is really an issue, then have people start in at the bottom.
Nothing beats entitlement out of you like taking orders, scrubbing toilets, and fetching coffee.
Make people work their way up. After college, they could apprentice and work while learning their jobs. Get paid to train and work instead of paying for more training. It is just that simple.
I think college should allow student s to do an intensive 8 months and 48 credits
You would take 4 three-credit classes every 8 weeks. This would mean doing 4 eight-week semesters instead of 8 three-month ones. You would earn 12 credits every 2 months.
A college schedule could be like this:
Year One. English, Economics, major, major.
Year Two. Economics, Science, major, major.
Year Three. History, Math, major, major.
Year Four. Economics, major, major, major.
You see what I did there. I focused on the major and getting people out of college. That should be the point of college, right?
Why the focus on finance? Other than the fact Greenbacks Magnet is a financial blog, it just makes sense to teach people about money as they have to manage it for their whole lives.
After 8 months, you earn 48 credits and graduate. That took less than one year. It also saves you heaps of money. If four years costs you $40,000, then 8 months should run you $6,667. That is huge savings!
I was gobsmacked to hear of doctors owing $300,000 to $1 million in student loan debt. Do you know what type of interest you pay on that kind of debt? It’s immoral.
Interest of 5% on $1,000,000 is $50k a year. That means after income taxes you have to pay $50,000 just to pay the interest on this debt. To service this type of debt, you would have to pay more than $50,000 a year just to touch the principal.
I remember reading one lawyer say that he expected to have that student loan bill tacked to his coffin.
Just utterly insane!
PRESTIGE AND CLASS
I read a book called Class Matters by the New York Times and Bill Keller. The book discusses how people chase money and prestige. Class determines everything about you: where you live, who you marry, what you do to earn a living, where you shop, and who your friends are.
The zip code you grow up in can ultimately make or break you.
In the book, it discusses how Americans have long thought of themselves as unburdened by class distinctions. There is no hereditary aristocracy or landed gentry, and even the poorest among us feel that they can become rich through education, hard work, or sheer gumption. And yet social class remains a powerful force in American life.
Class―defined as a combination of income, education, wealth, and occupation―influences destiny in a society that likes to think of itself as a land of opportunity.
What was jaw-dropping was this part of the book: And we see how class disparities manifest themselves at the doctor’s office and at the marriage altar.
For anyone concerned about the future of the American dream, Class Matters is truly essential reading. I agree with that assessment given to the book.
THE CREDENTIAL RACE
Grades are important. Sort of. Those getting straight A’s have to conform. Visionaries are not conformists. A New York Times (NYT) article quoted Dr. Karen Arnold as saying, “Valedictorians aren’t likely to be the future’s visionaries.”
The NYT article also noted the following:
This might explain why Steve Jobs finished high school with a 2.65 G.P.A., J.K. Rowling graduated from the University of Exeter with roughly a C average, and the Rev. Dr. Martin Luther King Jr. got only one A in his four years at Morehouse.
THE REAL GRADUATION RATE
Did you know that the average graduation rate is 6 years?
Roughly 57% of students graduate in 6 years. Only 20% of American students graduate in 4 years.
Most students are not even graduating in the already exceedingly long period of 4 years’ time.
According to Complete College America, for a non-flagship public university, only 19% of students graduate on time and even at flagship research public universities, the on-time graduation rate is only 36%. Only 50 of the more than 580 public four-year institutions have graduation rates above 50%.
According to 2013 data from the University of Texas at Austin, students who graduate on time will spend 40% less than those who graduate in six years.
That means more time out of the work force and more debt.
According to Forbes, staying out of debt and saving are the best ways to build wealth.
WHY SHOULD COLLEGE BE 8 MONTHS?
Why can’t you do your 10-year plan in 6 months? – Peter Thiel, angel investor of Facebook
I whittle it down to this one reason: No student loans or a lesser amount of them.
Building wealth requires you staying away from and out of debt.
They say student loans are good debt.
I say that all debt is debt. You must repay it. Not having to pay back $20,000 or more of debt with interest is life changing.
If you want to be wealthy, stay away from debt. Save every penny. Learn to turn every dollar into two.
“Before you speak, listen. Before you write, think. Before
you spend, earn. Before you invest, investigate. Before you criticize, wait.
Before you pray, forgive. Before you quit, try. Before you retire, save. Before
you die, give.” — William A. Ward
That’s right folks. Step right up. Don’t be shy.
I’m about to simplify your life. Your financial life anyway. A one-tweet financial plan is the way to go.
You see that quote at the start of this blog post.
There, I just gave it to you in the quote stated above. The
end.
Just kidding. But seriously, it is in the quote above. I will just expand upon it.
Warning this post is full of tweets! But lots of information. Stay with me! 😉
WHAT IS A ONE-TWEET FINANCIAL PLAN?
A financial plan that is 240 characters or less and can be sent out in a tweet.
"Whenever I make a decision, I always try to decide: Would I do this for $1?" – David Blaine @davidblaine
I know what you’re thinking. Yeah, right. Well, since seeing
is believing I will show you exactly what I mean.
Here is my one-tweet financial plan.
