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Why You Should Always Trust But Verify

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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.

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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.

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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.

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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.

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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?

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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.

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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.

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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.

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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

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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.

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Financial Freedom, Financial Independence, Investing

Why Investing Is Like Owning Park Place With A Hotel

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PHOTO: ISTOCKPHOTO

It was a typical day.

The birds were chirping. Car horns are honking. The sun is shining.

Nothing extraordinary.

Then I decide to look at one of my retirement accounts, when lo and behold, I saw $466 in capital gains I earned the end of December last year. This was a surprise because I wasn’t expecting to earn much on the account as I was in the early stages of still building this one up.

Looking at some other accounts, I learned I gained over $25k! Not too shabby.

Let me illustrate how investing can turn you into a millionaire.

A millionaire is built by attracting $1 dollar at a time

If you save $24,000.00 per year your savings may grow to $1,070,380.15 after 17 years. This includes a starting balance of $0.00 and a 10% annual rate of return.

Starting amount$0.00
Years17 years.
Additional contributions$24,000.00 per year
Rate of return10% compounded annually
Total amount you will have contributed$408,000.00
Total interest$662,380.15
Total at end of investment$1,070,380.15

Therefore, if you start with nothing and decide to max out your 401k for 17 years, you are now part of the double comma club! You can see the numbers below.

YearAdditionsInterestBalance
Start$0.00 $0.00
1$24,000.00$2,400.00$26,400.00
2$24,000.00$5,040.00$55,440.00
3$24,000.00$7,944.00$87,384.00
4$24,000.00$11,138.40$122,522.40
5$24,000.00$14,652.24$161,174.64
6$24,000.00$18,517.46$203,692.10
7$24,000.00$22,769.21$250,461.31
8$24,000.00$27,446.13$301,907.44
9$24,000.00$32,590.74$358,498.18
10$24,000.00$38,249.82$420,748.00
11$24,000.00$44,474.80$489,222.80
12$24,000.00$51,322.28$564,545.08
13$24,000.00$58,854.51$647,399.59
14$24,000.00$67,139.96$738,539.55
15$24,000.00$76,253.96$838,793.51
16$24,000.00$86,279.35$949,072.86
17$24,000.00$97,307.29$1,070,380.15

Grow your net worth with Real estate and REIT’s

During the Great Recession, the subprime housing market destroyed property values all over the country.

Since most Americans net worth is tied to their homes, around 50% or more, this caused many people to delay retirement because their homes were now worth less than the mortgage owed on them.

Warren Buffet even said that homes were selling for so cheap in some markets that if he had the time and resources to manage them, he would buy hundreds of thousands of homes to collect the rent on them.

Might I suggest an alternative to active real estate investor, passive real estate investing with REIT’s; a real estate investment trust (“REIT”) is a company that owns, operates or finances income-producing real estate. 

Approximately 87 million Americans invest in REIT stocks through their 401(k) and other investment funds. REITs must pay out at least 90 % of their taxable income to shareholders—and most pay out 100 %. In turn, shareholders pay the income taxes on those dividends.

mREITs (or mortgage REITs) don’t own real estate directly, instead they finance real estate and earn income from the interest on these investments.

The reason I love Park Place so much

I know that everyone wants Boardwalk with a hotel because it makes you the most money in the game, but Park Place is the first stop on the tour.

You have to pass that to get to Boardwalk.

However, there are times when you roll the dice and land on Park Place and then hit a two and land on Boardwalk! Cha ching!

Park Place sets up the psychological warfare that I never could.

You land on my property and have to pay me $1500 for Park Place and $2000 for Boardwalk. That is $3500 bucks!

MONOPOLY BOARDWALK TITLE DEED POSTER - 12" X 18" - REALLY COOL!

You now see the reason why people own real estate. You can make some serious cash collecting rent and it seems to come around on the first of every month over and over and over again.

Once you put in the work to own the property and maintain it, it starts to spit off cash flow and feeds you.

If you look on the Monopoly Park Place deed, you will notice in the beginning you only collect $35 in rent with no houses or hotels. As you start owning more properties, you start collecting more in rent.

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If you cannot stomach the thought of waking up at 3 am to a phone cal about a clogged sink or toilet, then you can hire a property manager or just stay passive and invest in REITs instead.

Why you should invest

It’s simple. You should invest because it can make you rich.

