Always pay your taxes. – Felix Dennis, British publishing entrepreneur
Former British publishing magnate, Felix Dennis, states the above-mentioned quote.
At the time of his death, he was estimated to be worth over $100 million dollars. He wrote these words in his 2006 book How to get rich. He said there is no getting around paying taxes and that if you try it is likely to lead to severe economic problems and consequences.
That being said, let us jump right in to the topic at hand. It was recently reported that R&B singer, Montell Jordan, famous for the 1995 hit “This Is How We Do It,” owed the IRS $1.7 million in back taxes.
Surprising because the song ruled the airwaves and was No 1 on the Billboard charts. Fast forward to some years later and we find out that an $11,000 tax debt that went unpaid ballooned to almost $2 million dollars. WTF!!!
Please understand my surprise and literal shock upon hearing this as this song is still played in film and on television today. He should be raking in millions in royalties from this song alone. However, it is not the case.
He sadly had to sell his publishing rights to pay his tax debt. He immediately signed the $600,000 check over the the IRS and had to file for bankruptcy. Apparently, an accountant did not pay his $11k in taxes due one year and he was being charged 11% per day by the IRS until it hit $1.7 million.
On a personal note, I make sure to review all my tax documents, file them myself, and make sure to pay every penny owed to the feds. I do not ever put my fate in someone else’s hands.
This is not how we financially do it!
I cannot stress this enough. You are in charge of your money. Period. Do not ever let anything pass by you that you do not read when it comes to your finances.
Since candidates are coming out of the woodwork for the 2020
presidential election, let’s talk about the elephant in the room: Healthcare.
Regardless, of your political beliefs, most will agree that
a fully funded functioning health care system is a must. You need hospitals
that have basic medical supplies and more advanced equipment for surgical
procedures.
Those things don’t come cheap.
However, other advanced nations have been able to make this
happen.
The elusive Universal Health Care (UHC) that we Americans
have been unable to have due to numerous factors. Primarily, for one reason:
money.
Taxes are a huge component of making UHC a reality. That is
how other nations are paying for it with varying degrees of success.
However, we cannot doubt Universal Healthcare’s popularity.
For example, it was recently reported that a Canadian family
visiting America did not stop at any hospitals after they confirmed that their
patriarch had died of a heart attack while on vacation.
Instead they drove for an ENTIRE DAY, with a corpse in the
back seat to avoid paying the exorbitant healthcare costs here on American soil
and the cost of shipping the body to Canada.
This is a TRUE story. I can’t make this stuff up.
Remember that article in the New York Times about The Velvet Rope Economy? The Doctor Is In. Co-Pay? $40,000.
Chris B. Murray for the New York Times The Velvet Economy article
That is the type of story that would scare anyone from going to the doctor in America.
So let’s talk about healthcare.
WHAT IS UNIVERSAL HEALTHCARE?
Universal healthcare means there is a health care system
that provides coverage to at least 90% of citizens, typically paid for by the
citizens of the country via taxes.
Here in the US, thanks to the Supreme Court’s decision to uphold the ACA (aka Obamacare), signed by former President Obama, the US has universal health care starting in 2014 using an insurance mandate system. But will it last?
Prior to 2014, the US no universal healthcare anything other than Medicare, but that is for the elderly.
However, most of the other developed nations do not make
having a mandate necessary.
This is why the great healthcare debate rages on in the
current White House. The Us is offering subsidies for healthcare and the
current administration is not feeling it. But in other countries, no subsidy is
necessary or rarely required, if healthcare is being funded by tax payer’s
dollars. And we mean paying a lot of taxes.
We will get into that later.
WHAT COUNTRIES HAVE UNIVERSAL HEALTHCARE?
Have you ever wondered what counties offer the coveted
universal healthcare, but you never took the time to look it up?
Well, now you can find it right here.
That’s right. I did the work for you.
There are thirty-three developed nations. Thirty-two of the
thirty-three developed nations have universal health care, with the United States
being the lone exception. That is until the Affordable Care Act came along.
Americans can regularly be heard talking about UHC. Why do
other developed nations have it and we don’t? What is good for the goose should
be good for the gander mentality.
Well, you are about to find out.
The following list, compiled from World Health Organization
(WHO) sources where possible, shows the start date and type of system used to
implement universal health care in each developed country. Note that universal
health care does not imply government-only health care, as many countries
implementing a universal health care plan continue to have both public and
private insurance and medical providers.
Country Start Date System Type
Click here for more source material on each country’s health care system.