My 1-tweet financial plan
1. Have a 2-month emergency fund 2. Open a Roth IRA 3. Buy a home for 25% less than you can afford 4. Pay off student, personal, and auto loans ASAP 5. Max out your 401(k)
And due to the recent government shutdown, I have also created a one-tweet financial plan government shutdown edition. 😉 It’s kind of like how they created the Scrabble game deluxe. You take an already good thing and then just expand upon it and make it even better.
My 1-tweet financial plan government #shutdown edition. 😉
1. Save a 9-month emergency fund 2. Instead of maxing Roth IRA use extra funds for your rainy day fund 3. Do not get any student loans 4. Do not buy a new car, home, or go on vacation until rainy day acct 100% funded pic.twitter.com/Xmslbml3qC
I also like to think ahead to the future and plan for my taxes. You need to save today because the future gets more expensive. What costs a $1 today will cost $1.25 in the future. Plan ahead.
The committee’s analysis also found that Americans earning $75,000 a year or less would also face large tax increases by 2027 because of the Senate’s plan to allow individual tax cuts to expire at the end of 2025.
At the heart of the argument is new analysis by congressional number crunchers that finds the plan cuts taxes at first but by 2027 actually raises taxes for anyone making less than $75,000.
Courage is never giving up. Love that its spelled out here using letters from my favorite game: Scrabble. So never give up on your dreams. https://t.co/b7dQUUpZSZ
It is one of the best qualities you can have. Being a good listener can lead to lasting marriages, better employment, and happier relationships.
Fincon18 lessons: 1. Do not challenge @dreamer_money to a dance-off. 2. Take whatever advice @mjp2520 gives you. 3. Anonymous blogging is only annoying when trying to organize a group photo. 4. If you're too shy to approach people, challenging them to tic tac toe is 1 way to go
I started reading about personal finance and attending
seminars or conferences long before I started writing and tweeting about it.
Coming from a place of experience and information gives you a different point
of view (POV). That POV can make you an expert in your field. Never
underestimate the power of just listening and observing.
THINK
I want you to write down your goals, thoughts, wants, needs, and desires. Like I said before, seeing is believing. Think before you act.
My mission, should I choose to accept it, is to be financially independent.
There is nothing wrong with moving slowly or with caution. However, that does not give you the right to move like a turtle. First, think. Then act and move expeditiously once a decision has been made. Move quick. Make haste. Do not overthink it. This can lead to analysis paralysis.
Be careful not to overwhelm yourself, and only follow advice from credible sources, so you don’t fall victim to progress paralysis or unsuitable and potentially dangerous investments.
Moving slowly does allow you to more clearly see the path
ahead. But once you see it, I want you to run toward your goal. Not walk. RUN!
EARN
You have to earn money to save it. It is just that simple.
I was in debt up to my eyeballs. However, I did not toss my hands in the air and say who cares as I will be in debt forever. Nope. Not me. I chipped away at my debt. Then, I slowly started to have savings. I emerged from the debt cocoon I was in and became a soon to be debt-free butterfly.
All the reasons I want you to pursue financial indepence.
1. Freedom 2-100 see number one
That is the answer always, in the illustrious words of #buzzlightyear To infinity and beyond. 😂
I found ways to get rid of my debt. By any means necessary.
It didn’t matter if I had to sell items, save my change, get 0% deals on every
item I purchased, or stop buying chewing gum just to save a buck.
Once the debt started going away, I had tons of disposable income. Go figure.
I got inspired by @johnlegend to start paying off all my credit card debt from a book by @KSchwarzenegger. thank you. My 🙏 were answered because I needed some inspiration to payoff my debt. Money advice I got from John Legend https://t.co/jZmr1PMgew
I cannot stress this enough. Investing can be the difference between you being one of the haves or have nots. I hate to break it to you, but the top earners invest.
Investing is a long game.
I read the wealthy invest up to 20 percent or more of their income each and every year.
"On average, millionaires invest 20% of their household income each year. Their wealth isn't measured by the amount they make each year, but by how they've saved and invested over time," writes Ramit Sethi in his New York Times bestseller, "I Will Teach You To Be Rich."
The 1 percent are making a killing in the stock market. And you can too.
When I decided I was going to be rich, I turned my attention
toward investing. If you want to know where Greenbacks Magnet is investing,
then check out my post below. 😉
May I recommend the books The Millionaire Next Door, The Automatic Millionaire, and Prince Charming Isn't Coming by Barbara Stanny to add to your growing list 😉
According to Grant Cardone, CEO’s read 60 books and attend 6 conferences a year. The average person reads less than one book a year. I read that in the 10X Rule.
Read the 10x rule. Took his advice. Set 10x goals and do 10x more action. It worked. Many thanks! Went from saving $10 to $10k a year. #OBSESSED
I agree. I got like 11 books on my nightstand right now. Reading taught me how to say no to things and people. Money has to be respected and not just squandered. When I say no I tell people its not personal, it's just business. pic.twitter.com/wBARNSbLJ9
You know all those overnight success stories you hear? Well, those are garbage. It takes years of hard work, persistence, determination and sacrifice to get anywhere worth going.
