Tag Archives: Sheldon Cooper

Celebrities and Money, Fictional characters Cartoons and Money, Financial Freedom, Financial Independence, Investing, Wealth

Why You Should Always Trust But Verify

Gallery 3 Comments
Trust, Faith, Encouragement, Trust

“All the world is made of faith, and trust, and pixie dust.”
― J.M. Barrie, Peter Pan

Trust is a five-letter word. A word that is small in size, but whose meaning is of monumental importance.

Today on Greenbacks Magnet we are spilling the tea and reading the tea leaves on the topic of personal finance.

Somewhat like Jalen and Jacoby do on their podcast.

This is a no-holds barred conversation about getting your fiscal house in order.

If I had a podcast right now, I have several friends or family members that could be my partner on this magic carpet ride. Aladdin had Princess Jasmine. Jordan had Scottie Pippen. Keenan had Kel. Barack has Michelle. Oprah has Gayle. Key had Peele. Batman has Robin. Kermit the Frog has Miss Piggy. Jalen has Jacoby.

Having a partner just makes things more fun.

I ask my significant other all the time, “Are you gonna back me up?! Are you gonna be the pip to my Gladys?!” I need people with good character that I can trust around me.

Image result for gladys knight and the pips GIF"

It’s like my man Shakespeare says, “Love all, trust a few, do wrong to none.” ― William Shakespeare, All’s Well That Ends Well

Trusting people with your money comes with huge financial risks! And I notice it is more risk than reward. You have to be on top of things when it comes to your money.

So today, I am going to give you some real stories of private conversations I have been in, eavesdropped on, and stood witness to in hopes it might help you more easily navigate these hostile fiscal waters out here in these mean streets.

I’m doing it Jalen Rose and David Jacoby style for those of you ESPN fans out there, you know what I’m talking about.

I want you to trust my advice, and me but I also want you to verify it.

Image result for trust but verify gif"

Let’s get started and dive right in.

In the spirit of Jalen and Jacoby:

Got to give the people…

Give the people what?

What they want!

What do they want?

Current events! They want you to spit that hot fire!

And in this blogs case FIRE is Financial Independence, Retire Early!

TRUST, BUT VERIFY

That is a famous quote uttered by former President Ronald Reagan during the Cold War.

He was a former Hollywood actor turned politician, which was unheard of at the time in 1981. My how times have changed.

Reagan also gave us Reaganomics, also known as Voodoo Economics, it works as crazy as it sounds. Voodoo (magic) is French in origin and hails from Louisiana around the 1700’s, which is before the Louisiana Purchase between the United States and France, negotiated by President Thomas Jefferson and Napoleon in 1803.

Therefore, the term Voodoo Economics simply means magic economics or finances (magic money).

There goes that Peter Pan quote I put at the top circling back to us as magic money is like pixie dust! It just doesn’t exist! In my mind, this is like creating money or great finances out of thin air.

Image result for tinkerbell wand gif"

It’s kind of how 50 Cent said he owed $8 million worth of Bitcoin when he owed nothing and created $8 million of wealth for himself in the eyes of his followers on Instagram because we are all just, and I roll my eyes as I type this, “living for the Gram.” I discuss fifty and the Gram on this post.

According to Psychologytoday.com, Reaganomics is this in that “the simple answer: when the outcome is essential and matters more than the relationship, use “trust, but verify.” When the relationship matters more than any single outcome, don’t use it.” Basically, if you are unsure of how to proceed in making a decision where the outcome can be life-changing, then do your research to uncover the facts before saying yes.

In my opinion, that means reviewing credit reports before walking down the aisle.

Image result for walking down the aisle gif"

Why should I commit to someone with four felonies, two bankruptcies, a property lien and $50,000 of back taxes owed to the IRS without knowing what I am getting myself into. You would be surprised what you uncover with a simple credit report.

A woman has a right to say no or change her mind about marriage all the way until the time she is in front of the minister. It’s cool to trust your partner when they say they paid off that Neiman Marcus credit card, but request that copy of the credit report baby to verify.

WHAT IS REAGANOMICS?

