Debt is like any other trap, easy enough to get into, but hard enough to get out of. –Josh Billings
That’s right. Avoid debt like the plague. Well there you go. The secret to building wealth is wide open. Cat’s out.
I will give you some great insight here. You cannot go bankrupt if you are debt free. When you owe $0, then you are truly free my friends.
Nothing puts people in a financial fiasco quicker than leverage.
Debt, we’ve learned, is the match that lights the fire of every crisis. Every crisis has its own set of villains – pick your favorite: bankers, regulators, central bankers, politicians, overzealous consumers, credit rating agencies – but all require one similar ingredient to create a true crisis: too much leverage. – Andrew Ross Sorkin
Let me provide you with some cautionary tales. They are truly scary. So please avert the kids eyes when you are reading this.
Okay, here it goes. I am no Chaucer, but I will do my best to make this plot jump right out to you. Hopefully it will inspire you to action. Please be forewarned. STAY. AWAY. FROM. DEBT. It has the ability to turn happy people into bitter human beings. People are more likely to tell you about their political, romantic, or extracurricular actives than they are the amount of credit card debt they are in.
Cautionary tale numero uno: Adrian Peterson. According to CNBC, NFL star Adrian Peterson made close to $100 million but apparently can’t pay his debts. The star running back is in court against a McAdoo, Pennsylvania-based creditor over failure to pay a $5.2 million loan. With interest and legal fees, the sum claimed is about $6.6 million.
He currently owes a total of $10 million in debt obligations, but recently signed an NFL contract for a two-year extension for $5 million.
Now I’m no mathematician, but if I subtract 10 from 5 that would equal 5. Meaning he is $5 million dollars short of being able to pay what he owes. This does not include any other cost of living expenses he has. In addition, Mr. Peterson is in his twilight years.
Just investing 1 percent of his $100 million in earnings, $1 million, could have netted him another cool million in investment returns if he earned 8 percent. That is without catching another pass, running an interception, or even showing up for work. He LITERALLY would have only had to keep breathing to make that money.
Losing $100 million is my worst nightmare. This is one of the worst horror tales I have ever read and that is because this is reality: Pure fact and not fiction.
Cautionary tale numerodos: Pamela Anderson. One of the most recognizable female celebrities in the world as she has graced the covers of hundreds of magazines including having the distinction of being the most photographed Playboy Playmate 1989-2016, with a record 14 Playboy magazine covers.
She too had a run in with Mister Debt. At one point, she was in $1 million of debt due to housing costs. She stated at the time that it happened to a lot of people in Hollywood. Although, she stated that she is now okay, she did state that was a very stressful couple of years.
My suggestion is this: stay away from buying huge homes. Mansions costs tons of money to upkeep.
For example, a $3.6 million-dollar mansion will likely cost you $100,000 annually for maintenance, utilities, property taxes and upkeep. Over 10 years, you would have paid $1 million dollars just to have a place to put those $500 Manolo’s.
Let’s think for a second. A $90 million-dollar mansion in Beverly Hills could cost you $2.5 million annually. Over a decade that is $25 million dollars! I am starting to see how people like Charlie Sheen, who famously once earned over $1 million per episode of Two and a half men, could end up in court stating he is in dire financial straits less than 10 years later. With expenses like these, who can save! I am also starting to see how Nicolas Cage ended up owing $6.2 million to the IRS! My last tale will surely leave you shaking in your financial boots (hopefully paid for with cash).
Cautionary tale numerodos:Johnny Depp. After earning $20 million-dollar paychecks with Pirates of the Caribbean (Disney fired him from this role in 2019), and estimated lifetime career earnings of $650 million, it was revealed that Captain Jack had a spending and debt problem.
According to CNBC, this is what Mr. Depp spent every month:
$30,000 on wine
$300,000 on staff, including 40 full-time employees
$150,000 on security for himself and his family
$200,000 for a private jet
You could support small countries on what he is spending!
For $30,000 a month on wine, it better heal the sick, make the blind see again, and wash away all sins!
This last fiscal tale truly has me quaking in my paid for running shoes.
In every story I have ever heard or read, people built their wealth by living on less than they earn.
That is how I was able to pay off $50,000 of debt and then begin saving and investing over 40 percent of my income. I did it by earning and saving one dollar at a time.
Ditch the plastic and embrace cash my friends. It seems the folks in Hollywood all have humongous mortgages that are handcuffing their wallets and keeping their financials in a tailspin. Please do the opposite and keep low fixed expenses. Thank you for listening. I’ll be here all week.