Consistent investing has proven to turn people into millionaires over time. You could do the following:

  • Collect teeny tiny amounts of interest from your checking account with your local bank
  • Put your money under a mattress where it earns $0
  • Invest in Mr. Market and let compound interest do its thing

No pressure.

Think of me as your fiscal Yoda.

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Here to guide, I am.

Much to learn about investing, you have.

May the fiscal force be with you.

Investing, Saving

Running With The Bull Market

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Bull, Buffalo, Animal, Mammal, Horns

Everyday is a bank account, and time is our currency. No one is rich, no one is poor, we’ve got 24 hours each. -Christopher Rice

It feels like it was just yesterday when the Great Recession hit. The stock market was crashing more than a 10-year-old computer’s hard drive. Folks were in a panic. I even overheard someone saying to a friend that she lost 50 percent of their portfolio! Yikes! I was aghast. In the illustrious words of Velma from Scooby Doo, “Jinkies!”

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In speaking with a financial aid officer, they stated while working at a university in DC that parents and students were flooding his office stating they had just lost their job and it was one after the other. It was a revolving door of people just coming to his door and saying they had been give the pink slip. Layoffs were everywhere you turned.

During 2008-2009, you could not turn on the news without hearing that unemployment levels were on the rise the likes of which they had never seen. Food banks, free pantries, churches, and non-profits were flooded with requests for help. The need was so great that some soup kitchens and church pantries were running of of food within days.

After the dust settled, things started to look up. We had hit rock bottom. Now it was time for things to go back up. The bear market went into hibernation and the bull market came out in full force. The market was seeing the red cape and came barreling after it. Stock prices were on the rise. No one could have foresaw what was on the horizon, but for those with cash it was a golden opportunity to invest.

Some experts seem as if they have a crystal ball. People like Warren Buffet, the world’s greatest investor, sits on tons of cash. As of this writing, Buffet’s Berkshire Hathaway is sitting on a record $100 billion in cash, as he feels stocks are just too high to buy. Buffet’s partner, Charlie Munger, believes in being patient and getting a bargain price on stocks. How could he possibly know this will happen? According to Munger, if you are patient, you will see that 2-3 times every 90 to 100 years the market crashes and if you are prepared, you can capitalize on that.

According to Investopdia contributor James Chen:

“The longest-running bull market in history celebrated its 10-year anniversary on Sat., March 9, 2019. It all started from the post-crisis low of March 9, 2009. The S&P 500’s (SPX) closing price on that fateful day in early 2009 was precisely 676.53. As of the market close on Wed., Oct. 9, 2019, the S&P 500 settled at 2,919.40. That represents around a 330% rise in a 10-year period. Not bad for a large-cap stock index.”

If you read my post Stock Splits and Misfits, then you know how right Mr. Munger is indeed. I have actually purchased B class shares (NYSE:BRK.B) of Berkshire. I decided to buy some shares to celebrate my birthday years back. After the stock split, not only did the price drop, but I also owned more shares. I went from owning 5 shares to 35 overnight! No matter what the market cycle, I invest. I do so for the long term. I am not a fair-weather investor. And neither should you be.

Everything I have ever witnessed anyone ever have came for years of dedication, sacrifice, and hard work. If you want to know something about anything, then merely pick a book on the subject. Want a woman’s perspective on life in the 1800’s, then read Jane Austen’s Sense and Sensibility. If you want to be more knowledgeable about the world around you, might I suggest the reading list I published in my post Money Advice From Gossip Girl. But if you want to know more about investing, I say read the Berkshire Hathaway letter to shareholders that is published annually on their website.

Whatever it is, if you want something, then go after it with zeal. If you want something, make a plan and then put action behind your words. I knew that I wanted $100,000 in the stock market. I worked toward investing a minimum of 15 percent into my stock portfolio. Those things took time to do. At one point, I decided to move $26,000 from other index funds into just one: Vanguard’s 500 index fund. I wanted to have $100,000 working for me in just one fund as opposed to several different ones. Once I did that, then it was time to make sure my asset allocation was spread in different sectors that way if one sector tanked, the others ones would keep me afloat. So far, so good.

Fictional characters Cartoons and Money, Investing

Stock Splits And Misfits

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Once you start getting interested in finances, it is inevitable that you will eventually start researching individual stocks.

