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.
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.
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.
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.
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.
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.
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.