An investment in knowledge pays the best interest. – Benjamin Franklin
It has been so long that I had almost forgotten this gem of a film released by Disney in 2004 called National Treasure starring Nicolas Cage. He plays a historian, Benjamin Franklin Gates, on the hunt for a fabled national treasure hidden in America that was told as a secret to one of his ancestors in 1832 by Charles Carroll. The secret was the first clue (the secret lies with Charlotte) to the treasure and this is where the story begins.
After finding the first clue, it then leads to another, this time it’s to an invisible map the Declaration of Independence, which was signed on July 4, 1776. And here begins the adventure and the life lessons.
GET A GOOD EDUCATION
After hearing the secret of the treasure from his grandfather, Gates goes on to become an expert in history as he recites historical facts, data, and events in American history with ease throughout the film. It was also at one point stated that he had various degrees from top colleges such as Georgetown and Brown University.
His educational and historical prowess is evident during the film to be quite extensive. This makes him very important to those who want the knowledge he has. His education and skills also helps him get out of all types of jams and sticky situations in the film. His expertise in literature, culture, science and history also drives the movie forward as he informs the audience of how he plans his next move why and with what tools he needs to succeed. His street smarts and brains are what keeps him alive. I learned from this that the value of a good education is priceless.
SHARE RESOURCES AND KNOWLEDGE
Gates is constantly figuring out his next move and is usually one step ahead of everyone else. However, he always shares what he knows. This allows people to put faith and trust in him, which was necessary for his success.
At one point in the film, he does not know something, but his comrade does (Justin Bartha). This enables them to keep moving toward their goal. Therefore, it goes to show that knowing is not enough, but you must also apply and at times ask for help. Shared knowledge brings more gains that keeping it to yourself.
CARE FOR OTHERS
Throughout the film, he makes sure to ask the woman (Diane Kruger) he is with if she is hurt or hungry. He tells people to be careful and to watch their step. He does all he can to keep his father out of trouble or in any harm’s way. He also shows great respect and that he cares for the people around him. They, in turn, watch out for and care for him.
Gates kept good people and characters around him. He surrounded himself with capable people. If you ever saw the film The Fast and the Furious: Tokyo Drift, there is a scene when Han says he needs good people and character around him. He also said you make decisions and you don’t look back. Words of wisdom to live by. It’s gems like that people need to hear.
A LITTLE COMMON SENSE GOES A LONG WAY
In the film, while they are on their way from Washington, DC to Philadelphia, Gates says they need to buy new clothes to look less conspicuous. His companions agree, but one states they have no money. He then tells them that he has taken a book off his father’s shelf called Common Sense, which was written by Thomas Paine during the Revolutionary War in 1776. Paine is also famous for writing the American Crisis and this sentence: THESE are the times that try men’s souls.
Inside the book, there is money. Gates says his father usually tucks away a small stash of hundreds in there. Bravo, how very smart of his father. They say hide it in the books, as that is the last place most people will look, if you are trying to keep something hidden.
I learned here that even small amounts of money can you help out, if you are in a pinch. And remember cash is king. People can turn you down for credit, but people welcome cash with open arms. In one scene, a sales girl was hesitant to give back a hundred dollar bill he paid the clothes with, but conceded when he offered something of value in exchange. And he just wanted to borrow it to look at the back of the bill! Do not ever downplay the power of cold, hard cash.
THE STATUS QUO
Later in the film, Gates is in a bind. The bad guys (Sean Bean) find him and use his friends and leverage to do their bidding. He is reminded that their usefulness exists in keeping the status quo. One the bad guys get what they need, then they are no longer useful. Therefore, they do all they can to keep the state of affairs ever in their favor. Much like the motto of The Hunger Games: May the odds be ever in your favour. This film starred Jennifer Lawrence as Katniss Everdeen. And the motto was said repeatedly by Effie Trinket (played by Elizabeth Banks). Trust me, you will need them to be as no one wants the odds stacked against them.
If you can, your goal is to always have a strategic plan to win. One of the greatest military leaders of all time, Napoleon Bonaparte, was well aware of battle strategy. During his time, he dethroned the king and queen (Marie Antoinette) of France during the French Revolution. His goal was to be emperor himself. However, short of funds he decided to sell the French controlled territory in America, known as the Louisiana Purchase in 1803. Although, the United States could have said no, they decided to get the funds together in order to double the size of the country. The U.S. paid $15 million dollars and would go on to eventually have enough territories to create seven, and later, 15 states. I learned when opportunity knocks, answer the door.