Image result for voodoo economics gif"

Reaganomics, or Reaganism, refers to the economic policies promoted by U.S. President Ronald Reagan during the 1980s.

The economic policies of the former US president Ronald Reagan, associated especially with the reduction of taxes and the promotion of unrestricted free-market activity. “the claim that cutting taxes generates more revenue was a key element of Reaganomics”

When looking up Voodoo Economics this pops up in the search: an economic policy perceived as being unrealistic and ill-advised, in particular a policy of maintaining or increasing levels of public spending while reducing taxation. “as governor, he put into practice the same voodoo economics that he would later impose on the country as president”

I will give it to you in layman’s terms, give more to the rich and their gains of money and benefits should also find it’s way down to everyone else.

It’s the reverse of Robinhood’s theory of taking from the rich and giving to the poor, by instead giving to the rich. There you have it. I just gave you the premise of Trickle-down Economics.

Image result for robin hood coin gif"

WHAT IS TRICKLE-DOWN ECONOMICS?

Great question. Trickle-down economics, also called trickle-down theory, refers to the economic proposition that taxes on businesses and the wealthy in society should be reduced as a means to stimulate business investment in the short term and benefit society at large in the long term. 

According to thebalance.com writer Kimberly Amadeo, Trickle–down economics is a theory that claims benefits for the wealthy trickle down to everyone else. These benefits are tax cuts on businesses, high-income earners, capital gains, and dividends. … All of this expansion will trickle down to workers. 

I don’t know about that.

When I look to my left on the West Coast, I see massive homelessness.

When I look to my right on the East Coast, I see wage stagnation.

Taxes got cut, but people are in even more debt. When the top 10% of the richest American households own 84% of the stock market wealth in the country something is terribly askew.

I call gentle bullshit on all this record stock market gains that is causing the country to grow wealth for all.

It seems more that instead of lifting all boats to prosperity for 99% of the population, stocks are lifting a few yachts of the 1%.

In the illustrious words of Sheldon Cooper, pardon me, I mean Dr. Cooper, this is a bunch of hokum. I mean the term even has the word trick in it. Hello?

WHEN IN ROME, TAKE OUT MORE DEBT

I have seen stuff you would not believe people have done when it comes to their money.

I saw a couple of government workers deciding to take on an $800,000 mortgage. Don’t ask me why. After 30 years of payments, they will have paid $1.6 million for a pile of bricks they are never at because they are always at work. Then the husband loses his job and they lose the house!

If you do not have $1.6 million in retirement or other assets, then you cannot afford or should not buy a home for three-quarters of a million.

Since, many college students see their friends take out loans to fund spring break trips they feel they are entitled to do it too! I actually knew someone who got a boob job and paid off a car with a student loan refund.

I hear tons of people say they are never going to retire, can’t afford college, and will work forever but no one wants to downsize their $400,000 mortgage. If they want it, they get it. How you ask? Do what the neighbors did and take out a HELOC.

A FLY ON THE FISCAL WALL

I’m about to spill that tea so don’t blink or you might miss it!

Overheard around an office watercooler.

“I owe $100,000 in back property taxes to the IRS.”

Overheard at the nail salon.

“I bought a $700 Gucci belt.”

Heard it from a friend.

“My daughter wants a pair of Gucci boots.”

Come on now. I have said it before. The only teenager that deserves a pair of Gucci boots is on stage with her two friends Kelly and Michelle.

Image result for destinys child gif"

A grandmother recounting her money woes to me.

“I am in $25,000 worth of credit card debt. I am on a fixed income. My granddaughter was supposed to use my credit card for a one-time charge to pay her auto insurance when she got a new car and then I found out she never stopped it and I paid for the whole year! When I asked her for the money back she said she didn’t have it and then told me about all the bills she has.”

A male-exotic dancer told me, “I strip because I don’t make enough at my job to live on that.”

The guy who can’t pay his child support who owns a Range Rover and house is constantly in danger of foreclosure.