According to the book The Millionaire Next Door, 80-86% of millionaires in America are self-made. Most wealth is earned. Meaning less than 20% inherit their wealth. This is down from a high of 50% or more who did so around the early 1900’s.
All those bands you hear about or people you see on television. They were honing their craft long before records executives starting signing them to deals.
Gene Simmons said he was going from gig to gig in an old van living off hot dogs with his bandmates in KISS.
Don’t be like Beetlejuice. Remember that scene in the movie where he took his number and was impatient. It was hilarious. One of Michael Keaton’s most memorable roles.
The point is that you have to be patient. I do not mean wait forever. I just mean that all good things do take some amount of time.
Don’t be so quick to judge or criticize others, before you know the full story.
“I praise loudly. I blame softly.” – Catherine II, Catherine the Great
FORGIVE
They say it’s divine.
“Always forgive your enemies; nothing annoys them so much.” – Oscar Wilde
And I make sure to forgive. I always forgive, once.
Investing is the ability to research, seek answers, make decisions & being patient. You may make mistakes but forgive yourself & move on. pic.twitter.com/BlJl4Smv26
Don’t be a quitter. Try first. You will never know if you
have got the goods to make it, unless you get out there and do it. Do
something. Don’t just wait to be discovered. Get out there and meet people.
Shake some hands. Knock down some doors. Make some phone calls. Just try.
SAVE
This one thing can change your life. Saving. It is the start of all things to come. The act alone is a reflection of who you are and what you value.
This is how I started, but on an even smaller scale. It took me six years, but I went from saving $1 a day to over $11,000 a year. NEVER give up on your goals. https://t.co/KK1UBABCLx
I read it is good to have 25 times your salary in life insurance. This is to protect your loved ones. At the very least I say 10 times. Just a suggestion. That means for 25x your income, if you make: $20k = $500,000 $40k = $1 million $50k = $1.25 million Are you insured enough?
Dealerships are offering 84 month car loans! Thats 7 years! Forget that. Do you know what you can do in 7 years? 1. Graduate college (twice) 2. Get married 3. Write the next great American novel 4. Learn a new language 5. Start a business 6. Watch all 13 seasons of #Supernatural
You give as a way to reach back and help those that come after you. It is a way to show your gratitude for all the things those that came before you have done.
There was a time there was no stock market. Or anesthesia. 😮
Let’s take a little walk down Wall Street.
The NYSE celebrated its 200th anniversary in 1992. Wall Street started under a tree in 1792 with commodities.
The Dow Jones Industrial Average (DJIA) was founded in 1896 with only 12 industrial stocks. Those 12 companies: American Cotton Oil, American Sugar, American Tobacco, Chicago Gas, Distilling & Cattle Feeding, General Electric, Laclede Gas, National Lead, North American, Tennessee Coal and Iron, U.S. Leather and U.S. Rubber.
My how things have changed. None of those stocks are now part of the DJIA.
The good thing about indexes is that unlike individual stocks, when things go south and a business performs badly or goes under, it is culled. That’s right. They remove it from the DJIA and replace it with another business. Usually one that is performing well. That is the reason you invest in indexes. For the protection against a business going out of business and you losing your shirt!
General Electric (GE) is the only member of the Dow Jones Industrial Average that has been in the index since it’s beginning in 1896. It is being taken out and replaced by Walgreens (WBA) as reported of July 2018. That’s a 122-year run.
— Naresh Nambisan | നരേഷ് (@nareshbahrain) July 19, 2018
They have made it easier for you to invest now than 100
years ago.
Dale Carnegie had to ask his mother to mortgage the house so that he could invest the funds in stocks that he knew. That was how he built his fortune. Remember to invest in what you know. Earn a fortune and then give it away.
Giving is one of the best ways to be philanthropic.
Remember that part in the movie Troy where Achilles asks his mother if he should go to Troy. And she says to him only if he wants his name to be remembered and live on throughout the ages.
Giving is a way to have immortality.
Case in point, Ms. Oseola McCarty inspired many others to donate to charity as well after she donated her life savings of $150,000 to a college in 1995. How’s that for a swan song? One of the biggest donors she inspired: Media Magnate and Mogul Ted Turner.
So why is it even noteworthy when Oseola McCarty, an elderly woman, donates $150,000 to the University of Southern Mississippi? In the case of Ms. McCarty, it is the heart behind the gift, and the lifetime of effort that went into it. For her act of kindness, she was awarded the Medal of Freedom, the highest civilian honor and got to ring the stock market opening bell.
How about that for recognition in helping others? And she asked nothing for herself or in return. These things were given to her for her charitable contribution to society.
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.”
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.
“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.”
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.
“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.”
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.
Fun Fact: Did you know @jayleno started his career making minimum wage at McDonald’s? Here are 5 things the self-made millionaire did that catapulted him to success: via @CNBCMakeIthttps://t.co/Y7ewRMHNXV
“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.
“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.
![How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started by [Turner, Brandon, Dorkin, Joshua]](https://i0.wp.com/images-na.ssl-images-amazon.com/images/I/41ZwqwL8NWL.jpg?w=474&ssl=1)