All the financial pundits and mathematical experts will tell you not to invest in individual stocks. I get it. It’s the age old active versus passive investing argument.

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If you buy one stock and it goes under, you have lost all your money in that stock.

However, if you buy a passively managed index fund, then if one company fails, it is replaced by another and your money is still out there working for you.

Although most of my stock portfolio is invested in index funds like the VFINX, I too own single stocks.

It’s the thrill of the chase that gets be going after these companies. I love researching companies. Some of these businesses have more drama behind the scenes and among the management than Gossip Girl!

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See my post Money Advice From Gossip Girl

So sit back and relax while I bring you some stock gossip. You can stop flipping through that latest Cosmo or Barron’s article for just one second, put down that New York Times crossword puzzle, pause that rerun of Billions, book mark your spot in The Wall Street Journal, while Greenbacks Magnet presents to you Stock Splits and Misfits.

Cause you know, everyone just loves juicy gossip. XOXO 💋

WHAT HAPPENS WHEN YOU DECIDE TO GO ROGUE

Just between you and me, I am especially fond of these two stock holdings. I will let you in on which two stocks I enjoy individually owning: Apple and Berkshire Hathaway. The year was 2013. I wanted to have a little fun and invest some money. Therefore, I decided to buy shares of Apple and Berkshire.

For those who may not know, Berkshire Hathaway is the most expensive stock in the world priced at 321,600 as of 01:56 EDT PM 07/02/2019. For some added perspective on this stock, in 2011 it was priced for the low, low cost of $115,750; therefore, this one stock has almost tripled in price. That is incredible!

Berkshire Hathaway (NYSE:BRK.A) is the holding company of famed investor, Warren Buffett. Notable companies under the Berkshire umbrella include Geico Auto Insurance, Helzberg Diamonds and The Pampered Chef. Buffett, long a critic of short-term trading, has kept the A shares at a high valuation in order to decrease the volatility that comes from short-term trading.

Unless you have over $300,000 lying around in your personal bank vault, then you will have to stick with buying the B shares of this stock.

In January 2010, Berkshire’s B shares (NYSE:BRK.B) underwent a 50 to 1 stock split, bringing its price down from around $3,476 to about $69.50 per share. That is a huge discount! To get a piece of the Buffet pie, I will gladly pay this price. Unfortunately, I bought when prices were higher; I paid about $75-$100 bucks a share. However, I still came out ahead as now the stock is going for $213 a share. Not bad. That’s a pretty good haul for just pressing the buy button.

See my post Precious Stones Of Wisdom: Life Lessons From Indiana Jones And The Temple Of Doom

WHAT IS A STOCK SPLIT

A stock split or stock divide increases the number of shares in a company. A stock split is an issue of new shares in a company to existing shareholders in proportion to their current holdings. The price is adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur.

IS A STOCK SPLIT GOOD OR BAD

According to Nerdwallet, when you had to split something as a kid, that generally didn’t feel like a perk. But when you’re an investor, splitting can be a good thing. Stock splits are a way a company’s board of directors can increase the number of shares outstanding while lowering the share price.

WHY WOULD A COMPANY SPLIT ITS STOCK

A stock split is used primarily by companies that have seen their share prices increase substantially and although the number of outstanding shares increases and price per share decreases, the market capitalization (and the value of the company) does not change. Simply put, just like the value of the $100 bill does not change if it is exchanged for two $50s.

However, not all stocks are created equal. That is why I do my homework first before buying ANY STOCK. There are some misfits out there that you do not want to buy. Basically, you get what you pay for. It kind of reminds me of The Misfits from the Jem and the Holograms cartoons.

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If you read my Meet Miriam page, then you know it’s one of my favorite cartoons.

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And because July fourth is around the corner, here is a shout out from The Misfits themselves!!!

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SPLITTING THE APPLE

And last but most certainly not least, I give you Apple! I purchased stock in Apple (APPL) in 2013, when it was going for around $60 a share. Fast forward to 2019, and the stock is over $200 a share! I got in just in time.

It just so happens that the year after I purchased 5 shares for my birthday, in 2014, Apple split the stock. It all went down on 06/09/2014 as Apple did a 7 for 1 split.

My 5 shares turned into 35 shares overnight!