Norway 1912 Single Payer
New Zealand 1938 Two Tier
Japan 1938 Single Payer
Germany 1941 Insurance Mandate
Belgium 1945 Insurance Mandate
United Kingdom 1948 Single Payer
Kuwait 1950 Single Payer
Sweden 1955 Single Payer
Bahrain 1957 Single Payer
Brunei 1958 Single Payer
Canada 1966 Single Payer
Netherlands 1966 Two-Tier
Austria 1967 Insurance Mandate
United Arab Emirates 1971 Single Payer
Finland 1972 Single Payer
Slovenia 1972 Single Payer
Denmark 1973 Two-Tier
Luxembourg 1973 Insurance Mandate
France 1974 Two-Tier
Australia 1975 Two Tier
Ireland 1977 Two-Tier
Italy 1978 Single Payer
Portugal 1979 Single Payer
Cyprus 1980 Single Payer
Greece 1983 Insurance Mandate
Spain 1986 Single Payer
South Korea 1988 Insurance Mandate
Iceland 1990 Single Payer
Hong Kong 1993 Two-Tier
Singapore 1993 Two-Tier
Switzerland 1994 Insurance Mandate
Israel 1995 Two-Tier
United States 2014? Insurance Mandate
Please be advised that the dates given are estimates. Universal care rolled out gradually in many countries. For instance, in Germany government insurance programs began in 1883, but did not reach universality until 1941.
WHAT TYPES OF HEALTHCARE SYSTEMS ARE THERE?
You may have never heard of some of the above types of
healthcare systems. That is why the definitions are being provided here.
Single Payer: The
government provides insurance for all residents (or citizens) and pays all
health care expenses except for co-pays and coinsurance. Providers may be
public, private, or a combination of both.
Two-Tier: The
government provides or mandates catastrophic or minimum insurance coverage for
all residents (or citizens), while allowing the purchase of additional
voluntary insurance or fee-for service care when desired. In Singapore all
residents receive a catastrophic policy from the government coupled with a
health savings account that they use to pay for routine care. In other
countries like Ireland and Israel, the government provides a core policy which
the majority of the population supplement with private insurance.
Insurance Mandate: The government mandates that all citizens purchase insurance, whether from private, public, or non-profit insurers. In some cases the insurer list is quite restrictive, while in others a healthy private market for insurance is simply regulated and standardized by the government. In this kind of system insurers are barred from rejecting sick individuals, and individuals are required to purchase insurance, in order to prevent typical health care market failures from arising.
What is free universal healthcare?
Universal health care is a system that provides quality medical services to all citizens. The federal government offers it to everyone regardless of their ability to pay.
Which country has free medical care?
According to Forbes, The two advanced economies with the most economically free health care systems—Switzerland and Singapore—have achieved universal health insurance while spending a fraction of what the U.S. spends. Switzerland’s public spending on health care is about half of America’s, and Singapore’s is about a fifth of ours.
HOW ARE COUNTRIES ABLE TO AFFORD IT?
Now let’s talk about them taxes.
Let’s start with Canada. The Canadian Institute for Health Information (CIHI) believes Canada spent approximately $228 billion on health care in 2016. That’s 11.1 per cent of Canada’s entire GDP and $6,299 for every Canadian resident. That per capita rate would put Canada near the high end of what other advanced economies pay.
Is health care free in Canada?
To review, per The Atlantic, Canadian healthcare basically works like Medicare, but for everyone. Medical care is free, and it covers almost everything other than prescription drugs, glasses, home care or long-term care and dental care. (Most people have supplementary insurance such as private insurance from their employers or the government to cover those things).
Does Canada have good healthcare?
Coverage and access. In both Canada and the United States, access can be a problem. Studies suggest that 40% of U.S. citizens do not have adequate health insurance, if any at all. … Yet, even if some cannot find a family doctor, every Canadian citizen is covered by the national health care system.
How is healthcare funded in Canada?
Basically, healthcare is being funded at both the provincial and federal levels. Financing the system is provided via taxation both from personal and corporate taxes. Additional funds from other financial sources like sales tax and lottery proceeds are also used by some provinces.
Do Canadians really pay more in taxes than Americans?
According to Investopedia, U.S. federal income tax brackets range from 10% to 35% for individuals. On the Canadian side, the range is 15% to 29%. Overall, it’s a bit more expensive to live in Canada than the US, and much cheaper than living in Europe. Taxes are higher, but generally people are paid more to compensate.
However, data from the OECD show that Canadians are lower-taxed than Americans. According to the Huffington Post, in the U.S., the same family would pay 14.2 per cent in taxes, a tax rate some 12 times higher than in Canada.
A brief note on France.
In practice, less than 50% of inhabitants in France pay any income tax at all; only around 14% pay at the rate of 30%, and less than 1% pay at the rate of 45%. According to the French tax authority, taxes range from 14% up to 45% for the wealthiest citizens. Like here in the US, there are citizens that pay no income taxes based on wages or other tax credits or exemptions.
WHY ALL THE UPROAR OVER UNIVERSAL COVERAGE?
First, we know right off the bat that no two countries are
alike. Those that are third world are still trying to get clean water and
internet access; therefore, universal healthcare is a privilege as water is a basic
human need and a right. You know which one those countries are focused on.