A beauty salon owner who confided in me. Her child support payment is $25 a month and the father keeps quitting his job so he don’t have to pay it! At the tender age of 25, she also decided to lease a beauty shop and buy a home. She said, “It’s like paying two mortgages.”

Another friend.

“I would rather struggle today and get my forever home, than buy a starter home and have a smaller home and have to move.”

A cousin.

“I can’t make too much or they will take me off Section 8 housing.”

Just FYI, many safety net programs do not allow you to make too much or have too much in savings or assets. If you have more than $2,000 in checking, you could lose all income assistance benefits and NEVER be able to get back on. Essentially, keeping the poor trapped in a cycle of poverty.

CHANGE THE MONEY GAME

There is a saying. Control your money; control your life. When you know how money works life is easy. When you don’t, life is hard.

I read every book I can get my hands on about finance. I have learned about taxes, insurance, stocks, real estate, and entrepreneurship.

Here are a couple books I have read that changed my money mindset.

Image result for automatic millionaire image"
Image result for SIMPLE PATH TO WEALTH"

Some things I have done to build wealth and start saving over $13,000 a year.

I stopped getting personal loans. It took me years to pay off a $20,000 personal loan. I took that $333 monthly payments and started saving money.

I once had a $448.65 car payment. I paid off the car and started investing that money.

I started studying the stock market.

I cut out buying clothes and all shopping and stared saving over $8,000 a year. I canceled subscriptions. Maybe Jillian Michaels may want to do the same as on her Instagram, cause you know we are all “living for the Gram,” she stated she would like to figure out how “like to get my American Express bill down.” 

I only spend on things I love and I cut spending mercilessly on the things I don’t.

I transferred over $84,000 out of multiple stock funds and placed my bet on one 500 index fund.

I write money milestones.

The goal is to be a 401(k) millionaire.

By investing over 25% of my income into things like the VFINX, VFIAX, or VTSAX, I can make this dream a reality.

Milestone number one was $100,000 in Mr. Market. I hit that marker and kept on climbing.

The money starts accumulating faster like a freaking avalanche once you have that first $100k. The next stop was $200,000.

Then I started making my way to a quarter million.

I estimated that once you hit $250,000, then you can get to millionaire status in 14.5 to 23.5 years with a 6% or above interest rate. And that is without adding another dime.

Once you get to one-quarter of a million, the other three-quarters are not too far behind.

If you could invest $20,000 a year including employer match, you could be a millionaire in 10 years with a 10% return with a principal investment start of $250,000.

That first $100,000 is your capital to a better future. It plants the seed money from which the rest of the harvest will grow.

DROPPING DIMES LIKE SCROOGE MCDUCK AND OTHER MONEY HINTS

Image result for ducktales intro gif"

Dropping dimes used to mean putting a dime in a payphone to connect with someone.

Now it is used more figuratively than literally as in giving some knowledge in this case.

The reason I invest most of my money in index funds is this piece of advice from Warren Buffet.  

He instructed the trustee in charge of his estate to invest 90 percent of his money into the S&P 500 for his wife after he dies.

Warren Buffet is worth $81 billion. Most of his wealth came after the age of 50. Buffet gained 99% of his wealth after 50. That 1% of his wealth took 50 years to build, the other $80 billion too like 25 years or less than half the time it took to get the first billion.

He had to create companies, invest, graduate from Columbia, start businesses, and save the excess for 50 years to create the other 99% of his wealth!

In farming, like 99% of the crop comes from just 2% of the seeds that survive. Every time you invest your money, you are sowing seeds for your future self.

Focus less on buying luxury and focus more on buying assets to pay for luxury. I even get inspired by fictional cartoon characters like Scrooge McDuck and his number one dime story.

In a book I read, they state three of their truths about money. She stated, “the Scarcity Mind- set taught me the three lessons that would eventually turn me into a millionaire:

Money is the most important thing in the world.
Money is worth sacrificing for.
Money is even worth bleeding for.

Well, until next time party people. I’m out.

Image result for tinkerbell wand gif"
College, Film Reviews

Money and Life Lessons I Learned from Disney’s film National Treasure

Gallery 1 Comment

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.