All this happened simply because I did some homework and took action. Calculated risks can pay off. Remember that fortune favors the bold. In the illustrious words of Jem, “outrageous!”

Film Reviews, Financial Independence, Investing, Saving, Wealth

Precious Stones of Wisdom: Life Lessons from Indiana Jones and the Temple of Doom

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Train yourself to let go of the things you fear to lose. – George Lucas

If you have ever seen any of the Indiana Jones films, then you know they are all full of action and adventure.

However, my absolute favorite in the film franchise is Indiana Jones and the Temple of Doom.

There had some jaw dropping moments throughout the entire film.

They take you on the joyride of a lifetime in 120 minutes!

You get to see Indiana Jones (Harrison Ford) at one of his most defining moments in his career. As well as, watch him put the well-being of people ahead of money and things.

The series was created from the mind of Star Wars creator George Lucas and directed by Steven Spielberg.  

Now let’s go back to 1984! No legwarmers required! 😂

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RULE #1: LISTEN

The film was released on May 8, 1984. Adventure sequel extraordinaire. The film went on to gross $333.1 million dollars at the box office.

My favorite number is 3. That is one of the 3 reasons I chose to start saving $13,333 a year.

See my post

Halle Berry on Success and Failure: Why She and I Continue To Save So Much

Here is the synopsis of the film.

Intrepid archaeologist Indiana Jones, on the trail of fortune and glory in Old Shanghai, is ricocheted into a dangerous adventure in India. With his faithful companion Short Round (Jonathan Ke Quan) and nightclub singer Willie Scott (Kate Capshaw), Indie goes in search of the magical Sankara stone, and uncovers an ancient evil which threatens all who come into contact with it.

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The second of the George Lucas/Steven Spielberg Indiana Jones epics is set a year or so before the events in Raiders of the Lost Ark (1984). After a brief brouhaha involving a precious vial and a wild ride down a raging Himalyan river, Indy (Harrison Ford) gets down to the problem at hand: retrieving a precious gem and several kidnapped young boys on behalf of a remote East Indian village.

His companions this time around include a dimbulbed, easily frightened nightclub chanteuse, and a feisty 12-year-old kid named Short Round. Throughout, the plot takes second place to the thrills, which include a harrowing rollercoaster ride in an abandoned mineshaft and Indy’s rescue of the heroine from a ritual sacrifice.

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In the beginning of the film, Indiana instructs his companion to stay out of the light and follow his steps exactly behind him.

Of course, the man gets greedy and this ends in a Mortal Kombat style fatality.

Here is Indiana Jones the Atari game.

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Indiana Jones and the Temple of Doom Atari  screenshot photo

And here is Mortal Kombat.

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If you truly want to be successful, you must learn to listen to those that are more knowledgeable than you are.

That is why I listen to and read the shareholder letters of Warren Buffet.

He says stay away from debt and ALWAYS have cash reserves.

This simplistic and basic money advice is why his company Berkshire Hathaway has the most expensive stock on the NYSE at over $300,000!

According to The Motely Fool, one takeaway from the annual shareholder letter (which are excellent reading sources for learning about investing and life) is the following: At the end of 2018, Berkshire Hathaway had nearly $112 billion of cash and equivalents on its balance sheet, officially consisting of $30.4 billion in cash and $81.5 billion in short-term Treasuries.

You must have cash if you are to build wealth.

See my post Forget Simon, Do What Buffet Says

RULE #2: FOCUS ON WHAT IS MOST IMPORTANT

There is a scene in the film where our hero is poisoned. But, there is a cure.

The anecdote is rolling around on the floor and so are millions of dollars in diamonds in a small jewelry bag.

Willie comes across the anecdote while trying to find the diamonds. Instead of casually dismissing it as many might have, she picks it up and puts it in a safe place. This ultimately saves Indiana’s life.

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There are times in your life when you will have to choose: right or left.

I prefer to choose the path of least resistance but also the one that will help the most people.

Remember: The needs of the many outweigh the needs of the few.

In The Wrath of Khan (1982), Spock says, “Logic clearly dictates that the needs of the many outweigh the needs of the few.” Captain Kirk answers, “Or the one.” This sets up a pivotal scene near the end of the film.

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Speaking of Star Trek, I read William Shatner’s book Live Long and… which was pretty good.

He says to spend the money on the living. No expensive funerals or caskets. Pay for what you want in cash and if you don’t have the money, then you can’t afford it.