However, the United States is by far the RICHEST country in the world.
Even with the deficit being 18 percent greater than last year, as the US is spending $4.4 trillion and has a revenue of only $3.4 trillion, which is a $1 trillion-dollar annual shortfall. We are still the RICHEST.
That is still the case even with the US debt being $22 trillion, and America owing the Chinese $1 trillion of that huge number. We are still the RICHEST.
However, roughly 15% of the US population are uninsured or
lacking in health insurance coverage in some form.
Therefore, from people looking from the outside in, they are
scratching their heads as to why we cannot offer universal healthcare to its
citizens.
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.
Basically, he is looking to have more assets than a fat paycheck. He knows money can slip through your fingers. Assets do not easily slip away.
The bigger the paycheck means the higher the taxes you pay Uncle Sam. In contrast, assets usually go up in value and earn interest over time. Capital gains tax is lower than income taxes.
So, if you want to bet the farm, then put it all on staying in the black and not the red.
CASINOS ARE NOT WHERE THE WEALTHY ARE
I know you see all the television shows and advertisements telling you to go to Vegas. However, that is just a way to get you there to spend money. Most wealthy folks are not rolling the dice with their finances.
I have read enough blogs and books to know that you must hang around like-minded people.
Motivational speaker Jim Rohn said, “You’re the average of the five people spend the most time with.” And so is your net worth.
We are influenced by those we associate with. These relationships over time can have a profound effect on our lives.
Therefore, you must choose wisely when it comes to friends, business partners, and spouses.
The wealthy are about building assets. Therefore, you are not likely to see them at the casino at four o’clock on a Monday afternoon. They are out volunteering, networking, and closing business deals.
HOW DO CASINOS MAKE MONEY
A Canadian study stated that 75% of customers provide only 4% of casino revenues. It’s the habitual gambler that keeps the casino in business.
If you ever saw Mark Wahlberg in The Gambler, then you know who I’m talking about.
Computer gaming and slot machines are all the rage when it comes to gambling.
Most players lose more than they win. I don’t like those odds. Therefore, I do not gamble.
That means people with gambling addictions are the most vulnerable. Or you can become addicted after getting a taste of winning like in the film 21.
Slot machines are, like credit, addictive. Casinos actually can make you poorer. This exacerbates inequality.
CASINOS WILL HELP THE ECONOMY RIGHT?
Not so fast. Let’s take a look at Atlantic City.
Back in 1977, casino advocates made promises that casinos would help give the economy a boost by providing jobs. Don’t get me wrong, they did provide jobs. However, the surrounding local business owners did not get the foot traffic coming into the casinos.
The money that casinos make, stays with them.
Many local businesses had to close up shop. The retail economy collapsed all around Atlantic Avenue in New Jersey. Several casinos have actually shut down since 2014. That means jobs were lost not gained.
HOW TO BET ON YOURSELF
Devote all your time, money, and resources into yourself.
Use your hard earned money to invest in your education, training, and business.
When I was watching David Tutera plan those weddings on television, I learned he wasn’t doing this for, in the illustrious words of Sia, cheap thrills. He did it for a living. And earned good enough money to have a nice home, wardrobe, and chauffeur.
David started party planning and entertaining over 20 years ago. He just invested his time and money into himself. Eventually, he found what he was good at and then he just stuck with it.
There are countless tales of people out there that have found a skill they are good at, practiced and developed it, then went out and started earning a living at it.
Read up on some biographies. See for yourself. I recommend reading anyone you have an interest in or trailblazers such as Gloria Steinem, Arnold Schwarzenegger, Franklin Roosevelt, Charlie Chaplin, Oprah Winfrey, Winston Churchill, or Nelson Mandela.
WHAT CAN YOU DO NOW?
First, I feel people need to assess their situation. For example, when I was growing up I noticed that a lot of kids were not very into studying and really focused on their academics. However, many wealthy people I saw on television always advocated for education.
I figured, why not listen to other successful people?
I started studying and reading more. Especially, thanks to shows like Reading Rainbow hosted by Star Trek’s Next Generation alum LaVar Burton. I would go to the Book Mobile and get tons of books.
Much of my focus was less on having fun and more on learning. Saturday mornings were spent reading on my parent’s couch. Sunday afternoons were spent reading the comics and learning new things and vocabulary words.
I invested lots of time and money into my education and health.
And all of this paid off in spades.
I have four retirement accounts, a home, a car (no monthly payment), and save and invest upwards of 50% of my income.
It took me over a decade to build those things. But it all started with getting an education.
Sure, college helped, but it was sheer grit, discipline and determination that got me where I am today.
Stay away from vices (narcotics, alcohol, gambling, shopping)
Hang around like-minded people
Save 20% or more of your income
Invest 15% or more of your income
If you can do at least two of the items listed here, you have got a shot at making it into the top 10% of households and becoming financially independent.