PAY ATTENTION TO YOUR SURROUNDINGS
At various times within the film, he assesses the situation and surroundings to get out of numerous scrapes. Every time he was in some sort of trouble or missing a piece of the puzzle, he with the help of his companions figured a way out or an answer to a clue. Paying attention to your surroundings and telling the truth can help keep you safe. For example,
He knew that a ship was buried in the artic based on climate change and where to look for it
Saw that a barrel was being safeguarded by a deceased ship captain
Solved various riddles and clues throughout the film
Was aware of a smuggling cargo hold in an old ship
Noticed an incomplete coin collection in the office of a would be ally and used this information to get on this person’s good side and lower her defenses
Saw an opportunity to get access to the Declaration due to a 70th anniversary party advertised at the Smithsonian
Bought a duplicate Declaration just in case of any trouble as a way to safety precaution
Knew to watch for signs of activity from afar and to then park blocks away from his father’s house for fear of being followed
Bought new clothes to appear less conspicuous
Separated the map (lock) from the glasses (key)
When in federal custody he told the truth and received goodwill treatment
Recovered items that were clues and kept them in his possession (which would come in handy later)
Avoided danger at all costs
Delegating tasks such as asking a young boy to access the Silence Dogood letters written by Benjamin Franklin to avoid detection from the FBI
Always left little to no trace of his existence when plotting schemes such as putting the brick back where he found it
Did not knowingly try to put anyone in harm’s way and avoided loss of life
Knowing that when spelunking in caves that the explorers would create second opening in case of cave ins or other danger as a means of escape
Recognizing that using the clue piece was how to open a secret door (the secret lies with Charlotte, literally)
ALWAYS HAVE A PLAN
When the bad guys need more help as their knowledge is not as vast as Gates, they then turn to him for assistance. This kept the ball in Gates court and the status quo on his side because he knew things they didn’t know. Once it was evident that he was the one in control, he exploited this opportunity and used it to his advantage to win. I learned that in life you need to acquire knowledge and skills, keep learning, apply what you know, be useful, and always have a goal or plan for success.
FORGIVENESS
Once they are abandoned and left by the henchmen, they then look for a way out. Thinking it is the route to the treasure. When it is not, they are thoroughly disappointed. Gates, very thoughtfully, apologizes to this friends. They forgive him.
This reminded me of an old saying I heard: To err is human, to forgive is divine. This saying is from “An Essay on Criticism,” Part II, 1711 by English poet Alexander Pope.
GIVE IT TO THE PEOPLE
It is not enough to have abundance, if there is no one to share it with. Too much should not be held by one person. The founding fathers believed the same thing about government: Give it to the people.
When Gates had the opportunity to give, he did so. He decided to give the wealth he had from the knowledge he had gained to the people. Therefore, there is no common good to be had by being miserly, stingy, or hoarding. Give what you have and give freely without looking for anything in return. Earn what is yours, keep what you need, and then give the rest away.
WHAT IS LIFE WITHOUT A LITTLE WHIMSY
You will notice in the film certain times when they are playful or funny. Although, they were in serious situations, they still made time to laugh now and then. One of my favorite scenes is when he covertly and illegally goes into the room for the Declaration and once he walks in, points to the camera as his friend looks on. This was funny because it signaled to his friend that his plan could be done and that as serious as things were he could still keep it lighthearted. Sometimes, in life you just have to smile or laugh at yourself.
It’s like Sheldon Cooper said, on The Big Bang Theory, after he decided to to drink hot chocolate in months with an R in them: “What’s life without a little whimsy.” Indeed. Not very much fun.
HARD WORK = REWARD$
By the end of the film, Gates turns down a 10% finder’s fee. Instead, he requests only a 1% fee for his services. His friend is upset by this. However, you will see what that 1% has gotten them.
Although, it took him 30 years, he was able to reap the benefits and rewards for all of his acquired knowledge and hard work. He also garnered the respect of his peers, family, friends, and colleagues.
From this I learned that nothing can replace hard work. You have to give it everything you have because success takes no less than everything you’ve got. You must believe in yourself, even when nobody else does. Prove people wrong. Work for what you want. Do the right thing as it is its own reward. However, that reward may take years. But do not give up. The journey is more satisfying than winning.