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RULE #3: WHEN IN DOUBT, RUN

Indiana comes across another archaeologist that steals his stone he just risked his life to get!

Instead of trying to fight for it, he lets the man take it. While the man is distracted with his patting himself on the back and his own vanity, Indiana makes a run for it! And keeps his life long enough to fight another day.

The same rules apply when buying stocks or spending money.

If the risk is too high for you, then sell. You will sleep better at night. Forget trying to get you money back. That is like gambling in Vegas.

Or if you just so happen to come across someone in a nice suit and briefcase that promises to double your money, pass.

There is no such thing as guarantees. All risk involves possible losses. That is why you do your homework and take calculated risks.

If it sounds too good to be true, RUN!!!

In the book called Winning the Money Game: Lessons Learned from the Financial Fouls of Pro Athletes by Adonal Foyle. He was an NBA player who describes the things he says while playing in the league in regards to how other athletes dealt with financial management or lack thereof.

He that said you should learn the basics of money and that you should rule your money or money will rule you. He saw many people lose homes, cars, wives, and careers.

In addition, he said you should audit anyone who comes into contact with your money. That includes family. Even your MOM!!! Shocking right???

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See my post More Money More Problems

RULE #4: FOOD IS FUEL, BUT NOT ENTERTAINMENT

One of the absolute best scenes in the film is the dinner scene.

I will not give too much away, but let’s just say the room is full of snakes! LITERALLY!

They say health equals wealth.

Let’s say you are investing for the long-term (as you should be!). Then in order to realize those gains, you must live long enough to see them.

That requires you to eat your three square meals, lots of fruits, nuts, berries, leafy greens and veggies. In addition, drink mostly water and tea.

This will alleviate 90% of ailments that are associated with poor diet.

Food is not for taste; it is for nutrition.   

And please, no smoking.

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Can’t stand exercise? Find a fun or simple activity such as bowling, walking, or dancing. Done.

See my post Health Really Does Equal Wealth

RULE #5: THE KIDS ARE OUR FUTURE

Indy sees that children need his help. He does not turn his back on them. He helps them.

They are more precious than any stone.

People were always more important to him than things or money.

See my post Generosity Can Go A Long Way

You want to help someone in need?

Read to the elderly.

Start a book club.

Volunteer to be a troop leader like Phyllis Nefler in Troop Beverly Hills.

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Donate to college scholarship funds.

The point is to get involved.  

You are powerful. More powerful than you know.

One person can change and lift all tides.

Case in point, the late Senator John McCain voted against the repeal of the Affordable Care Act. That vote saved MILLIONS from losing healthcare coverage! One man. One voice. One vote.

I’m just saying.

Celebrities and Money, Entrepreneurship, Film Reviews, Financial Freedom, Financial Independence, Self-Made Millionaires, Wealth

Money and Chocolate: Life Lessons from the film The Witches

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The most sophisticated people I know – inside they are all children. – Jim Henson

If you ever saw the film Willy Wonka and the Chocolate Factory, then you know how much people love chocolate. And it can be a goldmine business or chocolate mine depending on how you look at it. 😉 People were losing their minds to get that golden ticket.

Chocolate Mania had swept the nation! 😂

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It was pure marketing genius. They even commented on that in the film. Wonka was making a mint selling those chocolate bars. It’s all about marketing folks!

It’s sort of like Patron. They don’t have the best tequila; they just have the best marketing. Get that money.

Just look at all the money the candy business makes! Billions!

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Here are some of the top chocolate companies in the world.

1. Mars Inc., McLean, VA., USA.

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2. Mondeléz International Inc., Deerfield, Ill.

Largest Chocolate Manufacturers

3. Nestlé SA, Vevey, Switzerland.

Largest Chocolate Manufacturers

4. Ferrero Group, Alba, Italy.

Largest Chocolate Manufacturers

5. Hershey Foods Corp., Hershey, Pa., USA.

Largest Chocolate Manufacturers 2019

6. Meiji Co. Ltd., Tokyo, Japan.

Largest Chocolate Manufacturers

7. Chocoladenfabriken Lindt & Sprüngli AG, Kilchberg, Switzerland.

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The confectionery business is big money. These companies are raking in billions of dollars.

Did you know Snickers earns more than $2 billion by itself annually?

The Маrѕ fаmіlіеѕ аrе thе оwnеrs оf thіѕ соmраnу thаt ореrаtеѕ wоrldwіdе. Тhеу hаvе wіdе vаrіеtіеѕ оf brаndѕ іnсludіng Gаlаху, Воuntу, М&М, Тwіх, Міlkу Wау, аnd Ѕnісkеrѕ. Globally they are making bank!

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They may have even helped spread the let’s have candy at every event or holiday cheer. If not, I am sure they somehow found a way to cultivate and capitalize on Halloween and even Christmas.

Who says you need a box of chocolate on Valentines?!!! Most people don’t even eat most of it. That box of chocolates is still bought and paid for!

If you ever saw the film Legally Blond, you actually saw her do what most do with a box of variously filled chocolates. That’s right. She took a bite and put it BACK in the box!

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Reese Witherspoon in Legally Blond

Mondelez International Inc. even tried to cash in on this love of chocolate. However, they have officially abandoned its pursuit of Hershey Co., which would have created the biggest confectionery conglomerate in the world.

Now that you have some background on the business of chocolate, let’s get down to money affairs.

Back in 1990, the movie, The Witches, based on the 1983 children’s novel of the same title by Roald Dahl, was released in theaters. The movie premiered on 25 May 1990, in London and was scheduled to open the same day in the United States, but was delayed until August.

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Sadly, it would be Muppet and Fraggle Rock creator, Jim Henson’s last film.

As in the original novel, the story features evil witches who masquerade as ordinary women and hurt children. However, a boy and his grandmother need to find a way to foil and destroy them.

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The witches decide they will open up, get this, chocolate shops to lure poor unsuspecting children.

This is where the story begins.

GUARDIANS OF THE MILKY WAY GALAXY

While on vacation in Norway, eight-year-old American boy Luke Eveshim is warned about the witches, female demons with a boundless hatred for children and various methods of destroying or transforming them.

Helga, Luke’s Grandmother, becomes his legal guardian after the passing of his parents. They move to England. His grandmother is advised to take a vacation for a summer by the sea for fresh air after discovering she has diabetes.

Also staying at the hotel are a convention of witches, masquerading as the Royal Society for the Prevention of Cruelty to Children, with the Grand High Witch, the all-powerful leader of the world’s witches, attending their annual meeting under the name Eva Ernst (played by Academy Award Winner Angelica Houston).

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Really? They have some nerve naming their coven the Prevention of Cruelty to children. Hiding in plain sight like that, but open to interpretation. Yes, indeed.

Let us examine the fact that Luke had a grandmother that not only decided to raise him, but has the financial means to take a vacation by the sea.

I have it on good authority that if you try to rent a house on Virginia Beach for a week it can set you back $5,000!

I wouldn’t mind paying that if I had investments like interest earned from stocks or royalties to pay for it.

If you have $25,000, you could earn over 2 percent in a high yield savings account. That’s the ish I’m talking about right there. Making money for breathing. That is the equivalent of doing a part-time gig and earning $500 a year.

I find the idea of earning money just for having a pulse so sexy.  I find that It’s like Beyoncé says in her song Rocket. Shhh. Just listen.  To the words. Hell yeah, you the sh*t That’s why you’re my equivalent So sexy! Haha

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See my posts

How Beyonce and Jay-Z became a $1 billion couple

Earn Money with High Yield Savings Accounts

FOR THE LOVE OF CHOCOLATE

The witches are going to open up chocolate shops!

Inside a ballroom where the witches hold their meeting, Luke spies upon them as the Grand High Witch unveils her latest creation: a magic potion to turn children into mice, which they will use on confectionery products in sweet shops and candy stores to be opened using money provided by her.

They know how to make their vision a reality.

You have to chart a course and follow that path to where you want to go. What path? You just point to the top and go! That’s what I learned from Dwayne “The Rock” Johnson 😉

I have also learned that when you own something to hold onto it.

It doesn’t matter of it is a taco stand, food truck, or blog. If you own 100%, then it’s yours to do with as you wish. Hold on to as much equity and ownership in your company as possible. I learned that from Shark Tank’s Daymond John. Like McDonald’s does to its hamburgers, keep grinding.

And try to be cash heavy. Meaning stay away from debt. I learned that from Warren Buffet. 😉 They say his company Berkshire Hathaway aims to keep $1 billion or more in cash to snap up businesses and be able to make quick decisions when buying stocks.

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In addition, they say Apple does the same. The world’s first EVER $1 trillion-dollar company keeps billions in cash.  

Therefore, you should do the same and follow in their example. ALWAYS have cash reserves. NO EXCUSES!!!

Like Mr. Money Mustache once said, “Salads and barbells every day, no goddamned excuses!!!”

WE ALL WANT TO BE ROYALS

And I don’t mean Prince William and Kate Middleton.

I mean getting royalty checks in the mail.

I saw an article in which Don McLean owns only 2 stocks: Google and Amazon.

I also recently read that Don McLean continues to receive royalties off his music he wrote almost 50 years ago. Yes, this artist still makes $300,000 per year from something he created in 1971.

In the article by Sovereign Man, it retells McLean’s story.

Early spring in 1971 when an obscure American folk singer wrote a song that would change his life forever.

Sitting at a café in Saratoga Springs, New York, Don McLean scribbled the lyrics to a long ballad about an experience he had as a 13-year-old boy.

It began with a radio bulletin that said that Buddy Holly had died in a plane crash. In 1959, when this happened they called it the day the music died. The boy was crushed. But the man used this emotion to write a song that would take the world by storm.

Of course, that song was “American Pie.”

It stayed atop the Billboard music charts for more than a year. And it turned this once obscure folk singer into a global sensation.

Ah yes, the power of the pen.

More than that – McLean was immediately set for life: he still makes more than $300,000 a year from that song.

Imagine getting paid hundreds of thousands of dollars a year for something you did in 1971!

That is what stocks can do for you! That is why we must invest. Unless you can write the next hit song for Beyoncé, you must invest in the stock market to make money on your money. You already earned it and now your money works for you and this is your equivalent to getting royalties.

This story holds the key to one of the greatest business models ever invented: the idea that you can create something once and get paid on it for life.

“The idea is not to live forever, it is to create something that will.” – Andy Warhol

For more information on the price of genius and Andy Warhol, see my post The Man Behind the Mohawk: An Interview with Budgets are Sexy.

It’s the royalty business. That’s right. I did the work like 20 years ago. Now cut the check!

In case you’re not familiar with the term, a royalty is a cash payment that you receive over and over again from an asset that you created, developed, or own.

For example, songwriters collect a royalty every time a song they write is played, purchased, downloaded or streamed. Some more than others.

That is why Taylor Swift was mad at Apple iTunes for giving away artists music, such as herself, for free for three months!

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That’s why McLean still makes money from American Pie. You have to pay to play. Music that is. In this case anyway.

Royalties are also common in natural resources. Royalty companies often provide financing to oil and mining companies… and those borrowers pay a royalty on every ounce of gold or gallon of oil that the land produces.

Authors earn a royalty every time somebody buys their book. Inventors receive royalties from their patents. Why do you think Beyoncé trademarked Blue Ivy, Taylor Swift trademarked Swiftmas, and Cardi B is trying to trademark OKrrrrrrr?!!!

Patents equals paychecks.  

And people who own royalties don’t have to do anything else to make money… except cash the checks.

The powerful cashflow of this model can be incredibly appealing to investors, and there are even some companies that specialize in acquiring assets that produce royalty income.

Therefore, if you are good at something, don’t give it away for free.

Even though I am a HUGE Marvel comics fan, I actually got the last comment mentioned above from DC Comics The Joker. 😉

It’s still true though. You have to admit.

If I could, I would tap dance on Twitter, if they paid me.

Me and my lipstick confessions charge a premium for the really good stuff.

I would hand draw or smack lipstick stickers 💋on Kylie Jenner’s lip kits if she paid me $400.

Joan Rivers wrote jokes for days. She once said jokingly, that she would, “write for Hitler for $500.”

See my post on Money gems from Joan Rivers

Whatever you do that is great, DON’T DO IT FOR FREE.

That’s just my 2 cents. And I take cash, check, or charge.

I’m like the girl scouts. Out there selling those cookies. You don’t see them giving it away for FREE.

I’m just saying. Have a plan for your life and your money, then make it happen.

Don’t let anyone tell you what you can’t accomplish or do. No matter how small you are. Even if you are just a kid.

The Witches always remind of that.

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